Interim Results - Part 2 of 2
British Land Co PLC
26 November 2003
PART 2 OF 2
PRELIMINARY ANNOUNCEMENT OF FINANCIAL RESULTS
For the six month period ended 30 September 2003
Independent review report to The British Land Company PLC
Introduction
We have been instructed by the Company to review the financial information for the six months
ended 30 September 2003 which comprises the Consolidated Profit and Loss Account, Consolidated
Balance Sheet, Consolidated Cash Flow Statement, Consolidated Statement of Total Recognised
Gains and Losses, the Note of historical cost profits and losses, the Reconciliation of
movements in shareholders' funds and related notes 1 to 17. We have read the other information
contained in the interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
This report is made solely to the Company in accordance with Bulletin 1999/4 issued by the
Auditing Practices Board. Our work has been undertaken so that we might state to the Company
those matters we are required to state to them in an independent review report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company, for our review work, for this report, or for the conclusions we
have formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is the responsibility
of, and has been approved by, the directors. The directors are responsible for preparing the
interim report in accordance with the Listing Rules of the Financial Services Authority which
require that the accounting policies and presentation applied to the interim figures should be
consistent with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the
Auditing Practices Board for use in the United Kingdom. A review consists principally of making
enquiries of group management and applying analytical procedures to the financial information
and underlying financial data and, based thereon, assessing whether the accounting policies and
presentation have been consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and transactions.
It is substantially less in scope than an audit performed in accordance with United Kingdom
Auditing Standards and therefore provides a lower level of assurance than an audit.
Accordingly, we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that should be made to
the financial information as presented for the six months ended 30 September 2003.
Deloitte & Touche LLP 25 November 2003
Chartered Accountants
London
Consolidated Profit & Loss Account for the six months ended 30 September 2003
Year ended
31 March
2003 Note 2003 2002
Audited Unaudited Unaudited
£m £m £m
551.6 Gross rental income 270.6 266.2
(102.2) Less share of joint ventures 8 (44.0) (53.3)
449.4 Gross rental income - Group 226.6 212.9
418.2 Net rental income 209.4 200.1
0.6 Profit on property trading 6.0
4.2 Other income 1.6 2.0
(42.6) Administrative expenses (21.2) (20.6)
380.4 Operating profit 195.8 181.5
92.3 Share of operating profits of joint ventures 8 39.1 45.5
26.1 Disposal of fixed assets - including amounts from joint ventures 2 15.9 3.1
(note 8)
498.8 Profit on ordinary activities before interest 250.8 230.1
(326.4) Net interest payable 3 (163.7) (164.8)
172.4 Profit on ordinary activities before taxation 87.1 65.3
(33.1) Taxation 4 (11.5) (12.8)
139.3 Profit on ordinary activities after taxation 75.6 52.5
(65.9) Ordinary dividends 5 (21.6) (21.3)
73.4 Retained profit for the period 54.0 31.2
27.2 p Earnings per share: Basic 6 15.5 p 10.1 p
26.9 p Diluted 6 15.2 p 10.3 p
27.4 p Adjusted earnings per share:* Basic 6 15.8 p 10.3 p
27.1 p Diluted 6 15.5 p 10.5 p
13.40 p Dividend per share 5 4.43 p 4.10 p
The results stated above relate to the continuing activities of the Group.
* Adjusted to exclude the capital allowance effects of FRS 19.
Consolidated Balance Sheet as at 30 September 2003
31 March
2003 Note 2003 2002
Audited Unaudited Unaudited
£m £m £m
Fixed assets
8,085.2 Investment properties 7 8,140.7 7,659.9
Investments in joint ventures:
1,470.3 Share of gross assets 8 1,428.1 1,617.6
(770.1) Share of gross liabilities 8 (766.1) (899.3)
700.2 662.0 718.3
26.6 Other investments 21.4 11.8
(9.2) Negative goodwill (9.1)
8,802.8 8,815.0 8,390.0
Current assets
46.2 Trading properties 7 43.7 46.7
55.6 Debtors 9 80.2 58.6
139.7 Cash and deposits 13 119.8 133.9
241.5 243.7 239.2
(555.9) Creditors due within one year 10 (527.1) (602.1)
(314.4) Net current liabilities (283.4) (362.9)
8,488.4 Total assets less current liabilities 8,531.6 8,027.1
(4,119.6) Creditors due after one year 11 (4,096.6) (3,631.5)
(146.8) Convertible Bonds 13 (146.9) (146.8)
(92.7) Provisions for liabilities and 12 (92.9) (91.2)
charges
4,129.3 Net assets 4,195.2 4,157.6
Capital and reserves
122.1 Called up share capital 121.9 129.5
1,107.7 Share premium 16 1,107.9 1,107.7
7.9 Capital redemption reserve 16 8.1 0.4
(8.0) Other reserves 16 (6.8) (7.5)
2,225.9 Revaluation reserve 16 2,217.1 2,183.1
673.7 Profit and loss account 16 747.0 744.4
4,129.3 Equity shareholders' funds 4,195.2 4,157.6
884 p Adjusted NAV per share: Basic 15 895 p 842 p
860 p Fully 15 870 p 822 p
diluted
(The Adjusted Net Asset Value (NAV) per share includes the external valuation surplus on development and trading
properties but excludes the capital allowance effects of FRS19.)
