Final Results - Part 2
British Land Co PLC
29 May 2002
PART 2
The financial information set out above does not comprise the company's
statutory accounts. Statutory accounts for the previous financial year ended
31 March 2001 have been delivered to the Registrar of Companies. The
auditors' report on those accounts was unqualified and did not contain any
statement under section 237 (2) or (3) of the Companies Act 1985.
The auditors have given an unqualified opinion on the accounts for the year
ended 31 March 2002 which will be delivered to the Registrar of Companies
following the Annual General Meeting.
The Directors of The British Land Company PLC are responsible in accordance
with the Listing Rules of the Financial Services Authority and applicable
United Kingdom accounting standards for preparing and issuing this
preliminary announcement. Arthur Andersen have reviewed the announcement
having regard to Bulletin 1998/7 issued in the United Kingdom by the Auditing
Practices Board but have not yet completed their audit and signed their
auditors' report on the company's financial statements for the year ended 31
March 2002. Accordingly the financial statements have not yet been delivered
to the Registrar of Companies.
Consolidated Profit & Loss Account
for the year ended 31 March 2002
Note 2002 2001
(restated)+
£m £m
Gross rental income 513.8 475.6
Less share of joint ventures 9 (98.5) (85.5)
Gross rental income - Group 415.3 390.1
Net rental income 386.6 371.8
Profit on property trading 6.8 3.1
Other income 2 9.5 27.5
Administrative expenses (39.3) (28.6)
Operating profit 363.6 373.8
Share of operating profits of 9 88.6 76.5
joint ventures
Disposal of fixed assets - 3 37.0 32.1
including amounts from joint
ventures (note 9)
Profit on ordinary activities 489.2 482.4
before interest
Net interest payable - before 4 (317.9) (311.3)
exceptional item
Exceptional item 4 (83.6)
Profit on ordinary activities 171.3 87.5
before taxation
Taxation 5 (11.9) (26.3)
Profit on ordinary activities 159.4 61.2
after taxation
Ordinary dividends 6 (64.3) (59.6)
Retained profit for the year 95.1 1.6
Basic earnings per share 1,7 30.8 p 11.8 p
Diluted earnings per share 1,7 30.2 p 11.8 p
Adjusted basic earnings per 1,7 32.1 p 13.6 p
share *
Adjusted diluted earnings per 1,7 31.5 p 13.6 p
share *
Dividend per share 6 12.4 p 11.5 p
The results stated above relate to the continuing activities of the Group.
+ Restated as set out in note 1.
* Adjusted to exclude the capital allowance effects of FRS 19 as set out in
note 1.
Group Balance Sheet
as at 31 March 2002
Note 2002 2001
(restated)+
£m £m
Fixed assets
Investment 8 7,528.3 7,145.9
properties
Investments in
joint ventures
Share of gross 9 1,689.6 1,580.6
assets
Share of gross 9 (962.4) (876.4)
liabilities
727.2 704.2
Other 10 12.4 73.7
investments
8,267.9 7,923.8
Current assets
Trading 8 47.0 53.3
properties
Debtors 11 45.6 148.3
Cash and 366.9 94.2
deposits
Total current 459.5 295.8
assets
Creditors due
within one year
Convertible 15 (323.0)
bonds
Other creditors 12 (446.5) (706.0)
(769.5) (706.0)
Net current (310.0) (410.2)
liabilities
Total assets 7,957.9 7,513.6
less current
liabilities
Creditors due 13 (3,613.7) (3,057.3)
after one year
Convertible 15 (146.7) (463.9)
bonds
Provisions for 14 (89.6) (77.9)
liabilities and
charges
4,107.9 3,914.5
Capital and
reserves
Called up share 129.6 129.6
capital
Share premium 18 1,106.2 1,105.3
Other reserves 18 (5.4) (1.9)
Revaluation 18 2,165.0 2,092.1
reserve
Profit and loss 18 712.5 589.4
account
Shareholders' 4,107.9 3,914.5
funds
Adjusted Net
Asset Value
(NAV) per share Basic 17 833 p 802 p
Fully 17 803 p 774 p
diluted
(The NAV per share includes the external valuation surplus on development
and trading properties but excludes the capital allowance effects of FRS 19
- see note 1.)
