Interim Results - 6 months ended 31 March 2011

RNS Number : 5800F

Cardiff Property PLC

28 April 2011

 



THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY

AND ITS SUBSIDIARIES

FOR RELEASE                                    7.00 AM                                   28 April 2011

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 £28m, 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 2011

Highlights:

Six months 31 March 2011 (Unaudited)

Six months 31 March 2010 (Unaudited)

Year 30 September 2010 (Audited)

Revenue	£'000	268	474	793
Property sales	£'000	-	198	198
Net assets per share	pence	1,148	1,088	1,129
Profit before tax	£'000	446	722	500
Earnings per share	pence	28.5	32.0	20.9
Interim/final dividend    per share	pence	3.3	3.3	9.0
Gearing	%	Nil	Nil	Nil

Richard Wollenberg, Chairman, commented:

"It is encouraging to see some new lettings being achieved but, overall, the level of tenant enquiries remains disappointing. The group continues to manage its existing properties and the successful letting of part of our portfolio at Bracknell, together with the prospective commencement of Tangley Place, Worplesdon, does allow for an element of optimism. Commercial property investment values will remain under pressure and the property market will remain difficult. The group has a number of projects in progress and I look forward to reporting further at the end of the financial year."

For further information:

The Cardiff Property plc	Richard Wollenberg	01784 437444
Arbuthnot Securities	Richard Johnson		020 7012 2000

THE CARDIFF PROPERTY PLC

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 31 MARCH 2011

INTERIM MANAGEMENT REPORT

Commercial property values are dependant on a number of factors including: location; rental income; terms of the lease; strength of covenant; and the prospects for future rental increases. The Thames Valley is considered a prime location, but new lease terms are now typically for a maximum of 10 years with a break at year 5. The current uncertain economic outlook is not encouraging companies to expand and the oversupply of new and second hand commercial space will restrict any recovery in rental levels.

Encouragingly, a number of new office buildings in the Thames Valley have recently been let with tenant incentives marginally reduced. However, the number of tenant enquiries remains at a disappointingly low level.

The government's recent removal of business rates exemption for vacant commercial property is placing many landlords under considerable pressure. The requirement to pay business rates whilst a property is vacant has and will continue to lead to many properties either being demolished or left in a dilapidated state. The majority of new, speculative office schemes in the Thames Valley have been placed on hold.

Residential values in Surrey and Berkshire remain unchanged. Rental levels marginally improved at the end of last year.

Dividend

Your directors have declared an unchanged interim dividend of 3.3p (2010: 3.3p) which will be paid on 1 July 2011 to shareholders on the register on 3 June 2011.

Financial

For the half year ended 31 March 2011 profit before tax amounted to £0.45m (March 2010: £0.72m; September 2010: £0.50m) which included an after tax profit from Campmoss Property Company Limited, our 47.62% jointly controlled entity, of £0.23m (March 2010: loss £0.08m; September 2010: loss £0.64m).

Revenue totalled £0.27m (March 2010: £0.47m; September 2010: £0.79m). Gross rental income included in these figures amounted to £0.27m (March 2010: £0.27m; September 2010: £0.60m).

The group's share of the total gross rental income of Campmoss amounted to £0.51m (March 2010: £0.48m; September 2010: £0.97m). Under IFRS rules the Campmoss revenue figures are not included in the group revenue totals.

Profit after tax attributable to shareholders for the six month period amounted to £0.38m (March 2010: £0.50m; September 2010: £0.31m). Basic earnings per share were 28.5p (March 2010: 32.0p; September 2010: 20.9p).

Net assets of the group as at 31 March 2011 were £15.4m (March 2010: £17.1m; September 2010: £15.1m). The company's share of the net assets of Campmoss amounted to £6.0m (March 2010: £6.4m; September 2010: £5.8m). Net assets were equivalent to 1,148p per share (March 2010: 1,088p; September 2010: 1,129p). Gearing for Cardiff was nil (March 2010: nil; September 2010: nil) and for Campmoss 57% (March 2010: 60%; September 2010: 64%).

The directors are of the opinion that, in the current market, any change in value of the group's property portfolio as at 31 March 2011 would not be material.

The company did not purchase any of its own shares during the period (March 2010: none; September 2010: 236,000 shares, nominal value of £47,200 and cost of £1,778,997) and, other than mentioned above, there have been no material events or material changes in assets, liabilities or related party relationships since 30 September 2010.

Investment and development portfolio

The group's commercial property portfolio is primarily located along the M4 and M25 corridors to the west of Heathrow Airport.

At the Maidenhead Enterprise Centre, Maidenhead, which comprises six business units, three are let and one letting has been achieved since the beginning of the year. Two units remain available.

