Final Results - Part 2

RNS Number : 9958D

Quintain Estates & Development PLC

24 May 2012

 



Quintain Estates and Development plc

Consolidated Income Statement  

For the year ended 31 March 2012

	Notes	2012	2011
		£m	£m
Revenue	2.3	45.4	46.9
Cost of sales	2.3	(20.5)	(20.7)
Gross profit		24.9	26.2
Administrative expenses	2.4	(22.0)	(20.6)
Operating profit before recognition of results from non-current asset sales and revaluation		2.9	5.6
(Loss) profit from sale of non-current assets		(3.9)	2.8
Deficit on revaluation of investment properties	3.1	(40.5)	(54.0)
Share of profit from joint ventures	3.4	8.6	9.5
Share of loss from associates		(0.1)	(0.1)
Operating loss before net finance expenses and tax		(33.0)	(36.2)
Finance expenses	2.6	(16.7)	(15.0)
Finance income	2.6	6.2	3.1
Loss before tax		(43.5)	(48.1)
Tax credit for the year	2.7	8.0	13.4
Loss for the financial year		(35.5)	(34.7)
Attributable to:
Equity shareholders		(35.5)	(34.7)
Non-controlling interest		-	-
		(35.5)	(34.7)
Earnings per share (pence):
Basic and diluted	2.8	(6.8)	(6.7)

Consolidated Statement of Other Comprehensive Income

For the year ended 31 March 2012

	Notes	2012	2011
		£m	£m
Foreign currency translation differences		(0.4)	(0.1)
Deficit on revaluation of other non-current investments		(0.2)	(0.3)
Effective portion of changes in fair value of cashflow hedges		(4.4)	2.3
Recycling of fair value adjustment on cashflow hedges		9.1	5.3
Recycling of fair value adjustment on disposal of interest in joint venture		-	0.4
Share of other comprehensive income in joint ventures, net of tax	3.4	3.2	4.8
Tax on other comprehensive income	2.7	1.2	(2.1)
Other comprehensive income for the financial year		8.5	10.3
Loss for the financial year		(35.5)	(34.7)
Total comprehensive loss for the financial year		(27.0)	(24.4)
Attributable:
Equity shareholders		(27.0)	(24.4)

Consolidated Balance Sheet

As at 31 March 2012

	Notes	2012	2011
		£m	£m
Non-current assets
Investment properties	3.1	825.9	805.6
Owner-occupied properties, plant and equipment		0.8	2.6
Intangible assets	4.1	7.5	-
Investment in joint ventures	3.4	273.6	217.0
Investment in associates		1.5	1.5
Non-current receivables	5.1	14.9	14.3
Total non-current assets		1,124.2	1,041.0
Current assets
Trading properties	3.3	21.3	23.9
Trade and other receivables		23.1	19.4
Cash and cash equivalents		7.5	19.8
Total current assets		51.9	63.1
Total assets		1,176.1	1,104.1
Current liabilities
Bank loans and other borrowings	6.1	(76.1)	(3.7)
Trade and other payables	5.3	(42.0)	(36.5)
Current tax liability		(1.4)	(1.2)
Total current liabilities		(119.5)	(41.4)
Non-current liabilities
Bank loans and other borrowings	6.1	(464.2)	(432.7)
Deferred tax liability	2.7	(4.8)	(12.2)
Obligations under finance leases		(11.1)	(11.1)
Other payables	5.2	(4.5)	(8.1)
Total non-current liabilities		(484.6)	(464.1)
Total liabilities		(604.1)	(505.5)
Net assets		572.0	598.6
Equity
Issued capital	6.2	130.2	130.2
Share premium account		137.3	137.3
Other capital reserves		107.5	108.1
Cashflow hedge reserve		(19.2)	(28.3)
Retained earnings		224.6	260.6
Own shares held reserve		(8.7)	(9.6)
Equity shareholders' funds		571.7	598.3
Non-controlling interest		0.3	0.3
Total equity		572.0	598.6
Net asset value per share (pence):	2.8
Basic		110	116
Diluted		110	115

Approved by the Board of Directors on 24 May 2012 and signed on its behalf by:

WILLIAM RUCKER                                                              REBECCA WORTHINGTON

Director                                                                            Director

Consolidated Statement of Changes in Shareholders' Equity

For the year ended 31 March 2012

	Issued capital	Share premium account	Other capital reserves	Cashflow hedge reserve	Retained earnings	Own shares held reserve	Equity shareholders' funds	Non-controlling interest	Total equity
	£m	£m	£m	£m	£m	£m	£m	£m	£m
Balance 1 April 2011	130.2	137.3	108.1	(28.3)	260.6	(9.6)	598.3	0.3	598.6
Loss for the financial year	-	-	-	-	(35.5)	-	(35.5)	-	(35.5)
Other comprehensive income for the year, net of tax	-	-	(0.6)	9.1	-	-	8.5	-	8.5
Shares awarded to employees under Share-based payment schemes	-	-	-	-	(0.9)	0.9	-	-	-
Costs relating to share-based payment schemes	-	-	-	-	0.4	-	0.4	-	0.4
Balance 31 March 2012	130.2	137.3	107.5	(19.2)	224.6	(8.7)	571.7	0.3	572.0

Consolidated Statement of Changes in Shareholders' Equity

For the year ended 31 March 2011

	Issued capital	Share premium account	Other capital reserves	Cashflow hedge reserve	Retained earnings	Own shares held reserve	Equity shareholders' funds	Non-controlling interest	Total equity
	£m	£m	£m	£m	£m	£m	£m	£m	£m
Balance 1 April 2010	130.1	137.3	108.5	(39.0)	294.8	(9.6)	622.1	0.3	622.4
Loss for the financial year	-	-	-	-	(34.7)	-	(34.7)	-	(34.7)
Other comprehensive income for the year, net of tax	-	-	(0.4)	10.7	-	-	10.3	-	10.3
Issue of shares less costs	0.1	-	-	-	-	-	0.1	-	0.1
Costs relating to share-based payment schemes	-	-	-	-	0.5	-	0.5	-	0.5
Balance 31 March  2011	130.2	137.3	108.1	(28.3)	260.6	(9.6)	598.3	0.3	598.6