Approved by the Board on 28 May 2002
+ Restated as set out in note 1.
Other Primary Statements
for the year ended 31 March 2002
2002 2001
(restated)+
£m £m
Statement of total
recognised gains and
losses
Profit on ordinary 159.4 61.2
activities after taxation
Unrealised surplus on
revaluation:
- investment properties 58.9 528.4
- joint ventures 48.8 5.6
- other investments (0.1) 5.6
107.6 539.6
Exchange movements on net (0.5) (0.7)
investments
Taxation on realisation (9.7)
of prior year
revaluations
Total recognised gains
and losses relating to
the financial year 256.8 600.1
Prior year adjustment 1.2
(see note 1) - UITF 28
effect
- FRS19 effect (91.7) (90.5)
Total recognised gains
and losses since
last financial statements 166.3 600.1
2002 2001
(restated)+
£m £m
Note of historical cost
profits and losses
Profit on ordinary 171.3 87.5
activities before
taxation
Realisation of prior year 33.6 66.5
revaluations
Taxation on realisation (9.7)
of prior year
revaluations
Historical cost profit on 195.2 154.0
ordinary activities
before taxation
Historical cost profit
for the year retained
after
taxation and dividends 119.0 68.1
+ Restated as set out in Note 1.
Other Primary Statements
for the year ended 31 March 2002
2002 2001
(restated)+
£m £m
Reconciliation of movements in
shareholders' funds
(excluding valuation surplus on development and
trading properties)
Profit on ordinary activities after taxation 159.4 61.2
Ordinary dividends (64.3) (59.6)
Retained profit for the year 95.1 1.6
Revaluation of investment properties and 107.6 539.6
investments
Exchange movements on net investments (0.5) (0.7)
Taxation on realisation of prior year (9.7)
revaluations
192.5 540.5
Shares issued 0.9 0.8
Increase in shareholders' funds 193.4 541.3
Opening shareholders' funds as previously stated 4,005.0 3,449.6
Prior year adjustment (see note 1) (90.5) (76.4)
Opening shareholders' funds as restated 3,914.5 3,373.2
Closing shareholders' funds 4,107.9 3,914.5
+ Restated as set out in note 1.
Group Cash Flow Statement
for the year ended 31 March
2002
Note 2002 2001
(restated)+
£m £m
Net cash inflow from operating 16 382.4 380.3
activities
Dividends received from joint 25.2 0.8
ventures
Return on investments and
servicing of finance
Interest received 59.9 10.2
Interest paid (including (366.1) (342.7)
£83.6m premium on bonds
repurchased - see Note 4)
Dividends received 5.1 6.8
(301.1) (325.7)
Taxation paid (7.7) (26.1)
Net cash inflow from operating
activities and
investments after finance 98.8 29.3
charges and taxation
Capital expenditure and
financial investment
Purchase of investment (426.1) (227.3)
properties
Purchase of investments (8.5) (9.8)
Sale of investment properties 148.9 403.6
Sale of investments 158.4 47.1
(127.3) 213.6
Acquisitions and disposals
Purchase of subsidiary company (8.0)
Investment in and loans to (176.0) (134.7)
joint ventures
Sale of shares in and loans 150.5 10.8
repaid by joint ventures
(25.5) (131.9)
Equity dividends paid (60.6) (57.5)
Net cash (outflow) inflow
before management
of liquid resources (114.6) 53.5
Management of liquid resources
Increase in term deposits (281.5) (1.0)
Financing
Issue of ordinary shares 0.9 0.4
Issue of Sainsbury 575.0
supermarkets securitised debt
Issue of Meadowhall Shopping 825.0
Centre securitised debt
Repurchase of bonds (300.0)
Decrease in bank and other (711.9) (78.0)
borrowings
389.0 (77.6)
Decrease in cash 16 (7.1) (25.1)
+ Restated as set out in note 1.