At Heritage Court, Egham, the five ground floor retail units are all now let.

At The White House, Egham, all five ground floor retail units and the first floor office space are let. Discussions with existing tenants to extend their leases, which expire over the next twelve months, are in progress. Specific building work to upgrade the upper floor office area is currently being considered.

The two bedroom house adjacent to our property at The White House, Egham, is let on an Assured Shorthold Tenancy Agreement.

At the Windsor Business Centre, Windsor, four business units totalling 12,000 sq ft are let on short term leases. Two business units were sold in previous years.

Campmoss Property Company Limited

At Market Street, Bracknell, following refurbishment of ten retail units, five have been let, four are under offer and one remains available. At Gowring House, adjacent to these units, refurbishment of the ground floor retail area has now been completed and tenant interest received. Two upper floor office areas remain vacant.

At Kiln Lane, Bracknell, the development now comprises sixteen business units following the creation of an additional four lower ground floor units. One of the larger business units has been sold on a long leasehold basis, twelve units are let and three units remain available.

At Tangley Place, Worplesdon, the proposed 78 bedroom care home scheme, lease terms have been agreed with a well known UK based care home operator for a new 30 year institutional lease. Project finance and a building contract are currently at an advanced stage of negotiation and, when completed, building works are expected to commence on site.

At Datchet Meadows, Slough, the development comprises 1, 2 and 3 bedroom apartments totalling 37 units. Eight apartments have been sold and twenty four apartments let on Assured Shorthold Tenancy Agreements. One apartment is currently under offer and the remaining four are available for letting or sale. The number of purchase and letting enquiries remains encouraging.

Shareholders' dealing facility

The company offers a free dealing service to those shareholders who wish to dispose of holdings of 1,000 shares or less. This facility is provided by our Registrars, Computershare Investor Services Plc, who can be contacted on 0870 703 0084. Shareholders should be aware that this service should not be construed as an encouragement to buy or sell the company's shares. If in any doubt shareholders should contact their own financial adviser.

Quoted investments

The company retains small holdings in Tribal Group Plc, ImmuPharma Plc and General Industries Plc. I remain a director of General Industries, a non trading cash shell company, which is quoted on the PLUS Market.

Outlook

It is encouraging to see some new lettings being achieved but, overall, the level of tenant enquiries remains disappointing. The group continues to manage its existing properties and the successful letting of part of our portfolio at Bracknell, together with the prospective commencement of Tangley Place, Worplesdon, does allow for an element of optimism. Commercial property investment values will remain under pressure and the property market will remain difficult. The group has a number of projects in progress and I look forward to reporting further at the end of the financial year.

J Richard Wollenberg

Chairman

27 April 2011

Condensed Consolidated Interim Income Statement

FOR THE SIX MONTHS ENDED 31 MARCH 2011

	Six months 31 March 2011 (Unaudited) £'000	Six months 31 March 2010 (Unaudited) £'000	Year 30 September 2010 (Audited) £'000
Revenue	268	474	793
Cost of sales	(30)	(185)	(120)
	______	______	______
Gross profit	238	289	673
Administrative expenses	(203)	(194)	(420)
Other operating income	126	125	265
	______	______	______
Operating profit before profit on sale of other investments and revaluation deficits	161	220	518
Profit on sale of other investments	-	524	516
Deficit on revaluation of investment properties	-	-	(30)
	______	______	______
Operating profit	161	744	1,004
Interest receivable and similar income	52	61	139
Share of results of jointly controlled entity	233	(83)	(643)
	______	______	______
Profit before taxation	446	722	500
Taxation	(64)	(218)	(190)
	______	______	______
Profit for the period attributable to equity holders	382	504	310
	______	______	______
Earnings per share on profit for the period  -  pence
Basic and diluted	28.5	32.0	20.9
	______	______	______
Dividends
Final 2010 paid 9.0p (2009: 9.0p)	121	142	142
Interim 2010 paid 3.3p (2009: 3.3p)	-	-	44
	______	______	______
	121	142	186
	______	______	______
Final 2010 proposed 9.0p	-	-	121
Interim 2011 proposed 3.3p (2010: 3.3p)	44	52	-
	______	______	______
	44	52	121
	______	______	______