Approved by the Board on 25 November 2003
Other Consolidated Primary Statements for the six months ended 30 September 2003
Year ended
31 March
2003 2003 2002
Audited Unaudited Unaudited
£m £m £m
Statement of total recognised gains and losses
139.3 Profit on ordinary activities after taxation 75.6 52.5
Unrealised surplus (deficit) on revaluation:
12.6 - investment (1.9) (9.7)
properties
63.4 - joint ventures 22.9 29.2
(0.1) - other investments 0.2 (0.1)
75.9 21.2 19.4
0.6 Exchange movements on net investments 0.3 0.2
Taxation on realisation of prior year (4.8)
revaluations
Total recognised gains and losses relating to
215.8 the financial period 92.3 72.1
Year ended
31 March
2003 2003 2002
Audited Unaudited Unaudited
£m £m £m
Note of historical cost profits and losses
172.4 Profit on ordinary activities before taxation 87.1 65.3
17.7 Realisation of prior year revaluations 30.9 2.0
Taxation on realisation of prior year (4.8)
revaluations
190.1 Historical cost profit on ordinary activities 113.2 67.3
before taxation
Historical cost profit for the period retained
after
91.1 taxation and dividends 80.1 33.2
Other Consolidated Primary Statements for the six months ended 30 September 2003
Year ended
31 March
2003 2003 2002
Audited Unaudited Unaudited
£m £m £m
Reconciliation of movements in
shareholders' funds
139.3 Profit on ordinary activities after taxation 75.6 52.5
(65.9) Ordinary dividends (21.6) (21.3)
73.4 Retained profit for the period 54.0 31.2
Revaluation of investment properties
75.9 and investments 21.2 19.4
0.6 Exchange movements on net investments 0.3 0.2
Taxation on realisation of prior year revaluations (4.8)
149.9 70.7 50.8
1.6 Shares issued 0.2 1.5
(130.1) Purchase and cancellation of own shares (5.0) (2.6)
21.4 Increase in shareholders' funds 65.9 49.7
4,107.9 Opening shareholders' funds 4,129.3 4,107.9
4,129.3 Closing shareholders' funds 4,195.2 4,157.6
Consolidated Cash Flow Statement for the six months ended 30 September 2003
Year ended
31 March
2003 Note 2003 2002
Audited Unaudited Unaudited
£m £m £m
373.6 Net cash inflow from operating activities 14 206.4 178.4
22.6 Dividends received from joint ventures 1.5 5.6
Returns on investments and servicing of finance
20.9 Interest received 6.2 9.3
(303.6) Interest paid (147.3) (164.0)
0.3 Dividends received 0.1
(282.4) (141.0) (154.7)
(18.8) Taxation paid (1.0) (9.0)
Net cash inflow from operating activities and
95.0 investments after finance charges and taxation 65.9 20.3
Capital expenditure and financial investment
Purchase of investment properties and
(371.0) development expenditure (122.1) (118.3)
(15.4) Purchase of investments (10.2) (0.2)
76.6 Sale of investment properties 73.2 20.5
Sale of investments 16.4
(309.8) (42.7) (98.0)
Acquisitions and disposals
(42.7) Purchase of interest in subsidiary companies (12.0)
Cash at bank acquired with interest in
5.8 subsidiary companies 0.3
(14.9) Investment in and loans to joint ventures (8.5)
91.0 Sale of shares in and loans repaid by joint ventures 48.1 52.6
39.2 48.1 32.4
(65.1) Equity dividends paid (45.4) (44.6)
Net cash inflow (outflow) before management
(240.7) of liquid resources and financing 25.9 (89.9)
Management of liquid resources
254.8 Decrease in term deposits 2.7 242.0
Financing
1.3 Issue of ordinary shares 0.2 1.2
(130.1) Purchase and cancellation of own shares (5.0) (1.5)
(322.7) Repurchase of 6.5% Convertible Bonds 2007 (322.7)
Issue of Meadowhall Shopping Centre
securitised debt 50.7
Redemption of Broadgate Class D
Unsecured Notes 2014 (73.5)
463.2 (Decrease) increase in bank and other borrowings (17.6) 186.5
11.7 (45.2) (136.5)
25.8 (Decrease) increase in cash 14 (16.6) 15.6
Notes to the accounts for the six months ended 30 September 2003 (unaudited)
1. Basis of preparation
The interim accounts are not statutory accounts, but are prepared on the basis of the accounting policies set
out in the Group's financial statements for the year ended 31 March 2003, consistently applied in all material
respects.
