TIDMTCSC
RNS Number : 0971O
Town Centre Securities PLC
13 September 2011
For immediate release Tuesday 13 September 2011
TOWN CENTRE SECURITIES PLC
Final results for the year ended 30 June 2011
Town Centre Securities PLC ("TCS") the Leeds based property
investment and development company, today announces its final
results, for the year ended 30 June 2011.
Financial highlights
o Underlying profit before tax(1) GBP8.2m (2010: GBP7.6m):
Statutory profit before tax(2) GBP15.4m (2010: GBP39.3m)
o Underlying earnings per share(1) 15.1p (2010: 14.8p): Basic
earnings per share 28.8p (2010: 74.6p)
o Net asset value per share 288p (2010: 269p)
o Triple net asset value per share 341p per share from 306p per
share3
o Discount to net asset value of 43% at last night's closing
share price of 165p
o Total dividend per share of 10.44p (2010: 10.36p). Proposed
final dividend unchanged at 7.34p (2010: 7.34p)(4) .
o Reduced borrowings GBP140.2m (2010: GBP141.3m); Gearing 92%
(2010: 99%)
(1) See notes 6 and 7 for reconciliation to statutory
profit.
(2) Includes valuation surplus of GBP6.7m. 2010 included a
valuation surplus of GBP25.4m and GBP9.0m profit on the debenture
buy back
(3) See note 12
(4) To be paid as a Property Income Distribution ('PID') of
6.25p and an ordinary dividend of 1.09p
Operational highlights:
o Overall occupancy level of 96.9% (2010: 93.2%)
o Merrion Centre income grew for sixth consecutive year
(increase of 3.8%)
o Significant improvement at Urban Exchange, Manchester
following lettings to Go Outdoors, M&S and Pure Gym
o Disposal of assets raised proceeds of GBP6.5m
Commenting on the results, Chairman and Chief Executive Edward
Ziff, said:
"We continue to implement our strategy for growth. Our results
reflect our emphasis on securing income for shareholders and the
returns we have made by investing in our existing portfolio. We
remain cautious about the economy however and are wary of the
potential for tenant failures and pressure on rental levels.
"Our investment in Urban Exchange in Manchester demonstrates our
ability to successfully redevelop and manage major retail assets
and to attract major tenants.
"We firmly believe that projects at Merrion Centre in particular
and across our remaining portfolio will in due course enhance our
asset value and income generation, ultimately improving our returns
and thereby enhancing shareholder value."
For further information, please contact:
Town Centre Securities PLC www.tcs-plc.co.uk
Edward Ziff, Chairman and Chief Executive 0113 222 1234
Chris Kelly, Finance Director
MHP Communications
Reg Hoare / Vicky Watkins 0203 128 8100
Chairman and Chief Executive's Statement
Introduction
I am delighted to report the results of Town Centre Securities
PLC for the year ended 30 June 2011, 50 years after my father,
Arnold Ziff, announced the group's first results in 1961. A
shareholder who invested GBP1,000 on flotation in 1960 has seen the
value of that investment grow to GBP536,000 at 30 June 2011
(source: Arbuthnot Securities). The company has a strong tradition
and legacy which the current board is proud to pursue and
uphold.
Results
This year has been a further year of consolidation. I am pleased
to announce a robust set of results with an increase in underlying
profit before tax to GBP8.2m (2010: GBP7.6m) (excluding exceptional
items and property disposal profits and losses).
Statutory profit after tax amounted to GBP15.3m (2010:
GBP39.6m). This includes a valuation surplus of GBP6.7m reflecting
the returns on investing in and managing our portfolio in what has
otherwise been a flat market. Last year's result included a
valuation surplus of GBP25.4m benefitting from a recovery in market
values generally and a GBP9.0m profit on the debenture buy
back.
Underlying earnings per share were 15.1p (2010: 14.8p). Basic
earnings per share (including exceptional items and property
disposal profits and losses) were 28.8p (2010: 74.6p).
Net assets have increased by 7% to GBP152.9m (2010: GBP142.9m).
Triple net asset value has increased by 11% to GBP181.4m (341p per
share) from GBP162.9m (306p per share).
The total value of our properties is now GBP296.5m (2010:
GBP291.0m). Our investment portfolio, valued externally, has
increased in value on a like for like basis by GBP11.4m (4.3%).
During the year we disposed of properties at Derby, Bradford and
Kings Lynn for proceeds of GBP6.5m, resulting in a profit on
disposal of GBP0.4m.
Our like for like rental income grew by 1.6%, although taking
into account asset sales last year rental income reduced from
GBP23.0m to GBP22.5m.
Underlying property and administrative costs reduced during the
year to GBP8.2m (2010: GBP8.8m). Property costs were GBP4.1m (2010:
GBP4.3m). Administrative expenses were GBP4.1m (2010: GBP4.5m)
reflecting the full year impact of our cost reduction actions.
