Half Yearly Report

RNS Number : 9288S

Quintain Estates & Development PLC

29 November 2011

 



29 November 2011

Quintain Estates and Development plc

('Quintain'/'Company'/'Group')

Half Yearly results for the six months ended 30 September 2011

QUINTAIN DELIVERS PROFIT AS IT MAKES FURTHER

SOLID PROGRESS AGAINST ITS BUSINESS PLAN

Quintain Estates and Development plc today announces its half year results for the six months ended 30 September 2011.

Key points

·     Steady progress made towards the delivery of the 2013 business plan:

o  Financial position strengthened further with £85m of debt extended during the period; £353m out of a total target of £400m of debt now extended out to 2016

o  £110m of sales agreed to reduce forecast gearing

o  Steps taken to deliver a positive operating cashflow by 1 April 2012

Results

·     Profit before tax £3.7m (2010: loss of £58.8m)

·     Property valuation up 0.8% or £8.2m on a like for like basis

·     Basic Net Asset Value per share 116p (2010: 112p)

·     Earnings per share 0.8p (2010: loss of 8.7p)

Urban Regeneration

·     Disposal of student accommodation scheme at Wembley for a total consideration of £54.5m representing a 6.9% premium to March valuation and £8.0m profit over budgeted cost. Post period end, disposal of the Plaza Hotel for £15m, delivering a profit against book cost of £3.5m

·     Good lettings progress at London Designer Outlet:

o  39.0% of base rent exchanged or in solicitors' hands

o  Anchor tenants confirmed as GAP and Nike

·     Planning consent granted for 1.7m sq ft of development on North West Lands at Wembley

·     Moving forward at Greenwich with the delivery of 1,300 homes at an expected 25% affordable housing quota

Fund Management

·     Sale of Dashwood Studios, student accommodation for £34.0m, delivering a profit on cost of £3.0m

·     iQ delivered valuation surplus of £6.9m due to a 4.3% increase in rents. 4,510 bed spaces over 99% let for the 2011/2012 academic year

Adrian Wyatt, Chief Executive of Quintain, said:

"The steady progress and solid results achieved during the period demonstrate that value can be unlocked through our activities even in a difficult operating environment. A marked improvement in market conditions is unlikely during the second half. However, with London proving more resilient than the rest of the UK, a diversified specialist asset base and an increasingly strong balance sheet, we remain confident in our ability to create value."

Conference call and meeting

A meeting for analysts and institutional investors will take place today at 09.00 at FTI Consulting, 26 Southampton Buildings, London WC2A 1PB. The meeting can also be accessed via a conference call dial in facility, using the following details:

Title:                                                     Quintain Half Year Results

Dial in number:                                      [phone]                                 

In addition, an audio webcast will, be made available on the Company's website, www.quintain.co.uk   following the meeting.

For further information, please contact:

Quintain Estates and Development plc Rebecca Worthington/Cressida Curtis Tel: [phone]

FTI Consulting John Waples/Dido Laurimore/Toyah Simpson Tel: [phone]

Financial Highlights

Income Statement	Half year to 30 Sept 2011 £m	Half year to 30 Sept 2010 £m	Year to  31 March 2011 £m
Net income	15.2	14.1	26.6
Profit/(loss) before tax	3.7	(58.8)	(48.1)
Earnings and Dividends	pence	pence	pence
Basis earnings/(loss) per share	0.8	(8.7)	(6.7)
Diluted EPRA earnings/(loss) per share	0.9	(0.5)	1.2
Balance Sheet	At 30 Sept 2011 £m	At 30 Sept 2010 £m	At 31 March 2011 £m
Urban Regeneration assets	839.5	769.8	783.3
Fund Management assets	302.0	220.2	246.5
Net borrowings	533.7	408.3	420.1
Net assets	602.5	578.6	598.6
Bank gearing	79%	60%	60%
Net Asset Values	pence	pence	pence
Diluted EPRA net assets per share	126	120	125

Chief Executive's Review

Steady progress has been delivered by Quintain during the period under review. Our focused activity is unlocking value in key components of the regeneration portfolio, our management of assets in specialist sectors is delivering growth and we are continuing to strengthen the financial position of the Group.

The wider economic environment remained volatile during the period. We are realistic about the obstacles that further deterioration in economic conditions will present and are managing the business with the primary objective of improving the Group's balance sheet further whilst delivering the 2013 business plan.

Strategic Context

Our core regeneration market of London is proving to be more robust than the rest of the UK. House prices, in particular, have remained steady in the Capital, showing a marginal rise during the six months under review with overseas investors continuing to view London as a safe haven for their capital. While there is much work to be done over the next few years to unlock the exceptional potential within our schemes at Wembley and Greenwich, this positive context endorses the positioning of the Group's regeneration strategy.

Similarly, the niche asset classes in which our fund management team operates have proven their resilience, based on their underlying fundamentals. The increasing need for specialist healthcare in the UK; the requirement for universities to deliver a high quality experience to the fee-paying student; the focus of Government on innovation and science as drivers for economic growth: all these contribute to the strength of the platform on which our fund management business is built.

Results

Despite the increasingly challenging economic environment during the period, Quintain returned a profit before tax of £3.7m, which compares favourably with the loss of £58.8m for the same period in 2010. This reflects a small revaluation surplus over the six months, in contrast to a substantial write down in the same period last year. However, we expect economic conditions in the near term to remain difficult and value to come from management activity rather than the influence of the wider market.

Finance

We remain vigilant in respect of our financing. In May we set a target to extend the maturity of £400m of the Group's facilities to 2016 and are pleased to have delivered so far on 88% of this target. Negotiations regarding the remaining £47m are ongoing, although deterioration in the banking markets makes the timing of this delivery uncertain. As anticipated, gearing rose during the period, standing at 79% on 30 September 2011 (March 2011: 60%) against covenants of 110%. This will increase slightly over the second half of the financial year, before being reduced during 2012 on receipt of payments due on forward sales.

Our strategy in the medium term is to operate comfortably with a markedly lower level of corporate debt. A substantial reduction in forecast borrowing is being achieved through the disposals programme which, over the last three years, has already unlocked £384.4m of capital, including £109.9m of sales agreed in the current financial year. Over the next 24 months we will reduce our forecast gearing levels further and then maintain operations at a new lower level of borrowing.

With respect to our objective of cash neutrality by 1 April 2012, we continue to reduce the cost base. Since 1 April 2008 we have implemented savings of £7.4m, or 26% in administration costs. During the period under review, we embedded significant further efficiencies and this will be extended during the second half to a total of £2.0m of annualised savings. Our rental income for the period remained broadly flat against the same period in 2010 at £18.4m (2010: £18.5m). This will be enhanced in the second half by the increased rent roll of the enlarged iQ portfolio.

Delivery

Good progress has been made towards the achievement of our stretching operational milestones. In particular during the financial year to date:

·    contracts have been exchanged on the disposal of £69.5m of assets at Wembley, against this year's target of £100m

·    at Wembley, we are pleased to have finalised the planning consent and Section 106 agreement on the North West Lands, including a notably low quota of affordable housing. This will unlock the next phase of the scheme and extends the amount of development for which we have consent at Wembley to 8m sq ft, while retaining control over the timing of delivery;

·    at Greenwich Peninsula, we have made substantial progress, agreeing improved terms regarding the quantum of affordable housing in the next stage of development, which will unlock and accelerate residential development on the scheme;

·    assets under management have now grown 40% in eighteen months, standing at £1.39bn at 30 September 2011 (March 2011: £1.27bn)

·    the addition of 257 new beds in Hoxton and occupancy of the enlarged iQ portfolio for this academic year at more than 99% will contribute to increasing the income stream from Fund Management.

People

We were delighted to welcome Max James to the Board of Directors in July. Max's appointment has enhanced the breadth and depth of skills at the top of the Company and his business relationships and insight into financial markets are of particular benefit in the current economic conditions.

At the Annual General Meeting in September Chris Bell was appointed Chair of the Remuneration Committee, replacing Martin Meech.

Outlook

The steady progress and solid results achieved during the period demonstrate that value can be unlocked through our activities even in a difficult operating environment. A marked improvement in market conditions is unlikely during the second half. However, with London proving more resilient than the rest of the UK, a diversified specialist asset base and an increasingly strong balance sheet, we remain confident in our ability to create value.

Adrian Wyatt

Chief Executive

29 November 2011

Business Review

London Urban Regeneration

Of the Group's gross assets, £782.6m, or 65%, are within Urban Regeneration schemes in London.

Wembley

Milestone	Progress
Release £100m of capital	Contracts exchanged on £69.5m of disposals
Finalise planning at the North West Lands	Achieved
Fund and start building the London Designer Outlet	Groundworks underway
Increase profit and income contribution	14% increase in underlying profit

During the period, our investment in Wembley increased from £485.5m at 31 March 2011 to £528.7m, predominantly due to expenditure on the construction of the student accommodation and Hilton Hotel.

Western Core

Operationally, our primary focus at Wembley is on the completion by October 2013 of the 1.7m sq ft Western Core, which is located adjacent to the National Stadium and the new Brent Civic Centre.

