Interim Results

RNS Number : 3373T
First Property Group PLC
24 November 2021
 

 


Date:

24 November 2021

On behalf of:

First Property Group plc ("First Property" or "the Group")

Embargoed:

0700hrs

 

First Property Group plc

Interim Results for the six months to 30 September 2021 

 

First Property Group plc (AIM: FPO), the award-winning property fund manager and investor with operations in the United Kingdom and Central Europe, today announces its interim results for the six months to 30 September 2021.

 

Highlights:

 

· Profit before tax: £6.67 million (30 September 2020: £2.08 million);

· Cash reserves: £12.24 million (31 March 2021: £16.24 million);

· Substantially reduced net debt: £12.56 million (31 March 2021: £18.85 million);

· One new fund established, Fprop Fulcrum Property LP;

· AUM: £576 million (31 March 2021: £569 million), of which £533 million managed for third parties (31 March 2021: £527 million);

· Weighted average unexpired fund management contract term: 3 years, 5 months (31 March 2021: 3 years, 11 months);

· The market value less gross debt of Group Properties amounts to some £46.49 million, of which some 93% or £43.44 million is invested in Poland and Romania;

· Interim dividend: 0.25 pence per share (30 September 2020: 0.45 pence per share).

 

Financial Summary:

 

 

Unaudited

Six months to 30 Sept 2021

Unaudited

Six months to 30 Sept 2020

Percentage change

Audited

Year to

31 March 2021

Income Statement:

 

 

 

 

Statutory profit/ (loss) before tax 

£6.67m

£2.08m

220.7%

(£5.09m)

Diluted earnings/ (loss) per share

5.72p

0.46p

1,143.5%

(6.59p)

Total dividend per share

0.25p

0.45p

-44.4%

0.45p

Average €/£ rate

1.1632

1.1159

-

1.1246

 

 

 

 

 

Balance Sheet at period end:

 

 

 

 

Investment properties and Inventories at book value

£36.87m

£47.48m

-22.3%

£34.95m

Investment properties and Inventories at market value

£42.91m

£56.82m

-24.5%

£41.57m

 

 

 

 

 

Associates and investments at book value

£21.63m

£21.61m

0.1%

£21.64m

Associates and investments at market value

£28.38m

£27.86m

1.9%

£27.47m

 

 

 

 

 

Cash balances

£12.24m

£21.21m

-42.3%

£16.24m

Cash per share

11.09p

19.21p

-42.3%

14.71p

 

 

 

 

 

Gross debt

£24.80m

£41.04m

-39.6%

£35.09m

Net debt

£12.56m

£19.83m

-36.7%

£18.85m

 

 

 

 

 

Gearing ratio at book value*

36.48%

46.56%

-

48.82%

Gearing ratio at market value**

30.99%

40.09%

-

42.05%

 

 

 

 

 

Net assets at book value

£43.20m

£47.11m

-8.3%

£36.79m

Net assets at market value

£55.23m

£61.34m

-9.9%

£48.36m

Adjusted net assets per share (EPRA basis)

48.88p

54.28p

-9.9%

42.80p

 

 

 

 

 

Period end €/£ rate

1.1634

1.1025

-

1.1739

 

 

 

 

 

* Gearing ratio = Gross debt divided by gross debt plus net assets at book value.

** Gearing ratio = Gross debt divided by gross debt plus net assets at market value.

 

           

 

Commenting on the results, Ben Habib, Chief Executive of First Property Group, said:

 

"The first half has seen a sharp turnaround in our fortunes, principally due to the restructuring of a finance lease secured against our largest Group Property which reduced our debt liability by some €9 million.

 

"Our balance sheet remains strong with some £43 million of net assets of which some £12 million is in cash.

 

"Our prospects are bright - we have cash to invest, there are many investment opportunities and occupational demand should pick up from the lockdown induced lows with a commensurate increase in the value of our own properties."

 

Investor Presentation:

 

A briefing for existing and potential shareholders will be held at 11:00am GMT today via Investor Meet Company. To participate it is necessary to register at https://www.investormeetcompany.com/first-property-group-plc/register-investor and select to meet the Company. Those who have already registered and selected to meet the company will have already been invited. A copy of the accompanying investor presentation and a recording of the call will be posted on the company website. Questions can be submitted via the Investor Meet Company dashboard at any time during the live presentation.

 

For further information please contact:

 

First Property Group plc 

Tel: +44 (20) 7340 0270

Ben Habib (Chief Executive Officer)

Laura James (Group Finance Director)

Jeremy Barkes (Director, Business Development)

Jill Aubrey (Company Secretary)

www.fprop.com

investor.relations@fprop.com

 

 

Arden Partners (NOMAD & Broker)

Tel: + 44 (20) 7614 5900

John Llewellyn-Lloyd (Director, Corporate Finance)

Antonio Bossi (Director, Corporate Finance)

 

 

 

SEC Newgate (PR)

Tel: + 44 7540106366

Robin Tozer/ Richard Bicknell/ Isabelle Smurfit

firstproperty@secnewgate.co .uk

 

Notes to Investors and Editors :

 

First Property Group plc is an award-winning property fund manager and investor with operations in the United Kingdom and Central Europe. Its focus is on higher yielding commercial property with sustainable cash flows. The company is flexible and takes an active approach to asset management. Its earnings are derived from:

 

· Fund Management - via its FCA regulated and AIFMD approved subsidiary, First Property Asset Management Ltd (FPAM), which earns fees from investing for third parties in property. FPAM currently manages thirteen funds which are invested across the United Kingdom, Poland and Romania.  

· Group Properties - principal investments by the Group to earn a return on its own capital, usually in partnership with third parties. Investments include seven directly held properties in Poland and Romania, and non-controlling interests in eleven of the thirteen funds managed by FPAM.

 

Listed on AIM the Company has offices in London, Warsaw and Bucharest. Around one third of the shares in the Company are owned by management and their families. Further information about the Company and its products can be found at: www.fprop.com .

 

 

 

CHIEF EXECUTIVE'S STATEMENT

 

Performance:

 

I am pleased to report interim results for the six months ended 30 September 2021.

 

Revenue earned by the Group was £4.03 million (30 September 2020: £6.33 million) yielding a profit before tax of £6.67 million (30 September 2020: £2.08 million). The reduction in revenue was mainly associated with the expiry of the previously over-rented lease at the Group's office block in Gdynia. The increase in profit before tax was largely attributable to a reduction of €9 million (£7.81 million) from €25 million to €16 million in the amount owed to ING Bank in final settlement of the finance lease secured against the Group's office block in Gdynia, Poland. As part of the transaction, ING was paid €4 million and the remainder of the finance lease liability was replaced by a non-interest bearing loan of €12 million (£10.31 million) repayable by June 2024.

