RNS Number:7655Z
Wynnstay Properties PLC
15 June 2004
WYNNSTAY PROPERTIES PLC
15 JUNE 2004
Wynnstay Properties PLC - "the Company" or "Wynnstay"
Preliminary Results for Year Ended 25th March 2004
HIGHLIGHTS
Wynnstay Properties, the AIM quoted property investment company, announces its
results for the year ended 25th March 2004. Highlights include:
Profits before taxation of #732,000, close to last year's record level of
#755,000
Net assets increase by 11.4% to #10.4 million
Dividends increase by 5.6% to 7.6 pence per share
Commenting on the results, Chairman Philip Collins said:
"This has been another very satisfactory year for Wynnstay. The significant
increase in net asset value is particularly pleasing. It demonstrates the
progress that we have made in upgrading and repositioning the portfolio, with
greater emphasis over recent years on acquiring properties in central southern
England, primarily within the industrial sector."
The Company's AGM will be held at 12 noon on 22nd July 2004 at The Royal
Automobile Club, 89 Pall Mall, London SW1.
Contact details:
Philip Collins - Chairman
Peter Kirkland - Finance Director
Wynnstay Properties plc Tel: 020 7626 3057
Wynnstay Properties PLC - "the Company" or "Wynnstay"
Preliminary Results for Year Ended 25th March 2004
CHAIRMAN'S STATEMENT
I am again pleased to report on another very satisfactory set of results, with
profits before taxation close to last year's record level and Wynnstay's net
asset value at 25th March 2004 increasing to #10.4million, compared with
#9.4million at the same time last year.
Change 2004 2003
* Profit before property disposals and taxation - 0.5% #651,000 #654,000
* Profit on ordinary activities before taxation - 3.0% #732,000 #755,000
* Net asset value per share + 11.4% 331p 297p
* Basic and Fully Diluted Earnings per share - 8.6% 16.9p 18.5p
* Dividends per share + 5.6% 7.6p 7.2p
As anticipated at the interim stage, rental income showed a satisfactory
increase to #1,555,000, compared with #1,504,000 last year. This reflects the
benefit of rent reviews, lease renewals and new lettings on a number of
properties and the addition to the portfolio of the property at Chessington,
Surrey acquired in November 2003.
The portfolio was fully let and income-producing throughout the year, with the
exception of two industrial units, where the leases expired and the tenants
decided not to renew. One of these two units, vacated in September 2003, was
relet shortly before the year-end. The lease of the other unit expired in
February 2004 but is now occupied on an interim basis by a company having an
urgent need for additional space, with a view to a new letting being negotiated
over the coming months. Property outgoings increased over those incurred in the
last financial year largely as a result of the need to carry out remedial works
at this unit.
Considerable progress has been made over recent years in implementing the
policy, announced several years ago, of upgrading and repositioning Wynnstay's
portfolio. This has resulted in the profitable disposal of a number of older
properties where growth prospects appeared limited and the selective acquisition
of higher quality, more modern properties in central southern England,
especially in the industrial sector, that are likely to further enhance the
portfolio in the medium to longer term. Implementation of this policy will
continue over the next few years and it is therefore likely that we will be
selling some further properties where market conditions indicate that we can do
this profitably. But in planning and making disposals we will remain mindful of
the need to maintain a strong rental income stream.
To this end, towards the end of the financial year, we announced the disposal of
our property in Sheffield, comprising a banking hall and offices, which realised
a net profit before taxation of #81,000. The Board considered the growth
prospects in relation to this property to be limited and its location was
isolated from the rest of the portfolio. I reported at the half-year on our
acquisition of the Oakcroft Business Centre at Chessington, comprising three
2-storey modern units. In addition we inspected and reviewed a number of other
potential acquisitions and other properties are currently under consideration.
At the year end, the portfolio was independently valued at #17.45 million which,
by value, comprised 47% industrial property, 29% offices and 24% retail. The
resulting surplus for the year of #779,000 contributed towards the 11.4%
increase in net asset value from 297p per share last year to 331p per share.
