TIDMCIC
RNS Number : 1468Y
Conygar Investment Company PLC(The)
11 May 2021
11 May 2021
The Conygar Investment Company PLC
Interim results for the six months ended 31 March 2021
Summary
-- Net asset value of GBP86.7 million (164.0p per share).
-- Total cash deposits of GBP23.9 million (45.3p per share).
-- No debt and no borrowings.
-- Development commenced for the first phase of the mixed-use
development at The Island Quarter, Nottingham.
-- Detailed planning applications submitted in January 2021 and
May 2021 for the next two phases of The Island Quarter development
which include a hotel, to be managed by Intercontinental Hotels
Group, residential rental apartments, co-working space and a 702
bed student accommodation scheme.
-- GBP1.2 million write down in the value of the retail park at
Cross Hands, Carmarthenshire as a result of the continuing negative
investor sentiment towards this sector.
-- Bought back 0.74 million shares (1.4% of ordinary share
capital) at an average price of 109.0p per share.
Group net assets summary as at 31 March 2021
Per share
GBP'm p
Investment properties 42.7 80.9
Development properties 19.5 36.9
Cash 23.9 45.3
Other 0.6 0.9
Net assets 86.7 164.0
====== ==========
Robert Ware, Chief Executive of The Conygar Investment Company
PLC, commented:
"After 15 months of COVID-19 we expect the country slowly to
return to a semblance of normality, boosted by the extraordinary
success of the vaccinations. We have no idea how the huge debt
hang-over from government intervention will affect the future but
we think trends such as working from home and retail moving online
will have been accelerated. We continue to stick to what we know.
The Island Quarter project at Nottingham has significantly
progressed along with the majority of our other assets and we
continue to operate with sensible overheads, no debt and cash
reserves. We anticipate real progress will be made over the next
year."
Enquiries:
The Conygar Investment Company PLC
Robert Ware: 020 7258 8670
David Baldwin: 020 7258 8670
Liberum Capital Limited (Nominated Advisor and Broker)
Richard Bootle: 020 3100 2222
Edward Phillips: 020 3100 2222
Jamie Richards: 020 3100 2222
Temple Bar Advisory (Public Relations)
Alex Child-Villiers: 07795 425580
Will Barker: 07827 960151
This announcement is released by The Conygar Investment Company
PLC and contains inside information for the purposes of Article 7
of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018
("MAR"), and is disclosed in accordance with the Company's
obligations under Article 17 of MAR.
The person who arranged for the release of this announcement on
behalf of the Company was Robert Ware, Chief Executive.
Chairman's and Chief Executive's statement
Results summary
We present the Group's results for the period ended 31 March
2021.
More than a year on from its start, the UK and global economies
continue to be severely impacted by the unprecedented and, all too
often, tragic effects of COVID-19. However, the rapid rollout and
continuing success of the UK's vaccination programme, the
significant reduction in infection and hospitalisation rates during
the last few months and the steps taken along the roadmap to ease
lockdown restrictions should allow us to cautiously look forward to
an improvement in business confidence during 2021, albeit with the
pace of recovery determined to a large extent by the response to
the significant social and economic changes we have all experienced
this past year.
The net asset value was GBP86.7 million at 31 March 2021 (31
March 2020: GBP95.3 million; 30 September 2020: GBP88.8 million)
and the loss after tax for the six month period was GBP1.4 million
(period ended 31 March 2020: loss of GBP1.5 million, year ended 30
September 2020: loss of GBP8.0 million). The loss for the current
period includes a GBP1.2 million write down in the value of our
retail park at Cross Hands, Carmarthenshire, as a result of the
significant impact of COVID-19 on the retail sector compounded by
the strong growth in online shopping both before and, to an even
greater extent, throughout the pandemic.
We have continued to support our customers, staff and tenants
whenever possible including, in a number of cases, the deferral of
rent for some of our tenants most negatively impacted by COVID-19.
Rent collection rates have been reasonably strong at 90% for
December 2020 with 82% collected to date for March 2021.
Despite the challenges posed by the further lockdown in January
2021, the Group has made steady progress on its property portfolio
over the six month period, the highlights of which are set out
below.
At The Island Quarter, Nottingham, work has begun on site for
the first phase of this exciting and substantial development
comprising a 21,500 square foot food and beverage led building in
an enhanced canal-side setting with associated public realm. This
initial phase, which is scheduled for completion by the end of
March 2022, will, we believe, open up the previously underused
canal-side part of the city and bring the local residents back to
The Island Quarter, thereby further unlocking the potential of the
remaining site.