 

Diluted earnings per share increased to 5.72 pence (30 September 2020: 0.46 pence).

 

It is the accounting policy of the Group to carry its properties and interests in associates at the lower of cost or market value. Market values are independently assessed at least once a year, on 31 March.  The Group ended the period with net assets under the cost basis of accounting of £43.20 million (31 March 2021: £36.79 million). The net assets of the Group when adjusted to their market value less any deferred tax liabilities (EPRA basis) at the period end was £55.23 million (31 March 2021: £48.36 million).

 

Gross debt at the period end amounted to £24.80 million (31 March 2021: £35.09 million). This in turn reduced the Group's gearing ratio with properties at book value to 36.48% (31 March 2021: 48.82%) and with properties at market value to 30.99% (31 March 2021: 42.05%). Net debt reduced to £12.56 million (31 March 2021: £18.85 million).

 

Group cash balances at the period end stood at £12.24 million (31 March 2021: £16.24 million), equivalent to 11.09 pence per share (31 March 2021: 14.71 pence per share). The reduction from the financial year end is attributable to the payment of €4 million (£3.43 million) in part settlement of the finance lease at the property in Gdynia.

 

Dividend:

 

In view of the marked improvement in the Group's position since the lockdown induced set-back, the Directors have resolved to pay an interim dividend of 0.25 pence per share (30 September 2020: 0.45 pence per share). It will be paid on 7 January 2022 to shareholders on the register at 3 December 2021, with an ex-dividend date of 2 December 2021.

 

REVIEW OF OPERATIONS

 

PROPERTY FUND MANAGEMENT (First Property Asset Management Ltd or FPAM)

 

Third party assets under management at period end increased to £533 million (31 March 2021: £527 million). There were no purchases or sales of property in the period.  Some 66% of third-party assets under management were located in the UK, 32% in Poland and 2% in Romania.

 

One new fund was established in the period, Fprop Fulcrum Property LP, with an initial equity commitment of £10 million.

 

After the period end the life of The U.K. Pension Property Portfolio LP was extended by some five years to 13 January 2027. As part of this restructuring, the Group invested a further £3.24 million, increasing its interest to 12.04% (11.1% indirectly via Fprop UK Special Opportunities LP and 0.94% directly).  

 

Fund management fees are generally levied monthly by reference to the value of properties under management. In the case of Fprop Offices LP, the Group is entitled to a share of total profits in lieu of fund management fees and to receive annual payments on account equivalent to 10% of total cumulative income profits and realised capital gains. Under its accounting policy the Group will not recognise unrealised property revaluations above a given property's original cost. These payments are adjusted annually, if necessary, for any overpayments made in previous years up to a maximum of total past cumulative payments received. As at 30 September 2021 this totalled £1.59 million.

 

Revenue earned by this division increased by 15% to £1.91 million (30 September 2020: £1.66 million), resulting in profit before unallocated central overheads and tax of £829,000 (30 September 2020: £633,000), representing 9% of Group profit before unallocated central overheads and tax. The increase was primarily due to a performance fee of £206,000 in respect of Fprop Offices LP (30 September 2020: £Nil).

 

At the period end FPAM's fund management fee income, excluding performance fees and the profit share from Fprop Offices LP, was being earned at an annualised rate of £2.89 million (31 March 2021: £2.90 million).

 

FPAM's weighted average unexpired fund management contract term at the period end was 3 years, 5 months (31 March 2021: 3 years, 11 months).

 

 

The reconciliation of movement in third party funds under management during the period is shown below:

 

 

Funds managed for third parties (including funds in which the Group is a minority shareholder)

 

UK

£m.

CEE

£m.

Total

£m.

No. of prop's

As at 1 April 2021

349.8

177.4

527.2

68

Purchases

-

-

-

-

New fund mandates

-

-

-

-

Property sales

-

-

-

-

Capital expenditure

0.4

0.1

0.5

-

Property revaluation

2.5

1.1

3.6

-

FX revaluation

-

1.6

1.6

-

As at 30 Sept 2021

352.7

180.2

532.9

68

 

An overview of the value of assets and maturity of each of the funds managed by FPAM is set out below:

 

Fund

Country of investment

Fund expiry

Assets under management at market value at

30 Sept 2021

No of properties

% of total third-party assets under management

Assets under management at market value at

31 March 2021

 

 

£m.

 

%

£m.

SAM & DHOW

UK

Rolling

*

*

*

*

5PT

Poland

Dec 2022

7.8

3

1.4

7.7

OFFICES

UK

Jun 2024

132.5

5

24.9

133.5

SIPS

UK

Jan 2025

137.3

24

25.8

134.3

FOP

Poland

Oct 2025

63.3

5

11.9

61.6

FGC

Poland

Mar 2026

21.3

1

4.0

21.1

SPEC OPPS

UK

Jan 2027

17.0

4

3.2

17.2

UK PPP

UK

Jan 2027

65.9

20

12.3

64.8

FKR

Poland

Mar 2027

20.9

1

3.9

20.7

FCL

Romania

Jun 2028

8.8

1

1.7

8.7

FPL

Poland

Jun 2028

58.1

4

10.9

57.6

FUL

UK/Poland

Indefinite

-

-

-

-

Total Third-Party AUM

 

532.9

68

100.0

527.2

 

* Not subject to recent revaluation;

 

The sub sector weightings of investments in FPAM funds is set out in the table below:

 

 

UK

Poland

Romania

Total

% of Total

 

£m.

£m.

£m.

£m.

 

Offices

199.1

103.5

8.8

311.4

58.4

Retail warehousing

92.1

-

-

92.1

17.3

Supermarkets

52.2

17.5

-

69.7

13.1

Shopping centres

-

50.4

-

50.4

9.4

Industrial

9.3

-

-

9.3

1.8

Total

352.7

171.4

8.8

532.9

100.0

% of Total

66.2

32.2

1.6

100.0

 

 

 

 

GROUP PROPERTIES

 

At the period end Group Properties comprised seven directly owned commercial properties in Poland and Romania and interests in eleven of the thirteen funds managed by FPAM (which are invested in the UK, Poland and Romania).

