Half Yearly Report

RNS Number : 5151D

Cardiff Property PLC

30 April 2013

 



THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY

AND ITS SUBSIDIARIES

FOR RELEASE                                    7.00 AM                                   30 April 2013

THE CARDIFF PROPERTY PLC

The group, including Campmoss, specialises in property investment and development in the Thames Valley. The total portfolio under management, valued in excess of £33m, is primarily located to the west of London, close to Heathrow Airport and in Surrey and Berkshire.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 31 MARCH 2013

Highlights:

Six months 31 March 2013 (Unaudited)

Six months 31 March 2012 (Unaudited)

Year 30 September 2012 (Audited)

Revenue	£'000	254	279	523
Net assets per share	pence	1,243	1,188	1,205
Profit before tax	£'000	655	350	435
Earnings per share	pence	47.0	22.6	26.5
Interim/total dividend    per share	pence	3.3	3.3	12.3
Gearing	%	Nil	Nil	Nil

Richard Wollenberg, Chairman, commented:

"The strategy of concentrating on increasing shareholder value without taking undue debt driven risks in a difficult market is validated. This provides the group with a strong asset base and financial platform to benefit from any future recovery."

For further information:

The Cardiff Property plc	Richard Wollenberg		01784 437444
Westhouse Securities	Richard Johnson	020 7601 6100

THE CARDIFF PROPERTY PLC

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 31 MARCH 2013

INTERIM MANAGEMENT REPORT

The Thames Valley commercial property market is primarily dominated by hi-tech and service oriented companies. There has been a marginal increase in letting activity in the six months to 31 March 2013, although larger corporates remain reluctant to commit to long term property decisions.

Enquiries and take up from small businesses have similarly improved, but many are constrained in their expansionary plans by the high level of business rates which is now becoming a greater proportion of property costs. Commercial leases are typically granted for a maximum term of 10 years, although often with a tenant option to break after 5 years and an initial rent free period.

Financial markets have continued their recovery and overall confidence in the prime commercial property market has improved. The strength of the investment and letting market in central and west London offers more positive indicators for commercial property located in the Thames Valley.

Residential values in Berkshire and Surrey generally remain unchanged. The high level of letting enquiries received is encouraging.

Dividend

Your directors have declared an unchanged interim dividend of 3.3p (2012: 3.3p) which will be paid on 5 July 2013 to shareholders on the register on 7 June 2013.

Financial

For the half year ended 31 March 2013 profit before tax amounted to £0.66m (March 2012: £0.35m; September 2012: £0.44m) which included an after tax profit from Campmoss Property Company Limited, our 47.62% jointly controlled entity, of £0.50m (March 2012: £0.14m; September 2012: £0.03m). The figures for Campmoss included profit on the sale of development properties as referred to below.

Revenue which represents gross rental income totalled £0.25m (March 2012: £0.28m; September 2012: £0.52m).

The group's share of revenue of Campmoss amounted to £1.30m (March 2012: £0.53m; September 2012: £1.09m) representing gross rental income of £0.88m (March 2012: £0.53m; September 2012: £1.09m) and property sales of £0.42m (March 2012: nil; September 2012: nil). The revenue figures for Campmoss are not included in group revenue.

The profit after tax attributable to shareholders for the 6 month period to 31 March 2013 amounted to £0.62m (March 2012: £0.30m; September 2012: £0.35m) and earnings per share was 47.0p (March 2012: 22.6p; September 2012: 26.5p).

Net assets of the group as at 31 March 2013 were £16.44m (March 2012: £15.90m; September 2012: £15.94m). The company's share of the net assets of Campmoss amounted to £6.71m (March 2012: £6.33m; September 2012: £6.22m).

Interim Management Report (continued)

Net assets were equivalent to 1,243p per share (March 2012: 1,188p; September 2012: 1,205p). At the half year the company had nil gearing (March 2012: nil; September 2012: nil) whilst that for Campmoss was 70% (March 2012: 65%; September 2012: 104%).

The directors are of the opinion that, in the current market, any change in the value of the group's property portfolio as at 31 March 2013 would not be material.

The company did not purchase any of its own shares during the period (March 2012: nil; September 2012: 16,720) and, other than mentioned above, there have been no material events or material changes in assets, liabilities or related party relationships since 30 September 2012.

