TIDMTCSC
RNS Number : 6124S
Town Centre Securities PLC
14 September 2010
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| Tuesday 14 September 2010 |
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TOWN CENTRE SECURITIES PLC
Final results for the year ended 30 June 2010
Town Centre Securities PLC ("TCS") the Leeds based property investment and
development company, today announces its final results, for the year ended 30
June 2010.
Financial highlights
o Profit before tax
o Underlying* profit GBP7.6m (2009: GBP7.8m)
o Statutory profit after tax GBP39.6m (2009: loss GBP111.6m), includes impact
of property revaluation gain of GBP25.4m (2009: deficit GBP107.7m), of which
GBP19.7m was reported at the interim stage.
o Earnings per share
o Underlying* earnings per share 14.8p (2009: 14.8p)
o Basic earnings per share 74.5p (2009: loss 210.3p)
o Net assets per share
o Net asset value per share 269p (2009: 202p)
o Triple net asset value per share 306p (2009: 264p)**
o Discount to net asset value of 48.3% at last night's closing share price of
139p
o Investment property portfolio valuation of GBP272.5m reflecting an 11.2%
increase on a like for like basis
o Dividends per share
o Proposed final dividend of 7.34p (2009: 5.4p)
o Final dividend to be paid as a PID of 7.23p and an ordinary dividend of 0.11p
o Total dividend per share of 10.36p (2009: 8.15p)
o Reduced borrowings GBP141.3m (2009: GBP166.3m): Gearing 99% (2009: 155%)
o Well within existing facilities and covenants
o Significant headroom for asset purchases and development within our existing
portfolio
* See notes 6 and 7 for reconciliation to statutory profit.
** See note 13
Operational highlights:
o Merrion Centre income grew for fifth consecutive year (increase of 3.8%)
o Total voids reduced to 6.8% (2009: 8.4%)
o Significant management activity - 38 lettings and 31 lease renewals and
extensions
o Car park expansion - over 4000 spaces now under management control
o Disposal of assets raised proceeds of GBP22.8m
o Acquired two shops in London suburbs
Commenting on the results, Chairman and Chief Executive Edward Ziff, said:
"This year, in contrast to the previous year, has been much more stable for the
property sector and for Town Centre Securities. I am encouraged by the way in
which we successfully negotiated the severe downturn and demonstrated the
strength and resilience of our business.
"I believe there will be income and investment management opportunities for us
to build on our solid foundations in the new financial year although the outlook
for rental income and capital growth is relatively flat. I am also hopeful
that at the Merrion Centre we can add long term value and growth to what has
already proven to be an extremely resilient asset that underpins the quality of
our income.
"Most importantly, we manage our portfolio to generate a sustainable and
progressive dividend for the benefit of our shareholders and will continue to
deliver attractive returns."
+--------------------------------------+------+----------+------------------------+
| For further information, please | | | |
| contact: | | | |
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| Town Centre Securities PLC | | | www.tcs-plc.co.uk |
+--------------------------------------+------+----------+------------------------+
| Edward Ziff, Chairman and Chief | | | 0113 222 1234 |
| Executive | | | |
+--------------------------------------+------+----------+------------------------+
| Chris Kelly, Finance Director | | | |
+--------------------------------------+------+----------+------------------------+
| | | | |
+--------------------------------------+------+----------+------------------------+
| Hogarth | | | |
+--------------------------------------+------+----------+------------------------+
| Reg Hoare / Vicky Watkins | | | 0207 357 9477 |
+--------------------------------------+------+----------+------------------------+
Chairman and Chief Executive's Statement
Results
The results for the year demonstrate that Town Centre Securities has come out of
the protracted downturn in the property market in a strong position. Underlying
profit before tax (excluding property valuation, debenture profit and other one
off movements) was GBP7.6m, compared with GBP7.8m in the prior year.
Our statutory profit after tax amounted to GBP39.6m, compared to a loss of
GBP111.6m in 2009. This includes a revaluation surplus of GBP25.4m (2009:
deficit GBP107.7m) and a gain of GBP9.0m arising from the repurchase of
debenture stock in August 2009. Basic earnings per share amounted to 74.6p
(2009: loss of 210.3p). Underlying earnings per share were 14.8p (2009: 14.8p).
Net assets now stand at GBP142.9m (269p per share) at 30 June 2010, compared to
GBP107.2m (202p per share) at 30 June 2009. Triple net asset value has
increased to GBP162.9m (306p per share) from GBP140.5m at 30 June 2009 (264p per
share).
Our property values have increased on a like for like basis by 11.2% compared to
last year (2009: 25.6% reduced), with a surplus on revaluation of GBP25.4m. On
a like for like basis our rental income has increased by 3% during this
financial year. Inevitably, following the net disposals we have made since
2008, our overall portfolio is smaller, and thus our revenues have fallen by
GBP4.3m from GBP27.3m to GBP23.0m.
We have achieved considerable savings in our underlying administrative costs
which fell by 21% to GBP4.5m (2009: GBP5.7m) and will continue to fall as the
full year effects of further savings comes through. However, property costs have
increased as a consequence of considerable letting activity and the cost of void
properties. We anticipate that these will be lower in the coming year.
During the year under review the Group agreed payments to Edward Ziff and
Richard Lewis totalling GBP2.1m as compensation for sacrifice of pension
benefits resulting from the termination of the Group's existing pension
arrangement. This resulted in a GBP1.4m charge to administrative expenses to
supplement provisions made in prior years. This removes the risk the Company had
to significant fluctuation in future pension costs and reduces the level of
future pension expense.
During the year we acquired two properties in North London and made further
property disposals which generated proceeds of GBP22.8m. The latter gave rise
to a small loss on disposal.
Dividend
Your Board is recommending a final dividend of 7.34p (2009:5.4p) per ordinary
share. The total dividend is 10.36p (2009: 8.15p) per ordinary share.
Under REIT rules 90% of the profits of our property rental business, after
certain deductions, must be distributed to shareholders as a Property Income
Distribution (PID). Accordingly the final dividend is made up of a PID of 7.23
per share (2009:4.1p) and an ordinary dividend amounting to 0.11p per share
(2009:1.3p).
The final ordinary dividend and the PID will be paid on 5 January 2011 to
shareholders on the register on 10 December 2010.
Funding
The Company has again reduced debt levels. Net debt at 30 June 2010 was
GBP141.3m (2009: GBP166.3m). The debt comprised GBP105.7m of 5.375% debenture
stock maturing in 2031 and term loans and other bank borrowings of GBP35.6m.
As reported this time last year, on 4 August 2009 RBS completed a tender offer,
at the Company's request, which resulted in the purchase by the Company of
GBP43.8m of debenture stock for GBP34m (an average price of 77.6p). This
reduced our overall debt and increased net assets by GBP9m. A further
GBP200,000 of debenture stock was purchased by private treaty in December 2009.
The Group's borrowings are well within existing facilities and covenants and
provide significant headroom for asset purchases and development within our
existing portfolio. Our gearing is now 99% compared to 155% a year ago and net
borrowings are 48.6% of property assets.
Strategy
We are, first and foremost, a Property Investment Company which seeks to provide
a return to shareholders through a strong income that results in a sustainable
dividend policy. Our great strength, which is clear from these results, is our
ability to manage our portfolio, delivering income in line with our mantra of
'Right Tenant, Right Property, Right Rent'. Consequently, our low level of
acquisitions in recent months has been as a result of our policy to seek value
today rather than the promise of value tomorrow. We seek secure and growing
income, in good and improving locations.
The dramatic change in property values provides an opportunity for us to invest
in new property although we are convinced we will create a greater return from
our existing portfolio at the current time.
A further key element of our strategy is also to grow and improve our car
parking business because it offers attractive income generating opportunities.
Apart from seeking to generate greater revenue from our existing car park
portfolio, on 1 July 2010 we took over the management of the Merrion Centre
multi-storey car park.
At this point in the economic cycle we do not intend to enter into significant
development activity unless there is a high degree of certainty of return on new
investment. Indeed we have now concluded an agreement with Hammerson PLC by
which they have assumed total control of the Eastgate Quarters scheme in Leeds
which we had been jointly developing with them. Under the agreement we have no
obligations to costs going forward and this allows us to focus on our core
business. We will continue to be involved in a local liaison role. As stated
above, our strongly held view is that the best short-term opportunities are
likely to present themselves within our existing portfolio, particularly in the
Merrion Centre.
