TIDMTCSC
RNS Number : 7361Y
Town Centre Securities PLC
09 September 2009
For immediate release
Wednesday, 9 September 2009
TOWN CENTRE SECURITIES PLC
Preliminary results for the year ended 30 June 2009
Town Centre Securities PLC ("TCS") the Leeds based property investment and
development company, today announces its preliminary results, for the year ended
30 June 2009.
Financial highlights
· Profit after tax
- Underlying* profit GBP7.9m (2008: GBP7.2m)
- Statutory loss GBP111.6m (2008: loss GBP11.2m), includes impact of property
revaluation deficit of GBP107.7m (2008: deficit GBP75.3m), of which GBP76.7m was
reported at the interim stage
· Earnings per share
- Underlying* earnings per share 14.8p (2008: 13.5p)
- Basic losses per share 210.3p (2008: loss 21.0p)
· Net assets per share
- Net asset value per share 202p (2008: 420p)
- Triple net asset value per share 264p (2008: 476p)
· Investment property portfolio valuation of GBP258.5m reflecting a 26.1% fall
on a like for like basis
· Dividends per share
- Proposed final dividend of 5.4p (2008: 5.4p)
- Final dividend to be paid as a PID of 4.1p and an ordinary dividend of 1.3p
- Total dividend per share of 8.15p (2008: 8.15p)
· Funding
- Post year end buy in of GBP43.8m of debenture stock at a cost of GBP34.0m
reducing debt by GBP9.0m, net of costs
- Optimised TCSs debt profile by both reducing debt and finance charges whilst
providing greater flexibility in respect of the funding of the business going
forward.
*See notes 7 and 8 for reconciliation to statutory profit
Operational highlights:
* Property sales of GBP55.7m and further sales of GBP11.0m post year end
* Major refurbishment projects completed: - Merrion Centre, Leeds - Deansgate, Manchester - West Park, Harrogate
* Key lettings achieved at Merrion Centre, Leeds; Deansgate Manchester; and
Piccadilly, Manchester.
Commenting on the results, Chairman and Chief Executive Edward Ziff, said:
"We acted quickly and decisively ahead of a tumultuous year for the commercial
property industry.
"The early sale of properties and the reduction of costs in our business,
however unwelcome, have enabled us to improve underlying profit, hold the
dividend and work well within our financing covenants.
"Together with the debenture buy back completed in August, these actions put us
in a strong position to take advantage of the opportunities which I believe will
emerge as the market begins to stabilise."
A presentation for analysts will be held at 9.45am for 10.00am at
the offices of Smithfield, 10 Aldersgate Street, London EC1A 4HJ
Print resolution images are available for the media to view and download from
www.vismedia.co.uk
For further information, please contact:
Town Centre Securities PLC
www.tcs-plc.com
Edward Ziff, Chairman and Chief Executive 0113 222 1234
Bob Bigley, Finance Director
Richard Lewis, Group Property Director
Smithfield
Reg Hoare / Rebecca Whitehead 0207 360 4900
Chairman's and Chief Executive's Statement
Results
The results for the year reflect a strong income performance from our portfolio
when set against the background of an unprecedented fall in property values.
Underlying profit after tax (excluding property valuation and other one off
movements) is GBP7.9m, compared with GBP7.2m in the prior year, which the Board
continues to believe is the best measure of the Company's performance.
Turmoil in the financial markets and global recession have had an inevitable
impact on property values and it is with no surprise that we report a property
revaluation deficit of GBP107.7m (2008: deficit GBP75.3m) representing a
like for like fall of 26.1%. The majority of the deficit on revaluation
(GBP76.7m) was reported with the interim results in February 2009. The deficit
is the principal component of a reported statutory loss after tax of GBP111.6m,
compared with a loss of GBP11.2m in 2008. The comparative loss in 2008 included
a property valuation deficit of GBP75.3m and a tax credit arising on our
conversion to a REIT of GBP56.4m. Basic losses per share were 210.3p (2008:
losses of 21.0p per share) and underlying earnings per share increased to 14.8p
(2008:13.5p).
Net assets have fallen to GBP107.2m (202p per share) at 30 June 2009 from
GBP223.0m (420p per share) at 30 June 2008. Triple net asset value has fallen to
GBP140.5m (264p per share) from GBP253.0m at 30 June 2008 (467p per share).
The Board reacted quickly to the threat to its financial position posed by
falling values and a key element of the Board's strategy for the short term has
been the sale of properties which were most exposed. Total disposal proceeds
were GBP55.7m: proceeds from wholly owned properties were GBP47.0m, although the
sales have given rise to a loss of GBP9.2m on disposal. In addition we also sold
our half share in Sheffield station car park for GBP8.7m, realising a profit of
GBP0.9m after two years of ownership.
Gross revenue has increased by 3.4% to GBP27.3m from GBP26.4m. Rental income
from investment properties has fallen marginally which in a period that has
included significant property sales is a reflection of success in rent reviews
and new lettings. Car park income has increased 13.0% to GBP4.7m and after
including an increase in car park expenses, property expenses overall have been
significantly reduced. Administrative expenses have fallen by 7.4%, led by a
reduction of 9.6% in remuneration. There were higher than expected legal and
professional costs which are not expected to recur in the current year and we
plan for considerable further savings in 2009/10.
We have incurred an exceptional loss of GBP3.4m on the sale of listed
investments. There is a further loss of GBP0.8m from our share of joint venture
investments, a combination of a profitable underlying trading position and
losses arising on revaluation.
Dividends
Your Board is recommending a final dividend of 5.4p (2008: 5.4p) per ordinary
share, holding the total dividend for the year at 8.15p, the same level as last
year.
The final dividend will comprise an ordinary dividend of 1.3p per share and for
the first time, TCS will be making a Property Income Distribution ('PID') of
4.1p per share. Under REIT rules, 90% of the profits of the property rental
business, after certain deductions, must be distributed to shareholders as a
PID. The deductions (principally capital allowances) in respect of 2008/09 have
reduced the profits of the property rental business to a point where a PID is
required of 4.1p per share.
The final ordinary dividend and the PID will be paid on 4 January 2010 to
shareholders on the register on 4 December 2009.
Debenture tender offer
Following the year end Royal Bank of Scotland plc ("RBS"), at the Company's
request, made a tender offer to buy in part of our 2031 mortgage debenture
stock.
The offer was completed on 4 August 2009 and RBS sold the GBP43.8m of debenture
stock it had acquired in the tender, at an average price of 77.6p, to the
Company at a cost of GBP34.0m. The purchase was funded out of our existing
banking facilities and the debenture stock was immediately cancelled.
