Interim Results

RNS Number : 9978G
First Property Group PLC
26 November 2015
 
 

Date:

26 November 2015

On behalf of:

First Property Group plc ("First Property" or "the Group")

Embargoed:

0700hrs

 

First Property Group plc

Interim Results for the six months to 30 September 2015                                

 

First Property Group plc (AIM: FPO), the property fund manager and investor, today announces its interim results for the six months to 30 September 2015.

 

Financial Highlights:

 


Unaudited

Six months to

30 September 2015

Unaudited

Six months to

30 September 2014

Percentage change

Audited

Year to

31 March

2015

 

Income Statement:





Statutory profit before tax 

£5.93m

£5.42m

+9.4%

£8.08m

Diluted earnings per share

4.13p

4.07p

+1.5%

6.93p

Dividend per share

0.385p

0.35p

+10.0%

1.35p

Average €/ £ rate used

1.386

1.250

-10.9%

1.285

 

Balance Sheet  at period end:





Net assets

£32.06m

£26.62m


£31.02m

Net assets per share

27.14p

22.72p


26.30p

Adjusted net assets per share*

40.29p

26.15p


35.75p

Cash Balances

£14.20m

£12.05m


£12.24m

Period-end €/ £ rate

1.357

1.283


1.382

 

Group Property Portfolio at period end:





Group Properties** at book value

£125.9m

£63.1m


£126.9m

Group Properties** at market value

£145.3m

£72.5m


£142.0m

Gross Debt secured against Group

Properties

£108.3m

£50.7m


£107.8m

LTV%

74.5%

69.9%


75.9%

 

Total assets under management:               

 

£283m

 

£333m


£327m

Poland

53.8%

66.9%


64.7%

United Kingdom

43.6%

30.5%


33.1%

Romania

2.6%

2.6%


2.2%

 

*

Calculated according to EPRA triple net valuation methodology, which includes adjustments for fair values of i) financial instruments, ii) debt, and iii) deferred taxes.

Excludes the Group's non-controlling interests in four other FPAM managed funds.

 

Operational Highlights and Explanatory Notes:

 

·      Interim dividend increased by 10% to 0.385 pence per share.

 

·      The contribution to Group profit before tax and unallocated central overhead costs from Group
Properties increased to £5.22 million (2014: £2.97 million) largely due to the contribution made by the
properties acquired in Poland and Romania by the Group and FOP between July and December 2014.

 

·      The contribution to Group profit before tax and unallocated central overhead costs from fund
management decreased to £1.19 million (2014: £2.90 million) due to both reduced performance fees
earned by Fprop PDR and the expiry of our fund management contract with USS. Fund management
fee income, excluding performance fees, is currently being earned at the rate of some £1.3 million per
annum but should grow from here as we continue to invest the SIPS mandate and as we win new
contracts.

 

·      Excluding the fair value adjustment, the impact of a weaker Euro versus Sterling resulted in profit
before tax being c£512,000 lower.

 

 

Commenting on the results, Ben Habib, Chief Executive of First Property Group, said:

 

"I am very pleased by the continued good progress made by the Group.

 

"We are now reaping the rewards of the investments made by Fprop Opportunities plc and ourselves over the last two years, which contributed some £5.2 million to Group profit before tax in the first half.

 

"We intend to continue to invest in high income generating property, most likely in Poland and ideally in partnerships with third parties. We are currently working on several such opportunities.

 

"The visibility of our earnings into 2016 and beyond is good and I look to the future with confidence."                                                                                                                        

 

 

http://www.fprop.com/plc-results/81/88/. A recorded copy of the audio call will subsequently be posted on the company website, www.fprop.com.

 

For further information please contact:

 

First Property Group plc

Tel: 020 7340 0270

Ben Habib (Chief Executive & Chief Investment Officer)

George Digby (Group Finance Director)

Jeremy Barkes (Director, Business Development)



Arden Partners

Tel: 020 7614 5900

Chris Hardie/ Ben Cryer




Redleaf Communications

Tel: 020 7382 4747

Richard Gotla/ Henry Columbine

firstproperty@redleafpr.com

 

 

Notes to Investors and Editors:

 

First Property Group plc is a property fund manager and investor with operations in the United Kingdom and Central Europe. Its earnings are derived from:

 

·      Fund management - via its FCA regulated and AIFMD approved subsidiary, First Property Asset Management Ltd (FPAM), which earns fees from investing for third parties in property:

 

Management fees are levied by reference to the value of properties under management;

 

Performance fees are levied where appropriate, usually payable upon realisation of profits above an agreed hurdle. 