Consolidated Cashflow Statement

For the year ended 31 March 2012

		2012	2011
		£m	£m
Operating activities
Loss for the financial period		(35.5)	(34.7)
Adjustments for:
Depreciation of plant and equipment		0.6	0.8
Costs relating to share-based payment schemes		0.4	0.5
Net finance expenses		10.5	11.9
Loss (profit) on sale of non-current assets		3.9	(2.8)
Deficit on revaluation of investment properties		40.5	54.0
Share of profit from joint ventures		(8.6)	(9.5)
Share of loss from associates		0.1	0.1
Provisions in book value of trading properties		2.9	0.4
Foreign exchange gains		(0.4)	-
Tax on continuing operations		(8.0)	(13.4)
		6.4	7.3
(Increase) decrease in trade and other receivables		(1.8)	0.7
Increase (decrease) in trade and other payables		4.0	(1.9)
(Increase) decrease in trading properties		(1.5)	2.2
Cash generated from operations		7.1	8.3
Interest paid		(30.7)	(37.3)
Interest received		1.6	0.9
Tax recovered (paid)		0.1	(0.1)
Net cashflow from operating activities		(21.9)	(28.2)
Investing activities
Proceeds from sale of investment properties		49.6	34.6
Purchase and development of investment properties		(95.5)	(63.2)
Purchase of owner-occupied properties, plant and equipment		(0.1)	(0.7)
Refund of capital from other non-current investments		0.5	-
Purchase of subsidiary net of cash acquired		(5.5)	-
Proceeds from sale of interests in joint ventures		-	15.5
Capital and loan payments advanced to joint ventures		(45.3)	(45.1)
Capital and loan repayments received from joint ventures		1.5	28.9
Loans advanced to associate		-	(10.7)
Distributions received from joint ventures		3.5	6.2
Net cashflow from investing activities		(91.3)	(34.5)
Financing activities
Issue of shares		-	0.1
Proceeds from new borrowings		110.5	193.1
Repayment of borrowings		(7.9)	(156.3)
Payment of loan issue costs		(0.9)	(0.8)
Payment of finance lease liabilities		(0.8)	(0.8)
Net cashflow from financing activities		100.9	35.3
Net decrease in cash and cash equivalents		(12.3)	(27.4)
Cash and cash equivalents at start of year		19.8	47.2
Cash and cash equivalents at end of year		7.5	19.8

Notes to the accounts

For the year ended 31 March 2012

Section 1: Preparation of financial statements

1.1 Basis of preparation

The Board approved the Group financial statements on 24 May 2012. These have been prepared in accordance with International Financial Reporting Standards and Interpretations issued by the International Financial Reporting Interpretations Committee as adopted by the European Union ('IFRS') and those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements are presented in Sterling and have been prepared on an historical cost basis except that investment properties, other non-current investments and certain financial instruments have been stated at fair value.

1.2 Going concern

The Group financial statements have been prepared on a going concern basis, which assumes that the Group will continue to meet its liabilities as they fall due. At 31 March 2012, the Group has prepared detailed cashflow forecasts which show that it has adequate committed undrawn facilities to finance its committed capital expenditure and other outflows, which will enable it to continue in operational existence for the foreseeable future. Further information regarding the Group's business activities, together with the factors likely to affect its future development, performance and position is set out in the Operational and Financial Review.

The Group's key financial covenants are an interest cover covenant, which requires the Group's operating profit before net finance expenses plus realised profits on disposals over net finance expenses excluding mark to market movements on derivatives to be greater than 1.25x, and a gearing covenant, which requires the net borrowings of the Company and its wholly owned subsidiaries to be less than 110% of its equity, as defined in the banking covenants. The Group has a gearing ratio of 87% at 31 March 2012 and an interest cover ratio of 2.9x at 31 March 2012. The Group's forecasts show that the Group is expected to continue to meet both financial covenants for the foreseeable future.

Based on the above the directors believe it is appropriate to prepare the financial statements on a going concern basis.

1.3 Significant judgements, estimates and assumptions

The preparation of financial statements under IFRS requires the Board to make judgements, estimates and assumptions that affect the application of accounting policies, the reported amounts of assets and liabilities as at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements that are not readily apparent from other sources. However, the actual results may differ from these estimates. The areas where management has made significant judgements and estimates concern the classification and valuation of joint ventures and of properties.

Other areas of judgement, risk and uncertainty which are relevant to an understanding of these results and the Group's financial position are referred to in the Operational and Financial Review.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

1.4 Basis of consolidation

The Group's financial statements consolidate those of the Company and its subsidiaries, together referred to as the Group, and equity account for the Group's interest in joint ventures and associates.  The parent company financial statements present information about the Company as a separate entity and not about its Group. The Company has elected to prepare its parent company financial statements in accordance with UK GAAP.

Subsidiaries are those entities controlled by the Group. Control exists when the Group has power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that are currently exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date it ceases.

Section 2: Performance for the year

2.1 Underlying results for the year

Underlying results for the year are provided to enable readers of the accounts to differentiate between

items of an underlying operating nature and those relating to capital or revaluations.

	2012 Adjusted	2012 Capital1	2012 Total	2011 Adjusted	2011 Capital1	2011 Total
	£m	£m	£m	£m	£m	£m
Revenue	45.4	-	45.4	46.9	-	46.9
Cost of sales	(17.6)	(2.9)	(20.5)	(20.3)	(0.4)	(20.7)
Gross profit (loss)	27.8	(2.9)	24.9	26.6	(0.4)	26.2
Administrative expenses	(22.0)	-	(22.0)	(20.6)	-	(20.6)
Operating profit (loss) before recognition of results from non-current asset sales and revaluation	5.8	(2.9)	2.9	6.0	(0.4)	5.6
(Loss) profit from the sale of non-current assets	-	(3.9)	(3.9)	-	2.8	2.8
Deficit on revaluation of investment properties	-	(40.5)	(40.5)	-	(54.0)	(54.0)
Share of profit from joint ventures	4.4	4.2	8.6	4.8	4.7	9.5
Share of loss from associates	-	(0.1)	(0.1)	-	(0.1)	(0.1)
Operating profit (loss) before finance expenses and tax	10.2	(43.2)	(33.0)	10.8	(47.0)	(36.2)
Finance expense	(10.6)	(6.1)	(16.7)	(10.3)	(4.7)	(15.0)
Finance Income	6.2	-	6.2	3.1	-	3.1
Net finance expenses	(4.4)	(6.1)	(10.5)	(7.2)	(4.7)	(11.9)
Profit (loss) before tax	5.8	(49.3)	(43.5)	3.6	(51.7)	(48.1)
Tax (charge) credit for the year	(0.1)	8.1	8.0	(0.2)	13.6	13.4
Profit (loss) for the financial year attributable to equity shareholders	5.7	(41.2)	(35.5)	3.4	(38.1)	(34.7)

¹For these purposes revaluation movements and trading property provisions are included with capital items.

