Final Results

GRESHAM HOUSE PLC PRELIMINARY FINANCIAL STATEMENT YEAR ENDED 31 DECEMBER 2006 Gresham House plc (GHE.L), the property and early-stage investment trust, today announces its preliminary results for the year ended 31st December 2006. Highlights * Market value of property portfolio up £6.3 million to £40.5 million * Value of the investment securities up by £571,000 (at £13.3 million) despite net reduction of investments during period of £924,000. * Capital account up by £5,753,000 delivering a two year gain on the capital account of £13,152,000. * Revenue account profit for year of £669,000 against £140,000 for 2005. * Net asset value at 31st December 2006 was 902.4p against a figure of 775.7p at the end of 2005 representing a two year rise in basic net asset value of 44%. * Planning applications being sought on sites in Dorking and Speke. * Board recommends a final dividend of 6p per share against 5p for 2005. Fred Stirling, Chairman of Gresham House plc, commented: "We are looking forward to increased performances from a number of our AIM quoted investments and the introduction of three of our unquoted investments onto PLUS Market or AIM. This, together with the present planning opportunities in the property portfolio encourages the Board to feel confident in the continued material growth of your Company for the foreseeable future." The Company celebrates its 150th anniversary since incorporation on 14th May 1857. - ends - Further information: Fred Stirling (Chairman Gresham House) 020 7588 7352 Toby Hall/Jade Mamarbachi (gth media relations) 020 7153 8039/8035 GRESHAM HOUSE PLC PRELIMINARY FINANCIAL STATEMENT YEAR ENDED 31 DECEMBER 2006 CHAIRMAN'S STATEMENT Dear Shareholder, The results for the year to 31st December 2006 show a second consecutive year of significant improvement to the net asset value of the company. The revenue account showed a profit of £669,000 (2005: £140,000) whilst the capital account rose by £5,753,000 making a gain over the last two years on the capital account of £13,152,000. As a consequence the net asset value at 31st December 2006 was 902.4p against a figure of 775.7p at the end of 2005. This represents a two year rise in basic net asset value of 44% Our significant property investment in Speke, made in October 2004, commenced generating rental income in the year. Total space let rose to 35% by the year end and further negotiations are continuing with potential tenants. We are confident of the long term success of this investment which we expect to further enhance net asset value in future years. The current market value of the Group's property portfolio has risen from £34.2 million as at 31st December 2005 to £40.5 million at the end of 2006. This increase reflects the transfer of an existing property from current assets to property investments, a surplus on revaluation of the property portfolio as at the year end, and expenditure on existing properties during the year less the insurance proceeds from the property at Knowsley damaged by fire. Completion of the rebuild of this latter property is expected to be in the second half of the current year. Our site in Vincent Lane, Dorking has been included in the Accounts based on existing use value of £2.9 million. However we have agreed in principle to sell this site to a leading residential development company, conditional on residential planning being obtained, for the sum of £8.2 million. A successful planning application is expected to be obtained within two years. During the year we acquired, for a nominal consideration, a 35% equity interest in an eleven acre site on Speke Boulevard, immediately adjacent to our existing eighteen acre Speke site held within New Capital Developments Ltd. We have an option to increase this stake to between 52.5% and 55% during the course of the next two years in consideration for arranging the refinancing of an existing loan in the JV company of approximately £1.8 million. It is your Board's intention to seek planning permission for these two sites and should your Company be successful in obtaining