Notes to the accounts for the year ended 31 March 2002
1. Basis of preparation
The accounts are prepared on the basis of the accounting policies set out
in the Group's financial statements for the year ended 31 March 2001,
consistently applied in all material respects, save for the adoption of
Financial Reporting Standard 19 "Deferred Tax" (FRS 19) and Urgent Issues
Task Force Abstract 28 "Operating Lease Incentives" (UITF 28), which now
have effect.
The figures for the year ended 31 March 2001 have been extracted from the
statutory accounts which have been filed with the Registrar of Companies.
The auditors' report on those accounts was unqualified and did not contain
any statement under section 237 (2) or (3) of the Companies Act 1985; the
comparatives for the year ended 31 March 2001 have been restated to comply
with FRS 19 and UITF 28.
Deferred Tax
Deferred tax assets and liabilities arise from timing differences between
the recognition of gains and losses in the financial statements and their
recognition in a tax computation. Previously, the Group's accounting policy
was only to provide for deferred tax to the extent that liabilities or
assets were expected to be payable or receivable in the forseeable future.
In accordance with FRS 19, deferred tax is now provided in respect of all
timing differences that have originated, but not reversed, at the balance
sheet date that may give rise to an obligation to pay more or less tax in
the future. Deferred tax is not recognised when fixed assets are revalued
unless by the balance sheet date there is a binding agreement to sell the
revalued assets and the gain or loss expected to arise on sale has been
recognised in the financial statements. Deferred tax is measured on a
non-discounted basis.
Operating Lease Incentives
Operating lease incentives include rent free periods and other incentives
(such as contributions towards fitting out costs) given to lessees on
entering into lease agreements. Previously, the Group's accounting policy
was to recognise income as the rent fell due and to capitalise appropriate
incentives.
In accordance with UITF 28 rent receivable in the period from lease
commencement to the earlier of the first rent review to the prevailing
market rate and the lease end date, is now spread evenly over that period.
The cost of other incentives is spread on a straight-line basis over a
similar period.
This has been applied to all lease incentives for leases commencing on or
after 1 April 2000.
1. Basis of preparation (continued)
Restatement
Comparatives have been restated to comply with UITF 28 and FRS 19 and the
effects of the change in policy are summarised below:
Share of Earnings per
joint share
venture Profit
Operating operating after
profit profit Taxation taxation Basic Diluted
£m £m £m £m pence pence
Year ended 31 March
2002
Excluding
effects of
UITF 28
and FRS 19 363.0 87.3 (4.2) 165.2 31.9 31.2
Effects of 0.6 1.3 (0.5) 1.4 0.3 0.2
UITF 28
Effects of (7.2) (7.2) (1.4) (1.2)
FRS 19
As stated 363.6 88.6 (11.9) 159.4 30.8 30.2
Add back FRS
19
capital 7.2 7.2 1.3 1.3
allowances
As adjusted 363.6 88.6 (4.7) 166.6 32.1 31.5
Net asset value *
per share
Investment Shareholders' Fully
properties funds Basic diluted
£m £m pence pence
Year ended
31 March
2002
Excluding
effects of
UITF 28
and FRS 19 7,529.7 4,206.6 833 803
Effects of (1.4) 2.6
UITF 28
Effects of (101.3) (19) (16)
FRS 19
As stated 7,528.3 4,107.9 814 787
Add back FRS
19
capital 98.8 19 16
allowances
As adjusted 7,528.3 4,206.7 833 803
Share of
joint Earnings per
venture Profit share
Operating operating after
profit profit Taxation taxation Basic Diluted+
£m £m £m £m pence pence
Year ended 31 March
2001
Excluding
effects of
UITF 28
and FRS 19 372.5 75.8 (10.2) 75.3 14.5 14.5
Effects of 1.3 0.7 (0.8) 1.2 0.2 0.2
UITF 28
Effects of (15.3) (15.3) (2.9) (2.9)
FRS 19
As stated 373.8 76.5 (26.3) 61.2 11.8 11.8
Add back FRS
19
capital 9.2 9.2 1.8 1.5
allowances
As adjusted 373.8 76.5 (17.1) 70.4 13.6 13.3
Net asset value*
per share
Investment Shareholders' Fully
properties funds Basic diluted
£m £m pence pence
Year ended
31 March
2001
Excluding
effects of
UITF 28
and FRS 19 7,150.4 4,005.0 802 774
Effects of (4.5) 1.2
UITF 28
Effects of (91.7) (18) (15)
FRS 19
As stated 7,145.9 3,914.5 784 759
Add back FRS
19
capital 89.5 18 15
allowances
As adjusted 7,145.9 4,004.0 802 774
* The Net Asset Value per share includes the external
valuation surplus on development and trading properties.