Construction is entering the fit-out phase on the 660-bedroom student accommodation scheme, in preparation for its opening in September 2012. In June, a 251-year lease on the site was sold to Keystone & Partners Real Estate for £14.5m, with the Company also signing a development agreement that will trigger a further £38.5m payment to Quintain with both amounts receivable on practical completion next summer. The total proceeds of £54.5m, which includes £1.5m for five homes within the building, represents a 6.9% premium to the March valuation and a surplus of approximately £8.0m over budgeted cost.

Alongside the Keystone scheme, the 361-room Hilton Hotel is on schedule for completion prior to the Olympics next summer. The hotel will be a 4-star facility offering conference and banqueting facilities as well as a gym and "Skybar" overlooking the Stadium and Arena Square.

Marketing of space within the London Designer Outlet ("LDO") continues to yield positive results. To date, contracts regarding 39% of the base rent have been exchanged or are in solicitors' hands (March 2011: 21%) and negotiations are advanced on a further 6% of rental income.

Following the successful leasing of the food and beverage units, the focus during the period has been on lettings to anchor retail brands and Nike and GAP are now both confirmed as anchor tenants. Negotiations with Marks & Spencer for the biggest unit within the scheme are advanced and, with 45% of the scheme now allocated, we are entering the next phase of pre-leasing, with an emphasis on designer, fashion and lifestyle brands.

As discussed at our full year results in May, a deal with a potential funding partner to build the LDO was in advanced negotiation. However, our counterparty was unable to deliver part of the proposed financing structure so we have now terminated the exclusivity period. With the strengthened rent roll we will launch formal marketing of the scheme in the New Year and are now undertaking groundworks on the site, targeting a completion date in the autumn of 2013.

North West Lands

As the Western Core reaches critical mass, Quintain's development focus will move to the North West Lands. This 14 acre site will border Brent's new Civic Centre and link the Western Core to Wembley Park Underground Station to the north of the scheme.

In May, we secured a Resolution to Grant planning consent from London Borough of Brent for 1.7m sq ft of mixed-use development on this site. Following the period end, this Resolution was approved by the Mayor of London and we have now signed the Section 106 agreement with the Council, thereby concluding the planning process for the site.

The agreed provision of 10% affordable housing compares favourably with the 38% agreed on stage one of Wembley City in 2004. We have also agreed mechanisms that give Quintain control over the mix of uses and affordable housing types, as well as the timing of delivery, thereby allowing us to respond appropriately as market conditions change.

London Borough of Brent continues to make progress with the construction of the new Civic Centre, adjacent to Wembley Arena and Square. This 300,000 sq ft facility will anchor the southern end of the North West Lands and provide a focal point for subsequent residential and retail development. The Council plans to open the building in the summer of 2013, which will immediately deliver substantially increased day-long animation, with an estimated 1 million additional people a year visiting the scheme.

To the west of the Civic Centre site, we are preparing for the London Organising Committee of the Olympic Games ("LOCOG") to take temporary possession of 115,000 sq ft of our site from 3 January 2012. Both the Arena and Stadium will host a series of events during the Games next summer with an estimated 1 million ticket-holders attending. This is an excellent opportunity to profile the convenience of Wembley to Central London and we are working closely with LOCOG to ensure that the experience of all visitors will be convenient and easy, and that the investment made in the site by LOCOG will have a long term legacy benefit for the wider community.

Wider Estate

To the west of our holdings, a change of use to Open A1 was secured on the Eastern Terrace of the 213,000 sq ft Wembley Retail Park. This planning consent was sought in order to reconfigure and revitalise the income-producing asset in line with the wider retail strategy for Wembley and in support of Quintain's focus on achieving cash-neutrality.

Greenwich Peninsula

Milestone	Progress
Accelerate residential development	Stakeholder agreement regarding reduced level of affordable housing
Secure inward investment	Discussions regarding plot sales
Attract new office and retail occupiers	10,500 sq ft lease to i2 Offices
Build Greenwich Peninsula's sense of place	Visitor centre opening 2012

The valuation of our assets at Greenwich increased during the period by 3%, with property assets of £253.9m. This was largely due to residential land prices benefiting from a small improvement in underlying spot values.

Peninsula Quays

Following the agreement with our partner Lend Lease to develop residential buildings independently, Quintain's focus is on the progression of two residential plots at Peninsula Quays, overlooking Canary Wharf, as well as introducing third party capital to the scheme.

Since the original outline planning consent for Greenwich Peninsula was secured in 2004, market conditions have changed substantially. In recognition of this, and following extensive collaboration with our stakeholders, we are now confident that we can move forward with the delivery of the next 1,300 homes with affordable housing provision of 25%, rather than the 38% originally imposed. This includes approximately 500 homes to be built by Quintain at Peninsula Quays.

During the period we also conducted an in-depth review of the masterplan for Peninsula Quays in order to ensure maximum value across the 3,000-home site. Detailed planning applications are now being compiled regarding the first two blocks. We expect to submit these next summer and start construction after the Olympics, with the first occupants moving into Peninsula Quays in the spring of 2014.

Peninsula Central

The commercial market remains slow, with aggressive bidding for the few opportunities available in London. Capitalising on the introduction of Ravensbourne College to the scheme last year, we are now investigating potential plot sales to develop student accommodation on the Peninsula. It is hoped that the first facility could be in operation in time for the September 2013 academic year, with up to 1,000 beds in place by September 2014. Initial indications are that the location would be very attractive to student accommodation operators and, with flexibility over the size of any scheme, conditions are believed to be favourable.

We were pleased to let 10,500 sq ft of Mitre Passage to i2 Offices in September and will continue to work with Lend Lease to secure further lettings in this building.

In anticipation of substantially increased footfall over the period of the Olympics next year, for which The O2 will host gymnastics and basketball, a planning application for a new visitor centre to showcase the scheme was submitted after the period end.

Construction of the cable car is underway on the site. In addition to the ability to transport 2,500 people an hour from the Excel Centre, the cable car will introduce a new station in London called "Emirates Greenwich Peninsula" which will appear on the Tube Map and act as an excellent locator for the scheme. The iconic structure will be unique in London and is expected to generate more footfall to the Peninsula as well as increasing further the accessibility and range of transport options.

South

The plot sold to Bellway at the south of the Peninsula is now complete and occupied, with an average price achieved of £478 per square foot. Bellway cited its Greenwich Peninsula building as one in particular that was attracting purchasers from the Far East who are happy to buy off plan. Bellway has now made an offer on a second plot, which is under consideration.

Fund Management

Milestone	Progress
Grow Funds Under Management to £1.5bn	Funds under management of £1.39bn at 30 September
Secure £40-50m third party investment	Sale of Wembley student releases >£50m
Increase income and profit contribution	Strong contribution to income from iQ, but commensurate impact by Quercus
Create a new fund / secure residential partners for Wembley and Greenwich	Actively engaged in discussions with potential partners

£302.0m of the Group's property assets are within Fund Management. There was a contribution to Group profits of £11.3m from fund management activities during the period.

We are pleased to report that the level of assets under management by Quintain has risen over the period by 9% to £1.39bn. The increase mainly reflects purchases by Quercus and the opening of the new iQ Hoxton scheme in London.

Higher Education

The purpose-built student accommodation market in the UK continues to demonstrate strong fundamentals, with solid investor demand for assets in key university cities and high levels of occupancy at the start of the academic year.

As anticipated, demand for university places has been higher than the previous year, with a 1.2% increase in the total number of applicants and a 2.1% increase in the total number of students receiving a place. This strong demand has put further pressure on the limited number of rooms suitable for student accommodation, ensuring high occupancy and increased levels of rent for operators.

iQ Property Partnership

Since its inception in 2006, our 50/50 joint venture with Wellcome Trust has grown to become a top ten student accommodation provider in the UK, with 4,510 rooms now operational.

iQ's total property assets increased over the period by 6%, reflecting the higher rents being achieved, continued demand for assets and the addition of a 12^th building to the operational portfolio. The net initial yield remained unchanged at 6.6%. At 30 September 2011 the loan to value ratio of the operational portfolio stood at 51% against a covenant of 65%, with interest cover at 1.62 versus a covenant of 1.25.

One new scheme opened during the period on a site purchased with planning in December 2009. This building, which is located in Hoxton, central London, has 257 bedrooms and is fully let for the current academic year at rental levels higher than projected.

This strong performance is reflected to some extent across the portfolio which has seen a 4.3% increase in average base rents year on year.

Although a spike had been anticipated in advance of student fee increases, we are delighted with the strength of our occupancy figures this year. At over 99% (2010: 97%), the portfolio is effectively fully let.

The construction of the 673-bedroom iQ Shoreditch scheme (formerly Corsham St) in central London continues on schedule. The marketing suite and three show studios will open in December and focus groups with students regarding the design of the common and social spaces have been completed. Designs are being finalised and the scheme is moving into the fit-out stage in preparation for opening in time for the September 2012 academic year.