The proposed Leeds Arena site which is due to open in 2013 is on our doorstep
and will change the dynamic and nature of footfall and trade in this part of
Leeds and in the Merrion Centre presenting further opportunity for retail and
leisure units, as well as for the Merrion Centre Car Park. In the short term
we continue to benefit from car park income from our well located development
sites in Leeds and Manchester where there is significant long- term development
potential.
During a period of great economic turbulence we have continued to adopt a
prudent approach to our balance sheet. We have successfully reduced debt and by
adopting a proactive approach have benefited shareholders by avoiding recourse
to equity markets.
Property portfolio
Our property portfolio continues to be principally a mix of retail, office, car
parking and out of town retail assets. The portfolio remains concentrated in
the North of England and Scotland and is largely based in the major cities of
Leeds, Manchester, Edinburgh and Glasgow.
We have a wide spread of tenants with only two tenants with three properties and
ten tenants with two. The occupancy levels of our portfolio have increased and
we now have 6.8% voids compared to 8.4% at 30 June 2009.
Our single largest asset is the Merrion Centre in Leeds. This asset has proved
extremely resilient throughout the downturn and this is the fifth consecutive
year in which Merrion income has grown. The completely refurbished offices at
Town Centre House (46,000 sq ft) have been let during the year - a real success
story in a very difficult letting environment.
In Manchester we have made some progress letting Urban Exchange at Piccadilly
Basin which currently represents 4.4% of our total voids. This property,
(120,000sq ft) formerly entirely let to ILVA which went into administration, has
ALDI as a current tenant of part. We are hopeful of shortly entering into an
agreement to lease the entire first floor and we expect to let the remaining
space by the end of 2011.
Town Centre Car Parks
Our car park business has performed well this year in the face of strong
competition in its areas of operation, Leeds and Manchester. We now have an
operating portfolio with over 4,000 spaces. We are developing a strong brand
which enhances our reputation, customer service experience and competitiveness.
We are seeking suitable acquisition and management opportunities nationwide.
Board changes
In April 2010 we appointed Chris Kelly as Finance Director. Chris was
previously a senior audit partner with Ernst & Young.
On 30 November 2009 Bob Bigley stepped down from the Board and left the Company.
Bob had been on the Board since 2005 when he joined as Corporate Development
Director. He also took over as Finance Director in October 2008. On behalf of
the Company I would like to express our thanks to him for his contribution,
support and advice and wish him well in his new role.
Outlook
This year, in contrast to the previous year, has been much more stable for the
property sector and for Town Centre Securities. I am encouraged by the way in
which we successfully negotiated the severe downturn and demonstrated the
strength and resilience of our business.
I believe there will be income and investment management opportunities for us to
build on our solid foundations in the new financial year although the outlook
for rental income and capital growth is relatively flat. I am also hopeful that
at the Merrion Centre we can add long-term value and growth to what has already
proven to be an extremely resilient asset that underpins the quality of our
income.
Most importantly, we manage our portfolio to generate a sustainable and
progressive dividend for the benefit of our shareholders and will continue to
deliver attractive returns.
Finally, we could not have achieved all that we have without a strong and active
team. I would like to express my thanks to all of our staff at TCS who have
provided great support to myself and the Board and enabled the business to
maintain its strong foundations and income generation.
E.M. Ziff
Chairman and Chief Executive
14 September 2010
Property Report
Portfolio performance
The independent valuation of our investment portfolio has been split between
Jones Lang LaSalle and CB Richard Ellis. The value of our investment portfolio
as at 30 June 2010 stands at GBP272.5m, representing an increase in the year of
11.2% on a like for like basis. The overall initial yield has improved to 7.3%
from 7.9% and we have grown rental income by almost 3% on a like for like basis.
The growth in income despite further rental pressures in the marketplace,
particularly in the retail sector, has been encouraging against a background of
a further five tenant administrations and liquidations (2009: 13) and 31 lease
renewals and extensions.
+--------+------+-+-----+------+-----+----------+------------+-----------+
| PORTFOLIO PERFORMANCE | | | | |
+------------------------------+-----+----------+------------+-----------+
| | | | | | Value | Proportion | Valuation |
| | | | | | | of | |
+--------+--------+-----+------+-----+----------+------------+-----------+
| | | | | | GBPm | portfolio | movement |
| | | | | | | | % |
| | | | | | | % | |
+--------+--------+-----+------+-----+----------+------------+-----------+
| | | | | | | | |
+--------+--------+-----+------+-----+----------+------------+-----------+
| Retail | | | | | 85.1 | 31.2 | 9.2 |
+--------+--------+-----+------+-----+----------+------------+-----------+
| Merrion Centre | | | 75.9 | 27.9 | 13.4 |
| (excl offices) | | | | | |
+-----------------------+------+-----+----------+------------+-----------+
| Office | | | | | 46.7 | 17.1 | 12.1 |
+--------+--------+-----+------+-----+----------+------------+-----------+
| Car Parking | | | | 13.3 | 4.9 | 3.9 |
+-----------------+-----+------+-----+----------+------------+-----------+
| Out of town | | | | 42.7 | 15.7 | 11.8 |
| retail | | | | | | |
+-----------------+-----+------+-----+----------+------------+-----------+
| Residential | | | | 6.4 | 2.3 | 16.4 |
+-----------------+-----+------+-----+----------+------------+-----------+
| | | | | | | | |
+--------+--------+-----+------+-----+----------+------------+-----------+
| Properties owned | | | 270.1 | 99.1 | 11.2 |
| all year | | | | | |
+-----------------------+------+-----+----------+------------+-----------+
| | | | | | | | |
+--------+------+-------+------+-----+----------+------------+-----------+
| Acquisitions | | | 2.4 | 0.9 | 33.3 |
| (retail) | | | | | |
+-----------------------+------+-----+----------+------------+-----------+
| | | | | | | | |
+--------+------+-------+------+-----+----------+------------+-----------+
| Total | | | | 272.5 | 100.0 | 11.3 |
| investment | | | | | | |
| portfolio | | | | | | |
+---------------+-------+------+-----+----------+------------+-----------+
| | | | | | | |
+---------------+-------+------+-----+----------+------------+-----------+
| | | | | | | | | |
+--------+------+-+-----+------+-----+----------+------------+-----------+
Note: Merrion Centre offices are included in office sector in this table
The Merrion Centre valuation grew 14.5% (including offices) from GBP96.7m to
GBP110.7m. When looked at as a whole (including GBP34.8m of office
accommodation), the Merrion Centre comprises over 40% of our investment
portfolio. Out of town retail growth was also particularly strong.
+----------------------+----------+----------+----------+------+-----------+-----------+
| GEOGRAPHICAL SPLIT BY LOCATION | | | |
+-------------------------------------------------------+------+-----------+-----------+
| | | | | | | |
+----------------------+----------+----------+----------+------+-----------+-----------+
| | | | | | GBPm | % by |
| | | | | | | value |
+----------------------+----------+----------+----------+------+-----------+-----------+
| Yorkshire and North East (Merrion) | | 110.7 | 40.6 |
+-------------------------------------------------------+------+-----------+-----------+
| Scotland | | | | | 71.7 | 26.3 |
+----------------------+----------+----------+----------+------+-----------+-----------+
| North West | | | | 40.8 | 15.0 |
+---------------------------------+----------+----------+------+-----------+-----------+
| Yorkshire and North East (rest) | | | 41.4 | 15.2 |
+--------------------------------------------+----------+------+-----------+-----------+
| Midlands | | | | | 4.8 | 1.8 |
+----------------------+----------+----------+----------+------+-----------+-----------+
| London | | | | | 3.1 | 1.1 |
+----------------------+----------+----------+----------+------+-----------+-----------+
| | | | | | | |
+----------------------+----------+----------+----------+------+-----------+-----------+
| | | | | | 272.5 | 100.0 |
+----------------------+----------+----------+----------+------+-----------+-----------+
Acquisitions and disposals
We made two retail acquisitions in November 2009 totalling GBP1.8m in North
London suburbs, off initial yields of 7%. Both have performed well seeing 33%
capital growth in the period to June 2010.
We made seven disposals in the period with proceeds totalling GBP22.8m,
disposing of properties where we were mainly concerned with future income
stability.
Portfolio review
Our clear focus has been on the management of our portfolio. Void levels have
been reduced from 8.4% (2009) to 6.8%. We hope to exchange an agreement for
lease on 55,000 sq ft at the Urban Exchange store in Manchester, which will
reduce voids further to 5.3%. We completed the sale of the two remaining
residential units at our Harrogate development and successfully let the
extensively refurbished and extended Town Centre House (46,000 sq ft) in the
Merrion Centre at an average rental of GBP13.00 per square foot per annum.
