TIDMWSP
RNS Number : 8123R
Wynnstay Properties PLC
10 November 2011
Wynnstay Properties PLC
Interim Results for the six months ended 29th September 2011
Chairman's Statement
At a time of economic uncertainty and difficulty that is
unprecedented in recent times, I am pleased to report to you with
satisfactory results of the first half of the financial year for
your company.
The results for the six months to 29(th) September 2011 may be
summarised as follows:-
2011 2010
Operating income before movement
in fair value of (8.4)% GBP484,000 GBP676,000
investment properties:
Income before Taxation 44.0% GBP690,000 GBP479,000
Earnings per share 39.7% 19.0p 13.6p
Interim Dividend per share 0% 2.90p 2.90p
Net Asset value per share 2.4% 473p 462p
As anticipated, property income for the half year fell to
GBP763,000 (2010 - GBP903,000) primarily due to the absence of
rental income from properties disposed of over the past eighteen
months and from the Twickenham site, to which I refer further
below, as well as the incidence of costs, mainly business rates
which are now charged on vacant properties. As a result, our
operating income of GBP484,000 (2010 - GBP676,000) was
substantially lower than for the same period last year.
However, despite this fall in income, our pre-tax profit of
GBP690,000 (2010 - GBP479,000) was substantially higher than at the
same time last year. This was mainly due to the profit of
GBP267,000 arising on the sale of our Crawley property, which
completed in early June, and far lower finance costs of GBP64,000
(2010 - GBP158,000). These lower finance costs arose from a
combination of lower interest rates, notably following the expiry
of the fixed rate on part of our facility to which I have
previously referred to, and our reduced total borrowings resulting
from repayments made under our facility following the disposal of
properties.
In my statement in June, I referred to the busy activity in the
management of the portfolio. This has continued in the first half
of the year.
At our estate in Aylesford, we have been successful in letting
one of the larger units to a new tenant and also completed lease
renewals on two units at both Basingstoke and Hertford and one unit
at Norwich as well as granting leases to new tenants at Norwich and
Uckfield. Terms have also recently been agreed for a new tenant to
occupy one of the two vacant units at Uckfield.
Despite the difficult conditions that many of our tenants are
facing, it is pleasing that, once again, we did not suffer any
material bad debts resulting from the failure of tenants and that
we have collected substantially all the rental income due for the
period. In addition, rental income due for the current quarter
commencing 29(th) September 2011 has also been substantially
collected.
I have reported previously at some length on our planning
application and the consent obtained to redevelop our industrial
units at Twickenham. We have now demolished the old industrial
units on the site in order to preserve the existing planning
permission whilst we discuss various alternatives with the planners
that may increase the flexibility of the future development of the
site. I hope to have further news for you when I report at the end
of the financial year.
We continue to look for additions to the portfolio and have
examined a number of potential opportunities. Recently we submitted
an offer, which has been accepted, for two retail trade counter
units within an established out of town retail location of a county
town in Southern England. I look forward to updating you on
progress regarding this.
As regards interest rates, the present economic conditions seem
to lead most commentators to now consider that any rise in base
rates is unlikely to take place in the short to medium term and, as
I have previously indicated, a sustained period of low interest
rates will benefit Wynnstay, though it is important that we
continue to proceed cautiously on the basis that rates will rise in
due course. Our disposals mean that we now have circa GBP2.5m of
unused facilities together with uncharged properties that we can
use to secure additional borrowings, if required.
The recessionary conditions and recurrent crises in the
financial and banking markets inevitably affect commercial property
and impact your company in terms of both rental levels and capital
values. With our active management policy, we are managing at
present to keep the proportion of the portfolio that is unlet at
any time under close control, thus minimising, as far as possible,
the costs of vacant premises, which as noted above mainly consist
of business rates. Whilst our rental income will be lower in the
immediate future than it has been in prior years, we have our costs
firmly under control. Thus I am confident that we can continue to
develop and grow the company for shareholders' benefit, albeit at a
slower rate than might have been possible a few years ago.
In the light of the matters discussed above, the Directors have
decided to hold the interim dividend at the same level as last
year, i.e. 2.9 pence per share. This will be paid on 16(th)
December 2011 to those shareholders on the register on 18(th)
November 2011. As in prior years, a decision on the appropriate
amount to recommend as a final dividend will be taken in the light
of the results for the full year.