The impact of the tender (net of expenses) has been to reduce the Company's
debt, and increase its net asset value, by GBP9.0m (17p per share). This brings
the additional benefits of a reduced interest cost in the future and
significantly extended headroom in the Company's loan to value covenants,
providing us with far greater flexibility in respect of funding of the
business.
Funding
The Company has significantly reduced debt during the year following property
disposals. Net debt at 30 June 2009 was GBP166.5m (2008: GBP212.4m) comprising
gross debt (mortgage debenture and bank borrowings) of GBP185.3m, set off
against GBP18.8m of cash held as security within the debenture.
Following the year end, the tender offer for the debenture, together with
property sales of GBP11.0m and two small acquisitions for a total of GBP1.8m,
reduced our net borrowings, on a pro forma basis, to GBP148.2m at 8 September
2009 and has enabled the release of cash held as security.
Our approach to borrowing remains prudent, operating well within our facilities
and covenant terms. Our term loan facilities are now GBP85m (previously GBP102m)
with our banking partners, Lloyds Banking Group and Royal Bank of Scotland, with
maturity dates from 2012 to 2014. Our GBP106.2m debenture (following the tender
offer) is fixed until 2031 at 5.375%.
Capital commitments to fund existing contracts are not material and the Company
will only enter new development or refurbishment projects after rigorous
analysis of funding and project risk.
Strategy
Over three years ago we recognised the high level of valuations across the
property market and set about a strategy of asset disposals which looked to be
exposed. During the intervening period property sales of GBP169m have materially
strengthened our balance sheet and proved a vital platform for the robust
financial position of the business today.
As a result, the Company is now in a position to take advantage of opportunities
which present themselves.
We continue, nevertheless, to focus all our resources on protecting rental
income and capital values and reduce risk through active management in what
remain far from easy market conditions.
Property Portfolio
Our main focus throughout the year has been on sales and preserving value. The
programme of sales has been strategically driven and has realised proceeds of
GBP55.7m. In a property market where values have been falling rapidly for two
years, TCS has actively sought to sell property in advance of falls in value
with a view to strengthening the balance sheet and strengthening the overall
quality of the portfolio. The sales have been predominantly where we have
believed values to be most exposed. We have sold properties in York and Leeds
city centres, and our out of town retail park in Kings Lynn, where we felt the
values we could achieve more than reflected their long term prospects.
The refurbishment projects at the Merrion Centre, Leeds; Deansgate, Manchester;
and West Park, Harrogate have been completed. Progress on lettings at Town
Centre House has been slow but there remains good interest. The final let at
Deansgate to Ben Brasil was completed enabling the sale of the upper floors in
July 2009. At West Park, Harrogate, the two retail units have been let and the
five apartments and four town houses have virtually all sold since the year end,
indicating the strength of this market town.
We have taken the first very important step in re-establishing the value at our
retail store at Piccadilly Basin, Manchester where Aldi have signed an agreement
to lease 17,000 sq ft and will open for trade in November 2009. We continue to
examine exciting ideas for the rest of the property.
Occupancy levels at 30 June 2009 were 92% (30 June 2008: 97%). Voids are
principally represented by the retail store at Piccadilly Basin (accounting for
4.4%) and the refurbished Town Centre House (1.3%).
Rent collection has continued to be satisfactory. At the June 2009 quarter days
over 97.5% of the rent due was collected within seven days. Our bad debt
experience remains limited and better than our expectations.
As I have reported previously, the Eastgate Quarters, Leeds retail scheme
remains an important development for the city but patience will be required by
all stakeholders in order to deliver it in the future.
Car Parks
Town Centre Car Parks has enjoyed a year of further growth. City Centre car
parking has proved remarkably resilient in a difficult year and the progress of
the 1,650 space multi-storey car park at Clarence Dock, Leeds has been
pleasing.
Car parking is unlikely to remain unaffected by market conditions but we are
confident of maintaining a good level of performance. Our total car park
ownership is 4,000 spaces and we are seeking opportunities through ownership and
management to grow our business and leverage the skills and experience we can
bring to car parking.
Board Changes
During the year there were several board changes involving our non-executive
directors. In April we appointed Howard Stanton as a non-executive director.
Howard is a certified accountant and currently holds non-executive directorships
with Delek Global Real Estate plc, O Twelve Estates Limited, Anglo Scottish
Properties and a number of other private companies. Howard was formerly
Chairman and previously Managing Director of Allied London Properties plc.
Howard's extensive experience of both finance and the property sector has
already proved most valuable and has brought a new dimension to the TCS Board.
In April, Robin Smith, who had been a non-executive director since 1999, stepped
down from the Board and in June, Clive Lewis, who had been a director since
1994, also retired. On behalf of the Company I would like to express thanks to
them both for their contribution, support and advice that has been invaluable to
TCS over many years.
Outlook
We have been through the most challenging year that I can ever remember for
commercial property. Nevertheless I remain optimistic for the continued long
term success of our business.
As our portfolio is predominantly retail, I am concerned as to the continued
possibility of tenancy failures and downward pressures on rental value.
However, our exposure to "value for money" retailing stands us in good stead,
particularly at the Merrion Centre which has shown excellent strength and growth
in income throughout the year. In addition we are well protected by having no
one tenant with more than three premises. We understand the challenges facing
our portfolio; our wealth of experience in asset management means we face those
challenges with confidence.
A prudent approach to balance sheet management has left TCS in a strong
position. As the climate shows signs of stabilising we are looking selectively
at opportunities to acquire stock but we will also continue to sell assets that
do not fit our long term strategy. Although it is too early to move forward with
development projects, I remain optimistic as to the potential of our development
sites and our robust position will enable us to pursue development when the time
is right.
Finally, I would like to thank all my colleagues at TCS. This has been an
unusual and extended period of challenge and their continued hard work, loyalty
and drive has been invaluable.
