Interim Results

RNS Number : 7384C

London & Stamford Property Ltd

19 November 2009

 



LONDON & STAMFORD PROPERTY LIMITED

Registration No. 47816

Registered Office:

2 ND FLOOR, REGENCY COURT, GLATEGNY ESPLANADE, ST. PETER PORT,

GUERNSEY, GY1 3NQ.

___________________________

TELEPHONE: + 44 1481 720321

FACSIMILE: + 44 1481 716117

E-MAIL:  [e-mail]

For immediate release

19 November 2009

LONDON & STAMFORD PROPERTY LIMITED

INTERIM RESULTS FOR THE HALF-YEAR TO 30 SEPTEMBER 2009

London & Stamford Property Limited ("London & Stamford Property" or "the Company") (AIM: LSP), an investment company based in Guernsey, today announce interim results for the six months to 30th September 2009

Financial highlights

	Unaudited Six months to 30 September 2009	Unaudited Six months to 30 September 2008	Audited Year to 31 March 2009
Net income	£6.7m	£0.6m	£3.1m
Profit/(loss) for the period	£15.9m	£(1.9)m	£24.0m
Investment properties	£303.9m	£47.5m	£127.1m
Share of associates	£65.7m	-	£62.8m
Cash deposits	£290.7m	£240.5m	£169.9m
Bank debt	£139.1m	£21.9m	£69.6m
Net assets	£521.4m	£271.4m	£291.7m
NAV per share	104.3p	95.2p	102.3p
Earnings per share	4.5p	(0.7)p	8.4p
Adjusted earnings per share	1.4p	0.6p	9.5p
Dividend per share	2.2p	2.0p	4.0p
Number of shares in issue	500m	285m	285m

• Increase in NAV of 2% to 104.3p

• Post 30 September evidence of further yield strengthening

• Four further acquisitions in the period totalling £164m

• New equity raised in the period of £219.5m (net of expenses)

• Additional banking facilities agreed of £148m, to fund acquisitions and to repay £70m drawn previously on £150m Bank of Scotland revolving credit facility

• Substantial financial headroom for further acquisitions

• Bank of Scotland revolving credit facility fully available to fund future investment opportunities

• Continued prospect of move to the Main Market of the Stock Exchange and REIT conversion as requirements are satisfied

• The Board recommends an interim dividend of 2.2p per share in respect of the year to 31 March 2010 (payable on 21 December 2009)

Raymond Mould, the Non-Executive Chairman of London & Stamford Property Limited, said:

"I am very pleased to report our further acquisitions in the period and that we have continued to be able to add prime quality assets with secure income and long unexpired lease lengths to our portfolio.  Although the greatest part of recent improvement in yields has occurred post 30 September, these results include a valuation uplift in the period of £11.56 million, together with our share of the valuation uplift on Meadowhall of £2.4 million.

There are tentative signs of recovery in the economy and in retail sales and the central London office market. We remain cautious in the face of the most difficult occupier market in my memory and pending evidence of a real and sustainable recovery.

The potential for obtaining value may lie in larger lot sizes, outside of the range of many real estate investors, and London & Stamford continues to examine several such opportunities.

We are alert to the recovery process for the UK banking sector and believe that our combination of available equity and cheap debt and management expertise should allow us to add value to that process, in combination with a number of banks as they seek to work out their problem property portfolios."

Enquiries:
Kreab Gavin Anderson Richard Constant / James Benjamin / Anthony Hughes	Tel: [phone]
London & Stamford Property Limited  Rochelle Thompson at Butterfield Fulcrum Group (Guernsey) Limited,  Company Secretary	Tel: [phone]
KBC Peel Hunt Capel Irwin /David Anderson/Anthony Bell (Corporate Finance)  Marianne Woods/Nicholas Marren (Corporate Broking)	Tel: [phone]

Notes to Editors

London & Stamford Property, an investment company based in Guernsey, is advised by LSI Management LLP ("LSIM") which has a highly experienced management team. The principal partners of LSIM include Raymond Mould, Patrick Vaughan, Martin McGann, Jeremy Bishop and Stewart Little. Raymond Mould, Patrick Vaughan and Martin McGann are also non-executive directors of London & Stamford Property.

