Final Results
June 19 2001 - 8:04AM
UK Regulatory
RNS Number:4952F
Wynnstay Properties PLC
19 June 2001
Wynnstay Properties PLC
19 June 2001
WYNNSTAY PROPERTIES PLC ("the Company" or "Wynnstay")
PRELIMINARY RESULTS FOR THE YEAR ENDED 25TH MARCH 2001
CHAIRMAN'S STATEMENT
I am pleased to report a year of continuing change and further satisfactory
progress for your Company. The headline figures for the year ended 25th March
2001 are:
2001 2000
* Profit before exceptional items and - 4.2% #498,000 #520,000
taxation
* Profit before taxation + 1.0% #505,000 #500,000
* Net asset value per share + 9.2% 238p 218p
* Basic and Diluted Earnings per share + 2.4% 12.9p 12.6p
* Recommended total dividend per share + 5.0% 6.3p 6.0p
It is encouraging to note that profit before taxation marginally exceeded last
year's record level, despite lower rental income resulting from the programme
of disposals and subsequent reinvestment. This was partially achieved by
continuing to pay rigorous attention to cost control, with property and
overhead expenditure rising by just 2%. In addition, although interest rates
were, on average, appreciably higher than in the previous year, net finance
costs actually declined compared with last year, as a result of efficient cash
management and reduced borrowings. Net gearing at 25th March 2001 was 83%,
compared with 85% last year. The low taxation charge of 19.2% (2000 - 20.6%),
reflects the further clawback of ACT previously written off, details of which
are provided in the notes accompanying the Financial Statements.
In the light of these results, the Directors have decided to increase the
total dividend by 5.0%, to 6.3p per share (2000 - 6.0p).
The substantial increase in net asset value reflects a satisfactory increase
in the value of the properties within the portfolio which was valued at #
14,145,000 by Chesterton at 25th March 2001, representing a surplus of #
428,000 over last year's valuation.
We have continued our strategy of divestment of the smaller,
management-intensive properties and reinvestment in industrial properties in
central southern England. As I foreshadowed in my statement for the half
year, we acquired on 24th January 2001 a modern 11,160 sq.ft. freehold
industrial property at Alton, Hampshire for a consideration of #700,000. This
is let for 15 years with 5 year reviews and a tenant's option to break after
the 10th year. The initial rent of #70,000 p.a. represents a 9.4% return
after costs. At the half year, I also reported the sale of our last remaining
retail property at Swindon.
In the second half of the year, we have been actively marketing several
properties, and I am pleased to report that since the year-end, we have
exchanged contracts to sell our retail and office property at Epping and the
smaller retail and residential property in Cambridge involving a combined
consideration of #910,000, being #75,000 in excess of their ascribed values at
25th March 2001.
The proceeds of these disposals, coupled with our unutilised borrowing
facilities and cash deposits, provide us with substantial funds for
reinvestment in properties which show opportunities for longer term asset
growth. We continue to review a number of proposals, but only a few have met
our investment criteria. Over the last two years, however, we have made
significant progress in improving the overall quality of the portfolio and
increasing the weighting of the industrial element of the investment portfolio
which currently accounts for 34% by value with the office and retail elements
representing 36% and 30% respectively.
As I announced to Shareholders during last year's Annual General Meeting,
Panther Securities PLC informed me on that day of the disposal of its entire
shareholding in your Company to a subsidiary of Broadland Properties Limited,
a substantial private property company owned by the Guthrie family, which we
welcome as a Shareholder. Interestingly, however, we have noted that Mr
Andrew Perloff, a major shareholder in Panther who has graced our recent
meetings, has himself subsequently purchased shares in Wynnstay.
At the last AGM, Shareholders approved a Special Resolution authorising your
Company to purchase its own shares. This resolution has to be renewed
annually and is therefore included in the Notice of Meeting for this year.
The Board commends this resolution to you as being in the best interests of
all Shareholders.
At an Extraordinary General Meeting, held in February, Shareholders approved
the Special Resolution which modernised the requirements for use of the
Company Seal and provided for a Securities Seal to be maintained for the
sealing of share certificates without the requirement of signatures.
Following this meeting, permission was granted for the transfer of the
Company's shares to be settled electronically through the CREST system and
Capita IRG PLC were appointed as the Company's registrars.
We have entered the new financial year in a strong and confident mood. There
is more work to do on the property portfolio, and a number of interesting
opportunities to explore.
Finally, I would again like to thank our dedicated and hard-working full-time
staff and professional advisers in making this another successful year for
your Company.
