Interim Results
Gresham House PLC
25 September 2002
GRESHAM HOUSE plc
CHAIRMAN'S INTERIM STATEMENT
Dear Shareholder,
The results for the half year ended 30th June, 2002 show a return on ordinary
activities after tax for the Revenue account of £430,000, compared with £522,000
for the comparable period last year and, not unexpectedly, a loss of £1.767m for
the Capital account.
Revenue streams have remained steady with the comparable period last year,
although there has been a decrease in interest received as a result of generally
falling rates and lower cash balances being held throughout the period. Rental
income has also fallen slightly as a result of vacant units being refurbished,
which will be fully recouped when the units are re-let. These shortfalls in
gross revenues have however, been largely offset by lower operating costs.
As shareholders will appreciate all major stock exchanges have performed
adversely throughout the period under review. This has also affected our
portfolio and in particular Transense Technologies plc. We still believe that
the longer term prospects for this investment remain attractive. I am pleased to
report that Image Scan Holdings plc has performed well since its introduction to
AIM in April, 2002 and shows a substantial increase on our original investment.
The overall net effect in the period is that the basic Net Asset Value per
ordinary share has decreased from 552.2p to 518.9p, a fall of 6.0% compared with
a fall in the FT 100 Index for the same period of 11.1%.
Your Board continues to seek out innovative early stage investments in companies
which appear to have real growth prospects in the longer term.
A P Stirling
Chairman 24th September, 2002.
GRESHAM HOUSE plc
INTERIM RESULTS 2002
UNAUDITED CONSOLIDATED STATEMENT OF TOTAL RETURN
for the Half Year ended 30th June, 2002
Six months to Six months to Year ended
30th June, 2002 30th June, 2001 31st December, 2001
(Unaudited) (Unaudited) (Audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£' 000 £' 000 £' 000 £' 000 £'000 £' 000 £' 000 £' 000 £' 000
(Losses)/gains
on Investments - (1,767) (1,767) - 529 529 - (2,270) (2,270)
Income:
Dividend and
Interest
Income 135 - 135 251 - 251 557 - 557
Rental Income 1,473 - 1,473 1,573 - 1,573 3,008 - 3,008
Other
operating
income 157 - 157 193 - 193 933 - 933
1,765 (1,767) (2) 2,017 529 2,546 4,498 (2,270) 2,228
Other
expenses (606) (606) (791) (791) (1,019) - (1,019)
Net return
before
finance costs
and taxation 1,159 (1,767) (608) 1,226 529 1,755 3,479 (2,270) 1,209
Interest
payable and
similar
charges (729) - (729) (704) - (704) (1,277) - (1,277)
Return on
ordinary
activities
before
taxation 430 (1,767) (1,337) 522 529 1,051 2,202 (2,270) (68)
Taxation - - - - - - -
Return on
ordinary
activities
after
taxation
attributable
to equity
shareholders 430 (1,767) (1,337) 522 529 1,051 2,202 (2,270) (68)
Dividend -
Equity shares - - - - - - (136) - (136)
Transfer to
reserves 430 (1,767) (1,337) 522 529 1,051 2,066 (2,270) (204)
Basic return
per Ordinary
Share 9.8p (40.4)p (30.6)p 12.1p 12.3p 24.4p 50.8p (52.3)p (1.5)p
Diluted
return per
Ordinary
Share 9.3p (40.4)p (31.1)p 11.5p 11.7p 23.2p 47.8p (52.3)p (4.5)p
Statement of Total Recognised Gains and Losses
30th June 30th June 31st December
2002 2001 2001
£'000 £'000 £'000
Profit for the financial period 430 522 2,202
Net movement on capital reserves (1,767) 529 (2,270)
Revaluation of investment properties - - 235
(1,337) 1,051 167
Notes
(i) The revenue column of this statement is the consolidated profit and loss account of the group.
(ii) All revenue and capital items in the above statement derive from continuing operations.
(iii) Since the capital return for the period ended 30th June, 2002 and the year ended 31st December, 2001 was a
loss, there is no dilution applicable to the capital return per share for the period or year.
