Interim Statement

Comprop Limited 3 January 2001 ComProp Limited Interim Statement For the Half Year to 30th September 2000 Financial highlights (unaudited) Half year to Half year to 30th September 30th September 2000 1999 £'000s £'000s Operating profit 119 455 Profit on ordinary activities before tax 14,718 484 Earnings per share 107.52p 2.86p Interim dividend (net) per share - 1.30p Capital dividend per share 125.00p - Chairman's Statement Performance In a very untypical six months, the profit for the period to 30th September 2000 was £14,718,000 (1999: £484,000) including exceptional items amounting to £14,300,000 (1999: nil). During the half year a number of activities were discontinued. * Channel Television Limited and Creative Channel Limited were sold on 13th June to Media Holdings Limited. The business performed well during the ten weeks of trading included in these results. * Bourne Group Limited was sold on 5th May to its management. The business traded at a loss during the period. * In brown goods, we withdrew from retailing and third party servicing, which traded at a loss. Continuing activities include our TV and video rental business, re-branded under its original name of Channel Rentals, which traded at a profit in the half-year; Channel Publications which registered particularly good performances with Guernsey Homefinder and Perry's Jersey Pathfinder; TABS, our company search and credit database, which also traded profitably. Property On 29th September the Company sold its freehold property in St Helier, Jersey and shortly after the freehold property in St Sampson, Guernsey was also sold. The purchaser of both was Walter Property Limited and the total consideration was £10.5 million, generating a profit of £3.8 million. Change The development referred to above has triggered the need for considerable change within the company. Head office has reduced significantly in size and, as a consequence of the sale of Channel Television, we have had to purchase new computer hardware and software and new telephone systems to support our ongoing undertakings. We have entered satisfactory leasing arrangements with Walter Property to accommodate those businesses which necessitated some internal reconstruction of accommodation. On 12th September the Company's name was changed to ComProp Limited. Looking forward This has been a period of intense activity and it is appropriate that we should now pause, consolidate and take stock before embarking on the next phase of the development of your company. We are considering a number of opportunities about which it is too soon to make further comment at this time. Dividend In October we paid out £17.1 million by way of capital dividend of 125p per share. Your board has decided not to pay an interim dividend. Directors Michael Lucas resigned from the Board in June when Channel Television Limited was sold. He was appointed to the Board in 1990 as Director of Television and became Managing Director of Channel Television in 1997. Michael made a very valuable contribution throughout his time on the Board for which, on behalf of colleagues and shareholders, I thank him and wish him success in his important role with Channel Television. Farewell John Henwood, Chief Executive since 1987 having started his career with the company as a trainee in 1962, will retire from all executive duties at the end of December. In thanking him for his efforts over all those years I wish him well for the future. Tom Scott Chairman Date: 3rd January 2001 Unaudited consolidated profit and loss account For the half year to 30th September 2000 Half year to Half year to Year to 31st 30th September 30th September March 2000 1999 2000 £'000s £'000s £000's Turnover Continuing operations 1,245 974 2,032 Discontinued operations 2,078 4,641 10,011 Total turnover 3,323 5,615 12,043 Cost of sales (709) (1,683) (2,963) Gross profit 2,614 3,932 9,080 Operating expenses (2,495) (3,477) (7,942) Operating profit Continuing operations 293 (217) 138 Discontinued operations (174) 672 1,000 Total operating profit 119 455 1,138 Exceptional items Gain on sale of subsidiaries 13,056 - - Gain on sale of properties 3,765 - - Cost of business restructuring (2,521) - - Profit on ordinary activities before interest and taxation 14,419 455 1,138 Net interest receivable 299 29 55 Profit on ordinary activities before taxation 14,718 484 1,193 Tax on profit on ordinary activities (61) (98) (271) Profit on