RNS Number:8338N
Wynnstay Properties PLC
21 June 2005
WYNNSTAY PROPERTIES PLC
21 JUNE 2005
WYNNSTAY PROPERTIES PLC
PRELIMINARY RESULTS FOR YEAR ENDED 25 MARCH 2005
CHAIRMAN'S STATEMENT
Wynnstay has enjoyed another highly satisfactory year in terms of both
profitability and Shareholders' funds.
Overview of Results
Profit before property disposals and taxation continued at a similar level to
that achieved in each of the past two years, despite higher overhead and finance
costs. A substantial surplus over book value was realised from the property
disposal completed in February 2005 to which I refer below, resulting in record
pre-tax profits for the year. In addition, the year end property revaluation
saw a further significant increase in the value of the portfolio. As a result,
Shareholders' funds rose to #11.72 million, compared with #10.45 million last
year.
The results may be summarised as follows: Change 2005 2004
- Profit before property disposals and taxation: - 0.2% #650,000 #651,000
- Profits on ordinary activities before taxation: + 49.3% #1,093,000 #732,000
- Net asset value per share: + 12.1% 371p 331p
- Basic Earnings per share: + 59.2% 26.9p 16.9p
- Dividends per share: + 5.3% 8.0p 7.6p
Property Management
Property income rose by 7.5% to #1,693,000 (2004: #1,575,000). This increase
reflects a full year's contribution from the business centre in Chessington,
acquired in November 2003 and a seven month contribution from the industrial
units at Basingstoke, which we purchased in August 2004.
The portfolio remained fully let and income producing throughout the year, with
two exceptions. We took a surrender of the lease on one of the industrial units
at Basingstoke, negotiated a good settlement with the outgoing tenant as regards
the condition of the property and entered into a new lease at an increased rent
with a local business. As a result, the property has been brought up to
standard without significant expense to the Company. The other vacant property
was let on a temporary basis for six months during the year and has subsequently
undergone extensive repairs, following which it is now being actively
re-marketed. The void costs in this case, including loss of rent, amounted to
approximately #40,000.
We were again fortunate in not incurring any bad debts during the period.
Portfolio
It is pleasing to note that the policy of upgrading and repositioning the
portfolio has been reflected in the revaluation. Sanderson Weatherall,
appointed as the Company's independent valuers following the demise of
Chesterton, valued the portfolio at #18.74 million at the year end. Once again,
among the best performing properties in terms of growth have been the industrial
properties acquired in central southern England over the past few years.
In my interim statement, I reported on the acquisition of our self-contained
industrial investment at Crockford Lane, Basingstoke for a consideration of #1.5
million. This property comprises three adjoining units totalling 22,495 sq.
ft., and from September will produce an increased rental income of #133,150 p.a.
Also at the interim stage, I reported on the exchange of contracts for the
disposal of our office and retail property at Bognor Regis for #1,475,000,
realising a net profit before taxation of #443,000. As a result, the mix of our
portfolio has shifted towards the industrial sector which now accounts for 55%
by value, with the balance comprising 24% offices and 21% retail.
Borrowings and Gearing
Net borrowings at the year-end were #5.93 million (2004: #6.08 million) and, as
a result of Shareholders' funds having increased by #1.27 million, net gearing
at the year-end was 51%, compared with 58% last year.
We are at a preliminary stage in renegotiating our loan facilities and with the
Company having become significantly stronger financially over recent years, it
is anticipated that this should enable us to achieve improved terms.
Dividend
The Directors are recommending a total dividend for the year of 8.0p per share,
compared with 7.6p last year, representing an increase of 5.3%. Subject to
approval at the AGM, a final dividend of 5.7p per share will be paid on 4 August
2005 to Shareholders on the register on 8 July 2005.
Interest Rates
The first half of the year saw further interest rate increases, spurred by rises
in consumer spending and in the residential market. However, concerns on these
issues appear to have abated, with rates having been stable for some months and
with evidence of a significant slowdown in retail spending, lead indicators now
suggest that the next move in rates may be downwards. Should this prove to be
the case, it will be an encouraging sign for commercial property investment.
Outlook
The current year is likely to prove somewhat more challenging with one of our
larger properties likely to become vacant at the half-year. Additionally, our
rental income will inevitably show a decline until we are able to reinvest the
proceeds from our recent property disposal. However, this is not easy as a
result of the scarcity of suitable properties and the prices being sought. The
Board's view is that it is preferable over the short term to monitor the market
rather than risk over-paying, particularly at a time many see as being a mature
stage in the current cycle. With our modest gearing, we are in a strong
financial position to undertake significant levels of investment should
attractive opportunities become available. Although there remain a small number
of properties we would consider selling, it is as yet too early to forecast
whether any disposals will take place during the current financial year.