 

·      Group Properties - principal investments by the Group, to earn a return on its own capital, usually in partnership with third parties.

 

FPAM funds have ranked No.1 versus the Investment Property Databank (IPD) Central & Eastern Europe (CEE) universe for the annualised periods from the commencement of its operations in Poland in 2005 to the end of each of the years between 31 December 2008 and 31 December 2014.

 

First Property Asset Management Limited is authorised and regulated by the Financial Conduct Authority. Further information about the Company and its products can be found at: www.fprop.com.

 

 

CHIEF EXECUTIVE'S STATEMENT

 

Financial Results

 

I am pleased to report interim results for the six months ended 30 September 2015.

 

Revenue earned by the Group amounted to £10.95 million (2014: £7.79 million) yielding a profit before tax of £5.93 million (2014: £5.42 million). The increase in revenue and profit before tax is largely attributable to the contribution made to earnings by Group Properties, which benefitted from a full contribution during the period from the six properties it acquired in Poland and Romania between July and December 2014.

 

Diluted earnings per share were 4.13 pence (2014: 4.07 pence).

 

The Group ended the period with net assets of £32.06 million (2014: £26.62 million). Its cash balance was £14.20 million (2014: £12.05 million), of which £3.26 million (2014: £4.28 million) was held by Fprop Opportunities plc (76.2% owned by the Group) and £461,000 (2014: £481,000) was held by Corp Sp z o,o. (90% owned by the Group), the property management company for Blue Tower in Warsaw.

 

Dividend

 

The Directors have resolved to increase the interim dividend by 10% to 0.385 pence per share (2014: 0.35 pence per share) which will be paid on 31 December 2015 to shareholders on the register at 4 December 2015, with an ex-dividend date of 3 December 2015.

 

Review of Operations:

 

Property Fund Management - (First Property Asset Management Ltd or FPAM)

 

As at 30 September 2015 aggregate assets under management, calculated by reference to independent third party property valuations, stood at £283 million (2014: £333 million), including some £145.3 million (2014: £72.5 million) of properties held by the Group and FOP. Of these 53.8% were located in Poland, 43.6% in the UK and 2.6% in Romania. Fees are levied by FPAM by reference to the value of funds under management excluding cash.

 

Revenue earned by this division reduced to £1.85 million (2014: £3.55 million), resulting in a profit before tax and unallocated central overhead costs of £1.19 million (2014: £2.90 million). This represents 18.5% (2014: 49.4%) of Group profit before tax and unallocated central overhead costs. The reduction in revenue and profit before tax of this division is attributable to a reduction in performance fees earned by Fprop PDR with £0.86 million earned during the period (2014: £1.9 million), and the wind down and subsequent expiry in August of our fund management contract with USS, which yielded £301,000 in fee income during the period (2014: £908,000).

 

A synopsis of each of the funds managed by the Group as at 30 September 2015 is set out below:

 

Fund

Country of investment

Established

Fund expiry

Assets under management at market value at

30 September

2015

% of total assets

 under management

Assets under management at market value at

30 September

2014

SAM Property Company Ltd (SAM)

UK

Aug 2004

Rolling

*

*

*

Regional Property Trading Ltd (RPT)

Poland

Aug 2004

Aug 2020

£6.3m

2.2%

£6.7m

5th Property Trading Ltd (5PT)

Poland

Dec  2004

Dec  2017

£7.8m

2.8%

£8.5m

USS Fprop Managed Property Portfolio LP

Poland

Aug 2005

Aug 2015

Nil

-

£140.7m

UK Pension Property Portfolio  LP (UK PPP)

UK

Feb 2010

Feb 2017

£95.1m

33.7%

£93.4m

 

Fprop PDR LP

UK

Oct 2013

May 2018

Nil (commitment of £42m)

-

£11.2m

SIPS Property Nominee Ltd

UK

Jan 2015

Jan 2025

£28.0m (commitment of £125m)

9.9%

Nil

Sub Total

£137.2m

48.6%

£260.5m

 

Fprop Opportunities plc (FOP)

Poland

Oct 2010

Oct 2020

£55.5m

19.6%

£48.8m

Group Properties (excluding FOP)

Poland & Romania

n/a

n/a

£89.8m

31.8%

£23.7m

Sub Total

£145.3m

51.4%

£72.5m

 

Total

£282.5m

100%

£333.0m

 

* Not subject to recent revaluation

 

Fprop PDR completed the sale of its last remaining property in July, resulting in the Group earning a performance fee of £1.87 million, of which £0.86 million was recognised during the period (2014: £1.9 million), with the balance having already been recognised in the prior period. This fund ceased making new investments in 2014.

