RNS Number:2060P
Grosvenor Land Holdings PLC
01 September 2003
Grosvenor Land Holdings Plc
("Grosvenor" or "the Company")
Prelimnary Results for the year ended 25 March 2003
PRE-TAX PROFITS SURGE 259% AS GROSVENOR LAND'S
POWERHUB CONCEPT STARTS TO PAY DIVIDENDS
Overview:
*Pre-tax profits rise 259% to #439,565 (2002: #122,570)
*Earnings per share up to 1.12p (2002: 0.26p)
*Full year dividend of 0.2p per ordinary share making a total of 0.3p for
the year (2002: 0.2p)
*Expansion of the Powerhub business centre concept proving extremely
successful
*Portfolio of over 350,000 sq ft of multi let space including three
Powerhubs
*Continues to sell non-core assets to fund national rollout of Powerhub
business centres
Douglas Blausten CEO of Grosvenor Land Holdings Plc said: "This has been another
excellent period for the Company with the results reflecting the successes we
have achieved. After a period of much research we are delighted to be
progressing with our Powerhub business concept and now have three centres around
the UK. We are constantly seeking new opportunities in order to further this
concept, create high-quality revenue streams and build a business that rewards
our shareholders."
CHAIRMAN'S STATEMENT
I am pleased to present the full year results for Grosvenor Land Holdings Plc
for the year ended 25 March 2003, which has been yet another successful period
of trading for your Company, with pre-tax profits up 259% to #439,565 (2002:
#122,570). Earnings per share are up from 0.26p to 1.12p and Net Asset Value per
share has increased to 20p (2002 - 18.0p). With the post balance sheet events
reported below I am confident of good progress in this regard for the coming
year.
As a result of our improving profits and income flows we made our maiden interim
dividend of 0.1p per ordinary share announced in December. Following this and in
line with our policy of distributing income to our shareholders, we are pleased
to announce that your board is also proposing a final dividend of 0.2p, making a
total dividend for the year of 0.3p.
Our focus remains to generate strong returns for investors by building
shareholder value primarily through the expansion of the 'Powerhub' business
centre concept. This has already proven extremely successful at our flagship
complex in Maidstone, where during the period we successfully re-launched the
site allowing us to increase occupancy levels and improve lease terms with our
tenants.
We continue to trade out our non-core assets to provide further capital to make
selective acquisitions under the Powerhub brand. In line with this, in March
2003 we sold our stake in the 'Avalon House' property in Portsmouth for #1.815
million, at a profit of ##221,451 and in April 2002 successfully traded our
investment in Croydon for a profit of #366,324 on the original cost of
#1,110,000.
Subsequent to the year-end but as part of this programme, we have also sold our
freehold property in Whitstable, Kent for #1 million in cash and our freehold
town centre retail investment in Cheadle for #1.26 million in cash. Furthermore
we successfully renegotiated a number of our loan agreements resulting in
reduced capital repayments and reduced interest charges. As a result we have
generated significant capital to expand the Powerhub concept, which we have
successfully done through the acquisition of two further sites, subsequent to
the reporting period.
On 31 March 2003 we purchased our second Powerhub, a 143,000 sq ft distribution
warehouse estate near Crawley, West Sussex, for #3.7 million in cash and have
already substantially increased its rents from approximately #280,000 per annum
to over #400,000 per annum in the first five months of ownership. On 31 July
2003 we acquired At Work Business Centres Limited ("@ Work") in Manchester for
#3,190,000. This 51,000 sq ft property is currently let at a combined net rental
income of approximately #300,000 per annum. By re-branding the building as a
Powerhub and implementing an asset management strategy and new lettings of
currently vacant accommodation, we intend to increase the rental income in line
with our achievements at our other two centres.
We raised #280,000 through a placing of 2,000,000 New Ordinary Shares of 1p each
at 14p per share to contribute to the funding of the Crawley acquisition.
Following that, the consideration for the Manchester deal was satisfied by the
issue of 1,666,667 new ordinary shares at a contract price of 21p per share,
together with a cash payment of approximately #560,000 and the company taking on
an existing loan of #2,280,000. The placement of shares at 14p followed by the
issue of shares at 21p highlights the progress we are making, as well as the
belief that our investors and business associates have in the Powerhub concept.