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 2011

	31 March 2011 (Unaudited) £'000	31 March 2010 (Unaudited) £'000	30 September 2010 (Audited) £'000
Non-current assets
Freehold investment properties	3,995	4,025	3,995
Investment in jointly controlled entity	6,037	6,364	5,804
Property, plant and equipment	194	195	195
Other financial assets	220	263	220
Deferred tax asset	5	23	23
	______	______	______
Total non-current assets	10,451	10,870	10,237
	______	______	______
Current assets
Stock and work in progress	668	668	668
Trade and other receivables	2,281	2,769	2,802
Cash and cash equivalents	2,682	3,853	2,088
	______	______	______
Total current assets	5,631	7,290	5,558
	______	______	______
Total assets	16,082	18,160	15,795
	______	______	______
Current liabilities
Corporation tax	(243)	(477)	(194)
Trade and other payables	(395)	(417)	(415)
	______	______	______
Total current liabilities	(638)	(894)	(609)
	______	______	______
Non-current liabilities
Provisions	-	(65)	-
Deferred tax liability	(70)	(71)	(73)
	______	______	______
Total non-current liabilities	(70)	(136)	(73)
	______	______	______
Total liabilities	(708)	(1,030)	(682)
	______	______	______
Net assets	15,374	17,130	15,113
	______	______	______
Capital and reserves
Called up share capital	268	315	268
Share premium account	5,076	5,076	5,076
Other reserves	2,385	2,338	2,385
Investment property revaluation reserve	(740)	1,190	(740)
Retained earnings	8,385	8,211	8,124
	______	______	______
Shareholders' funds attributable to equity holders	15,374	17,130	15,113
	______	______	______
Net assets per share	1,148p	1,088p	1,129p
	______	______	______

Condensed Consolidated Interim Statement of Cash Flows

FOR THE SIX MONTHS ENDED 31 MARCH 2011

	Six months 31 March 2011 (Unaudited) £'000	Six months 31 March 2010 (Unaudited) £'000	Year 30 September 2010 (Audited) £'000
Cash flows from operating activities
Profit for the period	382	504	310
Adjustments for:
Depreciation	1	2	3
Financial income	(52)	(61)	(139)
Share of (profit)/loss of jointly controlled entity	(233)	83	643
Profit on sale of other investments	-	(524)	(516)
Deficit on revaluation of investment properties	-	-	30
Taxation	64	218	190
	______	______	______
Cash flows from operations before changes in working capital	162	222	521
Decrease in stock	-	139	139
Decrease/(increase) in trade and other receivables	521	(435)	(468)
Decrease in trade and other payables	(20)	(28)	(30)
Decrease in provisions	-	-	(65)
	______	______	______
Cash generated from/(absorbed by) operations	663	(102)	97
Tax paid	-	-	(253)
	______	______	______
Net cash flows from operating activities	663	(102)	(156)
	______	______	______
Cash flows from investing activities
Interest received	52	61	139
Acquisition of investments and property, plant and equipment	-	-	(1)
Proceeds on disposals of investments and property, plant and equipment	-	554	589
	______	______	______
Net cash flows from investing activities	52	615	727
	______	______	______
Cash flows from financing activities
Purchase of own shares	-	-	(1,779)
Dividends paid	(121)	(142)	(186)
	______	______	______
Net cash flows from financing activities	(121)	(142)	(1,965)
	______	______	______
Net increase/(decrease) in cash and cash equivalents	594	371	(1,394)
Cash and cash equivalents at beginning of period	2,088	3,482	3,482
	______	______	______
Cash and cash equivalents at end of period	2,682	3,853	2,088
	______	______	______

Other Primary Statements

FOR THE SIX MONTHS ENDED 31 MARCH 2011

Condensed Consolidated Interim Statement of Comprehensive Income and Expense

	Six months 31 March 2011 (Unaudited) £'000	Six months 31 March 2010 (Unaudited) £'000	Year 30 September 2010 (Audited) £'000
Profit for the period being total comprehensive income and expense for the period attributable to equity shareholders of the parent company	382	504	310
	______	______	______

Other Primary Statements

FOR THE SIX MONTHS ENDED 31 MARCH 2011 (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 2009	315	5,076	2,338	1,404	7,635	16,768
Profit for the period	-	-	-	-	504	504
Transactions with equity-holders
Dividends	-	-	-	-	(142)	(142)
	______	______	______	______	______	______
Total transactions with equity-holders	-	-	-	-	(142)	(142)
	______	______	______	______	______	______
Transfer on revaluation of investment properties	-	-	-	(214)	214	-
	______	______	______	______	______	______
At 31 March 2010	315	5,076	2,338	1,190	8,211	17,130
Loss for the period	-	-	-	-	(194)	(194)
Transactions with equity-holders
Dividends	-	-	-	-	(44)	(44)
Purchase of own shares	(47)	-	47	-	(1,779)	(1,779)
	______	______	______	______	______	______
Total transactions with equity-holders	(47)	-	47	-	(1,823)	(1,823)
	______	______	______	______	______	______
Transfer on revaluation of investment properties	-	-	-	(698)	698	-
Transfer from investment property revaluation reserve	-	-	-	(1,232)	1,232	-
	______	______	______	______	______	______
At 30 September 2010	268	5,076	2,385	(740)	8,124	15,113
Profit for the period	-	-	-	-	382	382
Transactions with equity-holders
Dividends	-	-	-	-	(121)	(121)
	______	______	______	______	______	______
Total transactions with equity-holders	-	-	-	-	(121)	(121)
	______	______	______	______	______	______
At 31 March 2011	268	5,076	2,385	(740)	8,385	15,374
	______	______	______	______	______	______