The figures for the year ended 31 March 2003 have been extracted from the statutory accounts which have been
filed with the Registrar of Companies. The auditors' report on those accounts was unqualified and did not
contain any statement under section 237 (2) or (3) of the Companies Act 1985.
2. Disposal of fixed assets
Year ended
31 March
2003 2003 2002
£m £m £m
5.7 British Land Group 12.5 0.9
20.4 Share of joint ventures (note 8) 3.4 2.2
26.1 15.9 3.1
3. Net interest payable
Year ended
31 March
2003 2003 2002
£m £m £m
British Land Group
35.2 Payable on: bank loans and overdrafts 24.0 12.4
254.1 other loans 126.6 134.5
289.3 150.6 146.9
(8.1) Deduct: development cost element (5.9) (2.5)
281.2 144.7 144.4
(11.2) Receivable on: deposits and securities (3.2) (9.0)
(8.9) loans to joint ventures (4.5) (5.1)
261.1 Total British Land Group 137.0 130.3
Share of joint ventures
8.9 Interest payable on shareholder loans 4.5 5.1
56.4 Other interest payable (net) 22.2 29.4
65.3 Total share of joint ventures (note 8) 26.7 34.5
326.4 Net interest payable 163.7 164.8
4. Taxation
Year ended
31 March
2003 2003 2002
£m £m £m
19.4 British Land Group: Corporation 6.5 6.8
tax
3.1 Deferred tax 0.2 1.7
13.2 Share of joint ventures (note Corporation 4.5 4.8
8): tax
(2.6) Deferred tax 0.3 (0.5)
33.1 11.5 12.8
Contingent tax
The tax which would arise on the disposal of properties and investments at the amount at which they
are carried in the balance sheet, and including trading and development surpluses, is in the region
of £440m (31 March 2003: £470m; 30 September 2002: £505m). Tax losses, which have not been
recognised in the Balance Sheet, have reduced the contingent tax. This unprovided taxation is
stated after taking account of the FRS19 capital allowance deferred tax provision of £87m (31 March
2003: £86m; 30 September 2002: £84m).
5. Interim dividend
The interim dividend of 4.43 pence will be paid on 20 February 2004 to shareholders on the register
at the close of business on 23 January 2004.
6. Basic and diluted earnings per share
Basic and diluted earnings per share are calculated on the profit on ordinary activities after taxation and
on the weighted average number of shares in issue during the period as shown below:
Year ended
31 March 2003 2003 2002
Weighted Weighted Weighted
average Profit average Profit average Profit
number after number after number after
of shares taxation of shares taxation of shares taxation
m £m m £m m £m
Earnings per share
512.5 139.3 Basic 488.6 75.6 518.7 52.5
554.0 149.0 Diluted 518.9 78.7 571.0 59.1
Weighted Weighted Weighted
average Profit average Profit average Profit
number after number after number after
of shares taxation of shares taxation of shares taxation
m £m m £m m £m
Adjusted earnings
per share
512.5 140.4 Basic 488.6 77.1 518.7 53.3
554.0 150.1 Diluted 518.9 80.2 571.0 59.9
Adjusted earnings per share are calculated by excluding £1.5m (31 March 2003: £1.1m; 30 September 2002:
£0.8m) which is the capital allowance effect of FRS 19.
The diluted weighted average number of shares has changed as a result of the redemption in June 2002 of the
6.5% Convertible Bonds 2007 and from the impact of shares purchased and cancelled.