+ The effect of accounting for the conversion of
convertible bonds has been excluded as it is
anti-dilutive.
2. Other income
Other income in the year ended 31 March 2001 included £15.3 million capital
profit, net of costs, received from Standard Bank of South Africa when
Standard Bank bought out the Group's rights to acquire a 29.7% stake in
Liberty International PLC.
3. Profit on the disposal of fixed assets
2002 2001
£m £m
British Land Group 39.5 28.4
Share of joint ventures (2.5) 3.7
37.0 32.1
The profit for the year includes £25.6m arising on the disposal of shares
held in Haslemere N.V. The profit for the year ended 31 March 2001 included
£14.6 million arising on the disposal of Selfridges shares.
4. Net interest payable
2002 2001
£m £m
British Land Group
Payable on: bank loans and overdrafts 41.4 52.9
other loans 240.8 222.4
282.2 275.3
Deduct: development cost element (5.9) (4.0)
276.3 271.3
Receivable on: deposits and securities (8.4) (5.7)
loans to joint ventures (16.1) (16.0)
Total British Land Group 251.8 249.6
Share of joint ventures
Interest payable on 16.1 16.0
shareholder loans
Other interest payable 50.0 45.7
(net)
Total share of joint 66.1 61.7
ventures (note 9)
Net interest payable 317.9 311.3
Exceptional item (see 83.6
below)
On 16 May 2002 the Company gave notice to redeem the 6.5% Convertible Bonds
2007. The bonds will be redeemed and cancelled on 24 June 2002. The company
accelerated the amortisation of related issue costs to reflect this early
redemption, resulting in an additional charge of £5.0m, together with
associated transaction costs.
The repurchases of the £150m 12.5% Bonds 2016 and the £150m 8.875% Bonds
2023 were completed on 1 May 2001. Inclusive of costs, the pre-tax
exceptional charge for the year ended 31 March 2001 was £83.6m (post tax
charge: £74.6m).
5. Taxation
2002 2001
(restated)
£m £m
Current tax
UK corporation tax (30%) 5.6 20.4
Foreign tax 1.8 1.4
7.4 21.8
Adjustments in respect of prior years (13.5) (7.3)
Total current tax (6.1) 14.5
Deferred tax
Origination and reversal of timing differences 22.0 6.5
Prior year items (10.3)
Total deferred tax 11.7 6.5
5.6 21.0
Attributable to joint ventures 6.3 5.3
Total taxation - effective tax rate - 6.9% (2001 - 11.9 26.3
30%)
Tax reconciliation
Profit on ordinary activities 171.3 87.5
Less - Share of profit of joint ventures (20.0) (18.5)
Group profit on ordinary activities 151.3 69.0
Tax on profit on ordinary activities at UK 45.4 20.7
corporation tax rate of 30%
Effects of:
Capital allowances (6.3) (2.8)
Tax losses and other timing differences (31.9) 7.9
Expenses not deductible for tax purposes 0.2 (4.0)
Adjustments in respect of prior years (13.5) (7.3)
Group current tax charge (6.1) 14.5
Factors affecting future tax rate
The level of capital allowances and losses reduce the current tax charge
below 30%. Capital allowances are claimed on eligible investment assets and
calculated on the reducing balance. The availability of further capital
allowances will depend, inter alia, on the timing of the Group's
development programme. In addition where assets are sold out of the British
Land Group the gain arising will initially be set off against capital
losses and so such sales may reduce the tax rate.