 

We are making reasonable progress in investing the new SIPS mandate, awarded to us in January. At 30 September the value of the properties acquired stood at £28 million. Since the period end we have exchanged contracts and completed the purchase of a further £11 million of commercial property on its behalf, and we have a further £32 million of property under offer.

 

Fund management fee income, excluding performance fees, is currently being earned at a rate of some £1.3 million per annum. We expect this rate to increase as we continue to invest the SIPS fund and win more fund management contracts.

 

Group Properties

 

Group Properties comprise eleven commercial properties held by the Group, including five held by FOP (in which the Group is a 76.2% shareholder), and non-controlling interests in four of the seven funds managed by FPAM, as set out in the tables below. It is the Group's policy to carry its investments at the lower of cost or market value for accounting purposes, and to recognise dividends when received.

 

 

Directly Held Properties at 30 September 2015:

 

Property / Country

No. of properties

Book value

Market value

Contribution to Group profit before tax period to 30 September

2015

Contribution to Group profit before tax period to 30 September                 2014

Poland

3

£69.9m

£82.4m

£2.79m

£0.72m

Romania

3

£5.2m

£7.4m

£0.45m

£1.31m*

FOP (Poland - consolidated undertaking).

5

£50.8m

£55.5m

£1.72m

£0.80m

Total

11

£125.9m

£145.3m

£4.96m

£2.83m

 

Includes £1.123m of negative goodwill arising from the refinancing of the subsidiary.

 

Non-controlling interests in funds managed by FPAM at 30 September 2015:

 

Fund

% owned by

First Property

Group

Book value of First Property's share in

fund

Current market value of holdings

Group's share

of pre-tax profits earned by fund

30 September 2015

Group's share

of pre-tax profits earned by fund

30 September 2014

Interest in associates

5th Property Trading Ltd (5PT)

37.8%

£530,000

£1,038,000

£59,000

£81,000

Regional Property Trading Ltd (RPT)

28.6%

£145,000

£193,000

£6,000

£26,000

Share of results in associates

£675,000

£1,231,000

£65,000

£107,000

 

Investments

UK Pension Property Portfolio LP (UK PPP)

0.9%

£903,000

£903,000

£29,000

£30,000

Fprop PDR LP

5%

£13,000

£13,000

£163,000

Nil

Sub Total

£916,000

£916,000

£192,000

£30,000

 

Total

£1,591,000

£2,147,000

£257,000

£137,000

 

Revenue from Group Properties amounted to £9.10 million (2014: £4.24 million), generating a profit before tax and unallocated central overhead costs of £5.22 million (2014: £2.97 million). This represents 81.5% (2014: 50.6%) of Group profit before tax and unallocated central overhead costs.

 

The increase in profit before tax earned by Group Properties resulted mainly from a full period contribution from the six properties acquired by the Group and FOP in Poland and Romania between July and December 2014, which amounted to £2.69 million (2014: £162,000).

 

 

Commercial Property Markets Outlook

 

Poland:

 

GDP growth in Poland is forecast to be 3.5% in both 2015 and 2016.

 

In October's general election, the incumbent Civic Platform Party (PO) was ousted by the conservative (but apparently less business friendly) Law and Justice Party (PiS), to form Poland's first non-coalition government since the fall of Communism. It has pledged to use all available monetary and fiscal policy tools to boost GDP growth towards 5%-6% per annum but has suggested the introduction of new taxes on retailers and banks. It is also expected to cut interest rates by 0.5% to 1% in the first quarter of 2016.

 

The Polish Zloty/Euro exchange rate remains relatively stable at around PLN 4.1-4.3, as it has been for several years. However, the Sterling/Euro rate has weakened by some 20 per cent since 2013.

 

Rents for offices in Warsaw have fallen in recent years due to the large development pipeline but appear to have now stabilised. Rents and occupancy levels for other asset classes remain broadly stable.

 

Investment demand is mainly from German, US and UK investors and is focused on prime properties of large lot sizes. The transaction volume for 2015 is expected to exceed €3 billion, a level similar to that of 2014.