Dividend
Your board is recommending an unchanged final dividend of 7.34p
per ordinary share. The total dividend is 10.44p (2010: 10.36p) per
ordinary share. The final dividend comprises a Property Income
Distribution ('PID') of 6.25p per share and an ordinary dividend of
1.09p per share. The final dividend and PID will be paid on 4
January 2012 to shareholders on the register on 9 December
2011.
Funding
Net debt at 30 June 2011 was GBP140.2m compared to GBP141.3m a
year ago. This comprised GBP105.8m of 5.375% Debenture maturing in
2031 and GBP34.4m of term loans and other bank borrowings. The
Company continues to operate well within its facilities and
covenants. Gearing is 92% (2010: 99%) and borrowings represent
47.3% of property assets (2010: 48.6%).
Our bank facilities expire in September 2012 and May 2014. We
are already in discussions to extend these facilities to 2015 and
2016. Inevitably we will incur higher borrowing costs compared to
the more favourable margins in our existing facilities. We also put
in place interest rate hedging arrangements.
Strategy - Property Portfolio
Our objective is to generate good returns to shareholders
through strong income to support a sustainable dividend and
investment in our portfolio to drive growth in net asset value. We
enhance our existing portfolio through active asset management and
acquire new property investments where we can add value.
Our best short term opportunities lie within our existing
portfolio, particularly the Merrion Centre which comprises over 40%
of our portfolio by value. We are redeveloping and enhancing the
Centre in accordance with our master plan.
We believe that opportunities where we can grow income and
secure additional value through applying our in house expertise
will become available.
Strategy - Car Parking
Car Parking remains a key element of our strategy, recognising
the opportunity to develop strong income streams from the right
assets. We are considering a major refurbishment of Merrion Centre
multi-storey car park to ensure we derive maximum benefit from the
Merrion Centre's proximity to the new Leeds Arena by making it the
car park of choice for Arena events. In the meantime we are
improving the utilisation of our car parks and continue to seek new
acquisitions.
Performance - Property Portfolio
Our portfolio has remained largely unchanged during the year. We
disposed of our property in Derby, which was let to Curry's, for
just over GBP5m at a net yield of 6.4% and also sold small
properties in Kings Lynn and Bradford for GBP1.5m.
We have been particularly successful in increasing occupancy
levels this year. At 30 June 2011 our occupancy level was almost
97% (2010: 93%) Much of the increase in occupancy was achieved
through lettings to Go Outdoors, M&S and Pure Gym at Urban
Exchange in Manchester. I am delighted at our progress in
converting the property previously let in its entirety to ILVA, and
which had been empty for over a year, into a successful multi let
site. Occupancy at the Merrion Centre was also 97% at the end of
June. Capital expenditure during the year was GBP4.8m of which
GBP3.5m was incurred in reconfiguring Urban Exchange and GBP1.3m on
other capital projects.
Overall rental income grew by 1.6% on a like for like basis,
with Merrion Centre growing by 3.8%. Ninety nine per cent of rents
were collected within five days of the due date. However, we cannot
afford to be complacent against a back drop of poor like for like
sales reported by many high street retailers and a fragile economic
recovery.
Performance - Car Parking
Car parking revenues of GBP4.8m were similar to the previous
year. We benefitted from additional contracts with Yorkshire Water
and GE Capital at Clarence Dock multi storey car park. Since taking
over the operation of the Merrion Centre multi-storey car park we
have increased daily parking by 8%. This has also led to improved
footfall in the Merrion Centre, particularly at weekends.
We increased our central sales and operations capability during
the year. Overall profits at Town Centre Car Parks reduced by
GBP0.2m.
Merrion Centre Development
Construction has commenced on the new Leeds Arena, a 13,500 seat
concert and events venue located immediately opposite the Merrion
Centre. This has presented us with a number of opportunities
including a leisure development of bars, restaurants and a gym to
replace the former Merrion Market creating a new frontage for the
Centre.
A detailed planning application has been lodged and subject to a
satisfactory consent, we expect to be on site first quarter of 2012
with a completion to coincide with the Arena opening in Spring
2013. In addition we will shortly complete the refurbishment of the
retail units and offices on Merrion Street where we have pre lets
to KFC, Coral and Q Park.
Outlook
We continue to implement our strategy for growth. Our results
reflect our emphasis on securing income for shareholders and the
returns we have made by investing in our existing portfolio. We
remain cautious about the economy however and are wary of the
potential for tenant failures and pressure on rental levels. We
continue to closely manage our cost base, which is now appropriate
for a business of our size.
We firmly believe that projects at Merrion Centre and across our
portfolio will in due course enhance our asset value and income
generation, ultimately improving our returns and thereby enhancing
shareholder value. To achieve this we expect to increase the level
of our debt.
Given prevailing economic conditions we expect rental income to
remain at current levels as improvements achieved at Urban Exchange
are balanced by pressure on retail rents elsewhere. Our
profitability will be affected by increased finance costs relating
to the renewal of our banking facilities.
Our team has worked extremely hard this year and has delivered
excellent results in such challenging times. Their unstinting
support is extraordinary and is hugely appreciated. I would like to
express my thanks to each and every one of them on behalf of the
board for their continued contribution to the business.