A number of shareholders have mentioned that they have received
unsolicited approaches over the telephone in relation to their
shares in Wynnstay, in which the callers suggest interest in
purchasing their holdings in Wynnstay at prices that are far in
excess of both the quoted price on the London Stock Exchange and
the net asset value per share. These approaches are what are known
as "boiler room scams", relying on the use of publicly available
information about shareholders' names, addresses and holdings, and
typically operating from outside the UK.
Enclosed with this report you will find a letter that largely
repeats the information and warning that I gave shareholders in
mid-2009. We have already reported some instances of these scams to
the Financial Services Authority. I would urge extreme caution in
dealing with unsolicited calls about your investments and would
urge any shareholders who receive such calls to contact the
Financial Services Authority or Toby Parker, our Finance Director
and Company Secretary.
Our Annual General Meeting next year will again be held at the
Royal Automobile Club, 89 Pall Mall, London SW1 on Thursday 19th
July 2012 at 12 noon and I hope that as many shareholders as
possible will take the opportunity of a day in London to attend the
event.
Finally, on behalf of the Board, I wish all shareholders a Happy
Christmas and our best wishes for 2012. Your continued interest in
Wynnstay, its current activities and its prospects for the future
are always greatly appreciated.
Philip G.H. Collins
10(th) November 2011 Chairman
For further information please contact:
Wynnstay Properties Plc
Toby Parker, Finance Director 020 7554 8766
Charles Stanley Securities
- Nominated Adviser 020 7149 6000
Dugald J. Carlean / Carl
Holmes
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 29TH SEPTEMBER 2011
Six months ended Year
ended
29th September 29th September 25th
March
2011 2010 2011
GBP'000 GBP'000 GBP'000
Property Income 763 903 1,691
Property Costs (74) (22) (136)
Administrative Costs (205) (205) (389)
--------------- --------------- --------
484 676 1,166
Movement in fair value
of:
Investment Properties - - (225)
Profit/(Loss) on Sale
of Investment Property 267 (40) (39)
Operating Income 751 636 902
Investment Income 3 1 6
Finance Costs (64) (158) (247)
--------------- --------------- --------
Income before Taxation 690 479 661
Taxation (174) (111) (212)
--------------- --------------- --------
Income after Taxation 516 368 449
--------------- --------------- --------
The company has no other
items of comprehensive
income
Basic and Diluted Earnings
per Share 19.0 13.6 16.6p
UNAUDITED STATEMENT OF FINANCIAL POSITION
AT 29TH SEPTEMBER 2011
29th September 29th September 25th March
2011 2010 2011
GBP'000 GBP'000 GBP'000
Non Current Assets
Investment Properties 18,825 20,345 18,825
Other Property,
Plant and Equipment - 5 6
Investments 3 3 3
--------------- --------------- -----------
18,828 20,353 18,834
Current Assets
Accounts Receivable 157 170 26
Cash and Cash Equivalents 484 501 881
--------------- --------------- -----------
641 671 907
Non Current Assets
held for Sale 365 - 1,295
Current Liabilities
Bank Loans Payable - - -
Accounts Payable (387) (519) (757)
Derivative Financial
Instruments - (65) -
Income Taxes Payable (403) (380) (240)
--------------- --------------- -----------
(790) (964) (997)
Net Current Assets 216 (293) 1,205
Total Assets Less
Current Liabilities 19,044 20,060 20,039
Non-Current Liabilities
Bank Loans Payable (6,150) (7,452) (7,455)
Deferred Taxation (56) (81) (56)
--------------- --------------- -----------
Net Assets 12,838 12,527 12,528
=============== =============== ===========
Capital and Reserves
Share Capital 789 789 789
Treasury shares (1,570) (1,570) (1,570)
Share Premium Account 1,135 1,135 1,135
Capital Redemption
Reserve 205 205 205
Retained Earnings 12,279 11,968 11,969
--------------- --------------- -----------
12,838 12,527 12,528
=============== =============== ===========
UNAUDITED STATEMENT OF CASH FLOW
FOR THE SIX MONTHS ENDED 29TH SEPTEMBER 2011
Year
ended
Six months ended
29 September 25 March
2011 2010 2011
GBP'000 GBP'000 GBP'000
