Interim Results
Quintain Estates & Development PLC
7 December 2004
QUINTAIN ESTATES AND DEVELOPMENT PLC
('Quintain' / 'Company' / 'Group')
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2004
Highlights
• Group turnover increased by 33% to £37.4m (2003: £28.0m)
• Gross profit rose by 5% to £20.2m (2003: £19.3m)
• Profit before tax decreased by 31% to £5.0m (2003: £7.3m), largely owing to
exceptional costs relating to the re-financing of the Company's debt
• Earnings per share fell by 1.3p to 3.3p (2003: 4.6p)
• Net asset value per share increased to 406p (30 Sept 2003: 349p; 31 March
2004: 405p)
• Interim dividend maintained at 2.75p
• Portfolio highlights include the disposal of selected trading and
investment assets during the period totalling £149m to take advantage of
the strong market, with contracts exchanged for a further £93m of disposals
since the period end. £64m reinvested in assets with an average aggregate
yield of over 8%
• Significant progress made in the Company's key Special Projects:
o Greenwich Peninsula deal declared unconditional in June; detailed
planning consent achieved for Millennium Square; and responsibility
assigned to Anschutz Entertainment Group for liabilities associated
with the Dome and the balance of the development rights underneath the
structure
o At Wembley, resolution to grant planning consent obtained in June for
Quintain's Phase 1 plans for 5.3m sq ft of mixed-use development;
section 106 agreement signed; and agreement reached, following the
period end, with Caesars Entertainment Inc to joint venture a
potential gaming and leisure development at Wembley
• Directors' interim valuation of Wembley and Greenwich Peninsula assets, not
incorporated into the 30 September 2004 figures, reveal approximate
uplifts after costs of £42m (34%) and £9m (9%) respectively, signalling
Company on track to deliver good NAV growth for the full year
• Syndication in July of a new corporate loan, raising £475m, combined with
the current low level of gearing and circa £250m of undrawn facilities,
ensures Quintain is in a strong financial position to acquire new assets
and fund its Special Project activities.
Nigel Ellis, Chairman of Quintain, commented:
'The Company's achievements in the first six months across its full range of
operations, together with the strength of its financial resources and enhanced
management team, leaves it well positioned to continue its strong progress.'
For further information, please contact:
Quintain Estates and Development
020 7495 8968
Rebecca Worthington
Financial Dynamics
020 7831 3113
Stephanie Highett / Dido Laurimore
FINANCIAL HIGHLIGHTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2004
Profit and Loss Account
30 Sept 30 Sept Change Year to 31
2004 2003 % March
2004
Group turnover (£000) 37,353 28,037 33 60,484
Profit before tax (£000) 5,026 7,339 (31) 16,037
Earnings per share (pence) 3.3p 4.6p (28) 12.4p
Dividend per share (pence) 2.75p 2.75p - 8.75p
Balance Sheet
30 Sept 30 Sept 31 March
2004 2003 2004
Net asset value per share (pence) 406p 349p 405p
Diluted net asset value per share (pence) 401p 341p 399p
Gearing (%) 48% 60% 56%
CHAIRMAN'S STATEMENT
I am pleased to report that Quintain has made good progress in the six months to
30 September 2004. Operational highlights included winning a resolution to
grant planning consent for the 5.3m sq ft Phase 1 of our development at Wembley,
completion of all commercial contracts at the Greenwich Peninsula and a
successful programme of disposals and purchases within the Main Portfolio. In
addition, the syndication in July of a new £475m corporate loan, combined with
the ongoing revenue stream from our investment assets, has ensured that the
Company is in a strong financial position to acquire new assets and fund its
Special Projects activities.
Gross profits rose by £0.9m (5%) to £20.2m in the period under review and
underlying earnings were in line with the corresponding period in 2003. Owing
largely to the exceptional costs relating to the re-financing of the Company's
debt, however, reported profit before tax decreased to £5.0m (2003: £7.3m) with
a subsequent 1.3p drop in earnings per share to 3.3p (2003: 4.6p). Further
detail is provided in the Financial Review below.
As in previous years, we have not undertaken a formal valuation of the property
portfolio for the half year. However, the Directors have carried out, in
conjunction with FPD Savills, an informal review of our assets at Wembley and
Greenwich. The review indicates approximate uplifts after costs of £42m (34%) at
Wembley and £9m (9%) at Greenwich and signals that the Company is on track to
deliver good NAV growth for the year-end results in 2005.
