Interim Results
Conygar Investment Company PLC(The)
13 June 2006
13 June 2006
The Conygar Investment Company PLC
('Conygar' or the 'Company')
Interim Results
for the six months ended 31 March 2006
Conygar Investment Company PLC, the property company, announces its interim
results for the six months to 31 March 2006
Chairman's Statement
I am pleased to announce a period of significant progress for the company.
During the last six months, we raised £10.31 million through a placing of
ordinary shares at 116 pence per share. This was carried out in order to
satisfy investor demand, widen the ownership of the company's shares and to
strengthen the company's balance sheet. At the same time, it was decided to
reorganise the board in order to reflect the new scale of the company and to
give greater clarity and focus to the business. I agreed to become
non-executive chairman with Robert Ware becoming chief executive.
On 28 April 2006, we exchanged contracts to acquire a terrace of fourteen office
properties in Bedford Square, London WC1 for a total cash consideration
(including costs) of £57.81 million. The Royal Bank of Scotland provided a
£52.75 million non-recourse structured finance facility whilst the company
invested around £4.95 million in equity with the balance of consideration
provided from a third party investment. The transaction completed on 15 May
2006. The properties comprise approximately 95,516 square feet of office
accommodation of which 11,952 square feet is currently vacant and which
represents a refurbishment opportunity. Current income is approximately £2.62
million per annum. Several of the properties are currently being marketed and
are attracting considerable interest. The company will be entitled to 75 per
cent of any profit realised.
Progress continues apace with the £100 million marina development at Pembroke
Dock waterfront in which we hold a 50 per cent interest. Work in obtaining
planning consent is ongoing and we are aiming to make significant progress
towards securing consent by the end of this year. That said, we remain cautious
as the planning process can be frustrating, however there is a considerable will
at local level to see this project move forward, a fact from which we draw much
comfort. We are expecting this project to progress significantly over the next
six months and so hope to be in a position where we can give a more detailed
update with our full year results.
During the period, the company recorded a small loss of £37,000. Cash balances
at 31 March 2006 amounted to £15.67 million including our share of cash held in
joint ventures. The company continues to control administrative overhead by
undertaking as much work in-house as possible in order to avoid incurring
excessive professional fees. This is particularly important where the company
is seeking opportunities, many of which will not meet our criteria in terms of
risk and return.
Prospects
The board continues to be confident about the future prospects of the company
and in particular given the recent acquisition of properties in Bedford Square.
Combined with the marina development at Pembroke Dock waterfront and the
continuing pipeline of opportunities, the company is well positioned. As always
we will continue to keep shareholders informed of progress.
N J Hamway
Chairman
12 June 2006
The Conygar Investment Company PLC
Consolidated Profit and Loss Account
For the six months ended 31 March 2006
Unaudited Audited
Six months ended Year Ended
31 March 2006 31 March 2005 30 Sept 2005
Notes £'000 £'000 £'000
Turnover
Group and share of joint venture's turnover - 80 9,691
Less share of joint venture's turnover - (80) (9,179)
- - 512
Cost of Sales - - (397)
Gross Profit - - 115
Administrative expenses (150) (127) (399)
Operating Loss (150) (127) (284)
Share of operating (loss) / profit of joint (2) 72 963
venture
(152) (55) 679
Income from current asset investments - 24 24
Interest receivable and similar income
Group 97 71 121
Joint Venture 18 5 23
Interest payable and similar charges
Group - - -
Joint Venture - (67) (320)
(Loss) / Profit on Ordinary Activities before
Taxation (37) (22) 527
Taxation on (loss) / profit on ordinary - - (171)
activities
(Loss) / Profit on Ordinary Activities after (37) (22) 356
Taxation
Dividends - - -
(Loss) / Profit for the Financial Period (37) (22) 356
Earnings per share (pence) 2
Basic (0.36)p (0.23)p 3.66p
Fully diluted (0.33)p (0.21)p 3.43p
Turnover and operating profit in all periods relate wholly to continuing
activities.
No separate Statement of Total Recognised Gains and Losses has been presented as
all such gains and losses have been dealt with in the profit and loss account.
The Conygar Investment Company PLC
Consolidated Balance Sheet
As at 31 March 2006
Unaudited Audited
Six months ended Year Ended
31 March 2006 31 March 2005 30 Sept 2005
£'000 £'000 £'000
Fixed Assets
Tangible Fixed Assets 3 - 4
Investment in joint venture
Share of gross assets 497 7,186 687
Share of gross liabilities (215) (5,076) (223)
282 2,110 464
285 2,110 468
Current Assets
Debtors 85 90 60
Investments - 364 -
Cash at bank 15,190 2,334 4,839
15,275 2,788 4,899
Current liabilities
Creditors: amounts falling within one year 47 44 135
Net Current Assets 15,228 2,744 4,764
Total assets less current liabilities 15,513 4,854 5,232
Capital and reserves
Called-up equity share capital 932 486 486
Share premium account 14,294 4,427 4,427
Profit and loss account 282 (59) 319
Equity Shareholders' Funds 15,508 4,854 5,232
Minority Interest 5 - -
Total Equity 15,513 4,854 5,232
The comparative figures for the year ended 30 September 2005 are an extract of
the company's statutory accounts for that financial period. Those accounts have
been reported upon by the company's auditors and delivered to the Registrar of
Companies. The report of the auditors was unqualified and did not contain a
statement under Section 237(2) or (3) of the Companies Act 1985.