Cashflow from operating
activities
Income before taxation 690 479 661
Adjusted for:
Depreciation 6 3 2
Decrease in fair value
of investment properties - - 225
Interest income (3) (1) (6)
Interest expense 64 158 312
(Profit) on financial
liabilities at fair value - - (65)
(Profit)/Loss on disposal
of investment properties (267) 39 39
Changes in:
Trade and other receivables (131) (67) 77
Trade and other payables (260) (377) (120)
Income taxes paid (11) - (266)
Interest paid (64) (158) (312)
Net cash from operating
activities 25 76 547
========= ======== =========
Cashflow from investing
activities
Interest and other income
received 3 1 6
Sale of investment properties 1,087 925 906
Net cash from investing
activities 1,090 926 912
========= ======== =========
Cashflow from financing
activities
Dividends paid (206) (206) (286)
Repayments on bank loans (1,305) (1,048) (1,045)
Net cash used in financing
activities (1,511) (1,254) (1,331)
========= ======== =========
Net (decrease)/increase
in cash and cash equivalents (397) (252) 128
Cash and cash equivalents
at beginning of period 881 753 753
Cash and cash equivalents
at end of period 484 501 881
========= ======== =========
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 29TH SEPTEMBER 2011
SIX MONTHS ENDED 29 SEPTEMBER 2011
Capital Share
Share Redemption Premium Treasury Retained
Capital Reserve Account Shares Earnings Total
GBP GBP GBP GBP GBP
GBP 000 000 000 000 000 000
Balance at 26
March 2011 789 205 1,135 (1,570) 11,969 12,528
Total comprehensive
income for the
period - - - - 516 516
Dividends - - - - (206) (206)
Balance at 29
September 2011 789 205 1,135 (1,570) 12,279 12,838
========= ============ ========= ========= ========== =======
SIX MONTHS ENDED 29 SEPTEMBER 2010
Capital Share
Share Redemption Premium Treasury Retained
Capital Reserve Account Shares Earnings Total
GBP GBP GBP GBP GBP
GBP 000 000 000 000 000 000
Balance at 26
March 2010 789 205 1,135 (1,570) 11,806 12,365
Total comprehensive
income for the
period - - - - 368 368
Dividends - - - - (206) (206)
Balance at 29
September 2010 789 205 1,135 (1,570) 11,968 12,527
========= ============ ========= ========= ========== =======
YEAR ENDED 25 MARCH 2011
Capital Share
Share Redemption Premium Treasury Retained
Capital Reserve Account Shares Earnings Total
GBP GBP GBP GBP GBP
GBP 000 000 000 000 000 000
Balance at 26
March 2010 789 205 1,135 (1,570) 11,806 12,365
Total comprehensive
income for the
year - - - - 449 449
Dividends - - - - (286) (286)
Balance at 25
March 2011 789 205 1,135 (1,570) 11,969 12,528
========= ============ ========= ========= ========== =======
NOTES
1. ACCOUNTING POLICIES
Wynnstay Properties PLC is a public limited company incorporated
and domiciled in England and Wales. The principal activity of the
company is property investment, development and management. The
Company's ordinary shares are traded on the Alternative Investment
Market.
Basis of Preparation
These unaudited condensed interim financial statements have been
prepared in accordance with International Financial Reporting
Standard (IFRS) IAS 34 Interim Financial Reporting. They do not
constitute statutory accounts within the meaning of section 435 of
the Companies Act 2006.
The unaudited condensed interim financial statements should be
read in conjunction with the financial statements of the Company as
at and for the year ended 25(th) March 2011 which were prepared in
accordance with IFRS as adopted by the European Union and those
parts of the Companies Act 2006 applicable to companies reporting
under IFRS, and have been reported on by the Company's auditors.
The financial information for the interim periods ended 25(th)
September 2011 and 25th September 2010 has not been audited and the
auditors have not reported on or reviewed these interim financial
statements. The information for the year ended 25(th) March 2011
has been extracted from the latest published audited financial
statements.
Key Sources of Estimation Uncertainty
The preparation of the financial statements requires management
to make judgements, estimates and assumptions that may affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expenses.
