Interim Results

RNS Number : 8475H
First Property Group PLC
29 November 2022
 

Date:

29 November 2022

On behalf of:

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

Embargoed:

0700hrs

 

First Property Group plc

 

Interim results for the six months to 30 September 2022 

 

First Property Group plc (AIM: FPO), the award-winning property fund manager and investor with operations in the United Kingdom and Central Europe, today announces its interim results for the six months ended 30 September 2022.

 

Highlights:

· Profit before tax: £2.39 million (6 months ended 30 September 2021: £6.67 million)

· Cash reserves: £5.98 million (31 March 2022: £6.42 million)

· Net debt: £23.55 million (31 March 2022: £17.24 million)

· Purchased additional 32% of Blue Tower, Warsaw, for £7.44 million increasing the Group's share in the building to 80%

· Sold a warehouse in Tureni, Romania for £3.05 million, generating a profit on disposal of £1.06 million

· Leased a further 9% of office block in Gdynia

· Third party assets under management ("AUM"): £493 million (31 March 2022: £517 million)

· Total AUM: £542 million (31 March 2022: £559 million)

· Weighted average unexpired fund management contract term at 30 September 2022: 2 years, 9 months (31 March 2022: 3 years, 3 months)

· Interim dividend: 0.25 pence per share (30 September 2021: 0.25 pence per share).

 

Financial Summary:

 


Unaudited

Six months to 30 Sept 2022

Unaudited

Six months to 30 Sept 2021

Percentage change

Audited

Year to

31 March 2022

Income Statement:





Statutory profit before tax 

£2.39m

£6.67m

-64.2%

£7.08m

Diluted earnings per share

1.83p

5.72p

-68.0%

6.01p

Total dividend per share

0.25p

0.25p

0%

0.50p

Average €/ £ rate

1.1698

1.1632

-

1.1754

 

 




 

Unaudited

Six months to 30 Sept 2022

Audited

Year to

31 March 2022

Percentage change

Balance Sheet at period end:

 




Investment properties and Inventories at book value

£42.56m

£36.20m

17.6%

£36.87m

Investment properties and Inventories at market value

£48.67m

£42.24m

15.2%

£42.91m


 




Associates and investments at book value

£25.33m

£26.58m

-4.7%

£21.63m

Associates and investments at market value

£29.83m

£30.60m

-2.5%

£28.38m


 




Cash balances

£5.98m

£6.42m

-6.9%

£12.24m

Cash per share

5.39p

5.81p

-7.2%

11.09p

Gross debt

£29.53m

£23.66m

24.8%

£24.80m

Net debt

£23.55m

£17.24m

36.6%

£12.56m


 




Gearing ratio at book value*

39.71 %

34.90%

-

36.48%

Gearing ratio at market value**

35.09 %

30.69%

-

30.99%


 




Net assets at book value

£44.84m

£44.14m

1.6%

£43.20m

Net assets at market value

£54.62m

£53.43m

2.2%

£55.23m

Adjusted net assets per share (EPRA basis)

48.34p

47.28p

2.2%

48.88p


 




Period end €/ £ rate

1.1395

1.1834

-

1.1634

 

 




* Gearing ratio at book value = Gross debt excluding lease liabilities divided by gross debt plus net assets with properties at book value.

** Gearing ratio at market value = Gross debt excluding lease liabilities divided by gross debt plus net assets with properties at market value.

 

 

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

 

"Economies across the World are experiencing the aftershocks of lockdowns. Employment markets and supply chains were broken, and fuel reserves were neglected. When economies eventually unlocked, the resultant demand created a spike in inflation .

 

"Instead of moving to relax fiscal constraints, the UK Government is raising taxes. At the same time, the Bank of England is raising interest rates.

 

"This has caused the price of debt to rise significantly from the lows created by loose monetary policy. A re-pricing of the property market is underway, and it is as yet unclear where this might settle.

 

"There is bound to be a period of weakness, but things should settle during 2023 as long as there are no other shocks to the system. In time, higher inflation should result in rents increasing across the board, though a recession may slow down this adjustment.   

 

"Our financial position remains strong with some £54.6 million of adjusted net assets at market value, some £6 million in cash and modest leverage, most of which is interest free."

 

Investor Presentation:

 

A briefing for analysts and investors will be held at 11.00hrs today via Investor Meet Company. To participate it is necessary to register at https://www.investormeetcompany.com/first-property-group-plc/register-investor and select to meet the Company. Those who have already registered and selected to meet the Company will be automatically invited. A copy of the accompanying investor presentation and a recording of the call will be posted on the Group's website.

 

 

 

For further information please contact:

 

First Property Group plc 

Tel: +44 (20) 7340 0270

Ben Habib (Chief Executive Officer)

Laura James (Group Finance Director)

Jeremy Barkes (Director, Business Development)

www.fprop.com

investor.relations@fprop.com

Jill Aubrey (Company Secretary)

 

 

Allenby Capital (NOMAD & Broker)

Tel: + 44 (0) 20 3328 5656

Nick Naylor / Freddie Wooding (Corporate Finance)

Amrit Nahal (Equity Sales)


 

SEC Newgate (PR)

Tel: + 44 7540106366

Robin Tozer / Max Richardson

firstproperty@secnewgate.co.uk

 

 

Notes to Investors and Editors :

 

First Property Group plc is an award-winning property fund manager and investor with operations in the United Kingdom and Central Europe. Its focus is on higher yielding commercial property with sustainable cash flows. The Company is flexible and takes an active approach to asset management. 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. FPAM currently manages twelve funds which are invested across the United Kingdom, Poland and Romania.

 

· Group Properties - principal investments by the Group, to earn a return on its own capital, usually in partnership with third parties. Investments include six directly held properties in Poland and Romania, and non-controlling interests in ten of the twelve funds managed by FPAM.

 

Quoted on AIM, First Property has offices in London and Warsaw. Around one third of the shares in First Property are owned by management and their families. Further information about the Group and its properties can be found at: www.fprop.com .

 

CHIEF EXECUTIVE'S STATEMENT

 

Performance:

 

I am pleased to report interim results for the six months ended 30 September 2022.

 

Revenue earned by the Group was £4.19 million (6 months ended 30 September 2021: £4.03 million) yielding a profit before tax of £2.39 million (6 months ended 30 September 2021: £6.67 million). The profit last year was flattered by a loan restructuring which resulted in the amount owed reducing by £7.81 million. The profit in this period was mainly from property sales.

 

Diluted earnings per share decreased to 1.83 pence (6 months ended 30 September 2021: 5.72 pence).

 

The Group ended the period with net assets calculated under the cost basis of accounting of £44.84 million (31 March 2022: £44.14 million), equating to 40.44 pence per share (31 March 2022: 40.00 pence per share). The net assets of the Group with property values adjusted to their market value less any deferred tax liabilities (EPRA basis) was £54.62 million, or 48.34 pence per share (31 March 2022: £53.43 million, or 47.28 pence per share). The market values of Group properties are independently assessed at least once a year, on 31 March.

 

It is worth noting that some 17,000 square metres of the Group's two directly owned offices in Warsaw and Gdynia are vacant, which, once let, should generate in excess of €3 million per annum.

 

Gross debt at the period end amounted to £29.53 million (31 March 2022: £23.66 million), which was secured against five commercial properties in Poland and one in Romania. Of this, £16.77 million was non-interest bearing and represents deferred consideration payable for the purchase of two properties in Poland.  

 

The Group's gearing ratio, calculated with its six directly owned properties at book value, was 39.71% (31 March 2022: 34.90%). Using market values for these properties the gearing ratio was 35.09% (31 March 2022: 30.69%).

 

The Group's six directly owned properties are held in separate non-recourse special purpose vehicles without any cross collateralisation or Group guarantees.

 

Group cash balances at the period end stood broadly stable at £5.98 million (31 March 2022: £6.42 million), equivalent to 5.39 pence per share (31 March 2022: 5.81 pence per share).

 

Major cash movements in the period included:

 

· expenditure of £1.07 million for the purchase of an additional 32% of Blue Tower in Warsaw;

· expenditure of £0.76 million for the purchase of additional shares in Associates; and

· receipt of £0.60 million in net cash proceeds from the sale of a warehouse in Tureni, Romania.

 

 

Dividend:

 

The Directors have resolved to pay an interim dividend of 0.25 pence per share (6 months ended 30 September 2021: 0.25 pence per share). It will be paid on 30 December 2022 to shareholders on the register at 9 December 2022, with an ex-dividend date of 8 December 2022.

 

 

REVIEW OF OPERATIONS

 

PROPERTY FUND MANAGEMENT (First Property Asset Management Ltd or FPAM)

 

Third party assets under management at the period end decreased by 4.6% to £493 million (31 March 2022: 517 million). The decrease was attributable to the sale of four properties, all in the United Kingdom, valued at some 25.5 million for £28.2 million. These were offset by the purchase of one property, also in the United Kingdom, for 5.8 million. In addition, there was a decrease in the value of the properties held in third party managed funds of 11.6 million offset by a £6.5 million foreign exchange gain.

64.0% of third-party assets under management were located in the UK, 34.2% in Poland and 1.8% in Romania.

Fund management fees are generally levied monthly by reference to the value of properties. In the case of Fprop Offices LP, the Group is entitled to a share of total profits in lieu of fund management fees and to receive annual payments on account equivalent to 10% of total cumulative income profits and realised capital gains. These payments are adjusted, if necessary, for any overpayments made in previous years up to a maximum of total past cumulative payments received. Cumulative payments received totalled £1.97 million as at 30 September 2022 (31 March 2022: £1.97 million).

Revenue earned by this division decreased to 1.66 million (30 September 2021: 1.91 million), resulting in profit before unallocated central overheads and tax decreasing to 0.52 million (30 September 2021: 0.83 million).

At the period end fund management fee income, excluding performance fees and the profit share from Fprop Offices LP, was being earned at an annualised rate of £2.53 million (31 March 2022: £2.66 million).

FPAM's weighted average unexpired fund management contract term at the period-end was 2 years, 9 months (31 March 2022: 3 years, 3 months).

The reconciliation of movement in third party funds under management during the period is shown below:

 


Funds managed for third parties (including funds in which the Group is a minority shareholder)


UK

£m.

CEE

£m.

Total

£m.

No. of prop's

As at 1 April 2022

345.5

171.0

516.5

62

Property purchases

5.8

-

5.8

1

Property sales

(25.5)

-

(25.5)

(4)

Capital expenditure

-

1.2

1.2

-

Property revaluation

(10.1)

(1.5)

(11.6)

-

FX revaluation

-

6.5

6.5

-

As at 30 Sept 2022

315.7

177.2

492.9

59

 

An overview of the value and maturity of each of the funds managed by FPAM is set out below:

 

Fund

Country of investment

Fund expiry

Assets under management at market value at

30 Sept

 2022

No of properties

% of total third-party assets under management

Assets under management at market value at

31 March 2022

 

 

£m.

 

%

£m.

SAM & DHOW

UK

Rolling

*

*

*

*

5PT

Poland

Dec 2022

8.0

3

1.6

7.7

OFFICES

UK

Jun 2024

131.8

5

26.8

136.4

SIPS

UK

Jan 2025

126.8

23

25.7

140.6

FOP

Poland

Oct 2025

66.6

5

13.5

64.5

FGC

Poland

Mar 2026

22.1

1

4.5

21.3

SPEC OPPS

UK

Jan 2027

16.9

4

3.4

17.0

UK PPP

UK

Jan 2027

30.2

10

6.1

41.5

FKR

Poland

Mar 2027

20.1

1

4.1

19.4

FCL

Romania

Jun 2028

8.9

1

1.8

8.5

FPL

Poland

Jun 2028

51.6

4

10.5

49.6

FUL

UK

Indefinite

9.9

2

2.0

10.0

Total Third-Party AUM

 

492.9

59

100.0

516.5

* Not subject to recent revaluation.

 

 

The sub sector weightings of investments in FPAM funds is set out in the table below:

 


UK

Poland

Romania

Total

% of Total


£m.

£m.

£m.

£m.

 

Offices

204.2

96.8

8.9

309.9

62.9

Retail warehousing

73.8

-

-

73.8

15.0

Shopping centres

-

52.9

-

52.9

10.7

Supermarkets

37.7

18.6

-

56.3

11.4

Total

315.7

168.3

8.9

  492.9

100.0

% of Total

64.0%

34.2%

1.8%

100.0%

 

 

 

GROUP PROPERTIES DIVISION

 

At the period end the Group Properties division comprised six directly owned commercial properties in Poland and Romania valued at £48.67 million (31 March 2022: seven valued £42.24 million), and interests in ten of the twelve funds managed by FPAM (classified as Associates and Investments) valued at £29.83 million (31 March 2022: £30.60 million).

