Interim Results
November 22 2005 - 5:32AM
UK Regulatory
RNS Number:4805U
Wynnstay Properties PLC
22 November 2005
WYNNSTAY PROPERTIES PLC
22 NOVEMBER 2005
Wynnstay Properties PLC
Interim Results for the six months ended 29th September 2005
Chairman's Statement
The results for the half-year show reduced levels of profit and earnings per
share compared with last year relating to non-recurring costs to which I refer
below. Net assets per share reflect the property valuation conducted in March
2005 and are thus substantially above the figure I reported to you a year ago.
The results may be summarised as follows:-
2005 2004
- Profit on Ordinary Activities before - 18.2% #260,000 #318,000
taxation:
- Earnings per share: - 18.3% 5.8p 7.1p
- Interim dividend per share: - 2.3p 2.3p
- Net asset value per share: + 11.5% 377p 338p
(restated)
As anticipated, rental income declined marginally in the first half, reflecting
the profitable sale of the Bognor Regis properties in February 2005. This
decline was largely offset by the income received from the Basingstoke property
which we acquired last Autumn, together with increases from rent reviews and
lease renewals.
The largest of our industrial units at St. Neots, Cambridgeshire, remained
vacant throughout the period, but I am pleased to report that we have recently
made significant progress as regards its re-letting. Despite this, property
outgoings were less than half of those last year, when significant repair costs
were incurred.
As referred to in my statement to Shareholders in June, our office property in
Epsom, which hitherto produced an annual rental of #148,500, became vacant on
expiry of the lease on 29th September. Whilst this will inevitably impact on
our income, a property of this nature presents an opportunity for the Company to
consider alternative strategies and these are being actively pursued. I will
report to you further in this connection when announcing our results for the
full year.
The increase recorded under "administration and other costs" resulted
principally from the Board's decision to make an additional single net
contribution of #56,750 in order to improve the pension provisions of our
Managing Director, Michael Cheesmer, who has decided to retire next year, just
prior to reaching his 65th birthday. Michael's enormous contribution to the
Company's progress over a period of almost 20 years cannot be overestimated and
I will be recording a full tribute to his achievements in my annual statement.
Meanwhile, I am sure Shareholders will wish to join the Directors in wishing
Michael and his wife, Hazel, a long and happy retirement. We expect to be in a
position to announce his successor shortly, which will be a key appointment in
taking the Company forward.
The Board is of the view that there is no purpose in making investment
acquisitions unless these will enhance Shareholder value in the medium to longer
term and whilst we continue to evaluate numerous opportunities, no property
acquisitions took place during the period. Competition in the market remains
fierce, driving prices up and yields down and this situation appears likely to
continue for some time, especially if interest rates remain at their current
levels. There can be no doubt that the value of your Company's properties is
being strongly sustained by these conditions. It is, perhaps, worth noting that
a number of other quoted property companies have opted to remain out of the
market and indeed some have made sizeable disposals.
Our existing #8 million term loan facility is due to expire in June 2006 and I
am pleased to report that we are at an advanced stage in agreeing improved terms
with our bankers for a renewal of this facility.
Whilst this year's results are unlikely to be exciting in terms of headline
profit, our finances remain sound, with net gearing currently below 50%, coupled
with the fact that we have established a much improved portfolio over recent
years. We are well positioned to take advantage of any opportunities that may
occur.
In the light of these results, the Directors have decided to declare an
unchanged interim dividend of 2.3p per share. This will be paid on 15th
December 2005 to those Shareholders on the register on 2nd December 2005. We
will, of course, decide on the appropriate amount to recommend as a final
dividend having regard to the results for the full year.
The financial statements included in this report have been prepared in
accordance with accounting standard FRS 21 which requires that dividends
declared after the balance sheet date are not recognised as a liability.
Accordingly, it has been necessary to restate last year's corresponding interim
results as well as those for the year ended 25th March 2005. The impact is set
out in note 2 on the final page of this report.
Philip G.H. Collins
Chairman
22nd November 2005
Unaudited Consolidated Profit & Loss Account
Six Months ended 29 September 2005
Six Months ended Year ended
29 September 25 March
2005 2004 2005
Restated Restated
(Unaudited) (Audited)
#'000 #'000 #'000
Turnover
Gross Rental Income 812 828 1,676
Fees and Commissions 8 9 17
------------- ------------- -------------
820 837 1,693
Property Outgoings (24) (51) (88)
------------- ------------- -------------
796 786 1,605
Administration and Other Costs (341) (261) (523)
------------- ------------- -------------
Operating Profit 455 525 1,082
Profit on Disposal of Investment Properties - - 443
------------- ------------- -------------
455 525 1,525
Finance Costs (Net) (195) (207) (432)
------------- ------------- -------------
Profit on Ordinary Activities
before Taxation 260 318 1,093
Taxation (78) (95) (243)
------------- ------------- -------------
Profit on Ordinary Activities
after Taxation 182 223 850
Dividends Declared (see note 3) (180) (171) (243)
------------- ------------- -------------
Profit Retained 2 52 607
------------- ------------- -------------
Basic Earnings per share (see note 1) 5.8p 7.1p 26.9p
Unaudited Consolidated Balance Sheet
at 29 September 2005
29 September 2005 29 September 2004 25 March
Restated 2005
(Unaudited) (Unaudited) Restated
(Audited)
#'000 #'000 #'000
Fixed Assets