7. Investment, development and trading properties
Long Short
Freehold Leasehold Leasehold Total
£m £m £m £m
Investment and development properties
Valuation and cost 1 April 2003 7,737.4 347.8 8,085.2
Additions 120.0 (2.3) 117.7
Disposals (62.1) (62.1)
Exchange fluctuations 1.8 1.8
Revaluations 4.0 (5.9) (1.9)
Valuation and cost 30 September 2003 7,801.1 339.6 8,140.7
Trading properties
At lower of cost and net realisable value
30 September 2003 34.4 8.4 0.9 43.7
External valuation surplus on development and trading properties 63.7
Total investment, development and trading properties 8,248.1
Investment, development and trading properties were valued by external valuers on the basis of open market value
in accordance with the Appraisal and Valuation Manual published by The Royal Institution of Chartered Surveyors:
£m
United Kingdom: ATIS REAL Weatheralls 8,086.2
FPD Savills 152.9
Republic of Ireland: Jones Lang LaSalle 38.5
Netherlands: CB Richard Ellis B.V. 1.1
8,278.7
Adjustment for UITF 28 - lease incentive debtors (30.6)
Total investment, development and trading properties 8,248.1
Total external valuation surplus on development and trading properties
£m
British Land Group 63.7
Share of joint ventures 2.0
65.7
Properties valued at £5,772.8m (31 March 2003: £5,788.2m; 30 September 2002: £5,717.7m) were subject to a
security interest.
7. Investment, development and trading properties (continued)
Total property valuations including share of joint ventures
31 March
2003 2003 2002
£m £m £m
British Land Group
8,085.2 Investment and development properties 8,140.7 7,659.9
46.2 Trading properties 43.7 46.7
87.9 External valuation surplus on development
and
trading properties 63.7 93.6
16.3 Adjustment for UITF 28 - lease incentive 30.6 10.8
debtors
8,235.6 8,278.7 7,811.0
Share of joint ventures
1,404.8 Properties 1,364.9 1,550.2
External valuation surplus on development
and
1.4 trading properties 2.0 11.2
3.8 Adjustment for UITF 28 - lease incentive 3.5 3.2
debtors
1,410.0 1,370.4 1,564.6
9,645.6 Total property portfolio valuation 9,649.1 9,375.6
8. Joint ventures
British Land's share of profits of joint ventures
Year ended
31 March
2003 2003 2002
£m £m £m
102.2 Gross rental income 44.0 53.3
95.1 Net rental income 41.6 49.1
(2.8) Other expenditure (2.5) (3.6)
92.3 Operating profit 39.1 45.5
20.4 Disposal of fixed assets 3.4 2.2
112.7 Profit on ordinary activities before 42.5 47.7
interest
(56.4) Net interest payable to third parties (22.2) (29.4)
(8.9) Interest payable to British Land (4.5) (5.1)
(65.3) Net interest payable (note 3) (26.7) (34.5)
47.4 Profit on ordinary activities before 15.8 13.2
taxation
(10.6) Taxation (4.8) (4.3)
36.8 Profit on ordinary activities after taxation 11.0 8.9
The amounts relating to captions shown in bold are recognised at the relevant point
in the consolidated profit and loss account.
The movement for the period:
Equity Loans Total
£m £m £m
At 1 April 2003 491.2 209.0 700.2
Additions (1.5) 0.4 (1.1)
Repayment of loans (53.8) (53.8)
Share of profit attributable to joint ventures (net of 9.5 9.5
dividend)
Disposals (15.7) (15.7)
Revaluations 22.9 22.9
At 30 September 2003 506.4 155.6 662.0
8. Joint ventures (continued)
Summary of British Land's share in joint ventures
Operating Gross Gross Net
profits assets liabilities investment
£m £m £m £m
The Public House Company Ltd 0.7 32.4 (1.7) 30.7
BL Universal PLC 12.5 383.7 (189.2) 194.5
BL Fraser Ltd 3.3 127.7 (74.7) 53.0
BLT Properties Ltd 3.6 131.2 (59.5) 71.7
Tesco BL Holdings Ltd 5.4 199.2 (110.6) 88.6
BL West 6.1 170.2 (134.8) 35.4
BL Davidson Ltd 5.2 250.0 (152.9) 97.1
BVP Developments Ltd 1.1 53.2 (30.9) 22.3
Other joint ventures 1.2 80.5 (11.8) 68.7
Total 39.1 1,428.1 (766.1) 662.0
The Group's share of joint venture external net debt is £634.7m (31 March 2003:
£632.0m;
(31 March 2003: £632.0m; 30 September 2002: £740.9m). The amount guaranteed by
British Land is £12.0m (31 March 2003: £12.0m; 30 September 2002: £28.0m).
