Half-yearly Report and notice of dividend

27 September 2010 GSC Property Holdings plc Interim results for the 6 months to 30 June 2010 Highlights: * Rental income falls slightly to £3,644,552 (2009: £3,915,575) * Operating profit before property disposals falls to £2,932,432 (2009: £3,062,873) * Interim dividend 1.5p pence per share (2009: 2.0 pence) Mark Rubin, Chief Executive commented: "Trading in the six months to 30 June 2010 has been steady, broadly maintaining the level of the previous year. GSC remains well placed to capitalise on opportunities as they arise; in the meantime our investment portfolio continues to generate a substantial and reliable return." For further information please contact: Mark Rubin, Chief Executive 01702 293 300 Jonathan Williams, Bishop Fleming (Corporate Adviser) 0117 910 0250 Anthony Spiro, Spiro Financial (Press and Investor Relations) 020 8336 6196 ------------------------------------ GSC Property Holdings specialises in commercial property investment in the UK. The company's strategy is to spread risk through building a diverse portfolio to minimise exposure to any single end use or geographical area. Our objective is to add maximum value for shareholders. ------------------------------------ CHAIRMAN'S STATEMENT FOR THE CONSOLIDATED UNAUDITED GROUP RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2010 Trading in the six months to 30 June 2010 has been steady, broadly maintaining the level of the previous year. The severe market movements resulting from the financial crisis, which destabilised the property market, seem to have worked their way through the system, although there are still few signs of any sustained recovery. Operating profit at £2,932,432 was little changed from last year's level of £ 3,062,873. This was achieved on rental income of £3,644,552 compared with £ 3,915,575 in the equivalent period last year. This is a satisfactory performance in a difficult market and reflects the breadth and underlying strength of our portfolio. The Board has declared a dividend of 1.5 pence (2009: 2.0 pence) which will be paid on 24th November 2010 to shareholders on the register on 10th November 2010. Property investment activity in the six months to end June 2010 remained at a low level. In June the company sold its interest in a supermarket in Wakefield, which produced a loss of £675,000. The premises had been empty for some time; discussions had taken place with a major supermarket group for many months but little progress was being made. As the premises were costing GSC in the region of £100,000 per annum in interest and rates, the decision was taken to dispose of the Company's interest to another buyer, albeit at a loss. Currently the number of vacant sites is very small and all are under offer. The hotel portfolio is trading satisfactorily, a feature is that in Plymouth a major refurbishment will commence shortly which will significantly improve trading prospects. The Company's portfolio and rental income flow is being maintained, although inevitably in the current climate some tenants are under more financial pressure than others. We remain opportunistic and will act quickly when the right transaction becomes available but are under no pressure to deal and yields show little sign of movement. Lines of credit are in place although generally the funding market remains tight. GSC is a successful, well-financed business with a conservative and proven investment strategy, which has allowed the company to ride out the recent storms. The overall outlook for property investment is still unclear but we remain well placed to capitalise on opportunities as they arise; in the meantime our investment portfolio continues to generate a substantial and reliable return. Alan Gershlick Chairman 27 September 2010 CONSOLIDATED PROFIT AND LOSS ACCOUNT For the half year ended 30 June 2010 note 6 months to 6 months to 12 months to 30 Jun 2010 30 Jun 2009 31 Dec 2009 (unaudited) (unaudited) (audited) £ £ £ Turnover 2 3,644,552 3,915,575 8,342,418 ------------- ------------- ------------- Gross profit 3,601,152 3,852,275 8,214,566 Administrative and (668,720) (789,402) (2,433,112) distribution expenses ------------- ------------- ------------- Operating profit 2,932,432 3,062,873 5,781,454 Net loss on sale of (675,000) - (175,000) Investment Property Other operating income - 152,150 - ------------- ------------- ------------- Profit before interest 2,257,432 3,215,023 5,606,454 Interest payable (net) (2,443,004) (2,518,168) (5,207,744) ------------- ------------- ------------- (Loss) / Profit on (185,572) 696,855 398,710 ordinary activities before tax Tax on profit on ordinary 3 - - - activities ------------- ------------- ------------- (Loss) / Profit for the (185,572) 696,855 398,710 period ============= ============= ============= Earnings per ordinary 5 1.77 6.66 4.77 share (p) Statement of total realised gains and losses 6 months to 6 months to 12 months to 30 Jun 2010 30 Jun 2009 31 Dec 2009 (unaudited) (unaudited) (audited) £ £ £ (Loss)/ Profit for the (185,572) 696,855 398,710 financial period Unrealised surplus on - - 100,000 revaluation of property ---------- ----------- ------------ Total recognised gains (185,572) 696,855 498,710 and losses for the period ========== =========== ============ CONSOLIDATED BALANCE SHEET At 30 June 2010 Unaudited Unaudited 31 December as at as at 2009 (audited) 30 June 2010 30 June 2009 Note £ £ £ Fixed Assets Intangible assets 255,426 273,041 264,234 Tangible assets 4,181,997 4,312,549 4,240,487 Investment properties 6 82,971,001 86,521,001 84,371,001 -------------- -------------- -------------- 87,408,424 91,106,591 88,875,722 ============= ============= ============== Current assets Stock 14,641 12,896 10,391 Asset held for sale 20,000,000 20,000,000 20,000,000 Debtors 936,838 2,163,319 923,194 Other short-term 200 200 200 investments Cash at bank and in hand 1,182,381 647,217 1,199,313 -------------- -------------- -------------- 22,134,060 22,823,632 22,133,098 ============= ============= ============== Creditors: amounts falling (7,222,277) (6,870,695) (6,498,398) due within one year -------------- -------------- -------------- Net current assets 14,911,783 15,952,937 15,634,700 -------------- -------------- -------------- Total assets less current 102,320,207 107,059,528 104,510,422 liabilities Creditors: amounts falling (84,155,509) (88,197,758) (86,056,157) due in more than one year Provisions: deferred tax - - - -------------- -------------- -------------- Total assets 18,164,698 18,861,770 18,454,265 ============= ============= ============== Capital and reserves Called up share capital 104,680 104,680 104,680 Share premium account 1,414,350 1,414,350 1,414,350 Revaluation reserve 12,956,326 12,362,810 12,536,826 Profit and loss account 3,689,342 4,979,930 4,398,409 -------------- -------------- -------------- Shareholders' funds 18,164,698 18,861,770 18,454,265 ============= ============= ============== NOTES TO THE INTERIM REPORT 2010 1. BASIS OF PREPARATION The accounting policies used for the audited financial statements at 31 December 2009 have been used in the preparation of this interim report. The interim report is unaudited and does not comprise full financial statements. The results for the year to 31 December 2009 are an abridged summary of the financial statements for that year which have been delivered to the Registrar of Companies and on which the auditors' report was unqualified. 2. TURNOVER Turnover represents rental income on the group's investment portfolio and turnover from hotels, invoiced in the period and is stated net of VAT. Included within turnover is £457,100 of revenues from hotel operations (2009: £589,700). 3. TAX CHARGE No provision has been made for corporation tax for the current half year because of tax losses being brought forward from last year. 4. DIVIDENDS PROPOSED The directors propose an interim dividend of 1.5p per share (£157,020) which will be paid on 24th November 2010 to shareholders on the register at the close of business on 10th November 2010. In accordance with FRS21 the company recognises dividends in the financial statements in the period in which they are paid. 5. EARNINGS PER SHARE Earnings per share have been calculated to include total earnings attributable to equity shareholders arising in the period: 6 months 6 months 12 months to 30 June to 30 June to 31 2010 2009 December 2009 £ £ £ Total earnings/losses arising (185,572) 696,855 498,710 in the period Weighted average shares in 10,468,000 10,468,000 10,468,000 issue Total (loss) / earnings per (1.77) 6.66 4.77 share (p) 6. INVESTMENTS During the period the company sold a supermarket in Wakefield for £725,000, a loss of £675,000 from the carrying value of the property. The property, which had been empty since the start of 2008, was costing the company £100,000 in interest and rates. The directors of GSC Property Holdings plc accept responsibility for this announcement

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