Non Regulatory Announcement

RNS Number : 7290W

Panther Securities PLC

16 June 2008

 



16 June 2008

Panther Securities PLC 

('Panther' or 'the Company')

Sale of a derivative financial instrument and an investment property

The Company announces that on 11 June 2008 it cancelled one of its derivative financial instruments with HSBC Bank plc. This was an interest rate swap which fixed £25,000,000 of its loans at a rate of 4.63% (excluding margin) until 1 December 2011. The Company received a premium of £1,120,000 from HSBC in consideration for the cancellation.

The Company retains a further interest rate swap with HSBC which fixed £25,000,000 at 4.90% (excluding margin) until 1 March 2021. The directors of Panther consider this to be appropriate in the context of the current borrowings of £35,000,000 drawn down against its existing £42,500,000 facility.

The Company set out details of all its derivative financial instruments in Note 30 to consolidated group accounts for the year ended 31 December 2007. The year end valuation of the interest rate swap which has now been cancelled, was £449,000.

The Company's remaining derivative financial instruments (including the now cancelled swap) were valued as a net liability of £3,000 as at 31 December 2007 and have an approximate positive value of £650,000 (which does not include the premium referred to above) as at 10 June 2008.

The Company further announces that it sold at auction its property at 245-249 Whitechapel Road, London E1, on 29 May 2008, for £2,650,000, payable in cash. The property comprised freehold shops with offices above, producing a net annual rental income of £114,000. The sale price was substantially above the independent valuation by DTZ at 31 December 2007, of £1,350,000, which was the net book value at that date.  The property was of special interest to the purchaser and certain competitors and, as a result, a greater than expected value was paid by the purchaser at auction.

The Company also reports that its share portfolio has been affected by the turbulent conditions in the stock markets, and its portfolio has fallen in value by approximately £1 million as at 12 June 2008, compared to the book values at the year end and in the cost of purchases since the year end). The current market value of the Company's share portfolio, which is totally uncharged, is approximately £6 million,.

The Chairman believes many of our properties are opportunity properties with an 'ANGLE'. This means that there is potential for a change of circumstances, such as a grant of planning permission, a lease re-negotiation, adjoining ownership benefits or merging of interests or any of numerous other possible factors to create improvement to value.

Whenever these 'ANGLES' can be utilised, the property turns into an 'ANGEL' and blesses the owner with an additional profit over and above its normal investment value.  We constantly are seeking to convert the 'ANGLES' into 'ANGELS'.

The Company will add the funds from the property disposal to its cash balances, which at 13 June 2008, stood at approximately £8,400,000. Panther also has undrawn loan facilities available of approximately £7,500,000 (without providing additional security) and these funds are available for future trading and investing purposes, where interesting opportunities are now becoming available.

For further information:

Panther Securities plc	020 7278 8011
Andrew Perloff (executive chairman)
Simon Peters, (finance director)

 

END

 

 

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