TIDMCDFF
RNS Number : 1347V
Cardiff Property PLC
30 November 2023
THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY
AND ITS SUBSIDIARIES
LEI: 213800GE3FA4C52C1N05
FOR RELEASE 7.00 AM 30 November 2023
THE CARDIFF PROPERTY PLC
(The Group, including Campmoss, specialises in property
investment and development in the Thames Valley. The total
portfolio including the jointly controlled Campmoss investment and
development portfolio, valued in excess of GBP22m, is primarily
located to the west of London, close to Heathrow Airport and in
Surrey and Berkshire.)
PRELIMINARY RESULTS FOR THE YEARED 30 SEPTEMBER 2023
Highlights:
2023 2022
Net Assets GBP'000 29,975 29,812
Net Assets Per Share GBP 28.44 27.56
Profit Before Tax GBP'000 1,262 2,697
Earnings Per Share
- Basic and diluted pence 104.62 218.23
Dividend Per Share pence 22.0 20.5
Gearing % Nil Nil
Richard Wollenberg, Chairman, commented:
" During the early part of the financial year the Thames Valley
property market experienced a recovery from previous low levels of
activity. However, this did not follow through for the remaining
period to September this year as tenants and investors were
reluctant to commit to the property market resulting in a marked
downturn in new lettings and investment sales particularly in the
office sector.
Office, business unit and retail rents have been adversely
affected by the reduction in activity although at Windsor and
Maidenhead, our business unit rents have retained increases
experienced over the past few years. Office rents remain under
pressure with "working from home" continuing to affect both demand
and occupancy.
Primarily as a result of rising interest rates, investment
yields across the commercial sector have increased placing pressure
on capital values ."
For further information:
The Cardiff Property plc Richard Wollenberg 01784 437444
Shore Capital Patrick Castle 020 7468 7923
THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY
AND ITS SUBSIDIARIES
PRELIMINARY RESULTS FOR THE YEARED 30 SEPTEMBER 2023
Chairman's Statement
Dear Shareholder,
During the early part of the financial year the Thames Valley
property market experienced a recovery from previous low levels of
activity. However, this did not follow through for the remaining
period to September this year as tenants and investors were
reluctant to commit to the property market resulting in a marked
downturn in new lettings and investment sales particularly in the
office sector.
Office, business unit and retail rents have been adversely
affected by the reduction in activity although at Windsor and
Maidenhead, our business unit rents have retained increases
experienced over the past few years. Office rents remain under
pressure with "working from home" continuing to affect both demand
and occupancy.
Primarily as a result of rising interest rates, investment
yields across the commercial sector have increased placing pressure
on capital values.
The Group's residential interests primarily in Bracknell
benefitted from a strong rental market. All apartments are let on
Assured Shorthold Tenancy Agreements which are renewed on an annual
basis.
During the year the Group, including Campmoss our 47.62% Joint
Venture, completed a number of lettings mainly to existing tenants
renewing leases. Rent reviews where applicable were agreed at
marginal increases.
Liaison with the Group's tenants which comprise mainly small
businesses remains a priority. The majority of retail tenants
continued to trade during the Covid period and have subsequently
grown their businesses.
At The Priory, Burnham planning permission has been secured for
a 75-bedroom Care Home and several opportunities for the site are
being pursued.
At Windsor and Maidenhead, planning proposals continue to be
discussed with the Local Authority and we are hopeful of a positive
outcome. Shareholders should recognise that planning costs have
risen substantially as a result of applications now requiring
numerous independent reports. Planning lead in time and response
have lengthened considerably leading to increased costs and
uncertainties. The position is unlikely to improve in the short
term.
FINANCIAL
For the year to 30 September 2023, the Group profit before tax
was GBP1.3m (2022: GBP2.7m). This includes a negative revaluation
of GBP0.3m (2022: positive revaluation GBP0.3m). Our share of after
tax profit in Campmoss and its subsidiary amounted to GBP0.53m
(2022: GBP0.87m). The Company received a dividend of GBP2.0m (2022:
GBP3.0m) from its investment in Campmoss.
Revenue for the year which represented gross rental income,
excluding Campmoss, totalled GBP0.7m (2022: GBP0.7m).
The profit after tax attributable to shareholders for the
financial year was GBP1.11m (2022: GBP2.41m) and the earnings per
share was 104.62p (2022: 218.23p).
At the year-end, the Company's commercial portfolio was valued
by Kempton Carr Croft at a total of GBP5.64m (2022: GBP5.97m). This
valuation excludes the company's freehold office property which was
also valued by Kempton Carr Croft and is included in the balance
sheet at valuation classified as property, plant and equipment. The
decline in capital values is due to the rapid increase in interest
rates over the year.
