Interim Results
Cardiff Property PLC
11 May 2001
The Cardiff Property plc
56 Station Road, Egham, Surrey TW20 9LF
Tel: 01784 437444 Fax: 01784 439157
E-mail: webmaster@cardiff-property.com
Web: www.cardiff-property.com
FOR RELEASE 7.00 AM 11 MAY 2001
(The group, including Campmoss, specialises in property investment and
development in the Thames Valley. The portfolio is primarily located to the
west of London, close to Heathrow Airport and in Surrey and Berkshire.)
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2001
HIGHLIGHTS
Group turnover £5.0m (2000: £6.6m)*
Property sales £4.2m (2000: £5.9m)
Net assets per share 636p (2000: 531p)**
Profit before tax £1.8m (2000: £1.9m)
Earnings per share 63p (2000: 65p)
Interim dividend 1.6p per share (2000: 1.4p)
Gearing nil (2000: nil)
* Includes the group's share of Campmoss
** Properties not re-valued at half-year
Richard Wollenberg, chairman, commented:
'Property values to the west of London continue to benefit from a stable UK
economic climate. Take up of new office space remains buoyant. However, lower
equity markets will inevitably influence expansion plans for many
telecommunications and hi-tech businesses in the Thames Valley and therefore
your directors are currently taking a cautious approach in their appraisal of
new projects. The group's two office schemes in Maidenhead, expected to
complete next year, should, when let, generate substantial additional gross
income and capital values.'
For further information
The Cardiff Property plc Richard Wollenberg 01784 437444
Old Mutual Securities Ltd Will Martin 020 7002 4653
Binns & Co Public Relations Ltd Brian Coleman-Smith 020 7786 9600
Chairman's interim statement
Dear shareholder
The group has continued to make excellent progress in the six months to 31
March 2001. Profit on ordinary activities, including Campmoss Property Company
Limited, our 47.62% joint venture undertaking, totalled £1.79m against £1.86m
for the same period last year. These profits primarily resulted from the sale
of completed developments. In the case of the six month period now being
reported upon, sales included the recently built country house at Hambledon
and The Lodge at Brookwood, both located in Surrey. The sale proceeds of these
completed developments amounted to £4.19m resulting in profits of £1.41m.
Turnover totalled £4.97m (2000: £6.58m). Gross rental income rose to £0.78m
(2000: £0.69m) and earnings per share were 63p (2000: 65p).
The group's share of profits from Campmoss amounted to £0.07m (2000: £0.10m).
This lower figure reflects interest costs attributable to completion of the
development at Bracknell, now fully let, and recently acquired commercial
property in Maidenhead.
Your board has declared an increased interim dividend of 1.6p (2000: 1.4p)
which will be paid on 12 July 2001 to shareholders on the register on 15 June
2001.
The group's property portfolio is valued annually at the September year-end.
Net assets at the half-year-ending 31 March 2001 including our share of
Campmoss, totalled £17.76m (2000: £14.85m) equivalent to 636p per share (March
2000: 531p; September 2000: 575p).
Successful property sales have generated substantial cash balances which are
currently placed on short and medium term deposit awaiting the acquisition of
further properties. The group's bank borrowing facilities remain available.
Long term borrowings remain at £3.2m and are linked to base rate. Gearing was
nil (2000: nil) at the half-year.
The Thames Valley - Heathrow west of London, the M25, M4 and M3 Motorways
Property values to the west of London continue to benefit from a stable UK
economic climate. Compared with previous years, construction projects in the
Thames Valley increased over the early part of this year although it is
interesting to note that over 50% of office schemes are either pre-let or
being purpose built. Take up of new office space remains buoyant and the
prospect of even lower interest rates is encouraging further investment into
the property market.
Although these factors will help to counter any anticipated slow down in the
US and UK economies, the effect of lower equity markets will inevitably
influence expansion plans for many telecommunications and hi-tech businesses.
