TIDMCDFF
RNS Number : 4187N
Cardiff Property PLC
09 May 2018
THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY
AND ITS SUBSIDIARIES
FOR RELEASE 7.00 AM 9 May 2018
THE CARDIFF PROPERTY PLC
The group, including Campmoss, specialises in property
investment and development in the Thames Valley. The total
portfolio under management, valued in excess of GBP25m, is
primarily located to the west of London, close to Heathrow Airport
and in Surrey and Berkshire.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 31 MARCH 2018
Highlights:
Six months Six months Year
31 March 31 March 30 September
2018 2017 2017
(Unaudited) (Unaudited) (Audited)
Revenue GBP'000 336 284 552
Net assets per share GBP 21.67 19.07 21.26
Profit before tax GBP'000 715 561 3,359
Earnings per share
(basic and diluted) pence 52.4 39.2 253.7
Interim/total dividend
per share pence 4.4 4.00 15.5
Gearing % Nil Nil Nil
Richard Wollenberg, Chairman, commented:
The Thames Valley commercial property market continues to
experience a good level of tenant demand although it is noticeable
that a more cautious attitude is currently being taken leading to
requests for shorter leases or break clauses. Office and industrial
rental levels remain firm and it is particularly encouraging to
report that in certain Thames Valley locations further growth is
being predicted.
Concerns regarding Brexit, the UK economy and increases in
interest rates are still apparent, yet the commercial property
investment market remains active as investors seek to obtain higher
rates of return than those available in other markets.
For further information:
The Cardiff Property plc Richard Wollenberg 01784 437444
Stockdale Securities Richard Johnson 020 7601 6100
LEI: 213800GE3FA4C52CIN05
THE CARDIFF PROPERTY PLC
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 31 MARCH 2018
INTERIM MANAGEMENT REPORT
The Thames Valley commercial property market continues to
experience a good level of tenant demand, although it is noticeable
that a more cautious attitude is currently being taken leading to
requests for shorter leases or break clauses. Office and industrial
rental levels remain firm and it is particularly encouraging to
report that in certain Thames Valley locations further growth is
being predicted.
Concerns regarding Brexit, the UK economy and increases in
interest rates are still apparent, yet the commercial property
investment market remains active as investors seek to obtain higher
rates of return than those available in other markets.
As anticipated last year the slow down in activity in the
residential market has resulted in lower values, particularly at
the high end of the market. At the lower range the majority of
properties have retained their value and it is noticeable that
first time buyers are benefitting from the government's various
Help to Buy schemes. This is particularly evident at our joint
venture residential developments in Bracknell.
Financial
For the six months ending 31 March 2018 profit before tax
amounted to GBP0.72m (March 2017: GBP0.56m; September 2017:
GBP3.36m). This figure includes an after-tax profit from Campmoss
Property Company Limited, our 47.62% joint venture, of GBP0.36m
(March 2017: GBP0.27m; September 2017: GBP1.84m).
Revenue for the six months to 31 March 2018, represented by
rental income, totalled GBP0.34m (March 2017: GBP0.28m; September
2017: GBP0.55m). The group's share of revenue from Campmoss was
GBP0.80m (March 2017: GBP0.53m; September 2017: GBP1.22m),
represented by rental income of GBP0.59m (March 2017: GBP0.53m;
September 2017: GBP0.98m) and property sales of GBP0.21m (March
2017: GBPnil; September 2017: GBP0.24m). Rental income and sales
figures for Campmoss are not included in group revenue.
The comparable figures in brackets relate to the periods six
months ending 31 March 2017 and the year end 30 September 2017.
Net assets of the group as at 31 March 2018 were GBP27.26m
(March 2017: GBP24.23m; September 2017: GBP26.86m), equivalent to
GBP21.67 per share (March 2017: GBP19.07; September 2017:
GBP21.26). The company's share of net assets of Campmoss, included
on the group balance sheet, amounted to GBP15.22m (March 2017:
GBP13.29m; September 2017: GBP14.86m).