It is anticipated that demand for university places for the 2012/13 academic year may be lower due to the "pull forward" of applications this year, and as some potential students re-evaluate the benefit of a university education in light of increased tuition fees. However, with 28.5% of applicants in 2011 failing to secure a university place, there is some distance for numbers to fall before we see a reduction in the actual number of students accepted into higher education. With iQ Shoreditch opening in September 2012, and further rent increases anticipated, we expect to see another strong increase in the iQ rent roll this time next year.

Additional Activity

Wembley Scheme

As reported above, in June we announced the forward sale to Keystone of our student accommodation scheme at Wembley, which is presently under construction. This 660-bed building is located adjacent to Wembley Arena and Stadium. It will open in time for the 2012/13 academic year, operated by Quintain under a facilities management agreement. The sale was achieved at a premium to the March valuation and an £8.0m profit over budgeted cost.

Dashwood Studios, London

The construction and leasing of Dashwood Studios was completed on schedule, delivering 232 fully let bedrooms to the market in time for the start of the 2011/12 academic year. After the period end we announced the sale of this new scheme to a client of Rockspring Property Investment Managers for £34.0m. The price compares favourably with the 31 March 2011 valuation of £14.7m and subsequent construction expenditure of £17.2m. The sale of this asset delivered a profit on cost of £3.0m.

Both sales reflect Quintain's renewed focus on the reduction of forecast gearing levels.

Healthcare

The healthcare market remains an attractive long-term investment proposition, given the demographics of an ageing UK population and the demand for specialist care we envisage this must create. The fundamentals underpinning the sector remain strong, with the number of people aged 85 or over projected to increase five-fold over the next 70 years. At present, 15.3% of people aged over 85 require full time care.

However, while demand is expected to continue to increase for some time, supply has been more than keeping pace, with a net fall in occupancy recorded by Laing & Buisson this year and the private sector becoming increasingly important. As anticipated, cuts in public spending, which have reduced the amount local authorities are willing to pay for residential care, together with the rising cost of wage inflation and utilities, have hit the sector hard. We expect the near future to remain difficult for operators in this sector, with further tightening of margins, councils imposing a freeze or reduction on the amount they will pay for places and the Government promoting home-based care services.

Quercus

The Quercus Healthcare Fund ("the Fund") was established by Quintain and Aviva in 1998. At 30 September 2011 the gross asset value of the Fund was £812.8m and the net initial yield was 7.2%.

In addition to generating fees from asset management and procurement, Quintain holds an 11.2% interest in the Fund, earning a share of the Fund's profits. Compared with 2010, fees were broadly level, with the increased size of the Fund offsetting a reduction in procurement fees. However, due largely to the reduction in Quintain's holding from 13.3% at 30 September 2010 from the sale of units through the secondary market, total income to Quintain reduced from £3.5m in the six months to September 2010 to £2.7m in the period under review.

As expected, tenants have continued to come under pressure during the period. The most notable example is Southern Cross, to which Quercus had a small exposure of eight homes within the portfolio of 262. These homes were re-registered with the relevant authorities and placed with alternative Quercus operators after the period end with no break in the services offered to residents.

Distress has not been limited to Southern Cross: to date there have been six administrations across the portfolio. The asset management team continues to manage operators closely to enable emerging issues to be identified and managed-out effectively, ensuring wherever possible the continuing operation of the homes in question with minimal disruption to residents.

Across the rest of the Quercus portfolio, rental collection remains high, with 91% of rent demanded paid within 20 days of falling due, which is consistent with the same period last year. It should also be noted that providers with facilities in Wales and Scotland, where Quercus has good representation, have fared better, with some authorities increasing the amount they pay.

Equally important are recent actions taken to introduce further diversification to the Fund during this turbulent period. Of the 24 assets acquired during the period, seven, representing £34.2m of the £83.5m capital outlay, are facilities supporting young adults with a broad range of conditions that require specialist care. These homes have been leased to Exemplar Health Care Group, which has been an operator within the Quercus portfolio since 2001 and is a market leader in this form of care.

Exemplar makes its rental payments monthly in advance and operates a flexible model that provides primary care trusts with an attractive and cost-effective alternative for adults who may otherwise have to be kept in acute hospitals or secure units.  This acquisition represents a useful diversification for Quercus away from elderly care and thereby enhances the Fund's portfolio during a challenging time for elderly care home operators.

We expect operators to remain under pressure in the near future. However, with careful management, continual monitoring and support for operators, the impact of these challenges will be effectively managed. Following the negative impact of the past year, we believe that the position has now broadly stabilised. We anticipate some improvement in the sector during the following financial year, albeit gradual, given the general public sector funding environment.

Science Parks

The Government's focus on the development of the UK's knowledge economy underpins our interest in the science park sector. Our vehicle in this area is Quantum, a 50/50 joint venture with Aviva Investors, within which the main asset is the Bristol & Bath Science Park.

Bristol & Bath Science Park

We were delighted that Rt Hon David Willetts MP, Minister of State for Universities and Science, opened the Bristol & Bath Science Park during the period. He recognised the opportunity for the Park to "become a key driver of growth and innovation" in the south west.

The Bristol & Bath Science Park is strategically located close to the M4 and Bristol's railway network, offering easy access to international transport hubs as well as the three universities in the region. A world class environment that provides the space, flexibility and support for science and technology businesses to accelerate their growth and success, the Park is located on a 59 acre site at Emersons Green. The new building consists of three elements: the 30,000 sq ft Innovation Centre; the 30,000 sq ft Grow-On Centre; and the spectacular 11,000 sq ft Forum, which provides an excellent environment for creative thinking and conversation.

The Park specifically seeks to support the commercialisation of innovation, bringing together academia, enterprise and funding to help businesses transform concepts into commercial products. The partnership of the Universities of Bath, Bristol and the West of England alongside the support of our landowner, the Homes and Communities Agency, extends the reach of the Park substantially both within the UK and overseas.

On opening, 33% of seats within the Innovation Centre, which provides fully flexible space, were let and the high profile launch has attracted further interest for both space within the Centre and standalone facilities elsewhere on the Park.

The second building on the Park, the National Composites Centre, was completed in July. It is anticipated that more than 250 people will be located in this facility, which is supported by leading aerospace, engineering and environmental firms.

Secondary Property

The UK's secondary property market continues to experience declining capital values and limited rental growth, as forecast at the year end.

Quintain mainly manages secondary assets through the SeQuel Fund and Albemarle Retail Properties LLP. Albemarle comprises 105 high street retail units valued as at 30 September 2011 at £72.6m. Quintain invested £10.7m in the portfolio in February 2011, securing a 28% shareholding. The investment structure provides an annual 10% paid coupon on Quintain's equity and a priority deferred annual 10% coupon over three years. Quintain has representation in Albemarle's management structure and is the largest single shareholder in the vehicle.

SeQuel is a predominantly regional commercial portfolio valued at £75.1m at 30 September 2011. The income stream from the portfolio totals £7.9m against an ERV of £8.8m.

New leases worth £0.3m were signed during the period with £1.0m of leases renewed. There was also one disposal, with 140 Cambridge Science Park being sold to Mayfair Capital Unit Trust for £6.4m, reflecting a net initial yield of 7.8%.

Finance Review

Good progress has been made during the period under review regarding our two financial milestones. These are to extend the debt maturity profile of the Group and to achieve a positive operating cashflow.

Income statement and earnings per share

The profit before tax of £3.7m contrasts positively with the £58.8m loss for the corresponding period last year. This £62.5m increase is due to several factors: a £1.6m revaluation surplus during the period, compared with the write down for the same period last year of £63.6m; an improvement in the underlying performance of our property portfolio of £1.2m; and an increased contribution from our joint venture investments of £1.4m. This improvement in the core operation was offset by a £1.2m loss on sales and an impairment provision of £1.2m associated with our residential development in Middlehaven. This scheme will shortly reach practical completion but a cautious view on the expected out turn has been taken.

These factors combined to enable the Group to report earnings per share of 0.8 pence for the period. 

Results of Joint Ventures

The Group's investment in its joint ventures increased during the six months by £50.0m to £267.0m. This reflected an increase in valuation of £6.7m and an investment of £45.1m during the period. £36.1m of this was spent on funding the development of iQ Shoreditch through a loan to the iQ scheme. We expect this funding to be repaid when iQ refinances this property.

At an operational level, the joint ventures made a profit after interest of £1.7m in contrast to a loss of £0.1m during the same period last year. This principally reflects the loss of £2.5m incurred in the prior year due to the cancellation of a swap on the sale of 14 Pier Walk. The balance relates to Quercus and reflects a slightly lower return on the units in the period and the impact of reducing our holding from 13.3% to 11.2%.

Finance Expenses

Interest payable fell by £1.5m to £9.4m, with higher debt levels being more than offset by the lower average cost of debt of 3.2% (September 2010: 4.7%). Overall net finance costs fell by £0.8m to £6.0m after allowing for the financial instrument movements of £6.1m (September 2010: £3.0m) and interest receivable of £3.3m (September 2010: £1.5m), the increase in the latter predominantly comprising interest on our investment in Albemarle and interest received on the loan to iQ Shoreditch.

