RNS Number:3322K
DEV Property Development PLC
20 December 2007
Dev Property Development plc
Interim Report
For the six months ended 30 September 2007
Chairman's statement
Introduction
I have pleasure in reporting Dev Property Development plc's six months results
to 30 September 2007.
Our strategy is to focus on investment in commercial real estate developments
(which includes the Information Technology ('IT') and Information Technology
Enabled Services ('ITES') sectors) ('Commercial/ IT-ITES') and residential real
estate developments in Tier 1 cities in India such as Mumbai, the NCR (being the
area around Delhi), Kolkata, Bangalore, Chennai and Hyderabad. In addition, the
Company also intends to focus on investments in Special Economic Zones ('SEZs')
in India.
In January 2007 we raised GBP 138 million from the AIM market of the London
Stock Exchange and invested �122 million (about 88%) of the net proceeds raised
at flotation in the Seed Portfolio Assets. These comprise minority interests in
three projects, two of which are Commercial/IT-ITES projects suitable for a
broad tenant range located in the Lower Parel area of central Mumbai (the
'Jupiter Mills Project' and the 'Elphinstone Mills Project') and one
multi-product SEZ in the Mumbai Metropolitan Region (the 'Raigarh SEZ Project')
in India.
Operational Review
The investments in the two Commercial/IT-ITES projects have appreciated by 25%
i.e. to GBP 103 million as at 30 September 2007 as compared to GBP 82 million as
at March 2007 mainly due to the underlying increase in the rental rates and
redesigned development plan. The redesigned development plan, as a result of an
amendment to the Mumbai development code, allows the development of commercial /
mall space components in the IT Park. Additionally, we have also included a
residential component to diversify sources of revenue.
The update on the Seed Portfolio Assets is as follows:
Jupiter Mills
* Construction proceeds as per plan at the Jupiter Mills site and the
project is currently on schedule to be completed by middle of 2008. More
than 1,000 people are working on-site.
* Leasing activity: Jones Lang Lasalle has been appointed as Consultants to
identify potential tenants for the Building, negotiating terms and
conditions for the lease of the Building etc.
* Several international banks, investment banking firms, consulting firms,
large corporates and other international companies have expressed interest
in leasing space from 100,000 to 450,000 sq ft space. Currently letters of
intent for approximately 0.5 million sq ft of leasable area have been
entered into and the lease rental rates are at the higher end of prior
assumption (in the range of Rs. 250 to Rs. 275 per sq ft). Discussions are
at an advanced stage to lease out a substantial part of the remaining space
in the near future. The rental revenue stream is expected to commence from
second quarter of 2008.
Elphinstone Mills
* Commencement Certificate (CC) received from the Municipal Corporation of
Greater Mumbai (MCGM) on 17 February 2007. With this, MCGM has authorised
construction to begin.
* Civil construction work has started at the site. The construction is
expected to be completed in phases by the end of 2008.
Raigarh SEZ Project
* Land acquisition process at Raigarh SEZ project is under progress.
Outlook
The strong demand for prime commercial space in Mumbai has been reflected in the
low vacancy rates of 2.0% to 3.0% and appreciation in lease rentals. Due to
scarcity of high-end mall space in Mumbai, the lease value for malls continue to
increase. Prospects for the Commercial/Mall/ IT-ITES market remain positive in
India, especially in Mumbai, driven by strong economic growth, lack of
competitive supply and robust underlying demand.
Chairman's statement continued
The development of the Seed Portfolio Assets is proceeding as per the timetable
and I am confident that the work undertaken by the management team, coupled with
current favourable market conditions, will yield a profitable return on our
investments.