Your directors are of the opinion that, other than as mentioned
in this report, there is no material change in the value of the
group's property portfolio as at 31 March 2018.
During the six months to 31 March 2018 the company purchased
5,809 of its own shares (March 2017: nil; September 2017: 7,128
shares). There have been no material events or material changes in
assets, liabilities or related party relationships since 30
September 2017.
Current IFRS accounting recommends that deferred tax is
chargeable on the difference between the indexed cost of properties
and quoted investments and their current market value. However,
current IFRS accounting does not require the same treatment in
respect of the Group's unquoted investment in Campmoss Property,
our 47.62% owned joint venture. The investment in Campmoss is a
substantial part of the company's net assets and for indicative
purposes a disposal of this investment based on the value in the
company's balance sheet at the 31 March 2018 could generate a tax
liability of GBP2.59m (March 2017: GBP2.26m, September 2017:
GBP2.53m), equivalent to 206p per share (March 2017: 178p,
September 2017: 200p). This information is provided to shareholders
as an additional, non-statutory disclosure.
Dividend
Your directors have declared an interim dividend of 4.4p
(interim March 2017: 4p; final September 2017: 11.5p), an increase
of 10% which will be paid on 5 July 2018 to shareholders on the
register at 1 June 2018.
Investment and Development Portfolio
The group's freehold property portfolio, including those held by
Campmoss, continues to be concentrated in the Thames Valley to the
west of London and close to Heathrow Airport.
The office and retail investment at The White House, Egham,
comprising five ground floor retail units with offices above, is
fully occupied. The majority are let on medium term leases, some of
which include annual rental increases. One of the upper floor
office suites is anticipated to be vacated at the end of the year
and discussions with prospective tenants are ongoing.
The Maidenhead Enterprise Centre, Maidenhead, offers six
business units totalling 14,000 sq. ft. is fully let and
negotiations with one of the tenants for a lease renewal is in
progress.
The Windsor Business Centre, Windsor, comprises four business
units totalling 9,500 sq. ft., all of which are let. Planning
permission was recently granted to increase the useable office area
within one of the units and a further application to achieve
additional space at the other three units is being prepared.
Cowbridge Road, Cardiff, comprises a 14,650 sq. ft. commercial
property on two floors and is let to Royal Mail for use as a mail
sorting office. The lease expires in June 2019 and discussions with
the Royal Mail to extend their lease are in progress. Plans to
increase the useable floor space are under negotiations with the
local authority.
Heritage Court, Egham, comprises four retail units with eight
residential apartments on the upper three floors. The apartments
were previously sold on long leaseholds. The retails units are
fully let with one of the units recently re-let on a medium-term
lease achieving an increase in rental.
The company occupies its own freehold office in Egham and
retains as an investment a freehold residential property in Egham.
Following the grant of planning permission, works to extend and
upgrade the residential property are expected to complete in July
this year.
At Tilehurst, Reading, our outline residential planning
application was refused and further discussions are taking place
with the local planning authority.
Campmoss Property Company Limited and subsidiaries
Campmoss continues with its extensive programme of planning,
re-development, sales and letting. Currently the main development
and sales activity is in Bracknell, Berkshire. Bracknell has
benefitted from the recent opening of the Lexicon Shopping Centre
and the improvement of rail connections to Waterloo.
At Alston House, Market Street, Bracknell, the construction of
ten new retail units on the ground and first floor and 12
residential units on the second and third floors is well advanced.
This development is expected to complete by summer 2018 and the
majority of retail units are under offer.
At Westview, adjacent to Alston House, the development of eight
retail units on ground and first floors was completed last year and
are all let on either medium or long term leases.