During the year we completed 38 lettings and over 30 lease renewals and
extensions which further secured our income position going forward. The
portfolio includes a wide variety of tenants, with our top ten tenants in terms
of passing rents being spread across a number of sectors.
Top 10 Tenants
Passing rent GBP1m+ Q-Park
Leeds City Council
Between GBP500k-GBP1m Wm Morrison
Waitrose
Homebase
Matalan
Between GBP250k-GBP500k DSG Retail
Austin Reed
Luminar
Pizza Hut
Merrion Centre, Leeds
With 800,000 sq ft, (c six acres) this Island Site is mixed use with no over
reliance on a single sector. It is a major retail destination with annual
footfall of c10million visitors and plenty of car parking. We have high visit
frequency with a very even spread of age groups, demonstrating its widespread
appeal. The mixed use nature of the centre in the value sector of the market
and our active in-house management has delivered good growth in the year. As a
whole, including the office accommodation, Merrion Centre has generated income
of over GBP8.8m in 2010 an increase of 3.8% over 2009 with more to come from new
lettings and extensions. Of this income 42% is retail and leisure 12%. Office
accommodation represents 27%, of which Merrion House (140,000 sq ft) is let to
Leeds City Council, producing GBP1.4m per annum and car parking a further 19%.
The Merrion Centre represents over 40% of our investment portfolio in capital
and in rents received. Retail voids have remained low at 2.6% and office voids
are minimal.
The retail offering in the Merrion Centre has excellent anchor tenants in Wm
Morrison, Home Bargains and Peacocks and a good mix of value retailers. We
continue to be successful in replacing occupiers who vacated and have welcomed
retailer BrightHouse as a new mini anchor to the main mall along with Grainger
Games, GNC and Card Zone. We have recently created four small retail units,
three of which are let, demonstrating our ability to seek ways of improving
space utilisation and quality of income. Our main office occupiers, Leeds City
Council and the Foundation for Consumer Credit continue to offer long-term
secure income and have now been joined by professional practice Hoare Lee and
the Public and Commercial Services Union who have taken space in Town Centre
House. We consider the balanced spread of income throughout the centre together
with a high percentage of quality tenants provides a stable base from which to
add further value. Seven tenants account for 54% of the income. In taking over
the day to day control of the multi-storey car park from Q-Park we now have
further flexibility to maximise opportunities and increase footfall.
+------------+----------+------+---------+------------+------+---------+--------------+
| LEASE PROFILE | | | | | | |
+-----------------------+------+---------+------------+------+---------+--------------+
| | | | Passing | Proportion | ERV | Initial | Reversionary |
| | | | rent | of | GBPm | yield | Yield % |
| | | | GBPm | portfolio | | % | |
| | | | | % | | | |
| | | | | | | | |
+------------+----------+------+ + + + + +
| | | | | | | | |
+------------+----------+------+ +------------+ + +--------------+
| | | | | | | | |
+------------+----------+------+---------+------------+------+---------+--------------+
| Retail | | | 6.6 | 34.7 | 6.4 | 7.2 | 7.0 |
+------------+----------+------+---------+------------+------+---------+--------------+
| Merrion Centre (excl | 6.8 | 35.8 | 6.8 | 7.4 | 8.1 |
| offices) | | | | | |
+------------------------------+---------+------------+------+---------+--------------+
| Office | | | 3.6 | 19.0 | 3.4 | 7.3 | 7.1 |
+------------+----------+------+---------+------------+------+---------+--------------+
| Out of town retail * | | 2.0 | 10.5 | 2.3 | 6.4 | 7.1 |
+-----------------------+------+---------+------------+------+---------+--------------+
| | | | | | | | |
+------------+----------+------+---------+------------+------+---------+--------------+
| Let portfolio | | 19.0 | 100.0 | 18.9 | 7.3 | 7.0 |
+-----------------------+------+---------+------------+------+---------+--------------+
| | | | | | | | |
+------------+----------+------+---------+------------+------+---------+--------------+
| Urban Exchange void | | | | 0.9 | | |
+-----------------------+------+---------+------------+------+---------+--------------+
| Other voids | | | | 0.4 | | |
+-----------------------+------+---------+------------+------+---------+--------------+
| | | | | | | | |
+------------+----------+------+---------+------------+------+---------+--------------+
| Total portfolio | | | | 20.2 | | |
+------------+----------+------+---------+------------+------+---------+--------------+
* Reflects occupied element of Urban Exchange
Our portfolio lease profile is spread reasonably evenly across four sectors. In
addition we have good security of income and a long lease profile. 33.7% of our
leases by rental income expire within five years. Almost 40% of leases have
over ten years to expiry including 72% of the leases on our out of town retail
sites and nearly 60% of our office leases.
+----------+----------+----------+-----------+------------+-----------+-----------+
| RENT ROLL BY LEASE EXPIRY AND VOIDS | | |
+---------------------------------------------------------+-----------+-----------+
| | | | | | | |
+----------+----------+----------+-----------+------------+-----------+-----------+
| | | | | | | |
+----------+----------+----------+-----------+------------+-----------+-----------+
| | | | Analysis by lease expiry | |
| | | | | |
+----------+----------+----------+------------------------------------+-----------+
| | | | 0-5 years | 5-10 years | Over 10 | Voids |
| | | | | | years | |
+----------+----------+----------+-----------+------------+-----------+-----------+
| | | | % | % | % | % |
+----------+----------+----------+-----------+------------+-----------+-----------+
| | | | | | | |
+----------+----------+----------+-----------+------------+-----------+-----------+
| Retail | | | 39.6 | 31.1 | 29.3 | 1.8 |
+----------+----------+----------+-----------+------------+-----------+-----------+
| Merrion Centre | | 47.5 | 25.9 | 26.6 | 2.6 |
| (excl offices) | | | | | |
+---------------------+----------+-----------+------------+-----------+-----------+
| Office | | | 22.3 | 18.3 | 59.4 | 3.9 |
+----------+----------+----------+-----------+------------+-----------+-----------+
| Out of town retail | | 0.0 | 28.2 | 71.8 | 29.6 |
+---------------------+----------+-----------+------------+-----------+-----------+
| | | | | | | |
+----------+----------+----------+-----------+------------+-----------+-----------+
| Total portfolio | | 33.7 | 26.5 | 39.8 | 6.8 |
+----------+----------+----------+-----------+------------+-----------+-----------+
Development
There has been no development activity in the last year. We continue to monitor
the occupational markets which are showing some signs of improvement. Our
principal development sites, respectively in Leeds and Manchester, provide good
income as surface car parks and our retail site in Rochdale is attracting
occupier interest.
Town Centre Car Parks
Our car parks are operated under the Town Centre Car Parks (TCCP) brand. Total
car park revenues during the year amounted to GBP4.7m (2009: GBP4.7m).
We have three multi-storey car park sites with a combined 2,980 spaces and over
1,000 spaces on surface car parks which we operate in Leeds and Manchester. Our
multi-storey car parks at Clarence Dock and the Merrion Centre in Leeds and
Tariff Street in Manchester all operate under the ParkMark award for safe,
secure, crime free car parks. This is an important part of the TCCP offer and
we know, from customer feedback, that our customers appreciate the hands on,
friendly and reliable service they receive from our staff.
Our multi-storey sites have 24/7 opening hours and CCTV, including off site
monitoring. We have state of the art facilities, which allow us to create a
well run, user friendly, safe and convenient environment which makes car parking
a comfortable experience.
We have successfully continued to maintain the revenues we earn from Clarence
Dock, though the overall development scheme has not been as successful as was
initially hoped. We signed a ten year lease with Yorkshire Water to operate as
their partner for car parking at Clarence Dock which has offset a decline in
revenues from short term parking caused by the difficult economic conditions.
The contract operates for a full year for the first time in 2010/11 and so we
will see further growth in revenues. Our car park at Tariff Street, Manchester
is still in its development phase and we anticipate better revenues once we have
further developed the site at Piccadilly Basin.
Our surface car park operations are based at six sites in Leeds and Manchester.
These are run as efficiently as possible with our staff performing an important
role in ensuring a consistent service at all times.
FINANCIAL REVIEW
Income Statement
Our underlying profit before tax was GBP7.6m (2009: GBP7.8m). This result
excludes all exceptional items and property disposal profits and losses. A
reduction in rental income of GBP4.3m arising from the disposal of property
during the year has largely been offset by the resultant decrease in financing
costs.