In line with past practice, we have decided to maintain the interim dividend at
2.75p per share.
Portfolio Review
Within Special Projects, there has been significant progress at Wembley since
the year-end. In June, a resolution to grant consent for 5.3m sq ft of mixed-use
development was obtained from the London Borough of Brent. Since then the S106
agreement has been signed and we have received notification from both the
Government Office for London and the Mayor of London that they do not intend to
exercise their statutory powers. We are on site with demolition works and
construction of the Pavilion, a temporary facility to continue the arena
business whilst the £30m refurbishment takes place in 2005. Also during 2005,
construction will commence to deliver the significant public realm improvements,
providing a fitting setting for the new national stadium when it opens in 2006.
This will include building Arena Square, the Stadium Piazza and the northern end
of Wembley Park Boulevard. Since the period end, Quintain has reached agreement
with Caesars Entertainment Inc. to form a 50/50 joint venture to develop Caesars
Wembley. The joint venture, which is subject to planning and to the reform of
the UK gaming laws, will operate a 650,000 sq ft facility at Wembley, comprising
a world-class casino, a 400 room luxury hotel, a spa and swimming pool, designer
shops and a wide variety of restaurants and bars.
Good progress has also been made with regard to the Greenwich Peninsula, where
the entire transaction with English Partnerships went unconditional in June.
Meridian Delta also reached agreement with Anschutz Entertainment Group, the
Dome arena leaseholders and developers, that Anschutz will assume responsibility
for all maintenance costs and liabilities with respect to the Dome in return for
the balance of the leasehold development rights underneath the structure, but
outside the arena. In addition, detailed planning consent for the development
of Millennium Square was obtained and works are due to commence on site in
January 2005.
In our joint venture with Countryside Properties PLC at Abbey Mills, Merton,
SW19, phase 1 was completed with all 124 residential units and commercial
elements sold. Due to the conditions attached to the sale, the profit relating
to the commercial element is not reflected in this period. Work commenced in
August on phase 2, comprising 164 residential units.
In the Company's Main Portfolio, we have taken advantage of the continuing
strength of the investment market to sell selected assets where we believe that
there is both limited further upside and that the capital released will be put
to more productive use within the group. The larger of these disposals were
Neathouse Place, SW1 (£67.8m) and The Parishes, Scunthorpe (£43.15m). Since the
period end, we have also exchanged contracts to sell our interests in the Mount
Royal block on Oxford Street, W1 for £80m.
Despite the very competitive market, part of these proceeds have already been
used to reinvest over the six months in assets totalling some £64m, providing an
average aggregate yield of over 8%.
We also have a total 150,000 sq ft of retail and office refurbishment either
underway or planned, all of which are progressing well.
Progress has also been achieved in Q3P, Quintain's structured finance division.
Since expanding the Quercus healthcare fund in June, we are pleased to report
that we have purchased an additional £39m of properties. In agreement with the
investors in Quart, our licensed premises fund, we have decided to lock-in
profits and therefore close the fund. We continue to evaluate opportunities to
invest in appropriate specialist areas.
Financial Review
Turnover was 33% ahead at £37.4m with gross profits up 5% at £20.2m. As a result
of the sales programme, net rents fell by £0.8m to £14.8m. This is likely to
reduce further next year with the impact of the sales programme, a year which
will also be adversely affected by the temporary closure of Wembley Arena.
Disposals of trading properties gave rise to a profit of £1.7m (2003: £0.2m).
The reported profit before tax for the year was £5.0m (2003: £7.3m). Underlying
earnings were in line with the same period last year but, because of the
exceptional finance costs of £2.0m relating to the re-financing of the Company's
debt as described below, earnings per share fell by 1.3p or 28%.
The £3.1m increase in administration expenses to £10.6m reflected higher staff
costs and headcount as additional resources were taken on to deliver the major
projects at Wembley and Greenwich. The tax rate of 15% is based on current
forecasts for the full year. The reduction from the standard rate of 30% arises
mainly from the crystallisation of capital allowances, capitalised interest and
brought forward tax losses.
Gearing has fallen from 56% at the year-end to 48% at 30 September 2004. Trading
and investment sales in the period of £149m were partially offset by purchases
of £64m and £21m of capital expenditure. In addition the final £14m instalment
was paid for Wembley.
In July, we completed the syndication of our new corporate loan, raising £475m.
With the current low level of gearing and circa £250m of undrawn facilities,
Quintain is in a strong position to take advantage of new opportunities arising
as well as those inherent in the Company's portfolio.
