Final Results
Dawnay, Day Carpathian PLC
28 April 2008
Dawnay, Day Carpathian PLC
('Dawnay, Day Carpathian' or the 'Company' or the 'Group')
Preliminary results for the twelve months ended 31 December 2007
Highlights:
• The Company is substantially invested, having spent or committed
approximately 95% of its funds, leaving the Company ideally placed to be
fully invested well ahead of the target investment timetable of 31 December
2008
• Adjusted NAV per share* increased by 8% to 136.7p (2006: 126.7p)
• Proposed final dividend of 3.34 pence per share giving a total dividend
of 10p per share (2006: 6p)
• Net rental and related income increased by 91% to £24.3 million (2006:
£12.7 million)
• Adjusted profit before tax** increased by 18.5% to £11.5 million (2006:
9.7 million)
• Adjusted earnings per share*** 12p (2006: 26.7p)
• The portfolio has been revalued at £523.1 million (2006: £368.7 million)
as at 31 December 2007, a net uplift of £16 million. Net uplift is the
difference between the 31 December 2007 DTZ valuations and those at 31
December 2006 or subsequent cost for those properties acquired during the
year
• The Group completed a total of eight acquisitions, comprising three
retail property portfolios and five retail development sites
*Adjusted NAV excludes goodwill and deferred tax on property valuations.
**Adjusted profit before tax excludes revaluation gains and losses on property,
financial assets and liabilities and foreign exchange.
*** Adjusted EPS excludes unrealised deferred tax charge on revaluation surplus
Rupert Cottrell, Chairman of Dawnay, Day Carpathian, said: 'This has been a very
successful period for the Company. We have now largely completed the acquisition
phase of our business plan and as a result we have entered the next phase of
working on consolidating the portfolio and progressing our development projects.
While the current uncertain market conditions dictate a degree of caution, we
believe our portfolio is sufficiently diversified to withstand this and that we
are in a good position to improve the overall value of the portfolio thus
delivering meaningful value to shareholders. '
Enquiries:
Dawnay, Day PanTerra Paul Rogers 020 7834 8060
Balazs Csepregi
Cardew Group Tim Robertson 020 7930 0777
Catherine Maitland
Numis Securities Charles Farquhar 020 7260 1000
Anthony Richardson
Nick Westlake
For further information and a copy of the investor presentation please visit the
Company's website at www.dawnaydaycarpathian.com
Chairman's Statement
I am pleased to report that the Group has made significant progress during 2007.
In May 2007, the Company successfully raised a further £100 million (before
expenses) by means of a placing (the 'Placing') of 83,333,334 new ordinary
shares at 120p per share. Together with the proceeds raised from the Company's
admission to trading on AIM in July 2005, the Company has now raised proceeds of
£240 million (before expenses). At the time of the Placing, the Company also
sought to participate in development and regeneration projects by investing up
to 25 per cent of its equity into retail property development and regeneration
projects.
The Group has largely completed its investment programme well ahead of the
target timetable of December 2008 set at the time of the Placing. The Group now
has a well diversified portfolio of 55 property assets across 7 countries in
Central and Eastern Europe. The Company has built a good reputation and track
record within its target markets, developing strong relationships with local
businesses through its property investment advisor, Dawnay, Day PanTerra.
As the Company has now substantially invested the entire net proceeds of the
Placing, the primary focus is on active portfolio and individual asset
management, together with development initiatives in order to provide rental and
capital growth opportunities.
Operations
During the year, the Group completed a total of eight acquisitions, comprising
three retail property portfolios and five retail development sites.
The Marina Mokotow transaction comprises 31 retail units in an upmarket
residential development in Warsaw. In October 2007, the Group also acquired a
portfolio comprising two properties in Hungary and two in the Czech Republic,
which will provide secure, long term income flow, being let to major
international brand retailers on long leases. Finally, in December 2007, the
Group completed the purchase of six supermarkets in Croatia, the Company's first
purchase in that country. The units, in excess of 32,000 sqm, are let to the
largest retailer in Croatia.