an application for change of use to A1 Retail, there will be a very significant increase in the value of your Group's interest. Since the year end we have sold our interest in a seven acre sports field at Speke for £2.3 million which had been acquired in 2004 for £1.5 million. Last year I explained the benefits of demerging the Group's property portfolio into a Real Estate Investment Trust (REIT). Unfortunately this plan has not been able to be progressed since, as reported to shareholders in an announcement dated 6th February this year, Parkwood Property Group LLP, who purchased 29.9% of your Company's shares in November 2006, have indicated that they would not support any resolution to demerge the Group's property interest into a REIT, such a resolution requiring a 75% majority vote. As shareholders can see from page 29 of the Accounts the value of the investment securities in the portfolio has increased over the year by £571,000, this being after a net reduction of investments in the portfolio during the year of £924,000. The principle performers from the portfolio during the year were SpaceandPeople, Image Scan Holdings, InvestinMedia, Plus Markets Group, Egdon Resources and Welsh Industrial Investment Trust. Since the year end Hallin Marine, Image Scan Holdings, SpaceandPeople and Transense Technologies have each outperformed the FTSE share index. In addition, Mount Burgess Mining has just announced that it has received an independent report indicating significant realisable base metal resources which could amount to an in-ground gross value in the order of US$981 million. In the event this proves correct, your Company's 4.5% holding in Mount Burgess, which cost £351,000, should materially increase in value. We are looking forward to increased performances from a number of our AIM quoted investments and the introduction of three of our unquoted investments onto PLUS Market or AIM. This, together with the present planning opportunities in the property portfolio referred to above, encourages the Board to feel confident in the continued material growth of your Company for the foreseeable future. We are therefore pleased to recommend a final dividend of 6p per share against 5p last year. We are proposing to hold the Annual General Meeting shortly after your Company's 150th anniversary since incorporation on 14th May 1857. We believe we are the oldest listed company on the London Stock Exchange and your Board looks forward to meeting any shareholder who would care to attend the Annual General Meeting following which we would like you to join us in a toast to celebrate our Company's unique achievement. 18th April 2007 A.P Stirling Chairman GRESHAM HOUSE PLC PRELIMINARY FINAL STATEMENT UNAUDITED CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2006 2006 2005 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Income: Dividend and Interest income 346 - 346 329 - 329 Rental income 2,664 - 2,664 2,098 - 2,098 Other operating income 276 - 276 323 - 323 ----- ----- ----- ----- ----- ----- Total Revenue 3,286 - 3,286 2,750 - 2,750 Gains on investments held at fair value - 1,495 1,495 - 2,824 2,824 Movement in fair value of property investments - 5,286 5,286 - 6,144 6,144 ----- ----- ----- ----- ----- ----- 3,286 6,781 10,067 2,750 8,968 11,718 ----- ----- ----- ----- ----- ----- Expenses Other operating expenses (1,640) - (1,640) (1,691) - (1,691) Finance costs (1,213) - (1,213) (1,151) - (1,151) ----- ----- ----- ----- ----- ----- (2,853) - (2,853) (2,842) - (2,842) ----- ----- ----- ----- ----- ----- Profit/(loss) before taxation 433 6,781 7,214 (92) 8,968 8,876 Taxation 17 128 145 - (1,240) (1,240) ----- ----- ----- ----- ----- ----- Profit/(loss) for the year 450 6,909 7,359 (92) 7,728 7,636 ===== ===== ===== ===== ===== ===== Attributable to:- Equity holders of the parent 669 5,753 6,422 140 7,399 7,539 Minority interest (219) 1,156 937 (232) 329 97 ----- ----- ----- ----- ----- ----- 450 6,909 7,359 (92) 7,728 7,636 ===== ===== ===== ===== ===== ===== Basic earnings per ordinary Share 131.7p 154.8p ===== ===== Diluted