Investment and development portfolio

The group's portfolio, including Campmoss, comprises a range of freehold offices, retail and industrial units and a care home, located in the Thames Valley along the M4, A3 and M25 corridor to the west of Heathrow Airport.

At The White House, Egham, works to the upper floor offices are now close to completion with part already let. The five ground floor retail units are all occupied. Construction of the town centre scheme, which includes a hotel, apartments and further retail space has commenced and will, when completed, be a considerable boost to the Egham town centre commercial presence.

At The Windsor Business Centre and The Maidenhead Business Centre, which together comprise ten business units, all units are currently let on a mix of short and medium term leases. Two units are expected to become available before the year end.

At Heritage Court, Egham, three retail units are let on medium term leases. The lease on the fourth unit expires in June 2013 and is currently being marketed by local agents.

The company retains a freehold, two bedroom residential property in Egham which is let on an Assured Shorthold Tenancy. The property is located adjacent to our existing commercial investment at The White House.

Campmoss Property Company Limited

Campmoss continues to refurbish and upgrade its freehold commercial property portfolio as well as progressing alternative planning submissions on existing properties.

Worplesdon View, a 78 bed care home at Tangley Place, Worplesdon, is let to Barchester Healthcare Homes on a long term lease. Planning submissions for associated healthcare services on the adjoining land are currently being prepared.

At The Priory, Burnham, the business centre is fully occupied. Following a lease expiry on the adjacent three floors of office space, the ground and first floors have now been let whilst works to refurbish the upper floor are currently in progress.

At Britannia Wharf, Woking, the ground and two upper floors are occupied on short and medium term leases. Refurbishment of the lower ground floor office area will commence shortly. As part of the company's long term investment strategy, plans for a residential scheme are being progressed.

Interim Management Report (continued)

At Market Street, Bracknell, all twelve retail units are let on short to medium term leases. At Gowring House, Market Street, Bracknell, two of the retail units are occupied with the remaining unit currently under offer. A change of use was recently granted for a specific user. The first and second floors are now let to a gym operator and junior fitness centre, whilst planning proposals to change the remaining three upper floors from office to residential use have been submitted.

At Clivemont House and Highway House, Maidenhead, both buildings have been demolished. Whilst the office letting market remains quiet, alternative uses for the individual sites, which would improve value, are being reviewed.

At Kiln Lane, Bracknell, which comprises fourteen business units and an adjacent office suite, four leases are due to expire shortly and discussions are progressing with existing and prospective tenants.

At Datchet Meadows, a development of 37 residential units located between Datchet and Slough, 22 apartments are currently let on annual Assured Shorthold Tenancy Agreements. 4 sales were completed during the first half of the financial year, bringing the total sold to 14. The remaining apartment is under offer for sale. All let units are available for sale or re-let at the expiry of existing tenancy agreements.

Quoted Investments

The company retains small holdings in ImmuPharma and Galileo Resources. The company was one of the original investors in both companies and I remain a director of Galileo Resources.

Registrar & Transfer Office

The company's registrar is Neville Registrars Ltd. They can be contacted at Neville House, 18 Laurel Lane, Halesowen B63 3DA, telephone number 0121 585 1131 and email: [e-mail].

Outlook

The group, including Campmoss, has achieved a number of lettings, lease surrenders and sales during the first half of the year and, as a consequence, Campmoss has reduced its indebtedness and the group has a strong financial platform to progress as the market recovers.

Some analysts believe that the commercial property market is poised for a turnaround and recovery in rental values. Although a return of confidence is welcome, I and my fellow directors are of the view that any sustained recovery is unlikely in the short term. The group has a number of interesting projects to plan and complete and I look forward to reporting further at the end of the financial year.