The Company was established on 1 October 2007 in order to exploit opportunities that it anticipated in the UK property cycles to invest principally in commercial property.

The Company raised £247.5 million (gross proceeds) through a placing in November 2007 when it was admitted to trading on AIM (LSP.L).

In October 2007, the Company entered into a five year revolving credit facility with Bank of Scotland for £150 million. The facility is extendable by the Company for a further two years and carries a margin of 80 basis points over LIBOR.

The Company made no acquisitions during 2008, considering that market conditions did not offer sufficient value. The Company made its first acquisition in January 2009; One Fleet Place, and has now made a total of six new investments totalling £182 million.

In July 2009, the Company raised a further £225.8 million (gross proceeds) through a placing and open offer.

Further information on London & Stamford Property is available from the Company's website www.londonandstamford.com

END

  Chairman's statement

At the time of my last statement on 11 June 2009, I reported on the acquisition by London & Stamford of the office development at No 1 Whitehall Riverside Leeds, the exchange of contracts to acquire the Racecourse Retail Park at Aintree and the Somerfield Distribution Unit, Wellingborough. I am pleased to say that we completed these acquisitions later in June.

Our most recent acquisition in the period was completed late in September when we acquired a block of apartments, predominantly in the North Stand of the Stadium at Highbury Square in London for £41.4 million. I am delighted to report that we have already agreed to let 59 of the 146 apartments. This transaction was the first acquisition following our successful fundraising in July, through a placing and open offer of £225.8 million (£219.5 million net of expenses).

During the period and to date there has been a considerable strengthening in the market and a major shift in vendor expectation. There has been an increase in liquidity in the market, both in equity and in the availability of debt financing which is causing a tightening of yields. Increasing capital values are also narrowing the previous disparity between portfolio carrying values and market prices and easing pressure on potential vendors.

We consider now that the potential for obtaining value may lie in larger lot sizes, outside of the range of many real estate investors and we continue to examine several such opportunities. We are cautious of the risk that current lower yields may not persist given the continuing weakness of the underlying occupier market, the current state of the UK economy and the burgeoning deficit in the country's finances.

Results

The Group generated a profit for the six month period of £15.9 million (2008: loss of £1.9 million).

Earnings adjusted for the revaluation of investment properties, deferred taxation and the fair value of derivatives would be £4.8 million (2008: £1.6 million).

Net assets at 30 September 2009 were £521.4 million, equivalent to 104.3p per share.

The Board recommends an interim dividend of 2.2p per share (£11 million) in respect of the year to 31 March 2010, which will be accounted for, following its approval, in the second half of the year. We propose the payment of the interim dividend on 21 December 2009.

Portfolio

Our portfolio at the date of this report comprises the following assets bought during this calendar year:

	Ownership
One Fleet Place, London	100%	Offices
Whitehall Riverside, Leeds	100%	Offices
Meadowhall Shopping Centre, Sheffield	15.7%	Shopping Centre
Racecourse Retail Park, Aintree	100%	Retail Park
Somerfield Distribution Unit, Wellingborough	100%	Business Space
The North Stand Highbury	100%	Residential

The balance of the portfolio comprises those assets acquired at IPO.

Although the greatest part of recent improvement in yields has occurred post 30 September, these results include an uplift in values of £11.56 million.  Our acquisitions in the period and earlier in the calendar year have been characterised by the quality and security of income and long unexpired lease lengths. As capital values in the sector have improved, our portfolio has benefited.

We have also received the benefit in the period of a small uplift in the value of our interest in the Meadowhall Shopping Centre of £2.4 million, which reflects good letting and rent review results and the impact of the added security of our income.

Placing and Open Offer

During the period, the Company successfully raised £225.8 million (£219.5 million net of expenses) through a placing and open offer for 215 million new shares at a price of 105p per share.

72.5 million shares were placed and 88.8% of the open offer entitlement was taken up by qualifying shareholders. The balance of the open offer was placed with institutional and other investors to whom conditional placement had been agreed.