E M ZIFF
Chairman and Chief Executive
PROPERTY REVIEW
Portfolio Performance
The independent valuation of our investment portfolio has once
again been split between Jones Lang LaSalle and CB Richard Ellis.
The value of our investment portfolio as at 30 June 2011 stands at
GBP279.1m representing an increase in the year of 4.3% on a like
for like basis.
Proportion
of Valuation
PORTFOLIO PERFORMANCE Value Portfolio Movement
GBPm % %
Retail 80.1 28.7% -1.8%
Merrion Centre (excl offices) 80.7 28.8% 6.3%
Office 54.6 19.6% 3.8%
Car Parking 13.6 4.9% 2.3%
Out of Town Retail 42.9 15.4% 13.2%
Residential 7.2 2.6% 12.5%
Total Portfolio 279.1 100.0% 4.3%
------------------------------- ------ ----------- ----------
The overall initial yield on our passing rents is 7% with a
reversionary yield of 7.1%. Income grew by 1.6% on a like for like
basis with three tenant administrations and over 100 lease renewals
and extensions.
The Merrion Centre which accounts for 42% of our investment
portfolio performed well growing in value by 6% to GBP117.3m (2010:
GBP110.7m) with income rising by 3.8%.
GEOGRAPHICAL SPLIT BY LOCATION
GBPm % by value
Yorkshire and North East
(Merrion) 117.3 42.0%
Yorkshire and North East
(rest) 42.0 15.1%
North West 45.7 16.4%
Scotland 70.7 25.3%
London 3.4 1.2%
Total Portfolio 279.1 100.0%
Of the remaining portfolio, the Supermarket and Retail
Warehousing investment values grew by 8% and 12% respectively
offsetting a disappointing fall in the value of our retail
portfolio in Scotland where downward rental pressures continue.
Acquisitions and Disposals
We made no acquisitions during the period although we continue
to closely monitor the market place seeking opportunities where we
consider added value can be created.
We made three disposals with proceeds totalling GBP6.5m.
Portfolio Review
Our focus on the management of our existing portfolio has
successfully resulted in a reduction in void levels which now stand
at 3.1% (2010: 6.8% and 2009: 8.4%). This has predominantly been
achieved through lettings to Go Outdoors (55,000 sq ft), M & S
(22,000 sq ft) and Pure Gym (18,000 sq ft) at our Urban Exchange
retail store in Manchester. There remains just one unit of 7,200 sq
ft available following completion of the construction works to
create the separate units.
The letting of three new units created within the Merrion Centre
on the Mall leading from Woodhouse Lane has led to a subsequent
increase in footfall.
Passing Proportion Initial Reversionary
LEASE PROFILE rent of ERV yield Yield
portfolio
GBPm %
Retail 6.0 32.4% 5.7 7.1% 7.0%
Merrion Centre (excl
offices) 6.5 35.1% 6.6 7.3% 7.5%
Office 4.3 23.2% 4.1 7.4% 7.3%
Out of Town
Retail 1.7 9.3% 2.7 6.1% 6.8%
Let portfolio 18.5 100.0% 19.1 7.0% 7.1%
Urban Exchange
void 0.1
Merrion excl offices
void 0.2
Other voids 0.3
Total portfolio 19.7
Our focus remains concentrated in the major conurbations of
Leeds, Manchester, Glasgow and Edinburgh. Retail investment is core
to our portfolio whether high street, shopping centre (Merrion) or
Supermarkets and Retail Warehousing, accounting for 73% by value.
The remainder is equally balanced between offices and our car
parking subsidiary together with only a small amount of residential
(principally above some of our high street shops).
We maintain good security of income with 35.4% having over 10
years to expiry (2010: 40%).
Analysis by lease
RENT ROLL BY LEASE EXPIRY AND VOIDS expiry Voids%
Over 10
0-5 years 5-10 years years
% % %
Retail 38.9% 27.4% 33.7% 3.1%
Shopping Centres 53.1% 20.9% 26.0% 3.0%
Office 23.7% 36.7% 39.6% 2.8%
Out of Town
Retail 0.0% 42.6% 57.4% 4.0%
Total Portfolio 35.1% 29.5% 35.4% 3.1%
Leeds City Council is our biggest single tenant by rental income
(GBP1.4m per annum) with over 20 years to expiry followed by W M
Morrison and Waitrose.
TOP 10 TENANTS
- Passing Rent GBP1m+ Leeds City Council
- Between GBP500k W M Morrison
- GBP1m
Waitrose
Homebase
Matalan
- Between GBP250k The Foundation for Credit Counselling
- GBP500K
Yum! Brands, Inc KFC/Pizza Hut)
Poundstretcher Ltd
Dune Group Ltd
Luminar Oceana Ltd
Development
We are beginning to see renewed interest in our Whitehall
Riverside site in Leeds from some of the larger professional
practices who are considering relocation. We have secured our
retail planning consent in Rochdale (125,000 sq ft) and since the
year end have entered into a joint venture arrangement with Metric
Property Investments plc to bring forward the development once
suitable occupiers have been identified.
