RNS Number:2939D
Panther Securities PLC
24 September 2004
Interim Results
CHAIRMAN'S STATEMENT
Introduction
I am delighted to report on the interim figures for the six months to 30th June
2004. Pre tax profits amount to #1,947,000 compared to #1,407,000 for the same
period last year.
Rental income receivable was #4,650,000 as against #4,423,000 for the comparable
half year.
Eurocity Properties PLC
On 27th May 2004 we sold Eurocity (Crawley) Limited which was a wholly owned
subsidiary of Eurocity Properties PLC. The consideration was #750,000 in cash
plus shares and convertible loan stock valued at #650,000 in Real Estate
Investments PLC, a new AIM listed property company. The ordinary shares were
issued to us at the placing price of 10p each and the current market price is
13p per share. If sold at these values we would have recouped almost the entire
cost of Eurocity Properties PLC from one third of its assets and income.
Elektron PLC
In December 2003 we assisted Elektron PLC in the acquisition of the business of
Arcolectric PLC from the receiver by purchasing Arcolectric's freehold factories
in West Molesey, Surrey, and then leasing them to Elektron PLC. This property
transaction was a good deal in its own right. In addition, we provided #500,000
of equity capital at 5.5p per Elektron PLC share. Now that the two businesses
have been merged and are substantially profitable, Elektron's share price has
risen to reflect this and at approximately 15p per share justifies our
confidence in this transaction.
Wickford, Essex
For some years we have owned a factory estate in Wickford, Essex which was held
on a long lease at a low fixed ground rent from Basildon District Council. In
May we purchased the freehold at auction for approximately #650,000 including
costs. Whilst this expenditure produces little extra income the factory estate
is now freehold and the quality and value of the investment is improved.
Panther House/Gray's Inn Road/Churchills public house
Panther House, Mount Pleasant and 156/164 Grays Inn Road (even), London WC1 were
sold at auction in July. The figure achieved of #8,810,000 was at the top end of
our expectations. Churchills public house in Mount Pleasant was sold after the
auction at #940,000. Yardworth Limited, our wholly owned subsidiary, took a 5
year management lease (with an option to break at the end of the 2nd year) on
Panther House at #400,000 per annum which is mostly covered by income from
sub-licensees - of course we now have to pay for the use of our own offices.
Most shareholders will know that Panther House was the company's Head Office for
70 years, initially bought by the original Levers Optical Company for #35,000
out of funds raised when it went public in 1934 and, since my involvement with
the company in 1972, has been the subject of much effort on our part to maximise
its value. Initially by creating London's first business centre (making small
licensed units available at affordable terms), acquiring an adjoining leasehold,
then freehold interests, negotiating for 25 years with London Regional Transport
to acquire their part of the site and during the same period and onward trying
to negotiate the planning aspect of the site with those Mandarins of the Soviet
Socialist Republic of Camden, to little avail, but much frustration. The final
outcome was indeed successful for the years of effort and I wish the purchaser
good luck and more success than we had with those "Bureaucratic Terrorists" at
Camden.
Of course, the sales referred to in the previous two paragraphs are not
reflected in these half year figures.
On 21st June Panther acquired 15% of Hawtin PLC, an AIM quoted company (Portnard
Limited, one of my private companies, having previously acquired 14.5%). The
price paid in both instances was 13p per share. Hawtin PLC was previously a
conglomerate which had, in recent years, sold off all of its trading businesses
whilst retaining its former freehold factories as investments. It also holds 35
acres of land in Blackwood/Gwent, South Wales zoned for residential and
industrial use. The revalued book value of Hawtin PLC's net assets was 15p per
share. I have been appointed to its Board and hope it will prove a successful
investment for Panther.
Finance
Having drawn down the balance of our loan facility, and realised the Panther
House/Gray's Inn Road/Churchills complex we currently have approximately
#15,000,000 in cash available for investment. We are also in the process of
negotiating additional and improved facilities which will give us wider scope to
invest in any interesting and good value proposals that may become available to
us.