Rishi Khosla
Chairman
19 December 2007
Consolidated Income Statement
For the six months to 30 September 2007
Notes Unaudited Audited for the
six period from 20
months to 30 December 2006
September 2007 to 31 March
2007
�'000 �'000
------------ ----------
Bank interest 250 86
Fair value gain on investments 7 19,714 -
--------------------------- ------ ------------ ----------
Investment income 19,964 86
--------------------------- ------ ------------ ----------
Investment manager's fees (1,222) (427)
Performance fees (1,173) -
Directors' fees (178) (65)
Audit and professional fees (185) (349)
Other expenses (59) (32)
Foreign exchange gain/(loss) 44 (3)
--------------------------- ------ ------------ ----------
Administrative expenses (2,773) (876)
--------------------------- ------ ------------ ----------
--------------------------- ------ ------------ ----------
Net income before finance
costs 17,191 (790)
--------------------------- ------ ------------ ----------
Finance costs - -
--------------------------- ------ ------------ ----------
Profit/(loss)before tax 17,191 (790)
Income tax expense - -
--------------------------- ------ ------------ ----------
Retained profit/(loss)
for the period from
continuing operations 17,191 (790)
--------------------------- ------ ------------ ----------
-
--------------------------- ------ ------------ ----------
Basic and diluted
profit/(loss)per share
(pence) 4 12.46 (0.57)
--------------------------- ------- ------------ ----------
The accompanying notes on pages 7 to 10 form an integral part of these unaudited
consolidated financial statements
Consolidated Balance Sheet
As at 30 September 2007
Notes Unaudited Audited for the
six period from 20
months to 30 December 2006
September 2007 to 31 March
2007
�'000 �'000
--------------------------- ------- ------------ ----------
Investments 7 141,550 121,836
--------------------------- ------- ------------ ----------
Total non-current assets 141,550 121,836
--------------------------- ------- ------------ ----------
Trade and other receivables 49 111
Cash and cash equivalents 8,551 10,232
--------------------------- ------- ------------ ----------
Total current assets 8,600 10,343
--------------------------- ------- ------------ ----------
Total assets 150,150 132,179
--------------------------- ------- ------------ ----------
Issued share capital 6 1,380 1,380
Share premium 130,572 130,572
Retained profit/(loss) 16,401 (790)
--------------------------- ------- ------------ ----------
Total equity 148,353 131,162
--------------------------- ------- ------------ ----------
Trade and other payables 624 1,017
Performance fees payable 1,173 -
--------------------------- ------- ------------ ----------
Total current liabilities 1,797 1,017
--------------------------- ------- ------------ ----------
Total
liabilities 1,797 1,017
--------------------------- ------- ------------ ----------
Total equity and liabilities 150,150 132,179
--------------------------- ------- ------------ ----------
--------------------------- ------- ------------ ----------
The loss incurred by the company for the period ended 30 September 2007 was
�105,000.
The accompanying notes on pages 7 to 10 form an integral part of these unaudited
consolidated financial statements
Approved by the Board of Directors on 19 December 2007
Director Director
Richard Melhuish Ita McArdle
Consolidated Cash Flow Statement
For the six months to 30 September 2007
Notes Unaudited Audited for the
six period from 20
months to 30 December 2006
September 2007 to 31 March
2007
�'000 �'000
--------------------------- ------ ------------ ----------
Operating activities Profit/(Loss)
before tax for the period 17,191 (790)
Adjustments for:
Fair value gain on investments (19,714) -
Foreign exchange loss (44) 3
--------------------------- ------ ------------ ----------
Operating (loss) before
changes in working capital (2,567) (787)
(Increase)/Decrease in trade
and other receivables 62 (111)
Increase in trade and
other payables 780 580
--------------------------- ------ ------------ ----------
Cash used in operating
activities (1,725) (318)
--------------------------- ------ ------------ ----------
Investing activities - -
Investments - (121,836)
-
--------------------------- ------ ------------ ----------
Cash used in investing
activities - (121,836)
--------------------------- ------ ------------ ----------
Financing activities
Proceeds from the issue of
ordinary share capital - 138,000
Share issue expenses paid - (5,611)
--------------------------- ------ ------------ ----------
Cash flow from financing
activities - 132,389
--------------------------- ------ ------------ ----------
Foreign exchange loss 44 (3)