 

United Kingdom:

 

GDP is now 5.9% above the pre-crisis peak reached in the first quarter of 2008 and the rate of GDP growth is forecast to average 2-3% over the next couple of years.

 

The growth in the economy is likely to continue the trend of increased occupational demand and increasing rents.

 

Investor demand remains buoyant, although there is a growing market expectation that yield stabilisation is approaching, with future gains expected from rental growth. According to IPD the average net initial yield for all commercial property is now back to its 2007 peak of 4.9%, with the implied equivalent yield (after taking into account reversionary rent levels) at 5.9%.

 

The temporary extension to Permitted Development Rights for the automatic conversion of offices to residential use has been made permanent, although we still await details of the terms on which this extension has taken place.

 

Current Trading and Prospects

 

I am very pleased by the continued good progress made by the Group.

 

We are now reaping the rewards of the investments made by Fprop Opportunities plc and ourselves over the last two years, which contributed some £5.2 million to Group profit before tax in the first half.

 

We intend to continue to invest in high income generating property, most likely in Poland and ideally in partnership with third parties. We are currently working on several such opportunities.

 

The visibility of our earnings into 2016 and beyond is good and I look to the future with confidence.

 

 

Ben Habib

Chief Executive

26 November 2015

 

           

  



 

CONDENSED CONSOLIDATED INCOME STATEMENT

for the six months to 30 September 2015 


 

 

 

 

 

 

Notes

Six months to

30 Sept 2015 (unaudited)

 

Total results

£'000

Six months to

 30 Sept 2014 (unaudited)

 

Total results

£'000

Year to

31 March 2015

(audited)

 

Total results

£'000






Revenue

2

10,947

7,785

18,523

Cost of sales


(1,773)

(910)

(3,156)

Gross profit


9,174

6,875

15,367

Recognition of negative goodwill on

refinancing of subsidiary


-

1,123

1,123

Recognition of negative goodwill on the

acquisition of subsidiaries


-

-

716

Fair value adjustment to investment

properties


556

(89)

(876)

Operating expenses


(2,609)

(1,726)

(6,925)

Operating profit

2

7,121

6,183

9,405

Share of results in associates


65

107

185

Distribution income


192

30

694

Interest income


69

35

145

Interest expense


(1,518)

(934)

(2,346)

Profit before tax

2

5,929

5,421

8,083

Tax credit /(charge)

3

(661)

(433)

328

Profit for the period


5,268

4,988

8,411






Attributable to:





Owners of the parent


4,888

4,792

8,172

Non-controlling interest


380

196

239



5,268

4,988

8,411






Earnings per Ordinary 1p share





-basic

4

4.28p

4.24p

7.21p

-diluted

4

4.13p

4.07p

6.93p

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF

COMPREHENSIVE INCOME

for the six months to 30 September 2015

 


Notes

Six months to 30 Sept 2015

Six months to

30 Sept 2014

Year to

31 March  2015



unaudited

unaudited

audited



£'000

£'000

£'000






Profit for the period


5,268

4,988

8,411






Other comprehensive income










Exchange difference on retranslation of foreign subsidiaries


(3,161)

(1,091)

272

Revaluation of available-for-sale financial assets


13

43

37

Taxation


-

-

-

Total comprehensive income for the period


2,120

3,940

8,720





Total comprehensive income for the period:

Owners of the parent

Non-controlling interest





2,130

(10)

4,007

(67)

8,505

215



2,120

3,940

8,720



 

CONDENSED CONSOLIDATED BALANCE SHEET

as at 30 September 2015

 


Notes

As at

30 Sept 2015 (unaudited)

£'000

As at

30 Sept 2014 (unaudited)

£'000

As at

31 March 2015 (audited)

£'000






Non-current assets





Goodwill


153

153

153

Investment properties

5

112,956

51,026

114,262

Property, plant and equipment


162

53

43

Interest in associates

6a

675

707

671

Other financial assets

6b

916

2,400

1,531

Other receivables

7

228

349

283

Deferred tax assets


4,100

846

3,803

Total non-current assets


119,190

55,534

120,746






Current assets





Inventories - land and buildings


12,958

12,170

12,639

Current tax assets


52

55

236

Trade and other receivables 

7

5,378

3,565

5,744

Cash and cash equivalents


14,202

12,048

12,240

Total current assets


32,590

27,838

30,859

Current liabilities





Trade and other payables

8

(6,398)

(2,894)

(8,134)

Financial liabilities

9

(6,101)