In January 2021, a detailed planning application was submitted
for the first major phase of The Island Quarter's mixed-use scheme
which includes a hotel, to be managed by the Intercontinental
Hotels Group, 247 residential rental apartments, 32,000 square feet
of flexible co-working space, plus an extensive food and beverage
area. It is hoped that planning permission for this phase will be
achieved later in 2021.
After the half year end, in May 2021, a detailed planning
application was also submitted for a 702 bed student accommodation
scheme which we hope to have operational for the September 2023
university intake.
We continue to progress the designs for subsequent phases of The
Island Quarter and are advancing our discussions on financing
options for the development which we hope to make further
announcements on later in the year.
At Haverfordwest in Pembrokeshire, construction of a spine road
and associated drainage commenced in January 2021, which should be
completed later this year, to open up the site for future
development.
The 31 March 2021 revaluation of our retail park at Cross Hands
in Carmarthenshire, at GBP15.85 million, reflects a 3.9% reduction
in value since the year end. The retail sector has continued to
suffer from forced closures and trading restrictions with investor
sentiment remaining negative towards this sector. However, the park
at Cross Hands has been able to trade well throughout the pandemic
reflecting the large proportion of 'essential' high quality
tenants. Our unpaid rents which have been provided for in these
financial statements, arose primarily from Peacock Stores Limited
who occupy 5,200 square feet at Cross Hands and who went into
administration in November 2020.
At Cross Hands, we completed the construction of the 2,750
square foot Burger King restaurant and drive-through which
commenced trading in December 2020. A change of use application was
also submitted, to be determined in the coming weeks, to progress
the letting to a gym operator, with whom we exchanged contracts in
2020, for a 3,400 square foot unit.
At the Holyhead Waterfront scheme in Anglesey, we continue to
work on the detailed design and reserved matters application in
tandem with the marine consenting process and expect to submit both
in the next few months.
In April 2019, we exchanged a conditional contract, on a subject
to planning basis, to dispose of our industrial property in Selly
Oak, Birmingham. An amended planning application for this student
accommodation scheme was submitted by the purchaser in January 2021
and we are awaiting its determination.
During the period the Company's development sites at King's
Lynn, Norfolk, and Fishguard lorry stop in Pembrokeshire were sold
for total net proceeds of GBP1.0 million resulting in a combined
net profit of GBP0.4 million.
Share buyback
During the six-month period ended 31 March 2021, the Group
acquired 740,000 ordinary shares, representing 1.4% of its ordinary
share capital, at a cost of GBP0.81 million which equates to an
average price of 109.0p per share. We continue to see the buyback
authority as a useful capital allocation tool and will continue to
use it when we believe the stock market value differs too widely
from our view of the intrinsic value of the Company.
Board change
We are pleased to welcome David Baldwin to the Board. David was
appointed as Finance Director on 10 May 2021 having been with the
Company for five years as Financial Controller and also since 6
April 2020 as Company Secretary.
Outlook
After 15 months of COVID-19 we expect the country slowly to
return to a semblance of normality, boosted by the extraordinary
success of the vaccinations. We have no idea how the huge debt
hang-over from government intervention will affect the future but
we think trends such as working from home and retail moving online
will have been accelerated. We continue to stick to what we know.
The Island Quarter project at Nottingham has significantly
progressed along with the majority of our other assets and we
continue to operate with sensible overheads, no debt and cash
reserves. We anticipate real progress will be made over the next
year.
N J Hamway R T E Ware
Chairman Chief Executive
Financial review
Net asset value
During the six months ended 31 March 2021, the net asset value
decreased by GBP2.1 million to GBP86.7 million (31 March 2020:
GBP95.3 million; 30 September 2020: GBP88.8 million). The primary
movements in the period were GBP0.8 million of rental income plus a
GBP0.4 million profit on the sale of our development sites at
King's Lynn and Fishguard lorry stop offset by GBP0.4 million of
development costs written off, a GBP1.2 million reduction in the
valuation of Cross Hands, GBP1.0 million of administrative costs
and GBP0.8 million relating to the purchase of our own shares
(GBP0.5 million of which were paid for in the period and GBP0.3
million settled in April 2021 to complete the purchase of 0.3
million shares acquired on 31 March 2021).