As shareholders will appreciate the Thames Valley has the largest
concentration of such businesses in Europe and therefore your directors are
currently taking a cautious approach in their appraisal of new projects.
As evidenced by our recent sales of residential property the demand for new
homes remains strong. Uncertainty in world equity markets will limit any
further advances in capital values but as always a difficult planning regime
continues to restrict the supply of land for new homes.
The investment and development portfolio
The investment portfolio continues to include commercial property in Windsor,
Egham, Hatton Cross and Cardiff. These properties are let on full repairing
and insuring leases and gross rental income including recent lettings now
amounts to £604,000 per annum.
Our major refurbishment scheme of six business units at the Windsor Business
Centre totalling 20,000 sq ft is now fully let, producing a gross rental
income of £212,000 per annum.
Two residential investment properties in Windsor and one in Egham are both
income producing. Planning permission for ten flats has been secured on one of
the properties in Windsor subject to a Section 106 agreement yet to be agreed.
A small residential property in Reading has been sold subsequent to the
half-year.
Campmoss Property Company Limited
Campmoss retains as investments two high-grade office buildings Britannia
Wharf, Woking, and The Priory, Burnham, as well as twelve business units at
Kiln Lane, Bracknell. These properties, developed by Campmoss, produce a gross
income of £1.55m per annum.
At Maidenhead, following the grant of planning consents for a total of 40,000
sq ft net B1 office space, development work is now underway for a new 30,000
sq ft high grade office building to be known as Cannon Court. Demolition and
construction of a new 10,000 sq ft high-grade office building at York House is
expected to commence shortly.
Detailed discussions continue with the Local Planning Authority to obtain
consent for office redevelopment at Tangley Place, Worplesdon, Surrey, and
Gowring House, Bracknell, Berkshire. Gowring House remains let on short-term
leases.
Additional borrowing facilities have recently been completed which, together
with existing facilities and cash balances, will fund the current development
programme.
Quoted investments
The value of our quoted investment portfolio continues to show an increase
over cost. In January this year we received a cash payment from part of our
investment in Grantchester generating a profit of £0.08m. Monitoring of our
investments remains an important factor. Other investments offering the
prospect for capital growth will continue to be considered by your board.
Outlook
The group's development programme currently comprises two separate office
schemes in Maidenhead totalling 40,000 sq ft with the first scheme of 30,000
sq ft expected to complete early next year. Agents have been appointed to
market both office buildings which, when complete and let, should generate
substantial additional gross income and capital value.
Whilst your directors take a cautious view of the market, our strategy is to
acquire further property located in the Thames Valley. The group has
substantial funds available to make selective purchases and we will continue
to actively pursue investment and development opportunities.
I therefore look forward to reporting to you in December with the year end
figures.
J Richard Wollenberg
Chairman
10 May 2001
Consolidated profit and loss account
for the six months ended 31 March 2001
Six months Six months Year
31 March 31 March 30
September
2001 2000 2000
(unaudited) (unaudited)
(audited)
£'000 £'000 £'000
Turnover
Group and share of joint venture 4,967 6,576 8,012
undertaking
Less: share of joint venture undertaking (399) (386) (785)
______ ______ ______
Group turnover 4,568 6,190 7,227
Cost of sales (2,809) (4,092) (4,357)
______ ______ ______
Gross profit 1,759 2,098 2,870
Administrative expenses (228) (363) (512)
Other operating income 96 105 167
______ ______ ______
Operating profit
Group 1,627 1,840 2,525
Share of operating profit in joint venture 276 287 570
undertaking
______ ______ ______
Total 1,903 2,127 3,095
Profit on sale of investment (group) 75 - -
Amounts written off investments (group) (50) - (50)
______ ______ ______
Profit on ordinary activities before interest 1,928 2,127 3,045
Interest receivable and similar income
Group 169 21 174
Share of joint venture undertaking 3 1 2
Interest payable
Group (102) (109) (242)
Share of joint venture undertaking (212) (185) (420)
______ ______ ______
Profit on ordinary activities before taxation 1,786 1,855 2,559
Tax on profit on ordinary activities (38) - -
______ ______ ______
Profit on ordinary activities after taxation 1,748 1,855 2,559
being
profit for the period
Dividends (45) (35) (134)
______ ______ ______
Retained profit for the period 1,703 1,820 2,425
______ ______ ______
Earnings per share - pence
Basic 62.5 65.0 90.7
Diluted 61.6 64.3 89.6
______ ______ ______
The above results relate entirely to continuing activities. There were no
acquisitions or disposals of businesses during the period.
