Interim Report - 6 months end

RNS Number : 9902K

Cardiff Property PLC

29 April 2010

 



THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY

AND ITS SUBSIDIARIES

FOR RELEASE

7.00 AM                29 April 2010

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 £30m, is primarily located to the west of London, close to Heathrow Airport and in Surrey and Berkshire.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 31 MARCH 2010

Highlights:

Six months 31 March 2010 (Unaudited)

Six months 31 March 2009 (Unaudited)

Year 30 September 2009 (Audited)

Revenue	£'000	474	884	1,153
Property sales	£'000	198	592	592
Net assets per share	pence	1,088	1,167	1,065
Profit/(loss) before tax	£'000	722	757	(656)
Earnings/(loss) per share	pence	32.0	34.6	(57.7)
Interim/final dividend    per share	pence	3.3	3.3	9.0
Gearing	%	Nil	Nil	Nil

Richard Wollenberg, Chairman, commented:

"The availability of office space in the Thames Valley has continued to increase during the last six months. Agents are reporting a small increase in the number of enquiries, and some lettings, primarily on second hand space, have taken place. However, rental levels have not seen any recovery and, in many cases, are still around 40% lower than those achieved two years ago."

For further information:

The Cardiff Property plc	Richard Wollenberg	01784 437444
Arbuthnot Securities	Richard Johnson		020 7012 2000

THE CARDIFF PROPERTY PLC

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 31 MARCH 2010

INTERIM MANAGEMENT REPORT

The availability of office space in the Thames Valley has continued to increase during the last six months. Part of this additional space has resulted from the completion of office schemes which commenced their development programme some 18-24 months ago and remain vacant. Agents are reporting a small increase in the number of enquiries, and some lettings, primarily on second hand space, have taken place. However, rental levels have not seen any recovery and, in many cases, are still around 40% lower than those achieved two years ago.

Activity in the commercial property investment market has improved during the past 12 months and capital values have increased, albeit from the low levels recorded some 18 months ago. An increase in investor confidence is evident but this has been primarily concentrated towards properties let to good covenants at prime locations in Central London and the City of London.

Residential values in Surrey and Berkshire have, in certain locations, marginally increased although here again the level of activity remains low. It is noticeable that, whilst the number of enquiries has increased, purchasers and investors continue to remain very cautious.

Dividend

Your directors have declared an unchanged interim dividend of 3.3p (2009: 3.3p) which will be paid on 2 July 2010 to shareholders on the register on 4 June 2010.

Financial

For the half year ended 31 March 2010 profit before tax amounted to £0.72m (March 2009: £0.76m; September 2009: loss £0.66m) which included an after tax loss from Campmoss Property Company Limited, our 47.62% jointly controlled entity of £0.08m (March 2009: profit £0.06m; September 2009: loss £1.02m). The Campmoss figure for the period includes a write down of £0.21m relating to a reduction in a property value referred to below.

Revenue totalled £0.47m (March 2009: £0.88m; September 2009: £1.15m). Gross rental income included in these figures amounted to £0.27m (March 2009: £0.29m; September 2009: £0.56m).

Also included in revenue is the sale of a freehold residential development property amounting to £0.20m (March 2009: £0.59m; September 2009: £0.59m) which realised a profit of £0.05m (March 2009: £0.41m; September 2009: £0.41m).

A disposal of part of our quoted investment portfolio realised a profit of £0.52m (March 2009: £0.06m; September 2009: £0.06m).

The group's share of the total gross rental income of Campmoss amounted to £0.48m (March 2009: £0.45m; September 2009: £1.10m).  Under IFRS rules the Campmoss revenue figures are not included in the group revenue totals.

Profit after tax attributable to shareholders for the six month period amounted to £0.50m (March 2009: £0.56m; September 2009: loss £0.92m).  Basic earnings per share were 32.0p (March 2009: 34.6p; September 2009: loss 57.7p).

Net assets of the group as at 31 March 2010 were £17.1m (March 2009: £18.3m; September 2009: £16.8m). The company's share of the net assets of Campmoss amounted to £6.4m (March 2009: £7.5m; September 2009: £6.5m). Net assets were equivalent to 1,088p per share (March 2009: 1,167p; September 2009: 1,065p). Gearing for Cardiff was nil (March 2009: nil; September 2009: nil) and for Campmoss 60% (March 2009: 58%; September 2009: 66%).