The statutory profit after tax amounted to GBP39.6m (2009: loss GBP111.6m). The
debenture buy back profit amounted to GBP9.0m and the property revaluation gain
amounted to GBP25.4m (2009: deficit GBP107.7m).
Underlying administrative expenses have reduced by GBP1.2m (21%) since last year
as a result of efficiency measures instigated in 2009 and continued this year.
The main areas of savings have been in salaries and legal and professional fees.
As set out in the Chairman and Chief Executive's Statement a charge of GBP1.4m
was incurred in terminating the directors' existing pension arrangement.
Property expenses (excluding car parks) have increased by GBP0.5m to GBP2.2m as
a consequence of the number of administrations previously suffered as well as a
high level of lease renewals and extensions. We also suffered additional
running costs for Town Centre House until we had substantially completed the
lettings process.
Car parking property expenses amounted to GBP2.0m (2009: GBP2.0m). These have
been tightly controlled during the year.
Net interest costs substantially reduced from GBP10.7m to GBP7.6m. Our
debenture loan has reduced from GBP149.7m to GBP105.7m. Our interest rate swap
expired in October 2009 and our effective rate of interest on term loans reduced
as we did not carry an interest rate hedge for the remainder of the year.
Interest cover was two times (2009: 1.7 times).
Balance Sheet
Our Balance Sheet is considerably stronger than a year ago. Net assets per
share, property values, gearing and loan to value have all improved
significantly.
Net assets at 30 June 2010 totalled GBP142.9m compared to GBP107.2m last year.
This gives net assets per share of 269p per share (2009: 202p). Triple Net
Asset Value (after adjusting for the issue premium and mark to market of the
debenture) amounted to 306p per share (2009: 264p).
Our property portfolio (excluding property owned by joint ventures) is valued at
GBP291.0m (2009: GBP284.6m). Of this amount GBP272.5m (2009: GBP265.9m) in
aggregate was valued by Jones Lang LaSalle and CB Richard Ellis. The remaining
properties GBP18.5m (2009: GBP18.7m) were valued by the Directors.
Net borrowings at the year end were GBP141.3m (2009: GBP166.3m). This decrease
of 15% resulted from the profit on the debenture buy-back and from the sale of
properties. Gross borrowings comprised the debenture loan of GBP106.0m, term
loans of GBP35m and overdraft and money market borrowings of GBP0.8m.
At 30 June 2010 gearing had reduced to 99% from 155% and net borrowings were
48.6% of property assets compared to 58.4% a year ago. Thus we have much
increased headroom within our loan to value covenants and our unutilised
committed facilities of GBP50m and undrawn overdraft and money market facilities
of GBP14.2m provide funds for future growth.
Cash Flow
The cash flow statement shows a net increase in cash and cash equivalents of
GBP7.9m in the year ended 30 June 2010. Cash generated from operations was
GBP13.6m (2009: GBP14.9m).
During the year, the debenture repurchase amounted to GBP35.0m of which GBP18.8m
was released from being held as security against the debenture and the remainder
was raised from the sale of property and the draw down of term loans. During the
year the sale of properties generated GBP22.8m (2009: GBP47.0m) and GBP5.0m was
invested in new properties and the refurbishment of other properties (2009:
GBP11.3m).
Dividend
Following a year of sound trading performance and the restructuring of our debt
which generated a profit of GBP9.0m, the benefits to shareholders of our REIT
status is demonstrated by a total dividend payment of 10.36p (2009: 8.15p). The
final dividend of 7.34p, when added to the interim PID dividend of 3.02p, gives
a total dividend for the year of 10.36p per share. The PID element of the final
dividend is 7.23p per share. Our policy is to pay a sustainable and progressive
dividend.
Taxation and REIT
Our tax credit for the year amounted to GBP0.3m (2009: GBP1.0m) and related to
the release of prior year provisions.
We continue to pay our REIT entry charge in instalments and this amounted to
GBP2.4m in 2010. We have further payments to make of GBP3.9m at the balance
sheet date.
Future Prospects
With significantly reduced debt levels, secured debenture finance and much
improved headroom and covenant compliance, our financial position is strong.
The improvements to our cost base will increase future cash generation. We
continue to benefit from low interest rates and are vigilant to signs that our
interest costs will grow in future. We have the further benefit of significant
unutilised committed facilities to enable us to grow the business over the
coming years.
Consolidated Income Statement
For the year ended 30 June 2010
+---------------------------------------------+-------+---------+-----------+
| | | 2010 | 2009 |
+---------------------------------------------+-------+---------+-----------+
| |Notes | GBP000 | GBP000 |
+---------------------------------------------+-------+---------+-----------+
| Gross revenue | 2 | 22,951 | 27,286 |
+---------------------------------------------+-------+---------+-----------+
| Property expenses | 3 | (4,265) | (3,707) |
+---------------------------------------------+-------+---------+-----------+
| Net revenue | | 18,686 | 23,579 |
+---------------------------------------------+-------+---------+-----------+
| Administrative expenses | 4 | (6,098) | (5,744) |
+---------------------------------------------+-------+---------+-----------+
| Other income | | 796 | 501 |
+---------------------------------------------+-------+---------+-----------+
| Loss on disposal of investment properties | | (338) | (9,178) |
+---------------------------------------------+-------+---------+-----------+
| Profit on disposal of other fixed assets | | 3 | 21 |
+---------------------------------------------+-------+---------+-----------+
| Profit on repurchase of debenture stock | | 8,956 | - |
+---------------------------------------------+-------+---------+-----------+
| Profit on disposal of shares in joint | | - | 860 |
| venture | | | |
+---------------------------------------------+-------+---------+-----------+
| Loss on disposal of listed investments | | - | (3,374) |
+---------------------------------------------+-------+---------+-----------+
| Valuation movement on investment properties | 9 | 25,441 | (106,113) |
+---------------------------------------------+-------+---------+-----------+
| Impairment loss on development properties | | (45) | (1,620) |
+---------------------------------------------+-------+---------+-----------+
| Operating profit/(loss) | | 47,401 | (101,068) |
+---------------------------------------------+-------+---------+-----------+
| Finance income | | 62 | 303 |
+---------------------------------------------+-------+---------+-----------+
| Finance costs | | (7,615) | (11,012) |
+---------------------------------------------+-------+---------+-----------+
| Share of post tax losses from joint | | (553) | (835) |
| ventures | | | |
+---------------------------------------------+-------+---------+-----------+
| Profit/(loss) before taxation | | 39,295 | (112,612) |
+---------------------------------------------+-------+---------+-----------+
| Taxation credit | 5 | 273 | 1,048 |
+---------------------------------------------+-------+---------+-----------+
| Profit/(loss) for the year attributable to | | 39,568 | (111,564) |
| equity holders of the Company | | | |
+---------------------------------------------+-------+---------+-----------+
| | | | |
+---------------------------------------------+-------+---------+-----------+
| Earnings/(loss) per ordinary share of 25p | 6 | | |
| each: | | | |
+---------------------------------------------+-------+---------+-----------+
| Basic | | 74.6p | (210.3p) |
+---------------------------------------------+-------+---------+-----------+
| Diluted | | 74.6p | (210.2p) |
+---------------------------------------------+-------+---------+-----------+
| Underlying (non-GAAP measures) | | 14.8p | 14.8p |
+---------------------------------------------+-------+---------+-----------+
| | | | |
+---------------------------------------------+-------+---------+-----------+
| Dividends per ordinary share: | 8 | | |
+---------------------------------------------+-------+---------+-----------+
| Paid during the period | | 8.42p | 8.15p |
+---------------------------------------------+-------+---------+-----------+
| Proposed | | 7.34p | 5.40p |
+---------------------------------------------+-------+---------+-----------+
Consolidated Statement of Comprehensive Income
for the year ended 30 June 2010
+---------------------------------------------+-------+--------+-----------+
| | | 2010 | 2009 |
+---------------------------------------------+-------+--------+-----------+
| |Notes | GBP000 | GBP000 |
+---------------------------------------------+-------+--------+-----------+
| Profit/(loss) for the financial period | | 39,568 | (111,564) |
+---------------------------------------------+-------+--------+-----------+
| Revaluation gains/(losses) on cash flow | | 548 | (780) |
| hedge | | | |
+---------------------------------------------+-------+--------+-----------+
| Revaluation gains/(losses) on other | | 50 | (2,269) |
| investments | | | |
+---------------------------------------------+-------+--------+-----------+
| Total comprehensive income/(expense) for | | 40,166 | (114,613) |
| the year | | | |
+---------------------------------------------+-------+--------+-----------+
Consolidated Balance Sheet
as at 30 June 2010
All recognised expense for the year is attributable to equity shareholders.