earnings per ordinary Share 131.4p 154.7p ===== ===== Notes (i) The revenue column of this statement is the consolidated profit and loss account of the group. (ii) Dividends - Ordinary shares: proposed final dividend of 6p per share (2005: 5p) payable on 22 June 2007 to shareholders on the register at 25 May 2006 293 244 ===== ===== (iii)The summary of results for the year ended 31 December 2006 does not constitute statutory accounts within the meaning of s240 of the Companies Act 1985. The full statutory accounts which will be available to shareholders by 3 May 2006 have not been reported on by the Company's auditors and have not been delivered to the Registrar of Companies. Full accounts in respect of the year ended 31 December 2005 have been delivered to the Registrar of Companies and the Auditor's Report on those accounts was unqualified. (iv)Basic earnings per ordinary share are based on the return attributable to equity shareholders of £6,422,000 (2005: £7,539,000), and on 4,874,587 (2005: 4,870,716) ordinary shares being the weighted average number of those in issue during the year. The diluted earnings per ordinary share is based on the return attributable to equity shareholders of £6,422,000 (2005:£7,539,000)and on 4,887,061 (2005: 4,870,628) shares being the weighted average number of shares in issue during the year together with 12,474 (2005: 3,912) shares deemed to have been issued at nil consideration as a result of options granted or pursuant to the terms of the 8% Secured Loan Stock issued by Gresham House Finance plc. GRESHAM HOUSE PLC PRELIMINARY FINAL STATEMENT UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY YEAR ENDED 31 DECEMBER 2006 Ordinary Share share Share based Capital Retained capital premium payments reserve earnings Total £'000 £'000 £'000 £'000 £'000 £'000 Balance at 31 Dec 2005 1,218 822 12 44,155 (8,401) 37,806 Profit for the period - - - 5,753 669 6,422 Ordinary dividend paid - - - - (244) (244) Issue of shares 1 9 - - - 10 Share based payments - - 16 - 1 17 ------ ------ ------ ------ ------ ------ Balance at 31 Dec 2006 1,219 831 28 49,908 (7,975) 44,011 ====== ====== ====== ====== ====== ====== YEAR ENDED 31 DECEMBER 2005 Ordinary Share share Share based Capital Retained capital premium payments reserve earnings Total £'000 £'000 £'000 £'000 £'000 £'000 Balance at 31 Dec 2004 1,212 761 - 36,756 (8,346) 30,383 Profit for the period - - - 7,399 140 7,539 Ordinary dividend paid - - - - (195) (195) Issue of shares 6 61 - - - 67 Share based payments - - 12 - - 12 ------ ------ ------ ------ ------ ------ Balance at 31 Dec 2005 1,218 822 12 44,155 (8,401) 37,806 ====== ====== ====== ====== ====== ====== GRESHAM HOUSE PLC PRELIMINARY FINAL STATEMENT UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2006 2006 2005 Assets £'000 £'000 Non current assets Investments held at fair value 13,345 12,774 Property investments 40,469 34,226 Property, plant and equipment 500 512 ------ ------ Total non current assets 54,314 47,512 ------ ------ Current assets Trade and other receivables 568 389 Accrued income and prepaid expenses 342 1,170 Other current assets 5,607 8,904 Cash and cash equivalents 991 863 ------ ------ 7,508 11,326 ------ ------ Total assets 61,822 58,838 ------ ------ Current liabilities Trade and other payables 1,498 2,615 Short term borrowings 6,765 9,549 Current tax payable - 17 ------ ------ Total current liabilities 8,263 12,181 ------ ------ Total assets less current liabilities 53,559 46,657 Non current liabilities Long term borrowings 6,337 6,449 Deferred taxation 1,503 1,631 ------ ------ 7,840 8,080 ------ ------ Net assets 45,719 38,577 ====== ====== Capital and reserves Ordinary share capital 1,219 1,218 Share premium 831 822 Share based payments 28 12 Capital reserve 49,908 44,155 Retained earnings (7,975) (8,401) ------ ------ Equity attributable to equity shareholders 44,011 37,806 Minority interest 1,708 771 ------ ------ Total equity 45,719 38,577 ====== ====== Basic net asset value per ordinary share 902.4p 775.7p ====== ====== Diluted net asset value