We now have a portfolio of over 350,000 sq ft of multi let space let to in
excess of 120 companies employing over 600 people. We are extremely excited
about the near and long term prospects for your Company. With its strengthened
income flow, cash reserves and projects in hand, Grosvenor is well placed to
take advantage of the opportunities that become available. We have taken time to
find new Powerhub locations but we feel justified in the fact that we were
waiting for the right opportunities to arise. We are creating a national brand
that has to be recognised for its service offering. Selection is therefore very
important, and through our recent strategy we are now well positioned to act
immediately as new venues become available.
As reported in the interim results, we made a strategic investment in Abraxus
Investments Plc, an AIM listed venture that specialises in identifying
international and UK commercial property related investment opportunities that
show an expectation of higher than average yields. Abraxus is considering a
number of international commercial property deals with a current focus on the
continental European property market and we look forward to Abraxus' activities
contributing to Governor's future profits in the medium term. Grosvenor holds a
21.06% stake in Abraxus.
Grosvenor has a strong management team dedicated to a proven business model that
is focused on building shareholder value through tactical investments. To
strengthen the Board further, we appointed Mr Robert Dyson as a non-executive
director. Mr Dyson, a Chartered Surveyor, Executive Chairman of Dunlop Heywood
Lorenz and founder of @ Work, has considerable experience and expertise within
the property sector and will assist us in expanding the Powerhub business centre
concept.
Finally, I would like to thank the management team for their efforts in guiding
the Company into its current position of strength and look forward to building
on our recent acquisition programme.
Phil Edmonds
Chairman
Consolidated profit and loss account for the year ended 25 March 2003
2003 2002
# #
Rents receivable 1,173,631 1,259,669
Property expenses (473,310) (349,838)
________ ________
700,321 909,831
Administrative expenses (440,394) (361,899)
Other operating income
Profit on sale of trading stocks 366,324 -
________ ________
Group operating profit 626,251 547,932
Associated undertaking
Share of loss (44,963) -
Amortisation of goodwill (11,225) -
________ ________
570,063 547,932
Profit on sale of investment property 221,451 -
________ ________
Profit on ordinary activities before 791,514 547,932
interest
Interest receivable
- Group 27,202 39,639
- Associated undertaking 9,339 -
Interest payable (388,490) (465,001)
________ ________
Profit on ordinary activities before 439,565 122,570
taxation
Taxation on profit on ordinary activities 94,606 42,697
________ ________
Profit on ordinary activities after taxation 344,959 79,873
Dividends 100,013 61,787
________ ________
Retained profit for the financial year 244,946 18,086
======= =======
Basic earnings per share 1.12p 0.26p
===== =====
Diluted earnings per share 1.11p 0.26p
===== =====
All amounts relate to continuing operations.
Consolidated balance sheet at 25 March 2003
2003 2003 2002 2002
# # # #
Fixed assets
Tangible assets 6,150,122 7,315,222
Investment in 490,826 -
associate
Other investments 60,000 100,000
_______ _______
Fixed asset 550,826 100,000
investments
_________ _________
6,700,948 7,415,222
Current assets
Stocks 2,546,770 3,656,770
Debtors 2,076,287 168,549
Cash at bank and in 990,586 1,328,651
hand
_________ _________
5,613,643 5,153,970
Creditors: amounts
falling due
within one year 3,690,166 2,903,589
_________ _________
Net current assets 1,923,477 2,250,381
_________ _________
Total assets less 8,624,425 9,665,603
current liabilities
Creditors: amounts
falling due
after more than one 2,448,000 4,084,574
year
Provisions for 12,000 12,000
liabilities and
charges
_________ _________
6,164,425 5,569,029
======== ========
Capital and reserves
Called up share 308,933 308,933
capital
Share premium 3,618,344 3,618,344
account
Revaluation 1,712,637 1,306,396
reserve
Profit and loss 524,511 335,356
account
_________ _________
Shareholders' funds 6,164,425 5,569,029
- equity
======== ========
Notes:
1. Statutory accounts
The financial information presented does not constitute statutory accounts
as defined in Section 240 of the Companies Act 1985. The comparitive results
have been extracted from the audited accounts of the Company for the year
ended 25th March 2002.
2. Earnings per ordinary share
Basic earnings per share is calculated by reference to the group profit
after taxation of #344,959 (2002 - #79,873) and the weighted average number
of shares in issue during the year of 30,893,310 (2002 - 30,893,310).
Diluted earnings per share is calculated by reference to the group profit
after taxation of #344,959 (2002 - #79,873) and on a weighted average number
of shares of 31,133,310 (2002 - 30,922,578).
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEMFAUSDSESA
