Interim Results

Wynnstay Properties PLC 26 November 2002 WYNNSTAY PROPERTIES PLC CHAIRMAN'S STATEMENT I am pleased to report on another very satisfactory set of results for the half-year ended 29th September 2002: 2002 2001 Restated • Profit before property disposals and taxation: + 22.5% £316,000 £258,000 • Profit before taxation: + 32.0% £417,000 £316,000 • Profit after taxation + 44.8% £310,000 £214,000 • Interim dividend per share: + 5.0% 2.1p 2.0p • Net asset value per share: + 7.5% 259p 241p Property income rose by 8% to £772,000 compared with £714,000 last year reflecting, on the one hand, a full contribution from our industrial property at Crawley acquired in November 2001 together with various re-lettings and reviews and, on the other hand, the disposal of some smaller properties previously reported to you. The portfolio continued to be fully let and income producing throughout the period. During the first-half, we disposed of one of our two small office premises at North Hill, Colchester and achieved a sale price that was 64% above the book value of the property as at 25th March 2002. As a result, this disposal produced a net profit before taxation of £101,000, which is reflected in the profit and loss account for the half-year. In 2001, there was a corresponding profit of £58,000. This sale further supports the view I expressed in my statement to you with our annual results for last year that there are a number of properties in our portfolio where, in the prevailing conditions, we could achieve disposal prices considerably in excess of the values at which such properties are included in our published accounts. As a result of last year's re-financing exercise, and with lower prevailing interest rates, net finance costs fell by 9% from £213,000 to £193,000, despite higher average borrowing levels than in 2001. By contrast, property and administration costs, together totalling £263,000, rose by 8% from £243,000. This increase resulted from a provision for dilapidations on one property and also landlord's expenditure at our Cleary Court offices in relation to the common service plant and equipment. Net gearing at the end of the half-year was 70%, corresponding closely with the level one year earlier. We are in a position to increase our borrowings significantly within our existing facilities should the right opportunities to add to the portfolio arise. The Company's comparative results for 2001 have been restated in accordance with accounting standard FRS 19, relating to deferred taxation, on which basis the financial statements for the year ended 25th March 2002 were prepared. In the light of the considerably higher profits achieved at the half-year stage, the Directors have decided to increase the interim dividend by 5% from 2.0p per share to 2.1p per share. This will be paid on 19th December 2002 to Shareholders on the register at 6th December 2002. At the time of writing, and in the absence of unforeseen events, Wynnstay's prospects for the full year appear encouraging. Some analysts have recently been warning about possible overheating in the property market, although their comments are directed mainly towards the residential sector and also, particularly, the City and West End of London office markets, in neither of which Wynnstay is represented. We will continue to make selective acquisitions and disposals to take the best advantage of market conditions where prices are acceptable and, in the case of additions, where we believe that the properties acquired will add to Shareholder value in the medium to longer term. The stock market turmoil which began in the spring of 2000 has continued. However property shares have generally performed well compared to most other stocks, albeit with some downturn over recent months. It was encouraging to see that the market reacted so positively to our last annual results, leading to a significant rise in Wynnstay's share price and a consequent reduction in the discount by comparison to the Company's net asset value per share. At the beginning of September, I and my immediate family interests acquired a further 570,700 ordinary shares in Wynnstay, taking our aggregate holding to 27.07%. You will recall from statements I have made in previous reports that I believe strongly in the value of well managed, smaller quoted property companies as an integral part of a balanced long term investment portfolio. My decision to make a further substantial investment in your Company is a practical demonstration both of that belief and of my commitment to the continuing successful development of Wynnstay for the benefit of all its Shareholders. It was very gratifying that our AGM in the summer was so well attended and I hope that as many Shareholders as possible will be able to come to next year's meeting which, as previously, will be held at The Royal Automobile Club on Thursday 24th July 2003. Finally, on behalf of the Board, I wish all Wynnstay's Shareholders and their families a happy Christmas and send our best wishes for 2003. Philip G.H. Collins Chairman 26th November 2002 WYNNSTAY PROPERTIES PLC UNAUDITED CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE SIX MONTHS ENDED 29TH SEPTEMBER 2002 Six Months ended Year ended 29th September 25th March 2002 2001 2002 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Gross Rental Income 762 705 1,435 Fees and Commissions 10 9 19 -------- -------- -------- PROPERTY INCOME 772 714 1,454 Property Outgoings (34) (28) (56) -------- -------- -------- 738 686 1,398 Administration and Other Costs (229) (215) (422) -------- -------- -------- OPERATING PROFIT 509 471 976 Profit on Disposal of Investment Properties 101 58 85 -------- -------- -------- 610 529 1,061 Finance Costs (Net) (193) (213) (395) -------- -------- -------- PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 417 316 666 Taxation (Note 1) (107) (102) (178) -------- -------- -------- PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 310 214 488 Interim Dividend 2002: 2.1p 2001: 2.0p (66) (63) Total Dividend 2001-2002: 6.75p (213) -------- -------- -------- PROFIT RETAINED 244 151 275 -------- -------- -------- Basic Earnings per share (Note 2) 9.8p 6.8p 15.5p Notes 1. Taxation includes a provision of £12,000 relating to the profit on the disposal of investment properties (2001: £Nil). 