2.2 Segmental information

The Group has seven reportable segments being Wembley, Greenwich, Other Urban Regeneration ("UR"), Quercus, iQ, SeQuel and Other Quintain Asset Management ("QAM"). The first three of these relate to the Group's urban regeneration activities and the remaining four to the Group's Asset Management activities. The latter includes assetmanagement fees and investment returns from properties held for rental income either directly by the Group, including SeQuel (the Group's secondary property portfolio) or in specialist property joint ventures, including Quercus (healthcare) and iQ (student accommodation). The factors used to determine the Group's reportable segments relate to the way in which the business is aligned and the manner in which results and assets are reported to the Board (as the Board is considered to be the chief operating decision maker) and therefore the basis that resource allocations are made.

Since the prior year, QAM has been expanded to include both the previous fund management and the investment property previously disclosed as an 'other' segment and the comparatives have been adjusted accordingly.

The measure of segment result is considered to be the IFRS measure of operating profit before administrative expenses. The Board reviews administrative expenses, finance expenses and tax at Group level and does not allocate these costs to segments. The Group's segment asset and liability disclosures reflect the Board's primary focus on property, joint venture and investment assets at the segment level with all other assets being reviewed at the Group level. Liabilities are only reviewed at the Group level and not allocated to segments.

All activities are based in the United Kingdom and Channel Islands.

Further discussion of the Group's results for the year and the segmental balance sheets is contained in the Operational and Financial Review.

The segmental information of the Group's results for the year ended 31 March 2012 was as follows:

	Wembley	Greenwich	Other UR	Total UR	Quercus	iQ	SeQuel	Other QAM	Total QAM	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Revenue	23.0	0.2	1.8	25.0	3.6	3.0	8.5	5.3	20.4	45.4
Cost of sales	(10.0)	(0.1)	(3.9)	(14.0)	(1.3)	-	(2.2)	(3.0)	(6.5)	(20.5)
Gross profit (loss)	13.0	0.1	(2.1)	11.0	2.3	3.0	6.3	2.3	13.9	24.9
(Loss) profit from the sale of non-current Assets	(0.8)	-	(3.4)	(4.2)	-	-	0.6	(0.3)	0.3	(3.9)
(Deficit) surplus on revaluation of investment properties	(29.5)	6.5	(2.9)	(25.9)	-	-	(10.9)	(3.7)	(14.6)	(40.5)
Share of profit (loss) from joint ventures	0.3	(0.7)	0.1	(0.3)	0.6	8.3	-	-	8.9	8.6
Share of loss from associates	-	-	-	-	-	-	-	(0.1)	(0.1)	(0.1)
Operating (loss) profit before administrative expenses	(17.0)	5.9	(8.3)	(19.4)	2.9	11.3	(4.0)	(1.8)	8.4	(11.0)
Administrative expenses										(22.0)
Net finance expenses										(10.5)
Loss before tax										(43.5)
Adjusted	13.3	(0.8)	0.8	13.3	5.3	4.8	6.3	2.5	18.9	32.2
Capital1	(30.3)	6.7	(9.1)	(32.7)	(2.4)	6.5	(10.3)	(4.3)	(10.5)	(43.2)
Operating (loss) profit before administrative expenses	(17.0)	5.9	(8.3)	(19.4)	2.9	11.3	(4.0)	(1.8)	8.4	(11.0)

¹For these purposes revaluation movements and trading property provisions are included with capital items.

The segmental information of the Group's results for the year ended 31 March 2011 was as follows:

	Wembley	Greenwich	Other UR	Total UR	Quercus	iQ	SeQuel	Other QAM	Total QAM	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Revenue	25.2	0.4	3.5	29.1	3.4	2.4	9.0	3.0	17.8	46.9
Cost of sales	(13.0)	(0.1)	(3.4)	(16.5)	(1.1)	-	(1.7)	(1.4)	(4.2)	(20.7)
Gross profit	12.2	0.3	0.1	12.6	2.3	2.4	7.3	1.6	13.6	26.2
Profit (loss) from the sale of non-current assets	0.1	2.5	-	2.6	0.2	-	0.7	(0.7)	0.2	2.8
(Deficit) surplus on revaluation of investment properties	(6.8)	3.0	(9.6)	(13.4)	-	-	(4.9)	(35.7)	(40.6)	(54.0)
Share of (loss) profit from joint ventures	(0.8)	(5.9)	1.5	(5.2)	7.3	7.5	-	(0.1)	14.7	9.5
Share of loss from associates	-	-	-	-	-	-	-	(0.1)	(0.1)	(0.1)
Operating profit (loss) before administrative expenses	4.7	(0.1)	(8.0)	(3.4)	9.8	9.9	3.1	(35.0)	(12.2)	(15.6)
Administrative expenses										(20.6)
Net finance expenses										(11.9)
Loss before tax										(48.1)
Adjusted	12.4	(1.4)	2.1	13.1	6.5	2.9	7.3	1.6	18.3	31.4
Capital1	(7.7)	1.3	(10.1)	(16.5)	3.3	7.0	(4.2)	(36.6)	(30.5)	(47.0)
Operating profit (loss) before administrative expenses	4.7	(0.1)	(8.0)	(3.4)	9.8	9.9	3.1	(35.0)	(12.2)	(15.6)

¹For these purposes revaluation movements and trading property provisions are included with capital items.

The segmental information of the Group's Balance Sheet as at 31 March 2012 was as follows:

	Wembley	Greenwich	Other UR	Total UR	Quercus	iQ	SeQuel	Other QAM	Total QAM	Unallocated	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m		£m
Non-current assets
Investment properties	536.5	167.8	20.6	724.9	-	-	66.4	34.6	101.0	-	825.9
Owner-occupied properties, plant and equipment	-	-	-	-	-	-	-	-	-	0.8	0.8
Intangible assets	-	-	-	-	-	-	-	7.5	7.5	-	7.5
Investment in joint ventures	2.3	89.1	0.6	92.0	50.1	116.4	-	15.1	181.6	-	273.6
Investment in associates	-	-	-	-	-	-	-	1.5	1.5	-	1.5
Non-current receivables	-	-	4.2	4.2	-	-	-	10.7	10.7	-	14.9
Total non-current assets	538.8	256.9	25.4	821.1	50.1	116.4	66.4	69.4	302.3	0.8	1,124.2
Current assets
Trading properties	9.0	-	12.3	21.3	-	-	-	-	-	-	21.3
Other current assets	-	-	-	-	-	-	-	-	-	30.6	30.6
Total current assets	9.0	-	12.3	21.3	-	-	-	-	-	30.6	51.9
Total assets	547.8	256.9	37.7	842.4	50.1	116.4	66.4	69.4	302.3	31.4	1,176.1
Total current liabilities	-	-	-	-	-	-	-	-	-	(119.5)	(119.5)
Total non-current liabilities	-	-	-	-	-	-	-	-	-	(484.6)	(484.6)
Total liabilities	-	-	-	-	-	-	-	-	-	(604.1)	(604.1)
Net assets (liabilities)	547.8	256.9	37.7	842.4	50.1	116.4	66.4	69.4	302.3	(572.7)	572.0
Capital expenditure	81.1	2.4	1.0	84.5	-	-	-	17.5	17.5	-	102.0