Town Centre Car Parks
Car park revenues amounted to GBP4.8m (2010: GBP4.7m). Our
portfolio of 4,000 spaces includes three multi storey car parks
with 2,980 spaces and over 1,000 spaces on surface sites in Leeds
and Manchester.
On 1 July 2010 we took over the operation of Merrion Centre
Multi Storey Car Park which has enabled us to increase daily
parking numbers by 8% and this has had a positive impact on the
retail footfall. We have also undertaken considerable amounts of
investigative work on the car park in preparation for the proposed
refurbishment.
We have further developed our car park brand and have focussed
on the presentation of our sites and customer service standards.
Our multi storey car parks continue to achieve the ParkMark awards
for safe, secure and crime free car parks. Our customers appreciate
the friendly and reliable service we provide, including the 24/7
opening hours at our multi storey sites and CCTV surveillance.
The recent opening of Go Outdoors, M&S and Pure Gym at Urban
Exchange is anticipated to increase use of our multi storey and
surface car parks.
R A LEWIS
PROPERTY DIRECTOR
Finance Review
Income Statement
The Company's financial position strengthened during the
year.
Our underlying profit before tax was GBP8.2m (2010: GBP7.6m).
This result excludes all exceptional items and property disposal
profits and losses. A reduction in rental income was largely offset
by reductions in property and administrative expenses, resulting in
underlying operating profit before interest of GBP15.0m (2010:
GBP15.2m).
Statutory profit after tax amounted to GBP15.3m (2010: GBP39.6m)
including a GBP6.7m increase in the value of our investment
portfolio. Last year's result included a valuation increase of
GBP25.4m and a GBP9.0m profit on the debenture buy back.
Underlying administrative expenses reduced by GBP0.4m reflecting
the benefit of reduced operating costs for a full year. Property
expenses (excluding car parks) reduced from GBP2.2m to GBP1.8m as a
consequence of our portfolio being substantially let. Car park
expenses amounted to GBP2.3m (2010: GBP2.0m).
Net interest costs were GBP6.8m (2010: GBP7.6m). Our bank debt
remained unhedged until the end of March at which point we entered
into interest rate swaps and cap arrangements over GBP30m of debt
to protect our exposure to future interest rates. Interest cover
was 2.2 times (2010: 2.0 times).
Balance sheet
Net asset value at the end of the year was GBP152.9m compared to
GBP142.9m at 30 June 2010. This represents net assets of 288p per
share (2010: 269p per share). Our property portfolio (excluding
properties owned by joint ventures) is now valued at GBP296.5m
(2010: GBP291.0m). Of this amount GBP279.1m (2010: GBP272.5m) was
externally valued with a further GBP17.4m (2010: GBP18.5m) valued
by the Directors.
Net borrowings at the year end were GBP140.2m (2010: GBP141.3m).
Gross borrowings comprised GBP106.0m of debenture loan, GBP34.0m of
bank loans and GBP0.5m of money market loans.
Gearing now stands at 92% (2010: 99%) and net borrowings
represent 47.3% of property assets compared to 48.6% a year
ago.
At the year end we had unutilised revolving credit facilities
amounting to GBP51m (2010: GBP50m) and undrawn overdraft and money
market facilities of GBP14.5m (2010: GBP14.2m).
As stated in the Chairman's and Chief Executive's statement we
are in discussions to refinance our bank facilities.
Cash flow
Cash flows during the year from operations amounted to GBP13.8m
(2010: GBP13.6m). After net interest payments of GBP7.0m (2010:
GBP7.8m) and tax payments of GBP0.9m (2010: GBPnil) the net cash
generated of GBP5.9m (2010: GBP5.8m) was absorbed by expenditure of
GBP3.1m on refurbishing properties and REIT entry charge payments
of GBP2.5m. Funds generated from property disposals amounted to
GBP6.5m. Dividend payments accounted for cash outflows of GBP5.3m,
leaving a net increase in cash and cash equivalents of GBP0.3m.
Dividend
We paid an interim dividend of 3.10p per share and the final
dividend of 7.34p per share brings the total dividend for the year
to 10.44p per share (2010: 10.36p per share). This comprises PID
payments of 9.35p per share and an ordinary dividend of 1.09p per
share.
Taxation and REIT
We paid tax of GBP0.9m during the year all of which related to
prior years and REIT entry charge payments of GBP2.5m. We have REIT
entry payments totalling GBP1.3m to make in 2011 which will bring
to an end the payment of our entry charge.