Revisions to accounting estimates are recognised in the period
in which the estimate is revised if the revision affects only that
period. The key sources of estimation uncertainty that have a
significant risk of causing material adjustment to the carrying
amounts of assets and liabilities within the next financial year,
are those relating to the fair value of investment properties.
Investment Properties
All the Company's investment properties are revalued annually
and stated at fair value at 25th March. The aggregate of any
resulting surpluses or deficits are recognised through the
statement of comprehensive income.
Non-Current assets held for sale
Non-current assets classified as held for sale are measured at
the lower of the assets' previous carrying amount and fair value
less cost to sell.
Depreciation
In accordance with IAS 40, freehold and leasehold investment
properties are included at the reporting date at fair value, and
are not depreciated. Leasehold improvements are amortised over the
period of the underlying lease.
Depreciation of other plant and equipment is on a straight line
basis calculated at annual rates estimated to write off each asset
over its useful life of 5 years.
Disposal of Investments
The gains and losses on the disposal of investment properties
and other investments are included in the statement of
comprehensive income in the year of disposal.
Property Income
Property income represents the value of accrued charges under
operating leases for rental of the Company's properties. Revenue is
measured at the fair value of the consideration received. All
income is derived in the United Kingdom.
Taxation
The tax expense represents the sum of the tax currently payable
and deferred tax. Current tax is the expected tax payable on the
taxable income for the year based on the tax rate enacted or
substantially enacted at the reporting date, and any adjustment to
tax payable in respect of prior years. Taxable profit differs from
income before tax as reported in the income statement because it
excludes items of income or expense that are deductible in other
years, and it further excludes items that are never taxable or
deductible.
Deferred taxation is the tax expected to be payable or
recoverable on differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding
tax bases used in the computation of taxable profits, and is
accounted for using the financial position liability method.
Deferred tax liabilities are recognised for all taxable temporary
differences (including unrealised gains on revaluation of
investment properties) and deferred tax assets are recognised to
the extent that it is probable that taxable profits will be
available against which deductible temporary differences can be
utilised.
Deferred tax is calculated at the rates that are expected to
apply in the period when the liability is settled, or the asset is
realised. Deferred tax is charged or credited in the statement of
comprehensive income, including deferred tax on the revaluation of
the asset.
Investments
Quoted investments are recognised as held at fair value, and are
measured at subsequent reporting dates at fair value, which is
either at the bid price, or the latest traded price, depending on
the convention of the exchange on which the investment is quoted.
Changes in fair value are recognised in profit or loss.
Trade and other accounts receivable
Trade and other receivables are initially measured at fair value
as reduced by appropriate allowances for estimated irrecoverable
amounts. All receivables do not carry any interest and are short
term in nature.
Cash and cash equivalents
Cash comprises cash at bank and on demand deposits. Cash
equivalents are short term (less than three months from inception),
repayable on demand and which are subject to an insignificant risk
of change in value.
Trade and other accounts payable
Trade and other payables are initially measured at fair value.
All trade and other accounts payable are not interest bearing.
Comparative information
The information for the year ended 25(th) March 2011 has been
extracted from the latest published audited financial
statements.
Pensions
Pension contribution towards employees' pension plans are
charged to the statement of comprehensive income as incurred. The
pension scheme is defined as a pension contribution scheme.
Financial Instruments
Derivative financial instruments are initially measured at fair
value at the contract date entered into, and subsequently measured
to their fair value at each reporting date. Embedded derivatives
are recognised separately on the statement of financial position,
when not closely related to the host contract. Changes in the fair
value of derivative financial instruments that do not qualify for
ledger accounting are recognised in profit or loss.
2. DIVIDENDS
Payment Per Amount
share absorbed
Period Date (pence) GBP'000
6 months to 29th 16(th) Dec
September 2011 2011 2.9 79
6 months to 29th 17(th) Dec
September 2010 2010 2.9 79
Year ended 25th 22(nd) July
March 2011 2011 7.6 206
3. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing income after
taxation attributable to Ordinary Shareholders of GBP516,000 (2010:
GBP368,000) by the weighted average number of 2,711,617 ordinary
shares in issue during the period (2010: 2,711,617). There are no
instruments in issue that would have the effect of diluting
earnings per share.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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