The fund raising followed the successful investment by the Group of £146.2 million of equity in five assets, taking advantage of market conditions which provided the opportunity to acquire prime assets with secure long term income on attractive terms. We considered that the environment looking forward would continue to provide the opportunity for such acquisitions and that therefore additional expansion capital was appropriate.

Borrowings

Our borrowings at the period end amounted to £141 million. The borrowings from HBoS, Postbank and Santander are secured against One Fleet Place, Whitehall Riverside and Aintree, together with various of the legacy assets.

Since the period end, we have agreed a new facility with Helaba in respect of Wellingborough and the legacy assets at Crawley and Nottingham.

Further to the completion of the new facility, we have repaid our debt with HBoS, such that all of the £150 million revolving credit facility, priced at 80bps over LIBOR, with five years unexpired is available for drawdown.

We have not sought debt finance for our acquisition at Highbury.

The overall level of gearing on our investment portfolio is 46%.

Cash Management

At the period end, our cash balance amounted to £290.7 million. As I have advised previously, the careful and secure management of our cash balance remains a key priority.

As the risk profile of the banks with which we place deposits has changed over the period so we have revised our treasury management criteria. We have cash on deposit with fifteen banks, with none holding more than 14% of our total cash.

Maturities for cash deposits vary, to ensure that we can execute transactions rapidly, with only 10% of our cash deposits maturing after more than three months. However, our average return on cash is only 0.59%, but exceeds the one month London interbank deposit rate of around 0.31%.

We propose to continue this cautious approach to the management of our cash balances, since our key purpose is to buy good property offering real value.

Outlook

There are tentative signs of recovery in the economy and in retail sales and the central London office market. We remain cautious in the face of the most difficult occupier market in my memory and pending evidence of a real and sustainable recovery.

 We are alert to the recovery process for the UK banking sector and believe that our combination of available equity and cheap debt and management expertise should allow us to add value to that process, in combination with a number of banks as they seek to work out their problem property portfolios.

As indicated in my statement in June and again in July, the Board continues to keep the prospect of moving to the main market of the London Stock Exchange and conversion into a UK Real Estate Investment Trust at the forefront of our planning, subject to satisfying the appropriate requirements.

H R Mould

Chairman

19 November 2009

  Group Income Statement

	Note	Unaudited Six months to 30 September 2009 £000	Unaudited Six months to 30 September 2008 £000	Audited Year to 31 March 2009 £000
Gross rental income		7,082	859	2,654
Other income		-	-	1,000
Property outgoings		(339)	(271)	(572)
Net income		6,743	588	3,082
Administrative expenses - general		(3,155)	(2,804)	(5,987)
Administrative expenses - goodwill impairment		-	(2,745)	(2,745)
Profit/(loss) on revaluation of investment properties	8	11,561	(4,892)	(4,938)
Profit on sale of investment properties		-	36	36
Share of profits of associates	9	3,860	-	23,599
Operating profit/(loss)		19,009	(9,817)	13,047
Finance income	4	766	6,980	10,613
Finance costs	4	(3,142)	(1,049)	(2,296)
Change in fair value of derivative financial instruments	4	(1,190)	265	(1,270)
Profit/(loss) before tax		15,443	(3,621)	20,094
Taxation	5	451	1,703	3,949
Profit/(loss) for the period and total comprehensive income attributable to equity shareholders		15,894	(1,918)	24,043
Earnings per share
Basic and diluted	7	4.5p	(0.7)p	8.4p

All amounts relate to continuing activities.