Philip G. H. Collins
Chairman
WYNNSTAY PROPERTIES PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT YEAR ENDED 25TH MARCH 2001
2001 2000
#'000 #'000 #'000 #'000
Gross Rental Income 1,385 1,425
Fees and Commissions 23 18
Sales of Trading Properties - 590
--------- --------
1,408 2,033
Cost of Sales of Trading Properties - 595
Property Outgoings 65 57
--------- --------
1,343 1,381
Administration and Other Costs 384 384
--------- --------
Operating Profit 959 997
Finance Costs (Net) 461 477
--------- --------
Profit on Ordinary Activities before
Exceptional Items and Taxation 498 520
Exceptional Items 7 (20)
--------- --------
Profit on Ordinary Activities
before Taxation 505 500
Taxation on Profit from Ordinary
Activities 97 103
--------- ---------
Profit after Taxation Attributable to
Ordinary Shareholders 408 397
Dividends per share:-
Interim Paid: 1.875p 2000:1.8p 59 57
Final Payable:4.425p 2000:4.2p 140 132
------- -------
Total:6.3p 2000:6.0p 199 189
------ ------
Retained Profit for the Financial Year
Wynnstay Properties PLC 196 170
Subsidiary Companies 13 38
--------- ---------
209 208
======== =========
Basic and Diluted Earnings per Share 12.9p 12.6p
Normalised Earnings per Share 12.7p 13.4p
Statement of Total Recognised Gains and Losses
Profit for the Financial Year after Taxation 408 397
Unrealised Surplus on Revaluation of Investment 428 146
Properties
-------- ---------
Total Recognised Gains and Losses for the Year 836 543
======== =========
Note of Historical Cost Profits and Losses
Profit on Ordinary Activities before Taxation 505 500
Realisation of Property Revaluation Gains on Previous 51 125
Years
-------- ---------
Historical Cost Profit on Ordinary Activities before 556 625
Taxation
======== ========
Historical Cost Profit for the Year Retained after
Taxation and Dividends 260 333
======== ========
CONSOLIDATED BALANCE SHEET AT 25TH MARCH 2001
2001 2000
#'000 #'000 #'000 #'000
Fixed Assets
Tangible Assets 14,178 13,089
Investments 54 53
---------- ---------
14,232 13,142
Current Assets
Debtors 105 351
Cash at Bank and in Hand 180 602
--------- ---------
285 953
Creditors: Amounts falling due
within one year (602) (732)
--------- ---------
Net Current (Liabilities)/Assets (317) 221
---------- ---------
Total Assets Less Current Liabilities 13,915 13,363
Creditors: Amounts falling due after
more than one year (6,397) (6,482)
---------- ---------
Net Assets 7,518 6,881
========== =========
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 2,740 2,363
--------- ---------
Non-Distributable Reserves 4,231 3,854
Distributable Reserves 2,498 2,238
---------- ---------
Equity Shareholders' Funds 7,518 6,881
========== =========
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 25TH MARCH 2001
2001 2000
#'000 #'000 #'000 #'000
Cash Flow from Operating 1,214 1,335
Activities
Returns on Investment and Servicing of
Finance
Interest Received 23 19
Interest Paid (578) (403)
---------- ---------
Net Cash (Outflow) from Returns on
Investment and Servicing of Finance (555) (384)
Taxation Paid (143) (28)
Taxation - 1
Refunded
---------- ---------
(143) (27)
Capital Expenditure and Financial
Investment
Purchase of Tangible Fixed Assets (742) (788)
Disposal of Tangible Fixed Assets 82 163
Purchase of Sinking Fund Policy Premium (1) (1)
---------- ---------
Net Cash (Outflow) from
Investing Activities (661) (626)
Equity Dividends Paid (192) (181)
----------- -----------
Net Cash (Outflow)/Inflow before Financing (337) 117
Financing
Drawdown of Bank Loan 700 764
Repayment of Bank Loan (785) (509)
------------ -----------
(Decrease)/Increase in Cash in the Period (422) 372
============ ===========
Reconciliation of Net Cash Flow to
Movement in Net Debt
(Decrease)/Increase in Cash in the (422) 372
Period
Cash Outflow/(Inflow) from
Decrease/(Increase) in Debt Financing 85 (255)
------------ -----------
Movement in Net Debt in the Period (337) 117
Net Debt at 25th March 2000 (5,880) (5,997)
----------- -----------
Net Debt at 25th March 2001 (6,217) (5,880)
=========== ===========
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 2000, 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 and diluted earnings per share have been calculated on profits after
taxation attributable to shareholders of #407,581 (2000: #397,254) 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
exceptional items, of #400,724 (2000: #423,512) on the same weighted
average 3,155,267 shares.
3. A final dividend of 4.425p (2000: 4.20p) per share is being recommended and
will be paid on 31 July 2001 to shareholders on the register at the close
of business on 13th July 2001.
4. The 2001 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
26th July 2001 at The Royal Automobile Club, 89 Pall Mall, London SW1Y 5HS.
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