TIDMWSP
RNS Number : 6693Q
Wynnstay Properties PLC
08 November 2012
Wynnstay Properties PLC
Interim Results for the six months ended 29th September 2012
Chairman's Statement
Despite the continuing difficult conditions affecting the UK
economy, Wynnstay has continued to perform well and I am pleased to
report to you with good results of the first half of the financial
year to 29(th) September 2012 which may be summarised as
follows:-
2012 2011
Operating income before movement
in fair value of investment 24.1% GBP601,000 GBP484,000
properties:
Income before Taxation (8.1)% GBP641,000 GBP690,000
Earnings per share (5.3)% 18.0p 19.0p
Interim Dividend per share 10% 3.2p 2.90p
Net Asset value per share (1.5)% 466p 473p
Property income for the half-year increased to GBP838,000 (2011
- GBP763,000) as rental income from our latest additions to the
portfolio, at Lewes and at Surbiton, to which I referred in my
statement in last year's accounts came on stream, albeit offset to
some degree by the disposals of our office building at Colchester
at the end of the last financial year and of our industrial
property at Alton which was completed in this half-year. As a
result, our operating income of GBP601,000 (2011 - GBP484,000) was
somewhat higher than for the same period last year.
Our pre-tax profit of GBP641,000 (2011 - GBP690,000) is slightly
lower than at the same time last year, mainly as a result of the
profit on the sale of investment properties being different in the
two years: GBP100,000 in the current year to date, compared to
GBP267,000 in the comparable period last year. Finance costs have
been about the same in the two comparable periods, reflecting the
continuing low interest rates.
Management activity of the portfolio has been busy but rather
less intense than in the recent past, reflecting a degree of
stability amongst our tenant base. During the period, we renewed
three leases on the industrial estate at Aylesford, renegotiated
the leases of two trade units at Heathfield, notably to remove the
tenant's ability to break the leases, and welcomed new tenants for
industrial units at Norwich, St Neots and Uckfield. I consider this
is an excellent position given the current weakness of the
commercial property letting market as it ensures continuity of
income while minimising as far as possible the costs associated
with vacant properties.
There is no doubt that the economic conditions are causing
difficulties for some of our tenants, particularly small local
traders. Although we did not suffer any material bad debts
resulting from the failure of tenants, it seems almost inevitable
that some business failures will occur and, if they do, it will
affect Wynnstay's income and we will incur costs while properties
are vacant and in reletting them. On a more positive note, we have
a good mix of tenant profiles, ranging from the Government through
national businesses to small and medium-sized enterprises and the
voluntary and charitable sectors. At the time of writing, we have
collected over 95% of the rental income due for the current quarter
commencing 29 September 2012 and our vacancy rate remains at under
1% on a rental basis.
With the changes that we have made to the portfolio over the
past eighteen months and in particular the disposal of Twickenham
and the acquisitions of Lewes and Surbiton, the immediate outlook
is perhaps more favourable than it was when I wrote to you at this
time last year. Nevertheless it is important to remain cautious
whilst on the lookout for opportunities that will enhance
shareholder value in the medium-to-longer term as I consider we
have done with our recent purchases.
As has been the case for a considerable period interest rates
remain at a historically low level due to the economic conditions
and it is clear from our results that these low interest rates
benefit Wynnstay. It is important to recognise that market rates
will inevitably rise in due course to more normal levels and that
the terms we presently enjoy under our borrowing facility which
expires in December 2013 may not be available when we seek to
renegotiate the facility next year although the current portfolio
places us in a good position to agree acceptable terms.
In the light of the matters discussed above, the Directors have
decided to increase the interim dividend by 10% to 3.2p per share
compared to the 2.9p per share paid in 2011. We have now held the
dividend for several years, and a modest increase in the interim
seems justified. This should not be taken as any indication that
the final dividend will also be increased, and a decision on this
will be taken in the light of the results for the year in June
2013. However, our desire is to achieve a slightly better balance
between the interim and the final dividends. The interim dividend
will be paid on 14th December 2012 to those Shareholders on the
register on 16th November 2012.
I would repeat the reminder that I gave you last year and in my
Chairman's statement in June 2012 concerning unsolicited approaches
to shareholders over the telephone in relation to their shares in
Wynnstay and I would refer you to the letter distributed with the
Annual Report and Financial Statements in June.
Our Annual General Meeting next year will again be held at the
Royal Automobile Club, 89 Pall Mall, London SW1 on Thursday 18th
July 2013 at 12 noon and I hope that as many shareholders as
possible will make arrangements to attend and meet the Board and
fellow shareholders.
Finally, on behalf of the Board, I would like to convey to all
shareholders our best wishes for a Happy Christmas 2012 and for
good health and happiness in 2013. Wynnstay, despite its compact
size, benefits from considerable loyalty amongst its shareholders,
many of whom have held their shares for a considerable time. The
interest in Wynnstay's continued development that is shown by
shareholders notably in the run up to and at our annual general
meetings is greatly appreciated by the Board.