The Group's share of the market value of joint venture debt and derivatives as at 30
September 2003 was £30.2m more than the Group's share of the book value (31 March
2003: £40.6m; 30 September 2002: £46.5m).
The Group's share of joint venture properties as at 30 September 2003 was £1,364.9m
(31 March 2003: £1,404.8m; 30 September 2002: £1,550.2m).
9. Debtors
31 March
2003 2003 2002
£m £m £m
36.1 Trade debtors 43.6 35.3
0.9 Amounts owed by joint ventures 1.5 6.7
18.6 Prepayments and accrued income 35.1 16.6
55.6 80.2 58.6
10. Creditors due within one year
31 March
2003 2003 2002
£m £m £m
57.8 Debentures and loans * 34.9 52.6
8.4 Overdrafts * 7.8
168.5 Bank loans * 178.1 270.1
58.6 Trade creditors 64.9 50.7
33.7 Corporation tax 44.0 28.4
13.9 Other taxation and social security 1.1 12.7
169.6 Accruals and deferred income 174.7 166.3
45.4 Proposed dividend 21.6 21.3
555.9 527.1 602.1
* See Maturity Analysis of Net Debt - note 13.
11. Creditors due after one year
31 March
2003 2003 2002
£m £m £m
3,397.5 Debentures and loans * 3,374.9 3,425.5
722.1 Bank loans * 721.7 206.0
4,119.6 4,096.6 3,631.5
* See Maturity Analysis of Net Debt - note 13.
12. Provisions for liabilities and charges
31 March
2003 2003 2002
£m £m £m
92.7 Deferred tax 92.9 91.2
The deferred tax liability relates primarily to capital allowances claimed on plant and
machinery within investment properties. When a property is sold and the agreed disposal
value for this plant and machinery is less than original cost, there is a release of the
surplus part of the provision. The entire amount of the capital allowance provision would
be expected to be released on sale.
13. Net debt
31 March
2003 2003 2002
£m Footnote £m £m
Secured on the assets of the Group
97.7 6.5055% Secured Notes 2038 1.1 97.7 97.7
59.2 5.920% Secured Notes 2035 1.2 59.2 59.2
19.7 7.743% Secured Notes 2025 1.3 19.7 19.6
1.9 5.66% 135 Bishopsgate Securitisation 2018 1.4 1.9 1.9
7.1 8.49% 135 Bishopsgate Securitisation 2018 1.4 7.1 7.1
246.6 8% First Mortgage Debenture Bonds 2035 246.7 246.6
197.2 9% First Mortgage Debenture Stock 2028 197.2 197.2
12.6 10 1/2% First Mortgage Debenture Stock 2019/24 12.6 12.6
20.4 11% First Mortgage Debenture Stock 2019/ 20.4 20.4
24
662.4 662.5 662.3
Unsecured
543.0 Class A1 5.260% Unsecured Notes 2035 1.2, 2 573.5 542.8
88.9 Class B 5.793% Unsecured Notes 2035 1.2, 2 99.1 88.8
74.0 Class C Fixed Rate Unsecured Notes 2035 1.2, 2 83.9 74.0
73.4 Class C2 6.4515% Unsecured Notes 2032 1.1 73.4 73.3
220.0 Class B 6.0875% Unsecured Notes 2031 1.1 220.1 219.9
146.6 Class A3 5.7125% Unsecured Notes 2031 1.1 146.7 146.6
287.8 Class A2 5.67% Unsecured Notes 2029 1.1 285.6 289.9
157.0 Class A2 (C) 6.457% Unsecured Notes 2025 1.3 157.1 156.9
205.6 Class B2 6.998% Unsecured Notes 2025 1.3 205.7 205.5
20.5 Class B3 7.243% Unsecured Notes 2025 1.3 20.5 20.5
318.6 Class A1 Fixed Rate Unsecured Notes 2024 1.1 318.9 318.4
23.3 5.66% 135 Bishopsgate Securitisation 2018 1.4 22.8 23.8
91.6 8.49% 135 Bishopsgate Securitisation 2018 1.4 90.0 93.1
60.9 Class A1 6.389% Unsecured Notes 2016 1.3 59.5 62.1
91.6 Class B1 7.017% Unsecured Notes 2016 1.3 88.8 94.3
161.6 Class C1 6.7446% Unsecured Notes 2014 1.1 154.5 168.6
78.7 Class D Fixed / Floating Rate Unsecured Notes 1.1, 3 88.4
2014