(2,172)

(11,788)

Current tax liabilities


(162)

(242)

(108)

Total current liabilities 


(12,661)

(5,308)

(20,030)

Net current assets


19,929

22,530

10,829

Total assets less current liabilities


139,119

78,064

131,575






Non-current liabilities





Financial liabilities

9

(104,061)

(50,486)

(97,925)

Deferred tax liabilities


(3,003)

(962)

(2,631)

Net assets


32,055

26,616

31,019






Equity





Called up share capital


1,149

1,149

1,149

Share premium


5,508

5,503

5,505

Foreign Exchange Translation Reserve


(3,389)

(1,742)

(618)

Investment revaluation reserve

Share-based payment reserve


(36)

218

(43)

218

(49)

203

Retained earnings


27,547

20,718

23,735

Equity attributable to the owners of the parent


30,997

25,803

29,925

Non-controlling interest


1,058

813

1,094

Total equity


32,055

26,616

31,019






Net assets per share

4

27.14p

22.72p

26.30p

 



 

CONDENSED CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY

for the six months to 30 September 2015

 


Share

capital

 



£'000

Share premium

 



£'000

Share Based

Payment Reserve

 

£'000

Foreign Exchange Translation Reserve

 

£'000

Purchase/Sale of own Shares

 



£'000

Investment

Revaluation

Reserve

 

 

£'000

Retained Earnings



 

£'000

Non-controlling Interest



£'000

TOTAL

At 1 April 2014

1,149

5,498

203

(914)

(310)

(86)

17,027

895

23,462

Profit for the period

Fair value (or revaluation) gains on available- for- sale financial assets to profit or loss

-

 

-

 

 

-

 

-

 

 

-

 

-

 

 

(828)

 

-

 

 

-

 

-

 

 

-

 

43

 

 

4,988

 

-

 

 

(263)

 

-

 

 

3,897

 

43

 

 

Share based payments

-

-

15

-

-

-

-

-

15

Non-controlling interest

-

-

-

-

-

-

(196)

196

-

Treasury shares

-

5

-

-

101

-

-

-

106

Dividends paid

-

-

-

-

-

-

(892)

(15)

(907)

At 30 Sept 2014

1,149

5,503

218

(1,742)

(209)

(43)

20,927

813

26,616

Profit for the period

-

-

-

828

-

-

3,423

263

4,514

Fair value (or revaluation) gains on available- for- sale financial assets to profit or loss

-

-

-

-

-

(6)

-

-

(6)

Movement on foreign exchange

-

-

-

296

-

-

-

(24)

272

Share based payments

-

-

(15)

-

-

-

-

-

(15)

Non-controlling interest

-

-

-

-

-

-

(43)

43

-

Treasury Shares

-

2

-

-

36

-

-

-

38

Dividends paid

-

-

-

-

-

-

(399)

(1)

(400)

At 1 April 2015

1,149

5,505

203

(618)

(173)

(49)

23,908

1,094

31,019

Profit for the period

Fair value (or revaluation) gains on available- for- sale financial assets to profit or loss

-

 

-

-

 

-

-

 

-


-

-

-

 

13

5,268

 

-

-

 

-

 

5,268

 

13

Movement on foreign exchange

-

-

-

(2,771)

-

-

-

(390)

(3,161)

Share based payments

-

-

15

-

-

-

-

-

15

Non-controlling interest

-

-

-

-

-

-

(380)

380

-

Treasury shares

-

3

-

-

66

-

-

-

69

Dividends paid

-

-

-

-

-

-

(1,142)

(26)

(1,168)

At 30 Sept 2015

1,149

5,508

218

(3,389)

(107)

(36)

27,654

1,058

32,055

 

 

 

 

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

for the six months to 30 September 2015

 



Six months to

 30 Sept 2015 (unaudited)

Six months to 30 Sept 2014 (unaudited)

Year to

31 March 2015

 (audited)



£'000

£'000

£'000

Cash flows from operating activities

Notes




Operating profit


7,121

6,183

9,405

Adjustments for:





Depreciation of investment property, and property, plant & equipment


17

384

Fair value adjustment to investment properties


(556)

89

876

Negative goodwill


(1,123)

(1,839)

Share based payments


15

-

(Increase)/decrease in inventories


(70)

(258)

(Increase)/decrease in trade and other receivables


307

664

(486)

Increase/(decrease) in trade and other payables


(1,230)

(2,406)