Gowring House, Market Street, Bracknell, previously an office
building on ground and five upper floors was converted to provide
three retail units on the ground floor and 30 residential
apartments on the upper floors. The retail units are all let on
medium term leases and sales of 22 apartments have completed, five
of which took place in the first half of this year. The remaining
eight residential units include a show apartment and three
apartments let on yearly lease agreements. Two units for sale are
currently under offer.
Following the sale of Worplesdon View, Worplesdon, Campmoss
continue to own an adjacent 2.5-acre site which, subject to
planning, may be available for alternative uses.
At Britannia Wharf, Woking, planning permission was granted in
July 2017 for an 82-bedroom care home and discussions with
prospective management companies are taking place. An alternative
residential scheme remains under detailed discussion with the local
authority.
At Clivemont House and Highway House, Maidenhead, planning
permissions were previously granted for separate office schemes
together totalling over 90,000 sq. ft. In view of the uncertain
local office market, commencement of these developments will only
proceed when a significant pre-letting is achieved. A planning
application for a residential scheme at Clivemont House has been
submitted.
At The Priory, Burnham, the 26,000 sq. ft. building consists of
new office premises on three floors totalling 17,000 sq. ft. and an
adjoining Grade II Listed office building of 9,000 sq. ft. which is
used as a Business Centre. Following negotiations, two existing
tenants have reorganised their space requirements and part of the
office space in the new building and Business Centre is currently
being marketed. Plans over the next few years include submitting a
planning application for re-development of the site.
Relationship Agreement
The company has entered into a written and legally binding
relationship agreement with myself, its controlling shareholder, to
address the requirements of LR9.2.2AR of the Listing Rules.
Outlook
The economy and the property market have performed significantly
better than predicted at the time of the Brexit vote and the
General Election. Interest rates remain low and projected increases
are limited. If the economy remains resilient the property market
should perform likewise.
The group should benefit from the completion of its current
development programme and I therefore look forward to reporting
further at the year end.
J Richard Wollenberg
Chairman
8 May 2018
Condensed Consolidated Interim Income Statement
FOR THE SIX MONTHSED 31 MARCH 2018
Six months Six months Year
31 March 31 March 30 September
2018 2017 2017
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Revenue 336 284 552
Cost of sales (25) (9) (57)
______ ______ ______
Gross profit 311 275 495
Administrative expenses (295) (272) (511)
Other operating income 314 261 577
______ ______ ______
Operating profit before gains
on investment properties and other
investments 330 264 561
Surplus on revaluation of investment
properties - - 905
______ ______ ______
Operating profit 330 264 1,466
Financial income 25 27 54
Share of results of joint venture 360 269 1,839
______ ______ ______
Profit before taxation 715 561 3,359
Taxation (53) (62) (141)
______ ______ ______
Profit for the period attributable
to equity holders 662 498 3,218
______ ______ ______
Earnings per share on profit for
the period - pence
Basic and diluted 52.4 39.2 253.7
______ ______ ______
Dividends
Final 2017 paid 11.5p (2016: 10.4p) 145 132 132
Interim 2017 paid 4.0p - - 51
______ ______ ______
145 132 183
______ ______ ______
Final 2017 paid 11.5p - - 145
Interim 2018 proposed 4.4p (2017:
4.0p) 55 51 -
______ ______ ______
55 51 145
______ ______ ______
These results relate entirely to continuing operations. There
were no acquisitions or disposals during these periods.