49.5 Class A2 5.555% Unsecured Notes 2013 1.2 47.0 49.4
2,692.6 2,647.1 2,716.3
1.7 101/4% Bonds 2012 1.7 1.7
97.8 7.35% Senior US Dollar Notes 2007 4 97.8 97.8
0.8 Guaranteed Floating Rate Unsecured Loan Notes 0.7
2005
899.0 Bank loans and overdrafts 907.6 476.1
3,691.9 3,654.9 3,291.9
Convertible Bonds
146.8 6% Subordinated Irredeemable Convertible Bonds 146.9 146.8
4,501.1 Gross debt 4,464.3 4,101.0
(139.7) Cash and deposits 5 (119.8) (133.9)
4,361.4 Net debt 4,344.5 3,967.1
1 These borrowings are obligations of
ringfenced, default remote, special purpose
companies, with no recourse to other companies or
assets in the Group.
1,384.4 1.1 Broadgate (Funding) PLC 1,296.9 1,402.8
814.6 1.2 MSC (Funding) PLC 862.7 814.2
555.3 1.3 BLSSP (Funding) PLC 551.3 558.9
123.9 1.4 135 Bishopsgate Financing Ltd 121.8 125.9
2,878.2 Total securitised debt 2,832.7 2,901.8
2 A total of £50m Notes were issued on 14 April
2003.
3 These notes were redeemed and cancelled on 7 July
2003.
4 These borrowings have been hedged into Sterling from the date of
issue.
5 Cash and deposits not subject to a security
interest amount to £29.4m (31 March 2003: £45.9m;
30 September 2002: £37.9m)
13. Net debt (continued)
Maturity analysis of net debt
31 March
2003 2003 2002
£m £m £m
Repayable:
234.7 within one year and on demand 220.8 322.7
459.6 between: one and two years 480.2 150.1
543.6 two and five years 526.1 359.5
431.1 five and ten years 404.2 392.6
430.8 ten and fifteen years 442.9 427.1
469.9 fifteen and twenty years 484.7 462.7
789.0 twenty and twenty five years 780.7 607.5
666.8 twenty five and thirty years 671.1 855.9
328.8 thirty and thirty five years 306.7 376.1
146.8 Irredeemable 146.9 146.8
4,501.1 Gross debt 4,464.3 4,101.0
(139.7) Cash and deposits (119.8) (133.9)
4,361.4 Net debt 4,344.5 3,967.1
Maturity of committed undrawn borrowing facilities
31 March
2003 2003 2002
£m £m £m
Expiring:
133.1 within one year 56.7 341.8
30.0 between: one and two years 20.0 54.0
255.0 two and three years 170.0 380.0
170.0 three and four years 150.0 330.0
four and five years 355.0 210.0
8.6 over five years 32.4
596.7 Total 751.7 1,348.2
Interest rate profile - including effect of derivatives
31 March
2003 2003 2002
£m £m £m
3,543.8 Fixed rate 3,497.3 3,494.5
100.0 Capped rate 100.0 100.0
717.6 Variable rate (net of cash) 747.2 372.6
4,361.4 Net debt 4,344.5 3,967.1
13. Net debt (continued)
Unamortised debt issue costs
Total unamortised issue costs, less premiums, reducing the principal amount
of debt in arriving at the Balance Sheet values amount to £54.4m (31 March
2003: £57.5m; 30 September 2002: £59.3m), as detailed below.
31 March
2003 2003 2002
£m £m £m
48.1 Securitised debt 45.2 49.9
6.2 Debentures 6.1 6.2
3.2 Convertible bonds 3.1 3.2
57.5 54.4 59.3
Comparison of market values and book values at 30 September 2003
Market Book
Value Value Difference
£m £m £m
Fixed rate debt:
Securitised debt 3,079.4 2,832.7 246.7
Debentures and unsecured bonds 743.9 576.4 167.5
Convertible bonds 176.3 146.9 29.4
Bank and other floating rate 908.3 908.3
debt
Cash and deposits (119.8) (119.8)
4,788.1 4,344.5 443.6
Derivatives
- unrecognised gains (10.9) (10.9)
- unrecognised losses 34.4 34.4
23.5 23.5
Total 4,811.6 4,344.5 467.1
The market value and difference are shown before any tax
relief.