Contingent tax
Unprovided further taxation which might become payable if the Group's
investments and properties were sold at open market value is estimated at
£510m (2001 - £550m). Tax losses, which have not been recognised in the
Balance Sheet, have reduced the contingent tax by approximately £100m.
This unprovided taxation is stated after taking account of the FRS 19
capital allowance deferred tax provision of £83m (2001 - £77m) recorded in
the Balance Sheet.
6. Ordinary dividends
2002 2001 2002 2001
pence pence £m £m
Interim 3.80 3.60 19.7 18.7
Proposed final 8.60 7.90 44.6 40.9
Total for year 12.40 11.50 64.3 59.6
The final dividend of 8.6 pence will be paid on 21 August 2002 to
shareholders on the register at the close of business on 26 July 2002. The
interim dividend was paid on 20 February 2002.
7. Earnings per share
Basic and diluted earnings per share are calculated on the profit on
ordinary activities after taxation and on the weighted average number of
shares in issue during the year as shown below:
2002 2001
Weighted Weighted Profit
average Profit average after
number after number taxation
of shares taxation of shares (restated)
m £m m £m
Earnings per share
Basic 518.3 159.4 518.1 61.2
Diluted 596.4 180.4 596.2 82.2
Weighted Weighted Profit
average Profit average after
number after number taxation
of shares taxation of shares (restated)
m £m m £m
Adjusted earnings per
share
Basic 518.3 166.6 518.1 70.4
Diluted 596.4 187.6 596.2 91.4
Adjusted earnings per share are calculated by excluding the post tax profit
adjustment of £7.2m (2001 - £9.2m) which is the effect of the deferred tax
charge relating to capital allowances, as described in note 1.
8. Investment, development and trading properties
Leasehold
Freehold Long Short Total
£m £m £m £m
Investment and
development
properties
Valuation and cost 1 6,965.9 184.5 7,150.4
April 2001
Adjustment (4.5) (4.5)
for
UITF 28
Restated valuation 6,961.4 184.5 7,145.9
and cost 1 April 2001
Additions 387.9 98.6 486.5
Disposals (161.4) (161.4)
Exchange (1.6) (1.6)
fluctuations
Revaluation 53.2 5.7 58.9
Valuation and cost 31 7,239.5 288.8 7,528.3
March 2002
Trading
properties
At lower of cost and
net realisable value
31 March 37.2 8.0 1.8 47.0
2002
External valuation surplus on development 108.6
and trading properties
Total investment, development and 7,683.9
trading properties
Investment, development and trading properties were valued by the following
external valuers on the basis of open market value in accordance with the
Appraisal and Valuation Manual published by The Royal Institution of
Chartered Surveyors:
£m
United Atis Real 7,626.1
Kingdom: Weatheralls
Republic Jones Lang LaSalle 64.5
of
Ireland:
Netherlands: CB Richard Ellis 1.0
B.V.