The value of the group's property portfolio as at 31 March 2010 has been considered and the directors are of the opinion that, in the current market, any change at the half year would not be material. However, during the period, as part of its overall strategy at Market Street, Bracknell, Campmoss made a payment of £0.90m, which has been capitalised, to obtain vacant possession of a property key to that development. The directors of Campmoss have taken a cautious view of the current value of that development and, whilst planning matters are still under consideration, have decided to reduce its value by £0.45m. The group's share of this is £0.21m.

The company did not purchase any of its own shares during the period (March 2009: 97,000 shares, nominal value of £19,400 and cost of £512,051; September 2009: 121,000 shares, nominal value of £24,200 and cost of £657,285) and, other than mentioned above, there have been no material events or material changes in assets, liabilities or related party relationships since 30 September 2009.

Investment and development portfolio

The commercial property investment portfolio includes a range of office, retail and industrial units located in Egham, Windsor, Maidenhead and Cardiff.

At the Windsor Business Centre, 4 business units totalling 12,000 sq ft are let on short and medium term leases.

At Heritage Court, Egham, the 4 ground floor retail units are let on medium term leases.

At The White House, Egham, the 6 ground floor retail units and offices on the upper floor are let on medium term leases.

At Cowbridge Road, Cardiff, the property is let to The Royal Mail on a medium term lease and any commencement of the previously granted residential permission is unlikely in the current environment.

As mentioned previously one of the freehold houses in Egham was sold during the first half of the year. The remaining freehold house is let on an Assured Shorthold Tenancy Agreement.

Campmoss Property Company Limited

The company retains freehold property in Maidenhead, Woking, Burnham, Worplesdon, Bracknell and Slough.

At Bracknell, the properties at Market Street are included in the outline planning consent for The Bracknell Town Centre Scheme which was approved in 2007. A further detailed planning application will be required and is expected to be submitted shortly. At Kiln Lane, Bracknell, a development of 12 business units, 2 units have recently been refurbished and 3 smaller units created on site.  One of the smaller units has been let and agents appointed to seek lettings for the remaining 4 units.

At Tangley Place, Worplesdon, planning permission for a 92 bed care home was granted last year. The building totals approximately 42,000 sq ft. Discussions with a prospective tenant are at an advanced stage with a view to signing a new 30 year lease. Final aspects of building design and environmental considerations are currently in hand. The project is anticipated to commence once these factors have been agreed and appropriate project finance negotiated.

At Maidenhead, plans are being prepared for 2 separate high grade office schemes which total approximately 100,000 sq ft. Agents have been appointed to seek a pre-letting. Completion of Local Authority documentation permitting new access works at Highway House is currently being finalised.

At Datchet Meadows, Slough, the development comprises thirty seven 1, 2 and 3 bed apartments. Five apartments have been sold and twenty eight let on Assured Shorthold Tenancy Agreements. Further lettings and sales are currently being negotiated.

Shareholders' dealing facility

The company continues to offer a free share sale service to those shareholders who wish to dispose of holdings of 1,000 shares or less. This facility is provided by our registrars, Computershare Investor Services Plc, who can be contacted on 0870 703 0084. Shareholders should be aware that this service should not be construed as an encouragement to buy or to sell the company's shares. If in any doubt shareholders should contact their own financial advisers.

Quoted investments

During the first half of the year the majority of one of the holdings was sold realising a profit of £0.52m.

The company retains small holdings in Tribal Group Plc, ImmuPharma Plc, First Quantum Minerals Ltd and General Industries Plc. I remain a director of General Industries, a non-trading cash shell company, which is quoted on the PLUS market.

Outlook

It is encouraging to see signs of office rental recovery in the City of London and the activity and confidence that this generates. This should, eventually, reflect in an improving office letting market for Heathrow and the West of London. However, in view of the substantial amount of office space currently available within this area, I remain of the view that it will be some time before any recovery takes place.

I look forward to reporting further progress at the year end in respect of the projects currently in hand.