per ordinary share 900.1p 775.1p ====== ====== Notes Basic net asset value per ordinary share is based on equity attributable to equity shareholders at the year end and on 4,876,880 (2005: 4,873,880) ordinary shares being the number of ordinary shares in issue at the year end. Diluted net asset value per ordinary share is based on equity attributable to equity shareholders at the year end and on 4,889,354 (2005: 4,877,792)ordinary shares. The number of shares is based upon the number of shares in issue at the year end together with 12,474(2005: 3,912) shares deemed to have been issued at nil consideration as a result of options granted or pursuant to the maximum number of shares that can be issued under the terms of the 8% Secured Loan Stock issued by Gresham House Finance plc. GRESHAM HOUSE PLC PRELIMINARY FINAL STATEMENT UNAUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2006 2006 2006 2005 2005 £'000 £'000 £'000 £'000 Cashflow from operating activities Investment income received 180 117 Interest received 166 212 Rental income received 2,530 2,145 Other cash payments (1,958) (1,235) ------ ------ Net cash generated from operations 918 1,239 Interest paid on 8% Secured Redeemable Loan Stock 2006 (342) (293) Interest paid on property loans (929) (754) ------ ------ (1,271) (1,047) ------ ------ Net cash flows from operating activities (353) 192 Cash flows from investing activities Purchase of investments (1,693) (2,295) Sale of investments 2,617 1,106 Purchase of investment properties (490) (1,532) Insurance proceeds received 3,700 - Disposal of investment properties - 105 Purchase of developments in hand (523) (652) ------ ------ 3,611 (3,268) Cash flows from financing activities Repayment of loans (2,360) (3,484) Repayment of 8% Loan Stock (3,662) - Receipt of loans 3,126 321 Share capital issued 10 67 Equity dividends paid (244) (195) ------ ------ (3,130) (3,291) Increase/(Decrease) in cash and cash ------ ------ equivalents 128 (6,367) Cash and cash equivalents at start of period 863 7,230 Cash and cash equivalents at end of ------ ------ period 991 863 ====== ====== NOTES TO THE CONSOLIDATED CASHFLOW STATEMENT RECONCILIATION OF OPERATING PROFIT TO OPERATING CASH FLOWS 2006 2005 £'000 £'000 Revenue return before taxation 433 (92) Interest payable 1,213 1,151 Share based payments 17 12 Depreciation of property, plant and equipment 12 13 ------ ------ 1,675 1,084 Decrease/(increase) in current assets 300 (140) (Decrease)/increase in current liabilities (1,057) 295 ------ ------ 918 1,239 ====== ====== GRESHAM HOUSE PLC PRELIMINARY FINAL STATEMENT UNAUDITED SEGMENTAL REPORTING Property Investment Investment Elimination Consolidated 2006 2005 2006 2005 2006 2005 2006 2005 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Revenue External income 369 390 2,751 2,148 - - 3,120 2,538 Inter - segment income 1,920 1,556 335 120 (2,255) (1,676) - - ----- ----- ----- ----- ----- ----- ----- ----- Total revenue 2,289 1,946 3,086 2,268 (2,255) (1,676) 3,120 2,538 ===== ===== ===== ===== ===== ===== ===== ===== Gains on investments at fair value 1,495 2,824 - - - - 1,495 2,824 Gains on property investments at fair value - - 5,286 6,144 - - 5,286 6,144 Proceeds of disposal of investment properties - - - 2,050 - - - 2,050 Carrying value of disposal of investment properties - - - (2,050) - - - (2,050) ----- ----- ----- ----- ----- ----- ----- ----- Total income and gains 3,784 4,770 8,372 8,412 (2,255) (1,676) 9,901 11,506 ===== ===== ===== ===== ===== ===== ===== ===== Segment expenses 32 (115) (744) (805) - - (712) (920) ----- ----- ----- ----- ----- ----- ----- ----- Segment profit 3,816 4,655 7,628 7,607 (2,255) (1,676) 9,189 10,586 ===== ===== ===== ===== ===== ===== Unallocated corporate expenses (928) (771) ----- ----- Operating profit 8,261 9,815 Interest expense (1,213) (1,151) Interest income 166 212 ----- ----- Profit before taxation 7,214 8,876 ===== ===== All revenue is derived from operations within the United Kingdom.

Companies

Gresham House (GHE)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today