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RNS Number : 6926D
Caledonian Trust PLC
28 March 2011
28 March 2011
Caledonian Trust PLC
Unaudited Interim Results
for the six months ended 31 December 2011
Caledonian Trust PLC, the Edinburgh-based property investment
holding and development company, announces its unaudited interim
results for the six months ended 31 December 2011.
CHAIRMAN'S STATEMENT
Introduction
The Group made a pre-tax loss of GBP101,000 in the six months to
31 December 2010, compared with a profit of GBP145,000 last year.
The loss per share was 0.85p compared with a profit of 1.22p last
year and the NAV per share was 164.5p compared with 169.1p last
year. For the year to 30 June 2010 there was a loss of 2.47p and
the NAV was 165.4p. The investment property portfolio was revalued
by GBP215,000 at 31 December 2010. There were no sales of
properties in the period. Revenues and costs were similar to last
year. No dividend will be paid for the period.
Review of Activities
The Group has continued to concentrate on enhancing the value of
its development properties by working towards or gaining planning
consents. However, increasingly we are undertaking development
work, including bringing property to market, effecting improvements
and starting projects in order to preserve existing consents.
The reconversion of the basement to residential use at 57 North
Castle Street has been completed and the attractive two-bedroom
flat is now being marketed. We gained planning permission and
listed building consent for a similar refurbishment next door at 61
North Castle Street. The Group's other New Town property, 9 South
Charlotte Street, between Charlotte Square and Princes Street is
let to La Tasca for a further fifteen years, where a rent review is
due this year.
St Margaret's House, London Road, is our largest property in
Edinburgh. From 1 November 2010 the building has been wholly let to
the charity, Art's Complex, who have reconfigured and sub-let all
the spaces to over 250 "artists" and "artisans" and galleries.
There is currently a waiting list for space. Almost all the car
parking spaces are let to our neighbours in Meadowbank House,
Registers of Scotland.
In August 2009, after two years of planning work on a
"Development Brief", the City of Edinburgh Council adopted the
Brief, so providing an agreed development policy for the whole
area. Accordingly, we lodged an application in July 2009 for
Outline Planning Consent for 231,000ft(2) mixed use development of
residential and/or student accommodation, an hotel, and offices and
other commercial space. This proposal was approved in November,
subject to a Section 75 agreement which we expect to sign shortly.
The consented proposal allows for a street frontage to London Road
(A1) and direct vehicular access from it, together with an "at
grade" pedestrian access, a transformation from the current bland
appearance. Meanwhile the current refurbishment of the adjoining
Meadowbank House and the addition of modern offices and a reception
foyer entered directly off London Road will improve the amenity of
the area.
At Belford Road we have implemented consent for an office over
22,500ft(2) and fourteen car parking spaces. We also hold a consent
for a residential development over 20,500ft(2) together with twenty
integral car spaces. This consent has recently been extended, for a
further three years. We have had a simplified structure designed
which may afford considerable savings. This reappraisal has
indicated the likely benefits of a much more radical redesign which
is now being undertaken.
Our large development site at Waterloo, London SE1, has been
subject to several proposals and we have tried to develop it
together with the contiguous garage site with which there is
considerable marriage value. We now have our site under offer for
residential use, unqualified as to planning, but with a delayed
settlement subject to a small overage, if the adjacent site is
developed.
In Glasgow the M74 extension, which will pass very close by and
greatly improve the access to our small shopping parade in Scotland
Street and our 19,763ft(2) investment property at 100 West Street,
is now scheduled to open in three months' time. The West Street
property is due to be reviewed in May where, because of a minimum
fixed uplift, the rent will rise by a minimum of GBP33,925. The
tenants are to extend the showroom with a further six showroom
places for their Alfa Romeo franchise. Seven miles from Glasgow at
Gartshore, which occupies a strategic hub position two miles from
the M73/M80 junction, five miles from the M876/M80 junction and
seven miles from the M8 (via the M73) and three miles form three
mainline railway stations, we are promoting a 15 acre "Green Park"
site for business, hotel and leisure use.
At Ardpatrick on West Loch Tarbert we have just obtained
planning permission for two detached houses at the northern march
of the Estate. Other potential sites are being assessed. The South
Lodge which enjoys extensive sea views and has planning permission
to double its size and build on a two-car garage has been renovated
and will be marketed shortly. A 150m access road has been
constructed to Bay Lodge, a former gamekeeper's premises
overlooking Achadh-ChaorannBay, which has consent for residential
development and will be marketed shortly.