J Richard Wollenberg

Chairman

28 April 2010

Condensed Consolidated Interim Income Statement

FOR THE SIX MONTHS ENDED 31 MARCH 2010

	Six months 31 March 2010 (Unaudited) £'000	Six months 31 March 2009 (Unaudited) £'000	Year 30 September 2009 (Audited) £'000
Revenue	474	884	1,153
Cost of sales	(185)	(256)	(296)
	______	______	______
Gross profit	289	628	857
Administrative expenses	(194)	(201)	(406)
Other operating income	125	120	257
	______	______	______
Operating profit before gains on investment properties and other investments	220	547	708
Profit on sale of fixed assets	-	-	1
Profit on sale of other investments	524	55	55
Deficit on revaluation of investment properties	-	-	(575)
	______	______	______
Operating profit	744	602	189
Interest receivable and similar income	61	98	177
Share of results of jointly controlled entity	(83)	57	(1,022)
	______	______	______
Profit/(loss) before taxation	722	757	(656)
Taxation	(218)	(195)	(267)
	______	______	______
Profit/(loss) for the period attributable to equity holders	504	562	(923)
	______	______	______
Earnings/(loss) per share on profit/(loss) for the period  -  pence
Basic	32.0	34.6	(57.7)
Diluted	32.0	34.5	(57.7)
	______	______	______
Dividends
Final 2009 paid 9.0p (2008: 9.0p)	142	141	141
Interim 2009 paid 3.3p (2008: 3.3p)	-	-	52
	______	______	______
	142	141	193
	______	______	______
Final 2009 proposed 9.0p	-	-	142
Interim 2010 proposed 3.3p (2009: 3.3p)	52	52	-
	______	______	______
	52	52	142
	______	______	______

The above results relate entirely to continuing activities. There were no acquisitions or disposals of businesses during the period.

Condensed Consolidated Interim Balance Sheet

AT 31 MARCH 2010

	31 March 2010 (Unaudited) £'000	31 March 2009 (Unaudited) £'000	30 September 2009 (Audited) £'000
Non-current assets
Investment properties	4,025	4,790	4,025
Investment in jointly controlled entity	6,364	7,526	6,447
Property, plant and equipment	195	5	197
Other financial assets	263	295	293
Deferred tax asset	23	20	23
	______	______	______
Total non-current assets	10,870	12,636	10,985
	______	______	______
Current assets
Stock and work in progress	668	808	807
Trade and other receivables	2,769	2,272	2,334
Cash and cash equivalents	3,853	3,556	3,482
	______	______	______
Total current assets	7,290	6,636	6,623
	______	______	______
Total assets	18,160	19,272	17,608
	______	______	______
Current liabilities
Corporation tax	(477)	(392)	(261)
Trade and other payables	(417)	(434)	(445)
	______	______	______
Total current liabilities	(894)	(826)	(706)
	______	______	______
Non-current liabilities
Provisions	(65)	(65)	(65)
Deferred tax liability	(71)	(65)	(69)
	______	______	______
Total non-current liabilities	(136)	(130)	(134)
	______	______	______
Total liabilities	(1,030)	(956)	(840)
	______	______	______
Net assets	17,130	18,316	16,768
	______	______	______
Capital and reserves
Called up share capital	315	314	315
Share premium account	5,076	4,946	5,076
Other reserves	2,338	2,333	2,338
Investment property revaluation reserve	1,190	3,194	1,404
Retained earnings	8,211	7,529	7,635
	______	______	______
Shareholders' funds attributable to equity holders	17,130	18,316	16,768
	______	______	______
Net assets per share	1,088p	1,167p	1,065p
	______	______	______

Condensed Consolidated Interim Statement of Cash Flows

FOR THE SIX MONTHS ENDED 31 MARCH 2010

	Six months 31 March 2010 (Unaudited) £'000	Six months 31 March 2009 (Unaudited) £'000	Year 30 September 2009 (Audited) £'000
Cash flows from operating activities
Profit/(loss) for the period	504	562	(923)
Adjustments for:
Depreciation, amortisation and impairment	2	1	3
Financial income	(61)	(98)	(177)
Share of result of jointly controlled entity	83	(57)	1,022
Profit on sale of other investments	(524)	(55)	(55)
Profit on disposal of fixed assets	-	-	(1)
Deficit on revaluation of investment properties	-	-	575
Taxation	218	195	267
	______	______	______
Cash flows from operations before changes in working capital	222	548	711
Decrease in stock	139	184	185
(Increase)/decrease in trade and other receivables	(435)	96	34
Decrease in trade and other payables	(28)	(50)	(39)
	______	______	______
Cash (absorbed by)/generated from operations	(102)	778	891
Tax paid	-	-	(202)
	______	______	______
Net cash (outflows)/inflows from operating activities	(102)	778	689
	______	______	______
Cash flows from investing activities
Interest received	61	98	177
Acquisition of property, investments and plant and equipment	-	(2)	(8)
Proceeds of disposals of property, investments and plant and equipment	554	80	83
	______	______	______
Net cash flows from investing activities	615	176	252
	______	______	______
Cash flows from financing activities
Exercise of options	-	-	136
Purchase of own shares	-	(512)	(657)
Dividends paid	(142)	(141)	(193)
	______	______	______
Net cash flows from financing activities	(142)	(653)	(714)
	______	______	______
Net increase in cash and cash equivalents	371	301	227
Cash and cash equivalents at beginning of period	3,482	3,255	3,255
	______	______	______
Cash and cash equivalents at end of period	3,853	3,556	3,482
	______	______	______