 

The contribution to Group profit before tax and unallocated central overheads from the Group Properties was £8.13 million (30 September 2020: £2.30 million), representing 91% of Group profit before unallocated central overheads and tax. Approximately 96% of this was attributable to the restructuring of the finance lease secured against the office block in Gdynia, Poland, which resulted in the amount owed to ING Bank in final settlement reducing by €9 million (£7.81 million) from €25 million to €16 million.

 

The market value less gross debt of the Group Properties amounts to some £46.49 million, of which some 93% or £43.44 million is invested in Poland and Romania.

 

1.  Directly owned Group Properties (all accounted for under the cost model):

 

Two of the Group's seven directly owned properties account for 72% of their book value (£26.64 million). Both are office buildings in Poland of which one is in Warsaw (11,000 m2) and the other in Gdynia (14,000 m2). The balance of 28% by book value (£10.23 million) is invested in two mini-supermarkets in Poland, a development site in Warsaw, an office block in Bucharest and a warehouse in Tureni, Romania.

 

Country

Sector

No. of properties

Book value

Market value

*Contribution to Group profit before tax - period to
30 Sept 2021

*Contribution to Group profit before tax - period to
30 Sept 2020

 

 

 

£m.

£m.

£m.

£m.

Poland, Gdynia

Offices

1

13.75

13.75

**7.51

1.35

Poland, Warsaw

Offices

1

12.89

15.97

0.67

0.66

Poland

Supermarkets

3

6.30

6.87

***0.02

0.08

Romania

Offices and logistics

2

3.93

6.32

0.17

0.18

Total

 

7

36.87

42.91

8.37

2.27

 

*Prior to the deduction of direct overhead and unallocated central overhead expenses.

**Includes €9 million (£7.81 million) debt reduction following restructuring of the finance lease at Gdynia.

***Of which two are let and the third is being redeveloped, scheduled for completion in FY2023.

 

The seven directly owned properties generated a profit before unallocated central overheads and tax of £7.73 million (30 September 2020: £1.50 million). The increase was almost entirely attributable to the restructuring of the finance lease secured against the office block in Gdynia (following the expiry of the over-rented lease), which resulted in the amount owed to ING Bank reducing by €9 million (£7.81 million) from €25 million to €16 million. As part of the transaction, ING was paid €4 million and the remainder of the finance lease liability was replaced by a non-interest bearing loan of €12 million (£10.31 million) repayable by June 2024. The property is largely vacant (since Feb 2021) and contributed a loss of £295,000 (30 September 2020: a profit of £1.35 million). We have agreed terms to lease some 10% of the building and are actively marketing the remainder.

 

During the period the Group leased 73% of the vacant office space in Chałubińskiego 8 (CH8), the office tower in Warsaw which was sold at the end of the financial year ended 31 March 2020 but on which a rent guarantee over the vacant space was provided by the Group to the new owner, worth around £1 million per annum. The Group's maximum residual liability over the remaining life of the rent guarantee (until April 2025) has now reduced to some €1.37 million (£1.19 million), equivalent to some €392,000 per annum. A provision of some €532,000 (£461,000) has been made as at 30 September 2021 against this remaining liability.

 

The debt secured against the seven Group Properties reduced to £24.80 million (31 March 2021: £35.09 million), mainly as a result of the restructuring of the finance lease secured on the office block in Gdynia. The loans secured against the seven properties are held in separate non-recourse special purpose vehicles. The loan secured against the property in Bucharest was increased by €1.50 million (£1.30 million).

 

 

Directly owned Group Properties

30 Sept 2021

31 March 2021

Book value

£36.87m

£34.95m

Market value

£42.91m

£41.57m

Gross debt (all non-recourse to Group)

£24.80m

£35.09m

Market value less gross debt

£18.11m

£6.48m

LTV at book value %

67.28%

100.41%

LTV at market value %

57.81%

84.41%

Weighted average borrowing cost

1.14%

1.60%

Weighted average debt term

4 yrs 1 mths

2 yrs 0 mths

 

 The weighted average unexpired lease term (WAULT) of all seven properties as at 30 September 2021 was 5 years and 9 months.

 

2.  Associates and Investments

 

These comprise non-controlling interests in eleven of the thirteen funds managed by FPAM, of which seven are accounted for as associates under the cost model, and four are accounted for as investments in funds and held at fair value.

 

The contribution to Group profit before tax and unallocated central overheads from its seven associates and four investments decreased by 49% to £406,000 (30 September 2020: £796,000). The reduction was largely attributable to the Group's shareholding in Fprop Opportunities plc (FOP), a fund which experienced a reduction in rent payable following the granting of two new (material) leases during lockdown at lower rents than were previously being received.  

 

An overview of the Group's Associates and Investments is set out in the table below:

 

Fund

% owned by

First Property

Group

Book value of First Property's share in

fund

Current market value of holdings

Group's share

of post-tax profits earned by fund

30 Sept 2021

 Group's share

of post-tax profits earned by fund

30 Sept 2020

 

%

£'000

£'000

£'000

£'000

a) Associates

 

 

 

 

 

5PT

40.6

1,319

1,336

72

72

FRS

24.1

-

75

47

11

FOP

43.8

11,114

11,589

175

627

FGC

28.2

2,550

2,651

71

99

FKR

18.1

1,647

1,767

56

92

FPL

23.4

1,350

7,136

(180)

(219)

FCL

17.4

600

780

35

41

Sub Total

 

18,580

25,334

276

723

 

 

 

 

 

 

b) Investments

 

 

 

 

 

UK PPP

0.9

621

621

30

14

SPEC OPPS*

4.0

464

464

23

17

OFFICES

1.6

1,964

1,964

77

42

FUL**

2.5

-

-

-

-

Sub Total

 

3,049

3,049

130

73

 

 

 

 

 

 

Total

 

21,629

28,383

406

796

 

 * On 16 November 2021 the Group's investment in Fprop UK Special Opportunities LP increased to 11.07%.

** New fund established - Fprop Fulcrum Property LP. As at 30 September 2021 no funds had been invested.

 

The contribution from Fprop Krakow Ltd (FKR), a multi-let office tower in Krakow, was lower due to the expiry in July of the lease to its largest tenant,representing 4,790m2 or nearly half the net internal area. 

 

The loss in Fprop Phoenix Ltd (FPL), which owns an office park near Krakow Airport, narrowed slightly but is expected to increase in the second half. Its largest tenant vacated in August. We have invested substantially in the park both before and during the pandemic and it now offers very cost effective office space with first class amenities - including its own railway station, a creche and kindergarten, a gym, sports ground, BBQ area and conference centre. The challenge now is to lease it up.