GRESHAM HOUSE plc
INTERIM RESULTS 2002
UNAUDITED CONSOLIDATED BALANCE SHEET
as at 30th June, 2002
30th June, 2002 30th June, 2001 31st December, 2001
(Unaudited) (Unaudited) Audited
£'000 £'000 £'000
Investments
Securities 7,958 12,463 10,203
Properties 29,455 27,131 28,883
Tangible assets 393 413 406
37,806 40,007 39,492
Current assets 7,815 10,181 7,315
Creditors - amounts falling due
within one year 4,408 9,628 3,771
Net current assets 3,407 553 3,544
Total assets less current liabilities 41,213 40,560 43,036
Creditors - amounts falling due
after more than one year 18,132 15,420 18,671
Deferred income 245 - 245
22,836 25,140 24,120
Capital and reserves
Called up share capital (Note 5) 1,100 1,092 1,092
Share premium account 287 242 242
Other reserves
Revaluation reserve 8,064 7,829 8,064
Capital reserve - realised 22,879 22,934 22,875
Capital reserve - unrealised 1,197 5,708 2,968
Revenue reserves (10,691) (12,665) (11,121)
Equity shareholders' funds 22,836 25,140 24,120
Basic Net Asset Value per ordinary share 518.9p 575.5p 552.2p
Diluted Net Asset Value per ordinary share 489.4p 548.4p 519.9p
GRESHAM HOUSE plc
INTERIM RESULTS 2002
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
for the Half Year to 30th June, 2002
6 months to 6 months to 12 Mths to
30th June, 2002 30th June, 2001 31st December, 2001
(Unaudited) (Unaudited) Audited
£'000 £'000 £'000
Cashflow from operating activities
Investment income received 71 31 92
Interest received 64 194 464
Rental income received 1,937 1,492 2,742
Other cash payments (916) (1,320) (656)
Net cash inflow from operating
activities (Note 2) 1,156 397 2,642
Returns on investment and servicing of finance
Interest paid on 2.5% Secured Redeemable
Loan Stock 2001 (9) (76) (177)
Interest paid on 8% Secured Redeemable
Loan Stock 2006 (92) - -
Interest paid on property loans (711) (751) (1,246)
Net cash outflow from investments
and servicing of finance (812) (827) (1,423)
Capital expenditure and financial investment
Sale of tangible fixed assets 10 253 63
Purchase of investments (855) (3,843) (6,244)
Sale of investments 1,333 540 2,426
Net loans repaid 472 54 192
Purchase of investment properties (572) (51) (1,477)
Government grants received - - 245
Sale of investment properties - 651 560
Purchase of developments in hand (134) (224) (46)
Net cash inflow/(outflow) from capital
Expenditure and financial investment 254 (2,620) (4,281)
Corporation tax paid - - -
Equity dividends paid (136) (64) (64)
Cash inflow/(outflow) before use of liquid
resources and financing 462 (3,114) (3,126)
Management of liquid resources
Acquisition of listed securities held for
dealing (50) (186) (181)
Financing
Repayment of loans (542) (323) (6,367)
Receipt of loans 1,209 - 3,662
Share capital issued 53 19 19
Net cash inflow/(outflow) from financing 720 (304) (2,686)
Increase/(decrease) in cash 1,132 (3,604) (5,993)
RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
6 months to 6 months to 12 Mths to
30th June, 2002 30th June, 2001 31st December, 2001
(Unaudited) (Unaudited) Audited
£'000 £'000 £'000
Retained profit for the period 430 522 2,066
Revaluation surplus - - 235
Net movement on capital reserves (1,767) 529 (2,270)
Issue of ordinary shares 53 19 19
(1,284) 1,070 50
Shareholders' funds at beginning of period 24,120 24,070 24,070
Shareholders' funds at end of period 22,836 25,140 24,120
GRESHAM HOUSE plc
INTERIM RESULTS 2002
NOTES TO THE INTERIM STATEMENT
for the Half Year ended 30th June, 2002
1 Basis of preparation
(a) The interim statement has been prepared in accordance with the accounting policies as set out in the
Group's Report and Accounts for the year ended 31st December, 2001.
(b) The interim statement is neither audited nor reviewed. The figures for the year ended 31st December, 2001
do not comprise statutory accounts for the purpose of section 240 of the Companies Act 1985 and have been
extracted from the Group's full accounts for that year, which received an unqualified Auditors' Report and
which did not contain a statement under section 237(2) or (3) of the Companies Act 1985.
The accounts have been filed with the Registrar of Companies.
(c) In accordance with the Company's accounting policies the above figures take into account the results of
significant investments only to the extent of dividends received amounting to £1,717 (2001: £1,717).
6 months to 6 months to 12 mths to
30th June, 2002 30th June, 2001 31st December, 2001
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
2 Reconciliation of operating profit to operating cash flows.
Return on ordinary activities before taxation 430 522 2,202
Interest payable 729 704 1,277
1,159 1,226 3,479
Depreciation 3 9 17
Profit on sale of tangible fixed assets - (189) -
Loan provision written back - - (130)
Adjustment on disposal of subsidiary - - (24)
Decrease/(increase) in debtors 344 (388) (103)
Decrease in creditors (350) (261) (597)
Net cash flow from operating activities 1,156 397 2,642
3 Reconciliation of net cash flow to movement in net debt
Increase/(decrease) in cash for the period 1,132 (3,604) (6,083)
Cash outflow from repayment of debt 542 323 6,457
Cash inflow from loans received (1,209) - (3,662)
Cash outflow/(inflow) from increase/(decrease)
in liquid resources 50 186 181
Movement in net debt in the period 515 (3,095) (3,107)
Net debt at beginning of period (17,053) (13,946) (13,946)
Balance at end of period (16,538) (17,041) (17,053)
4 Analysis of net debt
At 1st Cash Other At 30th
January flow non-cash June
2002 changes 2002
£'000 £'000 £'000 £'000
Cash in hand and at bank / brokers 2,724 1,132 3,856
Debt due within one year (1,416) (667) (539) (2,622)
Debt due after one year (18,671) - 539 (18,132)
465
Current asset investments 310 50 360
(17,053) 515 - (16,538)
5 Called up share capital
During the period under review 23,000 share options were exercised at par under the Unapproved Share Option Scheme
and, in addition, 10,146 ordinary shares were issued at 470p under the terms of the 8% Secured
Redeemable Loan Stock 2006. The allotted share capital was therefore increased by 33,146 ordinary shares.
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