TIDMCDFF
RNS Number : 9904F
Cardiff Property PLC
01 May 2014
THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY
AND ITS SUBSIDIARIES
FOR RELEASE 7.00 AM 1 May 2014
THE CARDIFF PROPERTY PLC
The group, including Campmoss, specialises in property
investment and development in the Thames Valley. The total
portfolio under management, valued in excess of GBP32m, is
primarily located to the west of London, close to Heathrow Airport
and in Surrey and Berkshire.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 MARCH 2014
Highlights:
Six months Six months Year
31 March 31 March 30 September
2014 2013 2013
(Unaudited) (Unaudited) (Audited)
Revenue GBP'000 257 254 493
Net assets per share GBP 13.13 12.43 12.77
Profit before tax GBP'000 635 655 1,319
Earnings per share pence 45.2 47.0 94.2
Interim/total dividend
per share pence 3.40 3.30 12.55
Gearing % Nil Nil Nil
Richard Wollenberg, Chairman, commented:
"Increasing confidence in the UK's economic position and
relative stability in European financial markets has encouraged a
further recovery in the commercial and residential property
market."
For further information:
The Cardiff Property plc Richard Wollenberg 01784 437444
Westhouse Securities Richard Johnson 020 7601 6100
THE CARDIFF PROPERTY PLC
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 MARCH 2014
INTERIM MANAGEMENT REPORT
Increasing confidence in the UK's economic position and relative
stability in European financial markets has encouraged a further
recovery in the commercial and residential property market.
Letting activity in the Thames Valley commercial property market
continues to improve, as evidenced within the group, although
office rental levels are still well below those achieved 10 years
ago.
The availability of second hand office space in central and west
London is gradually being reduced and, in certain locations, new,
speculative office schemes are taking place. Any further
improvement in the level of office take up is likely to have a
positive effect on rental levels and capital values as investors
anticipate future rental growth.
Residential property values have continued to improve and in
Surrey and Berkshire, the main area for the group's operation, the
level of enquiries for both sales and lettings remains very
encouraging.
Dividend
Your directors have declared an interim dividend of 3.4p (2013:
3.3p; September 2013: 12.55p) an increase of 3% which will be paid
on 4 July 2014 to shareholders on the register on 6 June 2014.
Financial
For the half year ending 31 March 2014 profit before tax
amounted to GBP0.64m (March 2013: GBP0.66m; September 2013:
GBP1.32m) which included an after tax profit from Campmoss Property
Company Limited, our 47.62% joint venture of GBP0.47m (March 2013:
GBP0.50m; September 2013: GBP1.07m). The figures for Campmoss
included profit on the sale of development properties as referred
to later in this report.
Revenue, which represents gross rental income, totalled GBP0.26m
(March 2013: GBP0.25m; September 2013: GBP0.49m).
The group's share of revenue of Campmoss amounted to GBP1.30m
(March 2013: GBP1.30m; September 2013: GBP2.16m) representing gross
rental income of GBP0.64m (March 2013: GBP0.88m; September 2013:
GBP1.52m) and property sales of GBP0.66m (March 2013: GBP0.42m;
September 2013: GBP0.64m). The revenue figures for Campmoss are not
included in group revenue.
The profit after tax attributable to shareholders for the 6
month period to 31 March 2014 amounted to GBP0.60m (March 2013:
GBP0.62m; September 2013: GBP1.25m) and earnings per share was
45.2p (March 2013: 47.0p; September 2013: 94.2p).
Net assets of the group as at 31 March 2014 were GBP17.37m
(March 2013: GBP16.44m; September 2013: GBP16.89m). The company's
share of the net assets of Campmoss amounted to GBP7.75m (31 March
2013: GBP6.72m; September 2013: GBP7.29m).
Net assets were equivalent to GBP13.13 per share (March 2013:
GBP12.43; September 2013: GBP12.77). At the half year the company
had nil gearing (March 2013: nil; September 2013: nil) and for
Campmoss 49% (March 2013: 67%; September 2013: 67%).
The directors are of the opinion that in the current market any
change in value of the group's property portfolio as at 31 March
2014 would not be material.
The company did not purchase any of its own shares during the
period (March 2013: nil; September 2013: nil) and, other than as
mentioned in this report, there have been no material events or
material changes in assets, liabilities or related party
relationships since 30 September 2013.