Condensed Consolidated Interim Statement of Comprehensive Income
and Expense
FOR THE SIX MONTHSED 31 MARCH 2018
Six months Six months Year
31 March 31 March 30 September
2018 2017 2017
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Profit for the financial period 662 498 3,218
Other items recognised directly
in equity
Net change in fair value of available
for sale assets (13) 27 72
Net change in fair value of other
properties - - 30
______ ______ ______
Total comprehensive income and expense
for the period attributable to equity
holders of the parent company 649 525 3,320
______ ______ ______
Condensed Consolidated Interim Balance Sheet
AT 31 MARCH 2018
31 March 31 March 30 September
2018 2017 2017
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Non-current assets
Freehold investment properties 5,863 4,880 5,792
Property, plant and equipment 301 275 303
Investment in joint venture 15,224 13,294 14,864
Other financial assets 1,058 969 1,071
Deferred tax asset - 2 5
______ ______ ______
Total non-current assets 22,446 19,420 22,035
______ ______ ______
Current assets
Stock and work in progress 668 668 668
Trade and other receivables 150 405 91
Financial assets 1,851 1,070 1,370
Cash and cash equivalents 2,991 3,405 3,485
______ ______ ______
Total current assets 5,660 5,548 5,614
______ ______ ______
Total assets 28,106 24,968 27,649
______ ______ ______
Current liabilities
Trade and other payables (701) (599) (629)
______ ______ ______
Total current liabilities (701) (599) (629)
______ ______ ______
Non-current liabilities
Deferred tax liability (143) (137) (160)
______ ______ ______
Total non-current liabilities (143) (137) (160)
______ ______ ______
Total liabilities (844) (736) (789)
______ ______ ______
Net assets 27,262 24,232 26,860
______ ______ ______
Equity
Called up share capital 252 254 253
Share premium account 5,076 5,076 5,076
Other reserves 2,760 2,696 2,772
Investment property revaluation
reserve 997 2,935 997
Retained earnings 18,177 13,271 17,762
______ ______ ______
Shareholders' funds attributable
to equity holders 27,262 24,232 26,860
______ ______ ______
Net assets per share GBP21.67 GBP19.07 GBP21.26
______ ______ ______
Condensed Consolidated Interim Statement of Cash Flows
FOR THE SIX MONTHSED 31 MARCH 2018
Six months Six months Year
31 March 31 March 30 September
2018 2017 2017
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit for the period 662 498 3,218
Adjustments for:
Depreciation 3 3 5
Financial income (25) (27) (54)
Share of profit of joint venture (360) (269) (1,839)
Surplus on revaluation of investment
properties - - (905)
Taxation 53 62 141
______ ______ ______
Cash flows from operations before
changes in
working capital 333 267 566
(Increase)/decrease in trade
and other receivables (57) (61) 1
Increase/(decrease) in trade
and other payables 6 (21) 57
______ ______ ______
Cash generated from operations 282 185 624
Tax paid - (1) (107)
______ ______ ______
Net cash flows from operating
activities 282 184 517
______ ______ ______
Cash flows from investing activities
Interest received 23 28 56
Acquisition of investments, and
property, plant and equipment (71) (100) (164)
(Increase)/decrease in cash deposits
with a maturity of > 90 days (481) (23) (323)
______ ______ ______
Net cash flows from investing
activities (529) (95) (431)
______ ______ ______
Cash flows from financing activities
Purchase of own shares (102) - (116)
Dividends paid (145) (132) (183)
Loan repaid by Joint Venture - 1,250 1,500
______ ______ ______
Net cash flows from financing
activities (247) 1,118 1,201
______ ______ ______
Net (decrease)/increase in cash
and cash equivalents (494) 1,207 1,287
Cash and cash equivalents at
beginning of period 3,485 2,198 2,198
______ ______ ______
Cash and cash equivalents at
end of period 2,991 3,405 3,485
______ ______ ______
Condensed Consolidated Interim Statement of Changes in
Equity
FOR THE SIX MONTHSED 31 MARCH 2018
Investment
Share property
Share premium Other revaluation Retained Total
capital account reserves reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 October 2016 254 5,076 2,669 3,749 12,091 23,839
Profit for the period - - - - 498 498
Other comprehensive
income - revaluation
of investments - - 27 - - 27
Transactions with equity
holders
Dividends - - - - (132) (132)
______ ______ ______ ______ ______ ______
Total transactions with
equity holders - - - - (132) (132)
______ ______ ______ ______ ______ ______
Realisation of revaluation
reserve - - - (814) 814 -
______ ______ ______ ______ ______ ______
At 31 March 2017 254 5,076 2,696 2,935 13,271 24,232