  Group Balance Sheet

	Note	Unaudited Six months to 30 September 2009 £000	Unaudited Six months to 30 September 2008 £000	Audited Year to 31 March 2009 £000
Non-current assets
Investment properties	8	303,908	47,540	127,147
Investment in associates	9	65,667	-	62,844
Deferred tax assets	5	6,026	2,893	5,172
Derivative financial instruments		-	84	-
		375,601	50,517	195,163
Current assets
Trade and other receivables	10	5,570	4,110	1,386
Other financial assets	11	43,510	103,833	-
Cash and cash equivalents	11	247,172	136,644	169,856
		296,252	244,587	171,242
Total assets		671,853	295,104	366,405
Current liabilities
Trade and other payables	12	8,704	1,373	3,429
		8,704	1,373	3,429
Non-current liabilities
Borrowings	13	139,114	21,934	69,634
Derivative financial instruments	13	2,641	-	1,451
Provisions		-	377	210
		141,755	22,311	71,295
Total liabilities		150,459	23,684	74,724
Net assets		521,394	271,420	291,681
Equity
Called up share capital	14	50,000	28,500	28,500
Special reserve		248,597	248,597	248,597
Share premium		198,019	-	-
Retained earnings		24,778	(5,677)	14,584
Total equity		521,394	271,420	291,681
Net asset value per share		104.3p	95.2p	102.3p

  Group Statement of Changes in Equity

As at 30 September 2009 (Unaudited)	Note	Share capital £000	Special reserve £000	Share Premium account £000	Retained earnings £000	Total £000
At 1 April 2009		28,500	248,597	-	14,584	291,681
Profit for the period and total comprehensive income		-	-	-	15,894	15,894
Issue of ordinary share capital		21,500	-	198,019	-	219,519
Dividends paid	6	-	-	-	(5,700)	(5,700)
At 30 September 2009		50,000	248,597	198,019	24,778	521,394

As at 30 September 2008 (Unaudited)	Note	Share capital £000	Special reserve £000	Share premium account £000	Retained earnings £000	Total £000
At 1 April 2008		28,500	248,597	-	801	277,898
Loss for the period and total comprehensive income		-	-	-	(1,918)	(1,918)
Dividends paid	6	-	-	-	(4,560)	(4,560)
At 30 September 2008		28,500	248,597	-	(5,677)	271,420

  Group Cash Flow Statement

	Unaudited Six months to 30 September 2009 £000	Unaudited Six months to 30 September 2008 £000	Audited Year to 31 March 2009 £000
Cash flows from operating activities
Profit/(loss) before tax	15,443	(3,621)	20,094
Adjustments for non-cash items:
(Profit)/loss on revaluation of investment properties	(11,561)	5,455	5,667
Profit on sale of investment properties	-	(36)	(36)
Share of post-tax profit of associates	(3,860)	-	(23,599)
Net finance costs/(income)	3,566	(6,196)	(7,047)
Cash flows from operations before changes in working capital	3,588	(4,398)	(4,921)
Change in trade and other receivables	(585)	3,556	3,473
Change in trade and other payables	2,913	127	1,954
Change in provisions	(210)	(563)	(730)
Cash flows from operations	5,706	(1,278)	(224)
Interest received	667	6,300	12,740
Interest paid	(2,092)	(1,034)	(1,616)
Financial arrangement fees (paid)/credited	(1,366)	3	(496)
Cash flows from operating activities	2,915	3,991	10,404
Investing activities
Purchase of investment properties	(163,330)	-	(77,531)
Purchase of rent guarantee arrangements	(3,500)	-	-
Capital expenditure on investment properties	(590)	(2,566)	(4,854)
Cash flow from/(to) associates	1,037	-	(39,245)
(Purchase)/sale of short-term financial deposits	(43,510)	(42,333)	61,500
Cash flows from investing activities	(209,893)	(44,899)	(60,130)
Financing activities
Proceeds from share issue	219,519	-	-
Dividends paid	(5,700)	(4,560)	(10,260)
New borrowings	118,205	-	47,730
Repayment of loan facilities	(47,730)	-	-
Cash flows from financing activities	284,294	(4,560)	37,470
Net increase/(decrease) in cash and cash equivalents	77,316	(45,468)	(12,256)
Cash and cash equivalents at beginning of period	169,856	182,112	182,112
Cash and cash equivalents at end of period	247,172	136,644	169,856

  Notes to the Half Year Report

1 General information

London & Stamford Property Limited is a limited liability investment company, incorporated and domiciled in Guernsey. The address of its registered office is Regency Court, Glategny Esplanade, St Peter Port, Guernsey.