C J KELLY
FINANCE DIRECTOR
Consolidated Income Statement
for the year ended 30 June 2011
2011 2010
Notes GBP000 GBP000
---------------------------------------------- ------ -------- --------
Gross revenue 2 22,477 22,951
Property expenses 3 (4,081) (4,265)
---------------------------------------------- ------ -------- --------
Net revenue 18,396 18,686
Administrative expenses 4 (4,138) (6,098)
Other income 628 796
Profit/(loss) on disposal of investment
properties 323 (569)
Profit on disposal of development properties 53 231
Profit on disposal of other fixed assets 12 3
Profit on repurchase of debenture stock - 8,956
Valuation movement on investment properties 9 6,761 25,441
Impairment loss on development properties 9 (22) (45)
---------------------------------------------- ------ -------- --------
Operating profit 22,013 47,401
Finance income 93 62
Finance costs (6,902) (7,615)
Share of post tax profits/(losses) from
joint ventures 243 (553)
---------------------------------------------- ------ -------- --------
Profit before taxation 15,447 39,295
Taxation (charge)/credit 5 (152) 273
---------------------------------------------- ------ -------- --------
Profit for the year attributable to the
owners of the Parent 15,295 39,568
---------------------------------------------- ------ -------- --------
Earnings per ordinary share of 25p each 6
Basic 28.8p 74.6p
Diluted 28.8p 74.6p
Underlying (non-GAAP measures) 15.1p 14.8p
---------------------------------------------- ------ -------- --------
Dividends per ordinary share 8
Paid during the period 10.44p 8.42p
Proposed 7.34p 7.34p
---------------------------------------------- ------ -------- --------
Consolidated statement of comprehensive income
for the year ended 30 June 2011
2011 2010
Notes GBP000 GBP000
-------------------------------------------------------- ------- -------
Profit for the financial period 15,295 39,568
Other comprehensive income
Revaluation (losses)/gains on cash flow hedges (412) 548
Revaluation gains on other investments 653 50
--------------------------------------------------------- ------- -------
Total comprehensive income for the year 15,536 40,166
--------------------------------------------------------- ------- -------
All recognised income for the year is attributable to the owners
of the Parent.
Consolidated balance sheet
as at 30 June 2011
2011 2010
Notes GBP000 GBP000
------------------------------------------ ------ ---------- ----------
Non-current assets
Investment properties 9 283,137 276,760
Development properties 9 13,348 13,333
Fixtures, equipment and motor vehicles 9 760 670
Investments in joint ventures 2,629 2,495
Unamortised tenant lease incentives 2,219 1,514
------------------------------------------ ------ ---------- ----------
Total non-current assets 302,093 294,772
------------------------------------------ ------ ---------- ----------
Current assets
Investments 1,212 559
Non-current assets held for sale - 892
Trade and other receivables 3,881 4,207
Total current assets 5,093 5,658
------------------------------------------ ------ ---------- ----------
Total assets 307,186 300,430
------------------------------------------ ------ ---------- ----------
Current liabilities
Financial liabilities - borrowings (470) (784)
Trade and other payables (12,420) (11,643)
Fair value of derivative (486) (74)
Current tax liabilities (1,224) (3,162)
------------------------------------------ ------ ---------- ----------
Total current liabilities (14,600) (15,663)
------------------------------------------ ------ ---------- ----------
Net current liabilities (9,507) (10,005)
------------------------------------------ ------ ---------- ----------
Non-current liabilities
Non-current tax liabilities - (1,318)
Financial liabilities - borrowings (139,691) (140,537)
------------------------------------------ ------ ---------- ----------
Total non-current liabilities (139,691) (141,855)
------------------------------------------ ------ ---------- ----------
Total liabilities (154,291) (157,518)
------------------------------------------ ------ ---------- ----------
Net assets 152,895 142,912
------------------------------------------ ------ ---------- ----------
Equity attributable to the owners of the
Parent
Called up share capital 10 13,290 13,290
Share premium account 198 198
Other reserves 73 485
Retained earnings 139,334 128,939
------------------------------------------ ------ ---------- ----------
Total equity 152,895 142,912
------------------------------------------ ------ ---------- ----------
Net assets per share 288p 269p
------------------------------------------ ------ ---------- ----------
Consolidated statement of changes in equity
as at 30 June 2011
Share Capital
Share premium Hedging redemption Retained Total
capital account reserve(1) reserve(1) earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- -------- -------- ----------- ----------- --------- --------
Balance at 1
July 2009 13,287 185 (622) 559 93,793 107,202
--------------- -------- -------- ----------- ----------- --------- --------
Profit for the
year - - - - 39,568 39,568
Other
comprehensive
income:
Revaluation
losses on
cash flow
hedge - - 548 - - 548
Revaluation
losses on
other
investments - - - - 50 50
--------------- -------- -------- ----------- ----------- --------- --------
Total
comprehensive
income for
the year
ended 30 June
2010 - - 548 - 39,618 40,166
--------------- -------- -------- ----------- ----------- --------- --------
Issued on take
up of share
options 3 13 - - - 16
Other
adjustments - - - - 3 3
Final dividend
relating to
the year
ended 30 June
2009 paid in
January 2010 - - - - (2,870) (2,870)
Interim