 

The contribution to Group profit before tax and unallocated central overheads from the Group Properties division was £2.40 million (30 September 2021: £8.13 million), of which the six directly owned properties contributed £0.98 million (30 September 2021: £7.72 million) and the Associates and Investments contributed £1.42 million (30 September 2021: £0.41 million) .

 

The profit earned by the six directly owned properties last year was flattered by a loan restructuring which resulted in the amount owed reducing by €9 million (£7.81 million).

 

The increase in profit earned by the Associates and Investments was mainly due to the Group receiving  1.20 million in distributions from its 11.1 % interest in Fprop UK Special Opportunities LP (Spec Opps),  following the sale of two properties by UK Pension Property Portfolio LP, in which Spec Opps has an interest of 49.7%.

 

During the period the Group increased its shareholding in Blue Tower in Warsaw to 80% by the purchase of a further 32% in the building for a consideration of £7.44 million.

 

The Group sold a property in Romania for £3.05 million, realising a profit of £1.06 million.

 

The Group also leased a further 9% of its office property in Gdynia, Poland. Once this space is handed over to the tenant, anticipated in January 2023, the building will be circa 28% occupied.

 

 

1.  Directly owned properties (all accounted for under the cost model):

 

The book value of the Group's six directly owned properties was £42.56 million. Their market value, based on their valuation at 31 March 2022, together with the price paid in August 2022 for an additional 32% of Blue Tower, was £48.67 million.

 

Country

Sector

No. of properties as at 30 Sept

 2022

Book value as at 30 Sept 2022

Market value as at 30 Sept 2022

*Contribution to Group profit before tax -

 period to
30 Sept 2022

*Contribution to Group profit before tax -

period to
30 Sept 2021

 

 

 

£m.

£m.

£m.

£m.

Poland, Gdynia

Offices

1

14.04

14.04

(0.21)

**7.51

Poland, Warsaw

Offices

1

19.72

23.24

0.64

0.67

Poland

Supermarkets

3

6.44

7.75

0.20

0.02

Romania

Offices & logistics

1

2.36

3.64

0.02

0.17

Profit on sale of Tureni

-

-

-

1.06

-

Other overhead costs allocated to the direct property division

-

-

-

(0.73)

(0.65)

Total

 

6

42.56

48.67

0.98

7.72

 

* Prior to the deduction of unallocated central overhead expenses;

**Includes €9 million (£7.81 million) debt reduction following restructuring of the finance lease at Gdynia;

 

 

The Group's acquisition of an additional 32% interest in Blue Tower (7,171 m2, of which 5,159 m2 was vacant) for £7.44 million was financed by a cash payment of £1.07 million and deferred consideration of £6.24 million. This deferred consideration, which is non-interest bearing, is payable in six instalments over six years.

 

The debt secured against these properties increased to £29.53 million (31 March 2022: £23.66 million), mainly as a result of t his deferred consideration. The increase in debt was partially offset by the repayment of 2.52 million (£2.14 million) of the loan against the warehouse property in Tureni, Romania, which was sold during the period.

 

Only £12.76 million of the debt was interest bearing.

 

Interest costs amounted to  £0.19 million in the period (30 September 2021: 0.16 million) . This equates to an average borrowing cost of 1.48% per annum when expressed as a percentage of the Group debt, or 3.04% if the non-interest bearing element is excluded. A one percentage point increase in interest rates would impact the cost of the floating rate loans and would increase the Group's annual interest bill by 80,000 per annum (31 March 2022: 100,000).

 

All six loans are held in separate non-recourse special purpose vehicles and are not guaranteed by the Group.

 

Directly owned Properties

30 Sept 2022

31 March 2022

Book value

£42.56m

£36.20m

Market value

£48.67m

£42.24m

Debt (all non-recourse to the Group)

£29.53m

£23.66m

LTV at book value %

69.39%

65.34%

LTV at market value %

60.68%

56.01%

Weighted average borrowing cost excluding deferred considerations

3.04%

3.06%

Weighted average borrowing cost - all debt

1.48%

1.39%

 

The weighted average unexpired lease term (WAULT) of the six properties as at 30 September 2022 was 4 years, 3 months (31 March 2022: 5 years, 7 months).

 

 

2.  Associates and Investments (A&I's)

 

These comprise non-controlling interests in ten of the twelve funds managed by FPAM, of which six are accounted for as "associates" under the cost model and four are accounted for as "investments in funds" and held at fair value. It is the accounting policy of the Group to carry its interests in associates at the lower of cost or market value.

 

The contribution to Group profit before tax and unallocated central overheads from A&Is increased to £1.42 million (30 September 2021: £0.41 million). The increase was mainly attributable to receipt of £1.20 million in distributions from Fprop UK Special Opportunities LP (Spec Opps).

 

The book value of the six associates was £19.83 million (31 March 2022: £19.14 million). Their market value was £24.34 million (31 March 2022: £23.15 million). The increase in the book value was mainly due to the purchase by the Group of additional shares in four associates for £0.76 million.

 

The value of the four investments in funds was £5.49 million (31 March 2022: £7.45 million). The decrease was mainly due to the payment of £1.20 million in distributions and the repayment of £0.77 million in shareholder loans by Spec Opps, both of which served to reduce its net asset value.

 

 

An overview of the Associates and Investments is set out in the table below: 

 

Fund

Country of investment

% owned by

First Property

Group

Book value of First Property's share in

fund

Current market value of holdings

Group's

 share

of post-tax profits earned by fund

30 Sept 2022

 Group's share

of post-tax profits earned by fund

30 Sept 2021


 

%

£'000

£'000

£'000

£'000

a) Associates







5PT

Poland

46.59

1,553

1,691

59

72

FRS

Romania

  *

-

-

-

47

FOP

Poland

45.71

12,735

13,186

347

175

FGC

Poland

29.09

2,888

3,169

119

71

FKR

Poland

18.07

1,578

1,638

(2)

56

FPL

Poland

23.38

478

3,788

(435)

(180)

FCL

Romania

21.17

602

867

29

35

Sub Total

 

 

19,834

24,339

117

276








b) Investments







UK PPP

UK

0.94

295

295

23

30

SPEC OPPS

UK

11.06

3,006

3,006

1,196

23

OFFICES

UK

1.64

1,933

1,933

74

77

FUL

UK

2.50

259

259

9

-

Sub Total



5,493

5,493

1,302

130

 

 

 

 


 


Total

 

 

25,327

29,832

1,419

406

 

*In liquidation

 

 

Commercial Property Market Outlook

 

Poland:

 

GDP is forecast to grow by 4.6% in 2022, 1% in 2023 and 2% in 2024, markedly slower than in past years. The annual rate of inflation is currently around 18% but is expected to reduce to around 13% in 2023. The National Bank of Poland has led interest rate rises in Europe, with its benchmark reference rate now standing at 6.75%. It has also indicated that it is close to the end of its interest rate raising cycle and that it may start to reverse increases in interest rates by the end of 2023.