Cash flow and financing
At 31 March 2021, the Group had cash of GBP23.9 million and no
debt (31 March 2020: cash of GBP36.1 million and no debt; 30
September 2020: cash of GBP32.1 million and no debt).
The primary cash outflows in the current period were GBP8.4
million incurred on development projects and investment properties,
including GBP7.1 million to progress the development at Nottingham,
and GBP0.5 million to buy back shares. These were partly offset by
cash inflows of GBP1.0 million from the sale of King's Lynn and
Fishguard lorry stop resulting in a net cash outflow during the
period of GBP8.2 million.
Net income from property activities Six months ended Year
ended
31 Mar 31 Mar 30 Sept
2021 2020 2020
GBP'm GBP'm GBP'm
Rental income 0.8 0.9 1.7
Direct property costs (0.2) (0.1) (0.2)
-------- --------- ----------
0.6 0.8 1.5
Sale of properties 1.0 3.7 3.7
Cost of properties sold (0.6) (3.5) (3.5)
-------- --------- ----------
0.4 0.2 0.2
Total net income arising from property activities 1.0 1.0 1.7
======== ========= ==========
Administrative expenses
The administrative expenses for the period ended 31 March 2021
were GBP1.0 million (period ended 31 March 2020: GBP1.6 million;
year ended 30 September 2020: GBP2.6 million). The major items were
salary costs of GBP0.7 million (period ended 31 March 2020: GBP1.2
million; year ended 30 September 2020: GBP1.9 million) and various
costs arising as a result of the Group being listed on AIM.
Taxation
No tax is payable on the loss for the six months ended 31 March
2021 (period ended 31 March 2020: tax credit of GBP0.2 million;
year ended 30 September 2020: tax credit of GBP0.2 million).
As at 31 March 2021, the Group has unused tax losses and capital
allowances totalling GBP42 million for which no deferred tax asset
has been recognised in the consolidated balance sheet at 31 March
2021 (30 March 2020: GBPnil; 30 September 2020: GBPnil). However,
the Board are committed to delivering long term value for
shareholders and as such are hopeful that some or all of these
losses will be utilised in the future against returns from the
Group's property development portfolio.
Summary of investment properties
31 Mar 31 Mar 30 Sept
2021 2020 2020
GBP'm GBP'm GBP'm
Nottingham - at cost (1) 26.88 - 19.80
Cross Hands - at valuation (2) 15.85 16.40 16.50
Total 42.73 16.40 36.30
======= ======= ========
(1) The Group's investment in Nottingham was transferred to
investment properties under construction during the year ended 30
September 2020.
(2) External valuations provided by Knight Frank LLP at each period end.
Summary of development and trading properties
31 Mar 31 Mar 30 Sept
2021 2020 2020
GBP'm GBP'm GBP'm
Nottingham (2) - 16.76 -
Haverfordwest 7.93 7.71 7.78
Holyhead Waterfront 5.00 9.56 5.00
Selly Oak 3.57 3.57 3.57
Rhosgoch 2.50 3.00 2.50
Parc Cybi 0.50 0.50 0.50
King's Lynn (3) - 0.76 0.53
Fishguard lorry stop (3) - 0.07 0.07
Total 19.50 41.93 19.95
======= ======= ========
(1) Development projects are stated at the lower of cost and net realisable value.
(2) As set out above, the Group's investment in Nottingham was
transferred to investment properties under construction in the year
ended 30 September 2020.
(3) King's Lynn and Fishguard lorry stop were both sold in the
current period for gross proceeds of GBP0.53 million each which
resulted in a combined net profit of GBP0.4 million.
Consolidated statement of comprehensive income
For the six months ended 31 March 2021
Six months ended Year ended
31 Mar 31 Mar 30 Sept
2021 2020 2020
Note GBP'000 GBP'000 GBP'000
Rental income 824 876 1,675
Proceeds on sale of development properties 1,050 - -
Revenue 3 1,874 876 1,675
------------------ ---------------- ---------------
Direct costs of:
Rental income (155) (51) (233)
Costs of development properties sold (620) - -
Development costs (written off) / written
back 9 (367) 63 (5,611)
Direct costs (1,142) 12 (5,844)
------------------ ---------------- ---------------
Gross profit / (loss) 732 888 (4,169)
Deficit on revaluation of investment
properties 7 (1,151) (1,284) (1,722)
Profit on sale of investment property - 168 167
Administrative expenses (973) (1,591) (2,623)
------------------ ---------------- ---------------
Operating loss (1,392) (1,819) (8,347)
Finance costs 4 (1) - (5)
Finance income 4 25 120 187
------------------ ---------------- ---------------
Loss before taxation (1,368) (1,699) (8,165)
Taxation - 210 210
------------------ ---------------- ---------------
Loss and total comprehensive
charge for the period (1,368) (1,489) (7,955)
================== ================ ===============
Basic and diluted loss per share 6 (2.55)p (2.74)p (14.73)p
All amounts are attributable to equity shareholders.