+--------------------------------------------+--------+-----------+-----------+
| | | 2010 | 2009 |
+--------------------------------------------+--------+-----------+-----------+
| | Notes | GBP000 | GBP000 |
+--------------------------------------------+--------+-----------+-----------+
| Non-current assets | | | |
+--------------------------------------------+--------+-----------+-----------+
| Investment properties | 9 | 276,760 | 258,535 |
+--------------------------------------------+--------+-----------+-----------+
| Development properties | 9 | 13,333 | 14,389 |
+--------------------------------------------+--------+-----------+-----------+
| Fixtures, equipment and motor vehicles | 9 | 670 | 635 |
+--------------------------------------------+--------+-----------+-----------+
| Investments in joint ventures | | 2,495 | 2,562 |
+--------------------------------------------+--------+-----------+-----------+
| Unamortised tenant lease incentives | | 1,514 | 1,276 |
+--------------------------------------------+--------+-----------+-----------+
| Total non-current assets | | 294,772 | 277,397 |
+--------------------------------------------+--------+-----------+-----------+
| Current assets | | | |
+--------------------------------------------+--------+-----------+-----------+
| Investments | | 559 | 509 |
+--------------------------------------------+--------+-----------+-----------+
| Non-current assets held for sale | | 892 | 11,700 |
+--------------------------------------------+--------+-----------+-----------+
| Trade and other receivables | | 4,207 | 3,354 |
+--------------------------------------------+--------+-----------+-----------+
| Restricted cash | 10 | - | 18,825 |
+--------------------------------------------+--------+-----------+-----------+
| Total current assets | | 5,658 | 34,388 |
+--------------------------------------------+--------+-----------+-----------+
| Total assets | | 300,430 | 311,785 |
+--------------------------------------------+--------+-----------+-----------+
| Current liabilities | | | |
+--------------------------------------------+--------+-----------+-----------+
| Financial liabilities - borrowings | | (784) | (8,681) |
+--------------------------------------------+--------+-----------+-----------+
| Trade and other payables | | (11,643) | (11,693) |
+--------------------------------------------+--------+-----------+-----------+
| Fair value of derivative | | (74) | (622) |
+--------------------------------------------+--------+-----------+-----------+
| Current tax liabilities | | (3,162) | (3,205) |
+--------------------------------------------+--------+-----------+-----------+
| Total current liabilities | | (15,663) | (24,201) |
+--------------------------------------------+--------+-----------+-----------+
| Net current (liabilities)/assets | | (10,005) | 10,187 |
+--------------------------------------------+--------+-----------+-----------+
| Non-current liabilities | | | |
+--------------------------------------------+--------+-----------+-----------+
| Non-current tax liabilities | | (1,318) | (3,907) |
+--------------------------------------------+--------+-----------+-----------+
| Financial liabilities - borrowings | | (140,537) | (176,475) |
+--------------------------------------------+--------+-----------+-----------+
| Total non-current liabilities | | (141,855) | (180,382) |
+--------------------------------------------+--------+-----------+-----------+
| Total liabilities | | (157,518) | (204,583) |
+--------------------------------------------+--------+-----------+-----------+
| Net assets | | 142,912 | 107,202 |
+--------------------------------------------+--------+-----------+-----------+
| Shareholders' equity | | | |
+--------------------------------------------+--------+-----------+-----------+
| Called up share capital | 11 | 13,290 | 13,287 |
+--------------------------------------------+--------+-----------+-----------+
| Share premium account | | 198 | 185 |
+--------------------------------------------+--------+-----------+-----------+
| Other reserves | | 485 | (63) |
+--------------------------------------------+--------+-----------+-----------+
| Retained earnings | | 128,939 | 93,793 |
+--------------------------------------------+--------+-----------+-----------+
| Total equity | | 142,912 | 107,202 |
+--------------------------------------------+--------+-----------+-----------+
| Net assets per share | | 269p | 202p |
+--------------------------------------------+--------+-----------+-----------+
Consolidated Statement of Changes in Equity
As at 30 June 2010
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| | | Share | Share | Hedging | Capital | Retained | Total |
| | | Capital | premium | reserve1 | redemption | earnings | equity |
| | | | account | | reserve1 | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Balance at 1 | | 13,287 | 185 | 158 | 559 | 208,822 | 223,011 |
| July 2008 | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Loss for the | | - | - | - | - | (111,564) | (111,564) |
| period | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Other | | | | | | | |
| comprehensive | | | | | | | |
| expense: | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Revaluation | | - | - | (780) | - | - | (780) |
| losses on cash | | | | | | | |
| flow hedge | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Revaluation | | - | - | - | - | (2,269) | (2,269) |
| losses on other | | | | | | | |
| investments | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Total | | - | - | (780) | - | (113,833) | (114,613) |
| comprehensive | | | | | | | |
| expense for the | | | | | | | |
| period ended 30 | | | | | | | |
| June 2009 | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Other | | - | - | - | - | 6 | 6 |
| adjustments | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Reversal of | | - | - | - | - | 3,130 | 3,130 |
| historic loss | | | | | | | |
| on revaluation | | | | | | | |
| of investments | | | | | | | |
| recognised in | | | | | | | |
| loss for period | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Final dividend | | - | - | - | - | (2,870) | (2,870) |
| relating to the | | | | | | | |
| year ended 30 | | | | | | | |
| June 2008 paid | | | | | | | |
| in December | | | | | | | |
| 2008 | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Interim | | - | - | - | - | (1,462) | (1,462) |
| dividend | | | | | | | |
| relating to the | | | | | | | |
| year ended 30 | | | | | | | |
| June 2009 paid | | | | | | | |
| in June 2009 | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| | | - | - | - | - | (1,196) | (1,196) |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Balance at 30 | | 13,287 | 185 | (622) | 559 | 93,793 | 107,202 |
| June 2009 | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Balance at 1 | | 13,287 | 185 | (622) | 559 | 93,793 | 107,202 |
| July 2009 | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Profit for the | | - | - | - | - | 39,568 | 39,568 |
| period | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Other | | | | | | | |
| comprehensive | | | | | | | |
| income: | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Revaluation | | - | - | 548 | - | - | 548 |
| gains on cash | | | | | | | |
| flow hedge | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Revaluation | | - | - | - | - | 50 | 50 |
| gains on other | | | | | | | |
| investments | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Total | | - | - | 548 | - | 39,618 | 40,166 |
| comprehensive | | | | | | | |
| income for the | | | | | | | |
| period ended 30 | | | | | | | |
| June 2010 | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Issued on take | | 3 | 13 | - | - | - | 16 |
| up of share | | | | | | | |
| options | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Other | | - | - | - | - | 3 | 3 |
| adjustments | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Final dividend | | - | - | - | - | (2,870) | (2,870) |
| relating to the | | | | | | | |
| year ended 30 | | | | | | | |
| June 2009 paid | | | | | | | |
| in December | | | | | | | |
| 2009 | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Interim | | - | - | - | - | (1,605) | (1,605) |
| dividend | | | | | | | |
| relating to the | | | | | | | |
| year ended 30 | | | | | | | |
| June 2010 paid | | | | | | | |
| in March 2010 | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| | | 3 | 13 | - | - | (4,472) | (4,456) |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| Balance at 30 | | 13,290 | 198 | (74) | 559 | 128,939 | 142,912 |
| June 2010 | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| | | | | | | | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
| 1 Other reserves on the balance sheet consist of Hedging | |
| Reserve and Capital redemption reserve in the table above | |
| | |
+-----------------+----+---------+---------+----------+------------+-----------+-----------+
Consolidated Cash Flow Statement
For the year ended 30 June 2010
+-------------------------------------+-------+-----+----+----------+-----+----+----------+
| | | | 2010 | | 2009 |
| | | | | | restated |
+-------------------------------------+-------+-----+---------------+-----+---------------+
| |Notes | GBP000 | GBP000 | GBP000 | GBP000 |
+-------------------------------------+-------+----------+----------+----------+----------+
| Cash flows from operating | | | | | |
| activities | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Cash generated from operations | 12 | | 13,575 | | 14,918 |
+-------------------------------------+-------+----------+----------+----------+----------+
| Interest paid | | | (7,782) | | (11,023) |
+-------------------------------------+-------+----------+----------+----------+----------+
| Interest received | | | 9 | | 64 |
+-------------------------------------+-------+----------+----------+----------+----------+
| Tax received | | | - | | 13 |
+-------------------------------------+-------+----------+----------+----------+----------+
| Net cash generated from operating | | | 5,802 | | 3,972 |
| activities | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Cash flows from investing | | | | | |
| activities | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Purchases and refurbishment of | | (4,919) | | (10,614) | |
| investment properties | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Property development | | (105) | | (647) | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Purchases of plant and equipment | | (196) | | (412) | |
+-------------------------------------+-------+----------+----------+----------+----------+
| REIT entry charge instalment | | (2,359) | | (2,656) | |
| payment | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Proceeds from sale of investment | | 22,657 | | 47,023 | |
| properties | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Proceeds from sale of shares in | | - | | 3,366 | |
| joint venture | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Proceeds from sale of development | | 161 | | - | |
| property | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Proceeds from sale of property, | | 19 | | 197 | |
| plant and equipment | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Proceeds from sale of investments | | - | | 716 | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Dividends received from joint | | 100 | | 100 | |
| venture | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| (Increased)/repayment of joint | | (586) | | 9,153 | |
| ventures | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Net cash generated from investing | | | 14,772 | | 46,226 |
| activities | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Cash flows from financing | | | | | |
| activities | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Proceeds from issue of share | | 16 | | - | |
| capital | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Proceeds from other non-current | | 8,000 | | - | |
| borrowings | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Repayment of other non-current | | - | | (31,000) | |
| borrowings | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Release (restriction) of cash held | 10 | 18,825 | | (18,825) | |
| against debenture | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Re-purchase of share capital | | (35,043) | | - | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Dividends paid to shareholders | | (4,475) | | (4,334) | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Net cash used in financing | | | (12,677) | | (54,159) |
| activities | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Net increase/(decrease) in cash and | | | 7,897 | | (3,961) |
| cash equivalents | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| Cash and cash equivalents at 1 July | | | (8,681) | | (4,720) |
+-------------------------------------+-------+----------+----------+----------+----------+
| Cash and cash equivalents at 30 | | | (784) | | (8,681) |
| June | | | | | |
+-------------------------------------+-------+----------+----------+----------+----------+
| | | | | | | | |
+-------------------------------------+-------+-----+----+----------+-----+----+----------+
The cash flow statement should be read in conjunction with Note 12.
