Interim Results
Peel Hldgs PLC
22 December 2003
Chairman's Statement
Results
Profit on ordinary activities before taxation for the half year ended 30th
September 2003 increased marginally to £11.77m compared with £11.27m for the
corresponding period in the previous year.
Turnover for the half year increased by £24.26m from £76.91m to £101.17m. The
Ports division increased turnover by £15.63m, which included a full half year
contribution from Clydeport for the first time. Turnover increased by £7.79m at
the Airport division, which included a full half year contribution from Teesside
International Airport and an improvement in charter passenger income and rental
income at Liverpool John Lennon Airport. Turnover at The Trafford Centre
increased by £2.07m due to higher rental income from new lettings and rent
reviews, and turnover from the Land and Property division decreased by £1.23m
largely due to a reduction in trading property sales.
The uplift in turnover led to an increase in operating profit of £8.99m to
£53.55m (2002: £44.56m), which included an increase of £4.67m from the Ports
division, £1.70m from the Airports division, £1.63m from The Trafford Centre and
£0.99m from the Land and Property division.
The increase in operating profit was offset by a fall in profits from the
disposal of fixed assets of £2.09m to £1.41m (2002: £3.50m), and an increase of
£6.40m in net interest payable to £43.20m (2002: £36.80m) as a result of
increased borrowings to fund the acquisition of Clydeport.
Profit on ordinary activities after taxation increased to £7.33m (2002: £7.13m),
to give diluted earnings per ordinary share of 10.96p (2002: 10.52p).
The Board has declared an interim dividend of 4.8p per ordinary share (2002:
4.8p). This will be paid on 6th April 2004 to ordinary shareholders on the
register at the close of business on 5th March 2004.
Balance Sheet
Consolidated shareholders' funds increased slightly during the half year by
£1.44m to £874.64m, compared to £873.20m at 31st March 2003, producing fully
diluted net assets per ordinary share of 1,303p, compared to 1,301p at 31st
March 2003, an increase of 2p.
The increase in shareholders' funds was due to the retained profit for the half
year of £4.01m, together with a foreign exchange loss of £2.57m.
Finances
Net Group borrowings at 30th September 2003 stood at £1,070.25m compared to
£1,044.18m at 31st March 2003, an increase of £26.07m.
Borrowings totalling £266.04m were classified as repayable within one year at
30th September 2003. Subsequent to the half year, £219.81m of these borrowings
have been refinanced and replaced with new facilities, which are for periods
greater than one year.
Gearing, based on shareholders' funds, at the half year increased to 122.4%
(31st March 2003: 119.6%) following the increase in borrowings at 30th September
2003.
The Trafford Centre
Visitor numbers for the six months to 30th September 2003 were comparable with
the same period in the previous year. This was largely due to the exceptionally
good weather in the summer as well as the inevitability that visitor numbers
must begin to level off at some stage. However, returns from retailers indicate
trading figures have remained positive with sales approximately 6% higher than
for the same period last year.
At the half year, the annualised rent roll including turnover rents stood at
£53.47m (2002: £53.03m). This figure does not include the full effects of the
ongoing rent reviews, most of which fell due in July 2003, and on which
satisfactory progress is being made. In July 2003, the Centre entered into an
agreement for lease with John Lewis PLC in respect of that part of the Centre
known as the Festival Village. The new 225,000 sq. ft. department store will be
the largest unit in the Centre and is due to open for business in mid 2005. Work
has almost been completed on the new direct vehicular access into the Centre
from the M60 junction 9 which will open in early 2004.
Peel Land and Property
The property investment department has continued with its strategy of expanding
key land holdings and property investments around existing investments. Sales
produced capital receipts of £8.91m and purchases amounted to £16.65m during the
period and included the purchase of properties in Hyndburn, Lancashire adjacent
to an existing retail park and an industrial property adjacent to The Trafford
Centre. As at 30th September 2003, annualised rental income for the UK property
investment portfolio was £37.63m compared to £36.26m at 31st March 2003. The
majority of this increase emanated from new lettings which created additional
rental income of £1.35m per annum, whilst rent reviews and lease renewals added
annualised rental income of £0.79m. Offset against these increases was lost rent
due to new vacancies totalling £0.98m per annum. At the half year, voids
represented annualised rental income of £1.73m compared with £1.88m at 31st
March 2003.
The property development department continues to progress extensions to retail
parks at Barnsley, 70,000 sq. ft., and Straiton, Edinburgh, 50,000 sq. ft.
