RNS Number:0444Q
Newport Holdings PLC
23 September 2003
NEWPORT HOLDINGS PLC
23 SEPTEMBER 2003
INTERIM RESULTS
For the Six Months Ended 30 June 2003
Newport Holdings PLC ("Newport" or "the Company"), the fully listed property
investment company, announces interim results for the six months ended 30 June
2003.
Highlights
* Profit Before Tax increased by 41% to #619,000 (June 2002: #440,000)
* Basic Earnings per Share rose to 1.97p (June 2002: 1.90p)
* NAV rose to 203p (December 2002: 201p)
* #350,000 capital expenditure programme undertaken, of which #250,000 to be
spent on Albert Buildings, City of London and the office complex at
Hanworth, Greater London
* Recommended cash offer by Mintglade Limited at 130 pence in cash per each
Newport ordinary share which will value the entire issued share capital of
Newport at approximately #27.8m
Chairman's Statement
The Board has agreed with Mintglade Limited the terms of recommended cash offer
to be made by Shore Capital and Corporate Limited on behalf of Mintglade Limited
to acquire the entire issued and to be issued share capital of Newport.
The offer will be 130 pence in cash for each Newport ordinary share and which
will value the entire issued and to be issued share capital of Newport at
approximately #27.8m.
Further details of this offer are set out in the separate offer announcement.
In my statement with the annual report for 2002, I said that we were seeking to
maximize the returns to be gained from our existing portfolio. In this area we
have made a lot of progress, and the Board anticipates that we will achieve
better returns on lower costs, and create healthy growth in the future from the
base we have now established.
Results and Dividend
To date this progress has produced a 41% increase in profit before tax of
#619,000 for the six months to 30 June 2003 (2002: #440,000), compared to the
similar period last year, while basic earnings per share rose to 1.97p (2002:
1.90p).
In line with previous practice, the Board is not recommending the payment of an
interim dividend but, if circumstances permit, will consider the resumption of a
progressive dividend policy when the outcome of the full year's performance is
known.
Operational Review
In June we announced the leasing of part of our ABC Cinema complex as a club/
cafe bar, which will raise the income on this site from #30,000 per annum
to#225,000 per annum after the tenant fits out. We continue to generate other
interest on this site, which has the potential of yielding in excess of #400,000
per annum. We have also let an empty building on our Llantrisant industrial site
as a day nursery and are negotiating a further lease on the remaining void. Our
existing tenant at our site at Leeway has renewed for a further 10 years. We are
entering detailed discussions on our industrial site at Brynmawr to gain
planning consent for residential development. At Cwmbran we are proceeding to
develop a nightclub/restaurant complex now that we have received the required
planning consents.
Our major development at Salubrious Place, Swansea, commenced in March 2003, is
proceeding apace, helped by the weather, and is on time and budget. There is a
great deal of interest in the remaining units un-let at time of commencement.
In June we acquired the retail warehouse site next to our existing investment in
Carmarthen for #2,525,000 enabling us to develop plans for further retail
development on this key edge of town area. We are confident that rent reviews in
this busy town will be progressive. We also completed the sale of the restaurant
in Ransomes Quay, Battersea let to Cafe Rouge, for #940,000 during the period.
Since the end of the period under review we have concluded a number of
transactions. We have agreed to sell our investment in Weybridge, let to T&S
Stores, for #600,000; a retail unit, let to Iceland at Southsea, for #800,000
and a retail unit in Dundee for #125,000. All sales have been in excess of book
values. Strategically we have determined to sell our London residential flats
acquired as part of a portfolio in July 2002. These are of high quality and are
predominately let on short lease. As they become vacant we will sell all the
flats.
In 2000 we purchased a leisure investment in Blackpool let to Bass, which was
subject to deferred consideration dependent on rent review negotiations. These
negotiations have now been concluded and the annual rent has been increased from
#165,000 to #195,000 per annum. As a result of this rent increase, and under a
contractually agreed formula, a final settlement of deferred consideration of
#420,000 was paid to the vendor, made up of #150,000 in Newport ordinary shares
and #270,000 of cash.
We have embarked on a capital expenditure programme to realise greater potential
from existing investments. This will amount to some #350,000 of which
approximately #250,000 is being spent on the refurbishment of Albert Buildings
in the City of London and at our office complex at Hanworth, Greater London.
Both were in dire state of repair when we acquired them in late 2002.
At Albert Buildings we have sorted out a long standing issue with the head
lessee, the Crown Estate, and now have secured interest for the empty retail
units in this building. We have appointed First Base who are experts in short
term lets to manage the office floors. With refurbishment and modernisations now
concluding they have secured both lettings and a good level of potential
interest. The increasing level of occupancy will add value to our earnings
potential.
At Hanworth we have a satisfactory level of income but have two retail units to
let and a substantial office area, which was not in a state to be let. This is
now being fitted out to cater for either multi-let or single tenancies. With its
easy access to the Heathrow area this will attract interest and increase the
earnings potential of this investment.
Elsewhere we have identified opportunities now being explored, managed rent
reviews, and have identified a number of areas of latent potential to be
released.
Outlook
Among our stated objectives was to review all costs and the first half results
reflect part of the reductions achievable. The Board anticipates that this
review will have a positive effect on this, and future years, performance. In
addition, our policy of bringing more rent collections in house has been a great
success not only in cost effectiveness but also in our control of cash flow.