Basis of preparation
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 30 June 2010 or 2009 but is derived from
those accounts. Statutory accounts for 2009 have been delivered to the
registrar of companies, and those for 2010 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 498 (2) or (3) of the Companies Act 2006 in
respect of the accounts for either year.
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 2009, as disclosed in those financial
statements.
1. Segmental information
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 segments operating in other economic environments.
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. The chief operating decision maker has been
identified as the Board. The Board reviews the Group's internal reporting in
order to assess performance and allocate resources. Management has determined
the operating segments based on these reports.
Segment assets
+-------------------------------------------------------+---------+---------+
| | 2010 | 2009 |
+-------------------------------------------------------+---------+---------+
| | GBP000 | GBP000 |
+-------------------------------------------------------+---------+---------+
| Property rental | 286,510 | 298,427 |
+-------------------------------------------------------+---------+---------+
| Car park operations | 13,920 | 13,358 |
+-------------------------------------------------------+---------+---------+
| | 300,430 | 311,785 |
+-------------------------------------------------------+---------+---------+
Segment liabilities
+-------------------------------------------------------+---------+---------+
| | 2010 | 2009 |
+-------------------------------------------------------+---------+---------+
| | GBP000 | GBP000 |
+-------------------------------------------------------+---------+---------+
| Property rental | 160,455 | 205,762 |
+-------------------------------------------------------+---------+---------+
| Car park operations* | (2,937) | (1,179) |
+-------------------------------------------------------+---------+---------+
| | 157,518 | 204,583 |
+-------------------------------------------------------+---------+---------+
*The car park business has positive cash balances, which reduced Group bank
borrowings to the Consolidated Balance Sheet figure.
Segmental results
+----------------------------+-----+----+------------+---------+------+----+------------+-----------+
| | | 2010 | | 2009 |
+----------------------------+-----+---------------------------+------+-----------------------------+
| | Property | Car | | Property | Car | |
| | | park | | | park | |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| | rental | operations | Total | rental | operations | Total |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| Gross revenue | 18,211 | 4,740 | 22,951 | 22,577 | 4,709 | 27,286 |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| Property expenses | (2,249) | (2,016) | (4,265) | (1,713) | (1,994) | (3,707) |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| Net revenue | 15,962 | 2,724 | 18,686 | 20,864 | 2,715 | 23,579 |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| Administrative expenses | (5,928) | (170) | (6,098) | (5,686) | (58) | (5,744) |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| Other income | 796 | - | 796 | 501 | - | 501 |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| Property valuation | 24,896 | 500 | 25,396 | (104,995) | (2,738) | (107,733) |
| movement | | | | | | |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| Profit on disposal of | - | - | - | - | 860 | 860 |
| shares in joint venture | | | | | | |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| Other exceptional items | 8,621 | - | 8,621 | (12,531) | - | (12,531) |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| Operating profit/(loss) | 44,347 | 3,054 | 47,401 | (101,847) | 779 | (101,068) |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| Finance income | 62 | - | 62 | 234 | 69 | 303 |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| Finance costs | (7,615) | - | (7,615) | (11,012) | - | (11,012) |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| Share of post tax | (553) | - | (553) | (850) | 15 | (835) |
| (losses)/profits from | | | | | | |
| joint ventures | | | | | | |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| Profit/(loss) before | 36,241 | 3,054 | 39,295 | (113,475) | 863 | (112,612) |
| taxation | | | | | | |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| Taxation credit/(charge) | 153 | 120 | 273 | 1,097 | (49) | 1,048 |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| Profit/(loss) for the year | 36,394 | 3,174 | 39,568 | (112,378) | 814 | (111,564) |
+----------------------------+----------+------------+---------+-----------+------------+-----------+
| | | | | | | | | |
+----------------------------+-----+----+------------+---------+------+----+------------+-----------+
2. Gross revenue
+-------------------------------------------------------+--------+--------+
| | 2010 | 2009 |
+-------------------------------------------------------+--------+--------+
| | GBP000 | GBP000 |
+-------------------------------------------------------+--------+--------+
| Rental income from investment properties | 18,211 | 22,577 |
+-------------------------------------------------------+--------+--------+
| Income from car park activities | 4,740 | 4,709 |
+-------------------------------------------------------+--------+--------+
| | 22,951 | 27,286 |
+-------------------------------------------------------+--------+--------+
3. Property expenses
+-------------------------------------------------------+--------+--------+
| | 2010 | 2009 |
+-------------------------------------------------------+--------+--------+
| | GBP000 | GBP000 |
+-------------------------------------------------------+--------+--------+
| Car park expenses | 1,970 | 1,892 |
+-------------------------------------------------------+--------+--------+
| Depreciation | 46 | 102 |
+-------------------------------------------------------+--------+--------+
| Other | 2,249 | 1,634 |
+-------------------------------------------------------+--------+--------+
| Non-recurring items: | | |
+-------------------------------------------------------+--------+--------+
| - Exceptional lease premiums paid | - | 353 |
+-------------------------------------------------------+--------+--------+
| - Release of provision for void costs arising from | - | (274) |
| tenant administration | | |
+-------------------------------------------------------+--------+--------+
| | 4,265 | 3,707 |
+-------------------------------------------------------+--------+--------+
4. Administrative expenses
+-------------------------------------------------------+--------+--------+
| | 2010 | 2009 |
+-------------------------------------------------------+--------+--------+
| | GBP000 | GBP000 |
+-------------------------------------------------------+--------+--------+
| Remuneration | 3,143 | 3,824 |
+-------------------------------------------------------+--------+--------+
| Depreciation | 92 | 137 |
+-------------------------------------------------------+--------+--------+
| Charitable donations | 53 | 258 |
+-------------------------------------------------------+--------+--------+
| Other | 1,217 | 1,525 |
+-------------------------------------------------------+--------+--------+
| Non-recurring items: | | |
+-------------------------------------------------------+--------+--------+
| - Exceptional pension contribution | 1,365 | - |
+-------------------------------------------------------+--------+--------+
| - Staff severance costs | 228 | - |
+-------------------------------------------------------+--------+--------+
| | 6,098 | 5,744 |
+-------------------------------------------------------+--------+--------+
The Income Statement charge for share-based payments in accordance with IFRS 2
is not material.