All of the activities of the Group are classed as
continuing.
Consolidated statement of changes in equity
For the six months ended 31 March 2021
Capital
Share redemption Treasury Retained Total
capital reserve shares earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Changes in equity for the
six months ended 31 March 2020
At 1 October 2019 2,826 3,727 - 94,177 100,730
Loss for the period - - - (1,489) (1,489)
--------- ------------ ---------- ---------- --------
Total comprehensive charge for
the period - - - (1,489) (1,489)
Purchase of own shares - - (3,965) - (3,965)
At 31 March 2020 2,826 3,727 (3,965) 92,688 95,276
========= ============ ========== ========== ========
Changes in equity for the
year ended 30 September 2020
At 1 October 2019 2,826 3,727 - 94,177 100,730
Adjustment on implementation
of IFRS 16 - - - 23 23
2,826 3,727 - 94,200 100,753
Loss for the year - - - (7,955) (7,955)
--------- ------------ ---------- ---------- --------
Total comprehensive charge for
the year - - - (7,955) (7,955)
Purchase of own shares - - (3,965) - (3,965)
Cancellation of treasury shares (146) 146 3,965 (3,965) -
At 30 September 2020 2,680 3,873 - 82,280 88,833
========= ============ ========== ========== ========
Changes in equity for the
six months ended 31 March 2021
At 1 October 2020 2,680 3,873 - 82,280 88,833
Loss for the period - - - (1,368) (1,368)
--------- ------------ ---------- ---------- --------
Total comprehensive charge for
the period - - - (1,368) (1,368)
Purchase of own shares - - (807) - (807)
At 31 March 2021 2,680 3,873 (807) 80,912 86,658
========= ============ ========== ========== ========
Consolidated balance sheet
As at 31 March 2021
31 Mar 31 Mar 30 Sept
2021 2020 2020
Note GBP'000 GBP'000 GBP'000
Non-current assets
Investment properties 7 15,850 16,400 16,500
Investment properties under construction 8 26,882 - 19,761
Right of use asset 100 - 146
42,832 16,400 36,407
--------- -------- --------
Current assets
Development and trading properties 9 19,503 41,934 19,952
Trade and other receivables 10 1,453 1,848 1,655
Tax asset 31 70 31
Cash and cash equivalents 23,933 36,079 32,126
44,920 79,931 53,764
--------- -------- --------
Total assets 87,752 96,331 90,171
Current liabilities
Trade and other payables 11 995 1,005 1,215
Lease liability 99 - 89
1,094 1,005 1,304
--------- -------- --------
Non-current liabilities
Provision for liabilities and
charges 12 - 50 -
Lease liability - - 34
Total liabilities 1,094 1,055 1,338
--------- -------- --------
Net assets 86,658 95,276 88,833
========= ======== ========
Equity
Called up share capital 2,680 2,826 2,680
Capital redemption reserve 3,873 3,727 3,873
Treasury shares (807) (3,965) -
Retained earnings 80,912 92,688 82,280
Total equity 86,658 95,276 88,833
Net assets per share 13 164.0p 177.8p 165.8p
Consolidated cash flow statement
For the six months ended 31 March 2021
Six months ended Year ended
31 Mar 31 Mar 30 Sept
2021 2020 2020
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Operating loss (1,392) (1,819) (8,347)
Development costs written off
/ (written back) 367 (63) 5,611
Profit on sale of development
and trading properties (430) - -
Deficit on revaluation of investment
properties 1,151 1,284 1,722
Profit on sale of investment
property - (168) (167)
Depreciation of right of use
asset 46 - 93
Cash flows from operations before
changes in working capital (258) (766) (1,088)
Decrease / (increase) in trade
and other receivables 202 (378) (107)
Net proceeds from sale of development
and trading properties 1,033 - -
Additions to trading and development
properties (686) (1,790) (4,901)
(Decrease) / increase in trade
and other payables (296) 134 (253)
Cash flows used in operations (5) (2,800) (6,349)
Tax received - - 38
Cash flows used in operating
activities (5) (2,800) (6,311)
------------ --------------------- -----------
Cash flows from investing activities
Additions to investment properties (7,737) (925) (1,369)
Proceeds from the sale of investment
property - 3,738 3,673
Finance income 25 120 187
Cash flows (used in) / generated
from investing activities (7,712) 2,933 2,491
------------ --------------------- -----------
Cash flows from financing activities
Purchase of own shares (476) (3,965) (3,965)
Cash flows used in financing
activities (476) (3,965) (3,965)
------------ --------------------- -----------
Net decrease in cash and cash
equivalents (8,193) (3,832) (7,785)
Cash and cash equivalents at
1 October 32,126 39,911 39,911
Cash and cash equivalents at
30 September 23,933 36,079 32,126
============ ===================== ===========
Notes to the interim results
1. General information
The Conygar Investment Company PLC ("the Company") is
incorporated in the United Kingdom and domiciled in England and
Wales, is registered at Companies House under registration number
04907617, listed on the AIM market of the London Stock Exchange and
limited by shares.