During the period a 14,000 sq. ft. unit at Stockport has been completed and let,
whilst 20,000 sq. ft. of office space at Wakefield has also been completed, let
and sold. Construction is also well underway on land adjacent to The Trafford
Centre on a 130,000 sq. ft. retail warehouse unit pre-let to B&Q and on a high
quality 108,000 sq. ft. office development at Trafford Quays.
The land investment, development and planning department continues to be
extremely active in representing the Group's landholdings and appearing at
numerous Unitary Development Plan and Local Plan reviews, as well as promoting
the Group's views on the planning system at a national and regional level to
encourage change that would benefit the Group. The planning system is becoming
increasingly complicated and successful planning consents are proving difficult
to achieve. Despite the difficult planning circumstances that prevail, the
department contracted and completed on land sales totalling £1.22m producing a
profit of £0.74m. Successful acquisitions were completed on 1,200 acres which
complement the existing portfolio.
The environment and resource development department income for this period was
in line with forecasts at £0.55m (2002: £1.01m). The reduction relative to the
same period last year was due to a number of one-off settlements in 2002, which
were not repeated. The objective of the department is to grow its ongoing income
base to create sustainable expansion. Accordingly there are now a number of
mineral extraction, waste management and renewable energy schemes in the
planning process.
Peel Ports
The results for the half year include the full six months results from
Clydeport. Performance from the Scottish ports in the first half year was
positive, with tonnages through the Hunterston coal importation facility at
1.70m tonnes. Tonnages at Glasgow and Greenock were up in the period with
Glasgow benefiting from increased levels of animal feed and new cargoes of
plywood, plasterboard and fish food, while Greenock handled increased volumes of
containers.
Trading conditions on the Ship Canal were difficult in the six months, and
tonnages were marginally down over the half year at 3.19m tonnes (2002: 3.23m
tonnes). The decrease resulted mainly from a further drop in traffic handled for
the Shell UK refinery adjacent to the canal. In the rest of the Lower Reaches of
the canal, Eastham to Runcorn, tonnage remained almost identical to the
equivalent period in the previous year. There was an increase in traffic to the
Upper Reaches of the canal, where tonnage increased by 2.3%.
Property investment activities in Scotland were in line with expectations,
whilst there were no development property sales in the period, the first housing
phase of the Glasgow Harbour project was marketed. The level of sales by the
three house builders were encouraging, with deposits being taken on all 450
residential units released in this phase.
Peel Airports
Passenger throughput at Liverpool John Lennon Airport for the six months
increased to 1.74m (2002: 1.59m) an increase of 9.4% on the same period last
year. Charter passenger numbers during the summer season exceeded expectations,
and Liverpool welcomed JetMagic, which commenced a new twice daily service to
Cork. The cargo market continued to experience difficult conditions, and
tonnages for the period fell to 13,800 tonnes, a reduction of 11.2% compared to
the equivalent period in 2002. Work is well underway on the extension to the
terminal building to cater for up to 4.5m passengers per annum and on new
aircraft parking areas, improvements to road infrastructure and a new car park.
On 1st April 2003, a 75% shareholding was acquired in Teesside International
Airport and passenger numbers for the six months were 0.43m. In the coming years
substantial investment will be needed in the Airport to improve facilities to
attract both new airlines and additional passengers. In October 2003 the low
cost carrier bmibaby launched new services from Teesside with aircraft to be
based at the Airport from March 2004.
At Doncaster Finningley Airport planning continues to prepare the site for the
commencement of commercial flights in Spring 2005. A detailed planning
application for a 145,000 sq. ft. terminal building was submitted in September
2003 and it is hoped that permission will be granted shortly. At Sheffield City
Airport, the strategy of forming a general aviation business has reduced
operating losses.
Outlook
Although the planning environment is increasingly restrictive, demanding more
investment in time and resources, we believe the mix of the Group's assets and
businesses should continue to create opportunities to meet our longer term
growth objectives.