As at 31 December 2007, the Group had acquired investment properties at a total
cost of £429.6 million, with an annualised rent roll in excess of £33.5 million
and a blended net initial yield of 7.8%.
During the course of the year, the Group also acquired a pipeline of four
development opportunities in Romania, for a total cost of £37.3 million,
allowing the Company to establish a strong presence in that country. All of
these projects will be undertaken in conjunction with our joint venture, Atrium
Developments. Current plans provide for the development of over 150,000 sqm,
with an end value in excess of approximately £300 million. Heads of terms have
already been agreed with a number of reputable operators and anchor tenants.
Construction is expected to span a two to three year period. Further, the
Company is also in advanced negotiations with several banks with whom it has
established relationships in relation to the arrangement of development
financing for the projects.
In addition, the Group has also entered into a forward purchase agreement to act
as a development funding partner in exchange for a 55% interest in a prime, city
centre retail development in Riga, with a planned opening in the second quarter
of 2010. This development has secured 100% of the construction financing
required and the leasing discussions are progressing well.
Property Portfolio Summary
Investment portfolio
+--------------+-----------+-----------------------+-----------+-----------+
| Country| Location| Property| Purchase| DTZ|
| | | | Price (£m)| valuation|
| | | | | (£m)|
+--------------+-----------+-----------------------+-----------+-----------+
|Czech Republic|Karlovy |Varyada Shopping Centre| 26.8| 38.3|
| |Vary | | | |
+--------------+-----------+-----------------------+-----------+-----------+
|Czech Republic|Czech |MID portfolio : 2 | 28.8| 30.4|
| |Republic |properties | | |
| | |(acquired October 2007)| | |
+--------------+-----------+-----------------------+-----------+-----------+
|Czech Republic| | | | |
|Total | | | 55.6| 68.7|
+--------------+-----------+-----------------------+-----------+-----------+
|Hungary |Budaors |Antana Logistic Park | 14.2| 16.7|
+--------------+-----------+-----------------------+-----------+-----------+
|Hungary |Hungary |Plaza Portfolio: 4 | 44.4| 58.9|
| | |properties | | |
+--------------+-----------+-----------------------+-----------+-----------+
|Hungary |Budapest |Ericsson Office | 11.5| 12.3|
| | |Building Complex | | |
+--------------+-----------+-----------------------+-----------+-----------+
|Hungary |Hungary |Interfruct Portfolio: | 55.8| 63.4|
| | |23 properties | | |
+--------------+-----------+-----------------------+-----------+-----------+
|Hungary |Hungary |MID Portfolio: 2 | 20.8| 22.0|
| | |properties | | |
| | |(acquired October 2007)| | |
+--------------+-----------+-----------------------+-----------+-----------+
|Hungary Total | | | 146.7| 173.3|
+--------------+-----------+-----------------------+-----------+-----------+
|Latvia |Riga |Blaumana 12 | 8.5| 9.4|
+--------------+-----------+-----------------------+-----------+-----------+
|Latvia Total | | | 8.5| 9.4|
+--------------+-----------+-----------------------+-----------+-----------+
|Lithuania |Panevezys |Babilonas Shopping | 23.0| 26.0|
| | |Centre | | |
+--------------+-----------+-----------------------+-----------+-----------+
|Lithuania | | | 23.0| 26.0|
|Total | | | | |
+--------------+-----------+-----------------------+-----------+-----------+
|Poland |Poland |Geant Portfolio: 4 | 42.3| 61.4|
| | |properties | | |
+--------------+-----------+-----------------------+-----------+-----------+
|Poland |Warszawa |Promenada Shopping | 94.5| 122.8|
| | |Centre | | |
+--------------+-----------+-----------------------+-----------+-----------+
|Poland |Slupsk |Biedronka Supermarket | 0.8| 1.1|
+--------------+-----------+-----------------------+-----------+-----------+
|Poland |Warszawa |Marina Mokotow | 4.4| 5.2|
| | |(acquired October 2007)| | |
+--------------+-----------+-----------------------+-----------+-----------+
|Poland Total | | | 142.0| 190.5|
+--------------+-----------+-----------------------+-----------+-----------+
|Romania |Brasov |Macromall Shopping | 13.1| 13.5|
| | |Centre | | |
+--------------+-----------+-----------------------+-----------+-----------+
|Romania Total | | | 13.1| 13.5|
+--------------+-----------+-----------------------+-----------+-----------+
|Croatia |Croatia |Agrokor Portfolio: 6 | 40.7| 41.7|
| | |properties | | |
| | |(acquired December | | |
| | |2007) | | |
+--------------+-----------+-----------------------+-----------+-----------+
|Croatia Total | | | 40.7| 41.7|
+--------------+-----------+-----------------------+-----------+-----------+
|Grand Total | | | 429.6| 523.1|
+--------------+-----------+-----------------------+-----------+-----------+
The gross lettable area of the portfolio is approximately 400,000 sqm, and the
Company's property investment advisor, Dawnay, Day PanTerra, has identified the
potential to increase this by approximately 20% over the next few years.