Valuation

The valuation of the Group's properties as at 30 September 2011, including our share of gross assets in joint ventures and associates, was £1,132.6m. This shows an increase of 0.8%, or £8.2m on a like for like basis, net of capital expenditure, since 31 March 2011.

This improvement in the valuation of the Group's investments is due to the following underlying trends:

·    Residential land prices at Greenwich benefited from a small improvement in underlying spot values leading to a £7.4m (3%) increase in the value of our Urban Regeneration investment holding. Our investment in Wembley was virtually unchanged with a small decrease of £1.1m in the valuation.

·    The iQ student fund, in which Quintain has a 50% stake, provided a valuation surplus for the Group of £6.9m, or 4.4%, due to an increase in rents of 4.3% and 99% occupancy.

·    Despite the difficulties within the healthcare market, there has been an orderly transfer of the Southern Cross portfolio to new operators and valuations have remained consistent at a circa 7% net initial yield.

·    There was a small reduction in the value of SeQuel with a fall in value of £2.6m (3.3%).

Capital Commitments

The table below sets out Quintain's contractual commitments including its share of any commitments within joint ventures.

	30 September 2011
	£m
Direct Investment Wembley Other Joint Venture Investment	52.0 1.2
iQ (Corsham Street)	24.8
Greenwich	1.0
Other	0.1
Total	79.1

These commitments are in part offset by the sales of two student accommodation developments: Dashwood Studios at Elephant and Castle which was sold for £34.0m; and part of W05 in Wembley on which contracts have been exchanged for £54.5m.

Cashflow

The cash profit generated from operations before working capital movements amounted to £4.5m. This was offset by net interest payments of £8.4m leading to an operational cash deficit of £3.9m.

Quintain continued its investment in its underlying activities during the period. £54.2m was spent on the existing development pipeline and, as referred to above, £45.1m was invested in joint ventures. £12.4m was spent on re-pricing existing swaps from 4.97% to 1.9%. These movements led to a total additional drawdown of funding from our bank facilities of £96.4m.

Risk Management

During the period, following a formal tender process, Quintain appointed PWC as its new internal auditors. Whilst the underlying processes for reviewing and escalating risk within the business remain unchanged, this appointment has led to a review of all potential areas of risk, the result of which has been used to create a new internal audit plan.

The core risks to the business remain economic risk, in relation to real estate valuations, and treasury risks, in relation to banking facilities. The treasury position is set out in a separate note below.

Financing strategy and capital structure

Our financing strategy seeks to balance the risks to the business of debt with the higher medium returns on equity. The level of gearing, being the proportion of debt compared with equity, will vary over time depending on the profile of operational risks, the capital that is currently committed, or expected to be committed in the future, and the cyclical high or low of property valuations.

Our financing structure needs to be flexible and cost effective. This is achieved through securing funding at the corporate level, giving us the scope to fund efficiently all areas of the portfolio which otherwise would be more challenging, such as infrastructure works at Wembley and Greenwich. It also provides us with liquidity and operational flexibility.

In the expectation that debt markets will remain challenging for some time, we are pro-actively managing maturities. To date we have extended, either fully or through a series of options, £353m of debt (net) to 2016. £85m of this was achieved during the period under review, with the Co-operative Bank extending the maturity on £25m and Barclays lengthening the maturity and increasing their facility to £50m, extendable to £60m subject to income cover.

Discussions are taking place with other lenders regarding the extension of maturities on a further £47m of facilities.

Debt summary

		Period end 30 Sept	Year end 31 March
	Covenant	2011	2011
Net debt		£533.7m	£420.1m
Weighted average debt maturity¹		3.6yrs	2.8 yrs
Weighted average interest rate		3.2%	4.5%
% of debt at fixed interest rates		62%	78%
Interest cover²	1.25x	1.9x	1.9x
Gearing³	110%	79%	60%
Undrawn committed facilities		£82.5m	£190.5m

¹Assumes that Quintain exercises options to extend Lloyds and HSBC facilities to 2016, which reduces the facilities available by £40m in both 2012 and 2013.

²Interest cover, per our banking covenants, is defined as operating profit before net finance expenses plus realised surpluses on disposals divided by net finance costs excluding mark to market adjustments.

^³Gearing, per our banking covenants, is defined as the ratio of net borrowings of the Company and its wholly owned subsidiaries to equity.

				Period end 30  September 2011
			Quercus	iQ	SeQuel1
Joint ventures:
Net debt			£35.9m	£65.9m	£39.5m
Weighted average debt maturity			2.5yrs	0.7yrs	3.1yrs
Weighted average interest rate			4.3%	7.8%	4.9%
% of debt at fixed/capped interest rates			82%	134%	67%
Interest cover			2.98x	1.62x	3.27x
Interest cover covenant			1.5x	1.25x	1.75x
Loan to value			43%	51%	56%
LTV covenant Undrawn committed facilities			60% £4.9m	65% £59.0m	75% -

Note: £m numbers are QED share

¹ Included in the Group debt analysis

With regard to iQ, we have secured credit approval to replace part of the expiring facilities and are in negotiation in relation to the remainder.

Hedging

During the period, we reset £150m of 5% 2014 swaps to the market price of 1.9%. The £12.4m net present value will be excluded from the interest charge in calculating the interest cover ratio. This brings the average rate of the £300m of swaps to 1.8%.

Financial Outlook

Our focus remains on increasing operating profits and extending our debt maturities. Although market conditions have become more challenging over the period, we have made good progress with both objectives and we are pleased with the achievements to date. Our disposals programme will continue for the next 24 months, reinforcing the Group's position through the progressive reduction of forecast debt levels and providing capital to support the delivery of the next phase of the business plan.

Responsibility Statement of the directors

in respect of the half-yearly financial report

We confirm that to the best of our knowledge:

The condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

The interim management report includes a fair review of the information required by:

(a)   DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(b)   DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

On behalf of the Board

Adrian Wyatt                                                                       Rebecca Worthington

Chief Executive                                                                      Finance Director

29 November 2011                                                                29 November 2011

Forward looking statements

This document contains certain "forward-looking" statements reflecting, amongst other things, current views on our markets, activities and prospects.  By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur and which may be beyond Quintain Estates and Development's ability to control or predict (such as changing political, economic or market circumstances).  Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements.  Any forward-looking statements made by or on behalf of Quintain Estates and Development speak only as of the date on which they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Except to the extent required by law, Quintain Estates and Development does not undertake to update or revise forward-looking statements to reflect any changes in Quintain Estates and Development's expectations with regard thereto or any changes in information, events, conditions or circumstances on which any such statement is based.

Independent review report to Quintain Estates and Development plc

Introduction

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2011 which comprises the Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Changes in Equity and Consolidated Cashflow Statement and the related explanatory notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with the terms of our engagement to assist the company in meeting the requirements of the Disclosure and Transparency Rules ("the DTR") of the UK's Financial Services Authority ("the UK FSA"). Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FSA.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2011 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FSA.

Stephen Bligh

for and on behalf of KPMG Audit Plc

Chartered Accountants

15 Canada Square

London

E14 5GL

29 November 2011

Quintain Estates and Development plc

Consolidated Income Statement          

For the six months ended 30 September 2011

	Notes	Unaudited Six months ended	Unaudited Six months ended	Audited Year ended
		30 Sept 2011	30 Sept 2010	31 March 2011
		£m	£m	£m
Revenue	3	24.2	23.7	46.9
Cost of sales (before impairment in book value of trading properties)	3	(9.0)	(9.6)	(20.3)
Impairment in book value of trading properties	3	(1.2)	(0.1)	(0.4)
Gross profit		14.0	14.0	26.2
Administrative expenses		(10.7)	(10.8)	(20.6)
Operating profit before recognition of results from non-current asset sales and revaluation		3.3	3.2	5.6
(Loss) profit from sale of non-current assets		(1.2)	3.8	2.8
Surplus (deficit) on revaluation of investment properties		1.6	(63.6)	(54.0)
Share of profit from joint ventures	8	6.1	4.7	9.5
Share of loss from associates		(0.1)	(0.1)	(0.1)
Operating profit (loss)		9.7	(52.0)	(36.2)
Interest payable		(3.2)	(5.3)	(10.3)
Change in fair value of derivative financial instruments		(6.1)	(3.0)	(4.7)
Finance income		3.3	1.5	3.1
Net finance expenses	4	(6.0)	(6.8)	(11.9)
Profit (loss) before tax		3.7	(58.8)	(48.1)
Current tax		(0.1)	-	(0.2)
Deferred tax		0.6	13.5	13.6
Tax credit for the period	5	0.5	13.5	13.4
Profit (loss) for the financial period attributed to equity shareholders		4.2	(45.3)	(34.7)
Earnings per share (pence):
Basic and diluted		0.8	(8.7)	(6.7)