Tangible Assets 18,750 19,037 18,751
Investments 1 1 1
----------------- ----------------- -----------------
18,751 19,038 18,752
Current Assets
Debtors 85 81 84
Cash at Bank and in Hand 369 217 272
----------------- ----------------- -----------------
454 298 356
Creditors: Amounts falling due
Within one year (799) (713) (704)
----------------- ----------------- -----------------
Net Current Liabilities (345) (415) (348)
----------------- ----------------- -----------------
Total Assets Less Current Liabilities 18,406 18,623 18,404
Creditors: Amounts falling due after more than
one year (see note 2)
(6,200) (7,792) (6,200)
----------------- ----------------- -----------------
12,206 10,831 12,204
Provision for Liabilities and Charges (304) (160) (304)
----------------- ----------------- -----------------
Net Assets 11,902 10,671 11,900
----------------- ----------------- -----------------
Capital and Reserves
Share Capital 789 789 789
Capital Redemption Reserve 205 205 205
Share Premium Account 1,135 1,135 1,135
Capital Reserve 151 151 151
Revaluation Reserve 4,672 4,505 4,672
Distributable Reserves 4,950 3,886 4,948
----------------- ----------------- -----------------
Equity Shareholders' Funds 11,902 10,671 11,900
----------------- ----------------- -----------------
Unaudited Consolidated Cash Flow Statement
Six Months ended 29 September 2005
Year ended
Six Months ended 25 March
29 September
2005 2004 2005
(Unaudited) (Audited)
#'000 #'000 #'000
Cash Flow from Operating Activities (Note A) 521 507 1,163
------------- ------------- -------------
Returns on Investment and Servicing
of Finance
Interest Received 6 6 10
Interest Paid (195) (209) (506)
------------- ------------- -------------
Net Cash (Outflow) from Returns on
Investment and Servicing of Finance (189) (203) (496)
------------- ------------- -------------
Taxation Paid (55) (54) (164)
------------- ------------- -------------
Capital Expenditure and Financial
Investment
Purchase of Tangible Fixed Assets (1) (1,570) (1,571)
Disposal of Tangible Fixed Assets 1 - 1,468
------------- ------------- -------------
Net Cash (Outflow) from Investing Activities - (1,570) (103)
------------- ------------- -------------
Equity Dividends Paid (180) (170) (243)
------------- ------------- -------------
Net Cash Inflow/(Outflow) before Financing 97 (1,490) 157
Financing
Drawdown of Bank Loan - 1,192 1,342
Repayment of Bank Loan - - (1,742)
------------- ------------- -------------
Increase/(Decrease) in Cash in the Period 97 (298) (243)
------------- ------------- -------------
Reconciliation of Net Cash Flow to
Movement in Net Debt
Increase/(Decrease) in Cash in the Period 97 (298) (243)
Cash Inflow/(Outflow) from Debt Financing - (1,192) 400
------------- ------------- -------------
Movement in Net Debt in the Period 97 (1,490) 157
Net Debt at 25 March 2005 (5,928) (6,085) (6,085)
------------- ------------- -------------
Net Debt at 29 September 2005 (Note B) (5,831) (7,575) (5,928)
------------- ------------- -------------
Notes to Cash Flow Statement
A. Reconciliation of Operating Profit to Net Cash Inflow from Operating
Activities
Six Months ended Year ended 25
March
29 September
2005 2004 2005
#'000 #'000 #'000
Operating Profit 455 525 1,082
Depreciation and Amortisation 1 3 4
(Increase)/Decrease in Debtors (1) (22) (24)
Increase/(Decrease) in Creditors 66 1 101
------------- ------------- -------------
Net Cash Inflow from Operating Activities 521 507 1,163
------------- ------------- -------------
B. Analysis of Net Debt
29 September Cash Movement 25 March
2005 2005
#'000 #'000 #'000
Cash at Bank and in Hand 369 97 272
Debt due after more than one year (6,200) - (6,200)
------------- ------------- -------------
Net Debt (5,831) 97 (5,928)
------------- ------------- -------------
Notes
1. Basic earnings per share have been calculated on profits after taxation
attributable to ordinary shareholders of #182,000 (2004: #223,000) and on
3,155,267 ordinary shares, being the weighted average number in issue during
both periods.
2. Shown as a creditor falling due after more than one year in the unaudited
consolidated balance sheet at 29 September 2005 is an amount of #6,200,000,
representing a bank loan repayable on 5 June 2006. Having resolved that the
facility concerned be renewed for a further term, the Directors consider that
any re-classification of this item at the balance sheet date would be
inappropriate.
3. Prior year adjustment
In accordance with accounting standard FRS 21, "Events after the Balance
Sheet Date", dividends which have been declared after the balance sheet date are
not recognised as a liability. Accordingly, adjustments have been made for the
following dividends:
Unaudited
Six Months Audited
Ended Year ended
29 September 2004 25 March 2005
#'000 #'000
Dividend previously provided 73 180
------------------ ------------------
The prior year adjustment arising as a result is analysed as follows:
#'000
Shareholders' Funds at 25 March 2005 as previously stated 11,720
Liability for 2005 final dividend not declared at 25 March 2005 180
------------------
Shareholders' Funds at 25 March 2005 as restated 11,900
------------------
Shareholders' Funds at 26 March 2004 as previously stated 10,449
Liability for 2004 final dividend not declared at 25 March 2004 171
------------------
Shareholders' Funds at 25 March 2005 as restated 10,620
------------------
4. The figures in these statements do not constitute statutory accounts;
those for the year ended 25 March 2005 are extracted from the Group Accounts
which have been filed with the Registrar of Companies and which received an
unqualified report from the Auditors and did not contain a statement under
Section 237(2) or (3) of the Companies Act 1985 as amended.
5. The interim dividend of 2.3p per share will be paid on 15 December 2005
to those shareholders on the register at 2 December 2005.
6. This interim report is being posted to all shareholders and will be
available on application to the Company's registered office at Cleary Court, 21
St. Swithin's Lane, London EC4N 8AD.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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