Philip G.H. Collins
Chairman
8th November 2012
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 2012
Six months ended Year
ended
29th September 29th September 25th
March
2012 2011 2012
GBP'000 GBP'000 GBP'000
Property Income 838 763 1,503
Property Costs (46) (74) (182)
Administrative Costs (191) (204) (389)
--------------- --------------- --------
601 484 932
Movement in fair value
of:
Investment Properties (866)
Profit/(Loss) on Sale
of Investment Property 100 267 346
Operating Income 701 751 412
Investment Income 1 3 3
Finance Costs (61) (64) (123)
--------------- --------------- --------
Income before Taxation 641 690 292
Taxation (154) (174) (175)
--------------- --------------- --------
Income after Taxation 487 516 117
--------------- --------------- --------
The company has no other
items of comprehensive
income
UNAUDITED STATEMENT OF FINANCIAL POSITION
AT 29TH SEPTEMBER 2012
25th
29th September 29th September March
2012 2011 2012
GBP'000 GBP'000 GBP'000
Non Current Assets
Investment Properties 18,630 18,825 16,965
Investments 3 3 3
--------------- --------------- --------
18,634 18,828 16,968
Current Assets
Accounts Receivable 274 158 319
Cash and Cash Equivalents 705 484 966
--------------- --------------- --------
979 642 1,285
Non Current Assets
held for Sale 365 2,324
Current Liabilities
Accounts Payable (820) (387) (808)
Income Taxes Payable (373) (403) (217)
--------------- --------------- --------
(1,193) (790) (1,025)
Net Current (Liabilities)/Assets (212) 217 2,584
Total Assets Less
Current Liabilities 18,421 19,045 19,552
Non-Current Liabilities
Bank Loans Payable (5,775) (6,150) (7,187)
Deferred Taxation (6) (56) (6)
--------------- --------------- --------
Net Assets 12,640 12,838 12,359
=============== =============== ========
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 12,081 12,279 11,800
--------------- --------------- --------
12,640 12,838 12,359
=============== =============== ========
UNAUDITED STATEMENT OF CASH FLOW
FOR THE SIX MONTHS ENDED 29TH SEPTEMBER 2012
Year
ended
Six months ended
29 September 25 March
2012 2011 2012
GBP'000 GBP'000 GBP'000
Cashflow from operating
activities
Income before taxation 641 690 292
Adjusted for:
Depreciation - 6 6
Decrease in fair value
of investment properties - - 866
Interest income - (3) (3)
Interest expense 61 64 123
(Profit)/Loss on disposal
of investment properties (100) (267) (346)
Changes in:
Trade and other receivables 45 131 (293)
Trade and other payables (3) (260) 51
Income taxes paid - (11) (248)
Interest paid 61 64 (123)
Net cash from operating
activities 704 25 325
========= ======== =========
Cashflow from investing
activities
Interest and other income
received - 3 3
Purchase of investment
properties (1,679) - (1,330)
Sale of investment properties 2,333 1,087 1,641
Net cash from investing
activities 654 1,090 314
========= ======== =========
Cashflow from financing
activities
Dividends paid (206) (206) (286)
Repayments on bank loans (1,412) (1,305) (1,605)
Drawdown on bank loans 1,337
Net cash used in financing
activities (1,619) (1,511) (554)
========= ======== =========
Net (decrease)/increase
in cash and cash equivalents (261) (397) 85
Cash and cash equivalents
at beginning of period 966 881 881
Cash and cash equivalents
at end of period 705 484 966
========= ======== =========
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 29TH SEPTEMBER 2012
SIX MONTHS ENDED 29TH SEPTEMBER
2012
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 2012 789 205 1,135 (1,570) 11,800 12,359
Total comprehensive
income for the
period - - - - 487 487
Dividends - - - - (206) (206)
Balance at 29
September 2012 789 205 1,135 (1,570) 12,081 12,640
========= ============ ========= ========= ========== =======
SIX MONTHS ENDED 29TH 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
========= ============ ========= ========= ========== =======
YEAR ENDED 25TH MARCH 2012
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
year - - - - 117 117
Dividends - - - - (286) (286)
Balance at 25
March 2012 789 205 1,135 (1,570) 11,800 12,359
========= ============ ========= ========= ========== =======
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 2012 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 29th
September 2012 and 29th September 2011 has not been audited and the
auditors have not reported on or reviewed these interim financial
statements. The information for the year ended 25th March 2012 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.
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 March 2012 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 a defined contribution scheme.
2. DIVIDENDS
Payment Per share Amount absorbed
Period Date (pence) GBP'000
6 months to 29th September 14th Dec
2012 2012 3.20 87
6 months to 29th September 17th Dec
2011 2011 2.90 79
Year ended 25th March 22nd July
2012 2012 7.6 206
3. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing income after
taxation attributable to Ordinary Shareholders of GBP487,000 (2011:
GBP516,000) by the weighted average number of 2,711,617 ordinary
shares in issue during the period (2011: 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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