Limited development will start shortly or has started on three
very different sites in or around Edinburgh. At Brunstane in East
Edinburgh, we have very recently received planning permission to
provide parking places for the existing five stone-built two-storey
cottages. We intend to effect common repairs and to refurbish and
then sell the three unoccupied properties. At Wallyford,
Musselburgh, we expect to receive permission shortly to reconfigure
the site by replacing two detached houses with a terrace of four
houses to give an increased site capacity of ten houses totalling
12,469ft(2) . The foundations of two houses have been laid to
implement the consent. At Cockburnspath, on the A1 near Dunbar,
where we hold two separate consents encompassing 72 detached and
four semi-detached houses. The foundations of one house have been
laid to implement one of the consents.
Slow but steady progress continues to be made on our portfolio
of fifteen rural development opportunities, nine in Perthshire,
three in Fife, two in Argyll and Bute and one in East
Dunbartonshire. At Chance Inn Farmhouse consent was granted to
convert the integral garage into a semi-self-contained "guest
suite" and to upgrade the house, including adding an en-suite
bathroom, and this work is well advanced. We have just received
consent for three houses at Camghouran on Loch Rannoch. At
Ardonachie, just off the A9 north of Perth, restrictive conditions
on the access road to this development of ten houses over
16,490ft(2) has been lifted. We await expected consents for nine
houses over 19,325ft(2) at Larennie near St Andrews. Design work
continues for twelve houses at Frithfield near St Andrews.
Economic Prospects
GDP fell unexpectedly by 0.6% in the three months to December
2010, revised down from a previously estimated fall of 0.5%. On 13
January 2011 the NIESR had estimated that growth would be 0.6%
following growth of 0.7%, 1.1%, and 0.3% in the three previous
quarters of 2010 and of 0.5% in the last quarter of 2009 which
marked the end of the current recession. Three years have already
passed since the economy peaked in early 2008, and output is
currently 4.4% lower, the same level as was achieved in the first
quarter of 2006 five years ago and 8% below the trend level line
for the last two decades. The economy continues to be very weak
indeed.
0.5 percentage points of the Q4 2010 contraction have been
ascribed to the abnormally bad weather, an estimate impossible to
verify. Figures for Q4 normally use returns for October and
November to forecast December figures for the Q4 report. But in
2010 actual figures were collected for early December and when
those were used for the full December estimate they produced an
estimate 0.5 percentage points lower than the normal method: the
abnormally bad weather was adduced to have caused this 0.5
percentage point difference. Unsurprisingly, the sectors most
seriously affected were construction, hotels and restaurants,
distribution and business services and finance.
The NIESR estimates that growth resumed in January 2011 by 0.6
percentage points and by a further 0.3 percentage points in
February, more than unwinding the abnormal weather effect of
December 2010, but it concludes that the underlying growth rate of
the economy is below trend and that the output gap is widening.
Output is not expected to regain the early 2008 peak until 2013,
and if this occurs in Q2 2013, it implies an average growth rate of
1.8% pa when it will be five years since the recession started.
Surprisingly, the great depression of 1930-1934 lasted less than
four years! The NIESR's forecast is consistent with the latest
Economist's poll of forecasters which projects growth of only 1.6%
in 2011, a projection that has fallen in each of the last three
months, and of 2.0% in 2012.
Some other forecasts, all made before the most recent rise in
oil prices and the threatening disasters in Japan, are less
optimistic and lower than the OBR's forecast, published on 29
November 2010, of 1.8% growth in 2010 and 2.1% in 2011. For
example, Capital Economics forecast growth of 1.5% p.a. in 2011 and
in 2012 and over a third of those surveyed by the Treasury consider
growth will be less than 1.7% in 2011.