 

Investment demand for commercial property has abated but continued economic growth and an influx of refugees and businesses from Ukraine should sustain occupational demand. Meanwhile, the effects of inflation, in particular in the cost of building materials and labour (which far exceeds the general rate of inflation), should curtail new supply of properties, forcing rents to rise in due course.

 

Rental values in Poland are contractually mostly linked to inflation, which offers some protection from inflation as long as the economy remains buoyant and tenants can afford to pay the increase.

 

Prime commercial yields generally range from 5-6% but are increasing.

 

The vacancy rate for offices in central Warsaw has fallen to around 5%. The pace of new office development in Warsaw has all but ground to a halt but the economy is still growing, as is demand for office space.

 

United Kingdom:

 

The Bank of England has predicted a protracted recession. Inflation is running at over 11% per annum but forecast to moderate to 5-6% in 2023 and further reduce in 2024. The Bank of England's base rate of interest is at 3.0% and expected to peak at around 4.5% in 2023.

Commercial property values are falling across all sectors in response to interest rate increases, exacerbated by an increase in the number of redemption requests made of open ended property funds.

 

 

 

 Current Trading and Prospects

 

 

Economies across the World are experiencing the aftershocks of lockdowns. Employment markets and supply chains were broken and fuel reserves were neglected. When economies eventually unlocked, the resultant demand created a spike in inflation.

 

Instead of moving to relax fiscal constraints, the UK government is raising taxes. At the same time the Bank of England is raising interest rates.

 

This has caused the price of debt to rise significantly from the lows created by loose monetary policy. A re-pricing of the property market is underway and it is as yet unclear where this might settle.

 

There is bound to be a period of weakness but things should settle during the course of 2023, as long as there are no other shocks to the system. In time,  higher inflation should result in rents increasing across the board, though a recession may slow down this adjustment. 

 

Our financial position remains strong with some £54.6 million of adjusted net assets at market value, some £6 million in cash and modest leverage, most of which is interest free.  

 

 

Ben Habib

Chief Executive

 

 

 

 

 

 

 

 

 

CONSOLIDATED INCOME STATEMENT

for the six months to 30 September 2022

 


Notes

Six months to 30 Sept 2022

(unaudited)

Six months to

30 Sept 2021

(unaudited)

Year to

31 Mar 2022

(audited)



£'000

£'000

£'000



 



Revenue


4,188

4,033

8,645

Cost of sales


(1,697)

(1,298)

(2,928)

Gross profit

 

2,491

2,735

5,717



 



Profit on sale of an investment property


1,061

-

-

Debt reduction following restructuring of finance lease


-

7,809

7,809

Operating expenses


(2,466)

(4,258)

(7,464)

Operating profit


1,086

6,286

6,062

Share of results in associates

9a

117

234

(29)

Share of associates' revaluation gain

9a

-

42

876

Investment income


1,302

130

271

Interest income

4

75

130

230

Interest expense

4

(188)

(157)

(330)

Profit before tax


2,392

6,665

7,080

Tax charge

5

(297)

(180)

(245)

Profit for the period


2,095

6,485

6,835



 



Attributable to:


 



Owners of the parent


2,065

6,457

6,779

Non-controlling interests


30

28

56



2,095

6,485

6,835






Earnings per share





Basic

6

1.86p

5.85p

6.14p

Diluted

6

1.83p

5.72p

6.01p

 

All operations are continuing.

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF

COMPREHENSIVE INCOME

 

for the six months to 30 September 2022

 

 


Notes

Six months to 30 Sept 2022

Six months to

30 Sept 2021

Year to

31 Mar 2022



(unaudited)

(unaudited)

(audited)



£'000

£'000

£'000



 



Profit for the period


2,095

6,485

6,835



 



Other comprehensive income


 



Items that may subsequently be reclassified to profit or loss:


 



Exchange differences on retranslation of foreign subsidiaries


(86)

24

(189)

Net (loss)/ gain on financial assets at fair value through Other Comprehensive Income

9b

(1,047)

(14)

1,039

Taxation


-

-

-

Total comprehensive income for the period


962

6,495

7,685



 



Total comprehensive income for the period attributable to:


 



Owners of the parent


923

6,409

7,623

Non-controlling interests


39

86

62



962

6,495

7,685

 

 

All operations are continuing.

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

as at 30 September 2022

 


Notes

As at

30 Sept 2022 (unaudited)

 

As at

31 Mar 2022 (audited)

As at

30 Sept 2021 (unaudited)

 



£'000

£'000

£'000



 



Non-current assets


 



Investment properties

7

22,839

23,849

24,090

Right of use Asset


790

1,018

686

Property, plant and equipment


106

128

130

Investment in associates

9a

19,834

19,135

18,580

Other financial assets at fair value through OCI

9b

5,493

7,445

3,049

Other receivables

10

-

95

293

Goodwill


153

153

153

Deferred tax assets


913

1,599

1,596

Total non-current assets

 

50,128

53,422

48,577



 



Current assets


 



Inventories - land and buildings

8

19,722

12,352

12,775

Current tax assets


7

14

5

Right of use assets


444

446

-

Trade and other receivables 

10

6,113

4,329

4,919

Cash and cash equivalents


5,977

6,419

12,239

Total current assets


32,263

23,560

29,938



 



Current liabilities


 



Trade and other payables

11

(3,110)

(3,388)

(4,635)

Provisions

12

(773)

(922)

(1,767)

Lease liabilities


(408)

(410)

-

Financial liabilities

13a

(5,648)

(4,212)

(1,316)

