Interim Results
First Property Group PLC
10 November 2004
10 November 2004
FIRST PROPERTY GROUP PLC
INTERIM RESULTS
For the six months to 30 September 2004
First Property Group plc ('fprop' or 'the Group'), the online commercial
property transaction platform and property asset manager, announces interim
results for the six months to 30 September 2004.
Financial Highlights
• Turnover of £2,352,000 up 47% (2003: £1,597,000)
• Profit on ordinary activities before tax of £428,000 up 144% (2003:
£175,000)
• Earnings per share of 0.41p up 156% (2003: 0.16p)
• NAV at 30 September of £5,946,000 (2003: £2,371,000)
Corporate Highlights
• Consistent growth in underwriting activities
• Assets under management of £15.2 million (2003: £7 million)
• Another fund of at least £15 million is in the process of being raised
• Local/ regional authorities contract wins for CPD
Ben Habib, Chief Executive of fprop, said: 'Our growing profitability and the
strength of our balance sheet positions us extremely well to continue to
accelerate the growth of our activities.
'We continue to be pleased by the rate at which revenue generation has increased
and, subject to market conditions, we would expect this growth to continue
during the year to 31 March 2005.'
For further information:
Ben Habib Jeremy Carey/Marylene Guernier
First Property Group plc Tavistock Communications Limited
Tel: 020 7731 2844 Tel: 020 7920 3150
www.fprop.com mguernier@tavistock.co.uk
UNAUDITED CONSOLIDATED INTERIM RESULTS
for the six months to 30 September 2004
CHIEF EXECUTIVE'S STATEMENT
Results and dividend
I am pleased to report that turnover during the six month period to 30 September
2004 was £2,352,000 (2003: £1,597,000), producing an increase of 144% in profit
on ordinary activities before taxation of £428,000 (2003: £175,000). The gross
profit earned during the period was £848,000 (2003: £652,000). Earnings per
share amounted to 0.41 pence (2003: 0.16 pence), an increase of 156%.
Net assets were £5,946,000 at 30 September 2004 (2003: £2,371,000), including
cash of £2,222,000 (2003: £724,000).
The Directors have resolved to maintain the dividend policy established last
year of only declaring a final dividend. Accordingly, there is no interim
dividend. The amount of the final dividend will be determined later in the year.
Review of operations
Property transaction underwriting
Our underwriting activities have continued to create profitable opportunities
for the Group.
Turnover from this activity amounted to £2,120,000 (2003: £1,352,000) producing
a gross profit of £586,000 (2003: £368,000).
In the absence of any material adverse change in the UK economy, we expect this
division to make a further improved contribution to profits for the remainder of
the year.
Property asset management
Our asset management activities are growing at a fast pace.
Revenue earned by this division during the period to 30 September 2004 was
unchanged compared to the same period last year, at £67,000. However, the six
months to 30 September 2003 included £40,000 of super performance fees. Super
performance fees are now calculated and paid annually in arrears. There was no
super performance fee paid in the six months under review. We anticipate earning
super performance fees for the year to 31 March 2005, which will be reflected in
the annual accounts.
We now have £15.2 million (2003: £7 million) under management. We are in the
process of raising another fund, which is likely to add at least £15 million to
our assets under management, once fully invested.
As shareholders will recall, our asset management service aims to deliver
superior rates of return to its clients. The pre-tax rate of return on equity
from rent alone, for all our funds, exceeds 10% per annum. In addition, a
combination of judicious purchasing and active management has resulted in the
portfolio being worth significantly more than the price paid to acquire it.
We are confident that we can scale up our activities considerably without
compromising our ability to deliver these superior rates of return.
Commercial Property Database ('CPD')
CPD is trading satisfactorily, although the effect of the reduction in website
design mandates continues to be felt. This division earned revenue of £100,000
(2003: £168,000).
CPD launched a new public portal earlier this year. This has been received well
by its membership base. In the short time since it was launched, it has
generated traffic of some 200 unique viewers a day. We expect the new public
portal will increase the attraction of our service to both new and existing
members.