The failure of any established forecaster to forecast a
contraction in Q4 2010, or even an outcome near to it, undermines
confidence in most current forecasts which include the abnormal
economic effects of Government policy, although some economic
commentators warn of its potential dangers. Martin Wolf, writing in
the FT in November 2010, said: "... I am not as hawkish as Mr King
... yes I agree there are risks to cutting the fiscal deficit too
slowly ... there are also risks to cutting it too fast ..." And
"there are also large risks in having an inflexible plan. The UK
needs an adaptable plan ... that takes account of the huge
uncertainties that result from the fragility of the private
sector". Philip Stephens, also writing in the FT in December, says:
"not long ago these Treasury mandarins were sure the government
could spend without restraint - courtesy of soaring tax revenues
from financial services. Now they show all the zeal of the
religious convert in wielding the spending axe". Vince Cable calls
them 1930s "fiscal fundamentalists ... as in the 1930s they have
the Bank governor on their side, though that is hardly a
recommendation." The policy of the central banks in the US and the
UK was a major contributory factor to the length and depth of the
depression in the US, and to a lesser extent, in the UK.
( )
Inflation, or more particularly the reaction to control it, is a
major risk to growth. In February 2011, inflation reached 4.4%,
more than twice the Bank's official target, when the previous rise
to 4.0% prompted the Economist's 19 February by-line: "Inflation
rising to 4%; interest rates stuck at 0.5%; something has to give".
The Bank of England says "Inflation is likely to pick up to between
4% and 5% and to remain well above the 2% target throughout 2011".
In consequence, the financial markets in February indicated an
increased Bank rate of1.5% in Q2 2012 (0.9% November 2010) and 2.6%
in Q2 2013 (1.6% November 2010) - increases influenced by the Prime
Minister's publicised concerns over inflation!
Inflation is not damaging the economy currently nor are
expectations of higher future inflation becoming endemic as: "the
probability distribution of CPI inflation three years ahead shifted
upwards a little". The Governor in his speech at the Civic Centre
in Newcastle on 25 January 2011 correctly noted that inflation's
three causes were the rising price of imports, as a result of the
necessary and desirable depreciation of sterling in 2007 and 2008;
soaring dollar prices of energy; and the jumps in VAT. "Taken
together", he says "these three factors by themselves would account
for a remarkable 12% addition to the price level over four years".
Some of these increases should prove to be "one-offs", as VAT
almost certainly is, as the sterling devaluation is likely to be,
and as energy prices may be - pace recent events! Internal
inflation pressures are low as there is considerable excess
capacity, including record recent unemployment, the three-month
average earnings rose by just 2.1% in the year to November 2010,
and average unit labour costs have been falling since 2008. In
these circumstances monetary tightening to drive wage increases
even lower seems misplaced - a reflex action to a rise in inflation
for causes mostly outwith the control of the MPC and most likely to
subside, probably even before the full effect of any interest rate
rise had been achieved.
Monetary tightening would be a misplaced addition to the
gathering deficit and fiscal squeezes on an economy operating well
below capacity and which actually contracted in the last quarter.
VAT and tax increases and other price rises, which have already
reduced real take-home pay by about 12%, will result in a further
drop in real wages in 2011 to the level they were in 2005. In
addition to declining real household disposable income, the economy
will be damaged by constraints on public spending, continuing lower
housing activity, massive household indebtedness and low growth in
broad money and credit: not a happy mix! Savings rates have risen
recentlyand uncertainty indices gauging unemployment and financial
expectations have increased, especially amongst parts of the public
sector, and households' concerns about their future financial
situation are reported by the Bank: "back at levels reached during
the height of recession". These changes in mood will further
depress economic activity.
A savage Roman military punishment, mercifully meted out rarely,
was decimation, one in ten, incidentally the proportion proposed
for public sector job cuts.The Roman punishment required those
subject to decimation to be grouped in tens, and to draw lots for a
single short straw. The unlucky drawer was then put to death by the
other nine: it certainly puts possible redundancy into perspective!
Currently anxiety will affect a wide number in the public services,
but, come the cuts, all the "nines" will regain confidence.
The Government has held that all these contracting economic
influences will be largely offset by increased net trade and by
higher investment. Unfortunately, while exports have increased
recently by 25%, imports have also risen by 22%, giving only a very
modest increase in net demand. Significant increases in investment
are unlikely in a low-growth economy, especially when credit is
both rationed and expensive. I conclude that full implementation of
the Government's stated policies would be counter-productive.
