Interim Results

Cardiff Property PLC 11 May 2001 The Cardiff Property plc 56 Station Road, Egham, Surrey TW20 9LF Tel: 01784 437444 Fax: 01784 439157 E-mail: webmaster@cardiff-property.com Web: www.cardiff-property.com FOR RELEASE 7.00 AM 11 MAY 2001 (The group, including Campmoss, specialises in property investment and development in the Thames Valley. The portfolio is primarily located to the west of London, close to Heathrow Airport and in Surrey and Berkshire.) INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2001 HIGHLIGHTS Group turnover £5.0m (2000: £6.6m)* Property sales £4.2m (2000: £5.9m) Net assets per share 636p (2000: 531p)** Profit before tax £1.8m (2000: £1.9m) Earnings per share 63p (2000: 65p) Interim dividend 1.6p per share (2000: 1.4p) Gearing nil (2000: nil) * Includes the group's share of Campmoss ** Properties not re-valued at half-year Richard Wollenberg, chairman, commented: 'Property values to the west of London continue to benefit from a stable UK economic climate. Take up of new office space remains buoyant. However, lower equity markets will inevitably influence expansion plans for many telecommunications and hi-tech businesses in the Thames Valley and therefore your directors are currently taking a cautious approach in their appraisal of new projects. The group's two office schemes in Maidenhead, expected to complete next year, should, when let, generate substantial additional gross income and capital values.' For further information The Cardiff Property plc Richard Wollenberg 01784 437444 Old Mutual Securities Ltd Will Martin 020 7002 4653 Binns & Co Public Relations Ltd Brian Coleman-Smith 020 7786 9600 Chairman's interim statement Dear shareholder The group has continued to make excellent progress in the six months to 31 March 2001. Profit on ordinary activities, including Campmoss Property Company Limited, our 47.62% joint venture undertaking, totalled £1.79m against £1.86m for the same period last year. These profits primarily resulted from the sale of completed developments. In the case of the six month period now being reported upon, sales included the recently built country house at Hambledon and The Lodge at Brookwood, both located in Surrey. The sale proceeds of these completed developments amounted to £4.19m resulting in profits of £1.41m. Turnover totalled £4.97m (2000: £6.58m). Gross rental income rose to £0.78m (2000: £0.69m) and earnings per share were 63p (2000: 65p). The group's share of profits from Campmoss amounted to £0.07m (2000: £0.10m). This lower figure reflects interest costs attributable to completion of the development at Bracknell, now fully let, and recently acquired commercial property in Maidenhead. Your board has declared an increased interim dividend of 1.6p (2000: 1.4p) which will be paid on 12 July 2001 to shareholders on the register on 15 June 2001. The group's property portfolio is valued annually at the September year-end. Net assets at the half-year-ending 31 March 2001 including our share of Campmoss, totalled £17.76m (2000: £14.85m) equivalent to 636p per share (March 2000: 531p; September 2000: 575p). Successful property sales have generated substantial cash balances which are currently placed on short and medium term deposit awaiting the acquisition of further properties. The group's bank borrowing facilities remain available. Long term borrowings remain at £3.2m and are linked to base rate. Gearing was nil (2000: nil) at the half-year. The Thames Valley - Heathrow west of London, the M25, M4 and M3 Motorways Property values to the west of London continue to benefit from a stable UK economic climate. Compared with previous years, construction projects in the Thames Valley increased over the early part of this year although it is interesting to note that over 50% of office schemes are either pre-let or being purpose built. Take up of new office space remains buoyant and the prospect of even lower interest rates is encouraging further investment into the property market. Although these factors will help to counter any anticipated slow down in the US and UK economies, the effect of lower equity markets will inevitably influence expansion plans for many telecommunications and hi-tech businesses. As shareholders will appreciate the Thames Valley has the largest concentration of such businesses in Europe and therefore your directors are currently taking a cautious approach in their appraisal of new projects. As evidenced by our recent sales of residential property the demand for new homes remains strong. Uncertainty in world equity markets will limit any further advances in capital values but as always a difficult planning regime continues to restrict the supply of land for new homes. The investment and development portfolio The investment portfolio continues to include commercial property in Windsor, Egham, Hatton Cross and Cardiff. These properties are let on full repairing and insuring leases and gross rental income including recent lettings now amounts to £604,000 per annum. Our major refurbishment scheme of six business units at the Windsor Business Centre totalling 20,000 sq ft is now fully let, producing a gross rental income of £212,000 per annum. Two residential investment properties in Windsor and one in Egham are both income producing. Planning permission for ten flats has been secured on one of the properties in Windsor