Quintain's accounts will be prepared under International Accounting Standards
(IAS) for the financial year ended 31 March 2006. We have been working towards
the implementation of IAS for some time and are well advanced in our plans to
ensure smooth implementation. This has included training of staff and updating
of systems as well as the ongoing assessment of the impact of IAS. In the
months following the announcement of our annual results we will be releasing
restated accounts that demonstrate the impact of IAS on our primary statements
and key performance indicators.
Outlook
The Company's achievements in the first six months across its full range of
operations, together with the strength of its financial resources and enhanced
management team, leaves it well positioned to continue its strong progress.
Nigel Ellis
Chairman
7 December 2004
Quintain Estates and Development PLC
Consolidated Profit and Loss Account
For the six months ended 30 September 2004
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Sept 2004 30 Sept 2003 31 March 2004
Notes £000 £000 £000
_______ _______ _______
Turnover 39,627 30,717 65,200
Less - share of joint ventures' turnover (2,274) (2,680) (4,716)
_______ _______ _______
Group turnover 2 37,353 28,037 60,484
Cost of sales 2 (17,135) (8,742) (20,079)
_______ _______ _______
Gross profit 20,218 19,295 40,405
Administrative expenses 3 (10,581) (7,528) (15,959)
_______ _______ _______
Group operating profit 9,637 11,767 24,446
Share of operating profit in joint ventures 1,861 1,977 3,601
Share of operating profit in associates 185 105 274
Profit on sale of investment properties 2,638 2,699 5,898
_______ _______ _______
Profit on ordinary activities before 14,321 16,548 34,219
interest and tax
Net interest payable 4 (9,295) (9,209) (18,182)
_______ _______ _______
Profit on ordinary activities before 5,026 7,339 16,037
taxation
Tax on profit on ordinary activities 5 (754) (1,468) -
_______ _______ _______
Profit on ordinary activities after taxation 4,272 5,871 16,037
Equity minority interests (69) (60) (150)
_______ _______ _______
Profit for the financial period 4,203 5,811 15,887
Dividends 6 (3,561) (3,540) (11,338)
_______ _______ _______
Retained profit for the financial period 642 2,271 4,549
====== ====== ======
Earnings per share 7
Basic 3.3p 4.6p 12.4p
====== ====== ======
Diluted 3.3p 4.5p 12.3p
====== ====== ======
Quintain Estates and Development PLC
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Sept 2004 30 Sept 2003 31 March 2004
£000 £000 £000
_______ _______ _______
Consolidated Statement of Total Recognised Gains and
Losses for the six months ended 30 September 2004
Profit for the financial period 4,203 5,811 15,887
Unrealised surplus (deficit) on revaluation 1,352 (429) 74,435
Tax on realisation of revaluation surplus - - (471)
Foreign exchange movements 341 (135) (798)
_______ _______ _______
5,896 5,247 89,053
====== ====== ======
Consolidated Note of Historical Cost Profits and
Losses for the six months ended 30 September 2004
Profit on ordinary activities before taxation 5,026 7,339 16,037
Revaluation element of short leasehold amortisation 116 63 159
Realisation of property revaluation gains of 21,708 493 8,349
previous periods
_______ _______ _______
Historical cost profit on ordinary activities before 26,850 7,895 24,545
taxation
====== ====== ======
Historical cost profit for the period retained
after taxation, minority interests and dividends 22,466 2,827 12,586
====== ====== ======
Reconciliation of Movements in Equity Shareholders'
Funds for the six months ended 30 September 2004
Profit for the financial period 4,203 5,811 15,887
Dividends (3,561) (3,540) (11,338)
_______ _______ _______
642 2,271 4,549
Other recognised gains and losses relating to the 1,693 (564) 73,166
period
Issue of shares less costs 350 641 2,287
Investment in own shares (443) - -
Cost relating to Employees' Share Plans 203 - 195
_______ _______ _______
Net addition to equity shareholders' funds 2,445 2,348 80,197
Opening shareholders' funds 523,513 443,316 443,316
_______ _______ _______
Closing shareholders' funds 525,958 445,664 523,513
====== ====== ======
Quintain Estates and Development PLC
Consolidated Balance Sheet
As at 30 September 2004
Unaudited Unaudited Audited
As at As at As at
30 Sept 2004 30 Sept 2003 31 March 2004
Notes £000 £000 £000
_______ _______ _______
Fixed assets
Investment properties 8 741,073 714,529 797,696
Other fixed assets 554 454 649