14. Notes to the cash flow statement
Reconciliation of operating profit to net cash inflow from operating activities
Year ended
31 March
2003 2003 2002
£m £m £m
380.4 Operating profit 195.8 181.5
(0.3) Dividends received (0.1)
0.6 Depreciation 0.3 0.7
1.3 Decrease in trading properties 2.5 0.3
(17.2) Decrease (increase) in debtors 5.4 (15.3)
8.8 Increase in creditors 2.5 11.2
373.6 Net cash inflow from operating activities 206.4 178.4
Analysis of Group net debt
1 30 30
April Cash Non cash September September
2003 flow movements 2003 2002
£m £m £m £m £m
Cash at bank (50.3) 17.2 (33.1) (31.7)
Overdraft 8.4 (0.6) 7.8
Net cash per
cash flow statement (41.9) 16.6 (25.3) (31.7)
Term debt 4,345.9 (40.4) 4.1 4,309.6 3,954.2
Convertible Bonds 146.8 0.1 146.9 146.8
Term deposits (89.4) 2.7 (86.7) (102.2)
Group net debt 4,361.4 (21.1) 4.2 4,344.5 3,967.1
Reconciliation of net cash flow to movement in Group net debt
Year ended
31 March
2003 2003 2002
£m £m £m
3,840.4 Brought forward 4,361.4 3,840.4
Movement in net debt in the period:
(25.8) Decrease (increase) in cash 16.6 (15.6)
463.2 Cash (outflow) inflow from movement in debt (40.4) 186.5
(322.7) Cash outflow to repurchase Convertible Bonds (322.7)
254.8 Cash inflow in term deposits 2.7 242.0
369.5 Changes resulting from cash flows (21.1) 90.2
151.5 Other non cash movements 4.2 36.5
521.0 (16.9) 126.7
4,361.4 Carried forward 4,344.5 3,967.1
15. Net Asset Value per share
Adjusted
Net Net
Shares Assets Assets
m £m £m
Net Asset Value (undiluted)
Shareholders' funds as shown on balance 487.6 4,195.2 4,195.2
sheet
FRS19 capital allowance effects
British Land Group 91.3
Share of joint 10.1
ventures
101.4
Total external valuation surplus on development
and trading properties (note 7) 65.7 65.7
Net assets attributable to ordinary shares 4,362.3 4,260.9
At 30 September 2003 895 p 874 p
At 31 March 2003 884 p 863 p
At 30 September 2002 842 p 822 p
Fully diluted Net Asset Value
Net assets attributable to ordinary shares 487.6 4,362.3 4,260.9
Adjust to fully diluted on conversion of:
Share options 1.5 5.8 5.8
6% Irredeemable Convertible Bonds 30.0 146.9 146.9
Net assets attributable to fully diluted
ordinary shares 519.1 4,515.0 4,413.6
At 30 September 2003 870 p 850 p
At 31 March 2003 860 p 840 p
At 30 September 2002 822 p 804 p
The adjusted NAV includes the surplus before tax of the external valuation over
the book value of both development and trading properties and after adding back
the FRS19 deferred tax capital allowance provision (as described in note 12)
which is not expected to arise.
16. Reserves
Capital Profit
Share redemption Other Revaluation and loss
premium reserve reserves reserve account Total
£m £m £m £m £m £m
At 1 April 2003 1,107.7 7.9 (8.0) 2,225.9 673.7 4,007.2
Share issues 0.2 0.2
Purchase and
cancellation of
of own shares 0.2 (5.0) (4.8)
Retained profit for
the period 54.0 54.0
Realisation of prior
year revaluations (30.9) 30.9
Taxation on
realisation of prior
year revaluations (4.8) (4.8)
Current period
revaluation 21.2 21.2
Exchange
movements on
net investments 1.2 0.9 (1.8) 0.3
At 30 September 2003 1,107.9 8.1 (6.8) 2,217.1 747.0 4,073.3
17. Contingent liabilities
Contingent liabilities of the Parent for guarantees to third parties amounted to £12.0m (31 March
2003: £12.0m; 30 September 2002: £28.0m).
This information is provided by RNS
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