2. Basic earnings per share have been calculated on profits after taxation attributable to ordinary shareholders of £310,000 (2001: £214,000) and on 3,155,267 ordinary shares, being the weighted average number in issue during both periods. WYNNSTAY PROPERTIES PLC UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 29TH SEPTEMBER 2002 29th September 29th September 25th March 2002 2001 2002 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Restated FIXED ASSETS Tangible Assets 14,410 13,340 14,578 Investments 56 54 56 --------- -------- --------- 14,466 13,394 14,634 CURRENT ASSETS Debtors 89 142 102 Cash at Bank and in Hand 526 292 353 -------- -------- -------- 615 434 455 CREDITORS: Amounts falling due within one year (684) (547) (686) -------- -------- -------- NET CURRENT LIABILITIES (69) (113) (231) -------- -------- -------- TOTAL ASSETS LESS CURRENT LIABILITIES 14,397 13,281 14,403 CREDITORS: Amounts falling due after more than one year (6,200) (5,643) (6,450) -------- ------- -------- 8,197 7,638 7,953 DEFERRED TAXATION (38) (19) (38) -------- -------- -------- NET ASSETS 8,159 7,619 7,915 -------- -------- -------- CAPITAL AND RESERVES Share Capital 789 789 789 Capital Redemption Reserve 205 205 205 Share Premium Account 1,135 1,135 1,135 Capital Reserve 151 151 151 Revaluation Reserve 2,742 2,762 2,836 Distributable Reserves 3,137 2,577 2,799 -------- -------- -------- EQUITY SHAREHOLDERS' FUNDS 8,159 7,619 7,915 -------- -------- -------- WYNNSTAY PROPERTIES PLC UNAUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 29TH SEPTEMBER 2002 Six Months ended Year ended 29th September 29th September 25th March 2002 2001 2002 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 CASH FLOW FROM OPERATING ACTIVITIES (Note 1) 523 381 944 -------- -------- -------- RETURNS ON INVESTMENT AND SERVICING OF FINANCE Interest Received 4 7 12 Interest Paid (158) (252) (374) -------- -------- -------- NET CASH (OUTFLOW) FROM RETURNS ON INVESTMENT AND SERVICING OF FINANCE (154) (245) (362) -------- -------- -------- TAXATION PAID (61) (23) (121) -------- -------- -------- CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT Purchase of Tangible Fixed Assets (1) - (1,208) Disposal of Tangible Fixed Assets 266 893 1,070 Sinking Fund Policy Premium - - (1) -------- -------- ------- NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES 265 893 (139) -------- -------- -------- EQUITY DIVIDENDS PAID (150) (140) (202) -------- -------- -------- NET CASH INFLOW BEFORE FINANCING 423 866 120 FINANCING Drawdown of Bank Loan - 5,643 6,450 Repayment of Bank Loan (250) (6,397) (6,397) -------- -------- -------- 173 INCREASE IN CASH IN THE PERIOD 173 112 -------- -------- -------- RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT Increase in Cash in the Period 173 112 173 Cash Inflow/(Outflow) from Debt Financing 250 754 (53) -------- ------- -------- Movement in Net Debt in the Period 423 866 120 NET DEBT AT 25TH MARCH 2002 (6,097) (6,217) (6,217) -------- -------- -------- NET DEBT AT 29TH SEPTEMBER 2002 (Note 2) (5,674) (5,351) (6,097) -------- -------- -------- Notes To Cash Flow Statement 1. Reconciliation of Operating Profit to Net Cash Inflow from Operating Activities Six Months ended Year ended 29th September 25th March 2002 2001 2002 £'000 £'000 £'000 Operating Profit 508 471 976 Depreciation and Amortisation 3 3 7 Decrease/(Increase) in Debtors 14 (116) (76) (Decrease)/Increase in Creditors (2) 23 37 ------- ------- ------- Net Cash Inflow from Operating Activities 523 381 944 ------- ------- ------- 2. ANALYSIS OF NET DEBT 29th September 2002 Cash Movement 25th March 2002 £'000 £'000 £'000 Cash at Bank and in Hand 526 173 353 Debt due after more than one year (6,200) 250 (6,450) Net Debt -------- -------- -------- (5,674) 423 (6,097) -------- -------- -------- Notes (i) The figures in these statements do not constitute statutory accounts; those for the year ended 25th March 2002 are extracted from the Group Accounts which have been filed with the Registrar of Companies and which received an unqualified report from the Auditors and did not contain a statement under Section 237(2) or (3) of the Companies Act 1985 as amended. (ii) The unaudited results for the six months ended 29th September 2001 have been restated in accordance with accounting standard FRS 19. (iii) The interim dividend of 2.1p per share will be paid on 19th December 2002 to those Shareholders on the register at 6th December 2002. (iv) This interim report is being posted to all Shareholders and will be available on application to the Company's registered office at Cleary Court, 21 St. Swithin's Lane, London EC4N 8AD. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Wynnstay Properties (WSP)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today