Edward Ziff
Chairman and Chief Executive
Consolidated Income Statement
Year ended 30 June 2009
+----------------------------------------------------+-------+-----------+------------+
| | | 2009 | 2008 |
+----------------------------------------------------+-------+-----------+------------+
| | Notes | GBP000 | GBP000 |
+----------------------------------------------------+-------+-----------+------------+
| Gross revenue | 2 | 27,286 | 26,382 |
+----------------------------------------------------+-------+-----------+------------+
| Property expenses | 3 | (3,707) | (4,835) |
+----------------------------------------------------+-------+-----------+------------+
| Net revenue | | 23,579 | 21,547 |
+----------------------------------------------------+-------+-----------+------------+
| Administrative expenses | 4 | (5,744) | (6,204) |
+----------------------------------------------------+-------+-----------+------------+
| Other income | 5 | 501 | 504 |
+----------------------------------------------------+-------+-----------+------------+
| (Loss)/profit on disposal of investment properties | | (9,178) | 3,246 |
+----------------------------------------------------+-------+-----------+------------+
| Profit/(loss) on disposal of other fixed assets | | 21 | (18) |
+----------------------------------------------------+-------+-----------+------------+
| Loss on disposal of shares in subsidiary | | - | (191) |
| undertaking | | | |
+----------------------------------------------------+-------+-----------+------------+
| Profit on disposal of shares in joint venture | | 860 | - |
+----------------------------------------------------+-------+-----------+------------+
| Loss on disposal of listed investments | | (3,374) | (773) |
+----------------------------------------------------+-------+-----------+------------+
| Valuation movement on investment properties | 10 | (107,733) | (75,327) |
+----------------------------------------------------+-------+-----------+------------+
| Operating loss | | (101,068) | (57,216) |
+----------------------------------------------------+-------+-----------+------------+
| Finance income | | 303 | 821 |
+----------------------------------------------------+-------+-----------+------------+
| Finance costs | | (11,012) | (11,170) |
+----------------------------------------------------+-------+-----------+------------+
| Share of post tax losses from joint ventures | | (835) | (61) |
+----------------------------------------------------+-------+-----------+------------+
| Loss before taxation | | (112,612) | (67,626) |
+----------------------------------------------------+-------+-----------+------------+
| Taxation credit | 6 | 1,048 | 56,395 |
+----------------------------------------------------+-------+-----------+------------+
| Loss for the year attributable to equity holders | | (111,564) | (11,231) |
| of the Company | | | |
+----------------------------------------------------+-------+-----------+------------+
| | | | |
+----------------------------------------------------+-------+-----------+------------+
| (Loss)/earnings per ordinary share of 25p each: | 7 | | |
+----------------------------------------------------+-------+-----------+------------+
| Basic | | (210.3p) | (21.0p) |
+----------------------------------------------------+-------+-----------+------------+
| Diluted | | (210.2p) | (21.0p) |
+----------------------------------------------------+-------+-----------+------------+
| Underlying (non?GAAP measures) | | 14.8p | 13.5p |
+----------------------------------------------------+-------+-----------+------------+
| | | | |
+----------------------------------------------------+-------+-----------+------------+
| Dividends per ordinary share: | 9 | | |
+----------------------------------------------------+-------+-----------+------------+
| Paid during the period | | 8.15p | 8.15p |
+----------------------------------------------------+-------+-----------+------------+
| Proposed | | 5.40p | 5.40p |
+----------------------------------------------------+-------+-----------+------------+
Consolidated statement of recognised income and expense
Year ended 30 June 2009
+----------------------------------------------------+-------+-----------+------------+
| | | 2009 | 2008 |
+----------------------------------------------------+-------+-----------+------------+
| | Notes | GBP000 | GBP000 |
+----------------------------------------------------+-------+-----------+------------+
| Loss for the financial year | | (111,564) | (11,231) |
+----------------------------------------------------+-------+-----------+------------+
| Revaluation (losses)/gains on cash flow hedge | 13 | (780) | 158 |
+----------------------------------------------------+-------+-----------+------------+
| Revaluation losses on other investments | 13 | (2,269) | (1,925) |
+----------------------------------------------------+-------+-----------+------------+
| Total recognised expense for the year | | (114,613) | (12,998) |
+----------------------------------------------------+-------+-----------+------------+
Consolidated Balance Sheet
Year ended 30 June 2009
+------------------------------------------------+--------+-------------+------------+
| | | 2009 | 2008 |
+------------------------------------------------+--------+-------------+------------+
| | Notes | GBP000 | GBP000 |
+------------------------------------------------+--------+-------------+------------+
| Non?current assets | | | |
+------------------------------------------------+--------+-------------+------------+
| Investment properties | 10 | 258,535 | 422,413 |
| | | | |
+------------------------------------------------+--------+-------------+------------+
| Property, plant and equipment | 10 | 15,024 | 16,358 |
| | | | |
+------------------------------------------------+--------+-------------+------------+
| Investments in joint ventures | | 2,562 | 15,156 |
+------------------------------------------------+--------+-------------+------------+
| Unamortised tenant lease incentives | | 1,276 | 892 |
+------------------------------------------------+--------+-------------+------------+
| Fair value of derivative | | - | 158 |
+------------------------------------------------+--------+-------------+------------+
| Total non?current assets | | 277,397 | 454,977 |
+------------------------------------------------+--------+-------------+------------+
| Current assets | | | |
+------------------------------------------------+--------+-------------+------------+
| Investments | | 509 | 3,730 |
+------------------------------------------------+--------+-------------+------------+
| Non-current assets held for sale | | 11,700 | - |
+------------------------------------------------+--------+-------------+------------+
| Trade and other receivables | | 3,533 | 3,865 |
+------------------------------------------------+--------+-------------+------------+
| Restricted cash | 11 | 18,825 | - |
+------------------------------------------------+--------+-------------+------------+
| Total current assets | | 34,567 | 7,595 |
+------------------------------------------------+--------+-------------+------------+
| Total assets | | 311,964 | 462,572 |
+------------------------------------------------+--------+-------------+------------+
| Current liabilities | | | |
+------------------------------------------------+--------+-------------+------------+
| Financial liabilities - borrowings | | (8,681) | (4,720) |
+------------------------------------------------+--------+-------------+------------+
| Trade and other payables | | (11,693) | (16,446) |
+------------------------------------------------+--------+-------------+------------+
| Fair value of derivative | | (622) | - |
+------------------------------------------------+--------+-------------+------------+
| Current tax liabilities | | (3,205) | (4,431) |
+------------------------------------------------+--------+-------------+------------+
| Total current liabilities | | (24,201) | (25,597) |
+------------------------------------------------+--------+-------------+------------+
| Net current assets/(liabilities) | | 10,366 | (18,002) |
+------------------------------------------------+--------+-------------+------------+
| Non?current liabilities | | | |
+------------------------------------------------+--------+-------------+------------+
| Non?current tax liabilities | | (3,907) | (6,326) |
+------------------------------------------------+--------+-------------+------------+
| Financial liabilities - borrowings | | (176,654) | (207,638) |
+------------------------------------------------+--------+-------------+------------+
| Total non?current liabilities | | (180,561) | (213,964) |
+------------------------------------------------+--------+-------------+------------+
| Total liabilities | | (204,762) | (239,561) |
+------------------------------------------------+--------+-------------+------------+
| Net assets | | 107,202 | 223,011 |
+------------------------------------------------+--------+-------------+------------+