The consolidated condensed financial statements of the Group for the half year to 30 September 2009 comprise the results of the Company and its subsidiaries and were authorised by the Board for issue on 19 November 2009.

2 Basis of preparation

The financial information contained in this report has been prepared in accordance with IAS 34 "Interim Financial Reporting".

The condensed financial statements for the half year are unaudited and do constitute statutory accounts for the purposes of The Companies (Guernsey) Law, 2008. They should be read in conjunction with the Group's annual financial statements for the year to 31 March 2009, which were prepared under IFRS and upon which an unqualified auditors' report was given.

The accounting policies adopted are consistent with those as reported in the Group's annual financial statements for the year to 31 March 2009, and in accordance with those the Group expects to be applicable at 31 March 2010. 

During the period two new accounting standards, IAS 1 "Presentation of financial statements amendment" and IFRS 8 "Operating Segments" have been adopted. The adoption of these standards has had no impact on the financial statements, other than on presentation and disclosure.

3 Segmental information

During the period the Group operated in one business segment, being property investment and development in the United Kingdom and as such no further segmental information is provided.

4 Finance income and costs

	Unaudited Six months to 30 September 2009 £000	Unaudited Six months to 30 September 2008 £000	Audited Year to 31 March 2009 £000
Finance income
Interest on short-term deposits	766	6,980	10,613
Fair value gain on derivative financial instruments	-	265	-
	766	7,245	10,613
Finance costs
Interest on bank loans	2,771	943	1,721
Amortisation of loan issue costs	371	106	575
Fair value loss on derivative financial instruments	1,190	-	1,270
	4,332	1,049	3,566

5 Taxation 

	Unaudited Six months to 30 September 2009 £000	Unaudited Six months to 30 September 2008 £000	Audited Year to 31 March 2009 £000
The tax credit comprises:
Current tax
UK income tax charge on profit	403	-	33
Deferred tax
Change in deferred tax	(854)	(1,703)	(3,982)
	(451)	(1,703)	(3,949)

Deferred tax asset

	Revaluation deficit £000	Other  temporary and deductible differences £000	Losses £000	Total £000
At 31 March 2009 (audited)	2,351	374	2,447	5,172
Credited during the period in the income statement	82	366	406	854
At 30 September 2009 (unaudited)	2,433	740	2,853	6,026

Deferred tax on the revaluation deficit is calculated on the basis of the capital losses that would crystallise on the sale of the investment property portfolio as at 30 September 2009. The Group does not have unprovided deferred tax assets.

6 Dividends

	Unaudited Six months to 30 September 2009 £000	Unaudited Six months to 30 September 2008 £000	Audited Year to 31 March 2009 £000
Ordinary dividends
Amounts recognised as distributions to equity holders	5,700	4,560	10,260
Proposed dividend of 2.2p per share (30 September 2008: 2p, 31 March 2009: 2p)	11,000	5,700	5,700

The interim dividend was approved by the Board on 18 November 2009 and has not been included as a liability or deducted from retained earnings as at 30 September 2009. The interim dividend is payable on 21 December 2009 to ordinary shareholders on the register at the close of business on 27 November 2009 and will be recognised as an appropriation of earnings in the six months to 31 March 2010.

7 Earnings per share

Earnings per share of 4.5p (30 September 2008: (0.7)p and 31 March 2009: 8.4p) is calculated on a weighted average of 356,666,667 (30 September 2008 and 31 March 2009: 285,000,000) ordinary shares of 10p each and is based on profits attributable to ordinary shareholders of £15.9 million (30 September 2008: loss of £1.9 million and 31 March 2009: profit of £24.0 million).

There are no potentially dilutive or anti-dilutive share options in the current or previous periods.

Adjusting earnings for the effects of revaluing investment properties, deferred taxation and fair value of derivatives results in attributable profits of £4.8 million or 1.4p per share (30 September 2008: £1.6 million or 0.6p per share and 31 March 2009: £27.0 million or 9.5p per share).

