Final Results

RNS Number : 8945F

Artisan (UK) PLC

15 October 2008

 



ARTISAN (UK) plc

PRELIMINARY RESULTS FOR THE YEAR TO 30 JUNE 2008

Artisan (UK) plc ('the Group'), the AiM listed house builder, business park developer and property investor announces its preliminary results for the year to 30 June 2008. 

Highlights:

• Group turnover for the year has reduced to £23.4m (15 months to 30 June 2007: £41.0m) with a limited pro-rata reduction in the commercial business and the greater impact of market conditions in our residential business

• Operating Profit was £1.9m (15 months to 30 June 2007: £3.7m) - Profit before tax at £0.59m (15 months to 30 June 2007: £2.78m)

• Commercial division benefits from strong margin achieved and from forward sale and let contracts - operating profit at £1.7m (2007: £2.4m) before central charges

•  Residential division at breakeven

• Cost cutting programmes introduced to conserve resources in the business

• Final dividend of 0.75p per ordinary share (2007: 1.5p); total dividend for year 1.95p (2007: 2.7p)

Michael W Stevens, Non-executive Chairman, commented:

'The Group currently faces some of the toughest trading conditions in its history, particularly in respect of the residential market, and these results need to be considered in that context. In most respects I am pleased with the results that have been achieved and am convinced that the prudent actions taken by the Board to reshape our operations to current market conditions will stand the Group in good stead.'

The 2008 Annual Report will be posted to shareholders on 17 October 2008 and will be available on the Group's website from that date.

Enquiries:

Artisan (UK) plc                                                                                                                                                                                      01480 436666

Chris Musselle, Chief Executive                                                                                                                                                 Mobile: [phone]

Bankside Consultants                                                                                                                                                                          020 7367 8888

Simon Rothschild/Louise Mason                                                                                                                                                Mobile: [phone]

Brewin Dolphin Limited    

Andrew Kitchingman                                                                                                                                                                               0845 2708613

Sean Wyndham-Quin                                                                                                                                                                             0845 2709518

CHAIRMAN'S STATEMENT

The Group currently faces some of the toughest trading conditions in its history in respect of the residential market and these results for the year to 30 June 2008 need to be considered in that context. In most respects I am pleased with the results that have been achieved and am convinced that the prudent actions taken by the Board to shape our operations to current market conditions stands the Group in good stead.

Group Results

Shareholders should note that the comparative figures quoted below are for the 15 months to 30 June 2007 and such tend to understate the achievements of the year under review. Group turnover for the year has reduced to £23.4m (15 months to 30 June 2007: £41.0m) as a result of a limited pro-rata reduction in the commercial business, £10.7m (15 months to 30 June 2007: £15.6m) and the greater impact of market conditions in our residential business, whose turnover has dropped to £15.1m (15 months to 30 June 2007: £26.9m). Operating Profit was £1.9m (15 months to 30 June 2007: £3.7m). These results include the revaluation surplus arising on our investment properties amounting to £1.2m (15 months to 30 June 2007: £0.3m).

These results reflect a breakeven position before central costs achieved by Rippon Homes and the strong margin achieved by the Group's commercial development activities, which has benefited from forward sale and let contracts brought forward from the previous year. 

Overview

The markets for both our residential and commercial divisions have been difficult and volatile throughout the year. In particular the residential market during the first half of the financial year was difficult, but there was an increase in activity in the first quarter of 2008. However this increase in activity swiftly petered out when the reduction in mortgage availability became more apparent in the final quarter.  

The Board foresaw the approach of tougher trading conditions in the second half of 2007 and took steps to position the Group accordingly. In particular the Board has focused on maintaining, first and foremost, a strong cash headroom position. The gross indebtedness is detailed in the Chief Executive's report, but as at 30 June 2008 the Group had the benefit of £12.9m (2007: £13.3m) of cash headroom to fund the Group's activities.  In addition, further ability to draw loan funds remains as further assets become available to provide security.  This has been achieved by curtailing expenditure on land, both residential and commercial, and a number of proposed site acquisitions in progress being cancelled. Consequently the Group's headroom is significantly higher than had been previously budgeted by management. New sites have been reassessed and progressed only when reconsidered against current market conditions and the Group's requirements to conserve its resources. Product build has been considerably slowed and whilst generally units in progress are being built through to completion, new build starts are only activated in response to a satisfactory sales reservation on available stock.