The financial information set out in this report covers the six
months to 31 March 2021, with comparative amounts shown for the six
months to 31 March 2020 and the year to 30 September 2020, and
includes the results and net assets of the Company and its
subsidiaries, together referred to as the Group.
Further information about the Group and Company can be found on
its website www.conygar.com.
2. Basis of preparation
The accounting policies used in preparing the condensed
financial information are consistent with those of the annual
financial statements for the year ended 30 September 2020 other
than the mandatory adoption of new standards, revisions and
interpretations that are applicable to accounting periods
commencing on or after 1 October 2020, as detailed in the annual
financial statements.
The condensed financial information for the six month period
ended 31 March 2021 and the six month period ended 31 March 2020
has been reviewed but not audited and does not constitute full
financial statements within the meaning of section 435 of the
Companies Act 2006.
The financial information for the year ended 30 September 2020
does not constitute the Group's statutory accounts for that period
but it is derived from those accounts. Statutory accounts for the
year ended 30 September 2020 have been delivered to the Registrar
of Companies. Saffery Champness LLP reported on those accounts,
their report was unqualified and did not contain statements under
section 498(2) or (3) of the Companies Act 2006.
The board of directors approved the above results on 10 May
2021.
Copies of the interim report may be obtained from the Company
Secretary, The Conygar Investment Company PLC, First Floor, Suite
3, 1 Duchess Street, London, W1W 6AN.
3. Segmental information
IFRS 8 "Operating Segments" requires the identification of the
Group's operating segments which are defined as being discrete
components of the Group's operations whose results are regularly
reviewed by the Board. The Group divides its business into the
following segments:
-- Investment properties held for capital appreciation, rental income or both; and,
-- Development and trading properties, which include sites and
developments under construction held for sale in the ordinary
course of business.
Balance sheet
31 Mar 31 Mar
21 20
Investment Development Group Investment Development Group
properties properties Other total properties properties Other total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Investment
properties 42,732 - - 42,732 16,400 - - 16,400
Development &
trading properties - 19,503 - 19,503 - 41,934 - 41,934
------- ------------ -------- -------- ------------ ------------ -------- --------
42,732 19,503 - 62,235 16,400 41,934 - 58,334
Other assets 1,205 256 24,056 25,517 1,196 265 36,536 37,997
------- ------------ -------- -------- ------------ ------------ -------- --------
Total assets 43,937 19,759 24,056 87,752 17,596 42,199 36,536 96,331
Liabilities (516) (48) (530) (1,094) (273) (228) (554) (1,055)
Net assets 43,421 19,711 23,526 86,658 17,323 41,971 35,982 95,276
======= ============ ======== ======== ============ ============ ======== ========
Revenue
Six months ended Year ended
31 Mar 31 Mar 30 Sept
2021 2020 2020
GBP'000 GBP'000 GBP'000
Investment properties 640 474 936
Development and trading properties 1,234 402 739
--------------- --------------- ------------
1,874 876 1,675
=============== =============== ============
4. Finance income and costs
Six months ended Year ended
31 Mar 31 Mar 30 Sept
2021 2020 2020
GBP'000 GBP'000 GBP'000
Bank interest receivable 25 120 187
=============== =============== ============
Interest cost under IFRS 16 1 - 5
=============== =============== ============
5. Dividends
No dividends were paid in the period ended 31 March 2021 (period
ended 31 March 2020: GBPnil; year ended 30 September 2020: GBPnil).