subject to a Section 106 agreement yet to be agreed. A small residential property in Reading has been sold subsequent to the half-year. Campmoss Property Company Limited Campmoss retains as investments two high-grade office buildings Britannia Wharf, Woking, and The Priory, Burnham, as well as twelve business units at Kiln Lane, Bracknell. These properties, developed by Campmoss, produce a gross income of £1.55m per annum. At Maidenhead, following the grant of planning consents for a total of 40,000 sq ft net B1 office space, development work is now underway for a new 30,000 sq ft high grade office building to be known as Cannon Court. Demolition and construction of a new 10,000 sq ft high-grade office building at York House is expected to commence shortly. Detailed discussions continue with the Local Planning Authority to obtain consent for office redevelopment at Tangley Place, Worplesdon, Surrey, and Gowring House, Bracknell, Berkshire. Gowring House remains let on short-term leases. Additional borrowing facilities have recently been completed which, together with existing facilities and cash balances, will fund the current development programme. Quoted investments The value of our quoted investment portfolio continues to show an increase over cost. In January this year we received a cash payment from part of our investment in Grantchester generating a profit of £0.08m. Monitoring of our investments remains an important factor. Other investments offering the prospect for capital growth will continue to be considered by your board. Outlook The group's development programme currently comprises two separate office schemes in Maidenhead totalling 40,000 sq ft with the first scheme of 30,000 sq ft expected to complete early next year. Agents have been appointed to market both office buildings which, when complete and let, should generate substantial additional gross income and capital value. Whilst your directors take a cautious view of the market, our strategy is to acquire further property located in the Thames Valley. The group has substantial funds available to make selective purchases and we will continue to actively pursue investment and development opportunities. I therefore look forward to reporting to you in December with the year end figures. J Richard Wollenberg Chairman 10 May 2001 Consolidated profit and loss account for the six months ended 31 March 2001 Six months Six months Year 31 March 31 March 30 September 2001 2000 2000 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Turnover Group and share of joint venture 4,967 6,576 8,012 undertaking Less: share of joint venture undertaking (399) (386) (785) ______ ______ ______ Group turnover 4,568 6,190 7,227 Cost of sales (2,809) (4,092) (4,357) ______ ______ ______ Gross profit 1,759 2,098 2,870 Administrative expenses (228) (363) (512) Other operating income 96 105 167 ______ ______ ______ Operating profit Group 1,627 1,840 2,525 Share of operating profit in joint venture 276 287 570 undertaking ______ ______ ______ Total 1,903 2,127 3,095 Profit on sale of investment (group) 75 - - Amounts written off investments (group) (50) - (50) ______ ______ ______ Profit on ordinary activities before interest 1,928 2,127 3,045 Interest receivable and similar income Group 169 21 174 Share of joint venture undertaking 3 1 2 Interest payable Group (102) (109) (242) Share of joint venture undertaking (212) (185) (420) ______ ______ ______ Profit on ordinary activities before taxation 1,786 1,855 2,559 Tax on profit on ordinary activities (38) - - ______ ______ ______ Profit on ordinary activities after taxation 1,748 1,855 2,559 being profit for the period Dividends (45) (35) (134) ______ ______ ______ Retained profit for the period 1,703 1,820 2,425 ______ ______ ______ Earnings per share - pence Basic 62.5 65.0 90.7 Diluted 61.6 64.3 89.6 ______ ______ ______ The above results relate entirely to continuing activities. There were no acquisitions or disposals of businesses during the period. Consolidated balance sheet at 31 March 2001 31 March 31 March 30 September 2001 2000 2000 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Fixed assets: Tangible assets: Investment properties 7,025 6,613 7,025 Other 12 24 18 ______ ______ ______ 7,037 6,637 7,043 ______ ______ ______ Investments: Investment in joint venture undertaking Share of gross assets 10,456 9,317 10,401 Share of gross liabilities (5,995) (5,256) (6,005) ______ ______ ______ 4,461 4,061 4,396 Other investments 700 468 748 ______ ______ ______ 5,161 4,529 5,144 ______ ______ ______ Total fixed assets 12,198 11,166 12,187 ______ ______ ______ Current assets Stock and work in progress 1,215 2,990 3,290 Debtors 1,620 176 1,825 Cash at bank and in hand 7,435 5,613 3,464 ______ ______ ______ 10,270 8,779 8,579 Creditors: amounts falling due within one year (1000) (1,759) (1,301) ______ ______ ______ Net current assets 9,270 7,020 7,278 ______ ______ ______ Total assets less current liabilities 21,468 18,186 19,465 Creditors: amounts falling due after more than (3,200) (3,200) (3,200) one year Provisions for liabilities and charges (505) (140) (205) ______ ______ ______ Net assets 17,763 14,846 16,060 ______ ______ ______ Capital and reserves Called up share capital 559 559 559 Share premium account 4,815 4,815 4,815 Investment property revaluation reserve 4,242 3,629 4,242 Other reserves 2,075 