Cost reduction programmes

Furthermore in response to market conditions, we swiftly reassessed our sales incentives and negotiating platform so as to stimulate sales in favour of our Rippon product. We are pleased that, although volumes may not be comparable, our prudent policy of carefully selecting and designing sites to appeal to customers' requirements appears to be winning Rippon Homes a satisfactory level of sales compared to its competitors.

We have re-analysed our cost base, and have made considerable savings. In common with other house builders, the largest cost after land and build costs are employment costs.  Although over recent years the Board's policy has been to reduce the numbers of direct employees and instead engage sub contractors for each project, we have now been obliged to accelerate this process and create further savings through a redundancy programme.  The Board is of course aware of the personal difficulties that it causes individuals and their families and regrets that the continuing difficult market conditions has made these redundancies necessary.

In response to the actions taken by the Board, our bankers have remained supportive, in particular recognising the steps we have taken to maintain a healthy cash headroom. The Board has renegotiated the Group's banking facilities over the year end to extend them for a further year to 1 July 2010.

Investment Division

During the year Artisan Properties has completed the leases on two new buildings, which were constructed by the Group's commercial division. One of these buildings is partially occupied by Artisan itself. Whilst the Board remain confident of the value of these investments, as the value of these buildings is calculated with reference to property investment yields, the carrying value of these properties is a little less than we had calculated when the projects were initiated.

These buildings have been mainly financed by a new facility from our bankers, who were pleased to fund these investments on satisfactory commercial terms.  As part of these arrangements, it was agreed that to support this new facility, new equity would be introduced. However after committing to the project and by the time it was appropriate to proceed, the Board was advised that stock market conditions were not receptive to an equity fund raise. Therefore it was agreed with our bank that as an alternative a convertible loan note, subordinated to their own debt, would be substituted. These funds were provided by Aspen Finance Limited, a company in which I am beneficially interested.

Dividend

The Board has carefully considered whether the dividend programme should be maintained. As background, the Group returned to the payment of dividends in February 2007 with the intention of building a long term programme of dividend payment.  The Board has decided that it is appropriate to recommend the payment of a final dividend of 0.75p per ordinary share (2007: final dividend of 1.5p). The results for the year to 30 June 2008 have delivered a profit, although not to the quantum achieved in 2007, and given the overall financial position of the Group the Board has decided that a modest dividend payment is in order despite the current financial turmoil in the markets.  If approved by shareholders, the dividend will be paid on 9 December 2008 to shareholders on the register on 21 November 2008. The ex-dividend date is 19 November 2008.

Outlook

The challenging market conditions look set to continue for sometime. Until the mortgage market returns to more normal conditions it is likely that both our residential and commercial divisions will remain under pressure. The Group faces a volatile and uncertain economy which is resulting in a lack of confidence and stagnation amongst both our commercial and residential customers. The Group will continue to be managed to maintain a strong cash position. We have valuable land assets and believe that there is latent demand for our products, that should facilitate a strong turn around when market conditions allow. The positive aspect of our current trading is that there remain some commercial customers who, looking forward, can see a need for new premises and are in early discussions for forward sales and lets, particularly on our newer sites. Property development has always been a cyclical business and the Board remains convinced of the Group's potential in the medium and long term.

This has been a challenging time for the management and staff of the Group and I can only commend the positive attitude that has been adopted in these poor market conditions.

Michael W Stevens

Chairman

15 October 2008

 

 

 

OPERATIONAL AND FINANCIAL REVIEW

Commercial Division

Following a record turnover in 2007, the commercial division produced a strong profit performance in 2008. The division delivered substantial forward sales and forward leases, including the construction of the first two properties for the Group's investment division. The commercial business sold 98,000ft2 of commercial property, consisting of 18,000ft2 of completed stock units and 80,000ft2 of forward sales contracted and in build (2007: 60,000ft2 of stock sales; 27,000ft2 of forward sales). This is an impressive level of forward sales.  