Dividends
We will be paying an interim dividend of 4p per share on 29th October 2004 and
it is the Board's intention to recommend an increased final dividend of not less
than 4.5p per share in due course.
Outlook
Whilst commercial property prices have been extremely resilient over the last
year, the residential market has begun to falter and I suspect will continue to
do so and thus will create a chain reaction slowing down general economic
activity. It is, however, in these times that our company is often able to
secure its most profitable investments. So, as always, I look forward to the
future with optimism and confidence.
INTERIM CONSOLIDATED RESULTS
for the six months ended 30th June 2004
Six months to Six months to Year ended
30th June 30th June 31st December
2004 2003 2003
(Unaudited) (Unaudited) (Audited)
#' 000 #' 000 #' 000
Turnover 4,679 4,741 9,791
Cost of sales (765) (894) (1,654)
-------- -------- --------
Gross profit 3,914 3,847 8,137
Administrative expenses (539) (609) (1,336)
-------- -------- --------
Operating profit 3,375 3,238 6,801
Income from participating
interests 50 (2) (67)
Income from current asset
investments 31 17 426
Profit on sale of subsidiary
subsidiary 149 - -
Amortisation of goodwill 221 - -
Profit on disposal of
investments - - (20)
Interest receivable 61 180 293
Interest payable (1,940) (2,026) (4,020)
-------- -------- --------
Profit on ordinary activities
before taxation 1,947 1,407 3,413
Taxation (453) (413) (880)
-------- -------- --------
Profit on ordinary activities
after taxation 1,494 994 2,533
Minority interests (2) 9 9
-------- -------- --------
Profit attributable to
members of the Parent
undertaking 1,492 1,003 2,542
Dividends (680) (850) (2,125)
-------- -------- --------
Retained profits for the
6 months 812 153 417
Transferred from revaluation
reserve 116 - -
Retained profit brought
forward 12,714 12,297 12,297
-------- -------- --------
Retained profit carried
forward 13,642 12,450 12,714
======== ======== ========
Earnings per share 8.8p 5.9p 15.0p
Dividend per share -
special - 5.0p 5.0p
Dividend per share -
interim 4.0p 3.5p 3.5p
Dividend per share -
final - - 4.0p
Notes:
1. Results
The six months results have been prepared on the historical cost basis modified
to include the revaluation of fixed asset land and buildings, although no
further revaluation has been undertaken on any part of the property portfolio
since results were last reported. They are unaudited and do not constitute
statutory accounts within the meaning of section 240 of the Companies Act 1985.
2. Accounts
The figures for the year to 31st December 2003 have been extracted from the
statutory accounts which have been reported on by the Group's auditors and have
been delivered to the Registrar of Companies. The auditor's report was
unqualified and did not contain any statement under section 237(2), (3) or (4)
of the Companies Act 1985.
3. Accounting policies
Accounting policies and presentation are consistent to previous periods.
4. Dividends
An interim dividend of 4p per ordinary share will be paid on 29th October 2004
to shareholders on the Register on 8th October 2004.
5. Earnings per share
Earnings per ordinary share have been calculated on profit attributable to
members of the holding company and on 16,998,151 (June 2003 - 16, 986,593)
ordinary shares being the weighted average number of ordinary shares in issue
throughout the six months ended 30th June 2004.
6. Copies of this report are to be sent to all shareholders and are available
from the Company's registered office at Panther House, 38 Mount Pleasant, London
WC1X 0AP.