Other Primary Statements

FOR THE SIX MONTHS ENDED 31 MARCH 2010

Condensed Consolidated Interim Statement of Comprehensive Income and Expense

	Six months 31 March 2010 (Unaudited) £'000	Six months 31 March 2009 (Unaudited) £'000	Year 30 September 2009 (Audited) £'000
Profit/(loss) for the period	504	562	(923)
	______	______	______
Other items recognised directly in equity
Net change in fair value of available for sale financial assets	-	-	(2)
	______	______	______
Expense recognised directly in equity	-	-	(2)
	______	______	______
Total comprehensive income and expense for the period attributable to equity shareholders of the parent company	504	562	(925)
	______	______	______

Condensed Consolidated Interim Statement of Changes in Equity

	Share capital £'000	Share premium account £'000	Other reserves £'000	Investment property revaluation reserve £'000	Retained earnings £'000	Total equity £'000
At 1 October 2008	333	4,946	2,314	3,194	7,620	18,407
Profit for the period	-	-	-	-	562	562
Transactions with equity-holders
Dividends	-	-	-	-	(141)	(141)
Purchase of own shares	(19)	-	19	-	(512)	(512)
	______	______	______	______	______	______
Total transactions with equity-holders	(19)	-	19	-	(653)	(653)
	______	______	______	______	______	______
At 31 March 2009	314	4,946	2,333	3,194	7,529	18,316
Loss for the period	-	-	-	-	(1,485)	(1,485)
Other comprehensive income	-	-	-	-	(2)	(2)
Transactions with equity-holders
Dividends	-	-	-	-	(52)	(52)
New shares issued	6	130	-	-	-	136
Purchase of own shares	(5)	-	5	-	(145)	(145)
	______	______	______	______	______	______
Total transactions with equity-holders	1	130	5	-	(197)	(61)
Transfer on revaluation of investment properties	-	-	-	(1,790)	1,790	-
	______	______	______	______	______	______
At 30 September 2009	315	5,076	2,338	1,404	7,635	16,768
Profit for the period	-	-	-	-	504	504
Transactions with equity-holders
Dividends	-	-	-	-	(142)	(142)
	______	______	______	______	______	______
Total transactions with equity-holders	-	-	-	-	(142)	(142)
	______	______	______	______	______	______
Transfer on revaluation of investment properties	-	-	-	(214)	214	-
	______	______	______	______	______	______
At 31 March 2010	315	5,076	2,338	1,190	8,211	17,130
	______	______	______	______	______	______

Statement of Responsibility

FOR THE SIX MONTHS ENDED 31 MARCH 2010

The directors are responsible for preparing the condensed consolidated financial statements for the six months ended 31 March 2010 and they acknowledge, to the best of their knowledge and belief, that:

·      the condensed consolidated financial statements for the six months ended 31 March 2010 have 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 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

David A Whitaker, Finance director

Nigel D Jamieson, Independent non-executive director

28 April 2010

Notes to the Financial Statements

FOR THE SIX MONTHS ENDED 31 MARCH 2010

1. Status of interim report

The condensed consolidated financial statements for the six months ended 31 March 2010 have been prepared using applicable International Financial Reporting Standards adopted by the European Union ("IFRS"), which includes IAS 34 and interpretations issued by the International Accounting Standards Board ("IASB") and its committees, which are expected to be endorsed by the European Union. The interim financial information has been prepared in accordance with the Listing Rules of the Financial Services Authority and was approved by the board on 28 April 2010. They are unaudited and do not comprise statutory accounts within the meaning of section 435 (1) of the Companies Act 2006.