7,691.6
Adjustment for UITF 28 - lease (7.7)
incentives
Total investment, development and 7,683.9
trading properties
£m
Total external valuation surplus on
development and trading properties
British 108.6
Land
Group
Share of 5.5
joint
ventures
114.1
2002 2001
(restated)
£m £m
Total properties including share
of joint ventures
Investment and 7,528.3 7,145.9
development
properties
Trading 47.0 53.3
properties
Share of joint 1,601.3 1,506.8
venture properties
External valuation surplus on 114.1 149.4
development and trading properties
9,290.7 8,855.4
9 Joint Ventures
The BL BL Rank BL BLT
Public
House Universal Properties Fraser Properties
Company PLC Ltd Ltd Ltd
Ltd
All joint
ventures are
held equally
on a 50:50
basis
Partners Scottish GUS plc The Rank House of Tesco plc
&
Newcastle Group plc Fraser
plc plc
Date April February August 1997 July November
established 1995 1997 1999 1996
Accounting 31 March 31 March 31 December 27 20 December
year end January
Summarised £m £m £m £m £m
profit and
loss
accounts
Gross rental 11.9 62.4 10.9 14.6 16.2
income
Net rental 11.7 54.2 10.9 14.4 15.9
income
Other (0.5) (0.9) (0.4) (0.3)
expenditure
Operating 11.2 53.3 10.5 14.1 15.9
profit
Disposal of 5.8 (2.5) (7.8)
fixed assets
Net interest (5.7) (23.8) (7.3) (9.7) (9.9)
- external
- shareholders (20.2) (3.1) (2.9) (1.4)
Net interest (5.7) (44.0) (10.4) (12.6) (11.3)
(payable)
receivable
Profit 11.3 6.8 (7.7) 1.5 4.6
(loss)
before tax
Tax (1.0) (2.1) (0.5) (1.2)
Profit 10.3 4.7 (7.7) 1.0 3.4
(loss) after
tax
Summarised statements of recognised gains and losses
Profit 10.3 4.7 (7.7) 1.0 3.4
(loss)
retained for
the year
Unrealised 5.5 (15.7) (2.3) 8.4 24.8
surplus
(deficit) on
revaluation
Prior year (7.2) (3.9) (0.2) (4.5) (0.4)
adjustment
Total return 8.6 (14.9) (10.2) 4.9 27.8
Summarised balance sheets
Investment 156.2 812.6 111.6 209.6 238.3
properties
at valuation
Development
and trading
properties
at cost
Total 156.2 812.6 111.6 209.6 238.3
properties
Current 13.5 36.4 20.6 2.5 13.7
assets
Gross assets 169.7 849.0 132.2 212.1 252.0
Current (5.2) (57.6) (8.3) (4.0) (10.8)
liabilities
Bank debt (3.0)
falling due
within one
year
Bank debt (85.0) (45.0) (92.3) (139.0) (130.9)
falling due
after one
year
Debentures (295.1)
Deferred tax (7.5) (4.9) (0.2) (5.0) (0.5)
Gross (100.7) (402.6) (100.8) (148.0) (142.2)
liabilities
Net external 69.0 446.4 31.4 64.1 109.8
assets
Represented
by:
Shareholder 227.0 39.6 53.1 18.3
loans
Ordinary 69.0 219.4 (8.2) 11.0 91.5
shareholders'
funds /
Partners'
capital
Total 69.0 446.4 31.4 64.1 109.8
investment
Capital 6.6
commitments
Contingent 4.6 41.0 2.2 15.0
liabilities
9 Joint ventures (continued)
Tesco BL London Cherrywood
BL West and Properties BL +
Henley Ltd
Holdings companies Holdings (Rep of Davidson
Ltd Ltd Ireland) Group
All joint ventures are
held equally on a 50:50
basis
Partners Tesco West LB, Security Dunloe Manny
plc WestImmo, Capital Ewart plc Davidson,
and European his
Provinzial Realty family &
trusts
Date November September December April 1999 September
established 1999 2000 2000 2001
Accounting 20 31 31 31 31
year end December December March December December
Summarised £m £m £m £m £m
profit and
loss
accounts
Gross rental 21.6 23.9 11.5 0.8 9.5
income
Net rental 21.1 23.0 7.6 0.7 7.9
income
Other (0.4) (0.4) (0.4) (0.1) (0.8)
expenditure
Operating 20.7 22.6 7.2 0.6 7.1
profit