| | | | |
+------------------------------------------------+--------+-------------+------------+
| Shareholders' equity | | | |
+------------------------------------------------+--------+-------------+------------+
| Called up share capital | 12 | 13,287 | 13,287 |
| | | | |
+------------------------------------------------+--------+-------------+------------+
| Share premium account | | 185 | 185 |
+------------------------------------------------+--------+-------------+------------+
| Other reserves | | (63) | 717 |
+------------------------------------------------+--------+-------------+------------+
| Retained earnings | | 93,793 | 208,822 |
+------------------------------------------------+--------+-------------+------------+
| Total equity | 13 | 107,202 | 223,011 |
+------------------------------------------------+--------+-------------+------------+
| | | | |
+------------------------------------------------+--------+-------------+------------+
| Net assets per share | | 202p | 420p |
+------------------------------------------------+--------+-------------+------------+
Consolidated Cash Flow Statement
Year ended 30 June 2009
+----------------------------------------+-------+--+--------+----------+--+--------+----------+
| | | | 2009 | | 2008 |
+----------------------------------------+-------+--+-------------------+--+-------------------+
| | Notes | | GBP000 | GBP000 | | GBP000 | GBP000 |
+----------------------------------------+-------+--+--------+----------+--+--------+----------+
| Cash flows from operating activities | | | | | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Cash generated from operations | 14 | | 12,262 | | 17,038 |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Interest paid | | | (11,023) | | (12,558) |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Interest received | | | 64 | | 162 |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Tax received/(paid) | | | 13 | | (519) |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Net cash generated from operations | | | 1,316 | | 4,123 |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Cash flows from investing activities | | | | | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Purchases and refurbishment of | | (10,614) | | (32,193) | |
| investment properties | | | | | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Property development | | (647) | | (10,422) | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Purchases of plant and equipment | | (412) | | (275) | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Purchase of investments | | - | | (4,035) | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Proceeds from sale of investment | | 47,023 | | 34,546 | |
| properties | | | | | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Proceeds from sale of shares in joint | | 3,366 | | - | |
| venture | | | | | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Proceeds from sale of shares in | | - | | 2,360 | |
| subsidiary undertaking | | | | | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Proceeds from sale of property, plant | | 197 | | 102 | |
| and equipment | | | | | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Proceeds from sale of investments | | 716 | | 9,422 | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Dividends received from joint venture | | 100 | | 100 | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Repayment of /(loan to) joint ventures | | 9,153 | | (1,857) | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Net cash generated from/(used in) | | | 48,882 | | (2,252) |
| investing activities | | | | | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Cash flows from financing activities | | | | | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Proceeds from issue of share capital | | - | | 50 | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Proceeds from other non-current | | - | | 8,000 | |
| borrowings | | | | | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Repayment of other non-current | | (31,000) | | - | |
| borrowings | | | | | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Restricted cash held against debenture | 11 | (18,825) | | - | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Re-purchase of share capital | | - | | (4,415) | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Dividends paid to shareholders | | (4,334) | | (4,334) | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Net cash used in financing activities | | | (54,159) | | (699) |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Net (decrease)/increase in cash and | | | (3,961) | | 1,172 |
| cash equivalents | | | | | |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Cash and cash equivalents at 1 July | | | (4,720) | | (5,892) |
+----------------------------------------+-------+-----------+----------+-----------+----------+
| Cash and cash equivalents at 30 June | | | (8,681) | | (4,720) |
+----------------------------------------+-------+--+--------+----------+--+--------+----------+
The cash flow statement should be read in conjunction with Note 14.
Notes to preliminary statement
Year ended 30 June 2009
Basis of preparation
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 30 June 2009 or 2008 but is derived from
those accounts. Statutory accounts for 2008 have been delivered to the registrar
of companies, and those for 2009 will be delivered in due course. The auditors
have reported on those accounts; their reports were (i) unqualified, and (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 237 (2) or (3) of the Companies Act 1985 in respect of
the accounts for 2008 nor a statement under section 498 (2) or (3) of the
Companies Act 2006 in respect of the accounts for 2009.
This preliminary announcement does not constitute the Group's annual report and
statutory accounts.
The financial information included in this preliminary announcement does not
include all the disclosures required by IFRS and accordingly it does not itself
comply with IFRS.
The accounting policies are consistent with those of the annual financial
statements for the year ended 30 June 2008, as disclosed in those financial
statements.
1. Segmental analysis
A business segment is a group of assets and operations engaged in providing
products or services that are subject to risks and returns that are different
from those of other business segments.
A geographical segment is engaged in providing products or services within a
particular economic environment that are subject to risks and returns that are
different from those of segments operating in other economic environments.
The Group's primary segment is business and the Group operates in two business
segments; comprising property investment and development, and car park
operations. The Group's operations are performed wholly in the United Kingdom.
Segment assets
+---------------------------------------------------------+-------------+----------+
| | 2009 | 2008 |
+---------------------------------------------------------+-------------+----------+
| | GBP000 | GBP000 |
+---------------------------------------------------------+-------------+----------+
| Property rental | 298,606 | 438,543 |
+---------------------------------------------------------+-------------+----------+
| Car park operations | 13,358 | 24,029 |
+---------------------------------------------------------+-------------+----------+
| | 311,964 | 462,572 |
+---------------------------------------------------------+-------------+----------+
Segment liabilities
+---------------------------------------------------------+------------+----------+
| | 2009 | 2008 |
+---------------------------------------------------------+------------+----------+
| | GBP000 | GBP000 |
+---------------------------------------------------------+------------+----------+
| Property rental | 205,941 | 239,397 |
+---------------------------------------------------------+------------+----------+
| Car park operations | (1,179)* | 164 |
+---------------------------------------------------------+------------+----------+
| | 204,762 | 239,561 |
+---------------------------------------------------------+------------+----------+
*Car park business had positive cash balances, which reduced group bank
borrowings to consolidated balance sheet figure
Segmental results
+------------------------------------+-----------+------------+-----------+----+-----+------------+----------+
| | 2009 | | 2008 |
+------------------------------------+------------------------------------+----+-----------------------------+
| | Property | Car | | Property | Car | |
| | | park | | | park | |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| | rental | Operations | Total | rental | Operations | Total |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| Gross revenue | 22,577 | 4,709 | 27,286 | 22,214 | 4,168 | 26,382 |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| Property expenses | (1,713) | (1,994) | (3,707) | (3,123) | (1,712) | (4,835) |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| Net revenue | 20,864 | 2,715 | 23,579 | 19,091 | 2,456 | 21,547 |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| Administrative expenses | (5,686) | (58) | (5,744) | (6,157) | (47) | (6,204) |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| Other income | 501 | - | 501 | 504 | - | 504 |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| Valuation movement on investment | (104,995) | (2,738) | (107,733) | (75,327) | - | (75,327) |