Net gearing at the year-end was 58%, unchanged from last year, thereby providing
the opportunity to increase borrowings in order to fund further selective
expansion of the portfolio.
In the light of these results, the Directors are recommending a total dividend
for the year of 7.6p per share, representing an increase of 5.6% over that paid
in the previous year. This will be paid on 29th July 2004 to shareholders on
the register at 2nd July 2004.
At last year's Annual General Meeting questions were raised about Wynnstay's
representation in the City and how the number of shareholders might be expanded.
In this connection we announced at the end of February that Charles Stanley &
Co. Limited had been appointed as the Company's new brokers and nominated
advisers. Charles Stanley specialises in providing corporate finance, broking
and research services to smaller listed companies including the property sector.
Furthermore, it is one of the largest stockbroking firms in the United Kingdom
dedicated to serving private investors and has offices throughout the country.
It is also pleasing to note increased activity on the share register and I would
like to take this opportunity to welcome all new shareholders to Wynnstay.
The interest rate cycle has now turned, with rates having increased four times
since November 2003, having previously been at a 40 year low for much of last
year. Over one-half of Wynnstay's borrowings have been fixed until June 2006,
and thus our exposure to rate increases is limited. No one is presently
suggesting that rates are likely to return to the high levels of the 1980's and
early 1990's but we will continue to borrow prudently in order to expand
Wynnstay's business.
Looking back over the past five years, shareholders will note that there has
been a significant change in Wynnstay's performance. During this period,
dividends paid to shareholders have increased by 27%; whilst net asset value per
share has increased by 52%. This performance has been reflected in a
substantial increase in the quoted price of Wynnstay's shares.
Looking forward, our main priority is to continue with the profitable expansion
of Wynnstay's portfolio, providing shareholders with further income and capital
growth, and to continue to enlarge our shareholder base.
The current year has commenced satisfactorily, although it is as yet too early
to anticipate the likely outcome for 2004-2005. I will report to you on further
progress and developments with our interim results towards the end of this year.
Last year's Annual General Meeting attracted a record number of shareholders,
and I am hopeful that at least as many will be able to attend this year's
Meeting at the Royal Automobile Club on Thursday 22nd July 2004. As always on
this occasion, there will be an opportunity to ask questions and to meet other
shareholders as well as representatives from our professional advisers,
including our new brokers.
Our small dedicated management team have continued to work effectively with our
professional advisers in looking after the Company's interests during the year
and our thanks are due to them for contributing to a successful outcome.
Philip G H Collins
Chairman
CONSOLIDATED PROFIT AND LOSS ACCOUNT YEAR ENDED 25TH MARCH 2004
2004 2003
#'000 #'000
Turnover
Gross Rental Income 1,555 1,504
Fees and Commissions 20 18
-------------- --------------
1,575 1,522
Property Outgoings (82) (63)
-------------- --------------
1,493 1,459
Administrative Expenses (474) (452)
-------------- --------------
Operating Profit 1,019 1,007
Profit on Disposal of Investment Properties 81 101
-------------- --------------
1,100 1,108
Finance Costs
Interest Payable (378) (368)
Investment Income 10 15
-------------- --------------
(368) (353)
-------------- --------------
Profit on Ordinary Activities before Taxation 732 755
Taxation on Profit from Ordinary Activities (198) (171)
-------------- --------------
Profit after Taxation Attributable to Ordinary
Shareholders
534 584
Dividends per share:-
Interim Paid: 2.2p 2003: 2.1p (69) (66)
Final Payable: 5.4p 2003: 5.1p (171) (161)
------ ------ -------------- --------------
Total: 7.6p 7.2p (240) (227)
------ ------ -------------- --------------
Retained Profit for the Financial Year
Wynnstay Properties PLC 292 347
Subsidiary Companies 2 10
-------------- --------------
294 357
======== ========
Basic and Fully-Diluted Earnings per Share 16.9p 18.5p