The Conygar Investment Company PLC
Reconciliation of Movements in Equity Shareholders' funds
For the six months ended 31 March 2006
Unaudited Audited
Six months ended Year Ended
31 March 2006 31 March 2005 30 Sept 2005
£'000 £'000 £'000
(Loss) / Profit for the period attributable to (37) (22) 356
shareholders
Dividends - - -
(37) (22) 356
Issue of share capital (net of expenses) 10,313 - -
Net movement in equity shareholders' funds 10,276 (22) 356
Opening equity shareholders' funds 5,232 4,876 4,876
Closing equity shareholders' funds 15,508 4,854 5,232
The Conygar Investment Company PLC
Consolidated Cash Flow Statement
For the six months ended 31 March 2006
Unaudited Audited
Six months ended Year Ended
31 March 2006 31 March 2005 30 Sept 2005
Notes £'000 £'000 £'000
Net cash (outflow) / inflow from operating a (238) (106) 231
activities
Returns on the investments and servicing of
finance
Dividend received from joint venture 200 - -
Other dividends received - 10 34
Interest received 95 78 127
Net cash flow from returns on investments 295 88 161
and servicing of finance
Cash inflow / (outflow) before management of 57 (18) 392
liquid resources and financing
Management of liquid resources
(Increase) / Decrease in funds placed on short (46) 2,355 2,308
term deposit
Acquisitions and disposals
Investment in joint venture (19) (2,100) (1)
Capital expenditure - - (4)
Financing
Issue of equity share capital 446 - -
Share premium on issue of equity share capital 9,867 - -
Net cash inflow from financing 10,313 - -
Increase in cash b 10,305 237 2,695
Notes to the Consolidated Cash Flow Statement
For the six months ended 31 March 2006
a) Reconciliation of operating loss to net cash outflow from operating activities
Unaudited Audited
Six months ended Year Ended
31 March 2006 31 March 2005 30 Sept 2005
£'000 £'000 £'000
Operating loss (150) (127) (284)
Increase / (Decrease) in debtors - (28) 9
Decrease in current asset investments - 33 397
(Decrease) / Increase in creditors (88) 16 109
Net cash (outflow) / inflow from operating activities (238) (106) 231
b) Reconciliation of net cash flow to movement in net funds
Unaudited Audited
Six months ended Year Ended
31 March 2006 31 March 2005 30 Sept 2005
£'000 £'000 £'000
Increase in cash in the period 10,305 237 2,695
Cash (inflow)/outflow to short term deposits 46 (2,355) (2,308)
Movement in net funds 10,351 (2,118) 387
Opening net funds 4,839 4,452 4,452
Closing net funds 15,190 2,334 4,839
c) Analysis of changes in net funds
At At
1 October 2005 Cashflows 31 March 2006
£'000 £'000 £'000
Net cash:
Cash in hand and at bank 2,747 10,305 13,052
Short term deposits* 2,092 46 2,138
Net funds 4,839 10,351 15,190
* Short term deposits are included within cash at bank in the balance sheet.
The Conygar Investment Company PLC
Notes to the Interim Results
For the six months ended 31 March 2006
1. Basis of Preparation
The interim results for the period ended 31 March 2006 have been prepared in
accordance with applicable United Kingdom accounting standards and are
unaudited. They do not comprise full financial statements within the meaning of
the Companies Act 1985 and have neither been reported upon by the auditors under
Section 235 of the Companies Act 1985 nor reviewed in accordance with Accounting
Practice Board Bulletin 1999/4.
The board of directors approved the above results on 12 June 2006.
Copies of the interim report may be obtained from the Company Secretary, The
Conygar Investment Company PLC, First Floor, 122 Wigmore Street, London W1U 3RX.
2. Earnings per Share
The calculation of earnings per ordinary share is based on the loss after tax of
£37,000 and on the number of shares in issue being the weighted average number
of shares in issue during the period of 10,310,621. The weighted average number
of shares on a fully diluted basis was 11,065,621. No adjustment has been made
in respect of the exercise of options which were anti-dilutive throughout the
period. The total number of ordinary shares in issue at the date of this report
was 18,649,406.
Enquiries
The Conygar Investment Company PLC
Robert Ware 020 7725 0360
Peter Batchelor
The directors of Conygar accept responsibility for the information contained in
this announcement. To the best of the knowledge and belief of the directors of
Conygar (who have taken all reasonable care to ensure that such is the case) the
information contained in this announcement is in accordance with the facts and
does not omit anything likely to affect the import of such information.
This information is provided by RNS
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