| properties | | | | | | |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| Profit on disposal of shares in | - | 860 | 860 | - | - | - |
| joint venture | | | | | | |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| Other exceptional items | (12,531) | - | (12,531) | 2,264 | - | 2,264 |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| Operating (loss)/profit | (101,847) | 779 | (101,068) | (59,625) | 2,409 | (57,216) |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| Finance income | 234 | 69 | 303 | 556 | 265 | 821 |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| Finance costs | (11,012) | - | (11,012) | (11,170) | - | (11,170) |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| Share of post tax (losses)/profits | (850) | 15 | (835) | (682) | 621 | (61) |
| from joint ventures | | | | | | |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| (Loss)/profit before taxation | (113,475) | 863 | (112,612) | (70,921) | 3,295 | (67,626) |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| Taxation credit/(charge) | 1,097 | (49) | 1,048 | 56,530 | (135) | 56,395 |
+------------------------------------+-----------+------------+-----------+----------+------------+----------+
| (Loss)/profit for the year | (112,378) | 814 | (111,564) | (14,391) | 3,160 | (11,231) |
+------------------------------------+-----------+------------+-----------+----+-----+------------+----------+
2. Revenue
+--------------------------------------------------+------------------------------------------+---------------+
| | 2009 | 2008 |
+--------------------------------------------------+------------------------------------------+---------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+------------------------------------------+---------------+
| Rental income from investment properties | 22,577 | 22,748 |
+--------------------------------------------------+------------------------------------------+---------------+
| Income from car park activities | 4,709 | 4,168 |
+--------------------------------------------------+------------------------------------------+---------------+
| Non-recurring items: | - | (534) |
| - Accelerated amortisation of tenant lease | | |
| incentive | | |
+--------------------------------------------------+------------------------------------------+---------------+
| | 27,286 | 26,382 |
+--------------------------------------------------+------------------------------------------+---------------+
3. Property expenses
+--------------------------------------------------+--------------------------------------------+---------------+
| | 2009 | 2008 |
+--------------------------------------------------+--------------------------------------------+---------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+--------------------------------------------+---------------+
| Irrecoverable property costs | 1,163 | 1,384 |
+--------------------------------------------------+--------------------------------------------+---------------+
| Legal and professional fees | 400 | 944 |
+--------------------------------------------------+--------------------------------------------+---------------+
| Car park expenses | 1,892 | 1,400 |
+--------------------------------------------------+--------------------------------------------+---------------+
| Depreciation | 102 | 111 |
+--------------------------------------------------+--------------------------------------------+---------------+
| Other | 71 | 71 |
+--------------------------------------------------+--------------------------------------------+---------------+
| Non-recurring items: | 353 | _ |
| - Exceptional lease premiums paid | | |
+--------------------------------------------------+--------------------------------------------+---------------+
| - (Release of)/provision for void costs arising | (274) | 724 |
| from tenant administration | | |
+--------------------------------------------------+--------------------------------------------+---------------+
| - Abortive acquisition costs | _ | 201 |
+--------------------------------------------------+--------------------------------------------+---------------+
| | 3,707 | 4,835 |
+--------------------------------------------------+--------------------------------------------+---------------+
4. Administrative expenses
+--------------------------------------------------+---------------+------------+------------+
| | 2009 | 2008 |
+--------------------------------------------------+---------------+------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+---------------+------------+
| Remuneration | 3,824 | 4,232 | |
+--------------------------------------------------+---------------+------------+------------+
| Motor and travel expenses | 223 | 297 | |
+--------------------------------------------------+---------------+------------+------------+
| Legal and professional fees | 743 | 394 | |
+--------------------------------------------------+---------------+------------+------------+
| Depreciation | 137 | 213 | |
+--------------------------------------------------+---------------+------------+------------+
| Charitable donations | 258 | 108 | |
+--------------------------------------------------+---------------+------------+------------+
| IT costs | 108 | 118 | |
+--------------------------------------------------+---------------+------------+------------+
| Other | 451 | 560 | |
+--------------------------------------------------+---------------+------------+------------+
| Non-recurring items: | - | 282 | |
| - Director's severance agreement | | | |
+--------------------------------------------------+---------------+------------+------------+
| | 5,744 | 6,204 | |
+--------------------------------------------------+---------------+------------+------------+
5. Other income
+-----------------------------------------------------+------------+------------+------------+
| | 2009 | 2008 |
+-----------------------------------------------------+------------+------------+
| | GBP000 | GBP000 |
+-----------------------------------------------------+------------+------------+
| Commission received | 123 | 59 | |
+-----------------------------------------------------+------------+------------+------------+
| Dividends received | 35 | 61 | |
+-----------------------------------------------------+------------+------------+------------+
| Management fees receivable | 162 | 125 | |
+-----------------------------------------------------+------------+------------+------------+
| Dilapidations receipts and income relating to lease | 72 | 216 | |
| premiums | | | |
+-----------------------------------------------------+------------+------------+------------+
| Other | 109 | 43 | |
+-----------------------------------------------------+------------+------------+------------+
| | 501 | 504 | |
+-----------------------------------------------------+------------+------------+------------+
6. Taxation
+-------------------------------------------------+----------------+------------+
| | 2009 | 2008 |
+-------------------------------------------------+----------------+------------+
| | GBP000 | GBP000 |
+-------------------------------------------------+----------------+------------+
| Analysis of credit in period | | |
+-------------------------------------------------+----------------+------------+
| Current tax | | |
+-------------------------------------------------+----------------+------------+
| - current year | 170 | 169 |
+-------------------------------------------------+----------------+------------+
| - adjustment in respect of prior year | (1,218)* | (343) |
+-------------------------------------------------+----------------+------------+
| REIT conversion charge | - | 9,723 |
+-------------------------------------------------+----------------+------------+
| Total current tax | (1,048) | 9,549 |
+-------------------------------------------------+----------------+------------+
| Deferred tax | | |
+-------------------------------------------------+----------------+------------+
| - adjustment in respect of prior year | - | (20) |
+-------------------------------------------------+----------------+------------+
| Released on conversion to REIT | - | (65,924) |
+-------------------------------------------------+----------------+------------+
| Total deferred tax | - | (65,944) |
+-------------------------------------------------+----------------+------------+
| Total taxation | (1,048) | (56,395) |
+-------------------------------------------------+----------------+------------+
*Of the total adjustment, GBP1,012,000 relates to the release of tax provisions
made in previous years.