John Whittaker 22nd December 2003
Chairman
Group Profit and Loss Account
for the half year ended 30th September 2003
Unaudited Unaudited Audited Year to
6 months to 6 months to 31st March
30th September 30th September 2003
2003 2002
Note £'000 £'000 £'000
Turnover 101,173 76,907 161,181
------------------------- ------ ----------- ------------ ---------
Operating
profit 53,555 44,559 99,533
Profit on
disposal of
fixed assets 1,415 3,504 6,431
------------------------- ------ ----------- ------------ ---------
Profit on
ordinary
activities
before 54,970 48,063 105,964
interest and taxation
Net interest
payable and
similar
charges (43,202) (36,798) (75,813)
------------------------- ------ ----------- ------------ ---------
Profit on
ordinary
activities
before
taxation 11,768 11,265 30,151
Tax on profit
on ordinary
activities (4,437) (4,136) (12,743)
------------------------- ------ ----------- ------------ ---------
Profit on
ordinary
activities
after taxation 7,331 7,129 17,408
Minority
interests 24 (68) (101)
------------------------- ------ ----------- ------------ ---------
Profit for the
period 7,355 7,061 17,307
Dividends on
non-equity
share capital (361) (362) (725)
------------------------- ------ ----------- ------------ ---------
Profit for the
financial
period
attributable
to ordinary
shareholders 6,994 6,699 16,582
Dividends on
equity share
capital 1 (2,986) (2,986) (9,332)
------------------------- ------ ----------- ------------ ---------
Retained
profit for the
financial
period 4,008 3,713 7,250
------------------------- ------ ----------- ------------ ---------
Earnings per
ordinary share 2
Basic earnings 11.24p 10.77p 26.66p
Diluted
earnings 10.96p 10.52p 25.78p
------------------------- ------ ----------- ------------ ---------
Group Balance Sheet
as at 30th September 2003
Unaudited Unaudited Audited
As at As at As at
30th September 30th September 31st March
2003 2002 2003
Note £'000 £'000 £'000
Fixed assets
Intangible assets 38,337 2,092 39,336
Tangible assets
Investment properties 1,739,197 1,637,856 1,707,819
Other fixed assets 217,269 109,782 202,886
Investments 62,969 43,296 62,731
---------------------------- ------ ----------- ------------ ---------
2,057,772 1,793,026 2,012,772
---------------------------- ------ ----------- ------------ ---------
Current assets
Stocks 11,803 5,781 11,234
Debtors 39,346 27,748 44,257
Cash at bank and in hand 106,558 127,746 103,883
---------------------------- ------ ----------- ------------ ---------
157,707 161,275 159,374
Creditors (amounts
falling due within one
year) (346,369) (105,793) (239,825)
---------------------------- ------ ----------- ------------ ---------
Net current
(liabilities)/assets (188,662) 55,482 (80,451)
---------------------------- ------ ----------- ------------ ---------
Total assets less
current liabilities 1,869,110 1,848,508 1,932,321
Creditors (amounts
falling due after more
than one year) (910,768) (972,193) (986,221)
Provision for
liabilities and charges (46,513) (32,978) (43,546)
Accruals and deferred
income (20,228) (15,742) (19,347)
---------------------------- ------ ----------- ------------ ---------
Net assets excluding
pension
(liability)/asset 891,601 827,595 883,207
Pension
(liability)/asset (12,010) 78 (7,798)
---------------------------- ------ ----------- ------------ ---------
Net assets including
pension
(liability)/asset 879,591 827,673 875,409
---------------------------- ------ ----------- ------------ ---------
Financed by capital and
reserves
Called-up share capital 39,276 39,276 39,276
Share premium account 103,789 103,789 103,789
Capital redemption
reserve 115,676 115,672 115,676
Revaluation reserve 715,164 696,644 715,164
Capital reserve 45,065 45,065 45,065
Merger relief reserve 7,954 7,954 7,954
Profit and loss account (91,953) (122,575) (93,391)
---------------------------- ------ ----------- ------------ ---------
Consolidated capital and
reserves 934,971 885,825 933,533
Shares held by Largs
Limited in Peel Holdings
p.l.c. (60,328) (60,328) (60,328)
---------------------------- ------ ----------- ------------ ---------
Shareholders' funds 3 874,643 825,497 873,205
Equity minority
interests 4,948 2,176 2,204
---------------------------- ------ ----------- ------------ ---------
879,591 827,673 875,409
---------------------------- ------ ----------- ------------ ---------
Net assets per ordinary
share
Fully diluted 4 1,303p 1,230p 1,301p
Group Cash Flow Statement
for the half year ended 30th September 2003