--------------------------- ------ ------------ ----------
(Decrease)/Increase in cash
and short term deposits (1,681) 10,232
--------------------------- ------ ------------ ----------
--------------------------- ------ ------------ ----------
Cash and short term deposits
as at 1 April 2007 10,232 -
--------------------------- ------ ------------ ----------
Cash and short term deposits
as at 30 September 2007 8,551 10,232
=========================== ====== ============ ==========
Interest received in
the period 250 81
=========================== ====== ============ ==========
Consolidated Statement of Changes in Equity
GROUP Share capital Share premium Retained profit Total
/(loss)
�'000 �'000 �'000 �'000
------------------- --------- ---------- ---------- ----------
Balance at 1
April 2007 1,380 130,572 (790) 131,162
Shares issued in the - - - -
period
Share issue costs - - - -
Retained profit for the
period - - 17,191 17,191
------------------- --------- ---------- ---------- ----------
Balance at 30
September 2007 1,380 130,572 16,401 148,353
------------------- --------- ---------- ---------- ----------
For the period from Share capital Share premium Retained loss Total
incorporation on 20
December 2006 to 31
March 2007
�'000 �'000 �'000 �'000
------------------- --------- ---------- ---------- ----------
On incorporation - - - -
Shares issued in the
period 1,380 136,620 - 138,000
Share issue costs - (6,048) - (6,048)
Retained (loss) for
the period - - (790) (790)
------------------- --------- ---------- ---------- ----------
Balance at 31 March
2007 1,380 130,572 (790) 131,162
------------------- --------- ---------- ---------- ----------
Notes to the Consolidated Financial Statements
for the six months ended 30 September 2007
1 General information
Dev Property Development plc (the "Company") is a company incorporated and
domiciled in the Isle of Man whose shares are publicly traded on AIM.
The consolidated financial statements of Dev Property Development plc to
comprise the company and its subsidiaries (together referred to as the "Group").
The Company acts as the investment holding company of the Group.
This interim financial information for the period ended 30 September 2007 has
been prepared in accordance with International Accounting Standard 34 "Interim
reporting", as adopted by the European Union, is unaudited and does not
constitute statutory accounts within the meaning of the Companies Acts 1931 to
2004. The comparatives are for the period ended 31 March 2007, the auditor's
report on those accounts was unqualified.
The statutory accounts for the period ended 31 March 2007 which were prepared in
accordance with International Financial Reporting Standards, as endorsed by the
European Union (IFRS), have been filed and copies can be obtained from the
Registered Office of the Company at Top Floor, 14 Athol Street, Douglas, Isle of
Man. This unaudited interim financial information includes the results of the
Company and its wholly owned subsidiaries for the period under review.
2 Significant Accounting Policies
a)Basis of preparation
This unaudited interim financial information for the period ended 30 September
2007 has been prepared by applying the accounting policies and presentation that
were applied in the preparation of the Group's published consolidated financial
statements for the period ended 31 March 2007 and expects to apply for the year
ended 31 March 2008. The Company is denominated in Sterling. This unaudited
financial information has been presented in Sterling.
b)Investments
The Company has designated its investments into the financial assets at fair
value through profit or loss category, as they are managed and their performance
evaluated on a fair value basis.
Investment transactions are accounted for on their trade dates. Realised gains
or losses on investment transactions are determined on the basis of the average
cost of the investment sold. All realised and unrealised gains or losses on
investments are recognised in the income statement in the period in which they
occur.
All listed or quoted investments are booked at cost on purchase and subsequently
re-measured at fair value. Fair value is based on the quoted bid price.
Fair values for unquoted securities are estimated by the Directors using
discounted cash flow models or applicable price/earning ratios refined to
reflect the specific circumstances of the issuer or any other fair valuation
method accepted by the Directors.
c)Performance fees
The provision for performance fees payable to the Investment Manager represents
the directors estimate of the present value of the future cash flows payable,
discounted using the Directors' estimate of the risk adjusted value of money.
