TIDMWSP
RNS Number : 1377T
Wynnstay Properties PLC
15 November 2013
Wynnstay Properties PLC
Interim Results for the six months ended 29th September 2013
Chairman's Statement
I am pleased to report to you with the results of your company's
performance for the first half of the financial year to 29(th)
September 2013 which may be summarised as follows:-
2013 2012
Operating income before movement in
fair value of (3.6)% GBP579,000 GBP601,000
investment properties:
Income before Taxation (17.6)% GBP528,000 GBP641,000
Earnings per share (14.4)% 15.4p 18.0p
Net Asset value per share (4.3)% 446p 466p
Interim Dividend per share 4.20p 3.20p
Property income for the half-year was marginally reduced at
GBP821,000 (2012 - GBP838,000) and, as we did not sell any
properties in the period, we were unable to match the additional
GBP100,000 of profits realised in the corresponding period in 2012.
As a result, our operating income of GBP579,000 (2012 - GBP601,000)
and our pre-tax profit of GBP528,000 (2012 - GBP641,000) were both
lower than at the same time last year.
Management activity of the portfolio has been busy but rather
less intense than in the recent past, reflecting a greater
stability amongst our tenant base. During the period, we renewed
leases with existing tenants at our office building at Cosham, and
on two industrial units at each of St Neots and Norwich as well as
welcoming two new tenants there.
In my statement accompanying the annual report and financial
statements in June, I reported on the business failure of our
longstanding tenant at Hertford. I am pleased to say that we have
now leased one of the two units, which fronts onto the main road,
to a national retail business on a new ten year lease with no
tenant breaks and at a rent in excess of valuation and instructed
solicitors in connection with the sale of the other unit to an
owner occupier at what we consider to be an attractive sale
price.
As a result of this activity, we have been successful in
improving the lease profile of the portfolio and providing
continuity of income while minimising, as far as possible, the
costs associated with vacant properties.
There is little doubt that the continuing economic difficulties
are causing problems for some of our tenants, particularly small
local traders and those in the retail trade affected by the growth
in e-commerce. In this regard, we will be sorry to lose one of our
Colchester retail tenants early in the new year.
Nevertheless, I am pleased to report that we did not suffer any
material bad debts resulting from the failure of tenants in this
period, and we do our best to work with tenants who are in
difficulty in order to assist them. Any business failures among our
tenants affects Wynnstay's rental income and, as well, we incur
costs while properties are vacant and in reletting them. However,
as I have previously noted, we have a broad spread of tenants
ranging from the Government through national businesses to small
and medium-sized enterprises and the voluntary and charitable
sectors and it is pleasing to note that, at the time of writing, we
have collected over 95% of the rental income due for the current
quarter commencing 29 September 2013.
I have reported to you regularly on the changes that we have
made to the portfolio, the latest of which is the acquisition of
Crown Close Industrial Estate in Hailsham in Sussex, details of
which were given to you in my Chairman's statement in June. It is
worth noting that properties acquired over the past five years now
account for just under one-half of our rental income and represent
just under one-half of the value of the portfolio. The Board
considers that the changes we have made to the portfolio over
recent years provide a solid base for the future, including the
further growth of your company.
In my Chairman's statement in June, I reported on the
negotiations for a new five-year GBP10 million facility with our
bankers, Svenska Handelsbanken and commented on the increase in
margins over LIBOR now being sought by banks from business
customers. Whilst we will have an increase in the total amount of
the facility, the rate of interest will be at 2.65% above 3 month
LIBOR as opposed to the 1.25% that we are currently paying. We are
very close to concluding our refinancing, with the documentation
currently being negotiated and we will make an announcement to
shareholders as soon as this is completed.
When I wrote to you in June, I noted that although we increased
the interim dividend paid last December, we did not recommend
payment of an increased final dividend, but would consider
increasing the interim dividend in December 2013 assuming
favourable conditions for the Company and in order to provide a
better balance between the interim and final dividends. In the
light of the performance reported above, the Directors have decided
to pay an increased interim dividend of 4.2p per share (2012: 3.2p
per share). The interim dividend will be paid on 13th December 2013
to those Shareholders on the register on 29th November 2013. This
should not be taken as any indication that the final dividend will
also be increased.
I would repeat the reminder that I gave you last year and in my
Chairman's statement in June 2013 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. On Wynnstay's
website www.wynnstayproperties.co.uk, shareholders will also find a
warning and a link to other information about unsolicited
approaches regarding shares on the Financial Conduct Authority's
website.
Our Annual General Meeting next year will again be held at the
Royal Automobile Club, 89 Pall Mall, London SW1 on Thursday 10th
July 2014 at 12 noon. I hope that as many shareholders as possible
can make arrangements to be in London to attend the meeting and
talk to the Board and fellow shareholders. It is an extremely
valuable event for the Board to be able to engage with shareholders
who also benefit from meeting each other. The interest and support
shown by Wynnstay shareholders in the company's affairs is greatly
appreciated by the Board.
Finally, on behalf of the Board, I hope that all shareholders
enjoy a Happy Christmas and convey our best wishes for contentment,
health and success in 2014.