5. Taxation
+-------------------------------------------------------+--------+----------+
| | 2010 | 2009 |
+-------------------------------------------------------+--------+----------+
| | GBP000 | GBP000 |
+-------------------------------------------------------+--------+----------+
| Analysis of credit in period | | |
+-------------------------------------------------------+--------+----------+
| Current tax | | |
+-------------------------------------------------------+--------+----------+
| - Current year | - | 170 |
+-------------------------------------------------------+--------+----------+
| - Adjustment in respect of previous years | (273) | (1,218)* |
+-------------------------------------------------------+--------+----------+
| Total taxation | (273) | (1,048) |
+-------------------------------------------------------+--------+----------+
* Of the total 2009 adjustment, GBP1,012,000 relates to the release of tax
provisions made in previous years.
6. Earnings per share ("EPS")
+----------------------------+-----+-----+----------+----------+-----+-----+----------+----------+
| | | 2010 | | 2009 |
+----------------------------+-----+---------------------------+-----+---------------------------+
| | | Weighted | | | Weighted | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| | | average | | | average | (Loss)/ |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| | | number | Earnings | (Loss)/ | number | earnings |
| | | of | | | of | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| | Earnings | shares | per | earnings | shares | per |
| | | | share | | | share |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| | GBP000 | 000 | Pence | GBP000 | 000 | Pence |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Basic EPS | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Earnings/(loss) and | 39,568 | 53,055 | 74.6 | (111,564) | 53,062 | (210.3) |
| earnings/(loss) per share | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Effect of dilutive | | | | | | |
| securities | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Options | - | 6 | - | - | 4 | - |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Diluted EPS | 39,568 | 53,061 | 74.6 | (111,564) | 53,066 | (210.2) |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Basic EPS | 39,568 | 53,055 | 74.6 | (111,564) | 53,062 | (210.3) |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Release of exceptional tax | - | - | - | (1,012) | - | (1.9) |
| provision relating to | | | | | | |
| prior years | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Loss on disposal of | 338 | - | 0.6 | 9,178 | - | 17.3 |
| properties | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Loss on disposal of listed | - | - | - | 3,374 | - | 6.4 |
| investments | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Profit on repurchase of | (8,956) | - | (16.9) | - | - | - |
| debenture stock | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Exceptional pension | 1,365 | - | 2.6 | - | - | - |
| contribution | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Profit on disposal of | - | - | - | (860) | - | (1.6) |
| shares in joint venture | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Valuation movement on | (25,441) | - | (48.0) | 106,113 | - | 200.0 |
| investment properties | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Impairment loss on | 45 | - | 0.1 | 1,620 | - | 3.0 |
| development properties | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Revaluation movement on | 726 | - | 1.4 | 927 | - | 1.7 |
| investment properties in | | | | | | |
| joint ventures | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Exceptional surrender | - | - | - | 353 | - | 0.7 |
| premium | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Release of provision for | - | - | - | (274) | - | (0.5) |
| tenant administration | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Staff severance costs | 228 | - | 0.4 | - | - | - |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Underlying EPS | 7,873 | 53,055 | 14.8 | 7,855 | 53,062 | 14.8 |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Diluted EPS | 39,568 | 53,061 | 74.6 | (111,564) | 53,066 | (210.2) |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Release of exceptional tax | - | - | - | (1,012) | - | (1.9) |
| provision relating to | | | | | | |
| prior years | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Loss on disposal of | 338 | - | 0.6 | 9,178 | - | 17.3 |
| properties | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Loss on disposal of listed | - | - | - | 3,374 | - | 6.3 |
| investments | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Profit on repurchase of | (8,956) | - | (16.9) | - | - | - |
| debenture stock | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Exceptional pension | 1,365 | - | 2.6 | - | - | - |
| contribution | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Profit on disposal of | - | - | - | (860) | - | (1.6) |
| shares in joint venture | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Valuation movement on | (25,441) | - | (47.9) | 106,113 | - | 200.0 |
| investment properties | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Impairment loss on | 45 | - | 0.1 | 1,620 | - | 3.0 |
| development properties | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Revaluation movement on | 726 | - | 1.4 | 927 | - | 1.7 |
| investment properties in | | | | | | |
| joint ventures | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Exceptional surrender | - | - | - | 353 | - | 0.7 |
| premium | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Release of provision for | - | - | - | (274) | - | (0.5) |
| tenant administration | | | | | | |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Staff severance costs | 228 | - | 0.4 | - | - | - |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| Diluted underlying EPS | 7,873 | 53,061 | 14.8 | 7,855 | 53,066 | 14.8 |
+----------------------------+-----------+----------+----------+-----------+----------+----------+
| | | | | | | | | |
+----------------------------+-----+-----+----------+----------+-----+-----+----------+----------+
Underlying earnings and earnings per share have been disclosed in order that the
effects of disposal losses, revaluation movements and 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.
7. Underlying profit
To assist shareholders in understanding the underlying results and compare to
those results in previous accounting periods, adjustments made to profit/(loss)
before taxation are:
+-------------------------------------------------------+----------+-----------+
| | 2010 | 2009 |
+-------------------------------------------------------+----------+-----------+
| | GBP000 | GBP000 |
+-------------------------------------------------------+----------+-----------+
| Profit/(loss) before taxation | 39,295 | (112,612) |
+-------------------------------------------------------+----------+-----------+
| Less: valuation movement on investment properties | (25,441) | 106,113 |
+-------------------------------------------------------+----------+-----------+
| Less: profit on repurchase of debenture stock | (8,956) | - |
+-------------------------------------------------------+----------+-----------+
| Less: profit on disposal of other fixed assets | (3) | (21) |
+-------------------------------------------------------+----------+-----------+
| Less: profit on disposal of shares in joint venture | - | (860) |
+-------------------------------------------------------+----------+-----------+
| Less: release of provision for tenant administration | - | (274) |
+-------------------------------------------------------+----------+-----------+
| Add: exceptional pension contribution | 1,365 | - |
+-------------------------------------------------------+----------+-----------+
| Add: revaluation deficit - joint ventures | 726 | 927 |
+-------------------------------------------------------+----------+-----------+
| Add: loss on disposal of investment properties | 338 | 9,178 |
+-------------------------------------------------------+----------+-----------+
| Add: staff severance costs | 228 | - |
+-------------------------------------------------------+----------+-----------+
| Add: impairment loss on valuation of development | 45 | 1,620 |
| property | | |
+-------------------------------------------------------+----------+-----------+
| Add: tax on joint ventures | 22 | 30 |
+-------------------------------------------------------+----------+-----------+
| Add: loss on disposal of listed investments | - | 3,374 |
+-------------------------------------------------------+----------+-----------+
| Add: exceptional surrender premium | - | 353 |
+-------------------------------------------------------+----------+-----------+
| Underlying profit | 7,619 | 7,828 |
+-------------------------------------------------------+----------+-----------+
8. Dividends
+-------------------------------------------------------+--------+--------+
| | 2010 | 2009 |
+-------------------------------------------------------+--------+--------+
| | GBP000 | GBP000 |
+-------------------------------------------------------+--------+--------+
| 2008 final paid: 5.4p per 25p share | - | 2,870 |
+-------------------------------------------------------+--------+--------+
| 2009 interim paid: 2.75p per 25p share | - | 1,462 |
+-------------------------------------------------------+--------+--------+
| 2009 final paid: 5.4p per 25p share | 2,870 | - |
+-------------------------------------------------------+--------+--------+
| 2010 interim paid: 3.02p per 25p share | 1,605 | - |
+-------------------------------------------------------+--------+--------+
| | 4,475 | 4,332 |
+-------------------------------------------------------+--------+--------+
The Directors are proposing a final dividend in respect of the financial year
ended 30 June 2010 of 7.34p per share, which will absorb an estimated
GBP3,902,000 of shareholders' funds. This dividend will comprise an ordinary
dividend of 0.11p per share and a Property Income Distribution ("PID") of 7.23p
per share, and will be paid on 5 January 2011 to shareholders who are on the
Register of Members on 10 December 2010.