Investment and development portfolio
The group's freehold property portfolio includes offices, retail
and industrial units, a care home and residential property
primarily located close to Heathrow Airport and in the counties of
Surrey and Berkshire.
At The White House, Egham, which comprises five ground floor
retail units with one floor of offices over, the remaining office
suite has now been let. All leases are for terms between five and
ten years with two incorporating tenant breaks.
At The Maidenhead Enterprise Centre, Maidenhead, five of the
business units are occupied and part of the one remaining unit has
now been let.
At The Windsor Business Centre, Windsor, and Heritage Court,
Egham, all business and retail units are let on short and medium
term leases. Discussions are in hand to renew one of the existing
leases at the business centre.
At Cowbridge Road, Cardiff, the property is let on a medium term
lease to The Royal Mail and currently used as a sorting office and
retail centre.
At Egham, Surrey, the company retains a freehold residential
property, which is let on an Assured Shorthold Tenancy
Agreement.
Campmoss Property Company Limited
At Worplesdon View, Worplesdon the seventy eight bedroom care
home is let to Barchester Healthcare Homes on a thirty year
institutional lease with rental linked to RPI. Planning permission
for a further four rooms and additional living space has recently
been granted and construction will commence following an agreement
with the tenant. The tenant reports that occupancy is ahead of
forecast.
At The Priory, Burnham, the business centre and two adjacent
floors of office space are let. The remaining floor, recently
refurbished, remains available.
At Britannia Wharf, Woking, three floors of office are let. The
lower ground floor office area has been refurbished and remains
available.
Kiln Lane, Bracknell, comprises fourteen business units and an
adjacent office unit primarily occupied on medium term leases. One
unit has recently been let, leaving one unit currently
available.
At Highway House and Clivemont House, Maidenhead, the original
buildings have been demolished and part of the Highway House site
is now being used for car parking. Planning permission was
previously granted for two new, separate, office schemes but in
view of the uncertain office letting market, commencement of any
development will only take place following a partial or substantial
pre-letting. Residential values have increased in the locality and
plans for a residential scheme at Clivemont House are currently
being prepared.
At Market Street, Bracknell, planning permission has been
granted for the demolition of two of our commercial buildings
adjacent to Gowring House and the development of two, separate, two
storey buildings to include sixteen retail units. The first scheme
for eight units will commence shortly with completion expected
early next year. Implementation of the Bracknell Town Centre
Redevelopment Scheme by the council is expected to transform the
whole of Bracknell's shopping area.
At Gowring House, Bracknell, all three ground floor retail units
are now let with the first and second floors occupied by a gym and
junior fitness centre. Refurbishment of the three upper floors into
nine, two bedroom and nine, one bedroom apartments is well underway
with completion expected during the next few months. Enquiries for
the apartments, which will either be sold on long leases or let on
Assured Shorthold Tenancy Agreements, have been very
encouraging.
At Datchet Meadows, located between Datchet and Slough, the
development of thirty seven units comprises one, two and three
bedroom apartments. Twenty two apartments have now been sold, six
occurring in the period under review. Twelve are currently let on
Assured Shorthold Tenancy Agreements. One apartment has been sold
subsequent to the half year and two are under offer for sale. This
development, set in its own landscaped grounds, has proved
extremely popular and the level of enquiries for both sales and
lettings remains encouraging.
Quoted Investments
The company retains a small equity portfolio including holdings
in The Renewables Infrastructure Group Limited, listed on the
London Stock Exchange, and ImmuPharma plc and Galileo Resources plc
listed on AIM. I remain a director of Galileo Resources.
Outlook
The completion of new commercial lettings over the last six
months is very encouraging. The sale of apartments at Datchet
Meadows has enabled Campmoss to reduce its indebtedness and, with
completion of the residential scheme at Bracknell and
implementation of new planning permissions at Worplesdon and
Bracknell, the group is well placed to benefit from improvements in
the Thames Valley commercial and residential market. I therefore
look forward to reporting to you further at the end of the
financial year.