The fiscal deficit is a residual sum, the difference between
relatively "fixed" expenditure and tax receipts. At the margin, tax
income varies at a rate several times that of marginal changes in
GNP - it is highly "geared" and a small fall in GNP translates into
a large rise in the deficit and vice versa. Dickens's Mr Micawber
implicitly understood the implications of small changes at the
margin! Martin Wolf, writing in the FT, has illustrated this
marginal effect. In the two fiscal years ended in 2010, nominal UK
GDP declined 1.4% but receipts fell by 5.0%. In property terms the
"gearing" is equivalent to 72% LTV, a 1% property valuation change
giving a 3.57% change in equity value. A further fall in GNP or a
lost opportunity to enlarge GNP translates into a much larger tax
receipt shortfall. The Chancellor would be well advised to nurture
the economic goose that lays the golden tax eggs.
Fortunately for Government policy the recent surges in oil and
commodity prices accompanied by the uprisings in the Middle East,
the disasters in Japan and the pressure of public opinion allow
them to make some policy changes as adjustments rather than "U"
turns. The Government is in a situation described variously by the
Prussian Marshall Helmuth von Moltke as "no plan survives contact
with the enemy" and "strategy is a system of expedients". However,
von Moltke's planning is usefully described as similar to a
contemporary "decision tree" with plans for each successive
dichotomy. The Chancellor's "contact" with the economy may
determine that changed tactics would be beneficial, and adjustments
can be made within overall policy constraints. Political values may
largely determine the level of government spending but how quickly
to attain that level is a pragmatic matter: as the Chinese leader
Deng Xiaoping said, "cross the 'river' by feeling for the stones in
the ford with your feet".
There is a wide range of possible economic outcomes. Continuing
economic growth is more likely than another recession, but it will
be at a slower rate than most official projections and the
depression will continue for at least two years. The major risks to
growth are an over-rapid contraction of the structural deficit and
an over-zealous interpretation of their remit by the MPC. Once the
current crisis has passed, enhanced long-term growth will depend on
liberalising the factors of production, eliminating oligopolies,
modifying the MPC's remit, restructuring the financial systems and
facilitating cultural change.
Property Prospects
Commercial property returned -22.8% in 2008, 2.2% in 2009 and
13.6% in 2010 when equities returned 13.5% and UK Gilts 6.5%. The
extent of the recovery in the commercial property market is
illustrated by the swing in the derivatives market which in January
2009 indicated a return of -36.0% for 2010,but in February 2010
indicated +10%, a swing of 72%. The All Property return in the
first half of 2010 was almost 10% as yields dropped from 6.09% to
5.79% but in the second half yields dropped only a further 0.08%
points, giving a second half return of 4.3%. The Office sector was
marginally better at 4.5%and the Industrial sector marginally worse
at 4.0%. Within the Office and Retail sectors performance varied
greatly between areas. Forecasts for 2011 are now marginally above
those made in December. The return based on derivatives for 2011 is
now 5.5%, up from the 4.6% previously. The IPF February mean
forecast is 5.8%, up from 5.2% in November but Colliers maintain
its forecast at 7.5%. For 2012 the return based on derivatives is
only 4.20%, but IPF forecast 8.7% and Colliers 10.6%.
House prices changed little in 2010, the precise outcome
depending on the methodology of the index compiler. Hometrack
surveys estate agents local prices and shows a 1.6% fall; Rightmove
uses an index of internet asking prices and shows a 0.4% rise; the
Halifax and the Nationwide use "mortgage prices" and show a fall of
1.6% and a rise of 0.4% respectively; the Land Registry compares
only houses previously sold and shows a 1.0% rise; the CLG uses a
sample of mortgage completion prices and shows a rise of 4.1%; and
LSL Acadametrics uses three successive samples of the Land Registry
figures, the final one covering 90% of all transactions. The second
sample covering 85% shows a rise of 2.20%. The LSL methodology is
undoubtedly the most comprehensive but is less up to date and only
covers England and Wales.
The stability in 2010 compares with large falls in 2008: 16.2%
HPI; 15.9% Nationwide and 10.8% Acadametrics: and rises in 2009:
5.6% HPI; 6.1% Nationwide and 4.2% Acadametrics. The peak to trough
HPI fall occurred between August 2007 GBP199,600 and April 2009
GBP154,490, a fall of 22.6%, or say 25% in real terms. The December
2010 HPI "Price" is GBP162,435, a fall of 18.6% or with RPI
inflation a real fall of 27.3%. Real falls in prices in the three
previous downturns were 37% (1989-1995), 38% (1973-1977) and 22.1%
(1952-54) a cycle where the recovery in real terms took ten
years!