dividend
relating to
the year
ended 30 June
2010 paid in
March 2010 - - - - (1,605) (1,605)
--------------- -------- -------- ----------- ----------- --------- --------
3 13 - - (4,472) (4,456)
--------------- -------- -------- ----------- ----------- --------- --------
Balance at 30
June 2010 13,290 198 (74) 559 128,939 142,912
--------------- -------- -------- ----------- ----------- --------- --------
Balance at 1
July 2010 13,290 198 (74) 559 128,939 142,912
--------------- -------- -------- ----------- ----------- --------- --------
Profit for the
year - - - - 15,295 15,295
Other
comprehensive
income:
Revaluation
losses on
cash flow
hedge - - (412) - - (412)
Revaluation
gains on
other
investments - - - - 653 653
--------------- -------- -------- ----------- ----------- --------- --------
Total
comprehensive
income for the
period
ended 30 June
2011 - - (412) - 15,948 15,536
--------------- -------- -------- ----------- ----------- --------- --------
Other
adjustments - - - - (3) (3)
Final dividend
relating to
the year
ended 30 June
2010 paid in
January 2011 - - - - (3,902) (3,902)
Interim
dividend
relating to
the year
ended 30 June
2011 paid in
June 2011 - - - - (1,648) (1,648)
- - - - (5,553) (5,553)
--------------- -------- -------- ----------- ----------- --------- --------
Balance at 30
June 2011 13,290 198 (486) 559 139,334 152,895
--------------- -------- -------- ----------- ----------- --------- --------
(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 2011
-------------
2011 2010
----------- -------------
Notes GBP000 GBP000 GBP000 GBP000
--------------------------- ------ -------- ---------- ----------- -----------
Cash flows from operating
activities
Cash generated from
operations 11 13,786 13,575
Interest paid (7,056) (7,782)
Interest received 25 9
Tax paid (861) -
--------------------------- ------ -------- ---------- ----------- -----------
Net cash generated from
operating activities 5,894 5,802
--------------------------- ------ -------- ---------- ----------- -----------
Cash flows from investing
activities
Purchases and
refurbishment of
investment properties (3,048) (4,919)
Property development (29) (105)
Purchases of plant and
equipment (277) (196)
REIT entry charge
instalment payment (2,547) (2,359)
Proceeds from sale of
investment properties 5,517 22,426
Proceeds from sale of
development property 945 392
Proceeds from sale of
machinery, plant and
equipment 12 19
Dividends received from
joint venture 100 100
Decrease/(increase) of
loan to joint ventures 9 (586)
--------------------------- ------ -------- ---------- ----------- -----------
Net cash generated from
investing activities 682 14,772
--------------------------- ------ -------- ---------- ----------- -----------
Cash flows from financing
activities
Proceeds from issue of
share capital - 16
Proceeds from other
non-current borrowings - 8,000
Repayment of other
non-current borrowings (1,000) -
Release of cash held
against debenture - 18,825
Re-purchase of debenture
stock - (35,043)
Dividends paid to
shareholders (5,262) (4,475)
--------------------------- ------ -------- ---------- ----------- -----------
Net cash used in financing
activities (6,262) (12,677)
--------------------------- ------ -------- ---------- ----------- -----------
Net increase in cash and
cash equivalents 314 7,897
Cash and cash equivalents
at 1 July (784) (8,681)
--------------------------- ------ -------- ---------- ----------- -----------
Cash and cash equivalents
at 30 June (470) (784)
--------------------------- ------ -------- ---------- ----------- -----------
The Cash Flow Statement should be read in conjunction with Note
11.
Basis of preparation
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 30 June 2011 or
2010 but is derived from those accounts. Statutory accounts for
2010 have been delivered to the registrar of companies, and those
for 2011 will be delivered in due course. The auditors have
reported on those accounts; their reports were (i) unqualified, and
(ii) did not contain 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 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 2010, 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
2011 2010
GBP000 GBP000
--------------------- -------- --------
Property rental 292,863 286,510
Car park operations 14,323 13,920
--------------------- -------- --------
307,186 300,430
--------------------- -------- --------
Segmental results
2011 2010
--------- ----------- -------- -------------------- --------
Property Car park Property Car park
rental operations Total rental operations Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------------- --------- ----------- -------- ----------- ----------- --------
Gross revenue 17,712 4,765 22,477 18,211 4,740 22,951
Property expenses (1,823) (2,258) (4,081) (2,249) (2,016) (4,265)
--------------------- --------- ----------- -------- ----------- ----------- --------
Net revenue 15,889 2,507 18,396 15,962 2,724 18,686
--------------------- --------- ----------- -------- ----------- ----------- --------
Administrative
expenses (3,961) (177) (4,138) (5,928) (170) (6,098)
Other income 628 - 628 796 - 796
Property valuation
movement 6,439 300 6,739 24,896 500 25,396
Other items 388 - 388 8,621 - 8,621
--------------------- --------- ----------- -------- ----------- ----------- --------
Operating profit 19,383 2,630 22,013 44,347 3,054 47,401
--------------------- --------- ----------- -------- ----------- ----------- --------
Finance income 93 - 93 62 - 62
Finance costs (6,902) - (6,902) (7,615) - (7,615)
Share of post tax
profits/ (losses)
from joint
ventures 243 - 243 (553) - (553)