7. Earnings per share
+-----------------------------------------+-----------+----------+----------+-+--------+----------+----------+--------+
| | 2009 | | 2008 |
+-----------------------------------------+---------------------------------+-+------------------------------+
| | | Weighted | | | Weighted | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| | | average | (Loss)/ | | average | (Loss)/ |
| | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| | (Loss)/ | number | earnings | (Loss)/ | number | earnings |
| | | of | | | of | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| | earnings | shares | per | earnings | shares | per |
| | | | share | | | share |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| | GBP000 | 000 | Pence | GBP000 | 000 | Pence |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Basic EPS | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Loss and loss per share | (111,564) | 53,062 | (210.3) | (11,231) | 53,464 | (21.0) |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Effect of dilutive securities | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Options | - | 4 | - | - | 24 | - |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Diluted EPS | (111,564) | 53,066 | (210.2) | (11,231) | 53,488 | (21.0) |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Basic EPS | (111,564) | 53,062 | (210.3) | (11,231) | 53,464 | (21.0) |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| REIT conversion charge and associated | - | - | - | 9,723 | - | 18.2 |
| costs | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Release of deferred tax provision on | - | - | - | (65,924) | - | (123.3) |
| conversion to REIT | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Release of exceptional tax provision | (1,012) | - | (1.9) | - | - | - | |
| relating to prior years | | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+--------+
| Loss/(profit) on disposal of properties | 9,178 | - | 17.3 | (3,246) | - | (6.1) |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Loss on disposal of listed investments | 3,374 | - | 6.4 | 773 | - | 1.4 |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Loss on disposal of shares in | - | - | - | 191 | - | 0.4 |
| subsidiary undertaking | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Profit on disposal of shares in joint | (860) | - | (1.6) | - | - | - |
| venture | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Revaluation movement on investment | 107,733 | - | 203.0 | 75,327 | - | 140.9 |
| properties | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Revaluation movement on investment | 927 | - | 1.7 | (169) | - | (0.3) |
| properties in joint ventures | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Exceptional lease premiums | 353 | - | 0.7 | - | - | - |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| (Release of)/provision for tenant | (274) | - | (0.5) | 1,258 | - | 2.4 |
| administration | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Director severance agreement | - | - | - | 282 | - | 0.5 |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Abortive acquisition costs | - | - | - | 201 | - | 0.4 |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Underlying EPS | 7,855 | 53,062 | 14.8 | 7,185 | 53,464 | 13.5 |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Diluted EPS | (111,564) | 53,066 | (210.2) | (11,231) | 53,488 | (21.0) |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| REIT conversion charge and associated | - | - | - | 9,723 | - | 18.2 |
| costs | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Release of deferred tax provision on | - | - | - | (65,924) | - | (123.3) |
| conversion to REIT | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Release of exceptional tax provision | (1,012) | - | (1.9) | - | - | - | |
| relating to prior years | | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+--------+
| Loss/(profit) on disposal of properties | 9,178 | - | 17.3 | (3,246) | - | (6.1) |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Loss on disposal of listed investments | 3,374 | - | 6.3 | 773 | - | 1.4 |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Loss on disposal of shares in | - | - | - | 191 | - | 0.4 |
| subsidiary undertaking | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Profit on disposal of shares in joint | (860) | - | (1.6) | - | - | - |
| venture | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Revaluation movement on investment | 107,733 | - | 203.0 | 75,327 | - | 140.8 |
| properties | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Revaluation movement on investment | 927 | - | 1.7 | (169) | - | (0.3) |
| properties in joint ventures | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Exceptional lease premiums | 353 | - | 0.7 | - | - | - |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| (Release of)/provision for tenant | (274) | - | (0.5) | 1,258 | - | 2.4 |
| administration | | | | | | |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Director severance agreement | - | - | - | 282 | - | 0.5 |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Abortive acquisition costs | - | - | - | 201 | - | 0.4 |
+-----------------------------------------+-----------+----------+----------+----------+----------+----------+
| Diluted underlying EPS | 7,855 | 53,066 | 14.8 | 7,185 | 53,488 | 13.4 |
+-----------------------------------------+-----------+----------+----------+-+--------+----------+----------+--------+
Underlying earnings and earnings per share have been disclosed in order that the
effects of disposal losses, revaluation movements and other non-recurring items
can be fully appreciated.
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares in issue
during the year, excluding those held in the employee share trust which are
treated as cancelled.
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares. The Group has three classes of dilutive potential ordinary shares: those
under the Executive Share Option Plan, the Share Incentive Plan and the Save As
You Earn Scheme.
8. Underlying profit
To assist shareholders in understanding the underlying results and compare to
those results in previous accounting periods, adjustments made to loss before
taxation are:
+--------------------------------------------------------+-----------+-------------+
| | 2009 | 2008 |
+--------------------------------------------------------+-----------+-------------+
| | GBP000 | GBP000 |
+--------------------------------------------------------+-----------+-------------+
| Loss before taxation | (112,612) | (67,626) |
+--------------------------------------------------------+-----------+-------------+
| Less: (release of)/provision for tenant administration | (274) | 1,258 |
+--------------------------------------------------------+-----------+-------------+
| Less: (profit)/loss on disposal of other fixed assets | (21) | 18 |
+--------------------------------------------------------+-----------+-------------+
| Less: profit on disposal of shares in joint venture | (860) | - |
+--------------------------------------------------------+-----------+-------------+
| Add: loss on disposal of shares in subsidiary | - | 191 |
| undertaking | | |
+--------------------------------------------------------+-----------+-------------+
| Add: loss/(profit) on disposal of investment | 9,178 | (3,246) |
| properties | | |
+--------------------------------------------------------+-----------+-------------+
| Add: revaluation deficit - Group | 107,733 | 75,327 |
+--------------------------------------------------------+-----------+-------------+
| Add: revaluation deficit/(surplus) - joint ventures | 927 | (169) |
+--------------------------------------------------------+-----------+-------------+
| Add: loss on disposal of listed investments | 3,374 | 773 |
+--------------------------------------------------------+-----------+-------------+
| Add: Director's severance package | - | 282 |
+--------------------------------------------------------+-----------+-------------+
| Add: abortive acquisition costs | - | 201 |
+--------------------------------------------------------+-----------+-------------+
| Add: exceptional surrender premium | 353 | - |
+--------------------------------------------------------+-----------+-------------+
| Add: tax on joint ventures | 30 | 16 |
+--------------------------------------------------------+-----------+-------------+
| Underlying profit | 7,828 | 7,025 |
+--------------------------------------------------------+-----------+-------------+
9. Dividends paid
+--------------------------------------------------------+------------+------------+
| | 2009 | 2008 |
+--------------------------------------------------------+------------+------------+
| | GBP000 | GBP000 |
+--------------------------------------------------------+------------+------------+
| 2007 final paid: 5.4p per 25p share | - | 2,870 |
+--------------------------------------------------------+------------+------------+
| 2008 interim paid: 2.75p per 25p share | - | 1,462 |
+--------------------------------------------------------+------------+------------+
| 2008 final paid: 5.4p per 25p share | 2,870 | - |
+--------------------------------------------------------+------------+------------+
| 2009 interim paid: 2.75p per 25p share | 1,462 | - |
+--------------------------------------------------------+------------+------------+
| | 4,332 | 4,332 |
+--------------------------------------------------------+------------+------------+
The Directors are proposing a final dividend in respect of the financial year
ending 30 June 2009 of 5.4p per share, which will absorb an
estimated GBP2,870,000 of shareholders' funds. This dividend will comprise an
ordinary dividend of 1.3p per share and a Property Income Distribution of 4.1p
per share. These payments will be paid on 4 January 2010 to shareholders who are
on the register of members on 4 December 2009.