Artisan occupies part of Vantage House, one of the two investment properties, which now provides a useful showcase to demonstrate the appropriate quality of the product Artisan (UK) Developments is able to deliver to prospective clients. Turnover has been achieved because the division has taken steps over the past few years to build its land bank - there may be a slow down in trade at present, but land remains in short supply and the difficulties in obtaining suitable planning permission have not abated. A stock of units is available at each site other than our newest site. Further build of stock units will only be in response to sales progress.

The introduction of business rates on empty properties is a key issue for developers. Whilst in the short term it may drive down rental and sales values, at Artisan we regard it as a pernicious and inequitable scheme since empty properties do not need many of the services for which rates are largely charged. In the longer term we believe it will result in stock shortages (since developers will be discouraged from investing in speculative stock) and consequently drive up property values.

Residential Division

Rippon Homes has had to negotiate hard to complete every sale. Sales of 80 units at an average value of £189,000 (15 months to 30 June 2007: 160 units at an average value of £168,500) is, in current market conditions and we believe in comparison to our regional competitors, an encouraging result.  The increase in sale price reflects improved sales of four bedroom units, a configuration which most of our competitors have progressively reduced building. Our view of likely market trends has proven to be correct, with customers favouring these larger units even in a difficult residential market.

A variety of incentives have been used to persuade customers to purchase our houses. The most effective selling tool has been the ability to deal in part exchange properties. However the key competitive advantage at Rippon Homes has been the quality of its product. Rippon Homes has over recent years avoided purchasing sites at prices that would require over-dense plot ratios or a high volume of three storey units to prove commercially viable. This policy has proven attractive to customers, many of whom are willing to purchase a Rippon Homes property, even in the face of some extreme discounts offered by a number of our competitors.

Part exchange stocks are carefully managed and our sales team have proved adept at selling these part exchange properties and not allowing excessive stock to accrue.

We have created new innovative schemes, such as rent to buy, which on the limited scale offered have so far proved popular to customers, to compensate for the limited availability of mortgage funds. This scheme allows occupiers to purchase the house after 12 months at an agreed price, using their rental and Rippon incentive as contributions towards the deposit required. However, a new disincentive to sales is becoming more apparent. Valuers are very nervous of valuing properties for mortgage purposes and are downgrading agreed sales prices. In the tight mortgage market this is causing many sales to collapse.

Investment Properties

Artisan (UK) Properties was pleased to receive the completed buildings for the first two investment properties from the commercial division. These were delivered on time and without difficulty. The properties are fully utilised with the tenants including Artisan in 3,000ft2. At present the Group is concentrating on maintaining cash balances, and therefore no further investments are currently contemplated. Nevertheless they will be considered as opportunities arise.  

Land stocks

As stated, we have been cautious in buying new land. This has been counter-balanced by slower sales rates. The land stock of owned or secured plots at Rippon Homes is 378 plots (2007: 337). The management at Rippon Homes have addressed a land bank shortage from earlier years and now have a balanced stock level, especially in light of current trading conditions.

The commercial operation currently holds land, owned or secured of 25,300m2 (2007: 21,000m2). By controlling sites, the development team is able to create sales opportunities which can lead to forward sales. Whilst Artisan (UK) Developments is able to demonstrate its track record in delivering finished items, it is important to show confidence in a site by developing speculative stock. This stock is also needed to fulfil short lead time demand for space.  

Results

	Residential £m	Commercial £m	Investment £m	Central £m	Total £m
Turnover 2008 (12 Months)	15.1	10.7	0.2	(2.6)	23.4
2007 (15 months)	26.9	15.6	-	(1.5)	41.0
Operating Profit before group management charges
2008 (12 Months)	-	1.7	1.5	(1.3)	1.9
2007 (15 months)	2.6	2.4	0.3	(1.6)	3.7

The divisional analysis of profit is before Group management charges. The central column deducts the inter segment trading.

The tax credit for the year is £0.1m resulting in an effective tax rate of (18.5)% (2007: 24.1%). The reduction to standard rate resulting in a recovery of tax is primarily due to the surplus on investment property not being chargeable to tax in the current period and the utilisation of tax losses brought forward.

The net assets have grown 2.8% from £20.9m to £21.4m as a result of the retained profit for the year. There have been no significant changes to share capital during the year.