CONSOLIDATED BALANCE SHEET
for the six months ended 30th June 2004
30th June 30th June 31st December
2004 2003 2003
(Unaudited) (Unaudited) (Audited)
#' 000 #' 000 #' 000
Fixed assets
Tangible assets 93,020 79,807 93,996
Negative goodwill (571) (791) (793)
Investments 2,388 288 223
-------- -------- --------
94,837 79,304 93,426
-------- -------- --------
Current assets
Stock 8,828 7,104 8,790
Current asset investments 1,600 945 1,297
Debtors 3,186 2,422 5,580
Cash at bank and in hand 2,094 9,230 2,444
-------- -------- --------
15,708 19,701 18,111
Current liabilities
Creditors:
Amounts falling due
within one year (6,175) (9,755) (5,767)
-------- -------- --------
Net current assets 9,533 9,946 12,344
-------- -------- --------
Total assets less
current liabilities 104,370 89,250 105,770
Creditors
Amounts falling due after
more than one year (53,362) (50,715) (55,576)
Minority interests (92) (94) (90)
-------- -------- --------
Net assets 50,916 38,441 50,104
======== ======== ========
Capital and reserves
Share capital 4,250 4,250 4,250
Revaluation reserve 29,355 18,072 29,471
Profit and loss account 13,642 12,450 12,714
Share premium account 2,886 2,886 2,886
Negative goodwill reserve 212 212 212
Capital redemption reserve 571 571 571
-------- -------- --------
Shareholders' funds 50,916 38,441 50,104
======== ======== ========
Net assets per share 299.5p 226.2p 294.8p
GROUP CASH FLOW STATEMENT
for the six months ended 30th June 2004
Six months to Six months to Year ended
30th June 30th June 31st December
2004 2003 2003
(Unaudited) (Unaudited) (Audited)
#' 000 #' 000 #' 000
Cash inflow from
operating activities 5,777 3,356 2,242
Returns on investments and
Servicing of finance
Interest received 61 180 293
Interest paid (1,940) (2,026) (4,020)
Net cash outflow from returns
on Investments and servicing
of finance (1,879) (1,846) (3,727)
Taxation
Corporate tax paid (171) (14) (1,097)
Capital expenditure and
Financial investment
Purchase of investments (1,797) (264) (2,026)
Sale of investments - - 1,746
Purchase of minority interest - - (267)
Purchase of other tangible
fixed assets (1,056) (44) (2,841)
Net cash outflow from capital
Expenditure and financial
investment (2,853) (308) (3,388)
Acquisitions and disposals
Sale of subsidiary undertaking 26 - -
Net cash inflow/(outflow)
from Acquisitions and
disposals 26 - -
Equity dividends paid (671) (1,435) (2,036)
-------- -------- --------
Cash inflow/(outflow) before
use of Liquid resources and
financing 229 (247) (8,006)
Financing
(Decrease)/increase in debt (577) (223) 750
Issue of ordinary share capital - 48 48
(577) (175) 798
-------- -------- --------
Decrease in cash (348) (422) (7,208)
======== ======== ========
NOTES TO GROUP CASH FLOW STATEMENT
for the six months ended 30th June 2004
1. Reconciliation of net cash flow to movement in net debt
Six months to Six months to Year ended
30th June 30th June 31st December
2004 2003 2003
(Unaudited) (Unaudited) (Audited)
#' 000 #' 000 #' 000
Decrease in cash in
the period (348) (422) (7,208)
Loans acquired
on acquisition 1,730 - -
Cash (outflow)/inflow
from increase in debt 577 223 (750)
-------- -------- --------
Change in net debt
arising from cash
flows 1,959 (199) (7,958)
Net debt at start of
period (53,977) (46,019) (46,019)
-------- -------- --------
Net debt at period end (52,018) (46,218) (53,977)
======== ======== ========
2. Analysis of net debt
At At
1st January Disposal 30th June
2004 Cash flow (excl cash) 2004
#' 000 #' 000 #'000 #' 000
Cash at bank and
in hand 2,444 (350) - 2,094
Overdrafts (1) 1 - -
-------- -------- -------- --------
2,443 (349) - 2,094
Debt due within
one year (844) 94 - (750)
Debt due after
one year (55,576) 484 1,730 (53,362)
-------- -------- -------- --------
(56,420) 578 1,730 (54,112)
-------- -------- -------- --------
(53,977) 229 1,730 (52,018)
======== ======== ======== ========
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