J Richard Wollenberg
Chairman
30 April 2014
Condensed Consolidated Interim Income Statement
FOR THE SIX MONTHS ENDED 31 MARCH 2014
Six months Six months Year
31 March 31 March 30 September
2014 2013 2013
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Revenue 257 254 493
Cost of sales (17) (57) (127)
______ ______ ______
Gross profit 240 197 366
Administrative expenses (236) (223) (435)
Other operating income 120 127 351
______ ______ ______
Operating profit before gains/(losses)
on investment properties and other
investments 124 101 282
Profit on sale of other investments - 2 2
Deficit on revaluation of investment
properties - - (153)
Surplus on revaluation of other
properties - - 23
______ ______ ______
Operating profit 124 103 154
Financial income 46 54 99
Share of results of joint venture 465 498 1,066
______ ______ ______
Profit before taxation 635 655 1,319
Taxation (37) (34) (74)
______ ______ ______
Profit for the period attributable
to equity holders 598 621 1,245
______ ______ ______
Earnings per share on profit for
the period - pence
Basic and diluted 45.2 47.0 94.2
______ ______ ______
Dividends
Final 2013 paid 9.25p (2012: 9.0p) 122 119 119
Interim 2013 paid 3.3p (2012:
3.3p) - - 44
______ ______ ______
122 119 163
______ ______ ______
Final 2013 proposed 9.25p - - 122
Interim 2014 proposed 3.4p (2013:
3.3p) 45 44 -
______ ______ ______
45 44 122
______ ______ ______
The above results relate entirely to continuing activities.
There were no acquisitions or disposals of businesses during these
periods.
Condensed Consolidated Interim Balance Sheet
AT 31 MARCH 2014
31 March 31 March 30 September
2014 2013 2013
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Non-current assets
Freehold investment properties 3,843 4,020 3,843
Investment in joint venture 7,751 6,718 7,286
Property, plant and equipment 209 185 207
Other financial assets 432 440 407
Deferred tax asset 4 4 4
______ ______ ______
Total non-current assets 12,239 11,367 11,747
______ ______ ______
Current assets
Stock and work in progress 668 668 668
Trade and other receivables 1,146 1,419 854
Financial assets 2,017 - 2,034
Cash and cash equivalents 1,940 3,586 2,145
______ ______ ______
Total current assets 5,771 5,673 5,701
______ ______ ______
Total assets 18,010 17,040 17,448
______ ______ ______
Current liabilities
Corporation tax (118) (132) (84)
Trade and other payables (467) (401) (418)
______ ______ ______
Total current liabilities (585) (533) (502)
______ ______ ______
Non-current liabilities
Deferred tax liability (60) (65) (57)
______ ______ ______
Total non-current liabilities (60) (65) (57)
______ ______ ______
Total liabilities (645) (598) (559)
______ ______ ______
Net assets 17,365 16,442 16,889
______ ______ ______
Equity
Called up share capital 264 264 264
Share premium account 5,076 5,076 5,076
Other reserves 2,545 2,625 2,545
Investment property revaluation
reserve (1,031) (1,103) (1,031)
Retained earnings 10,511 9,580 10,035
______ ______ ______
Shareholders' funds attributable
to equity holders 17,365 16,442 16,889
______ ______ ______
Net assets per share GBP13.13 GBP12.43 GBP12.77
______ ______ ______
Condensed Consolidated Interim Statement of Cash Flows
FOR THE SIX MONTHS ENDED 31 MARCH 2014
Six months Six months Year
31 March 31 March 30 September
2014 2013 2013
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit for the period 598 621 1,245
Adjustments for:
Depreciation 1 1 1
Financial income (46) (54) (99)
Share of profit of joint venture (465) (498) (1,066)
Profit on sale of other investments - (2) (2)
Deficit on revaluation of investment
properties - - 153
Surplus on revaluation of other
properties - - (23)
Taxation 37 34 74
______ ______ ______
Cash flows from operations before
changes in
working capital 125 102 283
(Increase)/decrease in trade
and other receivables (292) 770 1,335
Increase/(decrease) in trade
and other payables 49 (8) 11
______ ______ ______
Cash generated from operations (118) 864 1,629
Tax paid - - (97)
______ ______ ______
Net cash flows from operating
activities (118) 864 1,532
______ ______ ______
Cash flows from investing activities
Interest received 46 54 99
Acquisition of investments, and
property, plant and equipment (28) (41) (117)
Proceeds on disposal of investments
and property, plant and equipment - 20 20
Held to maturity deposits 17 - (2,034)
______ ______ ______
Net cash flows from investing
activities 35 33 (2,032)
______ ______ ______
Cash flows from financing activities
Dividends paid (122) (119) (163)
______ ______ ______
Net cash flows from financing
activities (122) (119) (163)
______ ______ ______
Net (decrease)/increase in cash
and cash equivalents (205) 778 (663)
Cash and cash equivalents at
beginning of period 2,145 2,808 2,808
______ ______ ______
Cash and cash equivalents at
end of period 1,940 3,586 2,145
