Interim Results

Cardiff Property PLC 10 May 2002 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 10 MAY 2002 (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 2002 HIGHLIGHTS Group turnover £1.0m (2001: £5.0m)* Investment property sales £0.5m (2001: nil) Development property sales £0.2m (2001: £4.2m) Net assets per share 691p (2001: 636p)** Profit before tax £0.8m (2001: £1.8m) Earnings per share 24p (2001: 63p) Interim dividend 1.8p per share (2001: 1.6p) Gearing nil (2001: nil) * Includes the group's share of Campmoss ** Properties not re-valued at half-year Net assets per share 30 September 2001: 652p Richard Wollenberg, chairman, commented: 'The Thames Valley remains one of the most important office locations in the UK. The recent planning approval to construct a fifth terminal at Heathrow will ensure continued expansion of the airport and encourage the growth of new and existing users in the area. Uncertainty surrounding an economic recovery and fluctuations in interest rates continue to be major factors in determining market movement and I remain, therefore, cautious. However, the directors will continue the group's existing development programme and seek to acquire further property investment and development opportunities.' For further information The Cardiff Property plc Richard Wollenberg 01784 437444 Old Mutual Securities Ltd Kevin Wilson 0161 819 2110 Binns & Co Public Relations Ltd Brian Coleman-Smith 020 7786 9600 Chairman's interim statement Over the last six months the property market has proven extremely resilient to the many uncertainties surrounding financial markets. Residential prices have increased as a result of strong consumer demand, low interest rates and the continued difficulty in obtaining suitable planning permissions. In the commercial investment property market marginally higher yields have encouraged institutions and private investors to remain positive and add to their property portfolio weightings. Office rents have however seen a marginal decline as tenant demand remains low and availability of new and second-hand office space has increased. At the end of last year your directors took a cautious view of the property market and a number of properties were sold. Investment income and profit from completed developments will therefore be lower in the current year. The group has purchased two residential properties for development and retains substantial cash balances for future investment. For the six month period to 31 March 2002 profit on ordinary activities, including Campmoss Property Company Ltd, our 47.62% joint venture undertaking, totalled £0.83m (2001: £1.79m). The sales of residential property at Egham and Windsor, including overage payments in respect of previous sales, amounted to £0.69m resulting in profits of £0.43m. Gross rental income was £0.79m (2001: £0.78m) and earnings per share 24p (2001: 63p). The group's share of profits from Campmoss amounted to £0.13m (2001: £0.07m). Dividend Your directors have declared an increased interim dividend of 1.8p per share (2001: 1.6p) which will be paid on 11 July 2002 to shareholders on the register on 14 June 2002. Financial At the half-year, based on September 2001 property values, net assets including our share of Campmoss totalled £15.98m (2001: £17.76m) equivalent to 691p per share (March 2001: 636p, September 2001: 652p). During the first half of the year the company purchased 300,000 ordinary shares for cancellation at prices between 531p and 535p at a consideration of £1.61m. The group's cash balances of £6.40m are currently on short and medium-term deposit. Long-term borrowings remain at £3.2m on variable rates attached to LIBOR. Gearing at the half-year was nil (2001: nil). The investment and development portfolio The property portfolio continues to be primarily located to the west of London and close to Heathrow Airport and in the counties of Surrey and Berkshire. Commercial properties in Windsor and Egham are let on medium to long-term full repairing and insuring leases providing a total annual rental of just under £0.7m. We continue to negotiate with Consignia plc for a new lease at our property in Cardiff. Residential properties in Windsor and Egham, let on short-term tenancies, are being retained for income purposes. I am pleased to report that planning permission has been granted for the construction of a new 5,000 sq ft executive house at Ashleigh Lodge, Virginia Water, Surrey. I anticipate that building work will commence shortly with completion by the middle of next year. The property, situated within the Green Belt, stands in approximately two acres of ground. In February contracts were exchanged to acquire a residential property in Egham, Surrey, and plans have been submitted for the redevelopment of four new houses. Campmoss Property Company Limited The