Interim Results & Chairman's Statement

Wynnstay Properties PLC 30 November 1999 WYNNSTAY PROPERTIES PLC UNAUDITED INTERIM RESULTS TO 30 SEPTEMBER 1999 CHAIRMAN'S STATEMENT I am pleased to be able to report very encouraging trading results for the six months ended 29th September 1999. Compared to the same period last year, profit on ordinary activities before exceptional items and taxation increased by 88% to £250,754 (1998 - £133,551). This reflects an increase in property income, which rose to £703,905 (1998 - £685,935) coupled with a reduction in costs and, especially, lower finance charges which result from the more favourable interest rates prevailing compared with last year. For the first time this year, a balance sheet has been included with the interim results showing, by comparison, the position at 25th March 1999. Net assets at 29th September 1999 were £6,589,572, equivalent to 209 pence per share. In my statement, accompanying last year's results, I referred to the outcome of the Board's review of the portfolio and of our investment strategy. I mentioned, in particular, our aim of increasing the proportion of the portfolio in the industrial sector and of concentrating our activities primarily in central southern England. During the period, we have continued to implement this review and as reported to those who were able to attend the Annual General Meeting we completed, in July, the acquisition of an industrial property in Aldershot for £725,000. This is a modern well let building of over 11,000 sq.ft. We are currently in the process of marketing certain of our smaller investment properties where we believe the prospects for further growth are limited, with a view to reinvestment of the proceeds in pursuance of our stated objectives. Over recent months, we have considered a number of investment opportunities, including one small corporate acquisition, but the market is currently very competitive and we are determined only to enter into transactions which will provide longer term benefit to Shareholders. I also reported in June that, following a successful appeal, we had obtained a planning consent for a retail warehouse development on our site at Colchester. At a very advanced stage in our negotiations with a national retailer, where tender costs had been received and both parties were in a position to conclude matters, the Local Authority, entirely without any notice or consultation with the Company, introduced a bus lane scheme in the area which has fundamentally changed the traffic flows past our site. As a result, the prospective tenant was unwilling to proceed on the terms previously agreed and, therefore, this scheme has not progressed due to circumstances entirely outside our control. It is unfortunately the case that in such circumstances the Company has no right of appeal nor any claim for compensation for the financial loss suffered. We are currently evaluating the options available in relation to this site and will be actively marketing it again in the near future. In the meantime, however, the Directors consider that it is prudent to make a provision of £75,000 against the book value of the property which, together with £13,011 in respect of professional fees and other costs associated with the aborted development, has been treated as an exceptional item in the interim results. This situation apart, I am pleased to report that the portfolio is fully let and income producing. Our management team is constantly examining ways of improving both income and capital value through active management. Despite the two recent increases in interest rates, prospects for the full year at this stage appear favourable and in the light of the improved interim profit, the Directors have decided to increase the interim dividend by 5.9% from 1.7p to 1.8p per share and this will be paid on 20th December 1999 to Shareholders on the register on 10th December 1999. Finally, I take this opportunity to thank Shareholders for their continued interest in, and support of, the Company and wish Shareholders and their families a restful and peaceful Christmas. Philip G.H. Collins 30th November 1999 Chairman UNAUDITED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 29 SEPTEMBER 1999 Six Six Year months months ended ended 29 ended 29 25 March September September 1999 1998 1999 (Unaudite (Unaudite (Audited) d) d) £ £ £ Property Income 703,905 685,935 1,364,226 Property & Administration Costs 222,207 231,204 434,214 --------- --------- --------- Operating Profit 481,698 454,731 930,012 Investment Income 7,654 3,269 11,024 --------- --------- --------- 489,352 458,000 941,036 Finance Costs 238,598 324,449 582,299 --------- --------- --------- Profit before Exceptional Items and 250,754 133,551 358,737 Taxation Exceptional Items (Note (88,011) (3,602) 40,898 1) --------- --------- --------- Profit before Taxation 162,743 129,949 399,635 Taxation 43,784 33,991 58,498 --------- --------- --------- Profit after Taxation, attributable to Ordinary Shareholders 118,959 95,958 341,137 Interim Dividend 1999: 1.80p 1998: 1.70p 56,795 53,640 Total Dividend 1998- 1999: 5.65p 178,272 --------- --------- --------- Profit Retained 62,164 42,318 162,865 --------- --------- --------- Earnings per share (Note 3.8p 3.0p 10.8p 2) Notes: 1. The exceptional charge of £88,011 for the six months ended 29th September 1999 comprises the writedown of £75,000 in the value of a site held for development, together with aborted fees and other costs of £13,011 relating thereto. For 1998 the exceptional charge of £3,602 comprised the profit of £4,592 from the disposal of an investment property and the costs of £8,194 associated with discontinued merger negotiations. 2. Earnings per share have been calculated on profits after taxation attributable to ordinary shareholders of £118,959 (1998: £95,958) and on 3,155,267 ordinary shares, being the weighted average number in issue during both periods. 3. The figures in this statement do not constitute statutory accounts; those for the year ended 25th March 1999 are extracted from the Group Accounts which have been filed with the Registrar of Companies. These Accounts 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. UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 29 SEPTEMBER 1999 29 September 1999 25 March 1999 (Unaudited) (Audited) £ £ Fixed Assets Tangible assets 13,107,191 12,348,279 Investments 51,677 51,677 ------------ ------------ 13,158,868 12,399,956 Current Assets Trading properties at Directors' valuation 495,000 570,000 Debtors 94,878 112,735 Cash at bank and in hand 300,298 229,667 ------------ ------------ 890,176 912,402 Creditors: amounts falling due within one year (468,068) (558,293) ------------ ------------ Net current assets 422,108 354,109 ------------ ------------ Total assets less current liabilities 13,580,976 12,754,065 Creditors: amounts falling due after more than one year (6,991,404) (6,226,657) ------------ ------------ Net assets 6,589,572 6,527,408 ============ ============ Capital and Reserves: Share Capital 788,817 788,817 Reserves Capital redemption reserve 204,528 204,528 Share premium account 1,135,249 1,135,249 Capital reserve 151,400 151,400 Revaluation reserve 2,341,682 2,341,682 ------------ ------------ Non-distributable reserves 3,832,859 3,832,859 Distributable reserves 1,967,896 1,905,732 ------------ ------------ Equity Shareholders' Funds 6,589,572 6,527,408 ============ ============

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