ordinary activities after taxation 14,657 386 922 Dividends (17,127) (176) (176) Retained (loss)/profit for the financial period (2,470) 210 746 Earnings per share 107.52p 2.86p 6.82p Unaudited consolidated balance sheet at 30th September 2000 30th September 30th September 31st March 2000 1999 2000 £'000s £'000s £000's Fixed assets Tangible fixed assets 997 8,870 8,742 Current assets Stocks 21 762 677 Debtors 915 1,732 1,666 Cash at bank 27,531 - 721 28,467 2,494 3,064 Creditors Amounts falling due within one year (1,399) (1,697) (1,879) Dividends payable (17,167) (176) - Bank borrowings - (218) - Net current assets 9,901 403 1,185 Total assets less current liabilities 10,898 9,273 9,927 Creditors Amounts falling due after more than one year (160) (318) (244) Net assets 10,738 8,955 9,683 Capital and reserves Share capital 687 675 676 Reserves 10,051 8,449 9,007 Equity shareholders' funds 10,738 9,124 9,683 Minority interests - equity - (169) - 10,738 8,955 9,683 Net assets of 5p of share capital 78.2p 66.3p 71.6p Unaudited consolidated cash flow statement Half year to Half year to Year to 31st 30th September 30th September March 2000 1999 2000 £'000s £'000s £000's Net cash flow from operating activities 795 563 1,889 Returns on investment & servicing of finance 299 29 55 Taxation (348) (156) (163) Capital expenditure & financial investment 10,010 (391) (801) Acquisitions and disposals 15,720 58 - Dividends paid - (270) (446) Financing 334 14 252 Increase/(decrease) in cash balances 26,810 (153) 786 Statement of total recognised gains and losses There are no recognised gains and losses in any of the above periods other than those set out in the profit and loss account. Reconciliation of movement in shareholders' funds Half year to Half year to Year to 31st 30th September 30th September March 2000 1999 2000 £'000s £'000s £000's Profit for the financial period 14,657 386 922 Dividends (17,127) (176) (176) Goodwill written back 3,291 - 25 New share capital issued 234 2 - Net movement in shareholders' funds 1,055 212 771 Opening shareholders' funds 9,683 8,912 8,912 Closing shareholders' funds 10,738 9,124 9,683 Notes to the interim statement 1. Basis of preparation The interim financial information has been prepared on the basis of the accounting policies set out in the Company's 31st March 2000 statutory accounts. The results and balance sheet relating to the year ended 31st March 2000 have been extracted from the Company's full accounts on which there was an unqualified audit report. 2. Segmental information Half year to Half year to Year to 31st 30th September 30th September March 2000 1999 2000 £'000s £'000s £000's Turnover - continuing operations Publishing 282 289 529 Brown goods rental 644 610 1,351 Other activities 319 75 152 1,245 974 2,032 Turnover - discontinued operations Broadcast activities 1,292 2,739 5,930 Production 110 269 543 Retail and service 676 1,278 2,923 Training - 355 574 Other activities - - 41 2,078 4,641 10,011 Turnover - total 3,323 5,615 12,043 Discontinued operations include the results from Bourne Group Limited, Channel Television Limited and Creative Channel Limited which have all been sold (see note 4), as well as the retail and service activities of Channel Rentals Guernsey, which were discontinued by the end of July 2000, and Channel Technology Group Limited, which were discontinued in June 2000. Turnover from other activities (continuing operations) is mainly third part rental income from properties which have recently been sold. However, as it is the Company's intention to concentrate its activities on property development, the rental income is considered part of the Company's continuing operations. Operating profit from brown goods rental will, in the future, bear costs which have been previously allocated between rental, retail and service activities, the latter two of which are now discontinued. The Company estimates that brown goods rental benefited by approximately £75,000 in the period. 