Philip G.H. Collins
15th November 2013 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 2013
Six months ended Year ended
29th September 29th September 25th March
2013 2012 2013
GBP'000 GBP'000 GBP'000
Property Income 821 838 1,628
Property Costs (44) (46) (125)
Administrative Costs (197) (191) (384)
------------------------------- --------------------------- -----------
579 601 1,119
Movement in fair value of:
Investment Properties - - - (937)
Profit on Sale of Investment
Property - 100 100
Operating Income 579 701 282
Investment Income - 1 1
Finance Costs (51) (61) (117)
------------------------------- --------------------------- -----------
Income before Taxation 528 641 166
Taxation (111) (154) (359)
------------------------------- --------------------------- -----------
Income after Taxation 417 487 (193)
------------------------------- --------------------------- -----------
The company has no other items of comprehensive income.
UNAUDITED STATEMENT OF FINANCIAL POSITION
AT 29TH SEPTEMBER 2013
29th September 29th September 25th March
2013 2012 2013
GBP'000 GBP'000 GBP'000
Non Current Assets
Investment Properties 18,645 18,630 17,700
Investments 3 3 3
---------------------- ----------------------- ---------------------
18,648 18,633 17,703
Current Assets
Accounts Receivable 310 274 191
Cash and Cash Equivalents 387 705 571
---------------------- ----------------------- ---------------------
696 979 762
Current Liabilities
Accounts Payable (770) (818) (816)
Bank Loans Payable (5,996) - (5,396)
Income Taxes Payable (490) (373) (380)
---------------------- ----------------------- ---------------------
(7,255) (1,191) (6,592)
Net Current Liabilities (6,559) (210) (5,830)
Total Assets Less Current
Liabilities 12,083 18,422 11,873
Non-Current Liabilities
Bank Loans Payable - (5,775) -
Deferred Taxation - (6) -
---------------------- ----------------------- ---------------------
Net Assets 12,083 12,641 11,873
====================== ======================= =====================
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 11,525 12,081 11,314
---------------------- ----------------------- ---------------------
12,083 12,640 11,873
====================== ======================= =====================
UNAUDITED STATEMENT OF CASH FLOW
FOR THE SIX MONTHS ENDED 29TH SEPTEMBER 2013
Six months ended Year ended
29th September 25th March
2013 2012 2013
GBP'000 GBP'000 GBP'000
Cashflow from operating activities
Income before taxation 528 641 166
Adjusted for:
Allowance for trade receivables - - 28
Decrease in fair value of investment
properties - - 937
Interest income - - (1)
Interest expense 51 61 117
Profit on disposal of investment
properties - (100) (100)
Changes in:
Trade and other receivables (119) 45 100
Trade and other payables (46) (3) 14
Income taxes paid (105) - (208)
Interest paid 51 61 (117)
Net cash from operating activities 361 705 936
================= =================== ==================
Cashflow from investing activities
Interest and other income received - - 1
Purchase of investment properties (945) (1,679) (1,672)
Sale of investment properties - 2,333 2,424
Net cash from investing activities (945) 654 753
================= =================== ==================
Cashflow from financing activities
Dividends paid (206) (206) (293)
Repayments on bank loans - (1,414) (2,850)
Drawdown on bank loans 600 - 1,059
Net cash used in financing
activities 393 (1,620) (2,084)
================= =================== ==================
Net decrease increase in cash
and cash equivalents (191) (261) (395)
Cash and cash equivalents at
beginning of period 571 966 966
Cash and cash equivalents at
end of period 387 705 571
================= =================== ==================
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 29TH SEPTEMBER 2013
Capital
Share Redemption Share Premium Treasury Retained
Capital Reserve Account Shares Earnings Total
GBP GBP
000 GBP 000 GBP 000 GBP 000 GBP 000 000
Balance at 26 March
2013 789 205 1,135 (1,570) 11,314 11,873
Total comprehensive
income for the period - - - - 417 417
Dividends - - - - (206) (206)
Balance at 29 September
2013 789 205 1,135 (1,570) 11,525 12,083
========= ============ ============== ========= ========== =======
SIX MONTHS ENDED 29 SEPTEMBER 2012
Capital
Share Redemption Share Premium Treasury Retained
Capital Reserve Account Shares Earnings Total
GBP GBP
000 GBP 000 GBP 000 GBP 000 GBP 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
========= ============ ============== ========= ========== =======
YEAR ENDED 25 MARCH 2013
Capital
Share Redemption Share Premium Treasury Retained
Capital Reserve Account Shares Earnings Total
GBP GBP
000 GBP 000 GBP 000 GBP 000 GBP 000 000
Balance at 26 March
2012 789 205 1,135 (1,570) 11,800 12,359
Total comprehensive
income for the year - - - - (193) (193)
Dividends - - - - (293) (293)
Balance at 25 March
2013 789 205 1,135 (1,570) 11,314 11,873
========= ============ ============== ========= ========== =======
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 25th March 2013 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 2013 and 29th September 2012 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 2013 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.
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. The Company provides for deferred tax on investment
properties by reference to the tax that would be due on the sale of
the investment properties.
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 2013 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 29(th) September
2013 13(th) Dec 2013 4.20 114
6 months to 29th September 14(th) Dec
2012 2012 3.20 87
16(th) July
Year ended 25th March 2013 2013 7.6 206
3. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing income after
taxation attributable to Ordinary Shareholders of GBP417,000 (2012:
GBP487,000) by the weighted average number of 2,711,617 ordinary
shares in issue during the period (2012: 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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