Consolidated Statement of Other Comprehensive Income

For the six months ended 30 September 2011

	Notes	Unaudited Six months ended		Unaudited Six months ended	Audited Year ended
		30 Sept 2011	30 Sept 2010		31 March 2011
		£m	£m		£m
Foreign currency translation differences		(0.4)	-		(0.1)
Deficit on revaluation of other non-current investments		(0.2)	(0.2)		(0.3)
Effective portion of changes in fair value of cashflow hedges		(5.0)	(5.1)		2.3
Recycling of fair value adjustment on cashflow hedges		4.4	3.0		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	8	0.6	3.0		4.8
Tax on other comprehensive income		0.2	0.6		(2.1)
Other comprehensive income for the financial period, net of tax		(0.4)	1.3		10.3
Profit (loss) for the financial period		4.2	(45.3)		(34.7)
Total comprehensive profit (loss) for the financial period, net of tax		3.8	(44.0)		(24.4)

Consolidated Balance Sheet

As at 30 September 2011

	Notes	Unaudited Six months ended	Unaudited Six months ended	Audited Year ended
		30 Sept 2011	30 Sept 2010	31 March 2011
Non-current assets
Investment properties	7	864.2	776.5	805.6
Owner-occupied properties, plant and equipment		2.3	2.7	2.6
Investment in joint ventures	8	267.0	214.7	217.0
Investment in associates		1.4	1.5	1.5
Other non-current investments		3.4	3.7	3.6
Non-current receivables	9	10.7	-	10.7
Total non-current assets		1,149.0	999.1	1,041.0
Current assets
Trading properties		24.8	26.9	23.9
Trade and other receivables	10	25.0	26.9	19.4
Cash and cash equivalents		3.9	20.0	19.8
Total current assets		53.7	73.8	63.1
Total assets		1,202.7	1,072.9	1,104.1
Current liabilities
Bank loans and other borrowings	12	(1.7)	(3.7)	(3.7)
Trade and other payables	11	(38.2)	(33.1)	(36.5)
Current tax liability		(1.3)	(1.0)	(1.2)
Total current liabilities		(41.2)	(37.8)	(41.4)
Non-current liabilities
Bank loans and other borrowings	12	(532.6)	(421.0)	(432.7)
Deferred tax liability	5	(11.4)	(9.6)	(12.2)
Obligations under finance leases		(11.1)	(11.1)	(11.1)
Other payables	11	(3.9)	(14.8)	(8.1)
Total non-current liabilities		(559.0)	(456.5)	(464.1)
Total liabilities		(600.2)	(494.3)	(505.5)
Net assets		602.5	578.6	598.6
Equity
Issued capital		130.2	130.1	130.2
Share premium account		137.3	137.2	137.3
Other capital reserves		107.5	108.3	108.1
Cashflow hedge reserve		(28.1)	(37.5)	(28.3)
Retained earnings		264.0	249.8	260.6
Own shares held reserve		(8.7)	(9.6)	(9.6)
Equity shareholders' funds		602.2	578.3	598.3
Non-controlling interest		0.3	0.3	0.3
Total equity		602.5	578.6	598.6
Net asset value per share (pence):	6
Basic		116	112	116
Diluted		116	111	115

Consolidated Statement of Changes in Equity

For the six months ended 30 September 2011

	Issued capital	Share premium account	Other capital reserves	Cashflow hedge reserve	Retained earnings	Own shares held reserve	Equity shareholders' funds	Non-controlling interest	Unaudited 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
Profit for the financial period	-	-	-	-	4.2	-	4.2	-	4.2
Other comprehensive income for the period, net of tax	-	-	(0.6)	0.2	-	-	(0.4)	-	(0.4)
Costs relating to share-based payment schemes	-	-	-	-	0.1	-	0.1	-	0.1
Shares awarded to employees under share based payment schemes	-	-	-	-	(0.9)	0.9	-	-	-
Balance 30 September 2011	130.2	137.3	107.5	(28.1)	264.0	(8.7)	602.2	0.3	602.5

Consolidated Statement of Changes in Equity

For the six months ended 30 September 2010

	Issued capital	Share premium account	Other capital reserves	Cashflow hedge reserve	Retained earnings	Own shares held reserve	Equity shareholders' funds	Non-controlling interest	Unaudited 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 period	-	-	-	-	(45.3)	-	(45.3)	-	(45.3)
Other comprehensive income for the period, net of tax	-	-	(0.2)	1.5	-	-	1.3	-	1.3
Issue of shares less costs	-	(0.1)	-	-	-	-	(0.1)	-	(0.1)
Costs relating to share-based payment schemes	-	-	-	-	0.3	-	0.3	-	0.3
Balance 30 September 2010	130.1	137.2	108.3	(37.5)	249.8	(9.6)	578.3	0.3	578.6

Consolidated Statement of Changes in 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	Audited 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 six months ended 30 September 2011

	Notes	Unaudited Six months ended	Unaudited Six months ended	Audited Year ended
		30 Sept 2011	30 Sept 2010	31 March 2011
		£m	£m	£m
Operating activities
Profit (loss) for the financial period		4.2	(45.3)	(34.7)
Adjustments for:
Depreciation of plant and equipment		0.4	0.4	0.8
Costs relating to share-based payment schemes		0.1	0.3	0.5
Net finance expenses		6.0	6.8	11.9
Recycling of foreign exchange reserves		(0.5)	-	-
Profit (loss) on sale of non-current assets		1.2	(3.8)	(2.8)
(Surplus) deficit on revaluation of investment properties		(1.6)	63.6	54.0
Share of profit from joint ventures		(6.1)	(4.7)	(9.5)
Share of loss from associates		0.1	0.1	0.1
Impairment in book value of trading properties		1.2	0.1	0.4
Tax on continuing operations		(0.5)	(13.5)	(13.4)
		4.5	4.0	7.3
(Increase) decrease in trade and other receivables		(3.8)	3.1	0.7
Increase (decrease) in trade and other payables		3.5	(2.3)	(1.9)
(Increase) decrease in trading properties		(3.1)	0.5	2.2
Cash generated from operations		1.1	5.3	8.3
Interest paid	i	(21.9)	(25.8)	(37.3)
Interest received		1.1	0.4	0.9
Tax paid		-	(0.1)	(0.1)
Net cashflow from operating activities		(19.7)	(20.2)	(28.2)
Investing activities
Proceeds from sale of investment properties		4.7	10.3	34.6
Purchase and development of investment properties		(54.2)	(31.9)	(63.2)
Purchase of owner-occupied properties, plant and equipment		-	(0.3)	(0.7)
Proceeds from sale of interests in joint ventures		-	1.1	15.5
Capital invested in joint venture		-	-	(1.1)
Capital repayments received from joint ventures		-	-	4.0
Loans  advanced to joint ventures		(45.1)	(5.3)	(44.0)
Loans advanced to associate		-	-	(10.7)
Loans repaid by joint ventures		-	-	24.9
VAT payment in relation to investing activities		-	(8.9)	-
Distributions received from joint ventures		2.0	3.3	6.2
Net cashflow from investing activities		(92.6)	(31.7)	(34.5)
Financing activities
Issue of shares		-	-	0.1
Proceeds from new borrowings		160.5	93.5	193.1
Repayment of borrowings		(62.8)	(68.3)	(156.3)
Payment of loan issue costs		(0.9)	(0.1)	(0.8)
Payment of finance lease liabilities		(0.4)	(0.4)	(0.8)
Net cashflow from financing activities		96.4	24.7	35.3
Net decrease in cash and cash equivalents		(15.9)	(27.2)	(27.4)
Cash and cash equivalents at start of period		19.8	47.2	47.2
Cash and cash equivalents at end of period		3.9	20.0	19.8

Notes:

i. In the six months ended 30 September 2011, interest paid included a payment of £12.4m (six months ended 30 September 2010: £14.4m, year ended 31 March 2011: £14.4m) relating to the repricing of the Group's swaps.  

Notes to the accounts

For the six months ended 30 September 2011

1. Accounting policies

The financial information contained in this half year report does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The results for the year ended 31 March 2011 are an abridged version of the full accounts for that year, which received an unqualified report from the auditors, did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 or include a reference to any matter to which the auditors drew attention by way of matter of emphasis without qualifying their report, and have been filed with the Registrar of Companies. The annual financial statements are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this report has been prepared in accordance with IAS 34, 'Interim Financial Reporting', as adopted by the European Union.

Significant accounting policies

The same accounting policies, presentation and key sources of estimation are followed in the condensed set of financial statements as applied to the latest audited annual financial statements.

Judgements and estimates

The preparation of the interim financial statements under IFRS requires the Board to make judgements, estimates and assumptions that affect the application of accounting policies, the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenue and expense 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 the estimates.

In preparing these financial statements the key judgements and estimates made by the Board are the same as those applied in the financial statements as of, and for the year ended, 31 March 2011.

There have been no material changes to reportable contingent liabilities since 31 March 2011 and the Group's financial performance does not suffer materially from seasonal fluctuations.

Going concern

The Group financial statements have been prepared on a going concern basis. This policy, is supported by the detailed cashflow forecasts prepared by the group at 30 September 2011 which show that with the benefit of contractually agreed sales, there are adequate undrawn facilities to finance all committed capital expenditure and other outflows and thus the group will be able to meet its liabilities as they fall due for the foreseeable future.