J Richard Wollenberg

Chairman

29 April 2013

Condensed Consolidated Interim Income Statement

FOR THE SIX MONTHS ENDED 31 MARCH 2013

	Six months 31 March 2013 (Unaudited) £'000	Six months 31 March 2012 (Unaudited) £'000	Year 30 September 2012 (Audited) £'000
Revenue	254	279	523
Cost of sales	(57)	(37)	(82)
	______	______	______
Gross profit	197	242	441
Administrative expenses	(223)	(213)	(419)
Other operating income	127	127	264
	______	______	______
Operating profit before gains/(losses) on investment properties and other investments	101	156	286
Profit on sale of other investments	2	-	27
Deficit on revaluation of investment properties	-	-	(22)
	______	______	______
Operating profit	103	156	291
Financial income	54	54	111
Share of results of jointly controlled entity	498	140	33
	______	______	______
Profit before taxation	655	350	435
Taxation	(34)	(47)	(85)
	______	______	______
Profit for the period attributable to equity holders	621	303	350
	______	______	______
Earnings per share on profit for the period  -  pence
Basic and diluted	47.0	22.6	26.5
	______	______	______
Dividends
Final 2012 paid 9.0p (2011: 9.0p)	119	121	121
Interim 2012 paid 3.3p (2011: 3.3p)	-	-	44
	______	______	______
	119	121	165
	______	______	______
Final 2012 proposed 9.0p	-	-	119
Interim 2013 proposed 3.3p (2012: 3.3p)	44	44	-
	______	______	______
	44	44	119
	______	______	______

The above results relate entirely to continuing activities. There were no acquisitions or disposals of businesses during these periods.

Condensed Consolidated Interim Balance Sheet

AT 31 MARCH 2013

	31 March 2013 (Unaudited) £'000	31 March 2012 (Unaudited) £'000	30 September 2012 (Audited) £'000
Non-current assets
Freehold investment properties	4,020	4,002	3,980
Investment in jointly controlled entity	6,718	6,327	6,220
Property, plant and equipment	185	185	184
Other financial assets	440	321	458
Deferred tax asset	4	4	4
	______	______	______
Total non-current assets	11,367	10,839	10,846
	______	______	______
Current assets
Stock and work in progress	668	668	668
Trade and other receivables	1,419	2,123	2,189
Cash and cash equivalents	3,586	2,874	2,808
	______	______	______
Total current assets	5,673	5,665	5,665
	______	______	______
Total assets	17,040	16,504	16,511
	______	______	______
Current liabilities
Corporation tax	(132)	(156)	(98)
Trade and other payables	(401)	(378)	(409)
	______	______	______
Total current liabilities	(533)	(534)	(507)
	______	______	______
Non-current liabilities
Deferred tax liability	(65)	(66)	(64)
	______	______	______
Total non-current liabilities	(65)	(66)	(64)
	______	______	______
Total liabilities	(598)	(600)	(571)
	______	______	______
Net assets	16,442	15,904	15,940
	______	______	______
Equity
Called up share capital	264	268	264
Share premium account	5,076	5,076	5,076
Other reserves	2,625	2,486	2,640
Investment property revaluation reserve	(1,103)	(834)		(1,158)
Retained earnings	9,580	8,908	9,118
	______	______	______
Shareholders' funds attributable to equity holders	16,442	15,904	15,940
	______	______	______
Net assets per share	1,243p	1,188p	1,205p
	______	______	______

Condensed Consolidated Interim Statement of Cash Flows

FOR THE SIX MONTHS ENDED 31 MARCH 2013

	Six months 31 March 2013 (Unaudited) £'000	Six months 31 March 2012 (Unaudited) £'000	Year 30 September 2012 (Audited) £'000
Cash flows from operating activities
Profit for the period	621	303	350
Adjustments for:
Depreciation	1	1	2
Financial income	(54)	(54)	(111)
Share of profit of jointly controlled entity	(498)	(140)	(33)
Profit on sale of other investments	(2)	-	(27)
Surplus on revaluation of investment properties	-	-	22
Taxation	34	47	85
	______	______	______
Cash flows from operations before changes in working capital	102	157	288
Decrease in trade and other receivables	770	77	11
Decrease in trade and other payables	(8)	(46)	(15)
	______	______	______
Cash generated from operations	864	188	284
Tax paid	-	-	(98)
	______	______	______
Net cash flows from operating activities	864	188	186
	______	______	______
Cash flows from investing activities
Interest received	54	54	111
Acquisition of investments, and property, plant and equipment	(41)	-	-
Proceeds on disposal of investments and property, plant and equipment	20	-	40
	______	______	______
Net cash flows from investing activities	33	54	151
	______	______	______
Cash flows from financing activities
Purchase of own shares	-	-	(117)
Dividends paid	(119)	(121)	(165)
	______	______	______
Net cash flows from financing activities	(119)	(121)	(282)
	______	______	______
Net increase in cash and cash equivalents	778	121	55
Cash and cash equivalents at beginning of period	2,808	2,753	2,753
	______	______	______
Cash and cash equivalents at end of period	3,586	2,874	2,808
	______	______	______