Profit for the period - - - - 2,720 2,720
Other comprehensive
income - revaluation
of investments - - 45 - - 45
Revaluation of other
property - - 30 - - 30
Transactions with equity
holders
Dividends - - - - (51) (51)
Purchase of own shares (1) - 1 - (116) (116)
______ ______ ______ ______ ______ ______
Total transactions with
equity holders (1) - 1 - (167) (167)
______ ______ ______ ______ ______ ______
Realisation of revaluation
reserve - - - (3,136) 3,136 -
Transfer on revaluation
of investment properties
- Cardiff - - - 905 (905) -
Transfer on revaluation
of investment properties
- Campmoss - - - 293 (293) -
______ ______ ______ ______ ______ ______
At 30 September 2017 253 5,076 2,772 997 17,762 26,860
Profit for the period - - - - 662 662
Other comprehensive
income - revaluation
of investments - - (13) - - (13)
Transactions with equity
holders
Dividends - - - - (145) (145)
Purchase of own shares (1) - 1 - (102) (102)
______ ______ ______ ______ ______ ______
Total transactions with
equity holders (1) - 1 - (247) (247)
______ ______ ______ ______ ______ ______
At 31 March 2018 252 5,076 2,760 997 18,177 27,262
______ ______ ______ ______ ______ ______
Statement of Responsibility
FOR THE SIX MONTHSED 31 MARCH 2018
The directors are responsible for preparing the condensed
consolidated interim financial statements for the six months ended
31 March 2018 and they confirm, to the best of their knowledge and
belief, that:
-- the condensed consolidated set of interim financial
statements for the six months ended 31 March 2018 has been prepared
in accordance with IAS 34 - Interim Financial Reporting, as adopted
by the EU;
-- the interim management report includes a fair review of the information required by:
a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first
six months of the financial year and their impact on the condensed
set of interim financial statements and a description of the
principal risks and uncertainties for the remaining six months of
the year; and
b) DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first six
months of the current financial year and that have materially
affected the financial position or performance of the group during
that period; and any changes in the related party transactions
described in the last annual report that could do so.
J Richard Wollenberg, Chairman
Karen L Chandler, Finance director
Nigel D Jamieson, Independent non-executive director
8 May 2018
Notes to the Condensed Consolidated Interim Financial
Statements
FOR THE SIX MONTHS ENDED 31 MARCH 2018
1. Basis of preparation
This condensed set of financial statements has been prepared in
accordance with IAS 34 - Interim Financial Reporting as adopted by
the EU.
The annual financial statements of the group are prepared in
accordance with International Financial Reporting Standards (IFRSs)
as adopted by the EU. As required by the Disclosure and
Transparency Rules of the Financial Conduct Authority, the
condensed set of financial statements has been prepared applying
the accounting policies and presentation that were applied in the
preparation of the group's published consolidated financial
statements for the year ended 30 September 2017.
The comparative figures for the financial year ended 30
September 2017 are not the group's statutory accounts for that
financial year. Those accounts have been reported on by the group's
auditor and delivered to the registrar of companies. The report of
the auditor was: unqualified; did not give any reference to any
matters to which the auditor drew attention by way of emphasis
without qualifying their report; and did not contain a statement
under sections 498 (2) or (3) of the Companies Act 2006.
Accounting policies
The condensed consolidated interim financial statements have
been prepared applying the accounting policies that were applied in
the preparation of the group's published financial statements for
the year ended 30 September 2017.
There are no IFRSs and Interpretations which have been endorsed
in the period to 31 March 2018, which have had a material impact on
these interim financial statements.
Use of estimates and judgement
The preparation of financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expense. Actual results
may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the
period in which the estimates are revised and in any future periods
affected. The key areas in which estimates have been used and the
assumptions applied are in valuing investment properties and
properties in the joint venture, in valuing available for sale
assets, in classifying properties and in the calculating of
provisions.