9. Tangible fixed assets
(a) Investment properties
+------------------------------------------------+-----------+-----------+-----------+
| | | Long | |
+------------------------------------------------+-----------+-----------+-----------+
| | Freehold | leasehold | Total |
+------------------------------------------------+-----------+-----------+-----------+
| | GBP000 | GBP000 | GBP000 |
+------------------------------------------------+-----------+-----------+-----------+
| 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 sale | (11,700) | - | (11,700) |
+------------------------------------------------+-----------+-----------+-----------+
| Valuation at 30 June 2009 | 243,015 | 15,520 | 258,535 |
+------------------------------------------------+-----------+-----------+-----------+
| Valuation at 1 July 2009 | 243,015 | 15,520 | 258,535 |
+------------------------------------------------+-----------+-----------+-----------+
| Investment property refurbishment | 2,247 | - | 2,247 |
+------------------------------------------------+-----------+-----------+-----------+
| Additions | 1,832 | - | 1,832 |
+------------------------------------------------+-----------+-----------+-----------+
| Disposals | (11,295) | - | (11,295) |
+------------------------------------------------+-----------+-----------+-----------+
| Increase/(decrease) in value on revaluation | 25,991 | (550) | 25,441 |
+------------------------------------------------+-----------+-----------+-----------+
| Valuation at 30 June 2010 | 261,790 | 14,970 | 276,760 |
+------------------------------------------------+-----------+-----------+-----------+
Certain investment properties including operational car parks have been revalued
as at 30 June 2010 on the basis of open market value by Jones Lang LaSalle and
CB Richard Ellis at GBP272,460,000 (2009: GBP265,905,000) in accordance with the
Royal Institution of Chartered Surveyors Appraisal and Investment Manual.
Certain other freehold properties have been valued at GBP4,300,000 by the
Directors (2009: GBP4,330,000).
The Directors' valuation of residential property acquired for potential
development and industrial property is supported by market evidence available as
at 30 June 2010.
Investment properties are analysed as follows:
+-------------------------------------------------------+---------+----------+
| | 2010 | 2009 |
+-------------------------------------------------------+---------+----------+
| | GBP000 | GBP000 |
+-------------------------------------------------------+---------+----------+
| Investment property (externally valued) | 272,460 | 265,905 |
+-------------------------------------------------------+---------+----------+
| Less: externally valued properties transferred to | - | (11,700) |
| current assets | | |
+-------------------------------------------------------+---------+----------+
| Residential property acquired for potential | 3,804 | 3,804 |
| development | | |
+-------------------------------------------------------+---------+----------+
| Industrial property | 496 | 526 |
+-------------------------------------------------------+---------+----------+
| | 276,760 | 258,535 |
+-------------------------------------------------------+---------+----------+
(b) Development properties
+-------------------------------------------------------+-------+---------+
| | | GBP000 |
+-------------------------------------------------------+-------+---------+
| Cost at 1 July 2008 | | 15,715 |
+-------------------------------------------------------+-------+---------+
| Additions | | 294 |
+-------------------------------------------------------+-------+---------+
| Decrease in value on revaluation | | (1,620) |
+-------------------------------------------------------+-------+---------+
| Cost at 30 June 2009 | | 14,389 |
+-------------------------------------------------------+-------+---------+
| Cost at 1 July 2009 | | 14,389 |
+-------------------------------------------------------+-------+---------+
| Additions | | 42 |
+-------------------------------------------------------+-------+---------+
| Disposals | | (161) |
+-------------------------------------------------------+-------+---------+
| Impairment | | (45) |
+-------------------------------------------------------+-------+---------+
| Transfer to non-current assets held for sale | | (892) |
+-------------------------------------------------------+-------+---------+
| Cost at 30 June 2010 | | 13,333 |
+-------------------------------------------------------+-------+---------+
The directors have considered the valuation of development properties in the
light of current market conditions and have taken an impairment where market
value is considered lower than cost.
(c) Fixtures, equipment and motor vehicles
+-------------------------------------------------------+--------+--------------+
| | | Accumulated |
| | | |
+-------------------------------------------------------+--------+--------------+
| | Cost | depreciation |
+-------------------------------------------------------+--------+--------------+
| | GBP000 | GBP000 |
+-------------------------------------------------------+--------+--------------+
| 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 |
+-------------------------------------------------------+--------+--------------+
| At 1 July 2009 | 2,436 | 1,801 |
+-------------------------------------------------------+--------+--------------+
| Additions | 196 | - |
+-------------------------------------------------------+--------+--------------+
| Disposals | (45) | (30) |
+-------------------------------------------------------+--------+--------------+
| Depreciation | - | 146 |
+-------------------------------------------------------+--------+--------------+
| At 30 June 2010 | 2,587 | 1,917 |
+-------------------------------------------------------+--------+--------------+
| Net book value at 30 June 2010 | | 670 |
+-------------------------------------------------------+--------+--------------+
The net book value of property, plant and equipment includes GBPnil (2009:
GBP0.7m) in respect of borrowing costs capitalised during the year.
10. Restricted cash
At 30 June 2009, GBP18.8m cash was held as security against the debenture,
following the disposal of certain charged properties. Following the debenture
stock re-purchase in August 2009, the funds were no longer restricted.
11. Share capital
Authorised
2010: 164,879,000 (2009: 164,879,000) ordinary shares of 25p each. Nominal value
of authorised share capital is GBP41,219,750 (2009: GBP41,219,750).
Issued and fully paid
+-------------------------------------------------------+---------+---------+
| | Number | Nominal |
| | of | |
+-------------------------------------------------------+---------+---------+
| | shares | value |
+-------------------------------------------------------+---------+---------+
| Ordinary shares of 25p each | GBP000 | GBP000 |
+-------------------------------------------------------+---------+---------+
| At 1 July 2008 | 53,149 | 13,287 |
+-------------------------------------------------------+---------+---------+
| At 30 June 2009 | 53,149 | 13,287 |
+-------------------------------------------------------+---------+---------+
| At 1 July 2009 | 53,149 | 13,287 |
+-------------------------------------------------------+---------+---------+
| Issued on take-up of options | 12 | 3 |
+-------------------------------------------------------+---------+---------+
| At 30 June 2010 | 53,161 | 13,290 |
+-------------------------------------------------------+---------+---------+
12. Cash flow from operating activities
+-------------------------------------------------------+---------+-----------+
| | 2010 | 2009 |
+-------------------------------------------------------+---------+-----------+
| | GBP000 | GBP000 |
+-------------------------------------------------------+---------+-----------+
| Profit/(loss) for the financial year | 39,568 | (111,564) |
+-------------------------------------------------------+---------+-----------+
| Adjustments for: | | |
+-------------------------------------------------------+---------+-----------+
| Tax credit | (273) | (1,048) |
+-------------------------------------------------------+---------+-----------+
| Depreciation | 146 | 244 |
+-------------------------------------------------------+---------+-----------+
| Loss on disposal of investment properties | 338 | 9,178 |
+-------------------------------------------------------+---------+-----------+
| Profit on repurchase of debenture stock | (8,956) | - |
+-------------------------------------------------------+---------+-----------+
| Profit on disposal of investment in joint venture | - | (860) |
+-------------------------------------------------------+---------+-----------+
| Profit on disposal of other fixed assets | (3) | (21) |
+-------------------------------------------------------+---------+-----------+
| Realised losses on disposal of listed investments | - | 3,374 |
+-------------------------------------------------------+---------+-----------+
| Finance income | (62) | (303) |
+-------------------------------------------------------+---------+-----------+
| Finance expense | 7,615 | 11,012 |
+-------------------------------------------------------+---------+-----------+
| Share of joint venture losses after tax | 553 | 835 |
+-------------------------------------------------------+---------+-----------+
| Movement in revaluation of investment properties | (25,396 | 107,733 |
+-------------------------------------------------------+---------+-----------+
| Increase in receivables | (1,044) | (52) |
+-------------------------------------------------------+---------+-----------+
| Increase/(decrease) in payables | 1,089 | (3,610) |
+-------------------------------------------------------+---------+-----------+
| Cash generated from operations | 13,575 | 14,918 |
+-------------------------------------------------------+---------+-----------+
13. "Triple" net asset value per share
To assist shareholders in understanding the results, the table below shows how
the "triple" net asset value was arrived at:
+-------------------------------------------------------+---------+---------+
| | 2010 | 2009 |
+-------------------------------------------------------+---------+---------+
| | GBP000 | GBP000 |
+-------------------------------------------------------+---------+---------+
| Closing net assets | 142,912 | 107,202 |
+-------------------------------------------------------+---------+---------+
| Add: debenture issue premium | (331) | (346) |
+-------------------------------------------------------+---------+---------+
| Less: debenture mark to market (after tax at nil%; | 20,297 | 33,667 |
| 2009: nil%) | | |
+-------------------------------------------------------+---------+---------+
| | 162,878 | 140,523 |
+-------------------------------------------------------+---------+---------+
| Shares in issue (000) | 53,161 | 53,149 |
+-------------------------------------------------------+---------+---------+
| "Triple" net asset value per share | 306p | 264p |
+-------------------------------------------------------+---------+---------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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