investment portfolio is represented by commercial properties in Woking, Burnham and Bracknell. These properties, all developed by Campmoss, are primarily let on medium to long-term leases, producing an annual gross income of just under £1.5m. At Maidenhead the development of a new 30,000 sq ft office building is expected to be completed within the next few months and letting agents have been appointed to secure a tenant. Plans for the commencement of development of a new 11,000 sq ft office building at a separate site at Maidenhead are well advanced and I anticipate a twelve month construction programme. Revised planning applications for new office developments at our properties in Bracknell and Worplesdon have been submitted and detailed discussions with the local planning authority are currently taking place. The current and anticipated development programme will be funded from existing borrowing facilities. Quoted Investments We have reduced our holding in Grantchester Holdings PLC and our investment in The Celltalk Group PLC has been written down to its market value. HACAS Group PLC has continued to perform well. The market value of our quoted investment portfolio remains in excess of cost. Outlook The availability of new and existing office space in the Thames Valley, M25/M4 area has, as expected, increased. Take up of new space has declined but recent lettings indicate only a minor fall in rents. Competition between landlords to secure a tenant is inevitably increasing but the limited supply of new buildings will provide a cushion against any major set back. The Thames Valley remains one of the most important office locations in the UK. The recent planning approval to construct a fifth terminal at Heathrow will ensure continued expansion of the airport and encourage the growth of new and existing users in the area. Uncertainty surrounding an economic recovery and fluctuations in interest rates continue to be major factors in determining market movement and I remain, therefore, cautious. However, your directors will continue the group's existing development programme and seek to acquire further property investment and development opportunities. I look forward to reporting further progress to you in December with the year-end figures. J Richard Wollenberg Chairman 10 May 2002 Consolidated Profit and Loss Account for the six months ended 31 March 2002 Six months Six months Year 31 March 31 March 30 September 2002 2001 2001 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Turnover Group and share of joint venture undertaking 977 4,967 5,822 Less: share of joint venture undertaking (408) (399) (820) ______ ______ ______ Group turnover 569 4,568 5,002 Cost of sales 31 (2,809) (2,993) ______ ______ ______ Gross profit 600 1,759 2,009 Administrative expenses (178) (228) (473) Other operating income 107 96 184 ______ ______ ______ Operating profit Group 529 1,627 1,720 Share of operating profit in joint venture undertaking 316 276 615 ______ ______ ______ Total 845 1,903 2.335 Profit on sale of investment property (group) 249 75 247 Profit on sale of other investments (group) 16 - 141 Amounts written off investment (group) (187) (50) (208) ______ ______ ______ Profit on ordinary activities before interest 923 1,928 2,515 Interest receivable and similar income Group 160 169 398 Share of joint venture undertaking 3 3 14 Interest payable Group (75) (102) (229) Share of joint venture undertaking (186) (212) (434) ______ ______ ______ Profit on ordinary activities before taxation 825 1,786 2,264 Tax on profit on ordinary activities (224) (38) (148) ______ ______ ______ Profit on ordinary activities after taxation being 601 1,748 2,116 profit for the period Dividends (42) (45) (148) ______ ______ ______ Retained profit for the period 559 1,703 1,968 ______ ______ ______ Earnings per share - pence Basic 23.8 62.5 76.4 Diluted 23.4 61.6 75.2 ______ ______ ______ 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 2002 31 March 31 March 30 September 2002 2001 2001 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Fixed assets Tangible assets: Investment properties 5,955 7,025 6,210 Other 4 12 7 ______ ______ ______ 5,959 7,037 6,217 ______ ______ ______ Investments: Investment in joint venture undertaking Share of gross assets 11,680 10,456 11,377 Share of gross liabilities (6,956) (5,995) (6,786) ______ ______ ______ 4,724 4,461 4,591 Other investments 385 700 608 ______ ______ ______ 5,109 5,161 5,199 ______ ______ ______ Total fixed assets 11,068 12,198 11,416 ______ ______ ______ Current assets Stock and work in progress 2,169 1,215 2,106 Debtors 990 1,620 394 Cash at bank and in hand 6,419 7,435 7,964 ______ ______ ______ 9,578 10,270 10,464 Creditors: amounts falling due within one year (920) (1,000) (1,008) ______ ______ ______ Net current assets 8,658 9,270 9,456 ______ ______ ______ Total assets less current liabilities 19,726 21,468 20,872 Creditors: amounts falling due after more than one year (3,200) (3,200) (3,200) Provisions for liabilities and charges (546) (505) (640) ______ ______ ______ Net assets 15,980 17,763 17,032 ______ ______ ______ Capital and reserves Called up share capital 463 559 523 Share premium account 4,815 4,815 4,815 Investment property revaluation reserve 4,027 4,242 4,162 Other reserves 2,170 2,075 2,111 Profit and loss account 4,505 6,072 5,421 ______ ______ ______ Shareholders' funds - equity 15,980 17,763 17,032 ______ ______ ______ Consolidated cash flow statement for the six months ended 31 March 2002 Six months Six months Year 31 March 31 March 30 September 2002 2001 2001 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Cash (outflow)/inflow from operating activities (345) 4,278 4,572 Returns on investment and servicing of finance 88 29 157 Capital expenditure and financial investment 556 73 995 Equity dividends paid (104) (95) (139) ______ ______ ______ Cash inflow before financing 195 4,285 5,585 Financing (1,711) - (805) ______ ______ ______ (Decrease)/increase in cash in the six months (1,516) 4,285 4,780 ______ ______ ______ Reconciliation of net cash flow to movement in net funds (Decrease)/increase in cash and movement in net (1,516) 4,285 4,780 funds/(debt) in the period resulting from cash flows Net funds/(debt) at beginning of period 4,730 (50) (50) ______ ______ ______ Net funds at end of period 3,214 4,235 4,730 ______ ______ ______ Reconciliation of operating profit to net cash flow from operating activities Operating profit - group 529 1,627 1,720 Depreciation charges 3 6 11 (Increase)/decrease in stock and work in progress (63) 2,075 1,184 (Increase)/decrease in debtors (600) 193 1,473 (Decrease)/increase in creditors and provisions (214) 377 184 ______ ______ ______ (345) 4,278 4,572 ______ ______ ______ Notes to the financial statements 1. Basis of preparation The figures for the six months ended 31 March 2002, which were approved by the board on 10 May 2002, are prepared on the same basis of accounting as for the year-ended 30 September 2001 and are unaudited. The figures for the year-ended 30 September 2001 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 2002 2001 2001 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Turnover (wholly in the United Kingdom): Gross rents receivable Group 384 383 817 Share of joint venture undertaking 408 399 820 Sale of development properties Group 185 4,185 4,185 ______ ______ ______ 977 4,967 5,822 ______ ______ ______ Profit on ordinary activities before interest and taxation: Property and other investment Group 422 238 753 Share of joint venture undertaking 316 276 615 Property development Group 185 1,414 1,147 ______ ______ ______ 923 1,928 2,515 ______ ______ ______ Net operating assets: Property and other investment 12,004 9,382 9,187 Property development 3,976 8,381 7,845 ______ ______ ______ 15,980 17,763 17,032 ______ ______ ______ 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 2002 2001 £'000 £'000 Interim 1.8p per share 42 Interim 1.6p per share 44 Final - Final 4.0p per share 104 ______ ______ 42 148 ______ ______ The interim dividend of 1.8p per share will be paid on 11 July 2002 to shareholders on the register on 14 June 2002. 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 £601,000 (six months to 31 March 2001: £1,748,000; year to 30 September 2001: £2,116,000) and the weighted average number of shares as follows: Weighted average number of shares 31 March 31 March 30 September 2002 2001 2001 Basic 2,523,280 2,795,014 2,769,889 Adjustment to basic for bonus element of shares 43,768 44,427 43,758 to be issued on exercise of options ________ ________ ________ Diluted 2,567,048 2,839,441 2,813,647 ________ ________ ________ 6. Reconciliation of movement in shareholders funds Six months Six month Year 31 March 31 March 30 September 2002 2001 2001 (unaudited) (unaudited) (audited) £'000 £'000 £'000 At beginning of period 17,032 16,060 16,060 Profit after tax for the period 601 1,748 2,116 Dividends (42) (45) (148) Revaluation of investment properties - - (90) Own shares purchased in period (1,611) - (906) ________ ________ ________ At end of period 15,980 17,763 17,032 ________ ________ ________ Financial Calendar 2002 10 May Interim results for 2001/2002 announced 12 June Ex-dividend date 14 June Record date for interim dividend 11 July Interim dividend to be paid 30 September End of accounting year December Final results for 2001/2002 announced 2003 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 subsidiary Solicitors 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 This information is provided by RNS The company news service from the London Stock Exchange

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