Investment in joint ventures
Share of gross assets 64,319 69,803 56,999
Share of gross liabilities (25,812) (31,610) (25,708)
________ ________ ________
38,507 38,193 31,291
Investment in associates 8,258 4,501 5,467
Other fixed asset investments 188 188 188
________ ________ ________
788,580 757,865 835,291
________ ________ ________
Current assets
Trading properties 20,439 559 21,707
Debtors 36,149 31,688 28,843
Short term investments 19 19 19
Cash at bank and in hand 21,168 12,883 44,168
________ ________ ________
77,775 45,149 94,737
Creditors: amounts falling due within (56,397) (56,225) (61,587)
one year
________ ________ ________
Net current assets (liabilities) 21,378 (11,076) 33,150
________ ________ ________
Total assets less current liabilities 809,958 746,789 868,441
Creditors: amounts falling due after
more than one year (277,760) (290,772) (338,811)
Provisions for liabilities and charges (4,687) (8,993) (4,671)
Equity minority interests (1,553) (1,360) (1,446)
________ ________ ________
Net assets 525,958 445,664 523,513
======= ======= =======
Capital and reserves
Called up share capital 10 32,377 31,948 32,323
Share premium account 46,000 43,805 45,076
Revaluation reserve 247,221 202,156 267,604
Other capital reserves 112,330 112,330 112,330
Profit and loss account 88,473 55,425 66,180
Investment in own shares (443) - -
________ ________ ________
Equity shareholders' funds 525,958 445,664 523,513
======= ======= =======
Net asset value per share 11
Basic 406p 349p 405p
======= ======= =======
Diluted 401p 341p 399p
======= ======= =======
Quintain Estates and Development PLC
Consolidated Cash Flow Statement
For the six months ended 30 September 2004
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Sept 2004 30 Sept 2003 31 March 2004
Notes £000 £000 £000
_______ _______ _______
Net cash inflow from operating 12a 7,701 6,722 6,656
activities
====== ====== ======
Dividends from joint ventures and 614 894 7,871
associates
====== ====== ======
Returns on investments and servicing of
finance
Net interest paid (8,986) (9,175) (18,328)
Issue costs of loans (2,751) (41) (389)
_______ _______ _______
Net cash outflow from returns on
investments and servicing of finance (11,737) (9,216) (18,717)
====== ====== ======
Corporation tax paid (101) (61) (66)
====== ====== ======
Capital expenditure and financial
investment
Purchase of tangible fixed assets (65,499) (17,091) (63,760)
Proceeds from disposal of tangible 135,628 40,173 82,639
fixed assets
Loans to joint ventures and associates (7,411) (5,032) -
_______ _______ _______
Net cash inflow from capital
expenditure and financial investment 62,718 18,050 18,879
====== ====== ======
Acquisitions and disposals
Purchase of subsidiary companies (13,875) - (24,786)
Settlement of debt due from vendor - - 2,978
Net cash acquired with subsidiary - - 4
companies
_______ _______ _______
Net cash outflow from acquisitions
and disposals (13,875) - (21,804)
====== ====== ======
Equity dividends paid (7,763) (6,709) (10,264)
====== ====== ======
Net cash inflow (outflow) before
management of liquid resources and financing 37,557 9,680 (17,445)
====== ====== ======
Management of liquid resources 12b 25,773 2,905 (22,703)
====== ====== ======
Financing
Issue of ordinary shares for cash 352 641 2,287
Loans drawn down 268,321 7,499 105,588
Loan repayments (328,787) (27,051) (68,376)
Purchase of own shares (443) - -
_______ _______ _______
Net cash (outflow) inflow from (60,557) (18,911) 39,499
financing
====== ====== ======
Increase (decrease) in cash 12b 2,773 (6,326) (649)
====== ====== ======
Note: The figure for the purchase of shares in subsidiaries represents the
final instalment of the deferred consideration for the acquisition of Wembley
(London) Limited, which occurred in August 2002.
Quintain Estates and Development PLC
Notes to the accounts
For the six months ended 30 September 2004
1 Basis of preparation
The half year figures for 2004 and 2003 are unaudited and have been prepared on
the basis of accounting policies adopted in the accounts to 31 March 2004,
except as explained below. The comparative figures for the financial year ended
31 March 2004 are not the Company's statutory accounts for that financial year.
These accounts have been reported on by the Company's auditors and delivered to
the Registrar of Companies. The report of the auditors was unqualified and did
not contain a statement under sections 237(2) or (3) of the Companies Act 1985.