--------------------- --------- ----------- -------- ----------- ----------- --------
Profit before
taxation 12,817 2,630 15,447 36,241 3,054 39,295
--------------------- --------- ----------- -------- ----------- ----------- --------
Taxation
(charge)/credit (152) - (152) 153 120 273
--------------------- --------- ----------- -------- ----------- ----------- --------
Profit for the year 12,665 2,630 15,295 36,394 3,174 39,568
--------------------- --------- ----------- -------- ----------- ----------- --------
2. Gross revenue
2011 2010
GBP000 GBP000
------------------------------------------ ------- -------
Rental income from investment properties 17,712 18,211
Income from car park activities 4,765 4,740
------------------------------------------ ------- -------
22,477 22,951
------------------------------------------ ------- -------
3. Property expenses
2011 2010
GBP000 GBP000
------------------- ------- -------
Car park expenses 2,201 1,970
Depreciation 57 46
Other 1,823 2,249
4,081 4,265
------------------- ------- -------
4. Administrative expenses
2011 2010
GBP000 GBP000
------------------------------------ ------- -------
Remuneration 2,875 3,143
Depreciation 118 92
Charitable donations 75 53
Other 1,070 1,217
Non-recurring items:
- Exceptional pension contribution - 1,365
- Staff severance costs - 228
------------------------------------ ------- -------
4,138 6,098
------------------------------------ ------- -------
The Income Statement charge for share-based payments in
accordance with IFRS 2 is not material.
5. Taxation
2011 2010
GBP000 GBP000
------------------------------------------- ------- -------
Analysis of tax charge/(credit) in period
Current tax:
- Current year - -
- Adjustment in respect of previous years 152 (273)
------------------------------------------- ------- -------
Total taxation 152 (273)
------------------------------------------- ------- -------
6. Earnings per share ("EPS")
2011 2010
--------- --------- --------- ------------------ ---------
Weighted Weighted
average average
number number
of Earnings of Earnings
per per
Earnings shares share Earnings shares share
GBP000 000 Pence GBP000 000 Pence
------------------------ --------- --------- --------- ----------- --------- ---------
Basic EPS
Earnings and earnings
per share 15,295 53,028 28.8 39,568 53,055 74.6
Effect of dilutive
securities
Options - 6 - - 6 -
------------------------ --------- --------- --------- ----------- --------- ---------
Diluted EPS 15,295 53,034 28.8 39,568 53,061 74.6
------------------------ --------- --------- --------- ----------- --------- ---------
Basic EPS 15,295 53,028 28.8 39,568 53,055 74.6
(Profit)/loss on
disposal of
properties (376) - (0.7) 338 - 0.6
Profit on repurchase of
debenture stock - - - (8,956) - (16.9)
Exceptional pension
contribution - - - 1,365 - 2.6
Valuation movement on
properties (6,739) - (12.7) (25,396) - (47.9)
Revaluation movement on
investment properties
in joint ventures (150) - (0.3) 726 - 1.4
Staff severance costs - - - 228 - 0.4
------------------------ --------- --------- --------- ----------- --------- ---------
Underlying EPS 8,030 53,028 15.1 7,873 53,055 14.8
------------------------ --------- --------- --------- ----------- --------- ---------
Diluted EPS 15,295 53,034 28.8 39,568 53,061 74.6
(Profit)/loss on
disposal of
properties (376) - (0.7) 338 - 0.6
Profit on repurchase of
debenture stock - - - (8,956) - (16.9)
Exceptional pension
contribution - - - 1,365 - 2.6
Valuation movement on
properties (6,739) - (12.7) (25,396) - (47.9)
Revaluation movement on
investment properties
in joint ventures (150) - (0.3) 726 - 1.4
Staff severance costs - - - 228 - 0.4
------------------------ --------- --------- --------- ----------- --------- ---------
Diluted underlying EPS 8,030 53,034 15.1 7,873 53,061 14.8
------------------------ --------- --------- --------- ----------- --------- ---------
Underlying earnings and earnings per share have been disclosed
in order that the effects of disposal gains and 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 before taxation are:
2011 2010
GBP000 GBP000
--------------------------------------------------------- -------- ---------
Profit before taxation 15,447 39,295
Less: valuation movement on investment properties (6,761) (25,441)
Less: (profit)/loss on disposal of investment properties (323) 569
Less: profit on disposal of development properties (53) (231)
Less: profit on disposal of other fixed assets (12) (3)
Less: revaluation (surplus)/deficit - joint ventures (150) 726
Less: profit on repurchase of debenture stock - (8,956)
Add: tax on joint ventures 25 22
Add: impairment loss on valuation of development
property 22 45
Add: exceptional pension contribution - 1,365
Add: staff severance costs - 228
Underlying profit 8,195 7,619
--------------------------------------------------------- -------- ---------
8. Dividends
2011 2010
GBP000 GBP000
---------------------------------------- ------- -------
2009 final paid: 5.4p per 25p share - 2,870
2010 interim paid: 3.02p per 25p share - 1,605
2010 final paid: 7.34p per 25p share 3,902 -
2011 interim paid: 3.10p per 25p share 1,648 -
---------------------------------------- ------- -------
5,550 4,475
---------------------------------------- ------- -------
The Directors are proposing a final dividend in respect of the
financial year ended 30 June 2011 of 7.34p per share, which will
absorb an estimated GBP3,902,000 of shareholders' funds. This
dividend will comprise an ordinary dividend of 1.09p per share and
a Property Income Distribution ("PID") of 6.25p per share, and will
be paid on 4 January 2012 to shareholders who are on the Register
of Members on 9 December 2011.