Consolidated balance sheet
at 31 March 2001
31 March 31 March 30
September
2001 2000 2000
(unaudited) (unaudited)
(audited)
£'000 £'000 £'000
Fixed assets:
Tangible assets:
Investment properties 7,025 6,613 7,025
Other 12 24 18
______ ______ ______
7,037 6,637 7,043
______ ______ ______
Investments:
Investment in joint venture undertaking
Share of gross assets 10,456 9,317 10,401
Share of gross liabilities (5,995) (5,256) (6,005)
______ ______ ______
4,461 4,061 4,396
Other investments 700 468 748
______ ______ ______
5,161 4,529 5,144
______ ______ ______
Total fixed assets 12,198 11,166 12,187
______ ______ ______
Current assets
Stock and work in progress 1,215 2,990 3,290
Debtors 1,620 176 1,825
Cash at bank and in hand 7,435 5,613 3,464
______ ______ ______
10,270 8,779 8,579
Creditors: amounts falling due within one year (1000) (1,759) (1,301)
______ ______ ______
Net current assets 9,270 7,020 7,278
______ ______ ______
Total assets less current liabilities 21,468 18,186 19,465
Creditors: amounts falling due after more than (3,200) (3,200) (3,200)
one year
Provisions for liabilities and charges (505) (140) (205)
______ ______ ______
Net assets 17,763 14,846 16,060
______ ______ ______
Capital and reserves
Called up share capital 559 559 559
Share premium account 4,815 4,815 4,815
Investment property revaluation reserve 4,242 3,629 4,242
Other reserves 2,075 2,075 2,075
Profit and loss account 6,072 3,768 4,369
______ ______ ______
Shareholders' funds - equity 17,763 14,846 16,060
______ ______ ______
Consolidated cash flow statement
for the six months ended 31 March 2001
Six months Six months Year
31 March 31 March 30
September
2001 2000 2000
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Cash inflow from operating activities 4,278 5,175 3,272
Returns on investment and servicing of 29 (86) (44)
finance
Taxation - (3) (5)
Capital expenditure and financial investment 73 (13) (428)
Equity dividends paid (95) (82) (123)
______ ______ ______
Cash inflow before financing 4,285 4,991 2,672
Financing - (531) (534)
______ ______ ______
Increase in cash in the six months 4,285 4,460 2,138
______ ______ ______
Reconciliation of net cash flow to movement
in net debt
Increase in cash in the six months 4,285 4,460 2,138
______ ______ ______
Movement in net debt in the six months
resulting from cash 4,285 4,460 2,138
flow
Net debt at beginning of period (50) (2,188) (2,188)
______ ______ ______
Net debt at end of period 4,235 2,272 (50)
______ ______ ______
Reconciliation of operating profit to net
cash flow from operating activities
Operating profit - group 1,627 1,840 2,525
Depreciation charges 6 6 13
Decrease in stock and work in progress 2,075 2,014 1,714
Decrease/(increase) in debtors 193 212 (1,425)
Increase in creditors and provisions 377 1,103 445
______ ______ ______
4,278 5,175 3,272
______ ______ ______
Notes to the financial statements
1. Basis of preparation
The figures for the six months ended 31 March 2001, which were approved by
the board on 10 May 2001, are prepared on the same basis of accounting as
for the year ended 30 September 2000 and are unaudited.