2. Segmental analysis

The Group has eight reportable segments. The Urban Regeneration (UR) segments include Wembley, Greenwich and Other UR. The Quintain Fund Management (QFM) segments include Quercus, iQ, SeQuel and Other QFM. No customer accounts for more than 10% of the Group's revenue. All of the Group's revenues are derived from external customers. There are no inter-segmental revenues. As disclosed at 31 March 2011, following a revision to the reporting provided to the Board, the Group's segment disclosures have been amended. The comparative period's segment results and balance sheet has been restated accordingly.

The segmental analysis of the Group's results for the six months ended 30 September 2011 was as follows:

	Wembley	Greenwich	Other UR	Total UR	Quercus	iQ	SeQuel	Other QFM	Total QFM	Other	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Revenue	12.7	0.1	0.6	13.4	2.2	1.2	4.4	1.4	9.2	1.6	24.2
Cost of sales	(5.5)	(0.1)	(0.2)	(5.8)	(1.0)	-	(0.9)	(0.7)	(2.6)	(0.6)	(9.0)
Impairment in book value of trading properties	-	-	(1.2)	(1.2)	-	-	-	-	-	-	(1.2)
Gross profit (loss)	7.2	-	(0.8)	6.4	1.2	1.2	3.5	0.7	6.6	1.0	14.0
(Loss) profit from the sale of non-current assets	(1.0)	-	-	(1.0)	-	-	0.3	(0.6)	(0.3)	0.1	(1.2)
Surplus (deficit) on revaluation of investment properties	(1.1)	6.9	(0.1)	5.7	-	-	(2.6)	1.0	(1.6)	(2.5)	1.6
Share of profit (loss) from joint ventures and associates	0.1	(0.2)	(0.1)	(0.2)	0.9	5.3	-	-	6.2	-	6.0
Operating profit (loss) before administrative expenses, finance expenses and tax	5.2	6.7	(1.0)	10.9	2.1	6.5	1.2	1.1	10.9	(1.4)	20.4
Administrative expenses											(10.7)
Net finance expenses											(6.0)
Profit before tax											3.7

The segmental analysis of the Group's results for the six months ended 30 September 2010 was as follows:

	Wembley	Greenwich	Other UR	Total UR	Quercus	iQ	SeQuel	Other QFM	Total QFM	Other	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Revenue	13.6	0.3	0.5	14.4	2.0	1.3	4.4	0.2	7.9	1.4	23.7
Cost of sales	(7.3)	-	(0.2)	(7.5)	(0.7)	-	(0.8)	(0.1)	(1.6)	(0.5)	(9.6)
Impairment in book value of trading properties	-	-	(0.1)	(0.1)	-	-	-	-	-	-	(0.1)
Gross profit	6.3	0.3	0.2	6.8	1.3	1.3	3.6	0.1	6.3	0.9	14.0
(Loss) profit from the sale of non-current assets	(0.2)	2.8	-	2.6	(0.2)	0.1	-	1.3	1.2	-	3.8
Deficit on revaluation of investment properties	(11.5)	(4.7)	(7.5)	(23.7)	-	-	(3.4)	(34.5)	(37.9)	(2.0)	(63.6)
Share of (loss) profit from joint ventures and associates	(0.9)	(3.1)	1.3	(2.7)	3.3	4.1	-	(0.1)	7.3	-	4.6
Operating (loss) profit before administrative expenses, finance expenses and tax	(6.3)	(4.7)	(6.0)	(17.0)	4.4	5.5	0.2	(33.2)	(23.1)	(1.1)	(41.2)
Administrative expenses											(10.8)
Net finance expenses											(6.8)
Loss before tax											(58.8)

The segmental analysis 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 QFM	Total QFM	Other	Total
	£m	£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	0.6	15.4	2.4	46.9
Cost of sales	(13.0)	(0.1)	(3.0)	(16.1)	(1.1)	-	(1.7)	(0.3)	(3.1)	(1.1)	(20.3)
Impairment in book value of trading properties	-	-	(0.4)	(0.4)	-	-	-	-	-	-	(0.4)
Gross profit	12.2	0.3	0.1	12.6	2.3	2.4	7.3	0.3	12.3	1.3	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)	(33.0)	(37.9)	(2.7)	(54.0)
Share of (loss) profit from joint ventures and associates	(0.8)	(5.9)	1.5	(5.2)	7.3	7.5	-	(0.2)	14.6	-	9.4
Operating profit (loss) before administrative expenses, finance expenses and tax	4.7	(0.1)	(8.0)	(3.4)	9.8	9.9	3.1	(33.6)	(10.8)	(1.4)	(15.6)
Administrative expenses											(20.6)
Net finance expenses											(11.9)
Loss before tax											(48.1)

The segmental analysis of the Group's Balance Sheet as at 30 September 2011 was as follows:

	Wembley	Greenwich	Other UR	Total UR	Quercus	iQ	SeQuel	Other QFM	Total QFM	Other	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Investment properties	515.3	166.1	37.9	719.3	-	-	75.1	39.8	114.9	30.0	864.2
Investment in joint ventures	3.4	87.8	0.8	92.0	51.4	110.3	-	13.3	175.0	-	267.0
Investment in associates	-	-	-	-	-	-	-	1.4	1.4	-	1.4
Other non-current investment	-	-	3.4	3.4	-	-	-	-	-	-	3.4
Non-current receivables	-	-	-	-	-	-	-	10.7	10.7	-	10.7
Trading properties	10.0	-	14.8	24.8	-	-	-	-	-	-	24.8
Total segmented assets	528.7	253.9	56.9	839.5	51.4	110.3	75.1	65.2	302.0	30.0	1,171.5
Unallocated assets											31.2
Total assets											1,202.7
Capital expenditure	38.9	0.3	0.1	39.3	-	-	-	17.2	17.2	-	56.5

The segmental analysis of the Group's Balance Sheet as at 30 September 2010 was as follows:

	Wembley	Greenwich	Other UR	Total UR	Quercus	iQ	SeQuel	Other QFM	Total QFM	Other	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Investment properties	453.1	151.2	41.2	645.5	-	-	75.5	22.2	97.7	33.3	776.5
Investment in joint ventures	9.6	82.6	1.5	93.7	58.5	55.6	-	6.9	121.0	-	214.7
Investment in associates	-	-	-	-	-	-	-	1.5	1.5	-	1.5
Other non-current investment	-	-	3.7	3.7	-	-	-	-	-	-	3.7
Trading properties	14.0	-	12.9	26.9	-	-	-	-	-	-	26.9
Total segmented assets	476.7	233.8	59.3	769.8	58.5	55.6	75.5	30.6	220.2	33.3	1,023.3
Unallocated assets											49.6
Total assets											1,072.9
Capital expenditure	10.6	0.1	0.1	10.8	-	-	0.1	16.2	16.3	7.7	34.8

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

	Wembley	Greenwich	Other UR	Total UR	Quercus	iQ	SeQuel	Other QFM	Total QFM	Other	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Investment properties	470.9	159.0	37.8	667.7	-	-	83.7	21.7	105.4	32.5	805.6
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
Other non-current investment	-	-	3.6	3.6	-	-	-	-	-	-	3.6
Non-current receivables	-	-	-	-	-	-	-	10.7	10.7	-	10.7
Trading properties	11.1	-	12.8	23.9	-	-	-	-	-	-	23.9
Total segmented assets	485.5	242.7	55.1	783.3	51.8	67.7	83.7	43.3	246.5	32.5	1,062.3
Unallocated assets											41.8
Total assets											1,104.1
Capital expenditure	32.4	0.2	0.1	32.7	-	-	0.1	29.3	29.4	7.8	69.9

3. Revenue, cost of sales and gross profit                               

	Unaudited six months ended 30 Sept 2011			Unaudited six months ended 30 Sept 2010			Audited year ended 31 March 2011
	Revenue £m	Cost of sales £m	Gross profit £m	Revenue £m	Cost of sales £m	Gross profit £m	Revenue £m	Cost of sales £m	Gross profit £m
Rental income	10.1	(2.7)	7.4	9.9	(2.4)	7.5	20.2	(5.1)	15.1
Income from sale of trading properties	0.9	(0.8)	0.1	3.5	(3.5)	-	7.6	(7.6)	-
Income from hotel operations	4.8	(1.8)	3.0	4.0	(1.8)	2.2	7.6	(3.7)	3.9
Fees from fund management and other services provided to related parties	3.8	(1.2)	2.6	3.7	(0.7)	3.0	6.7	(1.2)	5.5
Other income	4.6	(2.5)	2.1	2.6	(1.2)	1.4	4.8	(2.7)	2.1
	24.2	(9.0)	15.2	23.7	(9.6)	14.1	46.9	(20.3)	26.6
Impairment in book value of trading properties	-	(1.2)	(1.2)	-	(0.1)	(0.1)	-	(0.4)	(0.4)
	24.2	(10.2)	14.0	23.7	(9.7)	14.0	46.9	(20.7)	26.2

4. Net finance expenses

		Unaudited Six months ended 30 Sept 2011 £m	Unaudited Six months ended 30 Sept 2010 £m	Audited Year ended 31 March 2011 £m
Interest expense on financial liabilities measured at amortised cost		9.4	10.9	21.4
Interest on obligations under finance leases		0.4	0.4	0.8
		9.8	11.3	22.2
Interest capitalised		(6.6)	(6.0)	(11.9)
		3.2	5.3	10.3
Change in fair value of derivative financial instruments		1.7	0.1	(0.5)
Recycling of fair value adjustment on cashflow hedges		4.4	3.0	5.3
Profit realised on termination of derivative financial instruments		-	(0.1)	(0.1)
Finance expenses		9.3	8.3	15.0
Finance income: interest income on loans and receivables		(3.3)	(1.5)	(3.1)
Net finance expenses		6.0	6.8	11.9

The average interest rate used for capitalisation was 5.4% (six months ended 30 September 2010: 6.1% and year ended 31 March 2011: 6.0%).