2,075 2,075 Profit and loss account 6,072 3,768 4,369 ______ ______ ______ Shareholders' funds - equity 17,763 14,846 16,060 ______ ______ ______ Consolidated cash flow statement for the six months ended 31 March 2001 Six months Six months Year 31 March 31 March 30 September 2001 2000 2000 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Cash inflow from operating activities 4,278 5,175 3,272 Returns on investment and servicing of 29 (86) (44) finance Taxation - (3) (5) Capital expenditure and financial investment 73 (13) (428) Equity dividends paid (95) (82) (123) ______ ______ ______ Cash inflow before financing 4,285 4,991 2,672 Financing - (531) (534) ______ ______ ______ Increase in cash in the six months 4,285 4,460 2,138 ______ ______ ______ Reconciliation of net cash flow to movement in net debt Increase in cash in the six months 4,285 4,460 2,138 ______ ______ ______ Movement in net debt in the six months resulting from cash 4,285 4,460 2,138 flow Net debt at beginning of period (50) (2,188) (2,188) ______ ______ ______ Net debt at end of period 4,235 2,272 (50) ______ ______ ______ Reconciliation of operating profit to net cash flow from operating activities Operating profit - group 1,627 1,840 2,525 Depreciation charges 6 6 13 Decrease in stock and work in progress 2,075 2,014 1,714 Decrease/(increase) in debtors 193 212 (1,425) Increase in creditors and provisions 377 1,103 445 ______ ______ ______ 4,278 5,175 3,272 ______ ______ ______ Notes to the financial statements 1. Basis of preparation The figures for the six months ended 31 March 2001, which were approved by the board on 10 May 2001, are prepared on the same basis of accounting as for the year ended 30 September 2000 and are unaudited. The figures for the year-ended 30 September 2000 are extracted from the statutory financial statements for that year which have been filed with the Registrar of Companies and on which the auditors gave an unqualified report, without any statement under section 237(2) or (3) of the Companies Act 1985. 2. Analysis of turnover, profit on ordinary activities before interest and taxation and net operating assets Six months Six month Year 31 March 31 March 30 September 2001 2000 2000 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Turnover (wholly in the United Kingdom): Gross rents receivable Group 383 308 669 Share of joint venture undertaking 399 386 785 Sale of development properties Group 4,185 5,882 6,558 Share of joint venture undertaking - - - ______ ______ ______ 4,967 6,576 8,012 ______ ______ ______ Profit on ordinary activities before interest and taxation: Property and other investment Group 238 36 131 Share of joint venture undertaking 276 287 570 Property development Group 1,414 1,804 2,344 Share of joint venture undertaking - - - ______ ______ ______ 1,928 2,127 3,045 ______ ______ ______ Net operating assets: Property and other investment 9,382 11,115 9,117 Property development 8,381 3,731 6,943 ______ ______ ______ 17,763 14,846 16,060 ______ ______ ______ 3. Taxation The tax position for the six months is estimated on the basis of the anticipated tax rates applying for the full year. 4. Dividends Year Year 30 September 30 September 2001 2000 £'000 £'000 Interim 1.6p per share 45 Interim 1.4p per share 39 Final - Final 3.4p per share 95 ______ ______ 45 134 ______ ______ The interim dividend of 1.6p per share will be paid on 12 July 2001 to shareholders on the register on 15 June 2001. 5. Earnings per share Earnings per share have been calculated in accordance with FRS14 - 'Earnings per share', using the profit after tax for the period of £ 1,748,000 (six months to 31 March 2000: £1,855,000; year to 30 September 2000: £2,559,000) and the weighted average number of shares as follows: Weighted average number of shares 31 March 31 March 31 September 2001 2000 2000 Basic 2,795,014 2,851,648 2,822,242 Adjustment to basic for bonus element of shares to be issued on exercise of options 44,427 32,499 34,772 _________ _________ _________ Diluted 2,839,441 2,884,147 2,857,014 _________ _________ _________ Financial Calendar 2001 11 May Interim results for 2000/2001 announced 13 June Ex-dividend date 15 June Record date for interim dividend 12 July Interim dividend to be paid 30 September End of accounting year December Final results for 2000/2001 announced 2002 January Annual general meeting February Final dividend to be paid Directors and Advisers Directors Auditors J Richard Wollenberg, KPMG Audit Plc Chairman and chief executive David A Whitaker FCA Nigel D Jamieson BSc, MRICS, FSI, Stockbrokers and financial advisers Independent non-executive director Old Mutual Securities Limited Secretary Bankers David A Whitaker FCA HSBC Bank plc Non-executive director of wholly owned Solicitors subsidiary First Choice Estates plc Charles Russell Derek M Joseph BCom, FCIS, MIMC, MBIM Morgan Cole Head office Public relations 56 Station Road Binns & Co Public Relations Limited Egham Surrey TW20 9LF Telephone: 01784 437444 Registrar and transfer office Fax: 01784 439157 Computershare Services plc E-mail: webmaster@cardiff-property.com PO Box 82 Web: www.cardiff-property.com The Pavilions Bridgewater Road Bristol BS99 7NH Registered office Telephone: 0870 702 0001 Marlborough House Fitzalan Court Fitzalan Road Cardiff CF24 0TE Registered number 22705

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