These fees are considered to be directly attributable to the acquisition by the
Group of its investment in its associates and the amount provided has been
included in the cost of the Group's investment in associates. Subsequent to the
date of acquisitions, revisions to these provisions are charged to the income
Statement.
Notes to the Consolidated Financial Statements
for the six months ended 30 September 2007
Continued
3 Segment Reporting
The directors consider the Group to be operating in one geographic segment and
one business segment since all investments are in India and all the operations
in India are concerned with property development. Consequently no segmental
disclosures have been presented.
4 Earnings per share
The calculation of the basic and diluted earnings per share is based on the
following data:-
Unaudited six Audited for the
months period
to 30 September from 20
2007 December 2006
to 31 March
2007
Earnings
------------------------------ ------------ ------------
Earning for the purpose of basic and diluted
earnings per share (profit for the period
attributable to the per share (profit for the
period attributable to the 17,191 (790)
equity holders of the parent) (�'000)
------------------------------ ------------ ------------
Number of shares
------------------------------ ------------ ------------
Weighted average number of ordinary shares
for the Purpose of basic and diluted earnings 1,380 1,380
per share (thousands) ------------ ------------
------------------------------
Basic and diluted earnings per share 12.46 (0.57)
------------------------------ ------------ ------------
5 Net assets per share
Unaudited six Audited for the
months period from 20
December 2006
to 31 March
2007 �'000
to 30 September
2007
�'000
------------ ------------
Net assets
------------------------------ ------------ ------------
Net assets for the purpose of
assets per share (assets
attributable to the equity
holders of the parent) 148,353 131,162
------------------------------ ------------ ------------
Number of shares
------------------------------ ------------ ------------
Number of ordinary
shares for the purpose of 138,000 138,000
net assets per share (000's)
------------------------------ ------------ ------------
Net assets per share �1.07 �0.95
------------------------------ ------------ ------------
Notes to the Consolidated Financial Statements
for the six months ended 30 September 2007
Continued
6 Share Capital
Audited for the
Unaudited six period from 20
months December 2006
to 30 September to 31 March 2007
2007
�'000 �'000
---------------------------- -------------- -------------
Authorised 3,000 3,000
300,000,000 ordinary shares of
1 pence each -------------- -------------
----------------------------
Issued and
fully paid 1,380 1,380
138,000,000 ordinary shares of
1 pence each -------------- -------------
----------------------------
7 Investments
Investments are carried at fair value IAS 39. All investee companies are
incorporated in India and are unquoted.
Percentage of equity held
30 September 31 March 2007
2007
----------------- ---------
Indiabulls Properties Private Limited ("IPPL") 13% 5.05
---------------------------- ----------------- ----------
Indiabulls Real Estate Company Limited
("IRECPL") 13% 5.05
---------------------------- ----------------- ----------
Indiabulls Infrastructure Development
Limited ("IIDL") 8.11 8.11
---------------------------- ----------------- ----------
Investments and Deposits on investments are carried at fair value as follows:
Cost Fair value Fair value
Adjustment
�'000 �'000 �'000
---------------------------- --------- ------------ --------
Investments
---------------------------- --------- ------------ --------
Balance as at 31 March 2007 71,205 - 71,205
---------------------------- --------- ------------ --------
Transfer from deposits 50,631 - 50,631
---------------------------- --------- ------------ --------
Movement - 19,714 19,714
---------------------------- --------- ------------ --------
Balance as at 30 September 2007 121,836 19,714 141,550
---------------------------- --------- ------------ --------
Deposits
---------------------------- --------- ------------ --------
Balance as at 31 March 2007 50,631 - 50,631
---------------------------- --------- ------------ --------
Transfer to investments (50,631) - (50,631)
---------------------------- --------- ------------ --------
Balance as at 30 September 2007 - - -
---------------------------- --------- ------------ --------
Total as at 30 September 2007 121,836 19,714 141,550
---------------------------- --------- ------------ --------
A deposit of �50,631,000 has been made in respect of a 7.95% stake in "IPPL"
(being 227,421 equity shares at a transfer price of Rs. 11,630 per share) and
"IRECPL" (being 245,932 equity shares at a transfer price of Rs. 7,030 per
share). The specified number of shares at the agreed price are awaiting
execution of the share transfer only and all the risks and rewards of ownership
of the shares lie with subsidiaries of Dev Property Development plc.