3. Net interest receivable Half year to Half year to Year to 31st 30th September 30th September March 2000 1999 2000 £'000s £'000s £000's Interest receivable on loans advanced 302 33 59 Interest payable on borrowings (3) (4) (4) 299 29 55 4. Exception items a) Gain on sale of subsidiaries In May 2000, Bourne Group Limited was sold to its management for £50,000 giving rise to a net loss of £1,225,000, including goodwill which was previously written off to reserves. In June 2000, Channel Television Limited and its subsidiary Creative Channel Limited were sold to a management buy-in team for £16,310,000. Proceeds Goodwill Fees & Carrying (Loss)/ write-off expenses value gain £'000s £'000s £'000s £'000s £'000s Bourne Group Limited 50 (1,214) (5) (56) (1,225) Channel Television Limited 16,310 - (615) (1,414) 14,281 16,360 (1,214) (620) (1,470) 13,056 Fees on the sale of Channel Television Limited include £320,000 paid to T. Scott (Chairman). The Company has given certain warranties in respect of the sale of Channel Television. Claims under the warranties must be notified within 18 months of completion of the sale. The maximum claimable is £5 million and only the excess over £250,000 in the aggregate may be claimed. b) Gain on sale of properties All freehold property was sold at 30th September 2000. The gain represents the difference between the sale proceeds and the net carrying amount of the land and buildings. c) Cost of business restructuring Cash spend Asset write-off Total £'000s £'000s £'000s Head office - 25 25 Channel Technology Group Ltd and Channel Rentals Guernsey Ltd 35 384 419 Rediffusion Channel Islands Ltd - 2,077 2,077 35 2,486 2,521 The background to the business restructuring costs is set out in the Chairman's statement on page 2. The activities of Rediffusion Channel Islands Limited were transferable to Channel Technology Group Limited and Channel Rentals Guernsey Limited several years ago. The restructuring of the business leads to the need to write-off goodwill which was previously written off to reserves. 5. Taxation Jersey and Guernsey income tax is provided at 20% on the relevant taxable profits. United Kingdom corporation tax is provided on the relevant taxable profits. 6. Change of name The Company changed its name from Channel Television Group Limited to ComProp Limited on 12th September 2000. 7. Reconciliation of profit on ordinary activities to net cash inflow from operating activities Half year to Half year to Year to 31st 30th September 30th September March 2000 1999 2000 £'000s £'000s £000's Profit on ordinary activities before exceptional items & interest 119 455 1,138 Depreciation charge 291 462 992 Write-off of tangible fixed assets 343 - - (Profit)/loss on sale of tangible fixed assets - (16) 10 Decrease/(increase) in stocks 519 (132) (47) (Increase)/decrease in debtors (107) 4 70 Decrease/(increase) in creditors 74 (210) (274) Restructuring costs (444) - - 795 563 1,889 Independent review report to ComProp Limited Introduction We have been instructed by the Company to review the financial information set out on pages 3 to 8 and we have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Directors' responsibilities The interim report, including the financial information contained therein, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the Listing Rules of the Financial Services Authority and applicable United Kingdom Accounting Standards. The Listing Rules of the London Stock Exchange require that the accounting policies and presentation applied to interim figures should be consistent with those applied in preparing the preceding annual accounts except where changes and the reasons for them are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued in the United Kingdom by the Accounting Practices Board and with our profession's ethical guidance. A review consists principally of making enquiries of group management and applying analytical procedures to the financial information and underlying financial data, and based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30th September 2000. Arthur Andersen Chartered Accountants Forum House Grenville Street St Helier Jersey Date: 3rd January 2001 ComProp Directors T Scott (Chairman) C R Day (Finance Director) J P Henwood (Chief Executive) M C Lucas (resigned 13th June 2000) E J M Potter J C Rowe Company Secretary C R Day Auditors Bankers Arthur Andersen HSBC Bank plc Forum House PO Box 14 Grenville Street Library Place St Helier St Helier Jersey Jersey JE3 4UF JE4 8NJ Nominated Advisor Nominated broker Collins Stewart Ltd Collins Stewart (C.I.) Ltd 21 New Street PO Box 8 Bishopsgate St Peter Port London Guernsey EC2M 4HR GY1 4AZ Registered office Registrar Television Centre Company Secretary St Helier Television Centre Jersey St Helier JE2 3TP Jersey JE2 3TP Telephone: 01534 835500 E-mail: charlesd@comprop.co.je

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