In accordance with the Urgent Issues Task Force Abstract 38, Accounting for ESOP
Trusts, which became effective for accounting periods ending on or after 22 June
2004, consideration paid by the Employee Share Ownership Plan Trust for the
purchase of the Company's own shares is deducted in arriving at shareholders'
funds. Such shares were purchased by the Trust for the first time in the
current financial year. The shares held by the Trust are treated as if they
were cancelled for the purposes of calculating earnings and net assets per
share.
2 Turnover and cost of sales
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Audited Audited Audited
Six Six Six Six Six Six Year Year Year
months months months months months months ended ended ended
ended ended ended ended ended ended 31 31 31
30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 30 Sept March March March
2004 2004 2004 2003 2003 2003 2004 2004 2004
Turnover Cost Gross Turnover Cost Gross Turnover Cost Gross
of sales profit of sales profit of sales profit
£000 £000 £000 £000 £000 £000 £000 £000 £000
______ ______ ______ ______ ______ ______ ______ ______ ______
Gross rents 18,246 (3,470) 14,776 19,825 (4,208) 15,617 41,993 (12,133) 29,860
receivable
Proceeds from the
sale of trading
properties 12,070 (10,354) 1,716 1,439 (1,254) 185 1,863 (1,565) 298
Income from leisure
operations 5,687 (2,562) 3,125 5,485 (3,121) 2,364 12,154 (5,562) 6,592
Other income 1,350 (749) 601 1,288 (159) 1,129 4,474 (819) 3,655
_______ _______ _______ _______ _______ _______ _______ _______ _______
37,353 (17,135) 20,218 28,037 (8,742) 19,295 60,484 (20,079) 40,405
====== ====== ====== ====== ====== ====== ====== ====== ======
3 Administrative expenses
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Sept 2004 30 Sept 2003 31 March 2004
£000 £000 £000
_______ _______ _______
Directors' remuneration 2,138 1,475 2,095
Cost relating to Employees' Share Plans 203 - 195
Staff costs 5,186 3,675 8,000
Legal and professional fees 1,333 895 2,225
Office costs 847 843 2,642
Depreciation of tangible fixed assets 171 167 333
Profit on disposal of fixed assets (5) (9) (18)
General expenses 708 482 487
_______ _______ _______
10,581 7,528 15,959
====== ====== ======
4 Net interest payable
The interest charge includes an amount written off on re-financing of £1,969,000
(2003 : £nil) in respect of borrowing costs previously capitalised and a profit
of £630,000 (2003 : £nil) which arose on the termination of certain swap
arrangements.
5 Tax on profit on ordinary activities
The effective rate of taxation on profit on ordinary activities of 15% (2003 :
20%) reflects the benefit of available losses, capitalised interest and
permanent timing differences in relation to capital allowances.
6 Dividends
The interim dividend of 2.75p (2003 : 2.75p) per ordinary share is payable on
19 January 2005 to members on the register as at 17 December 2004. A final
dividend of 6p in respect of the year to 31 March 2004 was paid during the
period.
7 Earnings per share
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Audited Audited Audited
Six Six Six Six Six Six Year Year Year
months months months months months months ended ended ended
ended ended ended ended ended ended 31 31 31
30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 30 Sept March March March
2004 2004 2004 2003 2003 2003 2004 2004 2004
Profit for Average Earnings Profit for Average Earnings Profit for Average Earnings
the weighted per the weighted per the weighted per
financial number share financial number share financial number share
period of shares period of shares period of shares
£000 000 pence £000 000 pence £000 000 pence
_______ _______ _______ _______ _______ _______ _______ _______ _______
Basic 4,203 129,332 3.3 5,811 127,597 4.6 15,887 128,182 12.4
====== ====== ======
Adjustment in
respect of 8%
Convertible 84 2,000 84 2,000 168 2,000
unsecured loan
stock _______ _______ _______ _______ _______ _______
Diluted 4,287 131,332 3.3 5,895 129,597 4.5 16,055 130,182 12.3
====== ====== ====== ====== ====== ====== ====== ====== ======
8 Investment properties
Investment properties are valued annually at the end of each financial year and
are shown in the Balance Sheet as at 30 September 2004 at the previous year end
valuations adjusted for subsequent expenditure and disposals.