An external, independent valuer, having an appropriate
recognised professional qualification and recent experience in the
location and category of property being valued, values the
company's property portfolio at the end of each financial year. The
directors of the joint venture value its portfolio each year; such
valuation takes into account yields on similar properties in the
area, vacant space and covenant strength. The directors of the
group and joint venture review the valuations for the interim
financial statements.
A provision is recognised in the balance sheet when the group
has a present legal or constructive obligation as a result of a
past event and it is probable that an outflow of economic benefit
will be required to settle the obligation. If the effect is
material, provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the
risks specific to the liability.
Going concern
The group has sufficient financial resources to enable it to
continue in operational existence for the foreseeable future, to
complete the current maintenance and development programme and meet
its liabilities as they fall due. Accordingly, the directors
consider it appropriate to continue to adopt the going concern
basis in preparing these interim financial statements.
Notes to the Condensed Consolidated Interim Financial
Statements
FOR THE SIX MONTHS ENDED 31 MARCH 2018 (continued)
2. Segmental analysis
The group manages its operations in two segments, being property
and other investments and property development. The results of
these segments are regularly reviewed by the board as a basis for
the allocation of resources, in conjunction with individual site
investment appraisals and to assess their performance. Information
regarding the revenue and profit before taxation for each
reportable segment is set out below:
Six months Six months Year
31 March 31 March 30 September
2018 2017 2017
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Revenue (wholly in the United
Kingdom)
Property and other investments
being gross rents
Receivable 336 284 552
______ ______ ______
Profit before taxation
Property and other investments 595 472 3,211
Property development 120 89 148
______ ______ ______
715 561 3,359
______ ______ ______
The operations of the group are not seasonal.
3. Taxation
The tax position for the six-month period is estimated on the
basis of the anticipated tax rates applying for the full year.
4. Dividends
The interim dividend of 4.4p per share will be paid on 5 July
2018 to shareholders on the register on 1 June 2018. Under
accounting standards this dividend is not included in the condensed
consolidated interim financial statements for the six months ended
31 March 2018.
5. Earnings per share
Earnings per share has been calculated using the profit after
tax for the period of GBP662,000 (March 2017: GBP498,000; September
2017: GBP3,218,000) and the weighted average number of shares as
follows:
Weighted average number of shares
31 March 31 March 30 September
2018 2017 2017
Basic and diluted 1,261,654 1,270,709 1,278,420
_________ _________ _________
Directors and Advisers
Directors Auditor
J Richard Wollenberg KPMG LLP
Chairman and chief executive
Karen L Chandler FCA
Finance director Stockbrokers and financial advisers
Stockdale Securities Limited
Nigel D Jamieson BSc, FCSI
Independent non-executive director
Secretary Bankers
Karen L Chandler FCA HSBC Bank plc
Non-executive director of wholly owned Solicitors
subsidiary
First Choice Estates plc Blake Morgan LLP
Derek M Joseph BCom, FCIS
Head office Registrar and transfer office
56 Station Road Neville Registrars Limited
Egham, TW20 9LF Neville House
Telephone: 01784 437444 18 Laurel Lane
Fax: 01784 439157 Halesowen
E-mail: webmaster@cardiff-property.com B63 3DA
Web: www.cardiff-property.com Telephone: 0121 585 1131
Registered office Registered number
56 Station Road 00022705
Egham, TW20 9LF
Financial Calendar
2018 9 May Interim results for 2018 announced
31 May Ex-dividend date for interim dividend
1 June Record date for interim dividend
5 July Interim dividend to be paid
30 September End of accounting year
December Final results for 2018 announced
2019 January Annual General Meeting
February Final dividend to be paid
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BLGDUIGGBGII
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May 09, 2018 02:01 ET (06:01 GMT)
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