Property when completed and retained for re-sale is held as
stock at the lower of cost or net realisable value. At the year-end
this related to commercial property at The Windsor Business Centre
owned by First Choice Estates plc, the Company's fully owned
subsidiary and residential apartments held by Campmoss.
The Group's total property portfolio, including the jointly
controlled Campmoss group, was valued at GBP22.9m (2022:
GBP22.3m).
The Company's share of the net assets of Campmoss group was
GBP12.28m (2022: GBP13.76m) this is after receipt of dividends from
Campmoss of GBP2.0m (2022: GBP3.0m).
The Group's total net assets as at the year-end were GBP29.98m
(2022: GBP29.81m) equivalent to GBP28.44 per share (2022: GBP27.56)
an increase of 3.2% over the year (2022: 8.1%). The Group,
including Campmoss, has adequate financial facilities and resources
to complete works in progress as well as the envisaged development
programme. Cash balances are held on instant or short-term deposit.
At the year-end, the company had nil gearing (2022: nil).
During the year the company purchased and cancelled 27,977
(2022: 34,199) ordinary shares at a total cost of GBP0.68m (2022:
GBP0.79m).
The Company may hold in treasury any of its own shares
purchased. This gives the Company the ability to reissue treasury
shares and provides greater flexibility in the management of its
capital base. At the year end the Company held nil (2022: nil)
shares in treasury. Any shares purchased by the Company not held in
treasury will be cancelled and the number of shares in issue
reduced accordingly.
The Company proposes to continue its policy of purchasing its
own shares, whether to be held in treasury or to be cancelled, and
a resolution renewing the directors' authority will be placed
before the forthcoming Annual General Meeting to be held on 18
January 2024. This authority will only be exercised in
circumstances where the Directors regard such purchases to be in
the best interests of shareholders as a whole. Full details are
available on the Company's website www.cardiff-property.com .
IFRS accounting requires that deferred tax is recognised on the
difference between, the cost of properties, including applicable
indexation and quoted investments and their current market value.
However, IFRS accounting does not require the same treatment in
respect of the Group's unquoted investment in Campmoss, our 47.62%
owned joint venture, which represents a substantial part of the
company's net assets. Whilst provision is made in the Campmoss
accounts for deferred tax, should the shares held in Campmoss be
disposed of, for indicative purposes, based on the value in the
Company's balance sheet at the year-end this would result in a tax
liability of GBP3.07m (2022: GBP3.44m) equivalent to GBP2.91 (2022:
GBP3.18) per share calculated using a tax rate of 25% (2022: 25%).
This information is provided to shareholders as an additional
non-statutory disclosure.
DIVID
The Directors recommend a final dividend of 16.0p per share
(2022: 15.0p) making a total dividend for the year of 22.0p (2022:
20.5p), an increase of 7.3%. The final dividend will be paid on 2
February 2024 to shareholders on the register at 19 January
2024.
THE PROPERTY PORTFOLIO
The Group, including Campmoss, continues to concentrate its
property activities in the Thames Valley, primarily to the west of
London, close to Heathrow Airport and in Surrey, Berkshire and
Buckinghamshire.
During the year the Company completed a number of new lettings
in Maidenhead whilst progressing development plans at Windsor.
The Campmoss group property portfolio is predominantly let
reflecting an active management policy. At The Priory, Stomp Road,
Burnham a planning permission was granted for a new 75-bedroom care
home whilst retaining the existing business centre. As mentioned
earlier a number of opportunities are being considered. The current
value of The Priory has been increased to GBP4.9m (2002:
GBP4.3m).
The Groups property portfolio (including Campmoss) contains 43%
retail, 7% business units, 13% residential and 37% offices (by
value).
During the year, the Group investigated a number of acquisitions
in the Thames Valley but in view of the uncertain market and
economic conditions asking prices were considered to be unviable
and therefore no purchases took place.
FOCUS ON ESG
The Group has a strategy of providing our tenants with
environmentally sustainable and energy efficient and functional
buildings when possible bearing in mind physical and financial
constraints.
A large part of our property portfolio is relatively new having
been developed by the Group within the last ten years. Where
refurbishment has taken place the management team have given
thought to all aspects of ESG together with related Health and
Safety issues and implemented where viable and possible.
In respect of current planning applications design emphasis has
been given towards sustainability and green policies as well as
being energy efficient. Our aim is to create a good working
environment and achieving a BREEAM rating of very good.