The revaluation surplus at 31 December 2007 at the individual property level
varies due to the length of actual ownership of each property. The Antana
Logistic Park and the Ericsson Office Building complex were both acquired with
the intention of implementing regeneration projects to maximise their future
value while providing attractive income yields at present.
Development portfolio
+--------------+-----------+-----------------------+-----------+-----------+
| Country| Location| Property| Purchase| DTZ|
| | | | Price (£m)| valuation*|
| | | | | (£m)|
+--------------+-----------+-----------------------+-----------+-----------+
|Romania |Arad |Development site with | 8.2| 9.3|
| | |permits | | |
+--------------+-----------+-----------------------+-----------+-----------+
|Romania |Baia Mare |Development site with | 12.4| 13.4|
| | |permits | | |
+--------------+-----------+-----------------------+-----------+-----------+
|Romania |Cluj Napoca|Development site with | 9.7| 11.2|
| | |permits | | |
+--------------+-----------+-----------------------+-----------+-----------+
|Romania |Satu Mare |Development site with | 7.0| 7.5|
| | |permits | | |
+--------------+-----------+-----------------------+-----------+-----------+
|Romania Total | | | 37.3| 41.4|
+--------------+-----------+-----------------------+-----------+-----------+
* valuation at purchase, and capitalised costs
The planned gross lettable area of the four developments in Romania is expected
to exceed 150,000 sqm.
When completed, the Riga development will be in excess of 35,000 sqm, and the
Company has invested approximately £20.3m in the project to date, in the form of
an asset backed loan.
Financial Results
The net rental and related income for the year amounted to £24.3 million, an
increase of 91% over 2006, reflecting a first-time, full year contribution from
those properties acquired in 2006 and the acquisitions made during 2007.
The portfolio has been valued by DTZ Debenham Tie Leung Limited ('DTZ') as at 31
December 2007 at £523.1 million, giving a net uplift of £16 million compared to
the 31 December 2006 valuation (or the purchase price if acquired thereafter).
The cumulative revaluation surplus amounts to £55.2 million (excluding foreign
exchange movements).
As the Group's functional currency is the euro, and its presentation currency is
sterling, the continued strengthening of the euro against sterling had to be
presented in the financial statements in accordance with IFRS. This has resulted
in an unrealised foreign exchange loss on its sterling cash deposits of £7.0
million over the period, while a net unrealised gain of £23.1 million on the
euro denominated property valuation was classified under the translation
reserve. The present strengthening of the euro benefits the shareholders of the
Group as it is the underlying currency for the majority of its rental income.
The Company overall generated a net profit before tax of £21.9 million. Adjusted
profit before tax, which excludes any fair value and exchange movements amounted
to £11.5 million, an increase of 18% over 2006.
Basic earnings per share were 8.3 pence, while the diluted earnings per share is
7.3 pence for the year. The adjusted earnings per share excluding the unrealised
tax liabilities is 12 pence for the year.
