Interim Results
Gresham House PLC
27 September 2004
GRESHAM HOUSE plc
36 Elder Street, London E1 6BT
Telephone: 020 7588 7352, Facsimile: 020 7377 2946
CHAIRMAN'S INTERIM STATEMENT
The results for the half year ended 30th June, 2004 show a return on ordinary
activities after tax for the Revenue account of £509,000, compared with £279,000
for the comparable period last year and a small loss of £2,000 for the Capital
account compared with a loss of £176,000 for the same period last year. Overall
this has resulted in a basic return per ordinary share of 10.6p against 2.3p for
the comparable period last year.
Income streams in total have remained constant compared with the similar period
last year. Whilst there has been a significant increase of £306,000 in rental
income this has been offset by a similar fall in other operating income,
particularly construction activities. These activities however also account for
the majority of the decrease in Other expenses.
Improvements to the property portfolio have continued during the period under
review and since the property revaluation has only recently been undertaken, it
has been considered prudent to set these costs of £195,000 against revaluation
reserves. As a result diluted net asset value has increased to 573.0p from
568.3p as at the beginning of the period, an increase of 0.8% compared with an
almost identical increase of 0.9% in the FTSE All Share Index.
In my statement at the year end I reported that it was the Board's intention to
selectively dispose of part of the property portfolio during 2004. We are
currently in advanced negotiations which I believe will result in the disposal
of a significant part of the property portfolio in the near future. As soon as
this has been achieved the appropriate announcement will be made.
Your Board continues with its strategy of seeking innovative early stage
investments in companies that have a real prospect of high growth and the
development of the property portfolio.
A P Stirling
Chairman
27th September, 2004.
GRESHAM HOUSE plc
INTERIM RESULTS 2004
UNAUDITED CONSOLIDATED STATEMENT OF TOTAL RETURN
for the Half Year ended 30th June, 2004
Six months to Six months to Year ended
30th June, 2004 30th June, 2003 31st December, 2003
(Unaudited) (Unaudited) (Audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£' 000 £' 000 £' 000 £' 000 £' 000 £' 000 £' 000 £' 000 £' 000
(Loss)/gains
on Investments - (2) (2) - (176) (176) - 2 2
Income:
Dividend and
Interest
Income 84 - 84 114 - 114 234 - 234
Rental
Income 1,811 - 1,811 1,505 - 1,505 3,193 - 3,193
Other
operating
income 71 - 71 331 - 331 444 - 444
------- ------ ----- ------- ------ ------- ------- ------ -----
1,966 (2) 1,964 1,950 (176) 1,774 3,871 2 3,873
Other
expenses (703) - (703) (940) - (940) (1,204) - (1,204)
------- ------ ----- ------- ------ ------- ------- ------ -----
Net return
before finance
costs and
taxation 1,263 (2) 1,261 1,010 (176) 834 2,667 2 2,669
Interest
payable and
similar
charges (720) - (720) (731) - (731) (1,458) - (1,458)
------- ------ ----- ------- ------ ------- ------- ------ -----
Return on
ordinary
activities
before
taxation 543 (2) 541 279 (176) 103 1,209 2 1,211
Taxation - - - - - - - -
------- ------ ----- ------- ------ ------- ------- ------ -----
Return on
ordinary
activities
after
taxation 543 (2) 541 279 (176) 103 1,209 2 1,211
Minority
Interest (34) - (34) - - - (56) - (56)
------- ------ ----- ------- ------ ------- ------- ------ -----
Return
attributable to
equity
shareholders 509 (2) 507 279 (176) 103 1,153 2 1,155
Dividend -
Equity shares - - - - - - (149) - (149)
------- ------ ----- ------- ------ ------- ------ ------ -----
Transfer to
reserves 509 (2) 507 279 (176) 103 1,004 2 1,006
======= ====== ===== ======= ====== ======= ====== ====== =====
Basic return
per Ordinary
Share 10.6p - 10.6p 6.2p (3.9)p 2.3p 25.1p - 25.1p
====== ====== ===== ====== ====== ======= ====== ====== =====
Diluted return
per Ordinary
Share 10.6p - 10.6p 6.0p (3.8)p 2.2p 24.9p - 24.9p
====== ====== ===== ====== ====== ======= ====== ====== =====
Statement of Total Recognised Gains and Losses
30th June 30th June 31st December
2004 2003 2003
£'000 £'000 £'000
Profit for the
financial period 509 279 1,153
Net movement on
capital reserves (2) (176) 2
Surplus and write
back of
impairment
on property
revaluation (195) - 5,298
Minority interest
in reserves - - (1,006)
----- ---- ------
312 103 5,447
===== ==== ======
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.