______ ______ ______
Other Primary Statements
FOR THE SIX MONTHS ENDED 31 MARCH 2014
Condensed Consolidated Interim Statement of Comprehensive Income
and Expense
Six months Six months Year
31 March 31 March 30 September
2014 2013 2013
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Profit for the financial period 598 621 1,245
Other items recognised directly
in equity
Net change in fair value of available
for sale assets - - (133)
______ ______ ______
Total comprehensive income and expense
for the period attributable to equity
holders of the parent company 598 621 1,112
______ ______ ______
Other Primary Statements
FOR THE SIX MONTHS ENDED 31 MARCH 2014 (continued)
Condensed Consolidated Interim Statement of Changes in
Equity
Investment
Share property
Share premium Other revaluation Retained Total
capital account reserves reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 October 2012 264 5,076 2,640 (1,158) 9,118 15,940
Profit for the period - - - - 621 621
Transactions with equity
holders
Dividends - - - - (119) (119)
______ ______ ______ ______ ______ ______
Total transactions with
equity holders - - - - (119) (119)
______ ______ ______ ______ ______ ______
Transfer on sale of other
investments - - (15) - 15 -
Transfer on revaluation
of investment
properties - - - 55 (55) -
______ ______ ______ ______ ______ ______
At 31 March 2013 264 5,076 2,625 (1,103) 9,580 16,442
Profit for the period - - - - 624 624
Other comprehensive income - - (133) - - (133)
Transactions with equity
holders
Dividends - - - - (44) (44)
______ ______ ______ ______ ______ ______
Total transactions with
equity holders - - - - (44) (44)
______ ______ ______ ______ ______ ______
Realisation of revaluation
reserve - - 30 - (30) -
Transfer on revaluation
of investment properties - - - 72 (72) -
Transfer on revaluation
of other properties - - 23 - (23) -
______ ______ ______ ______ ______ ______
At 30 September 2013 264 5,076 2,545 (1,031) 10,035 16,889
Profit for the period - - - - 598 598
Transactions with equity
holders
Dividends - - - - (122) (122)
______ ______ ______ ______ ______ ______
Total transactions with
equity holders - - - - (122) (122)
______ ______ ______ ______ ______ ______
At 31 March 2014 264 5,076 2,545 (1,031) 10,511 17,365
______ ______ ______ ______ ______ ______
Statement of Responsibility
FOR THE SIX MONTHS ENDED 31 MARCH 2014
The directors are responsible for preparing the condensed
consolidated interim financial statements for the six months ended
31 March 2014 and they confirm, to the best of their knowledge and
belief, that:
-- the condensed consolidated set of interim financial
statements for the six months ended 31 March 2014 has been prepared
in accordance with IAS 34 - Interim Financial Reporting, as adopted
by the EU;
-- the interim management report includes a fair review of the information required by:
a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first
six months of the financial year and their impact on the condensed
set of interim financial statements and a description of the
principal risks and uncertainties for the remaining six months of
the year; and
b) DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first six
months of the current financial year and that have materially
affected the financial position or performance of the group during
that period; and any changes in the related party transactions
described in the last annual report that could do so.
J Richard Wollenberg, Chairman
David A Whitaker, Finance director
Nigel D Jamieson, Independent non-executive director
30 April 2014
Notes to the Condensed Consolidated Interim Financial
Statements
FOR THE SIX MONTHS ENDED 31 MARCH 2014
1. Basis of preparation
This condensed set of financial statements has been prepared in
accordance with IAS 34 - Interim Financial Reporting as adopted by
the EU.
The annual financial statements of the group are prepared in
accordance with International Financial Reporting Standards (IFRSs)
as adopted by the EU. As required by the Disclosure and
Transparency Rules of the Financial Conduct Authority, the
condensed set of financial statements has been prepared applying
the accounting policies and presentation that were applied in the
preparation of the group's published consolidated financial
statements for the year ended 30 September 2013.
The comparative figures for the financial year ended 30
September 2013 are not the group's statutory accounts for that
financial year. Those accounts have been reported on by the group's
auditor and delivered to the registrar of companies. The report of
the auditor was: unqualified; did not give any reference to any
matters to which the auditor drew attention by way of emphasis
without qualifying their report; and did not contain a statement
under sections 498 (2) or (3) of the Companies Act 2006.
