Final Results

Wynnstay Properties PLC 19 June 2001 Wynnstay Properties PLC 19 June 2001 WYNNSTAY PROPERTIES PLC ('the Company' or 'Wynnstay') PRELIMINARY RESULTS FOR THE YEAR ENDED 25TH MARCH 2001 CHAIRMAN'S STATEMENT I am pleased to report a year of continuing change and further satisfactory progress for your Company. The headline figures for the year ended 25th March 2001 are: 2001 2000 * Profit before exceptional items and - 4.2% £498,000 £520,000 taxation * Profit before taxation + 1.0% £505,000 £500,000 * Net asset value per share + 9.2% 238p 218p * Basic and Diluted Earnings per share + 2.4% 12.9p 12.6p * Recommended total dividend per share + 5.0% 6.3p 6.0p It is encouraging to note that profit before taxation marginally exceeded last year's record level, despite lower rental income resulting from the programme of disposals and subsequent reinvestment. This was partially achieved by continuing to pay rigorous attention to cost control, with property and overhead expenditure rising by just 2%. In addition, although interest rates were, on average, appreciably higher than in the previous year, net finance costs actually declined compared with last year, as a result of efficient cash management and reduced borrowings. Net gearing at 25th March 2001 was 83%, compared with 85% last year. The low taxation charge of 19.2% (2000 - 20.6%), reflects the further clawback of ACT previously written off, details of which are provided in the notes accompanying the Financial Statements. In the light of these results, the Directors have decided to increase the total dividend by 5.0%, to 6.3p per share (2000 - 6.0p). The substantial increase in net asset value reflects a satisfactory increase in the value of the properties within the portfolio which was valued at £ 14,145,000 by Chesterton at 25th March 2001, representing a surplus of £ 428,000 over last year's valuation. We have continued our strategy of divestment of the smaller, management-intensive properties and reinvestment in industrial properties in central southern England. As I foreshadowed in my statement for the half year, we acquired on 24th January 2001 a modern 11,160 sq.ft. freehold industrial property at Alton, Hampshire for a consideration of £700,000. This is let for 15 years with 5 year reviews and a tenant's option to break after the 10th year. The initial rent of £70,000 p.a. represents a 9.4% return after costs. At the half year, I also reported the sale of our last remaining retail property at Swindon. In the second half of the year, we have been actively marketing several properties, and I am pleased to report that since the year-end, we have exchanged contracts to sell our retail and office property at Epping and the smaller retail and residential property in Cambridge involving a combined consideration of £910,000, being £75,000 in excess of their ascribed values at 25th March 2001. The proceeds of these disposals, coupled with our unutilised borrowing facilities and cash deposits, provide us with substantial funds for reinvestment in properties which show opportunities for longer term asset growth. We continue to review a number of proposals, but only a few have met our investment criteria. Over the last two years, however, we have made significant progress in improving the overall quality of the portfolio and increasing the weighting of the industrial element of the investment portfolio which currently accounts for 34% by value with the office and retail elements representing 36% and 30% respectively. As I announced to Shareholders during last year's Annual General Meeting, Panther Securities PLC informed me on that day of the disposal of its entire shareholding in your Company to a subsidiary of Broadland Properties Limited, a substantial private property company owned by the Guthrie family, which we welcome as a Shareholder. Interestingly, however, we have noted that Mr Andrew Perloff, a major shareholder in Panther who has graced our recent meetings, has himself subsequently purchased shares in Wynnstay. At the last AGM, Shareholders approved a Special Resolution authorising your Company to purchase its own shares. This resolution has to be renewed annually and is therefore included in the Notice of Meeting for this year. The Board commends this resolution to you as being in the best interests of all Shareholders. At an Extraordinary General Meeting, held in February, Shareholders approved the Special Resolution which modernised the requirements for use of the Company Seal and provided for a Securities Seal to be maintained for the sealing of share certificates without the requirement of signatures. Following this meeting, permission was granted for the transfer of the Company's shares to be settled electronically through the CREST system and Capita IRG PLC were appointed as the Company's registrars. We have entered the new financial year in a strong and confident mood. There is more work to do on the property portfolio, and a number of interesting opportunities to explore. Finally, I would again like to thank our dedicated and hard-working full-time staff and professional advisers in making this another successful year for your Company. Philip G. H. Collins Chairman WYNNSTAY PROPERTIES PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT YEAR ENDED 25TH MARCH 2001 2001 2000 £'000 £'000 £'000 £'000 Gross Rental Income 1,385 1,425 Fees and Commissions 