The segmental information of the Group's Balance Sheet as at 31 March 2011 was as follows:

	Wembley	Greenwich	Other UR	Total UR	Quercus	iQ	SeQuel	Other QAM	Total QAM	Unallocated	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m		£m
Non-current assets
Investment properties	470.9	159.0	37.8	667.7	-	-	83.7	54.2	137.9	-	805.6
Owner-occupied properties, plant and equipment	-	-	-	-	-	-	-	-	-	2.6	2.6
Investment in joint ventures	3.5	83.7	0.9	88.1	51.8	67.7	-	9.4	128.9	-	217.0
Investment in associates	-	-	-	-	-	-	-	1.5	1.5	-	1.5
Non-current receivables	-	-	3.6	3.6	-	-	-	10.7	10.7	-	14.3
Total non-current assets	474.4	242.7	42.3	759.4	51.8	67.7	83.7	75.8	279.0	2.6	1,041.0
Current assets
Trading properties	11.1	-	12.8	23.9	-	-	-	-	-	-	23.9
Other current assets	-	-	-	-	-	-	-	-	-	39.2	39.2
Total current assets	11.1	-	12.8	23.9	-	-	-	-	-	39.2	63.1
Total assets	485.5	242.7	55.1	783.3	51.8	67.7	83.7	75.8	279.0	41.8	1,104.1
Total current liabilities	-	-	-	-	-	-	-	-	-	(41.4)	(41.4)
Total non-current liabilities	-	-	-	-	-	-	-	-	-	(464.1)	(464.1)
Total liabilities	-	-	-	-	-	-	-	-	-	(505.5)	(505.5)
Net assets (liabilities)	485.5	242.7	55.1	783.3	51.8	67.7	83.7	75.8	279.0	(463.7)	598.6
Capital expenditure	32.4	0.2	0.1	32.7	-	-	0.1	37.1	37.2	-	69.9

2.3 Revenue, cost of sales and gross profit                                

	2012			2011
	Revenue £m	Cost of sales £m	Gross profit £m	Revenue £m	Cost of sales £m	Gross profit £m
Rental income	20.1	(5.7)	14.4	20.2	(5.1)	15.1
Income from sale of trading properties	2.3	(2.4)	(0.1)	7.6	(7.6)	-
Income from hotel operations	8.5	(3.7)	4.8	7.6	(3.7)	3.9
Fees from fund management and other services provided to related parties	7.3	(1.5)	5.8	6.7	(1.2)	5.5
Other income	7.2	(4.3)	2.9	4.8	(2.7)	2.1
	45.4	(17.6)	27.8	46.9	(20.3)	26.6
Provision in book value of trading properties	-	(2.9)	(2.9)	-	(0.4)	(0.4)
	45.4	(20.5)	24.9	46.9	(20.7)	26.2

2.4 Administrative expenses

The analysis of the Group's administrative expenses was as follows:

		2012	2011
		£m	£m
Directors' remuneration		2.6	2.8
Staff costs		12.0	9.8
Total staff costs		14.6	12.6
Legal and other professional fees		2.2	2.5
Office costs		3.5	3.2
Depreciation of tangible fixed assets		0.5	0.6
Operating lease payments		1.1	1.1
General expenses		0.1	0.6
		22.0	20.6

Future minimum lease payments payable by the Group under non-cancellable operating leases were £3.0m (2011: £3.8m) payable evenly over the next four years.

2.5 Property revaluation movements

The revaluation movements on the Group's investment properties whether held directly or through joint ventures and the associates were as follows:

	2012	2011
	£m	£m
Deficit on revaluation of directly held investment properties	(40.5)	(54.0)
Surplus on revaluation of investment properties in joint ventures	7.8	8.9
Deficit on revaluation of investment properties in associates	(0.2)	(0.1)
	(32.9)	(45.2)

2.6 Net finance expenses

		2012	2011
		£m	£m
Recognised in Income Statement:
Interest expense on bank debt and associated swaps		18.9	21.4
Interest on obligations under finance leases		0.8	0.8
		19.7	22.2
Interest capitalised		(14.1)	(11.9)
		5.6	10.3
Change in fair value of ineffective caps		2.0	(0.5)
Recycling of fair value adjustment on effective swaps		9.1	5.3
Profit realised on termination of swaps		-	(0.1)
Finance expenses		16.7	15.0
Finance income: interest income on loans and receivables		(6.2)	(3.1)
		10.5	11.9
Recognised in other comprehensive income:
Net change in fair value of quoted investments		0.2	0.3
Effective portion of changes in fair value of cashflow hedges		4.4	(2.3)
Recycling of fair value adjustment on effective swaps		(9.1)	(5.3)
		(4.5)	(7.3)

The interest capitalised relates to investment properties in the course of construction. The average rate of interest used for capitalisation was 5.3% (2011: 6.0%).