577

Other non-cash adjustments


43

26

84

Cash generated from operations


6,374

3,395

8,743

Income taxes paid


(357)

(322)

(826)

Net cash flow from operating activities


6,017

3,073

7,917





Cash flow from investing activities




Purchase of investments

Capital expenditure on investment properties

Proceeds from partial disposal of available-for-sale assets


(651)

(38)

-

(353)

(383)

565

Purchase of property, plant and equipment


(125)

(6)

(14)

Cash paid on control/acquisition of new subsidiaries


-

(218)

(4,638)

Cash and cash equivalents received on control/acquisition of new subsidiaries


-

437

3,055

Dividends from associates


62

75

189

Distributions received


192

30

694

Interest received


69

35

145

Net cash flow from /(used in) investing activities


(184)

(336)

(740)






Cash flow from financing activities




Net repayment of shareholder loans in subsidiaries


(245)

(293)

Interest paid


(905)

(2,266)

Proceeds from bank loan


3,491

3,547

Repayment of finance lease/bank loans


(3,357)

(5,776)

Sale of shares held in Treasury


69

106

144

Dividends paid


(892)

(1,291)

Dividends paid to non-controlling interest


(26)

(15)

(16)

Net cash flow (used in) financing activities of continuing operations


(3,811)

(1,817)

(5,951)

Net increase in cash and cash equivalents


2,022

920

1,226

Cash and cash equivalents at the beginning of period


12,240

11,279

11,279

Currency translation gains/(losses) on cash and cash equivalents


(60)

(151)

(265)

Cash and cash equivalents at the end of the period


14,202

12,048

12,240

 



NOTES TO THE CONDENSED CONSOLIDATED RESULTS

for the six months ended 30 September 2015

 

 

1.   Basis of Preparation

 

·    These interim condensed consolidated financial statements for the six months ended 30 
September 2015 have not been audited or reviewed and do not constitute statutory accounts
within the meaning of section 435 of the Companies Act 2006. They have been prepared in
accordance with the Group's accounting policies as set out in the Group's latest annual financial
statements for the year ended 31 March 2015 and are in compliance with IAS 34 "Interim
Financial Reporting". These accounting policies are drawn up in accordance with International
Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as issued by
the International Accounting Standards Board and as adopted by the European Union (EU).

 

·    The comparative figures for the financial year ended 31 March 2015 are not the statutory accounts for the financial year but are abridged from those accounts prepared under IFRS which have been reported on by the Group's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified, did not include references to any matter to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section  498 (2) or (3) of the Companies Act 2006.

 

·    These interim financial statements were approved by a committee of the Board on 25 November 2015.



 

2.     Segmental Analysis 

 

Segment reporting six months to 30 September 2015

 

The parent holding company costs and related listing costs are shown separately under unallocated central costs.

 

 


Property fund management

Group properties

Group fund properties ("FOP")

Unallocated central overheads

TOTAL


£'000

£'000

£000

£'000

£'000

External revenue







1,845

6,099

3,003

-

10,947


1,845

6,099

3,003

-

10,947







Depreciation and amortisation

(13)

(747)

(55)

-

(815)







Operating profit






Existing operations

1,188

3,952

2,471

(490)

7,121

Share of results in associates

-

65

-

-

65

Dividend income

-

192

-

-

192

Interest income

-

14

45

10

69

Interest expense

-

(721)

(797)

-

(1,518)

Profit/(loss) before tax

1,188

3,502

1,719

(480)

5,929







Analysed as:






Before performance fees and related items:

324

4,324

1,242

(480)

5,410







Performance fees

864

-

-

-

864

Realised foreign currency loss

-

(105)

(79)

-

(184)

Depreciation

-

(717)

-

-

(717)

Fair value adjustments to investment properties

-

-

556

-

556

Staff incentives

-

-

-

-

-

Profit/(loss) before tax

1,188

3,502

1,719

(480)

5,929

 

 

Revenue for the six months to 30 September 2015 from continuing operations consists of revenue arising in the United Kingdom 14% (2014: 34%) and Central and Eastern Europe 86% (2014: 66%) and all relates solely to the Group's principal activities.