Normalised Earnings per Share 14.4p 15.7p
CONSOLIDATED BALANCE SHEET AT 25TH MARCH 2004
2004 2003
#'000 #'000
Fixed Assets
Tangible Assets 17,470 15,517
Investments 1 1
------------- -------------
17,471 15,518
Current Assets
Debtors 60 69
Cash at Bank and in Hand 515 287
------------- -------------
575 356
Creditors: Amounts falling due within one year (837) (712)
------------- -------------
Net Current Liabilities (262) (356)
------------- -------------
Total Assets Less Current Liabilities 17,209 15,162
Creditors: Amounts falling due after more than one year (6,600) (5,700)
------------- -------------
10,609 9,462
Provisions for Liabilities and Charges (160) (86)
------------- -------------
Net Assets 10,449 9,376
======= =======
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 4,505 3,797
------------- -------------
Non-Distributable Reserves 5,996 5,288
Profit and Loss Account 3,664 3,299
------------- -------------
Equity Shareholders' Funds 10,449 9,376
======= =======
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 25TH MARCH 2004
2004 2003
#'000 #'000
Cash Flow from Operating Activities 1,073 1,081
Returns on Investment and Servicing of Finance
Interest Received 10 7
Interest Paid (306) (374)
---------------- ----------------
Net Cash (Outflow) from Returns on
Investment and Servicing of Finance (296) (367)
Taxation Paid (118) (144)
Capital Expenditure and Financial Investment
Purchase of Tangible Fixed Assets (2,006) (1)
Disposal of Tangible Fixed Assets 905 266
Sinking Fund Policy (Maturity Proceeds) - 65
---------------- ----------------
Net Cash (Outflow)/Inflow from
Investing Activities (1,101) 330
Equity Dividends Paid (230) (216)
---------------- ----------------
Net Cash (Outflow)/Inflow before Financing (672) 684
Financing
Drawdown of Bank Loan 1,800 -
Repayment of Bank Loan (900) (750)
---------------- ----------------
Increase/(Decrease) in Cash in the Period 228 (66)
========= =========
Reconciliation of Net Cash Flow to Movement in Net Debt
Increase/(Decrease) in Cash in the Period 228 (66)
Cash (Outflow)/Inflow from Debt Financing (900) 750
---------------- ----------------
Movement in Net Debt in the Period (672) 684
Net Debt at 25th March 2003 (5,413) (6,097)
---------------- ----------------
Net Debt at 25th March 2004 (6,085) (5,413)
========= =========
OTHER FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2004
2004 2003
#'000 #'000
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Profit for the Financial Year after Taxation 534 584
Taxation on Realised Property Revaluation - (6)
Unrealised Surplus on Revaluation of Investment Properties 779 1,110
------------------ ------------------
Total Recognised Gains and Losses for the Year 1,313 1,688
========== ==========
RECONCILIATION OF MOVEMENT OF
SHAREHOLDERS' FUNDS
Opening Shareholders' Funds as at 26th March 2003 9,376 7,915
Profit for the Financial Year after Taxation 534 584
Dividends (240) (227)
Other recognised Gains and Losses - as per Statement of Total
Recognised Gains and Losses (as above)
779 1,104
------------------ ------------------
Closing Shareholders' Funds as
at 25th March 2004 10,449 9,376
========== ==========
NOTE OF HISTORICAL COST PROFITS AND LOSSES
Profit on Ordinary Activities before Taxation 732 755
Realisation of Sinking Fund Investment Policy - 56
Realisation of Property Revaluation Gains on Previous Years 71 93
------------------ ------------------
Historical Cost Profit on Ordinary Activities before Taxation 803 904
========== ==========
Historical Cost Profit for the Year Retained after Taxation and
Dividends
365 506
========== ==========
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 2003, 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 fully-diluted earnings per share have been calculated on
profits after taxation attributable to Shareholders of #534,000 (2003: #584,000)
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 profit on
property disposals, of #453,000 (2003: #495,000) on the same weighted average of
3,155,267 shares.
3. A final dividend of 5.4p (2003: 5.1p) per share is being recommended and
will be paid on 29th July 2004 to Shareholders on the register at the close of
business on 2nd July 2004.
4. The 2004 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
22nd July 2004 at The Royal Automobile Club, 89 Pall Mall, London SW1Y 5HS.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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