8 Investment properties

	Unaudited  30 September 2009			Audited  31 March 2009
	Freehold £000	Long leasehold £000	Total £000	Freehold £000	Long leasehold £000	Total £000
Opening balance	119,306	7,841	127,147	40,940	8,430	49,370
Acquisitions	124,088	40,042	164,130	77,531	-	77,531
Other capital expenditure	590	480	1,070	4,848	6	4,854
Disposals	-	-	-	-	1,059	1,059
Revaluation movement	10,263	1,298	11,561	(4,013)	(1,654)	(5,667)
Closing balance	254,247	49,661	303,908	119,306	7,841	127,147

At 30 September 2009, the majority of the Group's investment properties were externally valued by CB Richard Ellis Limited, Chartered Surveyors at £297.4 million. The valuations were undertaken in accordance with the Royal Institution of Chartered Surveyors' Appraisal and Valuation Standards on the basis of market value, which recognises significantly increased risk under current market conditions. Market value represents the estimated amount for which a property would be expected to exchange at the date of valuation between a willing buyer and willing seller in an arm's-length transaction. A deduction is made to reflect purchasers' acquisition costs. The lack of liquidity in the property market increases the risk attaching to property valuations 

The remaining investment properties were valued by the Directors at £6.5 million (31 March 2009: £6.5 million). 

The historical cost of all of the Group's investment properties at 30 September 2009 was £301.6 million (31 March 2009: £136.4 million).

The loss on revaluation recognised in the income statement in the previous period of £4.9 million includes a credit of £0.7 million for the movement in the provision of enhanced management fees payable to third parties on future disposals.

9 Investment in associate

	Unaudited Six months to 30 September 2009 £000	Unaudited Six months to 30 September 2008 £000	Audited Year to 31 March 2009 £000
Opening balance	62,844	-	-
Additions at cost	440	-	39,245
Share of profit	3,860	-	23,599
Profit distributions received	(1,477)	-	-
Closing balance	65,667	-	62,844

In the previous year the Group entered into a new joint venture arrangement with Green Park Investments, a wholly owned subsidiary of a major Gulf institution. The Group has a 31.4% interest in this entity, LSP Green Park Property Trust, which is equity accounted for as an associate. LSP Green Park Property Trust acquired a 50% interest in the Meadowhall Shopping Centre from The British Land Company PLC on 11 February 2009.

The Group's 31.4% share of the profit after tax and net assets of its associate is as follows:

	30 September 2009 £000	31 March 2009 £000
Summarised income statement of associate
Net rental income	5,997	1,715
Administration expenses	(490)	(475)
Movement in fair value of net assets acquired over consideration paid	(172)	20,476
Surplus on revaluation of investment properties	2,371	3,063
Net finance costs	(3,650)	(1,120)
Tax	(196)	(60)
Profit after tax	3,860	23,599
Summarised balance sheet of associate
Property assets	189,970	187,599
Current assets	4,909	4,540
Current liabilities	(5,288)	(5,730)
Borrowings	(106,676)	(106,557)
Other non-current liabilities	(17,248)	(17,008)
Net assets	65,667	62,844

The investment properties were valued on an open market value basis by CB Richard Ellis Limited, Chartered Surveyors, in accordance with the Royal Institution of Chartered Surveyors Appraisal and Valuation Standards.

  10 Trade and other receivables

	Unaudited As at 30 September 2009 £000	Unaudited As at 30 September 2008 £000	Audited As at 31 March 2009 £000
Trade receivables	1,313	218	61
Amounts receivable on property sales	-	210	-
Amounts receivable from income guarantees	3,500	-	-
Interest receivable	200	2,908	101
Prepayments and accrued income	70	84	636
Other receivables	487	690	588
	5,570	4,110	1,386

All amounts under receivables fall due for payment in less than one year.

11 Cash and cash equivalents

Cash and cash equivalents include £3.9 million (31 March 2009: £2.5 million) retained in rent and restricted accounts which are not readily available to the Group for day-to-day commercial purposes.

Total cash deposits at 30 September 2009 are £290.7 million, of which £43.5 million are disclosed as other financial assets in the balance sheet as their original maturity was more than three months.