Accounting policies
The condensed consolidated interim financial statements have
been prepared applying the accounting policies that were applied in
the preparation of the group's published financial statements for
the year ended 30 September 2013. Whilst numerous other IFRSs and
Interpretations have been endorsed in the period to 31 March 2014
and have been adopted by the group, none of them has had a material
impact on these interim financial statements.
Use of estimates and judgement
The preparation of financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expense. Actual results
may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the
period in which the estimates are revised and in any future periods
affected. The key areas in which estimates have been used and the
assumptions applied are in valuing investment properties and
properties in the joint venture, in valuing available for sale
assets, in classifying properties and in the calculating of
provisions.
An external, independent valuer, having an appropriate
recognised professional qualification and recent experience in the
location and category of property being valued, values the
company's property portfolio at the end of each financial year. The
directors of the joint venture value its portfolio each year; such
valuation takes into account yields on similar properties in the
area, vacant space and covenant strength. The directors of the
group and joint venture review the valuations for the interim
financial statements.
A provision is recognised in the balance sheet when the group
has a present legal or constructive obligation as a result of a
past event and it is probable that an outflow of economic benefit
will be required to settle the obligation. If the effect is
material, provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the
risks specific to the liability.
Going concern
The group has sufficient financial resources to enable it to
continue in operational existence for the foreseeable future, to
complete the current maintenance and development program and meet
its liabilities as they fall due. Accordingly, the directors
consider it appropriate to continue to adopt the going concern
basis in preparing these interim financial statements.
2. Segmental analysis
The group manages its operations in two segments, being property
and other investments and property development. The results of
these segments are regularly reviewed by the board as a basis for
the allocation of resources, in conjunction with individual site
investment appraisals and to assess their performance. Information
regarding the revenue and profit before taxation for each
reportable segment is set out below:
Six months Six months Year
31 March 31 March 30 September
2014 2013 2013
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Revenue (wholly in the United
Kingdom)
Property and other investments
being gross rents
receivable 257 254 493
______ ______ ______
Profit before taxation
Property and other investments 389 477 1,010
Property development 246 178 309
______ ______ ______
635 655 1,319
______ ______ ______
The operations of the group are not seasonal.
3. Taxation
The tax position for the six month period is estimated on the
basis of the anticipated tax rates applying for the full year.
4. Dividends
The interim dividend of 3.4p per share will be paid on 4 July
2014 to shareholders on the register on 6 June 2014. Under
accounting standards this dividend is not included in the condensed
consolidated interim financial statements for the six months ended
31 March 2014.
5. Earnings per share
Earnings per share has been calculated using the profit after
tax for the period of GBP598,000 (March 2013: GBP621,000; September
2013: GBP1,245,000) and the weighted average number of shares as
follows:
Weighted average number of shares
31 March 31 March 30 September
2014 2013 2013
Basic and diluted 1,322,287 1,322,287 1,322,287
_________ _________ _________
Directors and Advisers
Directors Auditor
J Richard Wollenberg KPMG LLP
Chairman and chief executive
David A Whitaker FCA
Finance director Stockbrokers and financial advisers
Westhouse Securities Limited
Nigel D Jamieson BSc, FCSI
Independent non-executive director
Secretary Bankers
David A Whitaker FCA HSBC Bank plc
Non-executive director of wholly owned Solicitors
subsidiary
First Choice Estates plc Morgan Cole LLP
Derek M Joseph BCom, FCIS
Head office Registrar and transfer office
56 Station Road Neville Registrars Limited
Egham TW20 9LF Neville House
Telephone: 01784 437444 18 Laurel Lane
Fax: 01784 439157 Halesowen
E-mail: webmaster@cardiff-property.com B63 3DA
Web: www.cardiff-property.com Telephone: 0121 585 1131
Registered office Registered number
3 Assembly Square 22705
Britannia Quay
Cardiff Bay CF10 4AX
Financial Calendar
2014 1 May Interim results for 2014 announced
4 June Ex-dividend date for interim dividend
6 June Record date for interim dividend
4 July Interim dividend to be paid
July Interim Management Statement to be
announced
30 September End of accounting year
December Final results for 2014 announced
2015 January Annual general meeting
February Final dividend to be paid
February Interim Management Statement to be
announced
This information is provided by RNS
The company news service from the London Stock Exchange
END
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