I should like to thank my board colleagues and all staff for their hard work and
diligent support in the year to date.
Bob Carlton-Porter
Executive Chairman
22 September 2003
Consolidated Profit and Loss Account
6 Months to 6 Months to 12 Months to
30 June 2003 30 June 2002 31 Dec 2002
(unaudited) (unaudited) (audited)
#000 #000 #000
Turnover - continuing activities 5,329 4,534 9,974
Administration expenses - normal (580) (695) (1,978)
- exceptional - - (954)
Operating income 20 1 847
Operating profit - continuing activities 4,769 3,840 7,889
Profit on disposal of investment property 83 33 56
Interest receivable 48 12 34
Interest payable and similar charges (4,281) (3,445) (7,499)
Profit on ordinary activities before taxation 619 440 480
Tax on profit on ordinary activities (205) (122) (35)
Retained profit for the period attributable
to shareholders 414 318 445
Earnings per ordinary share for the
period - basic 1.97p 1.90p 2.40p
Earnings per ordinary share for the
period - diluted 1.96p 1.87p 2.39p
Consolidated Balance Sheet as at 30 June 2003
30 June 2003 30 June 2002 31 December 2002
(unaudited) (unaudited) (audited)
#000 #000 #000
Fixed assets
Investment properties 157,469 150,554 156,432
Other tangible fixed assets 9 16 9
Properties under development 3,388 - -
160,866 150,570 156,441
Current assets
Debtors 3,140 2,681 3,361
Cash at bank and in hand 1,309 1,129 2,256
4,449 3,810 5,617
Creditors: (amounts falling due within one year) (16,288) (15,500) (15,550)
Net current liabilities (11,839) (11,690) (9,933)
Total assets less current liabilities 149,027 138,880 146,508
Creditors: (amounts falling due
after more than one year) (105,119) (98,048) (103,217)
Deferred tax (1,396) (1,282) (1,193)
Net assets 42,512 39,550 42,098
Capital and reserves
Called up share capital 5,247 5,088 5,247
Share premium account 19,679 18,940 19,679
Revaluation reserve 14,146 13,058 14,146
Reserve arising on acquisition 616 616 616
Capital redemption reserve 138 138 138
Profit and loss account 2,686 1,710 2,272
Equity shareholders' funds 42,512 39,550 42,098
Net assets per share 203p 194p 201p
Consolidated Cash Flow Statement for the period ended 30 June 2003
6months 6 months Year to
ended ended 30 31 December
30 June 2003 June 2002 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000 #'000
Net cash inflow from operating 3,780 3,569 7,715
activities
Returns on investments and servicing
of finance
Interest received 48 12 34
Interest paid (3,898) (2,989) (6,911)
Finance costs paid - - (592)
(3,850) (2,977) (7,469)
Net (outflow)/inflow (70) 592 246
Taxation 59 (3) (91)
Capital expenditure and financial
investments
Purchase of investment properties (3,929) (5,114) (9,954)
Purchase of other tangible fixed assets (2) - -
Sale of investment properties 1,733 1,083 2,606
(2,198) (4,031) (7,348)
Acquisitions
Investments in subsidiary undertakings - (200) (536)
Cash acquired with subsidiaries - - -
- (200) (536)
Net (outflow) (2,209) (3,642) (7,729)
Equity dividends paid - (326) (326)
Cash outflow before use of liquid (2,209) (3,968) (8,055)
resources and financing
Financing
Issue costs of shares issued for - (10) (13)
non-cash consideration
Increase/(reduction) in debt 842 4,125 9,314
842 4,115 9,301
Increase/(decrease) in cash in the period 1,367 147 1,246
Notes to the interim accounts
1. The financial information set out above relating to the results of Newport
Holdings PLC for the period ended 30th June 2003 and the year ended 31st
December 2002 does not constitute statutory accounts within the meaning of
Section 240 of the Companies Act 1985. The Group's auditors have audited the
statutory accounts for the year ended 31st December 2002 and have issued an
unqualified report thereon within the meaning of Section 235 of the Companies
Act 1985. Statutory accounts for the year ended 31st December 2002 have been
delivered to the Registrar of Companies.
2. There has been no significant change in accounting policies since the last
audited accounts.
3. The tax charge for the period is as follows:
6 months to 6 months to 6 months to
30 June 2003 30 June 2002 31 December 2002
#'000 #'000 #'000
Current corporation tax 2 - 2
Deferred tax 203 122 33
Total 205 122 35
4. The company does not intend to pay an interim dividend on the ordinary
shares.
5. Earnings per ordinary share have been calculated on the weighted average
number of ordinary shares in issue during the period of 20.99 million (6 months
to 30th June 2002: 16.76 million, 12 months to 31st December 2002:18.56
million). Earnings per ordinary share (diluted) have been calculated on 21.08
million shares (6 months to 30th June 2002: 16.99 million 12 months to 31st
December 2002:18.63 million). The dilution is due to the share option scheme.
6. Net assets per ordinary share have been calculated using the net assets
attributable to the ordinary shares divided by the number of ordinary shares in
issue at the end of the period of 20.99 million (30th June 2002: 20.35 million,
31st December 2002: 20.99 million).
7. Copies of the announcement will be sent to shareholders and will be available
for inspection at the Company's registered office at Narrow Quay House, Narrow
Quay, Bristol, BS1 4AH.
This information is provided by RNS
The company news service from the London Stock Exchange
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