12 Trade and other payables

	Unaudited As at 30 September 2009 £000	Unaudited As at 30 September 2008 £000	Audited As at 31 March 2009 £000
Trade payables	381	69	751
Amounts payable on property acquisitions	1,280	-	-
Rent received in advance	4,135	440	1,394
Accrued interest	1,189	314	510
Other payables	520	10	31
Other accruals and deferred income	763	540	710
Income tax payable	436	-	33
	8,704	1,373	3,429

  13 Borrowings

	Unaudited As at 30 September 2009 £000	Unaudited As at 30 September 2008 £000	Audited As at 31 March 2009 £000
Secured bank loans	141,025	22,820	70,550
Unamortised finance costs	(1,911)	(886)	(916)
	139,114	21,934	69,634

The bank loans are secured by fixed charges over certain of the Group's investment properties.

The Group had available but undrawn bank loan facilities of £127.2 million at 30 September 2009, maturing between two and five years.

On 30 October 2009 the Group repaid debt of £22.8 million, thereby increasing the undrawn bank facility to £150 million.

Details of the fair value of the Group's derivative financial instruments that were in place at 30 September 2009 are provided below:

	Protected rate %	Expiry	Market value 31 March 2009 £000	Movement recognised in income statement £000	Market value 30 September 2009 £000
£10 million swap	3.61	October 2012	(386)	40	(346)
£38.4 million swap	3.68	June 2014	-	(1,052)	(1,052)
£24.5 million swap	3.29	May 2014	-	(273)	(273)
£43 million swap	3.77	October 2014	(1,518)	101	(1,417)
£17.5 million cap	4.00	October 2014	453	289	742
£12.3 million swap	3.90	October 2014	-	(295)	(295)
			(1,451)	(1,190)	(2,641)

Derivative financial instruments 

All derivative financial instruments are non-current interest rate derivatives, and are carried at fair value following a valuation as at 30 September 2009 by JC Rathbone Associates Limited.

14 Share capital

	Unaudited 30 September 2009 Number	Unaudited 30 September 2009 £000	Audited 31 March 2009 Number	Audited 31 March 2009 £000
Authorised
Ordinary shares of 10p each	Unlimited	Unlimited	500,000,000	50,000

	Unaudited 30 September 2009 Number	Unaudited 30 September 2009 £000	Audited 31 March 2009 Number	Audited 31 March 2009 £000
Issued, called up and fully paid
Ordinary shares of 10p each	500,000,000	50,000	285,000,000	28,500

On 30 July 2009 an additional 215 million ordinary shares of 10p each were issued by way of a Placing and Open Offer, and were admitted to trading on AIM. The share issue raised net proceeds of £219.5 million.

  15 Related party transactions and balances

The interests of the Directors and their families in shares of the Company are as follows:

	Ordinary shares of 10p each 30 September 2009	Ordinary shares of 10p each 30 September 2008	Ordinary shares of 10p each 31 March 2009
H R Mould	7,500,000	5,294,130	5,294,130
P L Vaughan	6,941,330	5,865,130	5,836,130
M F McGann	142,857	–	–
R J Crowder	100,000	–	–
L R H Grant	150,000	–	–
R A R Evans	700,000	500,000	500,000
P A S Firth	25,000	–	–

There has been no change in the beneficial and non-beneficial shareholdings of the Directors between 30 September 2009 and the date of this report.

Fees are paid to certain non-executive Directors who are not members of LSI Management LLP, the Property Advisor to the Group. Directors fees of £89,000 (30 September 2008: £83,000, 31 March 2009: £165,000) were paid in the period. At 30 September 2009 £42,000 (30 September 2008: £42,000, 31 March 2009: £41,000) remained outstanding and is reflected in the period end creditor balance.

Mr H R Mould, Mr P L Vaughan and Mr M F McGann are designated members of LSI Management LLP, the Property Advisor to the Group. The Property Advisor received £2.7 million (30 September 2008: £2.4 million, 31 March 2009: £4.8 million) for the services of property management during the period. At 30 September 2009 £571,000 remained outstanding, in the previous period none of the fee remained outstanding.

Transactions between the Company and its subsidiaries which are related parties have been eliminated on consolidation.

 

END

 

 

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