GRESHAM HOUSE plc
INTERIM RESULTS 2004
UNAUDITED CONSOLIDATED BALANCE SHEET
as at 30th June, 2004
30th June, 2004 30th June, 2003 31st December, 2003
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Investments
Securities 6,887 6,234 6,746
Properties 37,200 31,666 37,200
Tangible assets 531 391 539
----- ------ ------
44,618 38,291 44,485
------ ------ -----
Current assets 7,616 7,779 8,397
Creditors - amounts falling
due within one year 5,593 5,496 6,350
----- ------ ------
Net current assets 2,023 2,283 2,047
------ ------ -----
Total assets
less current
liabilities 46,461 40,574 46,532
Creditors - amounts falling
due after more
than one year 17,658 18,452 18,013
Deferred income 245 245 245
----- ------ ------
28,738 21,877 28,274
====== ====== =====
Capital and reserves
Called up share capital (Note 5) 1,202 1,151 1,189
Share premium account 659 453 554
Other reserves
Revaluation reserve 12,605 8,064 12,800
Capital reserve -
realised 22,727 22,425 22,671
Capital reserve -
unrealised (228) (256) (170)
Revenue reserves (9,323) (9,960) (9,832)
----- ------ ------
Shareholders' funds 27,642 21,877 27,212
Minority interests 1,096 - 1,062
----- ------ ------
28,738 21,877 28,274
====== ====== =====
Basic Net Asset Value
per ordinary share 574.7p 475.2p 572.3p
====== ====== =====
Diluted Net Asset Value
per ordinary share 573.0p 461.4p 568.3p
====== ====== =====
GRESHAM HOUSE plc
INTERIM RESULTS 2004
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
for the Half Year ended 30th June, 2004
6 months to 6 months to 12 months to
30th June, 2004 30th June, 2003 31st December,
2003
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Cashflow from operating
activities
Investment
income
received 61 81 133
Interest
received 23 33 101
Rental income
received 1,663 1,477 2,990
Other cash
payments (745) (121) (316)
--------- -------- ----------
Net cash
inflow from
operating
activities
(Note 2) 1,002 1,470 2,908
========= ======== ==========
Returns on investment and
servicing of finance
Interest paid on 8% Secured
Redeemable
Loan Stock 2006 (146) (146) (293)
Interest paid
on property loans (795) (577) (1,148)
Net cash outflow from
investments --------- -------- ----------
and servicing
of finance (941) (723) (1,441)
========= ======== ==========
Capital expenditure and
financial investment
Sale of
tangible fixed assets - 6 6
Purchase of
tangible fixed
assets - (19) (19)
Purchase of
investments (971) (557) (1,415)
Sale of
investments 828 795 1,320
Net loans
repaid/(advanced) 348 (51) -
Purchase
of/improvements to
investment properties (195) (690) (1,039)
Purchase of
developments
in hand (145) (146) (2,392)
Net cash outflow from
capital --------- -------- ----------
expenditure
and financial
investment (135) (662) (3,539)
========= ======== ==========
Corporation tax paid - - -
========= ======== ==========
Equity dividends paid (148) (141) (142)
========= ======== ==========
Cash outflow before use of
liquid resources
and financing (222) (56) (2,214)
========= ======== ==========
Management of liquid
resources
Acquisition of
listed securities
held for dealing (87) (261) (335)
========= ======== ==========
Financing
Repayment of
loans (457) (391) (889)
Receipt of
loans 74 199 1,797
Share capital
issued 118 132 271
--------- -------- ----------
Net cash
inflow/(outflow) from
financing (265) (60) 1,179
========= ======== ==========
Decrease in cash (574) (377) (1,370)
========= ======== ==========
GRESHAM HOUSE plc
INTERIM RESULTS 2004
RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
Six months to Six months to 12 months to
30th June, 2004 30th June, 2003 31st December, 2003
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Retained profit for the
period 509 279 1,004
Surplus and write back of
impairment on property
revaluation (195) - 5,298
Net movement on capital
reserves ( 2) (177) 2
Exercise of options to
subscribe for share capital 118 132 271
Minority interest in
reserves - - (1,006)
----- ----- ------
430 234 5,569
Shareholders' funds at
beginning of period 27,212 21,643 21,643
----- ----- ------
Shareholders' funds at end
of period 27,642 21,877 27,212
===== ===== ======
GRESHAM HOUSE plc
INTERIM RESULTS 2003
NOTES TO THE INTERIM STATEMENT
for the Half Year ended 30th June, 2004
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, 2003.
(b) The interim statement is neither audited nor reviewed. The figures for
the year ended 31st December, 2003 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 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 (2003: £1,717).
Six months to Six months to 12 months to
30th June, 2004 30th June, 2003 31st December,
2003
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
2.Reconciliation of operating profit to operating cash flows
Return on ordinary
activities before
taxation 543 279 1,209
Interest payable 720 731 1,458
------ ------ ------
1,263 1,010 2,667
Depreciation 8 4 9
Loan provision written
back - - (40)
Decrease/(increase) in
debtors 74 (611) 64
(Decrease)/increase in
creditors (343) 1,067 208
------ ------ ------
Net cash flow from
operating activities 1,002 1,470 2,908
====== ====== ======
3. Reconciliation of net cash flow to movement in net debt.
Decrease in cash for
the period (574) (377) (1,370)
Cash outflow from
repayment of debt 474 391 889
Cash inflow from
loans received (91) (199) (1,797)
Cash outflow from
increase
in liquid resources 87 261 335
------ ------ ------
Movement in net debt
in the period (104) 76 (1,943)
Net debt at beginning
of period (19,833) (17,840) (17,890)
------ ------ ------
Balance at end of
period (19,937) (17,764) (19,833)
====== ====== ======
4. Analysis of net debt
At 1st Cash flow Other non-cash At 30th June
January
2004 changes 2004
£'000 £'000 £'000 £'000
Cash in hand
and at bank /
brokers 1,189 (591) - 598
Bank
overdraft (17) 17 - -
____ _____ _____ ______
1,172 (574) 598
Debt due
within one
year (3,673) 383 (355) (3,645)
Debt due after
one year (18,013) - 355 (17,658)
------ ------ ------ ------
(21,686) 383 - (21,303)
Current asset
investments 681 87 - 768
------ ------ ------ ------
(19,833) (104) - (19,937)
====== ====== ====== ======
5. Called up share capital
During the period under review 10,000 share options were exercised at par under
the Unapproved Share Option Schemes and, in addition, 44,890 ordinary shares
were issued under the terms of the 8% Secured Redeemable Loan Stock 2006; 19,784
ordinary shares at a price of 284p per share; and 25,106 ordinary shares at a
price of 236p per share.
The allotted share capital has therefore increased by 54,890 ordinary shares.
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