 



 

Segment reporting six months to 30 September 2014

 


Property fund management

Group properties

Group fund properties ("FOP")

Unallocated central overheads

TOTAL


£'000

£'000

£000

£'000

£'000

External revenue

3,550

1,582

2,653

-

7,785








3,550

1,582

2,653

-

7,785







Depreciation and amortisation

(14)

(3)

-

-

(17)







Operating profit






-existing operations

2,903

2,218

1,525

(463)

6,183

-share of results in associates

-

107

-

-

107

-dividend income

-

30

-

-

30

-interest income

-

7

13

15

35

-interest expense

-

(192)

(742)

-

(934)

Profit/(loss) before tax

2,903

2,170

796

(448)

5,421







Analysed as:






Before performance fees and related items:

792

1,047

1,085

(448)

2,476







Performance fees

2,111

-

-

-

2,111

Realised foreign currency loss

-

-

(200)

-

(200)

Recognition of negative goodwill on refinancing of subsidiary

-

1,123

-

-

1,123

Fair value adjustments to investment properties

-

-

(89)

-

(89)

Staff incentives

-

-

-

-

-

Profit/(loss) before tax

2,903

2,170

796

(448)

5,421

 

 

 



 

Segment reporting year to 31 March 2015

 


Property fund management

Group properties

Group

 fund properties ("FOP")

Unallocated central overheads

TOTAL


£'000

£'000

£'000

£'000

£'000

External revenue






-Existing operations

6,140

2,968

5,217

-

14,325

-Sale of inventory

-

-

-

-

-

-Business acquisitions

-

3,479

719

-

4,198

Total

6,140

6,447

5,936

-

18,523







Depreciation and amortisation 

(18)

(360)

(6)

-

(384)







Operating profit

4,435

5,454

2,454

(2,938)

9,405







Share of results in associates

-

185

-

-

185

Distribution income

-

694

-

-

694

Interest income

-

36

89

20

145

Interest expense

-

(730)

(1,616)

-

(2,346)

Profit/(loss) before tax

4,435

5,639

927

(2,918)

8,083







Analysed as:






Before performance fees and related items

1,605

4,489

2,272

(963)

7,403

Recognition of negative goodwill on refinancing of subsidiary

Recognition of negative goodwill on acquisition of subsidiaries

-

 

 

-

1,123

 

 

716

-

 

 

-

-

 

 

-

1,123

 

 

716

Fair value adjustment to investment properties

-

-

(876)

-

(876)

Depreciation

-

(357)

-

-

(357)

Performance fees

3,365

-

-

-

3,365

Staff incentives

(535)

(194)

(184)

(1,955)

(2,868)

Realised foreign currency gain/(loss)

-

(138)

(285)

-

(423)

Profit/(loss) before tax

4,435

5,639

927

(2,918)

8,083







 

Assets - Group

1,633

84,478

58,522

6,301

150,934

Share of net assets of associates

-

979

-

(308)

671

Liabilities

(289)

(72,437)

(45,666)

(2,194)

(120,586)

Net Assets

1,344

13,020

12,856

3,799

31,019

 

Assets, liabilities and costs that relate to Group central activities (including free cash) have not been allocated to business segments.



 

3.     Tax Expense

 

The tax credit / (charge) is based on a combination of actual current and deferred tax charged at an effective rate that is expected to apply to the profits for the full year. 

 


Sept 2015

Sept 2014

March 2015

Current  tax

(588)

(339)

(525)

Deferred tax

(73)

(94)

853

Total

(661)

(433)

328

 

4.     Earnings/NAV per share

 

The basic earnings per ordinary share is calculated on the profit on ordinary activities after taxation and after non-controlling interests on the weighted average number of ordinary shares in issue, during the period.

 

Figures in the table below have been used in the calculations.

 


Six months

ended

30 Sept 2015

Six months

ended

30 Sept 2014

Year

 ended

31 March 2015

Basic -

pence per Share

4.28p

4.24p

7.21p

Diluted -

pence per Share

4.13p

4.07p

6.93p






Number

Number

Number

Weighted average number of ordinary shares in issue for basic

114,177,240

112,953,380

113,348,847

Share options

4,450,000

5,050,000

4,850,000

Total for diluted

118,627,240

118,003,380

118,198,847






£'000

£'000

£'000

Basic earnings

4,888

4,792

8,172

Diluted earnings assuming full dilution

4,895

4,807

8,187

 

 


Six months

ended

30 Sept 2015

Six months

ended

30 Sept 2014

Year

 ended

31 March 2015

Net assets per share

27.14p

22.72p

26.30p

Adjusted net assets per share

40.29p

26.15p

35.75p

 

The following numbers have been used to calculate both the net assets and adjusted net assets per share.