We continue to consider how the business can contribute towards
the government policy of achieving a net zero economy. Due to the
size of the business the amount of carbon emissions is very much
limited however we continue to monitor and take appropriate action
to reduce our impact on the climate.
The Company has included in this Annual Report climate-related
financial disclosures consistent with the TCFD's recommendations
and eleven recommended disclosures as required by LR 9.8.6 R
(8).
QUOTED INVESTMENTS
The Company retains a small portfolio of quoted short-term
retail bonds and equity investments with the former providing an
income stream. The value has marginally decreased over the year and
with the Retail Bond holdings approaching their maturity dates the
proceeds when reinvested should attract a higher rate of
return.
The quoted equity investments include Aquila Services Group plc
(the UK's largest affordable housing consultancy group) and Galileo
Resources plc (a mining exploration company). I remain a
Non-Executive Director of both quoted companies.
RELATIONSHIP AGREEMENT
The Company has in place a legally binding relationship
agreement with myself, its controlling shareholder, to address the
requirements of LR9.2.2AD of the Listing Rules.
MANAGEMENT AND TEAM
The Group's policy of close liaison with its tenants has been
very challenging and I therefore wish to take this opportunity to
thank all members of our small property team and our Joint Venture
partners for their support and achievements during the year.
OUTLOOK
The prospect of high interest rates remaining over the next few
years and the political and current economic uncertainty will
inevitably limit any sustained recovery in the property market. The
Thames Valley continues to retain its prime location status and
should benefit from any recovery in the sector. There are many
factors that will determine the direction of the property market
over the next financial year, and I look forward to reporting
further progress at the half year stage.
J. Richard Wollenberg
Chairman
29 November 2023
Consolidated Income Statement
FOR THE YEARED 30 SEPTEMBER 2023
2023 2022
GBP'000 GBP'000
Revenue 662 703
Cost of sales (52) (64)
Gross profit 610 639
Administrative expenses (569) (461)
Other operating income 646 574
Operating profit before
fair value movement on investment
properties 687 752
Fair value (loss)/gain on
investment properties (332) 299
Operating profit 355 1,051
Financial income 314 80
Financial expense (6) (8)
Profit on sale of investment
properties - 706
Profit on the sale of investments 74 -
Share of profit of Joint
Venture 525 868
Profit before taxation 1,262 2,697
Taxation (148) (291)
Profit for the financial
year attributable to equity
holders 1,114 2,406
Earnings per share on profit
for the
financial year - pence
Basic and diluted 104.62 218.23
Dividends
Final 2022 paid 15.0p (2021:
13.5p) 161 150
Interim 2023 paid 6.0p (2022
5.5p) 64 60
225 210
Final 2023 proposed 16.0p
(2022: 15.0p) 162 162
These results relate entirely to continuing operations.
Consolidated statement of comprehensive income and expense
FOR THE YEARED 30 SEPTEMBER 2023
2023 2022
GBP'000 GBP'000
Profit for the financial year 1,114 2,406
Items that cannot be reclassified
subsequently to profit or loss
Net change in fair value of other
properties (10) 59
Net change in fair value of investments
at fair value through comprehensive
income (37) (94)
Total comprehensive income and expense
for the year attributable
to the equity holders of the Parent
Company 1,067 2,371
Consolidated Balance Sheet
AT 30 SEPTEMBER 2023
2023 2023 2022 2022
GBP'000 GBP'000 GBP'000 GBP'000
Non-current assets
Freehold investment properties 5,655 5,985
Property, plant, and equipment 290 300
Right of use asset 135 145
Investment in Joint Venture 12,283 13,758
Other financial assets 778 898
19,141 21,086
Current assets
Inventory and work in progress 715 694
Trade and other receivables 274 223
Term deposits 10,384 4,041
Cash and cash equivalents 405 4,912
11,778 9,870
Total assets 30,919 30,956
Current liabilities
Trade and other payables (540) (599)
Corporation tax (162) (198)
(702) (797)
Non-current liabilities
Lease liability (165) (172)
Deferred tax liability (77) (175)
Total liabilities (944) (1,144)
Net assets 29,975 29,812
Equity
Called up share capital 210 216
Share premium account 5,076 5,076
Other reserves 2,409 2,450
Investment property fair
value reserve 2,193 2,095
Retained earnings 20,087 19,975
Total equity 29,975 29,812
Net assets per share GBP28.44 GBP27.56
Consolidated Cash Flow Statement
FOR THE YEARED 30 SEPTEMBER 2023
2023 2022
GBP'000 GBP'000
Cash flows from operating activities
Profit for the year 1,114 2,406
Adjustments for:
Depreciation right of use assets 10 10
Financial income (314) (80)
Financial expense 6 8
Profit on sale of investment property - (706)
Profit on sale of investments (74) -
Share of profit of Joint Venture (525) (868)
Fair value (loss)/gain on investment
properties 332 (299)
Taxation 148 291
Cash flows from operations before
changes in working capital 697 762
Acquisition of inventory and work
in progress (21) (5)
(Increase)/decrease in trade and
other receivables (67) (67)
(Decrease)/increase in trade and
other payables (58) (128)
Cash generated from operations 551 562
Tax paid (268) (218)
Net cash flows from operating activities 283 344
Cash flows from investing activities
Interest received 314 81
Dividend from Joint Venture 2,000 3,000
Proceeds from sale of investment property - 1,000
Proceeds from bond redemption 80 -
Acquisition of investment property,
and plant and equipment (2) (39)
Proceeds from sale of investments 79 81
Increase in held term deposits (6,343) (2,134)
Net cash flows from investing activities (3,872) 1,989
Cash flows from financing activities
Purchase of own shares (679) (791)
Lease payments (14) (14)
Dividends paid (225) (210)
Net cash flows (used in)/from financing
activities (918) (1,015)
Net (decrease)/ increase in cash
and cash equivalents (4,507) 1,318
Cash and cash equivalents at beginning
of year 4,912 3,594
Cash and cash equivalents at end
of year 405 4,912
Consolidated statement of changes in equity
FOR THE YEARED 30 SEPTEMBER 2023
Called Share Other Investment Retained Total
up share premium reserves property earnings equity
capital account fair value
reserve*
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 30 September 2021 223 5,076 2,478 1,814 18,851 28,442
Profit for the year - - - - 2,406 2,406
Other comprehensive
income - revaluation
of investments
Net change in fair - - (94) - - (94)
value of own use
freehold property - - 59 - - 59
Transactions with
equity holders
Dividends - - - - (210) (210)
Purchase of own shares (7) - 7 - (791) (791)
Total transactions
with equity holders (7) - 7 - (1,001) (1,001)
Fair value movements
on investment properties
- Cardiff - - - 299 (299) -
Disposal of property
- Cardiff - - - (171) 171 -
Fair value movements
on investment properties
- Campmoss Group - - - 153 (153) -
At 30 September 2022 216 5,076 2,450 2,095 19,975 29,812
Profit for the year - - - - 1,114 1,114
Other comprehensive
income - revaluation
of investments
Net change in fair - - (37) - - (37)
value of own use
freehold property - - (10) - - (10)
Transactions with
equity holders
Dividends - - - - (225) (225)
Purchase of own shares (6) - 6 - (679) (679)
Total transactions
with equity holders (6) - 6 - (904) (904)
Fair value movements
on investment properties
- Cardiff - - - (332) 332 -
Deferred taxation
on fair value movement
on investment properties
- Cardiff - - - 98 (98) -
Fair value movements
on investment properties
- Campmoss Group - - - 332 (332) -
At 30 September 2023 210 5,076 2,409 2,193 20,087 29,975
______ __ ____ ______ ______ ______ ___ ___
* - Includes fair value movements on investment properties held
by Campmoss Group, our Joint Venture, which are presented in
investment property fair value reserve to demonstrate these are
unrealised.
Notes to the Financial Statements
FOR THE YEARED 30 SEPTEMBER 2023
1. Basis of preparation
The consolidated results for the year ended 30 September 2023
and 2022 are prepared in accordance with UK-adopted international
accounting standards ("UK-adopted IAS") and those parts of the
Companies Act 2006 applicable to companies reporting under IFRS and
have been incorporated into the principal accounting policies.
The financial information set out above does not constitute the
company's statutory financial statements for the years ended 30
September 2023 or 30 September 2022 but is derived from those
financial statements. Statutory financial statements for 2021 have
been delivered to the Registrar of Companies and those for 2022
will be delivered in due course. The auditor has reported on those
financial statements; their reports were (i) unqualified, (ii) did
not include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 498 (2) or (3) of
the Companies Act 2006 in respect of the financial statements for
2023 nor 2022.
Going concern
The financial statements have been prepared on a going concern
basis, which assumes that the Group will continue to meet its
liabilities as they fall due. The Group's activities, together with
the factors likely to affect its future development, performance
and position are set out in the Chairman's Statement and Strategic
Report. The financial position of the Group, its property portfolio
under management, asset base, liquidity and key performance
indicators.