Our strategy of targeting local boroughs and regional authorities is beginning
to pay dividends. Recently secured new members include Brighton and Hove City
Council, Bedfordshire and Luton Economic Development Agency, 1066 Enterprise and
West Sussex Economic Partnership.
The data entry team in Pakistan is assisting materially our data collection
efforts. This resource provides an excellent basis for the integration of
acquisitions, as they occur.
We expect the division to contribute a healthy result for the year to 31 March
2005.
Online marketing of commercial property
Revenue earned from the online sale of commercial properties was £40,000 (2003:
£10,000)
This product has now repeatedly proven how very effective it is in selling
commercial property. The challenge for us is to build on this success by either
recruiting dedicated staff to promote it, or to grow it by acquisition. To this
end we are actively looking for suitable personnel.
Strategy
Shareholders will recall that we raised some £2.9 million in July in order to
underpin the Group's growth and empower it to act quickly in the event that a
suitable acquisition is found.
It is of paramount importance that, when we do make an acquisition, it is sound,
earnings enhancing and can genuinely deliver growth. We will use these key tests
when considering opportunities.
Current trading and prospects
We are pleased by the rate at which revenue generation has increased and,
subject to market conditions, we would expect this growth to continue during the
year to 31 March 2005.
Ben Habib
Chief Executive
10 November 2004
CONSOLIDATED PROFIT & LOSS ACCOUNT
for the six months to 30 September 2004
Six months to Six Year to 31 March
30 September months to 30 2004
2004 September 2003 (audited)
(unaudited) (unaudited)
Notes Total Total Total
Results Results Results
£'000 £'000 £'000
Turnover
- continuing operations 2,352 1,597 3,745
Total turnover 2 2,352 1,597 3,745
Cost of sales
- continuing operations (1,504) (945) (2,244)
Gross profit 848 652 1,501
Net operating expenses (401) (428) (868)
Operating profit
- continuing operations 447 224 633
Total operating profit 447 224 633
Net interest payable (19) (49) (47)
Profit on ordinary activities before
taxation 428 175 586
Taxation on profit on
ordinary activities - (10) (2)
Profit on ordinary activities before
minority interest 428 165 584
Equity minority interest (17) (15) 34
Profit for the period 411 150 618
Dividend on ordinary shares 3 (18) - (93)
Profit transferred to reserves 393 150 525
Earnings per Ordinary 1p share -
basic 4 0.41p 0.16p 0.67p
CONSOLIDATED BALANCE SHEET
as at 30 September 2004
Notes As at As at As at
30 Sept 30 Sept 31 March 2004
2004 (unaudited) 2003 (unaudited) (audited)
£'000 £'000 £'000
Fixed assets
Intangible assets - - -
Tangible assets 6 10 8
Investments 25 25 5
31 35 13
Current assets
Stocks - land and buildings 3,533 3,416 3,728
Debtors 381 473 1,207
Cash at bank and in hand 2,222 724 469
6,136 4,613 5,404
Creditors: amounts falling due within (221) (621) (2,661)
one year
Net current assets 5,915 3,992 2,743
Total assets less current liabilities 5,946 4,027 2,756
Creditors: amounts falling due after
more than one year - (1,656) -
Net assets 5,946 2,371 2,756
Capital and reserves
Called up share capital 6 1,112 928 931
Share premium 6 5,292 2,669 2,676
Merger reserve 6 5,823 5,823 5,823
Profit and loss account 6 (6,281) (7,049) (6,674)
Equity shareholders' funds 5,946 2,371 2,756
SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
for the six months to 30 September 2004
Notes Six months to Six months to Year
30 Sept 2004 30 Sept to 31 March
(unaudited) 2003 2004
£'000 (unaudited) (audited)
£'000 £'000
Net cash inflow/(outflow) from operating
activities 7 1,264 272 (388)
Returns on investment and servicing of
finance
Interest received 26 6 23
Interest paid (45) (55) (70)
Net cash (outflow) from returns on