Other financial liabilities

14

(907)

-

-

Current tax liabilities


(93)

(20)

(31)

Total current liabilities 


(10,939)

(8,952)

(7,749)

Net current assets


21,324

14,608

22,189

Total assets less current liabilities


71,452

68,030

70,766






Non-current liabilities





Financial liabilities

13b

(7,114)

(9,309)

(13,173)

Other financial liabilities

14

(15,863)

(10,141)

(10,314)

Lease liabilities


(890)

(1,098)

(686)

Deferred tax liabilities


(2,509)

(3,112)

(3,142)

Net assets


45,076

44,370

43,451



 



Equity


 



Called up share capital


1,166

1,166

1,166

Share premium


5,635

5,791

5,791

Share-based payment reserve


179

179

179

Foreign exchange translation reserve


(3,392)

(3,297)

(3,142)

Purchase of own shares reserve


(2,440)

(2,653)

(2,653)

Investment revaluation reserve


(363)

684

(369)

Retained earnings


44,059

42,271

42,225

Equity attributable to the owners of the parent


44,844

44,141

43,197

Non-controlling interests


232

229

254

Total equity


45,076

44,370

43,451



 



Net assets per share

6

40.44p

40.00p

39.13p

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

for the six months to 30 September 2022

 

 

Share

Capital

Share Premium

 

Share- Based

Payment Reserve

Foreign Exchange Translation Reserve

Purchase of own Shares

Investment

Revaluation

Reserve

 

Retained Earnings



Non-controlling Interests

 

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 1 April 2021

1,166

5,791

179

(3,108)

(2,653)

(355)

35,768

201

36,989

Profit for the period

-

-

-

-

-

-

6,485

-

6,485

Net (loss)/ gain on financial assets at fair value through other comprehensive income

-

-

-

-

-

(14)

-

-

(14)

Movement on foreign exchange

-

-

-

(34)

-

-

-

58

24

Total Comprehensive Income

-

-

-

(34)

-

(14)

6,485

58

6,495

Purchase of treasury shares

-

-

-

-

-

-

-

-

-

Non-controlling interests

-

-

-

-

-

-

(28)

28

-

Dividends paid

-

-

-

-

-

-

-

(33)

(33)

At 30 Sept 2021

1,166

5,791

179

(3,142)

(2,653)

(369)

42,225

254

43,451

Profit for the period

-

-

-

-

-

-

350

-

350

Net gain/ (loss) on financial assets at fair value through other comprehensive income

-

-

-

-

-

1,053

-

-

1,053

Movement on foreign exchange

-

-

-

(155)

-

-

-

(52)

(207)

Total Comprehensive Income

-

-

-

(155)

-

1,053

350

(52)

1,196

Sale of treasury shares

-

-

-

-

-

-

-

-

-

Purchase of treasury shares

-

-

-

-

-

-

-

-

-

Non-controlling interests

-

-

-

-

-

-

(28)

28

-

Dividends paid

-

-

-

-

-

-

(276)

(1)

(277)

At 1 April 2022

1,166

5,791

179

(3,297)

(2,653)

684

42,271

229

44,370

Profit for the period

-

-

-

-

-

-

2,095

-

2,095

Net (loss)/ gain on financial assets at fair value through other comprehensive income

-

-

-

-

-

(1,047)

-

-

(1,047)

Movement on foreign exchange

-

-

-

(95)

-

-

-

9

(86)

Total Comprehensive Income

-

-

-

(95)

-

(1,047)

2,095

9

962

Sale of treasury shares

-

(156)

-

-

213

-

-

-

57

Non-controlling interests

-

-

-

-

-

-

(30)

30

-

Dividends paid

-

-

-

-

-

-

(277)

(36)

(313)

At 30 Sept 2022

1,166

179

(3,392)

(2,440)

(363)

44,059

232

45,076

 

 

 

 

 

CONSOLIDATED CASH FLOW STATEMENT

 

for the six months to 30 September 2022

 


Notes

Six months to

 30 Sept 2022 (unaudited)

Six months to 30 Sept 2021 (unaudited)

Year to

31 Mar 2022

 (audited)



£'000

£'000

£'000

Cash flows from/ (used in) operating activities


 



Operating profit / (loss)


1,086

6,286

6,062

Adjustments for:


 



Depreciation of investment property, and property, plant & equipment


14

38

90

Profit on the sale of investment property

7

(1,061)

-

-

Debt reduction following restructuring of finance lease


-

(7,809)

(7,809)

(Increase)/ decrease in inventories


(59)

(77)

38

(Increase)/ Decrease in trade and other receivables


(1,679)

189

1,208

(Decrease)/ increase in trade and other payables


(415)

811

(1,213)

Other non-cash adjustments


3

47

65

Cash generated from operations


(2,111)

(515)

(1,559)

Income taxes paid


(124)

182

118

Net cash flow (used in)/ from operating activities


(2,235)

(333)

(1,441)



 



Cash flow from/ (used in) investing activities


 



Capital expenditure on investment properties

7

(81)

(1,333)

(1,642)

Purchase of property, plant and equipment


(8)

(2)

(33)

Purchase of inventories

8

(1,070)

-

-

Proceeds from the sale of an investment property


2,967

-

-

Investment in funds

9b

(2)

(2)

(3,633)

Proceeds from funds

9b

907

-

290

Proceeds from Investment in shares of associates

9a

175

31

48

Interest received

4

7

130

187

Investment in shares of associates

9a

(757)

-

-

Dividends from associates

9a

-

242

241

Distributions received


1,300

130

266

Net cash flow from/ (used in) investing activities


3,438

(804)

(4,276)



 



Cash flow from/ (used in) financing activities


 



Proceeds from bank loan


1,686

1,289

1,289

Repayment of bank loans


(2,977)

(574)

(1,297)

Repayment of finance lease


-

(3,434)

(3,434)

Exercise of share options


119

-

-

Interest paid

4

(188)

(157)

(330)

Dividends paid


(277)

-

(276)

Dividends paid to non-controlling interests


(36)

(33)

(34)

Net cash flow (used in)/ from financing activities


(1,673)

(2,909)

(4,082)



 



Net (decrease)/ increase in cash and cash equivalents


(470)

(4,046)

(9,799)

Cash and cash equivalents at the beginning of period


6,419

16,244

16,244

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


28

41

(26)

Cash and cash equivalents at the end of the period


5,977

12,239

6,419



NOTES TO THE ACCOUNTS

 

for the six months ended 30 September 2022

 

 

1.  Basis of Preparation

 

· These interim consolidated financial statements for the six months ended 30 September 2022 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 2022 and are in compliance with IAS 34 "Interim Financial Reporting". These accounting policies are drawn up in accordance with UK-adopted International Accounting Standards.