Statement of Responsibility

FOR THE SIX MONTHS ENDED 31 MARCH 2011

The directors are responsible for preparing the condensed consolidated interim financial statements for the six months ended 31 March 2011 and they acknowledge, to the best of their knowledge and belief, that:

·      the condensed consolidated interim financial statements for the six months ended 31 March 2011 have 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

27 April 2011

Notes to the Condensed Consolidated Interim Financial Statements

FOR THE SIX MONTHS ENDED 31 MARCH 2011

1. Status of interim report

The condensed consolidated interim financial statements for the six months ended 31 March 2011 and the comparative period have been prepared using applicable International Financial Reporting Standards adopted by the EU ("IFRS"), which includes IAS 34 and Interpretations issued by the International Accounting Standards Board ("IASB") and its committees, which are expected to be endorsed by the EU. The interim financial information has been prepared in accordance with the Listing Rules of the Financial Services Authority and was approved by the board on 27 April 2011. They are unaudited and do not comprise statutory accounts within the meaning of section 435 (1) of the Companies Act 2006.

The comparative figures for the financial year ended 30 September 2010 are not the company's statutory accounts for that financial year. Those accounts have been reported on by the company's auditors and delivered to the registrar of companies. The report of the auditors was: unqualified; did not give any reference to any matters to which the auditors 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, relating to the accounting records of the company.

2. Basis of preparation

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 2010. Whilst numerous other IFRSs and Interpretations have been endorsed in the period to 31 March 2011 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 in the calculation 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.

3. 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 2011 (Unaudited) £'000	Six months 31 March 2010 (Unaudited) £'000	Year 30 September 2010 (Audited) £'000
Revenue (wholly in the United Kingdom)
Property and other investments being gross rents receivable	268	276	595
Property development being sale of development properties	-	198	198
	______	______	______
	268	474	793
	______	______	______
Profit before taxation
Property and other investments	288	600	130
Property development	158	122	370
	______	______	______
	446	722	500
	______	______	______

The operations of the group are not seasonal.

4. Taxation

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

5. Dividends

The interim dividend of 3.3p per share will be paid on 1 July 2011 to shareholders on the register on 3 June 2011. Under accounting standards this dividend is not included in the condensed consolidated interim financial statements for the six months ended 31 March 2011.

6. Earnings per share

Earnings per share has been calculated using the profit after tax for the period of £382,000 (March 2010: £504,000; September 2010: £310,000) and the weighted average number of shares as follows:

	Weighted average number of shares
	31 March 2011	31 March 2010	30 September 2010
Basic and diluted	1,339,007	1,575,007	1,480,826
	_________	_________	_________

7. Purchase of own shares for cancellation

During the period no ordinary shares of 20 pence each were purchased and cancelled (March 2010: none; September 2010: 236,000 shares, nominal value of £47,200 and cost of £1,778,997).

    Directors and Advisers

Directors	Auditors
J Richard Wollenberg	KPMG Audit Plc
Chairman and chief executive
David A Whitaker FCA
Finance director	Stockbrokers and financial advisers
Nigel D Jamieson BSc, MRICS, FCSI	Arbuthnot 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, MIMC, MBIM
Head office	Registrar and transfer office
56 Station Road	Computershare Investor Services Plc
Egham TW20 9LF	PO Box 82
Telephone: [phone]	The Pavilions
Fax: [phone]	Bridgwater Road
E-mail: [e-mail]	Bristol BS99 7NH
Web: www.cardiff-property.com	Telephone: [phone]
	Dealing line: 0870 703 0084
Registered office	Registered number
3 Assembly Square	22705
Britannia Quay
Cardiff Bay CF10 4AX

Financial Calendar

2011	28 April	Interim results for 2011 announced
	1 June	Ex dividend date for interim dividend
	3  June	Record date for interim dividend
	1  July	Interim dividend to be paid
	30 September	End of accounting year
	December	Final results for 2011 announced
2012	January	Annual general meeting
	February	Final dividend to be paid

 

END

 

 

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