Unaudited Unaudited Audited
6 months to 6 months to Year to
30th September 30th September 31st March
2003 2002 2003
Note £'000 £'000 £'000
Cash flow from operating
activities 5(a) 62,168 44,650 107,165
Returns on investments
and servicing of finance 5(b) (43,289) (40,623) (81,876)
Taxation (3,536) 2,457 (104)
Capital expenditure and
financial investment 5(c) (29,923) (15,944) (37,967)
Acquisitions and
disposals 5(d) 130 - (152,500)
Equity dividends paid (9,086) (8,811) (9,330)
----------------------------- ------ ----------- ----------- ----------
Cash flow before
management of liquid
resources and financing (23,536) (18,271) (174,612)
Management of liquid
resources (2,622) (1,670) 34,205
Financing 5(e) 27,302 (48,745) 89,746
----------------------------- ------ ----------- ----------- ----------
Increase/(decrease) in
cash in the period 1,144 (68,686) (50,661)
----------------------------- ------ ----------- ----------- ----------
Reconciliation of Cash Flow to
Movement in Net Debt
for the half year ended 30th
September 2003
Unaudited Unaudited Audited
6 months to 6 months to Year to
30th September 30th September 31st March
2003 2002 2003
Note £'000 £'000 £'000
Movement in cash in the
period 6 731 (68,736) (53,929)
Cash movement from
management of liquid
resources 6 2,622 1,670 (34,205)
Movements in overdrafts 6 413 50 3,268
Net movement in other
debt due within one year 6 (26,155) (299) (7,467)
Net movement in debt due
after more than one year 6 (297) 50,256 (81,924)
Translation and other
non-cash adjustments 6 (1,035) 1,229 (1,841)
Arising on acquisition 6 (2,344) - (2,787)
----------------------------- ------ ----------- ----------- ----------
Change in net debt in
the period (26,065) (15,830) (178,885)
Net debt at beginning of
period (1,044,184) (865,299) (865,299)
--------------------------------- ----------- ----------- ----------
Net debt at end of
period (1,070,249) (881,129) (1,044,184)
--------------------------------- ----------- ----------- ----------
Notes to the Interim Results
for the half year ended 30th September 2003
1. Dividends on Equity Share Capital
An interim dividend of 4.8p per ordinary share (2002: 4.8p) will be paid on 6th
April 2004 to ordinary shareholders on the register at the close of business on
5th March 2004.
2. Earnings per Ordinary Share
The calculation of earnings per ordinary share is based on profit after tax,
non-equity dividends and minority interests of £6,994,000 (2002: £6,699,000) and
on 62,215,827 ordinary shares (2002: 62,205,919) being the weighted average
number of ordinary shares in issue during the period ended 30th September 2003.
The weighted average number of ordinary shares used in the calculation of
diluted earnings per ordinary share is 67,127,727 ordinary shares (2002:
67,136,909). This has been adjusted for the effect of the conversion of all the
5.25% convertible cumulative non-voting preference shares of £1 each.
3. Reconciliation of Movements in Shareholders' Funds
Unaudited Unaudited Audited
6 months to 6 months to Year to
30th September 30th September 31st March
2003 2002 2003
£'000 £'000 £'000
Profit for the period 7,355 7,061 17,307
Dividends (3,347) (3,348) (10,057)
Unrealised net surplus on
revaluation of investment
properties - 71,384 125,558
Foreign exchange adjustments (2,570) (5,074) (5,335)
Actuarial loss relating to
pension funds - - (9,741)
Purchase of own shares - (110) (111)
--------------------------- ----------- ----------- ----------
Net increase in shareholders'
funds 1,438 69,913 117,621
--------------------------- ----------- ----------- ----------
Opening shareholders' funds 873,205 755,584 755,584
--------------------------- ----------- ----------- ----------
Closing shareholders' funds 874,643 825,497 873,205
--------------------------- ----------- ----------- ----------
4. Fully Diluted Net Assets per Ordinary Share
Unaudited Unaudited Audited
As at As at As at
30th September 30th September 31st March
2003 2002 2003
£'000 £'000 £'000
Shareholders' funds 874,643 825,497 873,205
--------------------------- ----------- ----------- ----------
Number Number Number
Ordinary shares in issue at
period end 99,001,243 98,982,154 99,001,243
Shares held by Largs Limited in
Peel Holdings p.l.c. (36,785,416) (36,785,416) (36,785,416)
--------------------------- ----------- ----------- ----------
62,215,827 62,196,738 62,215,827
Assumed conversion of 13,753,430
(2002: 13,806,882) 5.25% (plus
tax 4,911,900 4,930,990 4,911,900
credit) convertible preference