 

· The comparative figures for the financial year ended 31 March 2022 are not the full 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 28 November 2022.

 

 

 

 

2.  Segmental Analysis 

 

Segment reporting for the six months to 30 September 2022

 

 

Fund Management Division

Group Properties Division

 

 


Property

fund management

Group properties

Associates and investments

Unallocated central overheads

TOTAL


£'000

£'000

£'000

£'000

£'000

Rental income

-

1,788

-

-

1,788

Service charge income

-

737

-

-

737

Asset management fees

1,437

-

-

-

1,437

Performance related fee income

226

-

-

-

226

Total revenue

1,663

2,525

-

-

4,188






 

Depreciation and amortisation 

(18)

(12)

-

-

(30)






 

Operating profit

519

1,089

-

(522)

1,086






 

Share of results in associates

-

-

117

-

117

Investment income

-

-

1,302

-

1,302

Interest income

-

75

-

-

75

Interest expense

-

(188)

-

-

(188)

Profit/ (loss) before tax

519

976

1,419

(522)

2,392






 

Analysed as:





 

Underlying profit/ (loss) before tax before adjusting for the following items:

294

27

223

(540)

4

Interest on loan to FOP

-

68

-

-

68

Profit on Sale of Group properties

-

1,061

-

-

1,061

Performance related fee income

226

-

-

-

226

Investment income resulting from sale of properties

-

-

1,196

-

1,196

Staff incentives

-

-

-

-

-

Realised foreign currency (losses)/ gains

(1)

(180)

-

18

(163)

Profit/ (loss) before tax

519

976

1,419

(522)

2,392

 

 

Revenue for the six months to 30 September 2022 from continuing operations consists of revenue arising in the United Kingdom 27% (30 September 2021: 29%) and Central and Eastern Europe 73% (30 September 2021: 71%) and all relates solely to the Group's principal activities.

 

Direct costs incurred by First Property Group plc relating to the cost of the Board and the related share listing costs are shown separately under unallocated central costs.

 

 

 

Segment reporting for the six months to 30 September 2021

 

 

 

Fund Management Division

Group Properties Division

 

 


Property

fund management

Group properties

Associates and investments

Unallocated central overheads

TOTAL


£'000

£'000

£'000

£'000

£'000

Rental income

-

1,520

-

-

1,520

Service charge income

-

605

-

-

605

Asset management fees

1,702

-

-

-

1,702

Performance related fee income

206

-

-

-

206

Total revenue

1,908

2,125

-

-

4,033






 

Depreciation and amortisation 

(25)

(68)

-

-

(93)






 

Operating profit

829

7,788

-

(2,331)

6,286






 

Share of results in associates

-

-

234

-

234

Fair value adjustment to associate

-

-

42

-

42

Investment income

-

-

130

-

130

Interest income

-

94

-

36

130

Interest expense

-

(157)

-

-

(157)

Profit/ (loss) before tax

829

7,725

406

(2,295)

6,665






 

Analysed as:





 

Underlying profit/ loss before tax before adjusting for the following items:

423

25

364

(411)

401






 

Interest on loan to FOP

-

112

-

-

112

Debt reduction in respect of finance lease

-

7,809

-

-

7,809

Group's share of revaluation gain on associates

-

-

42

-

42

Provision of rent guarantee

-

(184)

-

-

(184)

Performance related fee income

206

-

-

-

206

AM fee from one off tenant deal

192

-

-

-

192

Staff incentives

-

-

-

(1,850)

(1,850)

Realised foreign currency gains/ (losses)

8

(37)

-

(34)

(63)

Profit/ (loss) before tax

829

7,725

406

(2,295)

6,665

 

 

 

 

 

 

Segment reporting for the year to 31 March 2022

 


Fund Management Division

Group Properties Division


 


Property

fund management

Group properties

Associates and investments

Unallocated central overheads

TOTAL


£'000

£'000

£'000

£'000

£'000

Rental income

-

2,926

-

-

2,926

Service charge income

-

1,678

-

-

1,678

Sale of a property held in inventory

-

-

-

-

-

Asset management fees

3,463

-

-

-

3,463

Performance related fee income

578

-

-

-

578

Total revenue

4,041

4,604

-

-

8,645






 

Depreciation and amortisation 

(36)

(24)

-

-

(60)

 





 

Operating profit

1,437

7,781

-

(3,156)

6,062

Share of results in associates

-

-

(29)

-

(29)

Fair value adjustment on associates

-

-

876

-

876

Investment income

-

-

271

-

271

Interest income

-

29

-

201

230

Interest expense

-

(330)

-

-

(330)

Profit/ (loss) before tax

1,437

7,480

1,118

(2,955)

7,080






 

Analysed as:





 

Underlying profit/ (loss) before tax before adjusting for the following items:

1,182

401

242

(1,449)

376






 

Provision in respect of rent guarantee

-

(629)

-

-

(629)

Interest received on loan to FOP

-

202

-

-

202

Debt reduction following restricting of finance lease

-

7,809

-

-

7,809

Fair value adjustment on associates FOP

-

-

876

-

876

Performance related fee income

578

-

-

-

578

Staff incentives

(305)

(251)

-

(1,472)

(2,028)

Realised foreign currency (losses)/ gains

(18)

(52)

-

(34)

(104)

Total

1,437

7,480

1,118

(2,955)

7,080






 

Assets - Group

891

44,693

7,445

4,818

57,847

Share of net assets of associates

-

-

19,135

-

19,135

Liabilities

(143)

(31,922)

-

(547)

(32,612)

Net assets

748

12,771

26,580

4,271

44,370

 

 

 

 

 

 

3.  Debt reduction following restructuring of finance lease

 

The results for the year ended 31 March 2022 and for the period ended and 30 September 2021 reflect the reduction of €9.00 million (£7.81 million) in the amount owed to ING Bank ( from €25 million to €16 million) in final settlement of the finance lease secured against the Group's directly held property in Gdynia. As part of the transaction ING was paid €4.00 million in June 2021. The remainder of the finance lease liability was replaced by an interest free deferred consideration of €12.00 million (£10.14 million) repayable in financial year ended 31 March 2025. The deferred consideration is reflected as an Other Financial Liability in the Statement of Financial Position.