10. Tangible fixed assets
(a) Investment properties
+-------------------------------------------+-----------+------------+------------+
| | | Long | |
+-------------------------------------------+-----------+------------+------------+
| | Freehold | leasehold | Total |
+-------------------------------------------+-----------+------------+------------+
| | GBP000 | GBP000 | GBP000 |
+-------------------------------------------+-----------+------------+------------+
| Valuation at 1 July 2007 | 443,139 | 40,100 | 483,239 |
+-------------------------------------------+-----------+------------+------------+
| Acquisitions | 18,906 | 549 | 19,455 |
+-------------------------------------------+-----------+------------+------------+
| Investment property refurbishment | 12,528 | 6 | 12,534 |
+-------------------------------------------+-----------+------------+------------+
| Disposals | (13,350) | (20,500) | (33,850) |
+-------------------------------------------+-----------+------------+------------+
| Decrease in value on revaluation | (74,867) | (460) | (75,327) |
+-------------------------------------------+-----------+------------+------------+
| Transfer from leasehold to freehold | (2) | 2 | - |
+-------------------------------------------+-----------+------------+------------+
| Transfer from development to investment | 16,362 | - | 16,362 |
| properties | | | |
+-------------------------------------------+-----------+------------+------------+
| Valuation at 30 June 2008 | 402,716 | 19,697 | 422,413 |
+-------------------------------------------+-----------+------------+------------+
| Valuation at 1 July 2008 | 402,716 | 19,697 | 422,413 |
+-------------------------------------------+-----------+------------+------------+
| Investment property refurbishment | 9,966 | 169 | 10,135 |
+-------------------------------------------+-----------+------------+------------+
| Disposals | (55,345) | (856) | (56,201) |
+-------------------------------------------+-----------+------------+------------+
| Decrease in value on revaluation | (102,622) | (3,490) | (106,112) |
+-------------------------------------------+-----------+------------+------------+
| Transfer to non-current assets held for | (11,700) | - | (11,700) |
| sale | | | |
+-------------------------------------------+-----------+------------+------------+
| Valuation at 30 June 2009 | 243,015 | 15,520 | 258,535 |
+-------------------------------------------+-----------+------------+------------+
Certain investment properties including operational car parks have been revalued
as at 30 June 2009 on the basis of open market value by Jones Lang LaSalle/CB
Richard Ellis at GBP265,905,000 (2008: GBP401,072,000) in accordance with the
Royal Institution of Chartered Surveyors Appraisal and Investment Manual.
Certain other freehold properties have been valued at GBP4,330,000 by the
Directors (2008: GBP21,341,000).
The directors' valuation of residential property acquired for potential
development and industrial property is supported by market evidence available as
at 30 June 2009.
Investment properties are analysed as follows:
+----------------------------------------------------------+----------+------------+
| | 2009 | 2008 |
+----------------------------------------------------------+----------+------------+
| | GBP000 | GBP000 |
+----------------------------------------------------------+----------+------------+
| Investment property (externally valued) | 265,905 | 401,072 |
+----------------------------------------------------------+----------+------------+
| Less: externally valued properties transferred to | (11,700) | - |
| current assets | | |
+----------------------------------------------------------+----------+------------+
| Operational car parks (included in externally valued in | - | 15,538 |
| 2009) | | |
+----------------------------------------------------------+----------+------------+
| Residential property acquired for potential development | 3,804 | 5,127 |
+----------------------------------------------------------+----------+------------+
| Industrial property | 526 | 676 |
+----------------------------------------------------------+----------+------------+
| | 258,535 | 422,413 |
+----------------------------------------------------------+----------+------------+
10 Tangible fixed assets continued
(b) Property, plant and equipment
Development properties
+--------------------------------------------------------------------+------------+
| | |
+--------------------------------------------------------------------+------------+
| | GBP000 |
+--------------------------------------------------------------------+------------+
| Cost at 1 July 2007 | 21,140 |
+--------------------------------------------------------------------+------------+
| Additions | 10,937 |
+--------------------------------------------------------------------+------------+
| Transfer from development to investment properties | (16,362) |
+--------------------------------------------------------------------+------------+
| Cost at 30 June 2008 | 15,715 |
+--------------------------------------------------------------------+------------+
| Cost at 1 July 2008 | 15,715 |
+--------------------------------------------------------------------+------------+
| Additions | 294 |
+--------------------------------------------------------------------+------------+
| Decrease in value on revaluation | (1,620) |
+--------------------------------------------------------------------+------------+
| Cost at 30 June 2009 | 14,389 |
+--------------------------------------------------------------------+------------+
Fixtures, equipment and motor vehicles
+----------------------------------------------------------+----------+--------------+
| | | Accumulated |
+----------------------------------------------------------+----------+--------------+
| | Cost | depreciation |
+----------------------------------------------------------+----------+--------------+
| | GBP000 | GBP000 |
+----------------------------------------------------------+----------+--------------+
| At 1 July 2007 | 2,400 | 1,588 |
+----------------------------------------------------------+----------+--------------+
| Additions | 275 | - |
+----------------------------------------------------------+----------+--------------+
| Disposals | (220) | (100) |
+----------------------------------------------------------+----------+--------------+
| Depreciation | - | 324 |
+----------------------------------------------------------+----------+--------------+
| At 30 June 2008 | 2,455 | 1,812 |
+----------------------------------------------------------+----------+--------------+
| Net book value at 30 June 2008 | | 643 |
+----------------------------------------------------------+----------+--------------+
| At 1 July 2008 | 2,455 | 1,812 |
+----------------------------------------------------------+----------+--------------+
| Additions | 412 | - |
+----------------------------------------------------------+----------+--------------+
| Disposals | (431) | (255) |
+----------------------------------------------------------+----------+--------------+
| Depreciation | - | 244 |
+----------------------------------------------------------+----------+--------------+
| At 30 June 2009 | 2,436 | 1,801 |
+----------------------------------------------------------+----------+--------------+
| Net book value at 30 June 2009 | | 635 |
+----------------------------------------------------------+----------+--------------+
Total property, plant and equipment
+------------------------------------------+--------------------------------------+
| | Total |
+------------------------------------------+--------------------------------------+
| | GBP000 |
+------------------------------------------+--------------------------------------+
| At 30 June 2008 | 16,358 |
+------------------------------------------+--------------------------------------+
| At 30 June 2009 | 15,024 |
+------------------------------------------+--------------------------------------+
The net book value of property, plant and equipment includes GBP0.7m (2008:
GBP1.4m) in respect of capitalised borrowing costs.