shares ----------- ----------- ----------
---------------------------
Number of ordinary shares deemed
to be in issue assuming full
conversion of the 5.25% (plus tax
credit) convertible cumulative
preference shares 67,127,727 67,127,728 67,127,727
--------------------------- ----------- ----------- ----------
Fully diluted net assets per
ordinary share 1,303p 1,230p 1,301p
--------------------------- ----------- ----------- ----------
5. Notes to the Cash Flow
Statement Unaudited Unaudited Audited
6 months to 6 months to Year to
30th September 30th September 31st March
2003 2002 2003
£'000 £'000 £'000
(a) Cash flow from operating
activities
Operating profit 53,555 44,559 99,533
Non-cash adjustments 7,559 6,239 8,739
Movement in stocks (587) 819 2,616
Movement in debtors (6,260) (4,643) 3,060
Movement in creditors 7,901 (2,324) (6,783)
------------------------------ ----------- ------------ ---------
62,168 44,650 107,165
------------------------------ ----------- ------------ ---------
(b) Returns on investments and servicing of
finance
Interest received 1,201 2,886 4,947
Interest paid (including capitalised) (44,011) (39,747) (80,778)
Finance lease interest paid (116) (150) (315)
Non-equity dividends paid (363) (362) (730)
Other costs of finance - (3,250) (5,000)
------------------------------ ----------- ----------- ----------
(43,289) (40,623) (81,876)
------------------------------ ----------- ----------- ----------
(c) Capital expenditure and financial
investment
Purchase of fixed assets (53,580) (42,488) (80,606)
Sale proceeds from fixed assets 23,873 26,661 44,899
Loans to associated undertakings (216) (117) (2,260)
------------------------------ ----------- ----------- ----------
(29,923) (15,944) (37,967)
------------------------------ ----------- ----------- ----------
(d) Acquisitions and disposals
Acquisition 130 - (152,495)
Purchase of interests in joint venture - - (5)
companies
------------------------------ ----------- ----------- ----------
130 - (152,500)
------------------------------ ----------- ----------- ----------
(e) Financing
Purchase of own shares - (110) (111)
Movement in loans 26,452 (49,955) 88,743
Grants received 850 1,320 1,114
------------------------------ ----------- ----------- ----------
27,302 (48,745) 89,746
------------------------------ ----------- ----------- ----------
6. Analysis of Movement in Group Net Debt
1st April Arising on Cash Exchange/ 30th September
2003 Acquisition Reallocations 2003
£'000 £'000 £'000 £'000 £'000
Cash at bank
(accessible
within 24 47,840 - 731 (678) 47,893
hours)
Cash deposits 56,043 - 2,622 - 58,665
Overdrafts (1,572) - 413 - (1,159)
Debt due
within one
year (160,274) (167) (26,155) (78,283) (264,879)
(excluding
overdrafts)
Debt due after
more than one
year (986,221) (2,177) (297) 77,926 (910,769)
--------------------- --------- ---------- ------- ---------- --------------
Net debt (1,044,184) (2,344) (22,686) (1,035) (1,070,249)
--------------------- --------- ---------- ------- ---------- --------------
7. Interim Results
The board of directors approved the above results on 22nd December 2003.
The interim results for the half year ended 30th September 2003 have been
prepared using accounting policies stated in the Group's Report and Accounts for
the year ended 31st March 2003 and are unaudited.
They do not comprise full financial statements within the meaning of the
Companies Act 1985 and have neither been reported upon by the auditors under
Section 235 of the Companies Act 1985 nor reviewed in accordance with Accounting
Practices Board Bulletin 1999/4.
The comparative figures for the year ended 31st March 2003 are an abridged
version of the Group's full accounts and, together with other financial
information contained in these interim results, do not constitute statutory
accounts of Peel Holdings p.l.c. within the meaning of Section 240 of the
Companies Act 1985. The statutory accounts for the year ended 31st March 2003
have been delivered to the Registrar of Companies. The report of the auditors
was not qualified and did not contain a statement under Section 237 (2) and (3)
of the Companies Act 1985.
Copies of this interim report will be despatched to shareholders by post.
Further copies may be obtained from the Company Secretary, Peel Holdings p.l.c.,
Peel Dome, The Trafford Centre, Manchester M17 8PL.
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 2 days ago Next
- 2 days ago CT Private Equity Trust
- 2 days ago Kingfisher
- 2 days ago Kingfisher
- 2 days ago Rio Tinto