The Group has sufficient financial resources to enable it to
continue to trade and to complete the current maintenance and
development programme. The Group is ungeared, and the cash flow
forecasts do not assume any debt being required. Therefore, the
Directors believe that the Group is well placed to manage its
business risks successfully despite the current economic
uncertainty.
The Group is in the enviable position of having significant cash
balances. At 30 September 2023, the Cardiff Group had cash balances
of GBP0.4m and a further GBP10.4m term deposits (generally with
maturity dates of 95 days), in addition the Company has investments
of GBP0.8m of which GBP0.7m are readily marketable. The Group has
an operating cost base including tax and dividends of under GBP1m
per annum so even with no income for a number of years the Group
would remain solvent.
Notes to the Financial Statements
FOR THE YEARED 30 SEPTEMBER 2023 (continued)
The Cardiff Group receives a management fee from Campmoss of
around GBP0.5m per annum, there is no reason to assume this income
would not be received as the Campmoss Group had cash balances at 30
September 2023, of GBP6.5m and a further GBP4.7m term deposits
(generally with maturity dates of 95 days).
New, revised or changes to existing financial reporting
standards
Subject to the adoption of the IFRS's available for application
noted below, this announcement is prepared on the basis of the
accounting policies as set out in the most recently published set
of annual financial statements.
IFRS
A number of new standards and amendments to standards and
interpretations have been issued but are not yet effective for the
current accounting period. None are expected to have a material
impact on the consolidated financial statements of the Group.
2. Segmental analysis
The Group manages its operations in two segments, being property
and other investment and property development. Property and other
investment relates to the results for The Cardiff Property Company
Limited where properties are held as investment property with
Property Development relating to the results of First Choice
Estates Plc and Thames Valley Retirement Homes Limited. 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 results and net operating assets for each
reportable segment are set out below:
Property Property Eliminations 2023
and other Development Total
investment
GBP'000 GBP'000 GBP'000 GBP'000
Rental income (wholly
in the UK) 436 226 - 662
Profit before taxation 829 433 - 1,262
Net operating
assets
Assets 28,854 5,246 (3,181) 30,919
Liabilities (3,882) (243) 3,181 (944)
Net assets 24,972 5,003 - 29,975
Notes to the Financial Statements
FOR THE YEARED 30 SEPTEMBER 2023 (continued)
Property Property Eliminations 2022
and other Development
investment Total
GBP'000 GBP'000 GBP'000 GBP'000
Rental income (wholly
in the UK) 494 209 - 703
Property sales 706 - - 706
Profit before taxation 2,433 264 - 2,697
Net operating
assets
Assets 27,006 5,038 (1,088) 30,956
Liabilities (1,936) (296) 1,088 (1,144)
Net assets 25,070 4,742 - 29,812
"Eliminations" relate to inter segment transactions and balances
which cannot be specifically allocated but are eliminated on
consolidation.
3. Earnings per share
Earnings per share has been calculated in accordance with IAS 33
- Earnings Per Share using the profit after tax for the financial
year of GBP1,114,000 (2022: GBP2,406,000) and the weighted average
number of shares as follows:
Weighted average
number of shares
2023 2022
Basic and diluted shares 1,064,204 1,102,357
104.62 218.23
Earnings per share (p)
There is no difference between basic and diluted shares as the
Company has no potentially dilutive instruments in issue.
Financial Calendar
30 November 2023 Results announced for the year ended 30 September 2023
18 January 2024 Annual General Meeting
18 January 2024 Ex-dividend date for the final dividend
19 January 2024 Record date for the final dividend
2 February 2024 Final dividend to be paid
May 2023 Interim results for 2024 to be announced
30 September 2024 Year end
Directors and Advisers
Directors Statutory Auditor
J Richard Wollenberg MHA
Chairman and chief executive
Karen L Chandler FCA
Finance director Stockbrokers and financial adviser
Shore Capital
Nigel D Jamieson BSc, FCSI
Independent non-executive director
Secretary Bankers
Karen L Chandler FCA HSBC Bank Plc
Non-executive director of wholly owned Solicitors
subsidiary
First Choice Estates plc Blake Morgan LLP
Derek M Joseph BCom, FCIS Charsley Harrison LLP
Head office Registrar and transfer office
56 Station Road Neville Registrars Ltd
Egham Neville House
Surrey TW20 9LF Steelpark Road
Telephone: 01784 437444 Halesowen
Fax: 01784 439157 B62 8HD
E-mail: webmaster@cardiff-property.com Telephone: 0121 585 1131
Website: www.cardiff-property.com
Registered office Registered number
56 Station Road 00022705
Egham
Surrey TW20 9LF
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