A feature of 2010 has been the differences between regions and
house types. Within London three of the top boroughs by house price
growth, Knightsbridge and Chelsea, Kingston on Thames and Southwark
have achieved all-time property price highs. These three boroughs
together with Merton have grown by more than 10% over the three
months to January 2011. By contrast Tower Hamlets has fallen 1.8%
and four other boroughs have only nominal gains. In Greater London
prices overall increased last year by 5% to GBP385,386 higher than
the GBP375,857 achieved in February 2008, the height of the last
boom. Last year amongst house types detached houses have performed
best and flats worst.
In 2011 Nationwide and HPI expect "limited movement" and "a slow
drift down" respectively. Acadametrics expect that, outside London
and the South East, credit restrictions by lenders concerned about
the impact of fiscal tightening and the public sector redundancies
will restrict demand and lower prices. Capital Economics represent
an extreme view, forecasting falls of 10% in 2011 and in 2012.
Savills (Q1 2011) forecast that the mainstream market will fall
3.0% in 2011 and prime markets a lesser amount. In 2012 they expect
mainstream markets to fall a further 1.5%, but prime markets to
grow by 4% to 10%. Thereafter no further falls are expected,
although a large differential will be maintained between sectors of
differing qualities.
The key factors determining the overall UK Market will be fiscal
policy, monetary policy and credit rationing. If there is a
moderation of the proposed fiscal policy, and, if the MPC do not
raise interest rates shortly in response to non-domestic and
transitory factors, then economic growth should resume and
unemployment increases be contained. Therefore the supply of houses
from this distressed source should not increase. As building,
except in the South East, will continue only at very low levels,
the supply of new properties will be limited. Although demand will
be limited, primarily by credit rationing, as now, it should be
sufficient to maintain overall prices at or near current
levels.
Conclusion
We are enduring what is likely to be the longest documented
depression in history, longer than the "Great Depression" of the
1930s. The depth of the recession has been limited by the
intervention of the authorities, which, although originally late
and tentative, has been comprehensive and has proved effective in
returning the economy to growth. Barring exogenous shocks, such as
an all out war in the Middle East, the main variables determining
the length of the depression are the rate of reduction in the
structural deficit and the level of interest rates. Present
indications are that the level of these two variables may not be
optimal.
Notwithstanding current and prospective constraints there are
profitable trading opportunities. There are also opportunities to
acquire properties on favourable terms and we intend to construct
participation arrangements which will allow us to exploit our
market knowledge and planning skills. The continued reduction in
house construction, particularly of family homes, will reduce their
supply, while unfulfilled demand continues to increase. A large
proportion of our prospective sites are targeted at this
market.
In our existing portfolio most development properties are valued
at cost, usually based on existing use, and, when these sites
obtain consent and are then developed or sold, the considerable
upside value should be realised.
I D Lowe
Chairman 22 March 2011
For further information please contact:
Caledonian Trust plc
Douglas Lowe, Chairman and Chief Executive Officer Tel: 0131 220 0416
Mike Baynham, Finance Director Tel: 0131 220 0416
Execution Noble & Co Limited
John Riddell Tel: 0207 456 9191
Harry Stockdale
Consolidated income statement for the six months ended 31
December 2010
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Dec 31 Dec 30 June
2010 2009 2010
Note GBP000 GBP000 GBP000
Revenue from properties 355 360 697
Property charges (200) (179) (305)
____ ____ _____
Net rental and related income 155 181 392
____ ____ _____
Proceeds from sale of trading
properties - 50 370
Carrying value of trading
properties sold - (24) (347)
____ ____ _____
Profit from disposal of trading
properties - 26 23
____ ____ _____
Other income 31 55 81
____ ____ _____
Net other income 31 55 81