9 Borrowings
As at 30 September 2004, J C Rathbone Associates estimated that the fair value
of the Group's financial liabilities exceeded their carrying value by £7,645,000
(2003 : £13,476,000). As at 31 March 2004, the excess was £8,375,000.
10 Called up share capital
Number Nominal
of shares value
000 £000
_______ _______
Shares in issue as at 1 April 2004 129,291 32,323
Issue of shares under Staff Share Option Schemes 216 54
_______ _______
Shares in issue as at 30 September 2004 129,507 32,377
====== ======
During the period, 100,000 of the Company's own shares were purchased and held
through an Employee Share Ownership Plan Trust.
11 Net asset value per share
Unaudited Unaudite Unaudite Unaudited Unaudited Unaudited Audited Audited Audited
As at As at As at As at As at As at As at As at As at
30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 31 March 31 March 31 March
2004 2004 2004 2003 2003 2003 2004 2004 2004
Net Number Net asset Net Number Net asset Net Number Net asset
assets of shares value assets of shares value assets of shares value
per share per share per share
£000 000 pence £000 000 pence £000 000 pence
______ ______ _______ _______ _______ _______ _______ _______ _______
Basic 525,958 129,507 406 445,664 127,792 349 523,513 129,291 405
====== ====== ======
Adjustment in
respect of 8%
Convertible 3,000 2,000 3,000 2,000 3,000 2,000
unsecured loan
stock
Adjustment in
respect of
employee share
option 8,777 2,799 9,095 4,376 8,458 2,915
arrangements
Adjustment in
respect of shares
held in
Employee Share - (100) - - - -
Ownership Plan
_______ _______ _______ _______ _______ _______
Diluted 537,735 134,206 401 457,759 134,168 341 534,971 134,206 399
====== ====== ====== ====== ====== ====== ====== ====== ======
12 Notes to the consolidated cash flow statement
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Sept 2004 30 Sept 2003 31 March 2004
£000 £000 £000
_______ _______ _______
a) Reconciliation of operating profit to
net cash inflow from operating activities
Operating profit 9,637 11,767 24,446
Depreciation charge 702 762 1,470
Profit on disposal of fixed assets (5) (9) (18)
Cost relating to Employees' Share Plans 203 - 195
Increase in debtors (4,610) (6,813) (734)
Increase (decrease) in creditors 1,874 (176) (1,746)
(Increase) decrease in trading stock (100) 1,191 (16,957)
_______ _______ _______
Net cash inflow from operating 7,701 6,722 6,656
activities
====== ====== ======
12 Notes to the consolidated cash flow statement (continued)
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Sept 2004 30 Sept 2003 31 March 2004
£000 £000 £000
_______ _______ _______
b) Reconciliation of net cash movement
to net debt
Increase (decrease) in cash during 2,773 (6,326) (649)
period
Cash outflow (inflow) from debt and
lease financing 60,559 19,923 (37,212)
Cash (inflow) outflow from movement
in liquid resources (25,773) (2,905) 22,703
_______ _______ _______
Change in net debt resulting from cash 37,559 10,692 (15,158)
flows
Costs of issue of non-equity finance 2,750 41 389
Amortisation of issue costs (382) (315) (647)
Other non-cash movements (1,694) (57) 1,023
_______ _______ _______
Movement in net debt in the period 38,233 10,361 (14,393)
Net debt, beginning of period (290,267) (275,874) (275,874)
_______ _______ _______
Net debt, end of period (252,034) (265,513) (290,267)
====== ====== ======
c) Analysis of net debt
Liquid resources 301 466 26,074
Cash 20,886 12,436 18,113
Debt due after more than one year (273,172) (278,364) (334,394)
Debt due within one year (49) (51) (60)
_______ _______ _______
(252,034) (265,513) (290,267)
====== ====== ======
Independent review report to
Quintain Estates and Development PLC
Introduction
We have been engaged by the company to review the attached financial information
and we have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
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 interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with best
practice which require that the accounting policies and presentation applied to
the interim figures should be consistent with those applied in preparing the
preceding annual accounts except where they are to be changed in the next annual
accounts in which case any changes, and the reasons for them, are to be
disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/
4: Review of interim financial information issued by the Auditing Practices
Board for use in the United Kingdom. A review consists principally of making
enquiries of group management and applying analytical procedures to the
financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review is substantially less
in scope than an audit performed in accordance with Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly we do
not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2004.
KPMG Audit Plc
Chartered Accountants
London
7 December 2004
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