2.7 Taxation

i) Tax credit for the year

		2012	2011
		£m	£m
UK current tax at 26% (2011: 28%)		-	-
Adjustment to prior year's UK corporation tax		-	0.1
Overseas tax		0.1	0.1
Total current tax charge		0.1	0.2
Deferred tax:
On investment properties		(13.5)	(10.7)
On derivative financial instruments		(0.5)	0.1
On other temporary differences		6.3	(2.2)
Effect of tax rate change		(0.4)	(0.8)
Total deferred tax credit		(8.1)	(13.6)
Tax credit		(8.0)	(13.4)

ii) Tax credit reconciliation

		2012	2011
		£m	£m
Loss before tax		(43.5)	(48.1)
Tax applied at UK corporation tax rate of 26% (2011: 28%)		(11.3)	(13.5)
Use of losses and differing tax rates in respect of overseas results		-	(0.1)
Unrecognised tax losses		2.4	-
Indexation relief on UK investment properties		-	0.3
Adjustment to prior years' current and deferred tax		4.3	0.8
Tax credit taken to share of income from joint ventures and associates		(3.7)	(3.8)
Impact of future UK corporation tax rate change		0.2	(0.8)
Other movements		0.1	3.7
Tax credit		(8.0)	(13.4)

iii) Tax recognised in other comprehensive income

		2012	2011
		£m	£m
Deferred tax (credit) charge recognised in other comprehensive income		(1.2)	2.1

iv) Deferred tax movements        

	1 April 2011	Recognised in Income Statement	Effect of tax rate change	Recognised on acquisition of subsidiary	Recognised in other comprehensive income	31 March 2012
	£m	£m	£m	£m	£m	£m
Capital gains less capital losses	25.6	(13.5)	(0.9)	-	-	11.2
Capital allowances	9.8	0.7	(0.9)	-	-	9.6
Derivative financial instruments	(5.9)	(0.5)	0.5	-	(1.2)	(7.1)
Other temporary differences	0.5	-	-	1.9	-	2.4
Revenue tax losses	(17.8)	5.6	0.9	-	-	(11.3)
Deferred tax provision	12.2	(7.7)	(0.4)	1.9	(1.2)	4.8

As part of the Budget presented on 21 March 2012, the Government announced that the corporation tax rate would reduce to 24% with effect from April 2012 with two further annual 1% cuts to 22% by April 2014. On 26 March 2012, the Provisional Collection of Taxes Act 1968 substantively enacted the reduction to 24% on 1 April 2012. The Group has therefore re-measured the deferred tax assets and liabilities as at 31 March 2012 using the enacted rate of 24%. Other than the enacted change to 24%, the effects of the announced changes are not reflected in the financial statements for the year ended 31 March 2012 as they have not yet been enacted and the impact has not yet been estimated.

The impact of the rate reduction was to reduce deferred tax liabilities by £0.4m.  This has been recognised within the Income Statement. Management cannot quantify the full impact of the further rate changes.

Deferred tax assets estimated at £20.1m (2011: £15.4m) have not been recognised due to a higher degree of uncertainty over both the amount and timing of the utilisation of the underlying tax losses and deductions, which amounted to £52.0m (2011: £39.0m). Under current tax legislation, there is no expiry date associated with the unprovided deferred tax assets.

There were no temporary differences associated with investment in subsidiaries and interests in joint ventures and associates for which deferred tax liabilities have not been recognised.

v) Total tax credit                                                                                                                                      

The tax credit recognised in these financial statements was as follows:

	2012	2011
	£m	£m
Tax credit on loss as above	(8.0)	(13.4)
Tax charge on share of profit in joint ventures (note 3.4c)	3.8	3.1
Tax credit on share of profit in associates	(0.1)	-
Tax (credit) charge on income and expenses recognised in other comprehensive income	(1.2)	2.1
	(5.5)	(8.2)

2.8 Earnings per share and net asset value per share

i) Earnings per share

			2012				2011
	Loss after tax	Weighted average number  of shares	Earnings per share		Loss after tax	Weighted average number  of shares	Earnings per share
	£m	m	pence		£m	m	pence
Basic and diluted	(35.5)	518.3	(6.8)		(34.7)	517.8	(6.7)

ii) Net asset value per share

			2012				2011
	Equity shareholders' funds	Number of shares	Net asset value per share		Equity shareholders' funds	Number of shares	Net asset value per share
	£m	m	pence		£m	m	pence
As per accounts	571.7	520.9			598.3	520.7
Less: Treasury shares	-	(2.5)			-	(2.8)
Basic	571.7	518.4	110		598.3	517.9	116
Adjustments:
Employee share-based payment schemes	0.1	0.5			0.2	1.2
Diluted	571.8	518.9	110		598.5	519.1	115

Although not required under IFRS, net asset value per share is considered a key performance indicator in the sector in which the Group operates.

Apart from allocations which have vested but not been released, entitlements under the Executive Directors' Performance Share Plan have been excluded from the calculation in ii) above as the commitments relate to contingently issuable shares where the conditions had not been met at the balance sheet date.

Section 3: Property Assets, joint ventures and associates

3.1 Investment properties

		Freehold	Long leasehold	Short leasehold	Total
		£m	£m	£m	£m
Balance 31 March 2010		733.1	74.2	5.6	812.9
Additions		53.6	16.3	-	69.9
Interest capitalised		11.9	-	-	11.9
Disposals		(20.1)	(15.0)	-	(35.1)
Revaluation deficit		(16.6)	(37.3)	(0.1)	(54.0)
Balance 31 March 2011		761.9	38.2	5.5	805.6
Additions		100.8	1.2	-	102.0
Interest capitalised		14.1	-	-	14.1
Disposals		(49.3)	(6.0)	-	(55.3)
Revaluation (deficit) surplus		(41.1)	0.8	(0.2)	(40.5)
Balance 31 March 2012		786.4	34.2	5.3	825.9

Of the additions shown above, £nil (2011: £37.2m) related to the acquisition of properties, £102.0m

(2011: £32.7m) related to construction on development sites and improvements to existing properties.

The historical cost of the Group's investment properties as at 31 March 2012 was £758.4m (2011: £691.1m), which included capitalised interest of £87.5m (2011: £73.4m).

The average rate used for capitalisation is shown in note 2.6.

All of the Group's properties were externally valued as at 31 March 2012 on the basis of market value by professionally qualified valuers in accordance with the Appraisal and Valuation Standards of the Royal Institution of Chartered Surveyors, except for two properties valued by the directors. Such valuations are carried out every six months.

The Group's land and property holdings at Greenwich, Wembley, Silvertown and Dairy House Farm, Redhill have been valued by Savills Commercial Limited. Other properties in the United Kingdom have been valued by Jones Lang LaSalle Limited, CB Richard Ellis Limited and Christie + Co.  The Group's property interests in the Channel Islands have been valued by Guy Gothard & Co.

A reconciliation of the valuations carried out by the external valuers to the carrying values shown in the Balance Sheet was as follows:

	2012	2011
	£m	£m
Per valuers' reports
Savills Commercial Limited	783.9	761.1
Jones Lang LaSalle Limited	75.1	112.1
Other valuers	13.9	29.6
	872.9	902.8
Adjustment for properties held in joint ventures and associates and as trading	(119.9)	(107.2)
Directors' valuation	63.1	-
Investment properties at market value	816.1	795.6
Adjustment in respect of rent-free periods and other tenant incentives	(1.4)	(1.2)
Adjustment in respect of minimum payment under head leases separately included as a liability in the Balance Sheet	11.2	11.2
As shown in the Balance Sheet	825.9	805.6

The properties subject to directors' valuation are where conditional contracts for sale have been exchanged and completion is scheduled for the first half of 2012-13.