____ ____ _____
Administrative expenses (401) (463) (889)
____ ____ _____
Operating loss before
investment
property disposals and valuation
movements (215) (201) (393)
Profit on disposal of investment
properties - 101 48
Valuation gains on investment
properties 215 350 450
Valuation losses on investment
properties - - (205)
____ ____ ____
Operating profit/(loss) before
net financing costs - 250 (100)
Finance income - 1 1
Finance expenses (101) (106) (195)
____ ____ ____
(Loss)/profit before taxation (101) 145 (294)
Taxation 5 - - -
____ ____ ____
(Loss)/profit for the financial
period attributable to equity
holders of the company (101) 145 (294)
=== === ===
(Loss)/earnings per share
Basic (loss)/earnings per share
(pence) 4 (0.85p) 1.22p (2.47p)
Diluted (loss)/earnings per
share (pence) 4 (0.85p) 1.22p (2.47p)
Consolidated statement of recognised income and expenditure for
the six months ended 31 December 2010
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Dec 31 Dec 30 June
2010 2009 2010
GBP000 GBP000 GBP000
Change in the fair value
of equity securities available
for sale - - 3
____ ____ _____
Net profit/(loss) recognised
directly in equity - - 3
(Loss)/profit for the period (101) 145 (294)
____ ____ _____
Total recognised income
and expense for the period
attributable to equity holders
of the parent (101) 145 (291)
==== ==== ====
Consolidated balance sheet as at 31 December 2010
Unaudited Unaudited Audited
31 Dec 31 Dec 30 June
2010 2009 2010
Note GBP000 GBP000 GBP000
Non current assets
Investment properties 16,625 16,495 16,410
Plant and equipment etc 23 27 22
Investments 5 2 5
______ ______ ______
Total non-current assets 16,653 16,524 16,437
Current assets
Trading properties 11,000 11,119 10,891
Trade and other receivables 169 227 134
Cash and cash equivalents - 355 250
______ ______ ______
Total current assets 11,169 11,701 11,275
______ ______ ______
Total assets 27,822 28,225 27,712
______ ______ ______
Current liabilities
Trade and other payables (553) (562) (485)
Interest bearing loans and
borrowings (7,716) (3,598) (5,673)
______ ______ ______
(8,269) (4,160) (6,158)
Non current liabilities
Interest bearing loans and
borrowings - (3,975) (1,900)
______ ______ ______
- (3,975) (1,900)
______ ______ ______
Total liabilities (8,269) (8,135) (8,058)
______ ______ ______
Net assets 6 19,553 20,090 19,654
===== ===== =====
Equity
Issued share capital 7 2,377 2,377 2,377
Other reserves 2,920 2,920 2,920
Retained earnings 6 14,256 14,793 14,357
______ ______ ______
Total equity attributable
to equity holders of the
parent 6 19,553 20,090 19,654
===== ===== =====
Consolidated cash flow statement for the six months ended 31
December 2010
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Dec 31 Dec 30 June
2010 2009 2010
GBP000 GBP000 GBP000
(Loss)/profit for the period (101) 145 (294)
Adjustments
Profit on sale of investment
property - (101) (48)
Investment property valuation
movements (215) (350) (245)
Depreciation - - 12
Net finance expense 101 105 194
____ ____ ___
Operating cash flows before
movements
in working capital (215) (201) (381)
(Increase)/decrease in trading
properties (109) (87) 121
(Increase)/decrease in trade
and other receivables (35) (44) 73
Increase/(decrease) in trade
and other payables 57 (13) (110)
_____ _____ _____
Cash generated from operating
activities (302) (345) (297)
Interest paid (90) (120) (210)
Interest received - 1 1
_____ _____ _____
Cash flows from operating activities (392) (464) (506)
_____ _____ _____
Investing activities
Proceeds from sale of investment
property - 1,001 947
Purchases of plant and equipment (1) (1) (10)
_____ _____ _____
Cash flows from investing activities (1) 1,000 937
_____ _____ _____
Financing activities
Proceeds from/(repayments of)
from long term 100 (1,087) (1,087)
borrowings
_____ _____ _____
Cash flows from financing activities 100 (1,087) (1,087)
_____ _____ _____
Net (decrease)/increase in cash
and
cash equivalents (293) (551) (656)
Cash and cash equivalents at
beginning
of period 250 906 906
_____ _____ _____
Cash and cash equivalents at
end of period (43) 355 250
==== ==== ====
Notes to the accounts
1 This interim statement for the six month period to 31 December
2010 is unaudited and was approved by the directors on 22 March
2011. The information set out does not constitute statutory
accounts within the meaning of Section 434 of the Companies Act
2006.