The net asset value per share, adjusted to exclude goodwill and associated
deferred tax liabilities arising on the property valuations, has risen to 136.7
pence from 126.7 pence, an increase of 8%. Non-adjusted, net asset value per
share has also risen, to 123.9 pence from 114.2 pence at 31 December 2006, an
increase of 8.5%.
At 31 December 2007, the Group's borrowings totalled £310.4 million,
representing a loan to value ratio of 57% and a loan to cost ratio of 69% of the
investment property. Following the £30 million refinancing of the Agrokor
Portfolio in March 2008, the loan to value ratio has risen to 62% and a loan to
cost ratio of 76% of the investment property. The above loan balance also
includes land and development related financing at a total amount of £13.7
million.
All loans are secured against properties and are denominated in euros. The
weighted average interest rate for the year was 5.52%. Hedging instruments are
in place for all loans, which swap the variable Euribor rate to fixed rate with
a weighted average rate of 3.7%.
The Group actively manages its cash flow to deliver maximum returns. At the 2007
year end, the Group's current liabilities were temporarily higher than its
current assets which was primarily due to the equity invested into the Agrokor
project. The purchase contract provided for the transaction to be rescinded
should debt financing be unavailable. However, as the debt financing was
successfully completed, in March 2008 the Group has, as anticipated returned to
a positive balance of current assets and liabilities.
Dividends
A first interim dividend of 3.33 pence per share for the year ending 31 December
2007 was declared in April 2007 and was paid in September 2007.
A second interim dividend, also of 3.33 pence per share, was declared in
November 2007 and paid in January 2008. This second interim dividend was the
first dividend in respect of which the new placing shares issued in May
qualified for.
The Board intends to declare, subject to shareholder approval, a final dividend
for the year, of 3.34 pence per share. This will result in an aggregate dividend
payment of 10 pence per share for the year ending 31 December 2007, which
achieves the Board's previously stated target.
In light of the markedly different economic climate, and the impact this has had
on the property sector, the Board has set a new dividend objective for 2008 of
8 pence per share which still represents an attractive yield but also takes
account of the current market environment. The dividend is expected to be
funded partially from value realizations and from income generated by the
investment properties.
Outlook
While we believe that the current uncertain market and financial conditions will
no doubt continue for some time, in our view the diversity of our portfolio and
the expertise of our property investment advisor will assist us to continue to
add value for shareholders in order to deliver very attractive returns.
Having now successfully invested the available funds well ahead of our target
timetable, the immediate focus will be to realise value within our investment
portfolio and to progress our development projects. The key to our continuing
success rests upon utilising the property investment advisor's extensive local
experience, and relationships across our markets. In addition, we will progress
asset management opportunities including adding additional space to our existing
properties and look to take advantage of the current environment through
opportunities such as distressed sales. We are therefore confident of continuing
to deliver value to our shareholders in the current financial year and beyond.