3.2 Capital commitments

As at 31 March 2012, the Group had capital commitments of £25.0m (2011: £105.9m) in relation to its own development properties of which £nil (2011: £3.8m) is recoverable under government grants.

The Group's share of capital commitments in relation to its joint ventures was £25.7m (2011: £67.8m), of which £18.0m (2011: £18.0m) will be refunded to the Group following the re-financing of iQ Shoreditch property by iQ Unit Trust on practical completion of the development.

3.3 Trading Properties

As at 31 March 2012, properties held for resale had a carrying value of £21.3m (2011: £23.9m), which include capitalised interest of £1.2m (2011: £1.3m). Provisions to the carrying value of trading property were £2.9m (2011: £0.4).

During the year, the Group sold trading properties with carrying values of £2.3m (2011: £7.6m).

3.4 Investments in joint ventures

a) The Group's interest in its joint ventures was as follows:

	% of ownership	Country of incorporation	Joint venture partners
Quercus Healthcare Property Unit Trust (Quercus) (1)	11.22	Channel Islands	Aviva
Greenwich Peninsula Regeneration Limited (GPRL) (2)	50.00	United Kingdom	Lend Lease (Europe)
Greenwich Peninsula N0204 Block B Unit Trust (N0204)	50.00	Channel Islands	Lend Lease (Europe)
Greenwich Peninsula Retail LLP (Greenwich Retail)	50.00	United Kingdom	Lend Lease (Europe)
iQ Unit Trust (iQ)	49.98	Channel Islands	Wellcome Trust
Quantum Unit Trust (Quantum)	50.00	Channel Islands	Aviva
Crest Nicholson BioRegional Quintain LLP (OneBrighton)	50.00	United Kingdom	Crest Nicholson
Quintessential Homes (Wembley) LLP (Quintessential) (3)	63.02	United Kingdom	Geninvest Family Housing Development Company

(1) Quercus is accounted for as a joint venture as the Group has a 50% share of the general partner which controls the operation of the Unit Trust.

(2) GPRL owns 98.00% of its main development subsidiary.

(3) Quintessential is accounted for as a joint venture as the Group does not exercise control over substantive issues.

b) The movement in investment in joint ventures was as follows:

	2012	2011
	£m	£m
Opening balance	217.0	202.1
Additions	-	2.7
Amounts advanced	49.6	44.0
Amounts repaid	(1.6)	(24.9)
Disposals	-	(15.5)
Distributions	(3.2)	(5.7)
Share of profit, net of tax	8.6	9.5
Share of other comprehensive income, net of tax	3.2	4.8
Closing balance	273.6	217.0

c) The Group's share of the results of its joint venture operations was as follows:

Summarised income statements for the year ended 31 March 2012

	Greenwich	iQ	Quercus	Quantum	Other joint ventures	Group share in joint ventures
	£m	£m	£m	£m	£m	£m
Rental income	4.6	11.3	6.4	0.3	0.3	22.9
Income from sale of trading properties	-	-	-	-	1.9	1.9
Revenue	4.6	11.3	6.4	0.3	2.2	24.8
Cost of sales	(4.5)	(3.2)	(0.9)	(0.5)	(1.8)	(10.9)
Gross profit (loss)	0.1	8.1	5.5	(0.2)	0.4	13.9
Administrative expenses	(0.1)	(1.3)	(1.0)	-	-	(2.4)
Operating profit (loss)	-	6.8	4.5	(0.2)	0.4	11.5
Surplus (deficit) on revaluation of investment properties	0.3	10.4	(2.7)	(0.2)	-	7.8
Profit (loss) before net finance expenses and tax	0.3	17.2	1.8	(0.4)	0.4	19.3
Finance expenses	(0.8)	(5.3)	(1.5)	-	-	(7.6)
Finance income	-	0.3	-	0.4	-	0.7
Profit (loss) before tax	(0.5)	12.2	0.3	-	0.4	12.4
Tax	(0.2)	(3.9)	0.3	-	-	(3.8)
Profit (loss) after tax	(0.7)	8.3	0.6	-	0.4	8.6
Share of other comprehensive income:
Effective portion of changes in fair value of cashflow hedges, net of tax	-	1.3	0.7	-	-	2.0
Recycling of mark-to-market adjustments	-	1.2	-	-	-	1.2
	-	2.5	0.7	-	-	3.2

Summarised balance sheets as at 31 March 2012

	Greenwich	iQ	Quantum	Quercus	Other joint ventures	Group share in joint ventures
	£m	£m	£m	£m	£m	£m
Investment properties	20.8	168.5	5.1	86.8	-	281.2
Investment in joint ventures	1.2	-	-	-	-	1.2
Trading properties	63.0	-	-	0.9	6.6	70.5
Deferred tax asset	3.4	0.8	0.3	0.3	-	4.8
Other assets	6.3	10.4	12.3	3.8	1.0	33.8
Total assets	94.7	179.7	17.7	91.8	7.6	391.5
Current liabilities:
Trade and other payables	(5.6)	(5.6)	(2.6)	(3.4)	(4.7)	(21.9)
Non-current liabilities:
Bank loans and other borrowings	(97.6)	(95.6)	-	(38.3)	-	(231.5)
Net assets	(8.5)	78.5	15.1	50.1	2.9	138.1
Represented by:
Group share of net assets	(8.5)	78.5	15.1	50.1	2.9	138.1
Loans to JV's	97.6	37.9	-	-	-	135.5
Total investment	89.1	116.4	15.1	50.1	2.9	273.6