Other Primary Statements

FOR THE SIX MONTHS ENDED 31 MARCH 2013

Condensed Consolidated Interim Statement of Comprehensive Income and Expense

	Six months 31 March 2013 (Unaudited) £'000	Six months 31 March 2012 (Unaudited) £'000	Year 30 September 2012 (Audited) £'000
Profit for the financial period	621	303	350
Other items recognised directly in equity
Net change in fair value of available for sale assets	-	-	150
	______	______	______
Total comprehensive income and expense for the period attributable to equity holders of the parent company	621	303	500
	______	______	______

Other Primary Statements

FOR THE SIX MONTHS ENDED 31 MARCH 2013 (continued)

Condensed Consolidated Interim Statement of Changes in Equity

	Share capital     £'000	Share premium account £'000	Other reserves £'000	Investment property revaluation reserve     £'000	Retained earnings £'000	Total equity £'000
At 1 October 2011	268	5,076	2,486	(834)	8,726	15,722
Profit for the period	-	-	-	-	303	303
Transactions with equity holders
Dividends	-	-	-	-	(121)	(121)
	______	______	______	______	______	______
Total transactions with equity holders	-	-	-	-	(121)	(121)
	______	______	______	______	______	______
At 31 March 2012	268	5,076	2,486	(834)	8,908	15,904
Profit for the period	-	-	-	-	47	47
Other comprehensive income	-	-	150	-	-	150
Transactions with equity holders
Purchase of own shares	(4)	-	4	-	(117)	(117)
Dividends	-	-	-	-	(44)	(44)
	______	______	______	______	______	______
Total transactions with equity holders	(4)	-	4	-	(161)	(161)
	______	______	______	______	______	______
Transfer on revaluation of investment properties	-	-	-	(324)	324	-
	______	______	______	______	______	______
At 30 September 2012	264	5,076	2,640	(1,158)	9,118	15,940
Profit for the period	-	-	-	-	621	621
Transactions with equity holders
Dividends	-	-	-	-	(119)	(119)
	______	______	______	______	______	______
Total transactions with equity holders	-	-	-	-	(119)	(119)
	______	______	______	______	______	______
Transfer on sale of other investments	-	-	(15)	-	15	-
Transfer on revaluation of investment properties	-	-	-	55	(55)	-
	______	______	______	______	______	______
At 31 March 2013	264	5,076	2,625	(1,103)	9,580	16,442
	______	______	______	______	______	______

Statement of Responsibility

FOR THE SIX MONTHS ENDED 31 MARCH 2013

The directors are responsible for preparing the condensed consolidated interim financial statements for the six months ended 31 March 2013 and they acknowledge, to the best of their knowledge and belief, that:

·      the condensed consolidated set of interim financial statements for the six months ended 31 March 2013 has been prepared in accordance with IAS 34 - Interim Financial Reporting, as adopted by the EU;

·      the interim management report includes a fair review of the information required by:

a)     DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of interim financial statements and a description of the principal risks and uncertainties for the remaining six months of the year; and

b)    DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the group during that period; and any changes in the related party transactions described in the last annual report that could do so.

J Richard Wollenberg, Chairman

David A Whitaker, Finance director

Nigel D Jamieson, Independent non-executive director

29 April 2013

Notes to the Condensed Consolidated Interim Financial Statements

FOR THE SIX MONTHS ENDED 31 MARCH 2013

1. Basis of preparation

This condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

The annual financial statements of the group are prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU. As required by the Disclosure and Transparency Rules of the Financial Services Authority, the condensed set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the group's published consolidated financial statements for the year ended 30 September 2012.

The comparative figures for the financial year ended 30 September 2012 are not the group's statutory accounts for that financial year. Those accounts have been reported on by the group's auditor and delivered to the registrar of companies. The report of the auditor was: unqualified; did not give any reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report; and did not contain a statement under sections 498 (2) or (3) of the Companies Act 2006.