9. Non-current assets
(a) Investment properties
Long
Freehold leasehold Total
GBP000 GBP000 GBP000
----------------------------------- --------- ---------- ---------
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)
Valuation movement 25,991 (550) 25,441
----------------------------------- --------- ---------- ---------
Valuation at 30 June 2010 261,790 14,970 276,760
----------------------------------- --------- ---------- ---------
Valuation at 1 July 2010 261,790 14,970 276,760
Investment property refurbishment 4,752 59 4,811
Disposals (5,195) - (5,195)
Valuation movement 6,438 323 6,761
----------------------------------- --------- ---------- ---------
Valuation at 30 June 2011 267,785 15,352 283,137
----------------------------------- --------- ---------- ---------
Certain investment properties including operational car parks
have been revalued as at 30 June 2011 on the basis of open market
value by Jones Lang LaSalle and CB Richard Ellis at GBP279,120,000
(2010: GBP272,460,000) in accordance with the Royal Institution of
Chartered Surveyors Appraisal and Investment Manual. Certain other
freehold properties have been valued at GBP4,017,000 by the
Directors (2010: GBP4,300,000).
The Directors' valuation of residential property acquired for
potential development and industrial property is supported by
market evidence available as at 30 June 2011.
Investment properties are analysed as follows:
2011 2010
GBP000 GBP000
--------------------------------------------------------- -------- --------
Investment property (externally valued) 279,120 272,460
Residential property acquired for potential development 3,804 3,804
Industrial property - 445
Other 213 51
--------------------------------------------------------- -------- --------
283,137 276,760
--------------------------------------------------------- -------- --------
(b) Development properties
GBP000
---------------------------------------------- -------
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
---------------------------------------------- -------
Cost at 1 July 2010 13,333
Additions 37
Impairment (22)
Cost at 30 June 2011 13,348
---------------------------------------------- -------
The Directors have considered the valuation of development
properties in 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 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
-------------------------------- ------- -------------
At 1 July 2010 2,587 1,917
Additions 273 -
Disposals (102) (102)
Depreciation - 183
-------------------------------- ------- -------------
At 30 June 2011 2,758 1,998
-------------------------------- ------- -------------
Net book value at 30 June 2011 760
-------------------------------- ------- -------------
10. Share capital
Authorised
164,879,000 (2010: 164,879,000) ordinary shares of 25p each.
Nominal value of authorised share capital is GBP41,219,750 (2010:
GBP41,219,750).
Issued and fully paid
Number
of Nominal
shares value
Ordinary shares of 25p each 000 GBP000
------------------------------ ------- --------
At 1 July 2009 53,149 13,287
Issued on take-up of options 12 3
------------------------------ ------- --------
At 30 June 2010 53,161 13,290
------------------------------ ------- --------
At 30 June 2011 53,161 13,290
------------------------------ ------- --------
11. Cash flow from operating activities
2011 2010
GBP000 GBP000
----------------------------------------------------- -------- ---------
Profit for the financial year 15,295 39,568
Adjustments for:
Tax charge/(credit) 152 (273)
Depreciation 183 146
(Profit)/loss on disposal of investment properties (323) 569
Profit on repurchase of debenture stock - (8,956)
Profit on disposal of development property (53) (231)
Profit on disposal of other fixed assets (12) (3)
Finance income (93) (62)
Finance expense 6,902 7,615
Share of joint venture (profits)/losses after tax (243) 553
Movement in valuation of investment and development
properties (6,739) (25,396)
Increase in receivables (332) (1,044)
(Decrease)/increase in payables (951) 1,089
----------------------------------------------------- -------- ---------
Cash generated from operations 13,786 13,575
----------------------------------------------------- -------- ---------
12. "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:
2011 2010
GBP000 GBP000
--------------------------------------------------- -------- --------
Closing net assets 152,895 142,912
Less: debenture issue premium (223) (331)
Add: debenture mark to market (after tax at nil%;
2010: nil%) 28,722 20,297
--------------------------------------------------- -------- --------
181,394 162,878
--------------------------------------------------- -------- --------
Shares in issue (000) 53,161 53,161
"Triple" net asset value per share 341p 306p
--------------------------------------------------- -------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR LTMRTMBBBBIB
Town Centre (LSE:TCSC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Town Centre (LSE:TCSC)
Historical Stock Chart
From Jul 2023 to Jul 2024