 


Number

Number

Number

Number of shares in issue at period end

114,192,541

113,569,360

113,792,541


£'000

£'000

£'000

Net assets excluding non- controlling interest

30,997

25,803

29,925





Adjusted net assets per share

Number

Number

Number

Number of shares in issue at period end

114,192,541

113,569,360

113,792,541

Number of share options assumed to be exercised

4,450,000

5,050,000

4,850,000

Total

118,642,541

118,619,360

118,642,541



 

 

 


Adjusted net assets per share

£'000

£'000

£'000

Net assets excluding non-controlling interest

30,997

25,803

29,925

Adjustments for market value of assets less deferred tax

15,801

5,010

12,267

Other adjustments

999

207

221

Total

47,797

31,020

42,413

 

5.  Investment Properties

 


Six months

ended

30 Sept 2015

Six months

 ended

30 Sept 2014

Year

 ended

31 March 2015


£'000

£'000

£'000





1 April

114,262

48,759

48,759

Business acquisitions

-

5,547

75,390

Capital expenditure

1,009

38

383

Depreciation

(786)

-

(357)

Fair value adjustment

556

(89)

(876)

Foreign exchange translation

(2,085)

(3,229)

(9,037)

End of period

112,956

51,026

114,262

 

6.    Interest in Associates and Other Financial Assets

 


Six months ended

30 Sept 2015

Six months

ended

30 Sept 2014

Year

ended

31 March 2015

a) Associated undertakings

£'000

£'000

£'000





Cost of investment  at beginning of period

671

675

675

Disposals


-

-

Share of associates profit after tax  

66

107

185

Dividends received

(62)

(75)

(189)

Cost of investment  at end of period

675

707

671





Investments in Associated undertakings




5th Property Trading Ltd

838

868

827

Regional Property Trading Ltd

145

147

152


983

1,015

979

Less: Group share of profit after tax withheld on sale of property to an associate in 2007 

(308)

(308)

(308)

Cost of investment  at end of period

675

707

671





b) Other financial assets and investments








Cost of investment  at beginning of period

1,531

1,706

1,706

Additions

Business acquisitions

Disposal

-

-

(627)

651

-

-

353

-

(565)

Net increase in fair value

12

43

37

Cost of investment  at end of period

916

2,400

1,531

 

7.    Trade and Other Receivables

 


Six months ended

30 Sept 2015

Six months ended

30 Sept 2014

Year

 ended

31 March 2015


£'000

£'000

£'000

Current assets




Trade receivables

1,756

1,088

1,655

Other receivables 

2,971

2,140

3,147

Prepayments and accrued income 

651

337

942


5,378

3,565

5,744

Non-current assets

228

349

283

 

8.       Trade and Other Payables

 


Six months ended

30 Sept 2015

Six months ended

30 Sept 2014

Year

 ended

31 March 2015


£'000

£'000

£'000





Trade payables 

2,144

461

2,605

Other taxation and social security  

1,336

286

580

Other payables and accruals 

2,907

2,147

4,938

Deferred income

11

-

11


6,398

2,894

8,134

 

 

9.       Financial Liabilities

 


Six months ended

 30 Sept 2015

Six months ended

30 Sept 2014

Year

 ended

31 March  2015

a) Current liabilities

£'000

£'000

£'000





Bank loans

3,426

1,644

9,382

Finance leases

2,675

528

2,406


6,101

2,172

11,788





b) Non-current liabilities








Loans repayable by subsidiary (FOP) to third party shareholders

1,888

1,984

1,936

Bank loans

57,413

36,828

50,610

Finance leases

44,760

11,674

45,379


104,061

50,486

97,925





c) Total obligations under financial liabilities         








Less than one year

6,101

2,172

11,788

Between two and five years

67,584

39,647

57,928

Later than five years

36,477

10,839

39,997


110,162

52,658

109,713

 

 

Loans repayable by FOP to third party shareholders are unsecured and repayable in August 2020.

 

Eight bank loans and three finance leases (all denominated in Euros) totalling £108,274,000 (31 March 2015: £107,777,000) included within financial liabilities are secured against investment properties owned by the Group and Fprop Opportunities plc (FOP), and one property owned by the Group shown under inventories. These bank loans and finance leases are otherwise non-recourse to the Group's assets.

 

The interim results are being circulated to all shareholders and can be downloaded from the company's web site (www.fprop.com). Further copies can be obtained from the registered office at 32 St James's Street, London SW1A 1HD.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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