 

 

Commercial Property Market Outlook

 

Poland:

 

 

Poland's GDP is forecast to grow by 4.8% in 2021 and 5.0% in 2022, marginally more than forecast inflation. The country's central bank has increased its key policy interest rate by 40bps to 0.50% in October, and by 75bps to 1.25% in November. It is expected to increase interest rates to 2.50% by the end of 2022.

 

Rents in Poland are contractually mostly linked to Eurozone inflation. We therefore expect rental values broadly to keep pace with inflation.

 

Commercial property transactions are picking up as the economy reopens. Prime yields generally range from 5-6%.

 

Romania:

 

 

Romania's GDP is expected to grow by some 7% in 2021 and 4% in 2022, marginally more than forecast inflation in 2021 but behind forecast inflation for 2022.

 

Rents in Romania are contractually mostly linked to Eurozone inflation. We therefore expect rental values broadly to keep pace with inflation. 

 

Commercial property transactions are picking up as the economy reopens. Prime yields generally range from 7-8%.

 

 

United Kingdom:

 

 

The United Kingdom's GDP growth is rebounding, mainly based on consumption, as restrictions to economic activity are eased. GDP is expected to return to its pre-pandemic level in early 2022. Inflation is also increasing but at a lesser rate than the growth in GDP.

 

Investor demand for commercial property is rebounding too, with capital values for "all commercial property" increasing by 3.8% in Q3 2021, the fastest rate since Q1 2010. Capital growth year to date is 6.4%. Rental growth is more elusive.

 

Our favoured sectors remain retail warehouses and regional offices but we are also beginning to see value on the high street. Yields for good secondary commercial property remain attractive.

 

 

 Current Trading and Prospects

 

 

The first half has seen a sharp turnaround in our fortunes, principally due to the restructuring of a finance lease secured against our largest Group Property which reduced our debt liability by some €9 million.

 

Our balance sheet remains strong with some £43 million of net assets of which some £12 million is in cash.

 

Our prospects are bright - we have cash to invest, there are many investment opportunities and occupational demand should pick up from the lockdown induced lows with a commensurate increase in the value of our own properties.

 

 

Ben Habib

Chief Executive

 

 

 

CONSOLIDATED INCOME STATEMENT

for the six months to 30 September 2021

 

 

Notes

Six months to 30 Sept 2021

(unaudited)

Six months to

30 Sept 2020

(unaudited)

Year to

31 Mar 2021

(audited)

 

 

£'000

£'000

£'000

 

 

 

 

Revenue

 

4,033

6,330

12,119

Cost of sales

 

(1,298)

(1,194)

(4,128)

 

2,735

5,136

7,991

Profit on sale of an investment property

 

-

-

161

Debt reduction following restructuring of finance lease

 

7,809

-

-

Recycled foreign exchange gain

 

-

-

1,163

Impairment loss to an investment property

 

-

-

(7,023)

Operating expenses

 

(4,258)

(3,492)

(7,363)

 

6,286

1,644

(5,071)

Share of results in associates

8a

234

723

3,467

Share of associates' revaluation gain/ (losses)

8a

42

-

(2,997)

Investment income

 

130

73

185

Interest income

3

130

45

67

Interest expense

3

(157)

(403)

(740)

 

6,665

2,082

(5,089)

Corporation tax

4

(129)

(404)

(179)

Deferred tax

4

(51)

(1,140)

(2,133)

Profit/ (loss) for the period

 

6,485

538

(7,401)

 

 

 

 

 

 

 

 

 

6,457

515

(7,449)

Non-controlling interests

 

28

23

48

 

6,485

538

(7,401)

 

 

 

 

 

Earnings/ (loss) per share

 

 

 

 

Basic

5

5.85p

0.47p

(6.75p)

Diluted

5

5.72p

0.46p

(6.59p)

 

 

All operations are continuing.

 

 

 

 

CONSOLIDATED STATEMENT OF

COMPREHENSIVE INCOME

 

for the six months to 30 September 2021

 

 

 

Notes

Six months to 30 Sept 2021

Six months to

30 Sept 2020

Year to

31 Mar 2021

 

 

(unaudited)

(unaudited)

(audited)

 

 

£'000

£'000

£'000

 

 

 

 

 

Profit/ (loss) for the period

 

6,485

538

(7,401)

 

 

 

 

 

Other comprehensive income

 

 

 

 

Items that may subsequently be reclassified to profit or loss:

 

 

 

 

Exchange differences on retranslation of foreign subsidiaries

 

24

(53)

(685)

Foreign exchange profit recycled to the Income Statement

 

-

-

(1,163)

Net (loss)/ gain on financial assets at fair value through Other Comprehensive Income

8b

(14)

(52)

(119)

Taxation

 

-

-

-

Total comprehensive income for the period

 

6,495

433

(9,368)

 

 

 

 

 

Total comprehensive income for the period attributable to:

 

 

 

 

Owners of the parent

 

6,409

412

(9,440)

Non-controlling interests

 

86

21

72

 

 

6,495

433

(9,368)

 

 

All operations are continuing.
 

CONSOLIDATED BALANCE SHEET

 

as at 30 September 2021

 

 

Notes

As at

30 Sept 2021 (unaudited)

 

As at

31 Mar 2021 (audited)

As at

30 Sept 2020 (unaudited)

 

 

 

£'000

£'000

£'000

 

 

 

 

 

Non-current assets

 

 

 

 

Goodwill

 

153

153

153

Investment properties

6

24,090

22,456

32,544

Property, plant and equipment

 

130

157

56

Investment in associates

8a

18,580

18,577

18,483

Other financial assets at fair value through OCI

8b

3,049

3,061

3,128

Other receivables

9

293

487

730

Right of use assets

 

686

686

584

Deferred tax assets

 

1,596

1,518

2,307

Total non-current assets

 

48,577

47,095

57,985

 

 

 

 

 

Current assets

 

 

 

 

Inventories - land and buildings

7

12,775

12,494

14,940

Current tax assets

 

5

296

133

Trade and other receivables 

9

4,919

5,149

3,216

Cash and cash equivalents

 

12,239

16,244

21,207

Total current assets

 

29,938

34,183

39,496

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

10

(4,635)

(3,447)

(3,638)

Provisions

11

(1,767)

(2,076)

(1,826)

Financial liabilities

12a

(1,316)

(22,637)

(25,803)

Current tax liabilities

 

(31)

(12)

(78)

Total current liabilities 

 

(7,749)

(28,172)

(31,345)

Net current assets

 

22,189

6,011

8,151

Total assets less current liabilities

 