Accounting policies

The condensed consolidated interim financial statements have been prepared applying the accounting policies that were applied in the preparation of the group's published financial statements for the year ended 30 September 2012. Whilst numerous other IFRSs and Interpretations have been endorsed in the period to 31 March 2013 and have been adopted by the group, none of them has had a material impact on these interim financial statements.

Use of estimates and judgement

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. The key areas in which estimates have been used and the assumptions applied are in valuing investment properties and properties in the jointly controlled entity, in valuing available for sale assets, in classifying properties and in the calculating of provisions.

An external, independent valuer, having an appropriate recognised professional qualification and recent experience in the location and category of property being valued, values the company's property portfolio at the end of each financial year. The directors of the jointly controlled entity value its portfolio each year; such valuation takes into account yields on similar properties in the area, vacant space and covenant strength. The directors of the group and jointly controlled entity review the valuations for the interim financial statements.

A provision is recognised in the balance sheet when the group has a present legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefit will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

Going concern

The group has sufficient financial resources to enable it to continue in operational existence for the foreseeable future, to complete the current maintenance and development program and meet its liabilities as they fall due. Accordingly, the directors consider it appropriate to continue to adopt the going concern basis in preparing these interim financial statements.

Notes to the Condensed Consolidated Interim Financial Statements

FOR THE SIX MONTHS ENDED 31 MARCH 2013 (continued)

2. Segmental analysis

The group manages its operations in two segments, being property and other investments and property development. The results of these segments are regularly reviewed by the board as a basis for the allocation of resources, in conjunction with individual site investment appraisals and to assess their performance. Information regarding the revenue and profit before taxation for each reportable segment is set out below:

	Six months 31 March 2013 (Unaudited) £'000	Six months 31 March 2012 (Unaudited) £'000	Year 30 September 2012 (Audited) £'000
Revenue (wholly in the United Kingdom)
Property and other investments being gross rents receivable	254	279	523
	______	______	______
Profit before taxation
Property and other investments	477	236	199
Property development	178	114	236
	______	______	______
	655	350	435
	______	______	______

The operations of the group are not seasonal.

3. Taxation

The tax position for the six month period is estimated on the basis of the anticipated tax rates applying for the full year.

4. Dividends

The interim dividend of 3.3p per share will be paid on 5 July 2013 to shareholders on the register on 5 June 2013. Under accounting standards this dividend is not included in the condensed consolidated interim financial statements for the six months ended 31 March 2013.

5. Earnings per share

Earnings per share has been calculated using the profit after tax for the period of £621,000 (March 2012: £303,000; September 2012: £350,000) and the weighted average number of shares as follows:

	Weighted average number of shares
	31 March 2013	31 March 2012	30 September 2012
Basic and diluted	1,322,287	1,339,007	1,322,862
	_________	_________	_________

    Directors and Advisers

Directors	Auditor
J Richard Wollenberg	KPMG Audit Plc
Chairman and chief executive
David A Whitaker FCA
Finance director	Stockbrokers and financial advisers
Nigel D Jamieson BSc, FCSI	Westhouse Securities Limited
Independent non-executive director
Secretary	Bankers
David A Whitaker FCA	HSBC Bank plc
Non-executive director of wholly owned subsidiary	Solicitors
First Choice Estates plc	Morgan Cole
Derek M Joseph BCom, FCIS
Head office	Registrar and transfer office
56 Station Road	Neville Registrars Limited
Egham TW20 9LF	Neville House
Telephone: [phone]	18 Laurel Lane
Fax: [phone]	Halesowen
E-mail: [e-mail]	B63 3DA
Web: www.cardiff-property.com	Telephone: [phone]
Registered office	Registered number
3 Assembly Square	22705
Britannia Quay
Cardiff Bay CF10 4AX

Financial Calendar

2013	30 April	Interim results for 2013 announced
	5 June	Ex dividend date for interim dividend
	7  June	Record date for interim dividend
	5  July	Interim dividend to be paid
	30 September	End of accounting year
	December	Final results for 2013 announced
2014	January	Annual general meeting
	February	Final dividend to be paid

 

END

 

 

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