23 18 Sales of Trading Properties - 590 --------- -------- 1,408 2,033 Cost of Sales of Trading Properties - 595 Property Outgoings 65 57 --------- -------- 1,343 1,381 Administration and Other Costs 384 384 --------- -------- Operating Profit 959 997 Finance Costs (Net) 461 477 --------- -------- Profit on Ordinary Activities before Exceptional Items and Taxation 498 520 Exceptional Items 7 (20) --------- -------- Profit on Ordinary Activities before Taxation 505 500 Taxation on Profit from Ordinary Activities 97 103 --------- --------- Profit after Taxation Attributable to Ordinary Shareholders 408 397 Dividends per share:- Interim Paid: 1.875p 2000:1.8p 59 57 Final Payable:4.425p 2000:4.2p 140 132 ------- ------- Total:6.3p 2000:6.0p 199 189 ------ ------ Retained Profit for the Financial Year Wynnstay Properties PLC 196 170 Subsidiary Companies 13 38 --------- --------- 209 208 ======== ========= Basic and Diluted Earnings per Share 12.9p 12.6p Normalised Earnings per Share 12.7p 13.4p Statement of Total Recognised Gains and Losses Profit for the Financial Year after Taxation 408 397 Unrealised Surplus on Revaluation of Investment 428 146 Properties -------- --------- Total Recognised Gains and Losses for the Year 836 543 ======== ========= Note of Historical Cost Profits and Losses Profit on Ordinary Activities before Taxation 505 500 Realisation of Property Revaluation Gains on Previous 51 125 Years -------- --------- Historical Cost Profit on Ordinary Activities before 556 625 Taxation ======== ======== Historical Cost Profit for the Year Retained after Taxation and Dividends 260 333 ======== ======== CONSOLIDATED BALANCE SHEET AT 25TH MARCH 2001 2001 2000 £'000 £'000 £'000 £'000 Fixed Assets Tangible Assets 14,178 13,089 Investments 54 53 ---------- --------- 14,232 13,142 Current Assets Debtors 105 351 Cash at Bank and in Hand 180 602 --------- --------- 285 953 Creditors: Amounts falling due within one year (602) (732) --------- --------- Net Current (Liabilities)/Assets (317) 221 ---------- --------- Total Assets Less Current Liabilities 13,915 13,363 Creditors: Amounts falling due after more than one year (6,397) (6,482) ---------- --------- Net Assets 7,518 6,881 ========== ========= Capital and Reserves: Share Capital 789 789 Reserves Capital Redemption Reserve 205 205 Share Premium Account 1,135 1,135 Capital Reserve 151 151 Revaluation Reserve 2,740 2,363 --------- --------- Non-Distributable Reserves 4,231 3,854 Distributable Reserves 2,498 2,238 ---------- --------- Equity Shareholders' Funds 7,518 6,881 ========== ========= CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 25TH MARCH 2001 2001 2000 £'000 £'000 £'000 £'000 Cash Flow from Operating 1,214 1,335 Activities Returns on Investment and Servicing of Finance Interest Received 23 19 Interest Paid (578) (403) ---------- --------- Net Cash (Outflow) from Returns on Investment and Servicing of Finance (555) (384) Taxation Paid (143) (28) Taxation - 1 Refunded ---------- --------- (143) (27) Capital Expenditure and Financial Investment Purchase of Tangible Fixed Assets (742) (788) Disposal of Tangible Fixed Assets 82 163 Purchase of Sinking Fund Policy Premium (1) (1) ---------- --------- Net Cash (Outflow) from Investing Activities (661) (626) Equity Dividends Paid (192) (181) ----------- ----------- Net Cash (Outflow)/Inflow before Financing (337) 117 Financing Drawdown of Bank Loan 700 764 Repayment of Bank Loan (785) (509) ------------ ----------- (Decrease)/Increase in Cash in the Period (422) 372 ============ =========== Reconciliation of Net Cash Flow to Movement in Net Debt (Decrease)/Increase in Cash in the (422) 372 Period Cash Outflow/(Inflow) from Decrease/(Increase) in Debt Financing 85 (255) ------------ ----------- Movement in Net Debt in the Period (337) 117 Net Debt at 25th March 2000 (5,880) (5,997) ----------- ----------- Net Debt at 25th March 2001 (6,217) (5,880) =========== =========== Notes 1. The financial information above does not constitute full accounts within the meaning of Section 240 Companies Act 1985 as amended (the 'Act'). Full accounts in respect of the year ended 25th March 2000, on which the auditors reported without qualification and which contained no statement under Section 237(2) or (3) of the Act, have been delivered to the Registrar of Companies. 2. Basic and diluted earnings per share have been calculated on profits after taxation attributable to shareholders of £407,581 (2000: £397,254) and on 3,155,267 ordinary shares being the weighted average number of shares in issue in both periods. Normalised earnings per share have been calculated on profits after taxation attributable to shareholders, excluding exceptional items, of £400,724 (2000: £423,512) on the same weighted average 3,155,267 shares. 3. A final dividend of 4.425p (2000: 4.20p) per share is being recommended and will be paid on 31 July 2001 to shareholders on the register at the close of business on 13th July 2001. 4. The 2001 Annual Report & Financial Statements will be posted to shareholders shortly and copies may be obtained by writing to the Secretary, Wynnstay Properties PLC, Cleary Court, 21 St. Swithin's Lane, London EC4N 8AD. 5. The Company's Annual General Meeting will be held at 12 noon on Thursday 26th July 2001 at The Royal Automobile Club, 89 Pall Mall, London SW1Y 5HS.

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