70,766

53,106

66,136

 

 

 

 

 

Non-current liabilities

 

 

 

 

Financial liabilities

12b

(13,173)

(12,457)

(15,241)

Other financial liabilities

13

(10,314)

-

-

Lease liabilities

 

(686)

(686)

(584)

Deferred tax liabilities

 

(3,142)

(2,974)

(3,049)

Net assets

 

43,451

36,989

47,262

 

 

 

 

 

Equity

 

 

 

 

Called up share capital

 

1,166

1,166

1,166

Share premium

 

5,791

5,791

5,791

Share-based payment reserve

 

179

179

179

Foreign exchange translation reserve

 

(3,142)

(3,108)

(1,311)

Purchase of own shares reserve

 

(2,653)

(2,653)

(2,653)

Investment revaluation reserve

 

(369)

(355)

(288)

Retained earnings

 

42,225

35,768

44,228

Equity attributable to the owners of the parent

 

43,197

36,788

47,112

Non-controlling interests

 

254

201

150

Total equity

 

43,451

36,989

47,262

 

 

 

 

 

Net assets per share

5

39.13p

33.33p

42.68p

 

 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

for the six months to 30 September 2021

 

 

Share

Capital

Share Premium

 

Share- Based

Payment Reserve

Foreign Exchange Translation Reserve

Purchase of own Shares

Investment

Revaluation

Reserve

 

Retained Earnings


 

Non-controlling Interests

 

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 1 April 2020

1,166

5,791

179

(1,260)

(2,653)

(236)

45,060

157

48,204

Profit for the period

-

-

-

-

-

-

538

-

538

Net (loss)/ gain on financial assets at fair value through other comprehensive income

-

-

-

-

-

(52)

-

-

(52)

Movement on foreign exchange

-

-

-

(51)

-

-

-

(2)

(53)

Total Comprehensive Income

-

-

-

(51)

-

(52)

538

(2)

433

Purchase of treasury shares

-

-

-

-

-

-

-

-

-

Non-controlling interests

-

-

-

-

-

-

(23)

23

-

Dividends paid

-

-

-

-

-

-

(1,347)

(28)

(1,375)

At 30 Sept 2020

1,166

5,791

179

(1,311)

(2,653)

(288)

44,228

150

47,262

Profit for the period

-

-

-

-

-

-

(7,939)

-

(7,939)

Net gain/ (loss) on financial assets at fair value through other comprehensive income

-

-

-

-

-

(67)

-

-

(67)

Movement on foreign exchange

-

-

-

(634)

-

-

-

26

(608)

Foreign exchange profit recycled to the income statement

-

-

-

(1,163)

-

-

-

-

(1,163)

Total Comprehensive Income

-

-

-

(1,797)

-

(67)

(7,939)

26

(9,777)

Sale of treasury shares

-

-

-

-

-

-

-

-

-

Purchase of treasury shares

-

-

-

-

-

-

-

-

-

Non-controlling interests

-

-

-

-

-

-

(25)

25

-

Dividends paid

-

-

-

-

-

-

(496)

-

(496)

At 1 April 2021

1,166

5,791

179

(3,108)

(2,653)

(355)

35,768

201

36,989

Profit for the period

-

-

-

-

-

-

6,485

-

6,485

Net gain/ (loss) on financial assets at fair value through other comprehensive income

-

-

-

-

-

(14)

-

-

(14)

Movement on foreign exchange

-

-

-

(34)

-

-

-

58

24

Total Comprehensive Income

-

-

-

(34)

-

(14)

6,485

58

6,495

Purchase of treasury shares

-

-

-

-

-

-

-

-

-

Non-controlling interests

-

-

-

-

-

-

(28)

28

-

Dividends paid

-

-

-

-

-

-

-

(33)

(33)

At 30 Sept 2021

1,166

5,791

179

(3,142)

(2,653)

(369)

42,225

254

43,451

 

 

CONSOLIDATED CASH FLOW STATEMENT

 

for the six months to 30 September 2021

 

 

Notes

Six months to

 30 Sept 2021 (unaudited)

Six months to 30 Sept 2020 (unaudited)

Year to

31 Mar 2021

 (audited)

 

 

£'000

£'000

£'000

Cash flows (used in)/ from operating activities

 

 

 

 

Operating profit / (loss)

 

6,286

1,644

(5,071)

Adjustments for:

 

 

 

 

Depreciation of investment property, and property, plant & equipment

 

38

949

1,362

Profit on the sale of investment property

 

-

-

(161)

Loss on the sale of inventory

 

-

-

217

Impairment loss on an investment property

 

-

-

7,023

Debt reduction following restructuring of finance lease

 

(7,809)

-

-

(Increase)/ decrease in inventories

 

(77)

21

(129)

Decrease/ (increase) in trade and other receivables

 

189

41,999

38,858

Increase/ (decrease) in trade and other payables

 

811

(4,242)

(2,607)

Other non-cash adjustments

 

47

23

(126)

Cash generated from operations

 

(515)

40,394

39,366

Income taxes paid

 

182

(407)

(640)

Net cash flow (used in)/ from operating activities

 

(333)

39,987

38,726

 

 

 

 

 

Cash flow (used in)/ from investing activities

 

 

 

 

Capital expenditure on investment properties

6

(1,333)

(12)

(160)

Proceeds from partial disposal of financial assets held at fair value through Other Comprehensive Income

8a

-

-

-

Purchase of property, plant and equipment

 

(2)

-

(134)

Proceeds from the sale of an investment property

 

-

-

1,505

Investment in funds

8b

(2)

(6)

(6)

Proceeds from funds

8a

31

-

172

Investment in shares of associates

8a

-

(62)

(605)

Interest received

3

130

45

67

Dividends from associates

8a

242

-

24

Distributions received

 

130

73

185

Net cash flow (used in)/ from investing activities

 

(804)

38

1,048

 

 

 

 

 

Cash flow (used in)/ from financing activities

 

 

 

 

Proceeds from bank loan

 

1,289

-

-

Repayment of bank loans

 

(574)

(23,126)

(25,077)

Repayment of finance lease

 

(3,434)

(1,358)

(2,970)

Purchase of new treasury shares

 

-

-

-

Sale of shares held in Treasury

 

-

-

-

Exercise of share options

 

-

-

-

Interest paid

3

(157)

(403)

(740)

Dividends paid

 

-

(1,347)

(1,843)

Dividends paid to non-controlling interests

 

(33)

(28)

(28)

Net cash flow (used in)/ from financing activities

 

(2,909)

(26,262)

(30,658)

 

 

 

 

 

Net (decrease)/ increase in cash and cash equivalents

 

(4,046)

13,763

9,116

Cash and cash equivalents at the beginning of period

 

16,244

7,337

7,337

Currency translation gains/ (losses) on cash and cash equivalents

 

41

107

(209)

Cash and cash equivalents at the end of the period

 

12,239

21,207

16,244

 

NOTES TO THE ACCOUNTS

 

for the six months ended 30 September 2021

 

 

1.  Basis of Preparation

 

· These interim consolidated financial statements for the six months ended 30 September 2021 have not been audited or reviewed and do not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006. They have been prepared in accordance with the Group's accounting policies as set out in the Group's latest annual financial statements for the year ended 31 March 2021 and are in compliance with IAS 34 "Interim Financial Reporting". These accounting policies are drawn up in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and as adopted by the European Union (EU).