5. Tax

i) Tax credit on profit (loss)

		Unaudited Six months ended 30 Sept 2011 £m	Unaudited Six months ended 30 Sept 2010 £m	Audited Year ended 31 March 2011 £m
UK current tax at 26% (30 Sept 2010 and 31 March 2011: 28%)		-	-	-
Adjustment to prior years' UK corporation tax		-	-	0.1
Overseas tax		0.1	-	0.1
Total current tax charge		0.1	-	0.2
Deferred tax (note 5ii)		(0.6)	(13.5)	(13.6)
Tax credit		(0.5)	(13.5)	(13.4)

ii) Deferred tax movements

	Audited			Unaudited	Unaudited
	31 March 2011 £m	Recognised in income £m	Recognised in equity £m	30 Sept 2011 £m	30 Sept 2010 £m
Capital gains less capital losses	25.6	0.3	-	25.9	22.5
Capital allowances	9.8	-	-	9.8	8.4
Derivative financial instruments	(5.9)	(0.4)	(0.2)	(6.5)	(9.1)
Other temporary differences	0.5	-	-	0.5	(0.6)
Revenue tax losses	(17.8)	(0.5)	-	(18.3)	(11.6)
Deferred tax provision	12.2	(0.6)	(0.2)	11.4	9.6

The deferred tax liability as at the period end has been reduced following the enacted change in the rate of corporation tax from 26% to 25% effective from 1 April 2012. An announcement has also been made that the rate of corporation tax will decrease by a further 1% each year from 1 April 2013 until it reaches 23% in 2014.  The group has re-measured the deferred tax assets and liabilities at 30 September 2011 using the enacted rate of 25%.  Future changes are not reflected in the financial statements for the period to September 2011 as these have not yet been enacted.

6. Net asset value per share

	Unaudited 30 Sept 2011			Unaudited 30 Sept 2010			Audited 31 March 2011
	Equity shareholders' funds £m	Number of shares m	Net asset value per share pence	Equity shareholders' funds £m	Number of  shares m	Net asset value per share pence	Equity shareholders' funds £m	Number of shares m	Net asset value per share pence
As per accounts	602.2	520.5		578.3	520.6		598.3	520.7
Less: Treasury shares	-	(2.5)		-	(2.8)		-	(2.8)
Basic	602.2	518.0	116	578.3	517.8	112	598.3	517.9	116
Adjustment:
Employee
share-based payment schemes	0.2	0.9		0.3	1.5		0.2	1.2
Diluted	602.4	518.9	116	578.6	519.3	111	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.

7. Investment properties 

The movements in investment properties were as follows:

				Unaudited 30 Sept 2011	Unaudited 30 Sept 2010	Audited 31 March 2011
				£m	£m	£m
Opening balance				805.6	812.9	812.9
Additions				56.5	34.9	69.9
Interest capitalised				6.6	5.9	11.9
Disposals				(6.1)	(13.6)	(35.1)
Revaluation surplus (deficit)				1.6	(63.6)	(54.0)
Closing balance				864.2	776.5	805.6

All of the Group's properties were externally valued as at 30 September 2011 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.

The Group's land holdings at Greenwich, Wembley, Silvertown and 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. Properties in the Channel Islands have been valued by Guy Gothard & Co.

8. Investment in joint ventures

There have been no changes to the Group's ownership interests in its joint ventures during the period.  The movement in investment in joint ventures were as follows:

			Unaudited 30 Sept  2011	Unaudited 30 Sept 2010	Audited 31 March 2011
			£m	£m	£m
Opening balance			217.0	202.1	202.1
Additions			-	5.9	2.7
Amounts advanced			45.1	5.3	44.0
Amounts Repaid			-	-	(24.9)
Disposals			-	(3.2)	(15.5)
Distributions			(1.8)	(3.1)	(5.7)
Share of profit, net of tax			6.1	4.7	9.5
Share of other comprehensive income, net of tax			0.6	3.0	4.8
Closing balance			267.0	214.7	217.0

The presentation of the Group's investment in joint ventures has been simplified. The 'Greenwich' segment includes GPRL, Greenwich Peninsula N0204 and GPRL Retail. Quintessential and One Brighton are included within other joint ventures.   These changes have been applied to the current and comparative periods.

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

Summarised income statements for the six months ended 30 September 2011

	Greenwich	iQ	Quantum	Quercus	Other joint ventures	Unaudited Group share in joint ventures
	£m	£m	£m	£m	£m	£m
Rental income	0.3	4.4	0.2	3.2	0.2	8.3
Income from sale of trading properties	-	-	-	-	0.3	0.3
Revenue	0.3	4.4	0.2	3.2	0.5	8.6
Cost of sales	(0.3)	(1.6)	(0.1)	-	(0.4)	(2.4)
Gross profit	-	2.8	0.1	3.2	0.1	6.2
Administrative expenses	-	(0.6)	-	(0.9)	-	(1.5)
Operating profit before recognition of results from non-current asset sales and revaluation	-	2.2	0.1	2.3	0.1	4.7
Surplus (deficit) on revaluation of investment properties	0.5	6.9	(0.1)	(0.6)	-	6.7
Operating profit	0.5	9.1	-	1.7	0.1	11.4
Net finance expenses	(0.4)	(1.8)	-	(0.8)	-	(3.0)
Profit before tax	0.1	7.3	-	0.9	0.1	8.4
Tax	(0.3)	(2.0)	-	-	-	(2.3)
Profit (loss) after tax	(0.2)	5.3	-	0.9	0.1	6.1

Share of other comprehensive income for the six months ended 30 September 2011

	Greenwich	iQ	Quantum	Quercus	Other joint ventures	Unaudited Group share in joint ventures
	£m	£m	£m	£m	£m	£m
Effective portion of changes in fair value of cashflow hedges, net of tax	-	0.7	-	0.2	-	0.9
Recycling of mark-to-market adjustments	-	(0.3)	-	-	-	(0.3)
	-	0.4	-	0.2	-	0.6

Summarised balance sheets as at 30 September 2011

	Greenwich	iQ	Quantum	Quercus	Other joint ventures	Unaudited Group share in joint ventures
	£m	£m	£m	£m	£m	£m
Investment properties	21.9	164.4	6.1	88.6	-	281.0
Investment in joint ventures	1.2	-	-	-	-	1.2
Trading properties	59.2	-	-	1.0	8.2	68.4
Deferred tax asset	3.2	2.7	0.3	-	-	6.2
Other assets	7.6	25.6	11.1	4.3	0.9	49.5
Total assets	93.1	192.7	17.5	93.9	9.1	406.3
Current liabilities:
Trade and other payables	(5.3)	(11.1)	(4.2)	(3.8)	(4.9)	(29.3)
Non-current liabilities:
Bank loans and other borrowings	-	(70.3)	-	(38.3)	-	(108.6)
Other liabilities	-	(1.0)	-	(0.4)	-	(1.4)
Net external assets	87.8	110.3	13.3	51.4	4.2	267.0
Represented by:
Capital	(8.0)	73.4	13.3	51.4	4.2	134.3
Loans	95.8	36.9	-	-	-	132.7
Total investment	87.8	110.3	13.3	51.4	4.2	267.0

The valuation of properties held within Quercus as at 30 September 2011 were performed by Christie + Co, on the basis of market value and in accordance with the Appraisal and Valuation Standards of the Royal Institution of Chartered Surveyors.  Properties within the Greenwich joint ventures were valued by Savills Commercial Limited and within the Quantum Unit Trust and the iQ Unit Trust by CB Richard Ellis Limited.