Rupert Cottrell
Chairman
INCOME STATEMENT
2007 2006
Note Group Group
£'000 £'000
Gross rental income 3 27,051 15,799
Service charge income 9,635 5,946
Service charge expense ( 10,886) ( 6,712)
Property operating expenses ( 3,401) ( 2,679)
Other property income 1,895 335
__________________________
Net rental and related income 24,294 12,689
Changes in fair value of investment property 8 15,983 36,792
Changes in fair value of financial assets and
liabilities 1,409 ( 1,147)
Net foreign exchange (loss)/gain ( 6,971) 1,388
Administrative expenses 4 ( 4,685) ( 2,140)
__________________________
Net operating profit before net financing expense 30,030 47,582
__________________________
Financial income 5 7,375 6,839
Financial expense 5 ( 15,528) ( 7,660)
__________________________
Net financing (expense) ( 8,153) ( 821)
__________________________
__________________________
Net profit before tax 21,877 46,761
Tax 6 ( 6,947) ( 10,739)
__________________________
PROFIT FOR THE YEAR 14,930 36,022
__________________________
Attributable to:
Equity holders of the Company 7 16,202 30,706
Minority interest 7 ( 1,272) 5,316
Basic and diluted earnings per share for profit attributable
to the equity holders of the Company during the year
(expressed as Pence per share)
Basic earnings per share 7 8.3 p 21.1 p
Diluted earnings per share 7 7.3 p 21.0 p
STATEMENT OF CHANGES IN EQUITY
Share Share Minority Translation Retained
Capital Premium Interest Reserve Earnings Total
GROUP Note £'000 £'000 £'000 £'000 £'000 £'000
________________________________________________________________
Balance as at 1 January 2006 1,454 125,556 230 ( 95) 14,675 141,820
Profit for the year - - - - 36,022 36,022
Minority interest - - 460 - ( 460) -
Dividends paid 14 - - - - ( 2,909) ( 2,909)
Carried interest allocation to
minority shareholders - - 4,856 - ( 4,856) -
Translation into presentation
currency - - - ( 3,372) - ( 3,372)
________________________________________________________________
Balance as at 31 December
2006 1,454 125,556 5,546 ( 3,467) 42,472 171,561
________________________________________________________________
Balance as at 1 January 2007 1,454 125,556 5,546 ( 3,467) 42,472 171,561
Profit for the year - - - - 14,930 14,930
Dividends paid and declared 14 - - - - ( 18,342) ( 18,342)
Purchase of minority
shareholders' interest - - ( 688) - - ( 688)
Minority interest through
acquisitions - - 87 - - 87
Carried interest allocation to
minority shareholders ( 1,272) - 1,272 -
Issue of share capital 11 833 99,167 - - - 100,000
Costs of issue 11 - ( 3,315) - - - ( 3,315)
Exercise of share-based option 11 6 594 - - - 600
Share premium release 11 - ( 44,891) - - 44,891 -
Translation into presentation
currency - - - 23,127 - 23,127
________________________________________________________________
Balance as at 31 December
2007 2,293 177,111 3,673 19,660 85,223 287,960
________________________________________________________________
BALANCE SHEET
2007 2006
Note Group Group
£'000 £'000
ASSETS
Non-current assets
Investment property 8 523,112 368,692
Development property 8 41,428 -
Goodwill 25,576 16,578
Intangible assets 13 -
Costs relating to future acquisitions 291 436
Other investments 5,477 -
Loans receivable 14,846 -
Deferred income tax assets 9 1,027 964
____________________________________
611,770 386,670
____________________________________
Current assets
Trade and other receivables 10 12,776 10,368
Loans receivable 20 -
Cash and cash equivalents 62,103 75,131
Financial assets 4,762 2,666
____________________________________
79,661 88,165
____________________________________
TOTAL ASSETS 691,431 474,835
____________________________________
EQUITY
Issued capital 11 2,293 1,454
Share premium 11 177,111 125,556
Retained earnings 85,223 42,472
Translation reserve/(deficit) 19,660 ( 3,467)
____________________________________
Total equity attributable to equity
holders of the parent 284,287 166,015
____________________________________
Minority interest 3,673 5,546
____________________________________
TOTAL EQUITY 287,960 171,561
____________________________________
LIABILITIES
Non-current liabilities
Bank loans 12 233,382 189,535
Deferred income tax liabilities 9 56,333 35,336
____________________________________
289,715 224,871