Disposal of (0.4) (0.1)
fixed assets
Net interest (14.6) (18.5) (7.6) 0.1 (1.4)
- external
- shareholders (4.2)
Net interest (14.6) (18.5) (7.6) 0.1 (5.6)
(payable)
receivable
Profit 6.1 4.1 (0.8) 0.7 1.4
(loss)
before tax
Tax (1.9) (1.3) (0.2) (0.6)
Profit 4.2 2.8 (0.8) 0.5 0.8
(loss) after
tax
Summarised statements of recognised gains and losses
Profit 4.2 2.8 (0.8) 0.5 0.8
(loss)
retained for
the year
Unrealised 15.6 (1.9) 11.5 5.9
surplus
(deficit) on
revaluation
Prior year (0.2) (1.0) 0.3
adjustment
Total return 19.6 (0.1) 10.7 0.8 6.7
Summarised
balance
sheets
Investment 345.1 365.2 174.8 415.8
properties
at valuation
Development 0.6 78.4 41.4
and trading
properties
at cost
Total 345.1 365.2 175.4 78.4 457.2
properties
Current 5.4 15.3 10.9 5.3 28.0
assets
Gross assets 350.5 380.5 186.3 83.7 485.2
Current (7.2) (11.5) (8.3) (15.7) (60.6)
liabilities*
Bank debt (5.6)
falling due
within one
year
Bank debt (209.4) (263.9) (113.4) (131.1)
falling due
after one
year
Debentures (132.3)
Deferred tax (0.4) (1.2) (0.1) (4.5)
Gross (217.0) (276.6) (121.7) (15.8) (334.1)
liabilities
Net external 133.5 103.9 64.6 67.9 151.1
assets
Represented
by:
Shareholder 89.6 26.4 36.9 10.0
loans
Ordinary 43.9 103.9 38.2 31.0 141.1
shareholders'
funds /
Partners'
capital
Total 133.5 103.9 64.6 67.9 151.1
investment
Capital 0.7 20.8
commitments
Contingent 7.0 2.1 17.5 43.1
liabilities
+ BL Davidson results reflect the refinancing which took place in January
2002.
9 Joint ventures (continued)
Other British 2001
BVP Joint Land Comparative
Group Ventures Share (restated)
All joint
ventures are held
equally on a
50:50 basis
Partners ProLogis
Developments Ltd
Date established June 1999
Accounting year 31 March
end
Summarised profit £m £m £m £m
and loss accounts
Gross rental 4.3 9.4 98.5 85.5
income
Net rental income 4.3 8.9 90.3 79.5
Other expenditure (0.2) 1.0 (1.7) (3.0)
Operating profit 4.1 9.9 88.6 76.5
Disposal of fixed (2.5) 3.7
assets
Net interest - (2.3) 0.7 (50.0) (45.7)
external
- shareholders (0.4) (16.1) (16.0)
Net interest (2.3) 0.3 (66.1) (61.7)
(payable)
receivable
Profit (loss) 1.8 10.2 20.0 18.5
before tax
Tax (0.7) (3.1) (6.3) (5.3)
Profit (loss) 1.1 7.1 13.7 13.2
after tax
Summarised statements of recognised gains and losses
Profit (loss) 1.1 7.1 13.7 13.2
retained for the
year
Unrealised 23.1 8.5 41.7 8.0
surplus (deficit)
on revaluation
Prior year 0.3 (8.4)
adjustment
Total return 24.5 15.6 47.0 21.2
Summarised balance sheets
Investment 79.4 111.8 1,510.2 1,433.1
properties at
valuation
Development and 12.4 49.4 91.1 73.7
trading
properties at
cost
Total properties 91.8 161.2 1,601.3 1,506.8
Current assets 5.7 19.3 88.3 73.8
Gross assets 97.5 180.5 1,689.6 1,580.6
Current (7.3) (11.7) (104.1) (84.3)
liabilities *
Bank debt falling (1.2) (4.9) (2.5)
due within one
year
Bank debt falling (44.5) (627.3) (632.9)
due after one
year
Debentures (213.7) (147.4)
Deferred tax (0.4) (0.2) (12.4) (9.3)
Gross liabilities (53.4) (11.9) (962.4) (876.4)
Net external 44.1 168.6 727.2 704.2
assets
Represented by:
Shareholder loans 11.9 75.0 293.9 321.9
Ordinary 32.2 93.6 433.3 382.3
shareholders'
funds / Partners'
capital
Total investment 44.1 168.6 727.2 704.2
Capital 3.7 80.5 56.2 50.4
commitments
Contingent 12.0 3.0 73.8 40.0
liabilities
* British Land's share of negative goodwill is included in Current
Liabilities, and amounts in total to £23.3m.