Summarised income statements for the six months ended 30 September 2010

	Greenwich	iQ	Quantum	Quercus	Other joint ventures	Unaudited Group share in joint ventures
	£m	£m	£m	£m	£m	£m
Rental income	1.1	3.4	0.1	3.9	0.1	8.6
Income from sale of trading properties	-	-	-	-	8.7	8.7
Revenue	1.1	3.4	0.1	3.9	8.8	17.3
Cost of sales	(0.5)	(1.3)	(0.1)	-	(7.2)	(9.1)
Gross profit	0.6	2.1	-	3.9	1.6	8.2
Administrative expenses	(0.1)	(0.6)	-	(0.6)	(0.1)	(1.4)
Operating profit before recognition of results from non-current asset sales and revaluation	0.5	1.5	-	3.3	1.5	6.8
Surplus (deficit) on revaluation of investment properties	0.7	6.1	0.1	1.2	(1.7)	6.4
Operating profit (loss)	1.2	7.6	0.1	4.5	(0.2)	13.2
Net finance expenses	(4.1)	(2.0)	0.1	(0.9)	-	(6.9)
(Loss) profit before tax	(2.9)	5.6	0.2	3.6	(0.2)	6.3
Tax	(0.2)	(1.5)	-	(0.3)	0.4	(1.6)
(Loss) profit after tax	(3.1)	4.1	0.2	3.3	0.2	4.7

Share of other comprehensive income for the six months ended 30 September 2010

	Greenwich	iQ	Quantum	Quercus	Other joint ventures	Unaudited Group share in joint ventures
	£m	£m	£m	£m	£m	£m
Effective portion of changes in fair value of cashflow hedges, net of tax	-	-	-	0.3	-	0.3
Recycling of mark-to-market adjustments	2.7	-	-	-	-	2.7
	2.7	-	-	0.3	-	3.0

Summarised balance sheets as at 30 September 2010

	Greenwich	iQ	Quantum	Quercus	Other joint ventures	Unaudited Group share in joint ventures
	£m	£m	£m	£m	£m	£m
Investment  properties	21.0	122.1	2.8	92.2	4.6	242.7
Investment in joint ventures	1.1	-	-	-	-	1.1
Trading properties	61.5	-	-	1.3	8.7	71.5
Deferred tax asset (liability)	4.4	7.0	0.4	(1.7)	(0.1)	10.0
Other assets	8.2	6.2	5.7	7.5	2.6	30.2
Total assets	96.2	135.3	8.9	99.3	15.8	355.5
Current liabilities:
Trade and other payables	(13.6)	(11.5)	(1.9)	(3.7)	(4.8)	(35.5)
Non-current liabilities:
Bank loans and other borrowings	-	(64.3)	-	(35.6)	-	(99.9)
Other liabilities	-	(3.9)	-	(1.5)	-	(5.4)
Net external assets	82.6	55.6	7.0	58.5	11.0	214.7
Represented by:
Capital	(5.0)	55.6	7.0	58.5	5.0	121.1
Loans	87.6	-	-	-	6.0	93.6
Total investment	82.6	55.6	7.0	58.5	11.0	214.7

Summarised income statements as at 31 March 2011

	Greenwich	iQ	Quantum	Quercus	Other joint ventures	Unaudited 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	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) before recognition of results from non-current asset sales and revaluation	0.3	5.0	(0.1)	6.1	1.8	13.1
Loss from sale of non-current assets	-	-	-	(0.1)	-	(0.1)
(Deficit) surplus on revaluation of investment properties	(0.5)	9.4	(0.1)	1.7	(1.6)	8.9
Operating (loss) profit	(0.2)	14.4	(0.2)	7.7	0.2	21.9
Net finance expenses	(4.6)	(3.1)	0.2	(1.8)	-	(9.3)
(Loss) profit 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)
(Loss) profit after tax	(5.9)	7.5	(0.1)	7.3	0.7	9.5

Share of other comprehensive income as at 31 March 2011

	Greenwich	iQ	Quantum	Quercus	Other joint ventures	Unaudited Group share in joint ventures
	£m	£m	£m	£m	£m	£m
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 adjustment	2.3	(0.7)	-	-	-	1.6
	2.7	1.1	-	1.0	-	4.8

Summarised balance sheets as at 31 March 2011

	Greenwich £m	iQ £m	Quantum £m	Quercus £m	Other joint ventures £m	Unaudited Group share in joint ventures £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 assets	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 liability	(0.1)	-	-	-	-	(0.1)
Non-current liabilities:
Bank loans and other borrowings	-	(67.3)	-	(30.0)	-	(97.3)
Other liabilities	-	(1.8)	-	(0.6)	-	(2.4)
Net external  assets	83.7	67.7	9.4	51.8	4.4	217.0
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

9. Non-current receivables

The Group has two unsecured loans totaling £10.7m (30 Sept 2010: £nil and 31 March 2011: £10.7m) to an associate, Albermarle Retail Properties LLP, which carry a coupon of 10% per annum and the principal of which will be repaid together with and 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.

10. Trade and other receivables

		Unaudited 30 Sept 2011 £m	Unaudited 30 Sept 2010 £m	Audited 31 March 2011 £m
Trade receivables		15.7	6.1	9.4
Amount due from related parties		2.4	4.3	4.4
Other receivables		3.9	10.1	1.3
Trade and other receivables		22.0	20.5	15.1
Amounts due under contract for sale		-	4.5	-
Prepayments and accrued income		3.0	1.9	4.3
		25.0	26.9	19.4

11. Trade and other payables

i) Current trade and other payables

		Unaudited 30 Sept 2011 £m	Unaudited 30 Sept 2010 £m	Audited 31 March  2011 £m
Trade payables		8.0	1.5	5.4
Other payables		6.5	3.8	4.3
Accruals		21.7	21.9	21.6
Interest rate swaps		2.0	5.9	5.2
		38.2	33.1	36.5

ii) Non-current other payables

		Unaudited 30 Sept 2011 £m	Unaudited 30 Sept 2010 £m	Audited 31 March 2011 £m
Interest rate swaps		2.7	13.5	6.8
Other payables		1.2	1.3	1.3
		3.9	14.8	8.1

12. Bank loans and other borrowings:

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

	Total debt			Undrawn facilities
	Unaudited 30 Sept 2011	Unaudited 30 Sept 2010	Audited 31 Mar 2011	Unaudited 30 Sept 2011	Unaudited 30 Sept 2010	Audited 31 Mar 2011
	£m	£m	£m	£m	£m	£m
Current liabilities	1.7	3.7	3.7	-	-	25.0
Non-current liabilities	532.6	421.0	432.7	82.5	171.0	165.5
	534.3	424.7	436.4	82.5	171.0	190.5
Non-current liabilities
1 - 2 years	74.4	1.6	91.7	-	-	18.9
2 -  5 years	459.8	421.2	342.7	82.5	171.0	146.6
After 5 years	1.7	1.8	1.8	-	-	-
	535.9	424.6	436.2	82.5	171.0	165.5
Amortised borrowing costs	(3.3)	(3.6)	(3.5)
	532.6	421.0	432.7

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

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

	Average contracted fixed interest rate			Notional principal amount
	Unaudited 30 Sept 2011	Unaudited 30 Sept 2010	Audited 31 Mar 2011	Unaudited 30 Sept 2011	Unaudited 30 Sept 2010	Audited 31 Mar 2011
				£m	£m	£m
Interest rate swaps	1.92%	3.07%	4.55%	328	335	335

13. Property revaluation movements

		Unaudited Six months ended 30 Sept 2011 £m	Unaudited Six months ended 30 Sept 2010 £m	Audited Year ended 31 March 2011 £m
Recognised in Income Statement:
Surplus (deficit) on revaluation of directly held investment properties		1.6	(63.6)	(54.0)
Surplus on revaluation of investment properties in joint ventures		6.7	6.4	8.9
Deficit on revaluation of associates		(0.1)	(0.1)	(0.1)
		8.2	(57.3)	(45.2)

14. Capital commitments

As at 30 September 2011, the Group had capital commitments of £54.4m (30 September 2010: £ 110.6m and 31 March 2011: £105.9m) in relation to its own developments held as investment properties of which £1.2m (30 September 2010: £3.1m and 31 March 2011: £3.8m) is recoverable under government grants.

The Group's share of capital commitments in relation to its joint ventures was £25.9m (30 September 2010: £16.4m and 31 March 2011: £67.8m).

It is anticipated that £18.0m will be refunded to the group following the refinancing of Corsham Street property by iQ Unit Trust on practical completion of the development.

15. Related party disclosures

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

		Unaudited Six months ended 30 Sept 2011 £m	Unaudited Six months ended 30 Sept 2010 £m	Audited Year ended 31 March 2011 £m
Quercus Healthcare Property Unit Trust		2.2	2.0	3.4
iQ Unit Trust		1.2	1.3	2.4
Greenwich Peninsula Regeneration Limited		-	0.2	0.3
Quantum Unit Trust		0.3	0.1	0.5
Quintessential Homes (Wembley) LLP		0.1	0.1	0.1
		3.8	3.7	6.7

The Group received the following interest on loan notes:

		Unaudited Six months ended 30 Sept 2011 £m	Unaudited Six months ended 30 Sept 2010 £m	Audited Year ended 31 March 2011 £m
Greenwich Peninsula Regeneration Limited		0.9	0.8	1.6
iQ Unit Trust		0.9	-	-
Greenwich N0204		0.4	0.4	0.7
Wembley City HIX Limited		-	0.1	0.1
Albemarle Retail Properties LLP		0.5	-	0.1
		2.7	1.3	2.5

16. Post Balance Sheet Event

There have been no material post balance sheet events since 30 September 2011.

 

END

 

 

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