 

 

4.  Interest Income/ (Expense)

 

 

Six months

ended

30 Sept 2022

Six months

ended

30 Sept 2021

Year

ended

31 Mar 2022


£'000

£'000

£'000

Interest income - bank deposits

-

-

-

Interest income - other

75

130

230

Total interest income

75

130

230

 

 

Six months

 ended

30 Sept 2022

Six months

ended

30 Sept 2021

Year

ended

31 Mar 2022


£'000

£'000

£'000

Interest expense - property loans

(180)

(151)

(326)

Interest expense - bank and other

(8)

(6)

(4)

Total interest expense

(188)

(157)

(330)

 

 

5.  Tax Expense

 

The tax 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.

 

 

Six months

 ended

30 Sept 2022

Six months

ended

30 Sept 2021

Year

ended

31 Mar 2022


£'000

£'000

£'000

Current tax

(204)

(129)

(172)

Deferred tax

(93)

(51)

(73)

Total

(297)

(180)

(245)

 

 

 

6.  Earnings/ NAV Per Share

 

The basic earnings per ordinary share is calculated on the profit on ordinary activities after taxation and after excluding 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 2022

Six months

ended

30 Sept 2021

Year

 ended

31 Mar 2022

Basic earnings/ (loss) per share

1.86p

5.85p

6.14p

Diluted earnings/ (loss) per share

1.83p

5.72p

6.01p

 

The following number of shares have been used to calculate basis and diluted earnings per share, net assets per share and adjusted net assets per share:


Six months

ended

30 Sept 2022

Six months

ended

30 Sept 2021

Year

 ended

31 Mar 2022


Number

Number

Number

Weighted average number of Ordinary shares in issue (used for basic earnings per share calculation)

110,868,671

110,382,332

110,382,332

Number of share options

2,110,000

2,610,000

2,610,000

Total number of Ordinary shares used in the diluted earnings per share calculation

112,978,671

112,992,332

112,992,332

 

 



 

£'000

£'000

£'000

Basic earnings

2,065

6,457

6,779

Notional interest on share options assumed to be exercised

3

4

7

Diluted earnings/ (loss)

2,068

6,461

6,786

 

 

 

Six months

ended

30 Sept 2022

Six months

ended

30 Sept 2021

Year

 ended

31 Mar 2022

Net assets per share

40.44p

39.13p

40.00p

Adjusted net assets per share

48.34p

48.88p

47.28p

 

 

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

 

 

 

Six months

ended

30 Sept 2022

Six months

ended

30 Sept 2021

Year

 ended

31 Mar 2022


£'000

£'000

£'000

Net assets excluding Non-controlling interest

44,844

43,197

44,141

 

 



For adjusted net assets per share

£'000

£'000

£'000

Net assets excluding Non-controlling interests

44,844

43,197

44,141

Investment properties at fair value net of deferred taxes

2,102

2,305

2,486

Inventories at fair value net of deferred taxes

2,847

2,590

2,403

Investments in associates at fair value

4,506

6,753

4,016

Other items

323

381

381

Total

54,622

55,226

53,427

 

 

 

 

7.  Investment Properties

 

 

Six months

ended

30 Sept 2022

Year

 ended

31 Mar 2022

Six months

 ended

30 Sept 2021


£'000

£'000

£'000

1 April

23,849

22,456

22,456

Capital expenditure

81

1,642

1,333

Disposals

(1,723)

-

-

Depreciation

(14)

(30)

(3)

Impairment loss to an investment property

-

-

-

Foreign exchange translation

646

(219)

304

Total at end of period

22,839

23,849

24,090

 

Investment properties owned by the Group are stated at cost less depreciation and accumulated impairment losses. During the period the Group sold an investment property in Tureni, Romania for £3.05 million. The sale price represents a profit on disposal of £1.06 million after reflecting the costs of disposal.

 

 

8.  Inventory - Land and Buildings

 

 

 

Six months

ended

30 Sept 2022

Year

 ended

31 Mar 2022

Six months

 ended

30 Sept 2021


£'000

£'000

£'000

1 April

12,352

12,494

  12,494

Purchase including acquisition costs

7,443

-

-

Capital expenditure

92

119

132

Disposals

-

-

-

Depreciation

(33)

(157)

(55)

Foreign exchange translation

(132)

(104)

204

Total at end of period

19,722

12,352

12,775

 

 

During the period, the Group acquired a further 32.1% share in Blue Tower, an office building in Warsaw, taking its ownership in the building to 80.3% (31 March 2022: 48.2%). The consideration for this new investment is PLN 40.4 million (£7.2 million), payable in seven instalments over a six year period. The first instalment of PLN 6.0 million (£1.07 million) has been paid and ownership of the property transferred to the Group.

 

 

 

 

 

9.  Investments in associates and other financial investments

 


Six months ended

30 Sept 2022

Year

ended

31 Mar 2022

Six months

ended

30 Sept 2021

 

£'000

£'000

£'000

a) Associates

 



Cost of investment at beginning of period

19,135

18,577

18,577

Additions

757

-

-

Disposals

-

-

-

Repayment of shareholder loan

(175)

(48)

(31)

Share of associates profit/(loss) after tax 

117

(29)

234

Share of associates revaluation gains

-

876

42

Dividends received

-

(241)

(242)

Cost of investment at end of period

19,834

19,135

18,580

 

Additions of £757,000 represent the Groups increase in investment in Fprop Opportunities plc (£404,000), 5th Property Trading Ltd (£151,000), Fprop Cluj Ltd (£133,000) and Fprop Galeria Corso Ltd (£69,000).

 

 

 

Six months ended

30 Sept 2022

Year

ended

31 Mar 2022

Six months

ended

30 Sept 2021

 

£'000

£'000

£'000

Investments in associates

 



5th Property Trading Ltd

1,861

1,652

1,627

Fprop Galeria Corso Ltd

2,888

2,700

2,550

Fprop Krakow Ltd

1,578

1,580

1,648

Fprop Cluj Ltd

602

615

600

Fprop Phoenix Ltd

478

913

1,349

Fprop Opportunities plc

12,735

11,983

11,114


20,142

19,443

18,888

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

19,834

19,135

18,580

 

The withheld profit figure of £308,000 represents the removal of the percentage of intercompany profit resulting from the sale of the property in 2007 to 5th Property Trading Ltd (an associate). The figure will reduce when there is a reduction in the Group's stake in 5th Property Trading Ltd.