investment and servicing of finance (19) (49) (47)
Capital expenditure and financial
investment
Purchase of tangible fixed assets - (2) (6)
Sale of tangible fixed assets - - -
Purchase of fixed asset investments (20) - -
Sale of fixed asset investments - - 20
Net cash (outflow)/inflow from capital
expenditure and financial investment (20) (2) 14
Equity Dividends paid (111) (46) (46)
Cash inflow/(outflow) before management of
liquid resources and financing 1,114 175 (467)
Management of liquid resources
(Increase)/decrease in short term deposits (2,174) (522) (1)
Financing
Issue of Ordinary share capital 2,797 12 22
Minority interest (17) (15) 34
Bank overdraft - - (9)
Loans advanced - 981 2,163
Loans repaid (2,141) (743) (1,588)
Net cash (outflow)/inflow from management
of liquid resources and financing (1,535) (287) 621
(Decrease)/increase in cash in period (421) (112) 154
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET (DEBT)/ FUNDS
Notes Six months to Six months to Year
30 Sept 2004 30 Sept 2003 to 31 March
(unaudited) (unaudited) 2004
£'000 £'000 (audited)
£'000
(Decrease)/increase in cash in period (421) (112) 154
Movement in short term deposits 2,174 522 1
Movement in loans 2,141 (238) (566)
Movement in net funds
in period 3,894 172 (411)
Net funds at beginning
of period (1,694) (1,283) (1,283)
Net funds/(debt) at end
of period 2,200 (1,111) (1,694)
NOTES TO THE CONSOLIDATED RESULTS
for the six months ended 30 September 2004
1. The interim accounts have been prepared on a basis which is consistent
with the accounting policies adopted for the year ended 31 March 2004.
2. Turnover consists entirely of revenue arising in the United Kingdom and
relates solely to the Group's principal activities.
3. The dividend charge of £18,000 is in respect of last year's final of
0.10 pence per share paid on the new shares issued on 23 July 2004 by the share
placing, but not accrued at 31 March 2004.
4. The basic earnings per Ordinary Share is calculated on the profit on
ordinary activities after taxation and minority interest on the weighted average
number of Ordinary Shares in issue, during the period, of 99,960,582 (30
September 2003: 92,580,782 and 31 March 2004: 92,724,244).
5. The company has no recognised gains or losses other than those disclosed
in the profit and loss account.
6. Capital and Reserves
Share Share premium Merger reserve Profit
capital and loss
account
£'000 £'000 £'000 £'000
At 1 April 2004 931 2,676 5,823 (6,674)
Issue of shares net of expenses 181 2,616 - -
Profit for the period - - - 393
At 30 Sept 2004 1,112 5,292 5,823 (6,281)
7. Reconciliation of operating profit to net cash inflow/(outflow) from
operating activities
Six months to Six months Year
30 Sept 2004 to 30 Sept to 31 March
(unaudited) 2003 2004
£'000 (unaudited) (audited)
£'000 £'000
Operating profit 447 224 633
Depreciation and profit on 2 11 17
disposal of fixed assets
Decrease/ (increase) in stocks 196 (226) (538)
Decrease/ (increase) in debtors 826 179 (555)
(Decrease)/ increase in creditors (207) 84 55
Net cash inflow/(outflow) from operating 1,264 272 (388)
activities
8. The financial information contained in this interim report does not
constitute statutory accounts within the meaning of section 240 of the Companies
Act 1985. This information has been neither audited nor reviewed within the
meaning of APB Bulletin 1999/4 by the Company's auditors. The financial
statements for the year ended 31 March 2004, incorporating an unqualified report
of the auditors, have been filed with the Registrar of Companies.
9. The interim results are being circulated to all shareholders. Further
copies can be obtained from the registered office at 17 Quayside Lodge, William
Morris Way, London SW6 2UZ.
This information is provided by RNS
The company news service from the London Stock Exchange
Wednesday, 15th May 2024
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