WSP Wynnstay Properties Plc

 

TIDMWSP 
 
RNS Number : 6172P 
Wynnstay Properties PLC 
27 March 2009 
 

 
 
 
 
WYNNSTAY PROPERTIES PLC 
("Wynnstay" or "the Company") 
 
 
Pre-close Trading Update 
 
 
Further to the announcement of the Company's interim results for the six months 
ended 30 September 2008 and in advance of the announcement of its results for 
the year ended 25 March 2009, Wynnstay provides the following pre-close trading 
update: 
 
 
  *  The Company's Independent Valuers, Sanderson Weatherall, have revalued the 
  Company's investment properties at 25 March 2009 in the sum of GBP20.745m. This 
  compares to the interim revaluation of the entire portfolio by Sanderson 
  Weatherall as at 29 September 2008 in the sum of GBP24.1m. 
  *  Under UK Generally Accepted Accounting Principles (UKGAAP) any revaluation 
  adjustment, would be reflected in the balance sheet, rather than in the income 
  statement. However, since the Company is now required to prepare its financial 
  statements under International Financial Reporting Standards (IFRS) it is 
  obliged to reflect any revaluation adjustment in full in its income statements 
  which thus impacts on profits and earnings rather than only on net asset value 
  per share. 
  *  It should be stressed that the revaluation reflects changes in market conditions 
  and does not reflect the underlying performance of Wynnstay's core business of 
  managing and securing rental income from its portfolio. 
 
  *  Wynnstay's property portfolio remains fully let and income producing and no 
  material rental income remains outstanding at the year end.  Property and 
  administrative costs have been rigorously controlled and are expected to be 
  significantly lower than last year.  Finance costs, while benefiting from lower 
  prevailing interest rates, will be higher than last year reflecting the 
  increased borrowings to acquire the Aylesford industrial estate in June 2008. 
  *  Wynnstay has entered into a new five year GBP8.5m facility with one of 
  Scandinavia's leading banking groups, Svenska Handelsbanken AB, to replace the 
  previous facility for the same amount with N.M. Rothschild & Sons which was due 
  to expire in 2011.  Taken overall, the principal terms of the new arrangement 
  are not materially different from those under the previous facility. The Company 
  did not incur any significant costs in negotiating and entering into the new 
  arrangement and now has the benefit of a borrowing facility which runs through 
  until 2013. 
  *  Properties charged to Handelsbanken are valued as at 25 March 2009 by Sanderson 
  Weatherall at GBP13.27m and thus the Company has uncharged properties valued as 
  at that date of GBP7.475m. 
  *  As at 25 March 2009, the amount drawn down under the new facility was GBP7.9m 
  and the Company had net cash balances of GBP0.8m which could be used, together 
  with the undrawn balance of GBP0.6m under the new facility and the uncharged 
  properties valued at GBP7.475m, to provide and secure finance for future 
  property purchases, if and when suitable opportunities arise. 
  *  The Company's current rental income covers current interest payments by a 
  multiple of almost four and a half times and its current operating income, 
  excluding revaluation adjustment, covers current interest payments by more than 
  three times. 
 
The Company's final results will be announced on or about 18 June 2009 and the 
Annual Report and Financial Statements will be posted to Shareholders shortly 
thereafter. 
Enquiries: 
Wynnstay Properties PLC 
Toby Parker - Finance Director: 0207 745 7160 
 
 
Nominated Adviser & Broker 
Charles Stanley Securities 
Rick Thompson / Carl Holmes: 0207 149 6000 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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