 

 

Six months ended

30 Sept 2022

Year

 ended

31 Mar 2022

Six months

ended

30 Sept 2021

 

£'000

£'000

£'000

b) Other financial investments

 



Cost of investment at 1 April

7,445

3,061

3,061

Additions

2

3,633

2

Repayments

(907)

(290)

-

Disposal

-

-

-

(Decrease)/ increase in fair value during the period

(1,047)

1,041

(14)

Cost of investment at end of period

5,493

7,445

3,049

 

The Group holds four unlisted investments in funds managed by it. Each is designated at fair value through "Other Comprehensive Income" (OCI) as per IFRS 9. The Directors' consider their fair value to not be materially different from their carrying value. Fair value has been calculated by applying the Group's percentage holding in the investments to the fair value of their net assets.

 

 

 

 

10.  Trade and Other Receivables

 


Six months ended

30 Sept 2022

Year

 ended

31 Mar 2022

Six months

ended

30 Sept 2021

 

£'000

£'000

£'000

Current assets

 



Trade receivables

1,168

1,003

953

Less provision for impairment of receivables

(96)

(73)

(260)

Trade receivables net

1,072

930

693

Other receivables 

3,587

2,299

3,253

Prepayments and accrued income 

1,454

1,100

973

Total at end of period

6,113

4,329

4,919

 

 



Non-current assets

 



Other receivables

-

95

293

 

The other receivables balance included in non-current assets of £nil (31 March 2022: £0.95 million) relates to the deferred consideration from the sale of an investment property located in Romania.

 

 

11.  Trade and Other Payables

 


Six months ended

30 Sept 2022

Year

 ended

31 Mar 2022

Six months

ended

30 Sept 2021

 

£'000

£'000

£'000

Current liabilities

 



Trade payables 

755

1,105

1,108

Other taxation and social security 

277

313

252

Other payables and accruals 

1,921

1,917

2,906

Deferred income

157

53

369

Total at end of period

3,110

3,388

4,635

 

 

12.  Provisions

 

 

Six months ended

30 Sept 2022

Year

 ended

31 Mar 2022

Six months

ended

30 Sept 2021

 

£'000

£'000

£'000

Current liabilities

773

922

1,767

 

The provision at 30 September 2022 represents a rent guarantee of £0.37 million (31 March 2022: £0.52 million) and fit out costs of £0.40 million (31 March 2022: £0.40 million). These provisions are in respect of the guarantee given as part of the sale of a property, Chałubińskiego 8 (CH8), which completed in April 2020.

 

As a condition of the sale the Group guaranteed the rental and service charge income up to some €1.20 million per annum for five years. In addition, the Group guaranteed fit-out costs on the residual vacant space up to some €1.50 million.

 

 

 

 

 

 

13.  Financial Liabilities

 


Six months ended

 30 Sept 2022

Year

 ended

31 Mar 2022

Six months

ended

30 Sept 2021

 

£'000

£'000

£'000

Current liabilities

 



Bank loans

5,648

4,212

1,316

Total at end of period

5,648

4,212

1,316


 



Non-current liabilities

 



Bank loans

7,114

9,309

13,173

Total at end of period

7,114

9,309

13,173

 

 



Total obligations under financial liabilities 

 



Repayable within one year

5,648

4,212

1,316

Repayable within one and five years

6,629

7,364

6,835

Repayable after five years

485

1,945

6,338

Total at end of period

12,762

13,521

14,489

 

Five bank loans (all denominated in Euros) totalling £12.76 million (31 March 2022: £13.52 million), included within financial liabilities, are secured against investment properties owned by the Group and one property owned by the Group shown under inventories. These bank loans are otherwise non-recourse to the Group's assets.

 

 

14.  Other Financial Liabilities

 

 


Six months ended

 30 Sept 2022

Year

 ended

31 Mar 2022

Six months

ended

30 Sept 2021

 

£'000

£'000

£'000

a) Current liabilities

 



Other financial liabilities

907

-

-

Total at end of period

907

-

-


 



b) Non-current liabilities

 



Other financial liabilities

15,863

10,141

10,314

Total at end of period

15,863

10,141

10,314

 

 



c) Total obligations under financial liabilities 

 



Repayable within one year

907

-

-

Repayable within one and five years

14,159

10,141

10,314

Repayable after five years

1,704

-

-

Total at end of period

16,770

10,141

10,314

 

 

 

Non-current liabilities represents a balance of €12.00 million which was a result of the restructuring of a finance lease secured against the office tower in Gdynia. The restructuring resulted in the amount owed to ING bank in final settlement reducing by €9.00 million (£7.81 million). As part of the deal, the Group acquired the freehold of the property for €16.00 million of which €4.00 million has been paid and €12.00 million is payable in the financial year ended 31 March 2025. No interest is payable on this non-current liability.

 

Non-current liabilities also represent t he Group's new investment in Blue Tower, Warsaw, which was financed by deferred consideration of PLN 40.4 million (£7.44 million). This liability, which is non-interest bearing, is payable in seven instalments over six years. The first instalment of PLN 6.0 million (£1.07 million) was paid in September 2022.

 

 

15.  Financial Liabilities: Interest Rate Profile

 

The interest rate profile of the Group's financial liabilities is as follows:

 


Floating rate

financial

liabilities

Fixed rate

financial

liabilities

Non-

interest

bearing

Total

 


£'000

£'000

£'000

£'000

Financial liabilities

12,575

187

-

12,762

Other financial liabilities

-

-

16,770

16,770

At 30 September 2022

12,575

187

16,770

29,532

 

 

 

 

 

Financial liabilities

10,109

3,412

-

13,521

Other financial liabilities

-

-

10,141

10,141

At 31 March 2022

10,109

3,412

10,141

23,662

 

The total financial liability, £29.53 million, comprises non-interest bearing loan of £16.77 million (57% of total), fixed interest loans of £0.19 million (1% of total), floating interest loans of £12.57 million (42% of total).

 

 

 

 

 

 

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 news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR KVLFLLFLEFBK
UK 100

Latest directors dealings