11. Restricted cash
At the balance sheet date, GBP18.8m cash was held as security against the
debenture, following the disposal of certain charged properties. As a result of
the post balance sheet debenture stock re-purchase the funds have been
released.
12. Called up equity share capital
Authorised
164,879,000 (30 June 2008: 164,879,000) ordinary shares of 25p each. Nominal
value of authorised share capital is GBP41,219,750 (2008: GBP41,219,750)
Issued and fully paid
+--------------------------------------------------------------+----------+-----------+
| | Number | Nominal |
+--------------------------------------------------------------+----------+-----------+
| | of | Value |
| | shares | |
+--------------------------------------------------------------+----------+-----------+
| | GBP000 | GBP000 |
+--------------------------------------------------------------+----------+-----------+
| At 1 July 2008 | 53,149 | 13,287 |
+--------------------------------------------------------------+----------+-----------+
| At 30 June 2009 | 53,149 | 13,287 |
+--------------------------------------------------------------+----------+-----------+
13. Statement of changes in shareholders' equity
+-------------------------------------------------------------+-----------+----------+
| | 2009 | 2008 |
+-------------------------------------------------------------+-----------+----------+
| | GBP000 | GBP000 |
+-------------------------------------------------------------+-----------+----------+
| Loss for the period | (111,564) | (11,231) |
+-------------------------------------------------------------+-----------+----------+
| Dividends | (4,332) | (4,332) |
+-------------------------------------------------------------+-----------+----------+
| Retained loss for the year | (115,896) | (15,563) |
+-------------------------------------------------------------+-----------+----------+
| Other adjustments | 6 | - |
+-------------------------------------------------------------+-----------+----------+
| Arising on purchases and cancellation of own shares | - | (4,021) |
+-------------------------------------------------------------+-----------+----------+
| Surplus on revaluation of own shares held | - | 60 |
+-------------------------------------------------------------+-----------+----------+
| Cash flow hedge - fair value (loss)/gain in year | (780) | 158 |
+-------------------------------------------------------------+-----------+----------+
| New share capital subscribed | - | 50 |
+-------------------------------------------------------------+-----------+----------+
| Deficit on revaluation of investments | (2,269) | (1,925) |
+-------------------------------------------------------------+-----------+----------+
| Reversal of historic deficit/(surplus) on revaluation of | 3,130 | (34) |
| investments recognised in loss in period | | |
+-------------------------------------------------------------+-----------+----------+
| Net decrease in shareholders' equity | (115,809) | (21,275) |
+-------------------------------------------------------------+-----------+----------+
| Opening shareholders' equity | 223,011 | 244,286 |
+-------------------------------------------------------------+-----------+----------+
| Closing shareholders' equity | 107,202 | 223,011 |
+-------------------------------------------------------------+-----------+----------+
14. Cash flow from operating activities
+-------------------------------------------------------+------------------+----------+
| | 2009 | 2008 |
+-------------------------------------------------------+------------------+----------+
| | GBP000 | GBP000 |
+-------------------------------------------------------+------------------+----------+
| Loss for the financial year | (111,564) | (11,231) |
+-------------------------------------------------------+------------------+----------+
| Adjustments for: | | |
+-------------------------------------------------------+------------------+----------+
| Tax | (1,048) | (56,395) |
+-------------------------------------------------------+------------------+----------+
| Depreciation | 244 | 324 |
+-------------------------------------------------------+------------------+----------+
| Loss/(profit) on disposal of investment properties | 9,178 | (3,246) |
+-------------------------------------------------------+------------------+----------+
| Loss on disposal of subsidiary undertaking | - | 191 |
+-------------------------------------------------------+------------------+----------+
| Profit on disposal of shares in joint venture | (860) | - |
+-------------------------------------------------------+------------------+----------+
| Realised (gains)/losses on disposal of property, | (21) | 18 |
| plant and equipment | | |
+-------------------------------------------------------+------------------+----------+
| Realised losses on disposal of listed investments | 3,374 | 773 |
+-------------------------------------------------------+------------------+----------+
| Finance income | (303) | (821) |
+-------------------------------------------------------+------------------+----------+
| Finance expense | 11,012 | 11,170 |
+-------------------------------------------------------+------------------+----------+
| Share of joint venture losses after tax | 835 | 61 |
+-------------------------------------------------------+------------------+----------+
| Movement in revaluation of investment properties | 107,733 | 75,327 |
+-------------------------------------------------------+------------------+----------+
| (Increase)/decrease in receivables | (52) | 232 |
+-------------------------------------------------------+------------------+----------+
| (Decrease)/increase in payables | (6,266) | 635 |
+-------------------------------------------------------+------------------+----------+
| Cash generated from operations | 12,262 | 17,038 |
+-------------------------------------------------------+------------------+----------+
15. "Triple" net asset value per share
+-------------------------------------------------------+-------------+-----------+
| To assist shareholders in understanding the results, | 2009 | 2008 |
| the table below shows how the "triple" net asset | | |
| value was arrived at: | | |
| | | |
+-------------------------------------------------------+-------------+-----------+
| | GBP000 | GBP000 |
+-------------------------------------------------------+-------------+-----------+
| Closing net assets | 107,202 | 223,011 |
+-------------------------------------------------------+-------------+-----------+
| Less: debenture issue premium | (346) | (362) |
+-------------------------------------------------------+-------------+-----------+
| Add: debenture mark to market (after tax at nil%; | 33,667 | 30,355 |
| 2008: nil%) | | |
+-------------------------------------------------------+-------------+-----------+
| | 140,523 | 253,004 |
+-------------------------------------------------------+-------------+-----------+
| Shares in issue (000) | 53,149 | 53,149 |
+-------------------------------------------------------+-------------+-----------+
| "Triple" net asset value per share | 264p | 476p |
+-------------------------------------------------------+-------------+-----------+
16. Post balance sheet events
Following the year end Royal Bank of Scotland plc, at the Company's request,
made a tender offer to buy in part of the 2031 mortgage debenture stock.
The offer was completed on 4 August 2009 and RBS sold the GBP43.8m of debenture
stock it had acquired in the tender, at an average price of 77.6p, to the
Company at a cost of GBP34.0m. The purchase was funded out of existing banking
facilities and the debenture stock was immediately cancelled.
The impact of the tender (net of expenses) has been to reduce the Company's
debt, and increase its net asset value by GBP9.0m (17p per share).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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