RNS Number:6669I
CW Residential PLC
13 March 2003
CW RESIDENTIAL PLC
AUDITED RESULTS FOR THE YEAR TO 31 DECEMBER 2002 AND PROPOSED FINAL DIVIDEND
TRADING RESULTS
Trading results for the year ended 31 December 2002 show a profit before
taxation of #807,426 (2001: #202,312). Turnover for the year was #3,610,110
(2001: #1,229,771). Earnings per share were 14.58 pence (2001: 4.53 pence), an
increase of 221.9%
DIVIDENDS
The directors propose a final dividend of 1.35 pence per share (2001: 1.2
pence), subject to shareholder approval at the Annual General Meeting on 15
April 2003, which you should then receive on 18 April 2003. This will bring the
total dividend in respect of the year ended 31 December 2002 up to 2.7 pence
(2001: 2.4 pence), an increase of 12.5% over the previous year.
NET ASSETS
Taking account of the above final dividend being payable and the portfolio
revaluation as at 31 December 2002 by Barton Rix, Chartered Surveyors, net
assets at 31 December 2002 increased by 21.1% to 148.4 pence per share (2001:
122.5 pence). The revaluation of investment properties, which is based on the
tenanted status of the properties at 31 December 2002, gave rise to a surplus of
#518,500 (2001: #451,911), which has been transferred to our revaluation
reserve. Our development properties are held at the lower of cost and net
realisable value.
INVESTMENT DIVISION
During the year your Group completed the sale of investment properties totalling
#1,380,486 (2001: #1,674,929). Since then there has been a further sale of
#88,000, which is above the valuation as at 31 December 2002 referred to above.
There were no purchases of investment properties during the year. In the
current market, it continues to be difficult to acquire investment stock at what
your directors believe to be sensible prices.
DEVELOPMENT DIVISION
With regard to your Group's development portfolio, during 2002 all 13 flats at
Maidstone were sold, 14 of the 17 units at Wells were sold, as was the last flat
at our Cheltenham development. Of the remaining units at Wells, since the year
end another unit has been sold and contracts have since been exchanged on the
remaining 2 units.
In Edgbaston, we have now received full detailed planning consent for both our
Grade II listed houses, and so the conversion works (into 8 flats) are now
underway with a current estimated sales value of around #1.4m. Completion of
works is expected before the end of the year. In Rochester, we have now
received a revised planning permission for 23 flats and hope to commence
construction during the next 3 months with completion of construction expected
next spring, with a current estimated sales value of around #2.4m.
FUTURE DIRECTION
Trading profits in 2002 were good as your group was able to dispose of 28
development house/flats in a strong housing market. Due to the timing of our
development programme, we only have a maximum of 11 units available for sale
this year, namely the 3 remaining units at Wells plus up to 8 flats at
Edgbaston, provided that construction is completed on schedule etc. However, in
2004, we expect to have 23 flats for sale from our Rochester development. Apart
from the size of the development programme, the other main determining factor
regarding profitability is the general strength of the housing market. At the
time of writing, this market is weakening and the rate of increase in house
prices is slowing. Therefore shareholders should not expect the same margins of
profitability to apply in the future as experienced in 2002. A successful
housing market depends on, amongst many factors, continuing consumer confidence
as well as a stable international situation, neither of which currently exist.
As a result, shareholders should not expect to see the same level of increase in
the value of the company investment portfolio as has been seen in the recent
past.
Whilst your directors will continue to try to maintain a balance between
investment and development properties (provided that additional investment
properties can be acquired at what the directors believe to be sensible prices
in the current market) your group, with substantial cash balances and no
indebtedness, is well placed to take advantage of any interesting situations
(including corporate) that may occur during 2003.
Once again, I should like to take this opportunity of thanking my fellow
director and our professional advisers for all their support over the last year.
Robert Dory
Chairman
13 March 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 December 2002
2002 2001
Note # #
TURNOVER 1 3,610,110 1,229,771
Cost of Sales 1 (2,631,625) (855,972)
--------- ----------
GROSS PROFIT 1 978,485 373,799
Administrative expenses (255,343) (230,740)
--------- ----------
OPERATING PROFIT 723,142 143,059
Profit on sale of investment properties 76,115 100,624
Income from other fixed asset investments 1,667 8,001
Interest receivable and similar income 29,485 14,722
Interest payable (22,983) (64,094)
-------- ----------
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 807,426 202,312
Taxation on profit from ordinary activities (205,046) (8,456)
--------- ----------
PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 602,380 193,856
Dividends 2 (110,092) (101,820)
--------- ----------
PROFIT FOR THE FINANCIAL YEAR 492,288 92,036
========= =========
BASIC EARNINGS PER SHARE 3 14.58p 4.53p
All amounts above relate to continuing activities.
CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2002
Note 2002 2001
# # # #
FIXED ASSETS
Tangible fixed assets
Investment properties 3,146,889 3,874,692
Other 4,771 9,433
--------- --------
3,151,660 3,884,125
Investments 267,249 267,249
--------- ---------
3,418,909 4,151,374
CURRENT ASSETS
Stock 1,309,294 2,456,461
Debtors 104,904 75,151
Cash at bank 1,635,646 1,875
--------- ---------
3,049,844 2,533,487
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR (476,461) (930,929)
--------- ---------
NET CURRENT ASSETS 2,573,383 1,602,558
--------- ---------
TOTAL ASSETS LESS CURRENT LIABILITIES 5,992,292 5,753,932
CREDITORS: AMOUNTS FALLING DUE AFTER ONE
YEAR - (616,303)
--------- ---------
5,992,292 5,137,629
========= =========
CAPITAL AND RESERVES
Called up share capital 2,018,750 2,096,250
Share premium 535,207 535,207
Capital redemption reserve 160,000 82,500
Revaluation reserve 1,392,104 1,252,342
Profit and loss account 1,886,231 1,171,330
--------- ---------
EQUITY SHAREHOLDERS' FUNDS 5,992,292 5,137,629
========= =========
NET ASSET VALUE PER SHARE 148.4p 122.5p
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2002
2002 2001
Note # # # #
OPERATING ACTIVITIES
Net cash inflow/(outflow) from 1,936,471 (968,536)
operating activities
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest paid (22,983) (64,094)
Interest received and similar 29,485 14,722
income
Dividend received - 8,001
-------- --------
Net cash inflow/ (outflow) from
returns on investments and
servicing of finance 6,502 (41,371)
TAXATION
Net corporation tax (paid)/ (14,118) 9,070
received
CAPITAL EXPENDITURE AND FINANCIAL
INVESTMENT
Purchase of fixed assets (10,893) (430,713)
Proceeds from sale of fixed 1,333,311 721,857
assets
--------- --------
Net cash inflow from capital
expenditure and financial
investment 1,322,418 291,144
EQUITY DIVIDENDS PAID (105,896) (103,200)
--------- ---------
NET CASH INFLOW/(OUTFLOW) BEFORE
MANAGEMENT OF LIQUID RESOURCES
AND FINANCING 3,145,377 (812,893)
FINANCING
Repurchase of own shares (156,125) (92,400)
------- --------
(156,125) (92,400)
--------- --------
INCREASE/(DECREASE) IN CASH IN 5 2,989,252 (905,293)
THE YEAR
========== =========
NOTES TO THE ACOUNTS FOR THE YEAR ENDED 31 DECEMBER 2002
1. Turnover and profit recognition
Turnover is derived entirely from the group's principal activities and arose
wholly within the United Kingdom. Direct expenses on rental income include
letting fees, maintenance and property insurance.
2002 2001
# #
TURNOVER
Rent receivable 189,620 276,699
Proceeds from sales of development properties 3,420,490 953,072
--------- -------
3,610,110 1,229,771
========= =========
COST OF SALES
Direct expenses on rental income 132,980 171,564
Cost of sales of development properties 2,498,645 684,408
--------- -------
2,631,625 855,972
========= ========
GROSS PROFIT
Rental income profit 56,640 105,135
Profit on sales of development properties 921,845 268,664
-------- --------
978,485 373,799
======== ========
2. Dividends
The directors propose a final dividend of 1.35 pence per share (2001: 1.2
pence), subject to shareholder approval at the Annual General Meeting on 15
April 2003, payable on 18 April 2002 to shareholders on the register on 21 March
2003 with an ex-dividend date of 19 March 2002.
3. Basic earnings per share
The calculation of basic earning per share is based on the profit on ordinary
activities after taxation of #602,380 (2001: #193,856) and on the weighted
average ordinary shares of 4,132,158 (2001: 4,276,667) in issue during the year.
As at 31 December 2002 there were no options and/or financial instruments in
existence which, when exercised or converted, would result in any increase in
the current number of ordinary shares over and above those in existence at that
date.
4. Reconciliation of operating profit to net cash outflow/(outflow) from
operating activities
2002 2001
# #
Operating profit 723,142 143,059
Depreciation 4,118 4,118
Loss on disposal of assets 544 -
(Increase) in debtors (29,753) (44,768)
Increase in creditors 91,253 49,070
Decrease/(increase) in development properties 1,147,167 (1,120,015)
--------- --------
Net cash inflow/(outflow) from operating activities 1,936,471 (968,536)
========= ========
5. Reconciliation of net cash outflow to movement in net debt/funds
CASH
#
Increase in cash in the year 2,989,252
Less: Opening net borrowings (1,353,606)
---------
Closing net cash 1,635,646
=========
6. Financial Information
The financial information for the year ended 31 December 2002 set out in this
announcement does not comprise statutory accounts within the meaning of section
240 of the Companies Act 1995. Full accounts for the year ended 31 December
2002 will be filed with the Registrar of Companies.
Copies of the Report and Accounts will be sent to shareholders. Additional
copies of the Report and Accounts and copies of this announcement will be
available from the Company's registered office at No 1 Riding House Street,
London W1A 3AS
Enquiries to: Smith & Williamson Corporate Finance (Financial Advisers to CW Residential PLC)
Attention: Andy Pedrette
Tel: 020 7637 5377
and Teather & Greenwood Ltd (Nominated Adviser and Broker to CW Residential PLC)
Attention: Jeff Keating
13 March 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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