The comparative figures for the financial year ended 30 September 2009 are not the company's statutory accounts for that financial year. Those accounts have been reported on by the company's auditors and delivered to the registrar of companies. The report of the auditors was: unqualified; did not give any reference to any matters to which the auditors 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.

2. Basis of preparation

Accounting policies

The condensed consolidated interim financial statements have been prepared applying the accounting policies and presentation that were applied in the preparation of the group's published financial statements for the year ended 30 September 2009, except for the application of revised IAS 1 - Presentation of Financial Statements (2007) which became effective for accounting periods beginning on or after 1 January 2009. Whilst numerous other IFRSs and Interpretations have been endorsed in the period to 31 March 2010 and have been adopted by the group, none of them has had a material impact on these interim financial statements.

The revised presentation required by IAS 1 results in the consolidated statement of recognised income and expense being replaced by a new consolidated statement of comprehensive income and expense. A consolidated statement of changes in equity is also required as a primary statement. This statement shows all changes in each component of equity for each period presented.

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 in the calculation 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 portfolio at the end of each financial year. The directors of the jointly controlled entity 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 jointly controlled entity 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 program 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.

3. Segmental analysis

The group has only one reporting segment being property investment and development.

	Six months 31 March 2010 (Unaudited) £'000	Six months 31 March 2009 (Unaudited) £'000	Year 30 September 2009 (Audited) £'000
Revenue (wholly in the United Kingdom)
Property and other investments being gross rents receivable	276	292	561
Property development being sale of development properties	198	592	592
	______	______	______
	474	884	1,153
	______	______	______
Profit/(loss) before taxation
Property and other investments	600	282	(1,206)
Property development	122	475	550
	______	______	______
	722	757	(656)
	______	______	______

The operations of the group are not seasonal.

4. Taxation

The tax position for the six months is estimated on the basis of the anticipated tax rates applying for the full year.

5. Dividends

The interim dividend of 3.3p per share will be paid on 2 July 2010 to shareholders on the register on 4 June 2010. Under accounting standards this dividend is not included in the condensed consolidated interim financial statements for the six months ended 31 March 2010.

6. Earnings/(loss) per share

Earnings/(loss) per share has been calculated using the profit after tax for the period of £504,000 (six months to 31 March 2009: £562,000; year to 30 September 2009: loss £923,000) and the weighted average number of shares as follows:

	Weighted average number of shares
	31 March 2010	31 March 2009	30 September 2009
Basic	1,575,007	1,624,436	1,599,949
Adjustment to basic for bonus element of shares to be issued on exercise of options	-	5,914	4,410
	_________	_________	_________
Diluted	1,575,007	1,630,350	1,604,359
	_________	_________	_________

7.   Purchase of own shares for cancellation

During the period no ordinary shares of 20 pence each were purchased and cancelled (March 2009: 97,000 shares, nominal value of £19,400 and cost of £512,051; September 2009: 121,000 shares, nominal value of £24,200 and cost of £657,285).

Directors and Advisers

Directors	Auditors
J Richard Wollenberg	KPMG Audit Plc
Chairman and chief executive
David A Whitaker FCA
Finance director	Stockbrokers and financial advisers
Nigel D Jamieson BSc, MRICS, FSI	Arbuthnot Securities Limited
Independent non-executive director
Secretary	Bankers
David A Whitaker FCA	HSBC Bank plc
Non-executive director of wholly owned subsidiary	Solicitors
First Choice Estates plc	Morgan Cole
Derek M Joseph BCom, FCIS, MSII
Head office	Registrar and transfer office
56 Station Road	Computershare Investor Services Plc
Egham TW20 9LF	PO Box 82
Telephone: [phone]	The Pavilions
Fax: [phone]	Bridgwater Road
E-mail: [e-mail]	Bristol BS99 7NH
Web: www.cardiff-property.com	Telephone: [phone]
	Dealing line: 0870 703 0084
Registered office	Registered number
Marlborough House	22705
Fitzalan Court
Fitzalan Road
Cardiff CF24 0TE

Financial Calendar

2010	29 April	Interim results for 2010 announced
	2 June	Ex dividend date for interim dividend
	4  June	Record date for interim dividend
	2  July	Interim dividend to be paid
	30 September	End of accounting year
	December	Final results for 2010 announced
2011	January	Annual general meeting
	February	Final dividend to be paid

 

END

 

 

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