6. Loss per share
Loss per share is calculated as the loss attributable to
ordinary shareholders of the Company for the period ended 31 March
2021 of GBP1,368,000 (period ended 31 March 2020: loss of
GBP1,489,000; year ended 30 September 2020: loss of GBP7,955,000)
divided by the weighted average number of shares in issue
throughout the period of 53,569,832 (31 March 2020: 54,424,398; 30
September 2020: 54,007,994). There are no diluting amounts in
either the current or prior periods.
7. Investment properties
31 Mar 31 Mar 30 Sept
2021 2020 2020
GBP'000 GBP'000 GBP'000
At the start of the period 16,500 21,429 21,429
Additions 501 (196) 305
Disposals - (3,549) (3,512)
Revaluation deficit (1,151) (1,284) (1,722)
At the end of the period 15,850 16,400 16,500
======== ======== ========
As at 31 March 2021, Cross Hands was valued by Knight Frank LLP
in their capacity as external valuers. The valuation was prepared
on a fixed fee basis, independent of the property value and was
undertaken in accordance with the RICS Valuation - Global Standards
[incorporating the International Valuation Standards] effective 31
January 2020 on the basis of fair value, supported by reference to
market evidence of transaction prices for similar properties. It
assumes a willing buyer and a willing seller in an arm's length
transaction and reflects usual deductions in respect of purchaser's
costs and SDLT as applicable at the valuation date. The independent
valuer makes various assumptions including future rental income,
anticipated void costs and the appropriate discount rate or
yield.
The fair value of Cross Hands has been determined using an
income capitalisation technique whereby contracted rent and market
rental values are capitalised with a market capitalisation rate.
This technique is consistent with the principles in IFRS 13 and
uses significant unobservable inputs, such that the fair value has
been classified in all periods as Level 3 in the fair value
hierarchy as defined in IFRS 13. For Cross Hands, the key
unobservable inputs are the net initial yields and expiry void
periods. Net initial yields have been estimated for the individual
units at between 5.25% and 10.75% and expiry void periods are
projected at between 6 months and 24 months. The principal
sensitivity of measurement to variations in the significant
unobservable outputs is that decreases in net initial yields and
void periods will increase the fair value.
The historical cost of the Group's investment properties as at
31 March 2021 was GBP13,952,000 (31 March 2020: GBP12,863,000; 30
September 2020: GBP13,451,000).
The Group's revenue for the period ended 31 March 2021 includes
GBP804,000 derived from properties leased out under operating
leases (period ended 31 March 2020: GBP856,000; year ended 30
September 2020: GBP1,635,000).
8. Investment properties under construction
31 Mar 31 Mar 30 Sept
2021 2020 2020
GBP'000 GBP'000 GBP'000
At the start of the period 19,761 - -
Additions 7,121 - -
Transfer from trading properties - - 19,761
At the end of the period 26,882 - 19,761
======== ======== ========
Investment properties under construction comprise freehold land
and buildings at The Island Quarter, Nottingham which are held for
current or future development as investment properties and reported
on the balance sheet at cost.
The fair value of this property rests in the planned
developments, and is difficult to estimate pending confirmation of
designs and planning permissions, and hence, in accordance with IAS
40, has been measured at cost until either the fair value becomes
readily determinable or construction is complete.
9. Development and trading properties
31 Mar 31 Mar 30 Sept
2021 2020 2020
GBP'000 GBP'000 GBP'000
At the start of the period 19,952 39,999 39,999
Additions 513 1,872 5,325
Disposals (595) - -
Transfer to investment properties
under construction - - (19,761)
Development costs (written off) / written
back (367) 63 (5,611)
-------- -------- ----------
At the end of the period 19,503 41,934 19,952
======== ======== ==========
Development and trading properties are reported in the balance
sheet at the lower of cost and net realisable value. The net
realisable value of properties held for development requires an
assessment of the underlying assets using property appraisal
techniques and other valuation methods. Such estimates are
inherently subjective as they are made on assumptions which may not
prove to be accurate and which can only be determined in a sales
transaction.
Further details on progress for each of the development and
trading properties is set out in the Chairman's and Chief
Executive's statement.