2 Going concern basis
The directors have taken account of the unusual circumstances
prevailing in the property market at the current time and recognise
that the current economic climate creates uncertainty over the
timing and amount of realisation of cashflows, in particular in
respect of the sale of certain assets. However, after making
enquiries, the Directors have a reasonable expectation that the
company and the group have adequate resources to continue in
operational existence for the foreseeable future. Accordingly, they
continue to adopt the going concern basis in preparing this interim
statement.
3 Accounting policies
Caledonian Trust PLC (the "company") is a company domiciled in
the United Kingdom.
Basis of preparation
The interim statement is prepared applying the recognition and
measurement requirements of IFRSs as adopted by the EU. The company
has elected not to prepare the interim statement in accordance with
IAS 34 as adopted by the EU.
The interim statement does not include all the information
required for full annual financial statements and should be read in
conjunction with the financial statements of the company as at and
for the year ended 30 June 2010 which were prepared in accordance
with IFRSs as adopted by the EU.
The preparation of the interim statement requires the directors
to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and
liabilities, income and expenses. Actual results differ from these
estimates. The accounting policies applied by the company in this
interim statement are the same as those applied in its financial
statements as at and for the year ended 30 June 2010. Copies of the
Annual Report for 2010 are available from the Company's head office
by applying to the Company Secretary.
These policies are expected to apply to the accounts for the
year ending 30 June 2011.
The comparative figures for the financial year ended 30 June
2010 are not the Company's statutory accounts for that financial
year. Those accounts have been reported on by the company's
auditors and delivered to the Registrar of Companies. The report of
the auditors was (i) unqualified, (ii) did not include a reference
to any matters to which the auditors 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.
4 (Loss)/earnings per share
Basic (loss)/earnings per share is calculated by dividing the
(loss)/earnings attributable to ordinary shareholders by the
weighted average number of ordinary shares outstanding during the
period as follows:
6 months 6 months Year
ended ended ended
31 Dec 31 Dec 30 June
2010 2009 2010
GBP000 GBP000 GBP000
(Loss)/profitfor financial
period (101) 145 (294)
=== === ===
No. No. No.
Weighted average no. of shares:
For basic earnings per share
and for diluted
earnings per share 11,882,923 11,882,923 11,882,923
======== ======== ========
Basic (loss)/earnings per
share (0.85p) 1.22p (2.47p)
Diluted (loss)/earnings per
share (0.85p) 1.22p (2.47p)
5 Taxation
Taxation for the 6 months ended 31 December 2010 is based on the
effective rate of taxation which is estimated to apply to the year
ending 30 June 2011. Due to the losses incurred there is no charge
for the period.
In the case of deferred tax in relation to investment property
revaluation surpluses, the base cost used is historical book cost
and includes allowances or deductions which may be available to
reduce the actual tax liability which would crystallise in the
event of a disposal of the asset. At 31 December 2010 there is a
deferred tax asset which is not recognised in these accounts.
6 Capital and reserves Share Other Retained
capital reserves earnings Total
GBP000 GBP000 GBP000 GBP000
At 1 July 2010 2,377 2,920 14,357 19,654
Total recognised income
and expense - - (101) (101)
_____ _____ ______ ______
At 31 December 2010 2,377 2,920 14,256 19,553
==== ==== ===== =====
At 1 July 2009 2,377 2,920 14,648 19,945
Total recognised income
and expense - - 145 145
_____ _____ ______ ______
At 31 December 2009 2,377 2,920 14,793 20,090
==== ==== ===== =====
At 1 July 2009 2,377 2,920 14,648 19,945
Total recognised income
and expense - - (291) (291)
_____ _____ ______ ______
At 30 June 2010 2,377 2,920 14,357 19,654
==== ==== ===== =====
The other reserves consist of the share premium account and
the capital redemption reserve.
Issued share
7 capital
31 December 31 December
2010 2009 30 June 2010
No GBP000 No. GBP000 No. GBP000
000 000 000
Authorised
Ordinary shares
of 20p each 20,000 4,000 20,000 4,000 20,000 4,000
===== ==== ===== ==== ===== ====
Issued and
fully paid
Ordinary shares
of 20p each 11,883 2,377 11,883 2,377 11,883 2,377
===== ==== ===== ==== ===== ====
This information is provided by RNS
The company news service from the London Stock Exchange
END
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