____________________________________
Current liabilities
Trade and other payables 13 27,884 11,838
Bank loans 12 77,055 64,702
Provisions 647 729
Dividends payable 14 7,638 -
Financial liabilities 532 1,134
____________________________________
113,756 78,403
____________________________________
____________________________________
TOTAL LIABILITIES 403,471 303,274
____________________________________
TOTAL EQUITY AND LIABILITIES 691,431 474,835
____________________________________
2007 2006
CASH FLOW STATEMENT Note Group Group
£'000 £'000
Cash flows from operating activities
Cash (used in)/ generated from operations 15 ( 13,730) 2,940
Income taxes paid ( 1,830) ( 797)
____________________________
Net cash (used in)/ generated from operating
activities ( 15,560) 2,143
____________________________
Cash flows from investing activities
Capital expenditure on investment properties ( 8,870) ( 34,486)
Capital expenditure on development properties ( 8,354) -
Capital expenditure on incomplete acquisitions ( 337) ( 436)
Capital expenditure on intangible assets ( 13) -
Loan advances to unconsolidated entities ( 14,866) -
Investment in unconsolidated entities ( 5,419) -
Interest received 5,733 4,593
Acquisition of subsidiaries ( 41,987) ( 70,937)
Acquisition of minority interest in subsidiaries ( 1,035) -
Loans advanced to subsidiaries before acquisition - ( 22,476)
____________________________
Net cash used in investing activities ( 75,148) ( 123,742)
____________________________
Cash flows from financing activities
Proceeds on issue of shares, net of share issuance
costs 97,285 -
New bank loans raised 53,019 86,045
Interest paid ( 13,796) ( 7,075)
Repayments of borrowings ( 50,219) -
Dividends paid ( 10,704) ( 7,272)
____________________________
Net cash generated from financing activities 75,585 71,698
____________________________
Net decrease in cash and cash equivalents ( 15,123) ( 49,901)
Cash and cash equivalents at the beginning of the 75,131 126,145
year
Exchange gains/(losses) on cash and cash 2,095 ( 1,113)
equivalents
____________________________
Cash and cash equivalents at the end of the year 62,103 75,131
____________________________
Abbreviated notes to the Consolidated financial statements
1. Accounting basis
Dawnay, Day Carpathian PLC (the 'Company') is a company domiciled and
incorporated in the Isle of Man on 2 June 2005 for the purpose of investing in
the retail property market in Central and Eastern Europe.
The consolidated financial statements for Dawnay, Day Carpathian PLC (the
'Group') and financial statements for the Company have been prepared for the
year ended 31 December 2007.
The financial information set out above does not constitute the Group's
statutory accounts for the year ended 31 December 2007. The figures for the year
ended 31 December 2007 are extracted from the audited Group financial statements
('the financial statements'). A copy of the financial statements, on which the
auditors have issued an unqualified report, will be lodged with the Registrar of
Companies. The results for the year ended 31 December 2007 have been prepared on
the basis of the accounting policies set out in the financial statements.
2. Significant accounting policies
The consolidated financial statements have been prepared in accordance with the
International Financial Reporting Standards (IFRS), details of accounting
policies adopted by the Group can be found in the financial statements
3. Gross rental income 2007 2006
Group Group
£'000 £'000
Gross lease payments collected/accrued 27,051 15,799
_________________
The Group leases out its investment property under operating leases. All
operating leases are for terms of 1 - 15 years.
4. Administrative expenses
2007 2006
Group Group
£'000 £'000
Accounting fees 567 401
Other administrative expenses 1,564 356
Audit fees 521 323
Legal fees 445 264
Abortive acquisition costs 464 234
Non-executive Directors fees 138 135
Bank charges and fees 336 89
Portfolio management fees 156 87
Tax advisory fees 57 85
Nominated advisor fees 56 61
Public relation fees 49 56
Consultancy fees 137 -
Custody/trust fees 38 36
Irrecoverable VAT 157 13
______________
4,685 2,140
______________
Other administrative expenses include items such as stationary, postage,
telecommunications and travel.