The figures for the year-ended 30 September 2000 are extracted from the
statutory financial statements for that year which have been filed with the
Registrar of Companies and on which the auditors gave an unqualified
report, without any statement under section 237(2) or (3) of the Companies
Act 1985.
2. Analysis of turnover, profit on ordinary activities before interest and
taxation and net operating assets
Six months Six month Year
31 March 31 March 30
September
2001 2000 2000
(unaudited) (unaudited)
(audited)
£'000 £'000 £'000
Turnover (wholly in the United Kingdom):
Gross rents receivable
Group 383 308 669
Share of joint venture undertaking 399 386 785
Sale of development properties
Group 4,185 5,882 6,558
Share of joint venture undertaking - - -
______ ______ ______
4,967 6,576 8,012
______ ______ ______
Profit on ordinary activities before
interest and taxation:
Property and other investment
Group 238 36 131
Share of joint venture undertaking 276 287 570
Property development
Group 1,414 1,804 2,344
Share of joint venture undertaking - - -
______ ______ ______
1,928 2,127 3,045
______ ______ ______
Net operating assets:
Property and other investment 9,382 11,115 9,117
Property development 8,381 3,731 6,943
______ ______ ______
17,763 14,846 16,060
______ ______ ______
3. Taxation
The tax position for the six months is estimated on the basis of the
anticipated tax rates applying for the full year.
4. Dividends
Year Year
30 September 30 September
2001 2000
£'000 £'000
Interim 1.6p per share 45 Interim 1.4p per share 39
Final - Final 3.4p per share 95
______ ______
45 134
______ ______
The interim dividend of 1.6p per share will be paid on 12 July 2001 to
shareholders on the register on 15 June 2001.
5. Earnings per share
Earnings per share have been calculated in accordance with FRS14 -
'Earnings per share', using the profit after tax for the period of £
1,748,000 (six months to 31 March 2000: £1,855,000; year to 30 September
2000: £2,559,000) and the weighted average number of shares as follows:
Weighted average number of
shares
31 March 31 March 31
September
2001 2000 2000
Basic 2,795,014 2,851,648 2,822,242
Adjustment to basic for bonus element of
shares to be
issued on exercise of options 44,427 32,499 34,772
_________ _________ _________
Diluted 2,839,441 2,884,147 2,857,014
_________ _________ _________
Financial Calendar
2001 11 May Interim results for 2000/2001 announced
13 June Ex-dividend date
15 June Record date for interim dividend
12 July Interim dividend to be paid
30 September End of accounting year
December Final results for 2000/2001 announced
2002 January Annual general meeting
February Final dividend to be paid
Directors and Advisers
Directors Auditors
J Richard Wollenberg, KPMG Audit Plc
Chairman and chief executive
David A Whitaker FCA
Nigel D Jamieson BSc, MRICS, FSI, Stockbrokers and financial
advisers
Independent non-executive director Old Mutual Securities Limited
Secretary Bankers
David A Whitaker FCA HSBC Bank plc
Non-executive director of wholly owned Solicitors
subsidiary
First Choice Estates plc Charles Russell
Derek M Joseph BCom, FCIS, MIMC, MBIM Morgan Cole
Head office Public relations
56 Station Road Binns & Co Public Relations
Limited
Egham
Surrey TW20 9LF
Telephone: 01784 437444 Registrar and transfer office
Fax: 01784 439157 Computershare Services plc
E-mail: webmaster@cardiff-property.com PO Box 82
Web: www.cardiff-property.com The Pavilions
Bridgewater Road
Bristol BS99 7NH
Registered office Telephone: 0870 702 0001
Marlborough House
Fitzalan Court
Fitzalan Road
Cardiff CF24 0TE
Registered number
22705
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