Notes to the Consolidated Financial Statements
for the six months ended 30 September 2007
Continued
8 Post balance sheet events
There are no significant post balance sheet events.
9 The Board of Directors approved this unaudited interim financial information
on 19 December 2007; it has not been audited but has been reviewed by the
auditors.
SHAREHOLDER INFORMATION AND CORPORATE DETAILS
Directors: Investment manager Auditors
Rishi Khosla FoundVest Limited Ernst & Young LLC
Non-executive director 77 Strovolos Avenue Rose House
Strovolos Centre 51-59 Circular Road
Sameer Gehlaut Office 201 DOUGLAS
Non-executive director 2018 Strovolos Isle of Man
Resigned 26 September Nicosia IM1 1AZ
2007
Alan Kingsley CYPRUS British Isles
Non-executive director
Nominated advisor and CREST Service Provider
broker
Ita Mary McArdle
Non-executive director Deutsche Bank AG Capita Registrars (Jersey)
Limited
London Branch Victoria Chambers
Richard Marcus Melhuish 1 Great Winchester Liberation Square
Non-executive director Street 1/3 The Esplanade
LONDON St. Helier
EC2N 2DB JERSEY
Atal Kumar Shukla
Non-executive director
Administrator and
Tarun Tyagi registrar
Non-executive Simcocks Trust Limited
Appointed 26 September Top Floor
2007
14 Athol Street
Registered office: DOUGLAS
Isle of Man
Top Floor IM1 1JA
14 Athol Street British Isles
DOUGLAS
Isle of Man
IM1 1JA Industry consultant and
British Isles Property valuers
Registered number: Knight Frank India
Registered in the Isle Limited
of Man No: 118630c Udyog Bhavan, 1st Floor
29 Walchand Hirachand
Marg
Ballard Estate
Mumbai 400 038
Company secretary: INDIA
Anne Elizabeth Couper
Woods
Independent review report to Dev Property Development plc
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly report for the six months ended 30 September 2007
which comprises the consolidated income statement, the consolidated balance
sheet, the consolidated cash flow statement, the consolidated statement of
changes in equity and the related notes 1 to 9 . We have read the other
information contained in the half-yearly financial report and considered whether
it contains any apparent misstatements or material inconsistencies with the
financial information in the condensed set of financial statements.
Our report has been prepared in accordance with the terms of our engagement to
assist the company in meeting the requirements of the London Stock Exchange for
companies trading securities on the Alternative Investment Market ("AIM Rules")
and for no other purpose. No person is entitled to rely on this report unless
such a person is a person entitled to rely upon this report by virtue of and for
the purpose of our terms and engagement or has been expressly authorised to do
so by our prior written consent. Save as above, we do not accept responsibility
for this report to any other person or for any other purpose and we hereby
expressly disclaim any and all such liability.
Directors' responsibilities
The half-yearly financial report, is the responsibility of, and has been
approved by the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the rules of the London Stock
Exchange for companies trading securities on the Alternative Investment Market
which require that the half yearly report be presented and prepared in a form
consistent with that which will be adopted in the company's annual accounts
having regard to the accounting standards applicable to such annual accounts.
As disclosed in note 1, the annual financial statements of the group are
prepared in International Financial Reporting Standards, as endorsed by the
European Union. The condensed set of financial statements are prepared in
accordance with International Accounting Standard 34, "Interim Financial
Reporting", as adopted by the European Union.
Our Responsibility
Our Responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review consists of making
enquiries of persons responsible for financial reporting and accounting matters
and applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with International Standards
on Auditing (UK and Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be
identified during an audit. Accordingly we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 September 2007 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union.
Ernst & Young LLC
Chartered Accountants
Douglas
Isle of Man
2007
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DKLFFDLBXFBX
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