5. Net financing expense
2007 2006
Group Group
£'000 £'000
Interest income from financial institutions 5,907 4,593
Interest income from related party 589 -
Fair value adjustment of interest rate swaps 879 2,246
____________________
Financial income 7,375 6,839
Net interest expenses on bank borrowings ( 14,814) ( 7,597)
Finance costs amortised ( 116) -
Unwinding of unrealised direct issue costs of
borrowings ( 598) ( 63)
____________________
Net financing expense ( 8,153) ( 821)
____________________
6. Tax
2007 2006
Recognised in the Income Statement Group Group
£'000 £'000
Current tax expense
Current year 508 1,108
Prior year ( 168) -
Deferred tax expense
Origination of temporary differences 6,607 9,631
_________________
Total income tax expense in the Income Statement 6,947 10,739
_________________
7. Earnings per share
Basic earnings per share
The calculation of basic earnings per share for the year ended 31 December 2007
was based on the profit attributable to ordinary shareholders of £ £16,202,416
(2006: £ 30,705,369) and a weighted average number of ordinary shares in issue
of 196,169,559 (2006: 145,430,015)
Diluted earnings per share
The calculation of diluted earnings per share for the year ended 31 December
2007 was based on the diluted profit attributable to ordinary shareholders of
£14,460,545 (2006: £ 30,705,369) and a weighted average number of ordinary
shares outstanding during the year ended 31 December 2007 of 197,705,853 (2006:
146,515,868).
8. Investment property and development property
2007 2007 2007
Investment Development Total
property property
Group Group Group
£'000 £'000 £'000
Balance at 1 January 368,692 - 368,692
Acquisitions through
business combinations 90,280 30,525 120,805
Acquisitions through
direct asset purchases 7,607 6,814 14,421
Additions 1,264 1,540 2,804
Increase in fair value 15,983 - 15,983
Foreign exchange effect 39,286 2,549 41,835
_______________________________________________
Balance at 31 December 523,112 41,428 564,540
_______________________________________________
2006 2006 2006
Investment Development Total
property property
Group Group Group
£'000 £'000 £'000
Balance at 1 January 87,054 - 87,054
Acquisitions through
business combinations 215,530 - 215,530
Acquisitions through
direct asset purchases 33,833 - 33,833
Additions 654 - 654
Increase in fair value 36,792 - 36,792
Foreign exchange effect ( 5,171) - ( 5,171)
_______________________________________________
Balance at 31 December 368,692 - 368,692
_______________________________________________
9. Deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following items:
2007 2007 2006 2006
Group Group Group Group
Assets Liabilities Assets Liabilities
£'000 £'000 £'000 £'000
Investment
property
valuation - 55,186 - 34,798
Interest rate
swap valuation - 516 - 324
Accrued
interest
payable 37 - 55 -
Tax losses
brought
forward 990 - 909 -
Other
temporary
differences - 631 - 214
_______________________________________
1,027 56,333 964 35,336
_______________________________________
10. Trade and other receivables 2007 2006
Group Group
£'000 £'000
Trade receivables 3,043 2,569
Other receivables 4,948 6,447
Tax receivable 622 -
Prepayments 1,675 1,352
Accrued interest on loans 764 -
Subsidiary purchase price adjustment receivable 1,724 -
_________________________
12,776 10,368
_________________________
11. Share capital and share premium
Authorised: Number of
ordinary
shares of
1 pence each £'000
At 31 December 2006 200,000,000 2,000
17 May 2007 - Increase
of authorised share capital 150,000,000 1,500
_____________________________
At 31 December 2007 350,000,000 3,500
_____________________________
On 17 May 2007 the authorised share capital of the Company was increased to
£3,500,000 by the creation of 150,000,000 ordinary shares of 1 pence each.
Number of Share capital Share premium
shares Issued £'000 £'000
and fully
paid
Issued:
Ordinary shares of 1p each
Balance at 31 December 2006 145,430,015 1,454 125,556
23 February 2007 - share
option exercised 600,000 6 594
18 May 2007 - issue for cash 83,333,334 833 99,167
18 May 2007 - placing cost - - ( 3,315)
Transfer to distributable
reserves - - ( 44,891)
___________________________________________
Balance at 31 December 2007 229,363,349 2,293 177,111
___________________________________________
Holders of the ordinary shares are entitled to receive dividends and other
distributions and to attend and vote at any general meeting.