 

· The comparative figures for the financial year ended 31 March 2021 are not the full statutory accounts for the financial year but are abridged from those accounts prepared under IFRS which have been reported on by the Group's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified, did not include references to any matter to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

 

· These interim financial statements were approved by a committee of the Board on 16 November 2021.

 

 

2.  Segmental Analysis 

 

Segment reporting for the six months to 30 September 2021

 

Direct costs incurred by First Property Group plc relating to the cost of the Board and the related share listing costs are shown separately under unallocated central costs. The staff incentive accrual is included under unallocated central costs but will be reallocated across all segments at the year end.

 

 

Fund Management Division

Group Properties Division

 

 

 

Property

fund management

Group properties

Associates and investments

Unallocated central overheads

TOTAL

 

£'000

£'000

£'000

£'000

£'000

Rental income

-

1,520

-

-

1,520

Service charge income

-

605

-

-

605

Asset management fees

1,702

-

-

-

1,702

Performance related fee income

206

-

-

-

206

Total revenue

1,908

2,125

-

-

4,033

 

 

 

 

 

 

Depreciation and amortisation 

(25)

(68)

-

-

(93)

 

 

 

 

 

 

Operating profit

829

7,788

-

(2,331)

6,286

 

 

 

 

 

 

Share of results in associates

-

-

234

-

234

Fair value adjustment to associate

-

-

42

-

42

Investment income

-

-

130

-

130

Interest income

-

94

-

36

130

Interest expense

-

(157)

-

-

(157)

Profit/ (loss) before tax

829

7,725

406

(2,295)

6,665

 

 

 

 

 

 

Analysed as:

 

 

 

 

 

Underlying profit/ loss before tax before adjusting for the following items:

423

25

364

(411)

401

 

 

 

 

 

 

Write down, impairment loss/ reversals

-

-

-

-

-

Interest on loan to 'FOP'

-

112

-

-

112

Debt reduction following restructuring of finance lease

-

7,809

-

-

7,809

Group's share of revaluation gain on associates

-

-

42

-

42

Provision for rent guarantee

-

(184)

-

-

(184)

Performance related fee income

206

-

-

-

206

One-off AM fee income from Tesco deal (FOP)

192

-

-

-

192

Depreciation on investment property

-

-

-

-

-

Staff incentives

-

-

-

(1,850)

(1,850)

Realised foreign currency (losses)/ gains

8

(37)

-

(34)

(63)

Profit/ (loss) before tax

829

7,725

406

(2,295)

6,665

 

Revenue for the six months to 30 September 2021 from continuing operations consists of revenue arising in the United Kingdom 29% (30 September 2020: 14%) and Central and Eastern Europe 71% (30 September 2020: 86%) and all relates solely to the Group's principal activities.

 

 

Segment reporting for the six months to 30 September 2020

 

 

 

Fund Management Division

Group Properties Division

 

 

 

Property

fund management

Group properties

Associates and investments

Unallocated central overheads

TOTAL

 

£'000

£'000

£'000

£'000

£'000

Rental income

-

4,006

-

-

4,006

Service charge income

-

663

-

-

663

Asset management fees

1,661

-

-

-

1,661

Performance related fee income

-

-

-

-

-

Total revenue

1,661

4,669

-

-

6,330

 

 

 

 

 

 

Depreciation and amortisation 

(10)

(976)

-

-

(986)

 

 

 

 

 

 

Operating profit

633

1,884

-

(873)

1,644

 

 

 

 

 

 

Share of results in associates

-

-

723

-

723

Investment income

-

-

73

-

73

Interest income

-

21

-

24

45

Interest expense

-

(403)

-

-

(403)

Profit/ (loss) before tax

633

1,502

796

(849)

2,082

 

 

 

 

 

 

Analysed as:

 

 

 

 

 

Underlying profit/ loss before tax before adjusting for the following items:

644

2,572

796

(680)

3,332

 

 

 

 

 

 

Write down, impairment loss/ reversals

-

-

-

-

-

Profit on the sale of 'FOP' shares

-

-

-

-

-

Goodwill write off on acquisition of associates

-

-

-

-

-

Group's share of revaluation losses on associates

-

-

-

-

-

Performance related fee income

-

-

-

-

-

Depreciation on investment property

-

(884)

-

-

(884)

Staff incentives

-

-

-

(397)

(397)

Realised foreign currency (losses)/ gains

(11)

(186)

-

228

31

Profit/ (loss) before tax

633

1,502

796

(849)

2,082

 

 

 

Segment reporting for the year to 31 March 2021

 

 

Fund Management Division

Group Properties Division

 

 

 

Property

fund management

Group properties

Associates and investments

Unallocated central overheads

TOTAL

 

£'000

£'000

£'000

£'000

£'000

Rental income

-

6,087

-

-

6,087

Service charge income

-

1,544

-

-

1,544

Sale of a property held in inventory

-

1,103

-

-

1,103

Asset management fees

3,345

-

-

-

3,345

Performance related fee income

40

-

-

-

40

Total revenue

3,385

8,734

-

-

12,119

 

 

 

 

 

 

Depreciation and amortisation 

(21)

(1,425)

-

-

(1,446)

 

 

 

 

 

 

Operating profit

1,304

(5,090)

-

(1,285)

(5,071)

Share of results in associates

-

-

3,467

-

3,467

Fair value adjustment on associates

-

-

(2,997)

-

(2,997)

Investment income

-

-

185

-

185

Interest income

-

31

-

36

67

Interest expense

-

(740)

-

-

(740)

Profit/ (loss) before tax

1,304

(5,799)

655

(1,249)

(5,089)

 

 

 

 