9 Joint ventures (continued)
The movement for the year
Equity Loans Total
£m £m £m
At 1 April 2001 390.8 321.9 712.7
Prior year adjustment (8.5) (8.5)
Restated at 1 April 2001 382.3 321.9 704.2
Additions 58.0 108.5 166.5
Purchase of remaining (30.3) (30.3)
partnership interest
Repayment of loans (136.5) (136.5)
Share of profit attributable 13.7 13.7
to joint ventures
Dividends received from joint (25.2) (25.2)
ventures
Disposals (14.0) (14.0)
Revaluation 48.8 48.8
At 31 March 2002 433.3 293.9 727.2
The Group's share of joint venture external net debt is £791.6m (2001 -
£735.5 m). The amount guaranteed by British Land is £33.0m (2001 - £33.0m).
The Group's share of the market value of the debt and derivatives as at 31
March 2002 was £16.8m more than the Group's share of the book value (2001 -
£18.4m).
The Group's share of joint venture properties as at 31 March 2002 was
£1,601.3m (2001 - £1,506.8m).
All companies are property investment companies registered in England and
Wales unless otherwise stated.
10 Other investments
£m
At 1 April 2001 73.7
Additions 8.5
Disposals (69.7)
Revaluations (0.1)
At 31 March 2002 12.4
During the year the group disposed of its entire holding of 2,390,141
ordinary shares in Haslemere N.V. for £93.1m. For the year ended 31 March
2002 dividends and interest from other investments amounted to £5.1m (2001
- £7.9m).
11 Debtors
2002 2001
(restated)
£m £m
Trade debtors 25.5 97.1
Amounts owed by joint 8.6 20.0
ventures
Prepayments and accrued 11.5 31.2
income
45.6 148.3
12. Other creditors due within one year
2002 2001
(restated)
£m £m
Debentures and loans * 45.4 35.8
Overdrafts * 4.3 6.0
Bank loans * 74.2 248.0
Trade creditors 45.7 57.1
Corporation tax 33.4 36.7
Other taxation and social security 12.0 12.7
Accruals and deferred income 186.9 268.8
Proposed final dividend 44.6 40.9
446.5 706.0
13. Creditors due after one year
2002 2001
£m £m
Debentures and loans * 3,451.8 2,417.1
Bank loans * 161.9 640.2
3,613.7 3,057.3
14. Provisions for liabilities and charges
2002 2001
(restated)
£m £m
At 1 April 2001 77.9 71.4
Adjustments in respect of prior years (10.3)
Charged to profit and loss account 22.0 6.5
At 31 March 2002 89.6 77.9
Deferred tax is provided as follows:
Capital allowances 86.4 80.2
Other timing differences 3.2 (2.3)
89.6 77.9
The deferred tax liability relates primarily to capital allowances claimed
on plant and machinery within investment properties. When a property is
sold and the agreed disposal value for this plant and machinery is less
than original cost, there is a release of the surplus part of the
provision. The entire amount of the capital allowance provision would be
expected to be released on sale.
* See Maturity Analysis of Net Debt - note 15.
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