On 18 May 2007, the Company issued 83,333,334 ordinary shares in relation to its
public offering at £1.20 per share. The Company incurred costs of £ 3,315,000
relating to the issue of shares. These equity transaction costs were deducted
from equity in accordance with IAS 32: Financial instruments disclosure and
presentation.
On 17 May 2007 the Company passed a resolution at an Extraordinary General
Meeting, which was subsequently approved by the Court, to cancel 20% of the
Company's' share premium account to create distributable reserves.
12. Interest-bearing loans and borrowings
This note provides information about the contractual terms of the Group's
interest-bearing loans and borrowings.
Group Group
£'000 £'000
Bank loans - non-current 233,382 189,535
Bank loans - current 77,055 64,702
________________________
310,437 254,237
________________________
The borrowings are repayable as follows:
On demand or within one year 77,055 65,147
In the second year 79,963 23,507
In the third to fifth years inclusive 122,593 137,759
After five years 32,205 29,133
________________________
311,816 255,546
________________________
Unrealised direct issue cost of borrowings ( 1,379) ( 1,309)
________________________
310,437 254,237
________________________
Less: amount due for settlement within twelve months
(shown under current liabilities) ( 77,055) ( 64,702)
________________________
Amount due for settlement after twelve months 233,382 189,535
________________________
The Group has pledged each of its investment properties and its shares in the
special purpose vehicles holding the investment properties to secure related
interest-bearing debt facilities granted to the Group for the purchase of such
investment properties.
The weighted average cost of debt of the year was 5.52% (2006: 5.28%).
13. Trade and other payables 2007 2006
Group Group
£'000 £'000
Trade payables 18,531 5,559
Tenant deposits 2,285 1,812
Accrued interest 2,425 1,290
Related party payables 869 1,140
Tax payable - 869
Accrued expenses 2,833 704
Income received in advance 647 391
Subsidiary purchase price adjustment payable 294 73
________________________
27,884 11,838
________________________
14. Dividends 2007 2006
Group Group
£'000 £'000
First interim dividend (declared and paid) 4,868 2,909
Second interim dividend (declared in 2007 and paid in 7,638 -
2008)
Final dividend (declared and paid during 2007) 5,836
________________________
18,342 2,909
________________________
14. Dividends (continued)
On 23 April 2007 the Directors declared a final dividend of 4 pence per share
for the year ended 31 December 2006.
Two interim dividend declarations of 3.33 pence per share were declared on 23
April 2007 and on 27 November 2007. The second interim dividend was paid on 4
January 2008.
The Board intends to declare, subject to shareholder approval, a final dividend
for the year, of 3.34 pence per share. This will result in an aggregate dividend
payment of 10 pence per share for the year ending 31 December 2007, which
achieves the Board's previously stated target.
15. Notes to the cash flow statement
2007 2006
Group Group
Cash (used in)/ generated from operations £'000 £'000
Profit for the year 14,930 36,022
Adjustments for:
Increase in fair value of interest rate swaps ( 1,632) ( 2,246)
Increase in fair value of financial liabilities ( 656) 1,147
Unwinding of unrealised direct issue costs of
borrowings 598 63
Net other finance income 8,433 3,004
Increase in fair value of investment property ( 15,983) ( 36,792)
Costs relating to future acquisitions written off 439 -
Reversal of investment in subsidiaries 30 -
Provisions ( 82) -
Income tax expense 6,947 10,739
Unrealised foreign exchange loss/(gain) 6,971 ( 1,388)
_______________________
Operating cash flows before movements in working
capital 19,995 10,549
_______________________
Decrease/ (increase) in receivables 760 ( 3,091)
(Decrease)/ increase in payables ( 34,485) ( 4,518)
_______________________
Cash (used in)/ generated from operations ( 13,730) 2,940
_______________________
16. Financial Statements
Copies of the 2007 financial statements will be sent to all shareholders as soon
as practical. These documents will be available to the public at the offices of
the company: IOMA House, Hope Street, Douglas, Isle of Man, as well as on our
website www.dawnaydaycarpathian.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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