10. Trade and other receivables
31 Mar 31 Mar 30 Sept
2021 2020 2020
GBP'000 GBP'000 GBP'000
Trade receivables 87 252 107
Other receivables 293 609 613
Prepayments and accrued income 1,073 987 935
1,453 1,848 1,655
======== ======== ========
Trade and other receivables are measured on initial recognition
at transaction cost, and are subsequently measured at amortised
cost using the effective interest rate method, less any impairment.
Impairment is calculated using an expected credit loss model.
11. Trade and other payables
31 Mar 31 Mar 30 Sept
2021 2020 2020
GBP'000 GBP'000 GBP'000
Social security and payroll taxes 56 68 56
Trade payables 685 243 611
Accruals and deferred income 254 694 548
995 1,005 1,215
======== ======== ========
Trade and other payables are recognised initially at fair value,
and are subsequently measured at amortised cost using the effective
interest rate method.
12. Provision for liabilities and charges
31 Mar 31 Mar 30 Sept
2021 2020 2020
GBP'000 GBP'000 GBP'000
Amounts payable from development profit - 50 -
======== ======== ========
The Group is party to a profit share agreement which would
become payable on the earliest of the disposal of its retail park
at Cross Hands or the date upon which the open market value of
Cross Hands is agreed between the parties on completion of the
development. The profit share provision has been calculated by
reference to the open market value of the property at each balance
sheet date after deducting applicable costs. As a result of the
reduction in the value of Cross Hands since 31 March 2020 no profit
share is payable as at 31 March 2021.
13. Net assets per share
Net assets per share is calculated as the net assets of the
Group divided by the number of shares in issue. There are no
diluting or adjusting amounts for the reported periods.
31 Mar 31 Mar 30 Sept
2021 2020 2020
GBP'000 GBP'000 GBP'000
Net assets 86,658 95,276 88,833
No. No. No.
Shares in issue 52,851,590 53,591,590 53,591,590
============= =========== ===========
Net assets per share 164.0p 177.8p 165.8p
============= =========== ===========
14. Key management compensation
Key management personnel have the authority and responsibility
for planning, directing and controlling the activities of the Group
and are considered to be the directors of the Company. Amounts paid
in respect of key management compensation were as follows:
Six months ended Year ended
31 Mar 31 Mar 30 Sept
2021 2020 2020
GBP'000 GBP'000 GBP'000
Short term employee benefits 430 881 1,329
============= ============== =========
Independent Review Report to The Conygar Investment Company
PLC
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six month period ended 31 March 2021 which comprises the
consolidated statement of comprehensive income, the consolidated
statement of changes in equity, the consolidated balance sheet, the
consolidated cash flow statement and the related notes. We have
read the other information contained in the half-yearly financial
report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
This report is made solely to the Company in accordance with the
terms of our engagement to assist the Company in meeting the
requirements of the AIM Rules ("the AIM Rules"). Our review has
been undertaken so that we might state to the Company those matters
we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the Company for our
review work, for this report, or for the conclusions we have
reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the AIM Rules.
As disclosed in note 2, the annual financial statements of the
Company are prepared in accordance with IFRS as adopted by the
European Union. The condensed set of financial statements included
in this half-yearly financial report has been prepared in
accordance with International Accounting Standard 34, "Interim
Financial Reporting," as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Group a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK) 2410, "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity" issued by the Auditing Practices Board for use in the
United Kingdom. A review of interim financial information consists
of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK) and consequently does not enable us to obtain assurance that
we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six month period ended
31 March 2021 is not prepared, in all material aspects, in
accordance with International Accounting Standard 34 as adopted by
the European Union and the AIM Rules.
Saffery Champness LLP
Chartered Accountants and Registered Auditors
London
10 May 2021
Notes:
(a) The maintenance and integrity of The Conygar Investment
Company PLC website is the responsibility of the directors; the
work carried out by the auditors does not involve consideration of
these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the
interim report since it was initially presented on the website.
(b) Legislation in the United Kingdom governing the presentation
and dissemination of financial information may differ from
legislation in other jurisdictions.
The directors of Conygar accept responsibility for the
information contained in this announcement. To the best knowledge
and belief of the directors of Conygar (who have taken all
reasonable care to ensure that such is the case), the information
contained in this announcement is in accordance with the facts and
does not omit anything likely to affect the import of such
information.
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END
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