Summarised income statements for the year ended 31 March 2011

	Greenwich	iQ	Quantum	Quercus	Other joint ventures	Group share in joint ventures
	£m	£m	£m	£m	£m	£m
Rental income	1.3	8.9	0.2	7.5	0.3	18.2
Income from sale of trading properties	5.8	-	-	-	10.8	16.6
Revenue	7.1	8.9	0.2	7.5	11.1	34.8
Cost of sales	(6.5)	(2.7)	(0.3)	-	(9.2)	(18.7)
Gross profit (loss)	0.6	6.2	(0.1)	7.5	1.9	16.1
Administrative expenses	(0.3)	(1.2)	-	(1.4)	(0.1)	(3.0)
Operating profit (loss)	0.3	5.0	(0.1)	6.1	1.8	13.1
Loss from sale of non-current assets	-	-	-	(0.1)	-	(0.1)
Surplus (deficit) on revaluation of investment properties	(0.5)	9.4	(0.1)	1.7	(1.6)	8.9
Profit (loss) before net finance expenses and tax	(0.2)	14.4	(0.2)	7.7	0.2	21.9
Finance expenses	(4.6)	(3.1)	-	(1.8)	-	(9.5)
Finance income	-	-	0.2	-	-	0.2
Profit (loss) before tax	(4.8)	11.3	-	5.9	0.2	12.6
Tax	(1.1)	(3.8)	(0.1)	1.4	0.5	(3.1)
Profit (loss) after tax	(5.9)	7.5	(0.1)	7.3	0.7	9.5
Share of other comprehensive income:
Effective portion of changes in fair value of cashflow hedges, net of tax	0.4	1.8	-	1.0	-	3.2
Recycling of mark-to-market adjustments	2.3	(0.7)	-	-	-	1.6
	2.7	1.1	-	1.0		4.8

Summarised balance sheets as at 31 March 2011

	Greenwich	iQ	Quantum	Quercus	Other joint ventures	Group share in joint ventures
	£m	£m	£m	£m	£m	£m
Investment properties	21.5	154.4	2.6	79.6	-	258.1
Investment in joint ventures	1.2	-	-	-	-	1.2
Trading properties	56.0	-	-	0.8	8.6	65.4
Deferred tax asset	3.4	4.7	0.4	-	-	8.5
Other assets	6.5	4.8	9.1	5.2	0.9	26.5
Total assets	88.6	163.9	12.1	85.6	9.5	359.7
Current liabilities:
Trade and other payables	(4.8)	(27.1)	(2.7)	(3.2)	(5.1)	(42.9)
Current tax liabilities	(0.1)	-	-	-	-	(0.1)
Non-current liabilities:
Bank loans and other borrowings	(91.6)	(67.3)	-	(30.0)	-	(188.9)
Other liabilities	-	(1.8)	-	(0.6)	-	(2.4)
Net external assets	(7.9)	67.7	9.4	51.8	4.4	125.4
Represented by:
Capital	(7.9)	67.7	9.4	51.8	4.4	125.4
Loans	91.6	-	-	-	-	91.6
Total investment	83.7	67.7	9.4	51.8	4.4	217.0

d) The summarised financial statements of the Group's principal joint venture operations were as follows:

	2012	2011	2012	2011	2012	2011
	Greenwich	Greenwich	Quercus	Quercus	iQ	iQ
	£m	£m	£m	£m	£m	£m
Income statements
Revenue	9.3	14.4	57.0	54.1	22.6	17.8
Expenses	(10.3)	(23.9)	(54.3)	(11.8)	1.8	4.9
Profit (loss) before tax	(1.0)	(9.5)	2.7	42.3	24.4	22.7
Balance Sheets
Non-current assets	51.5	52.2	776.3	707.1	338.6	318.4
Current assets	140.6	127.6	41.8	56.2	20.8	9.4
Total assets	192.1	179.8	818.1	763.3	359.4	327.8
Current liabilities	(11.4)	(9.9)	(29.8)	(29.1)	(11.2)	(54.1)
Non-current liabilities	(198.0)	(185.9)	(341.5)	(272.9)	(191.2)	(138.3)
Net external assets	(17.3)	(16.0)	446.8	461.3	157.0	135.4
Percentage share held by the Group	49.30%	49.30%	11.22%	11.22%	49.98%	49.98%
Group share of net assets	(8.5)	(7.9)	50.1	51.8	78.5	67.7

d) The summarised financial statement of the Group's principal joint venture operations were as follows:

	2012	2011	2012	2011	2012	2011
	Quantum	Quantum	Quintessential	Quintessential	OneBrighton	OneBrighton
	£m	£m	£m	£m	£m	£m
Income statements
Revenue	0.6	0.7	3.3	8.4	0.2	13.8
Expenses	(0.6)	(0.7)	(2.8)	(7.8)	-	(10.8)
Profit before tax	-	-	0.5	0.6	0.2	3.0
Balance Sheets
Non-current assets	10.9	5.9	-	-	-	-
Current assets	24.4	18.2	10.8	13.1	1.4	1.9
Total assets	35.3	24.1	10.8	13.1	1.4	1.9
Current liabilities	(5.2)	(5.3)	(7.0)	(7.5)	(0.6)	(0.5)
Net external assets	30.1	18.8	3.8	5.6	0.8	1.4
Percentage share held by the Group	50.00%	50.00%	63.02%	63.02%	50.00%	50.00%
Group share of net external assets	15.1	9.4	2.4	3.5	0.4	0.7

During the year, the Group received the following fees in respect of services provided to its joint ventures:

		2012 £m	2011 £m
Quercus Healthcare Property Unit Trust		3.7	3.4
iQ Unit Trust		3.0	2.4
Greenwich Peninsula Regeneration Limited		-	0.3
Quintessential Homes (Wembley) LLP		0.1	0.1
Quantum Unit Trust		0.3	0.5
		7.1	6.7

During the year, the Group received the following interest on its loan notes to its joint ventures:

		2012 £m	2011 £m
Greenwich Peninsula Regeneration Limited		1.8	1.6
Greenwich Peninsula Retail LLP		0.1	-
iQ Unit Trust		1.9	-
Greenwich N0204		0.8	0.7
Wembley City HIX Limited		-	0.1
		4.6	2.4

Section 4: Acquisitions

4.1 Acquisition of Grafton Advisors (2006) LLP

On 28 February 2012 the company acquired 100% of the partnership capital of Grafton Advisors (2006) LLP ("Grafton") for a cash consideration of £5.7m. The principal business of Grafton is to act as property adviser to the West End of London Property Unit Trust ("WELPUT"), a leading institutional investment fund that owns a high quality portfolio of predominantly office properties in London's West End.

The following table sets out the fair value of the assets and liabilities acquired on acquisition:

	£m
Intangible assets	7.5
Deferred tax recognised on the acquisition	(1.9)
Trade debtors	0.8
Cash at bank	0.2
Trade creditors	(0.9)
Fair value of net assets acquired	5.7

The intangible asset is the fair value of the WELPUT property adviser contract.  This will be amortised over 10 years; being the term remaining on this contract.  At 31 March 2012 the unamortised value of this intangible asset in the Consolidated Balance Sheet was £7.5m.