Philip G H Collins
Chairman
21 June 2005
WYNNSTAY PROPERTIES PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT YEAR ENDED 25 MARCH 2005
2005 2004
#'000 #'000
Turnover
Gross Rental Income 1,676 1,555
Fees and Commissions 17 20
---------------- ----------------
1,693 1,575
Property Outgoings (88) (82)
---------------- ----------------
1,605 1,493
Administrative Expenses (523) (474)
---------------- ----------------
Operating Profit 1,082 1,019
Profit on Disposal of Investment
Properties 443 81
---------------- ----------------
1,525 1,100
Finance Costs
Interest Payable (442) (378)
Investment Income 10 10
---------------- ----------------
(432) (368)
---------------- ----------------
Profit on Ordinary Activities before Taxation 1,093 732
Taxation on Profit from Ordinary Activities (243) (198)
---------------- ----------------
Profit after Taxation Attributable to Ordinary
Shareholders
850 534
Dividends per share:-
Interim Paid: 2.3p 2004: 2.2p (72) (69)
Final Payable: 5.7p 2004: 5.4p (180) (171)
-------- -------- ---------------- ----------------
Total: 8.0p 7.6p (252) (240)
-------- -------- ---------------- ----------------
Retained Profit for the Financial Year 598 294
========= =========
Basic Earnings per Share 26.9p 16.9p
Normalised Earnings per Share 14.5p 14.4p
WYNNSTAY PROPERTIES PLC
CONSOLIDATED BALANCE SHEET AT 25 MARCH 2005
2005 2004
#'000 #'000
Fixed Assets
Tangible Assets 18,751 17,470
Quoted Investments 1 1
---------------- ----------------
18,752 17,471
Current Assets
Debtors 84 60
Cash at Bank and in Hand 272 515
---------------- ----------------
356 575
Creditors: Amounts falling due within one year (884) (837)
---------------- ----------------
Net Current Liabilities (528) (262)
---------------- ----------------
Total Assets Less Current Liabilities 18,224 17,209
Creditors: Amounts falling due after more than one
year
(6,200) (6,600)
---------------- ----------------
12,024 10,609
Provisions for Liabilities and Charges (304) (160)
---------------- ----------------
Net Assets 11,720 10,449
========= =========
Capital and Reserves:
Share Capital 789 789
Reserves
Capital Redemption Reserve 205 205
Share Premium Account 1,135 1,135
Capital Reserve 151 151
Revaluation Reserve 4,672 4,505
---------------- ----------------
Non-Distributable Reserves 6,163 5,996
Profit and Loss Account 4,768 3,664
---------------- ----------------
Equity Shareholders' Funds 11,720 10,449
========= =========
WYNNSTAY PROPERTIES PLC
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 25 MARCH 2005
2005 2004
#'000 #'000
Cash Flow from Operating Activities 1,163 1,073
Returns on Investment and Servicing of Finance
Interest Received 10 10
Interest Paid (506) (306)
------------------ ------------------
Net Cash (Outflow) from Returns on Investment and
Servicing of Finance
(496) (296)
Taxation Paid (164) (118)
Capital Expenditure and Financial Investment
Purchase of Tangible Fixed Assets (1,571) (2,006)
Disposal of Tangible Fixed Assets 1,468 905
------------------ ------------------
Net Cash (Outflow) from Investing Activities (103) (1,101)
Equity Dividends Paid (243) (230)
------------------ ------------------
Net Cash Inflow/(Outflow) before Financing 157 (672)
Financing
Drawdown of Bank Loan 1,342 1,800
Repayment of Bank Loan (1,742) (900)
------------------ ------------------
(Decrease)/Increase in Cash in the Period (243) 228
========== ==========
Reconciliation of Net Cash Flow to Movement in Net Debt
(Decrease)/Increase in Cash in the Period (243) 228
Cash Outflow/(Inflow) from Debt Financing 400 (900)
------------------ ------------------
Movement in Net Debt in the Period 157 (672)
Net Debt at 25 March 2004 (6,085) (5,413)
------------------ ------------------
Net Debt at 25 March 2005 (5,928) (6,085)
========== ==========
WYNNSTAY PROPERTIES PLC
OTHER FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2005
2005 2004
#'000 #'000
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Profit for the Financial Year after Taxation 850 534
Taxation on Realised Property Revaluation (66) -
Unrealised Surplus on Revaluation of Investment Properties 739 779
----------- -----------
Total Recognised Gains and Losses for the Year 1,523 1,313
====== ======
RECONCILIATION OF MOVEMENT OF
SHAREHOLDERS' FUNDS
Opening Shareholders' Funds as at 26 March 2004 10,449 9,376
Profit for the Financial Year after Taxation 850 534
Dividends (252) (240)
Other recognised Gains and Losses - as per Statement of Total
Recognised Gains and Losses
673 779
----------- -----------
Closing Shareholders' Funds as at 25 March 2005 11,720 10,449
====== ======
NOTE OF HISTORICAL COST PROFITS AND LOSSES
Profit on Ordinary Activities before Taxation 1,093 732
Realisation of Property Revaluation Gains on Previous Years 572 71
----------- -----------
Historical Cost Profit on Ordinary Activities before Taxation 1,665 803
====== ======
Historical Cost Profit for the Year Retained after Taxation and
Dividends
1,170 365
====== ======
Notes
1. The financial information above does not constitute full accounts within
the meaning of Section 240 Companies Act 1985 as amended (the "Act"). Full
accounts in respect of the year ended 25th March 2004, on which the auditors
reported without qualification and which contained no statement under Section
237(2) or (3) of the Act, have been delivered to the Registrar of Companies.
2. Basic earnings per share have been calculated on profits after taxation
attributable to Shareholders of #850,000 (2004: #534,000) and on 3,155,267
ordinary shares being the weighted average number of shares in issue in both
periods. Normalised earnings per share have been calculated on profits after
taxation attributable to Shareholders, excluding profit on property disposals,
of #458,000 (2004: #453,000) on the same weighted average of 3,155,267 shares.
3. A final dividend of 5.7p (2004: 5.4p) per share is being recommended and
will be paid on 4 August 2005 to Shareholders on the register at the close of
business on 8 July 2005.
4. The 2005 Annual Report & Financial Statements will be posted to
Shareholders shortly and copies may be obtained by writing to the Secretary,
Wynnstay Properties PLC, Cleary Court, 21 St. Swithin's Lane, London EC4N 8AD.
5. The Company's Annual General Meeting will be held at 12 noon on Thursday
28 July 2005 at The Royal Automobile Club, 89 Pall Mall, London SW1Y 5HS.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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