 

 

Analysed as:

 

 

 

 

 

Underlying profit/ (loss) before tax before adjusting for the following items:

1,294

3,023

1,472

(1,213)

4,576

 

 

 

 

 

 

Provision in respect of rent guarantee

-

(1,030)

-

-

(1,030)

Profit on the sale of group properties

-

161

-

-

161

Loss on the sale of a property held in inventory

-

(217)

-

-

(217)

Impairment to an investment property

-

(7,023)

-

-

(7,023)

One-off additional income from our share of associates (FOP)

-

-

2,180

-

2,180

Fair value adjustment on associates (FOP)

-

-

(2,997)

-

(2,997)

Recycled foreign exchange gain

-

1,163

-

-

1,163

Depreciation

-

(1,327)

-

-

(1,327)

Performance related fee income

40

-

-

-

40

Staff incentives

-

-

-

-

-

Realised foreign currency (losses)/ gains

(30)

(549)

-

(36)

(615)

Total

1,304

(5,799)

655

(1,249)

(5,089)

 

 

 

 

 

 

Assets - Group

836

43,873

3,061

14,931

62,701

Share of net assets of associates

-

-

18,885

(308)

18,577

Liabilities

(120)

(44,001)

-

(168)

(44,289)

Net assets

716

(128)

21,946

14,455

36,989

 

3.  Interest Income/ (Expense)

 

 

Six months ended

30 Sept 2021

Six months

ended

30 Sept 2020

Year

ended

31 Mar 2021

 

£'000

£'000

£'000

Interest income - bank deposits

-

24

26

Interest income - other

130

21

41

Total interest income

130

45

67

 

 

Six months ended

30 Sept 2021

Six months

ended

30 Sept 2020

Year

ended

31 Mar 2021

 

£'000

£'000

£'000

Interest expense - property loans

(151)

(257)

(467)

Interest expense - bank and other

(6)

(22)

(47)

Finance charges on finance leases

-

(124)

(226)

Total interest expense

(157)

(403)

(740)

 

 

4.  Tax Expense

 

The tax charge is based on a combination of actual current and deferred tax charged at an effective rate that is expected to apply to the profits for the full year. 

 

 

Six months ended

30 Sept 2021

Six months

ended

30 Sept 2020

Year

ended

31 Mar 2021

 

£'000

£'000

£'000

Current tax

(129)

(404)

(179)

Deferred tax

(51)

(1,140)

(2,133)

Total

(180)

(1,544)

(2,312)

 

The deferred tax charge for the year ended 31 March 2021 relates to the reversal of a previously recognised deferred tax asset following the repayment of the bank loan secured against the property CH8 in April 2020.

 

5.  Earnings/ NAV Per Share

 

The basic earnings per ordinary share is calculated on the profit on ordinary activities after taxation and after non-controlling interests on the weighted average number of ordinary shares in issue, during the period.

 

Figures in the table below have been used in the calculations.

 

 

Six months

ended

30 Sept 2021

Six months

ended

30 Sept 2020

Year

 ended

31 Mar 2021

Basic earnings/ (loss) per share

5.85p

0.47p

(6.75p)

Diluted earnings/ (loss) per share

5.72p

0.46p

(6.59p)

 

 

 

 

 

Number

Number

Number

Weighted average number of Ordinary shares in issue (used for basic earnings per share calculation)

110,382,332

110,953,578

110,382,332

Number of share options

2,610,000

2,610,000

2,610,000

Total number of Ordinary shares used in the diluted earnings per share calculation

112,992,332

113,563,578

112,992,332

 

 

 

 

 

£'000

£'000

£'000

Basic earnings

6,457

515

(7,449)

Notional interest on share options assumed to be exercised

4

4

7

Diluted earnings/ (loss)

6,461

519

(7,442)

 

 

 

Six months

ended

30 Sept 2021

Six months

ended

30 Sept 2020

Year

 ended

31 Mar 2021

Net assets per share

39.13p

42.68p

33.33p

Adjusted net assets per share

48.88p

54.28p

42.80p

 

Adjusted net assets per share are calculated using the fair value of all investments.

 

The following numbers have been used to calculate both the net assets and adjusted net assets per share:

 

 

 

Six months

ended

30 Sept 2021

Six months

ended

30 Sept 2020

Year

 ended

31 Mar 2021

 

Number

Number

Number

Number of shares in issue at period end

110,382,332

110,382,332

110,382,332

 

 

 

 

 

£'000

£'000

£'000

Net assets excluding Non-controlling interest

43,197

47,112

36,788

 

 

 

 

For adjusted net assets per share

Number

Number

Number

Number of shares in issue at period end

110,382,332

110,382,332

110,382,332

Number of share options assumed to be exercised

2,610,000

2,610,000

2,610,000

Total

112,992,332

112,992,332

112,992,332

 

 

 

 

For adjusted net assets per share

£'000

£'000

£'000

Net assets excluding Non-controlling interests

43,197

47,112

36,788

Investment properties at fair value net of deferred taxes

2,305

4,564

2,663

Inventories at fair value net of deferred taxes

2,590

3,034

2,701

Investments in associates at fair value

6,753

6,246

5,827

Other items

381

381

381

Total

55,226

61,337

48,360

 

6.  Investment Properties

 

 

Six months

ended

30 Sept 2021

Year

 ended

31 Mar 2021

Six months

 ended

30 Sept 2020

 

£'000

£'000

£'000

1 April

22,456

32,537

32,537

Capital expenditure

1,333

160

12

Disposals

-

(241)

-

Depreciation

(3)

(1,327)

(939)

Impairment loss to an investment property

-

(7,023)

-

Foreign exchange translation

304

(1,650)

934

Total at end of period

24,090

22,456

32,544

 

Investment properties owned by the Group are stated at cost less depreciation and accumulated impairment losses.

 

In 2015 the Directors resolved to depreciate the value of the property in Gdynia over the remaining term of the lease (which expired in February 2021) to reflect its residual value. No depreciation was charged on this property for the period to 30 September 2021. No other property has been depreciated as their respective estimated residual values are expected to be higher than their carrying value.

 

At 31 March 2021, the Directors wrote down the value of the Gdynia property by £7.02 million to reflect the value of the final settlement agreed with the lending bank, following the restructuring of the financing in June 2021.