In addition to the cash consideration, the Grafton management team (the Grafton Team) were issued with Unsecured Loan Notes ("Loan Notes") which are redeemable to the extent that certain fees, including performance fees arising from WELPUT, are earned over the next five years. These qualifying fees will be shared equally between the Grafton Team and Quintain, with the maximum amount receivable by the Grafton Team being £5.0 million. The Loan Notes will carry a 2% coupon from the date of issue and the holders will have the right to apply the proceeds in subscribing for Quintain ordinary shares at a price of 55 pence per share, representing a 30% premium to the volume weighted average price for the five days to

27 February 2012.

The fair value of these Loan Notes at the date of acquisition was deemed to be £1.2m and this is being amortised over the service period. The fair value was calculated from the estimated cash flows arising from the Loan Notes, discounted at a rate reflective of the inherent risk. The cost of the loan notes will be amortised over the minimum employment term of the Grafton Team.

Section 5: Other assets and liabilities

5.1 Non Current receivables

The movement in other non-current investments was as follows:

	2012	2012	2012	2011	2011	2011
	Loans at amortised cost	Investments at fair  value	Total	Loans at amortised cost	Investments at fair value	Total
	£m	£m	£m	£m	£m	£m
Opening balance	10.7	3.6	14.3	-	3.9	3.9
Additions	1.3	-	1.3	10.7	-	10.7
Return of capital	-	(0.5)	(0.5)	-	-	-
Revaluation loss	-	(0.2)	(0.2)	-	(0.3)	(0.3)
Closing balance	12.0	2.9	14.9	10.7	3.6	14.3

During the year the Company sold the majority of its holding in Velocity1 Limited, retaining a 10% equity stake and a loan of £1.3m. This loan is repayable in November 2016.

During the prior year, the Group granted two unsecured loans totalling £10.7m to an associate, Albemarle Retail Properties LLP, which carry a coupon of 10% per annum and the principal of which will be repaid together with an additional rolled-up coupon of 10% out of the proceeds from the sale of the associate's properties. The receivables are shown in the Balance Sheet at amortised cost. During the year the Group received interest of £1.1m (2011: £0.1m).

Section 6: Funding

6.1 Bank loans and other borrowings

		2012 £m	2011 £m
Current liabilities:
Bank loans		76.1	1.7
10% First Mortgage Debenture Stock 2011 (secured)		-	2.0
		76.1	3.7
Non-current liabilities		464.2	432.7
		540.3	436.4
Non-current liabilities:
Bank loans		466.4	436.2
Amortised borrowing costs		(2.2)	(3.5)
		464.2	432.7

The loans are secured by floating charges over assets owned by subsidiary undertakings.

The 10% First Mortgage Debenture Stock 2011 issued by Estates Property Investment Company Limited was repaid in the year.

The maturity profile of the Group's debt was as follows:

	2012			2011	2012	2011
			Total debt	Total debt	Undrawn facilities	Undrawn facilities
			£m	£m	£m	£m
Within one year			76.1	3.7	-	25.0
From one to two years			51.0	91.7	30.0	18.9
From two to five years			413.7	342.7	46.5	146.6
After five years			1.7	1.8	-	-
			542.5	439.9	76.5	190.5

During the year the Group has negotiated an extension to the maturity of £60m of its loan facilities from March 2013 to March 2016. The Board have judged this to be a continuation of the previous arrangement as the revised terms of the debt are not considered substantially different to the original terms. Subsequent to the year end, the Group has extended £20m of debt to 2016 and the total of undrawn facilities has reduced by £5m.

The interest rate profile of the Group's debt before interest rate swap arrangements at the balance sheet date was as follows:

Percent		2012 £m	2011 £m
1.0 - 2.0		74.4	90.0
2.0 - 3.0		425.8	299.8
3.0 - 4.0		12.6	14.6
4.0 - 5.0		1.7	5.5
5.0 - 6.0		28.0	28.0
9.0 -10.0		-	2.0
		542.5	439.9

After taking account of interest rate swap arrangements, the risk profile of the Group's borrowings was as follows:

	2012				2011
	Fixed	Capped	Total debt		Fixed	Capped	Total debt
	£m	£m	£m		£m	£m	£m
Sterling	328.0	214.5	542.5		335.5	104.4	439.9

The weighted average interest rate and the weighted average period of the Group's fixed rate debt were as follows:

	2012 %	2011 %	2012 years	2011 years
Sterling	3.59	4.55	2	2

The maturity profile of the Group's share of debt held within its joint ventures was as follows:

		2012 £m	2011 £m
From one to two years		32.4	67.3
From two to five years		82.5	30.0
		114.9	97.3

6.2 Share Capital

		Number of shares m	Nominal value £m
Allotted, called up and fully paid:
In issue as at 31 March 2010		520.5	130.1
Issue of shares under share-based payment schemes at 25p per share		0.2	0.1
In issue as at 31 March 2011		520.7	130.2
Issue of shares under share-based payment schemes at 25p per share		0.2	-
In issue as at 31 March 2012		520.9	130.2

As at 31 March 2012, share capital included 2.5m (2011: 2.8m) shares held by ESOP Trusts. These shares had a nominal value of £0.6m (2011: £0.7m).

The movement in the year in the number and weighted average exercise price of outstanding options was as follows:

		2012		2011
	Number of shares	Weighted average exercise price	Number of shares	Weighted average exercise price
	m	pence	m	pence
In issue as at 1 April	3.6	14.2	6.0	37.1
Issue of new options	6.2	26.0	-	-
Options exercised	(0.2)	24.0	(0.2)	25.0
Distribution under share-based
payment scheme (deferred bonus)	(0.3)	-	-	-
Options lapsed	(1.9)	11.0	(2.2)	75.0
In issue as at 31 March	7.4	24.0	3.6	14.2

The weighted average share price at the date of exercise for share options exercised during the year was 49p (2011: 25p). The options outstanding as at 31 March 2012 had a weighted average remaining contingent life of 3.7 years (2011: 2.2 years). Details of the Group's share-based payment schemes are disclosed in the Remuneration Report.

Financial Statements 

The information set out above does not constitute statutory accounts for the year ended 31 March 2012 or 2011 but is derived from those accounts. Statutory accounts for 2011 have been delivered to the Registrar of Companies and those for 2012 will be delivered following the Company's annual general meeting and will be made available on the Company's website, www.quintain.co.uk. The accounts have been prepared on a going concern basis which the directors consider appropriate. The auditors have reported on the 2011 and 2012 accounts, their reports were unqualified and did not contain statements under section 498 (1) or (2) of the Companies Act 2006.

 

END

 

 

FR PGUWPAUPPPPW