 

7.  Inventory - Land and Buildings

 

 

 

Six months

ended

30 Sept 2021

Year

 ended

31 Mar 2021

Six months

 ended

30 Sept 2020

 

£'000

£'000

£'000

1 April

12,494

14,558

14,558

Capital expenditure

132

213

20

Disposals

-

(1,320)

-

Depreciation

(55)

(84)

(31)

Foreign exchange translation

204

(873)

393

Total at end of period

12,775

12,494

14,940

 

The Group's total interest in Blue Tower (an office block in Warsaw) is 48.2% of the building. The fair value of this interest is €18.58 million as at 30 September 2021 and 31 March 2021 but is stated at cost as above.

 

The disposal in the year ended 31 March 2021 relates to the sale of another property related to Blue Tower. Consideration of £1.10 million was received in respect of this sale resulting in a loss on disposal of £217,000. The fair value of this interest as at 31 March 2021 was €2.10 million.

 

 

8.  Investments in associates and other financial investments

 

 

Six months ended

30 Sept 2021

Year

ended

31 Mar 2021

Six months

ended

30 Sept 2020

a) Associates

£'000

£'000

£'000

 

 

 

 

Cost of investment at beginning of period

18,577

17,698

17,698

Additions

605

62

Disposals

-

-

-

Repayment of shareholder loan

(31)

(172)

-

Share of associates profit after tax 

234

3,467

723

Share of associates revaluation losses

42

(2,997)

-

Dividends received

(242)

(24)

-

Cost of investment at end of period

18,580

18,577

18,483

 

 

 

Six months ended

30 Sept 2021

Year

ended

31 Mar 2021

Six months

ended

30 Sept 2020

 

£'000

£'000

£'000

Investments in associates

 

 

 

5th Property Trading Ltd

1,627

1,555

1,508

Fprop Romanian Supermarkets Ltd

-

194

179

Fprop Galeria Corso Ltd

2,550

2,479

2,445

Fprop Krakow Ltd

1,648

1,592

1,543

Fprop Cluj Ltd

600

596

560

Fprop Phoenix Ltd

1,349

1,530

1,690

Fprop Opportunities plc

11,114

10,939

10,866

 

18,888

18,885

18,791

Less: Group share of profit after tax withheld on sale of property to an associate in 2007 

(308)

(308)

(308)

Cost of investment at end of period

18,580

18,577

18,483

 

The withheld profit figure of £308,000 represents the removal of the percentage of intercompany profit resulting from the sale of the property in 2007 to 5th Property Trading Ltd (an associate). The figure will reduce when there is a reduction in First Property Group's stake in 5th Property Trading Ltd.

 

 

Six months ended

30 Sept 2021

Year

 ended

31 Mar 2021

Six months

ended

30 Sept 2020

 

£'000

£'000

£'000

b) Other financial investments

 

 

 

Cost of investment at 1 April

3,061

3,174

3,174

Additions

2

6

6

Repayments

-

-

-

Disposal

-

-

-

(Decrease)/ increase in fair value during the period

(14)

(119)

(52)

Cost of investment at end of period

3,049

3,061

3,128

 

 

9.  Trade and Other Receivables

 

 

Six months ended

30 Sept 2021

Year

 ended

31 Mar 2021

Six months

ended

30 Sept 2020

 

£'000

£'000

£'000

Current assets

 

 

 

Trade receivables

953

1,325

1,222

Less provision for impairment of receivables

(260)

(281)

(356)

Trade receivables net

693

1,044

866

Other receivables 

3,253

3,408

1,757

Prepayments and accrued income 

973

697

593

Total at end of period

4,919

5,149

3,216

 

 

 

 

Non-current assets

 

 

 

Other receivables

293

487

730

 

The other receivables balance included in non-current assets of £293,000 (31 March 2021: £487,000) relates to the deferred consideration from the sale of an investment property located in Romania. This has been discounted to reflect its current value.

 

 

10.  Trade and Other Payables

 

 

Six months ended

30 Sept 2021

Year

 ended

31 Mar 2021

Six months

ended

30 Sept 2020

 

£'000

£'000

£'000

Current liabilities

 

 

 

Trade payables 

1,108

2,052

1,841

Other taxation and social security 

252

557

621

Other payables and accruals 

2,906

691

993

Deferred income

369

147

183

Total at end of period

4,635

3,447

3,638

 

 

11.  Provisions

 

 

Six months ended

30 Sept 2021

Year

 ended

31 Mar 2021

Six months

ended

30 Sept 2020

 

£'000

£'000

£'000

Current liabilities

1,767

2,076

1,826

 

The provision at 30 Sept 2021 represents a rent guarantee of £458,000 (31 March 2021: £786,000) and fit out costs of £1,309,000 (31 March 2021: £1,290,000). These provisions are in respect of the guarantee given as part of the sale of CH8 which completed in April 2020.

 

 

12.  Financial Liabilities

 

 

Six months ended

 30 Sept 2021

Year

 ended

31 Mar 2021

Six months

ended

30 Sept 2020

 

£'000

£'000

£'000

a) Current liabilities

 

 

 

Bank loans

1,316

1,194

1,302

Finance lease obligations

-

21,443

24,501

Total at end of period

1,316

22,637

25,803

 

 

 

 

b) Non-current liabilities

 

 

 

Bank loans

13,173

12,457

15,241

Finance lease obligations

-

-

-

Total at end of period

13,173

12,457

15,241

 

 

 

 

c) Total obligations under financial liabilities 

 

 

 

Repayable within one year

1,316

22,637

25,803

Repayable within one and five years

6,835

11,116

8,833

Repayable after five years

6,338

1,341

6,408

Total at end of period

14,489

35,094

41,044

 

Four bank loans (all denominated in Euros) totalling £14.49 million (31 March 2021: £41.04 million), included within financial liabilities, are secured against investment properties owned by the Group and one property owned by the Group shown under inventories. These bank loans are otherwise non-recourse to the Group's assets.

 

13.  Other Financial Liabilities

 

 

Six months ended

30 Sept 2021

Year

 ended

31 Mar 2021

Six months

ended

30 Sept 2020

 

£'000

£'000

£'000

Non-current liabilities

10,314

-

-

 

This non-current liability represents the balance of €12.00 million which was a result of the restructuring of a finance lease secured against the office tower in Gdynia. The restructuring resulted in the amount owed to ING bank in final settlement reducing by €9.00 million (£7.81 million). As part of the deal, the Group acquired the freehold of the property for €16.00 million of which €4.00 million has been paid and €12.00 million is owed by June 2024. No interest is payable on this non-current liability.

 

 

The interim results are being circulated to all shareholders and can be downloaded from the company's web site. Further copies can be obtained from the registered office at 32 St James's Street, London SW1A 1HD.

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