Debt and Banking

The Group has net borrowings of £19.7m (2007: £10.8m) resulting from the new investment property loan of £4.5m and the balance resulting from increased investment in work-in-progress. The Group has drawn bank debt of £32.6m (2006: £24.1m) resulting in substantial cash balances continuing to be available. The trading conditions have placed a strain on the Group's profitability and our banking arrangements have been re-negotiated since the year end to reflect this and the market conditions affecting the supply and pricing of credit.  Our revised bank facility is split between a LIBOR based facility and a Base Rate based facility. The Base Rate interest margin is adjustable to reflect the LIBOR based cost of funding, but this element of the facility allows positive bank balances in the Group to be offset against drawdown funds for the purposes of interest calculation allowing for an effective management of funding. The gearing ratio is now 91.9%, or 71.1% excluding the new investment property loan (2007: 51.5%).

On 1 August 2008 the Group issued £1.75m of convertible loan note to Aspen Finance Limited. As disclosed in this report and accounts Michael W Stevens has a beneficial interest in the shares held by Aspen Finance Limited. The issue of the Loan Notes fulfils an existing commitment agreed in 2007 on the part of Artisan to its bankers to support new funding for the Artisan Group's investment property. Although this was originally envisaged as equity funding, the Directors believed that the current market conditions were not conducive to equity fund raising and a convertible loan note structure was agreed as an alternative.

The Loan Notes are convertible at any time, at the holder's option, into ordinary shares of 20p each in the capital of the Company ('Ordinary Shares'). The conversion price is -  

(1) until 30th June 2009 34.125p per Ordinary Share, being the average mid-market closing price of the 

      Ordinary Shares over the previous ten dealing days;  

(2) from 1st July 2009 to 30th June 2010, 80p per Ordinary Share;  

(3) from 1st July 2010 to 30th June 2011, 85p per Ordinary Share; and  

(4) after 1st July 2011, 90p per Ordinary Share.  

The loan notes are subordinated to the banking facilities provided by National Westminster Bank plc, as part of The Royal Bank of Scotland plc, to the Company, but are otherwise repayable on 1st July 2012.  In the meantime, the Loan Notes carry interest at a rate 1.25% above the The National Westminster Bank plc Base Rate, from time to time, the same rate of interest as payable by the Group in respect of its investment property bank funding.  

If, as a result of converting the Loan Notes, Aspen Finance Limited acquired 30% or more of the voting rights in relation to the Company, it would be obliged to make an offer to the other shareholders to acquire their shares in accordance with Rule 9 of the Takeover Code.

Work in Progress

Work-in-progress has increased from £34.8m to £39.1m at the year end reflecting continued investment in both residential and commercial stocks. As indicated in the segmental analysis within the notes to the accounts, the larger part of the Group assets are invested in the residential activities reflecting the greater volume of trade and the greater cost of residential land. In addition, the commercial operations are able to negotiate some of their sales on a forward basis, which can reduce the level of investment required. The nature of the residential market is that, more than ever, customers wish to view their potential purchase prior to commitment and it is therefore essential to maintain a stock of finished properties with sufficient range of product types across the various sites.

Chris Musselle

Chief Executive

15 October 2008

 

 

 

 

ARTISAN (UK) PLC

GROUP INCOME STATEMENT

For The Year Ended 30 June 2008

	Note	Year ended 30 June 2008	Period 1 April 2006 to 31 Mar 2007
		£	£
REVENUE		23,412,951	41,032,156
COST OF SALES		(20,372,792)	(35,093,001)
		__________	__________
GROSS PROFIT		3,040,159	5,939,155
Other operating income		475,946	410,264
Administrative expenses		(2,823,869)	(2,913,381)
		__________	__________
		692,236	3,436,038
Revaluation surplus on investment properties	5	1,207,111	261,684
		__________	__________
Operating profit		1,899,347	3,697,722
Finance income		13,893	18,829
Finance expense		(1,323,007)	(933,642)
		__________	__________
PROFIT BEFORE TAXATION		590,233	2,782,909
Tax credit/(expense)		109,022	(671,032)
		__________	__________
PROFIT FOR THE YEAR ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT		699,255	2,111,877
		__________	__________
Basic and diluted earnings per share	4	8.51p	25.71p

ARTISAN (UK) PLC

GROUP STATEMENT OF CHANGES IN EQUITY

		Share		Capital			Own
	Share	premium	Merger	redemption	Revaluation	Retained	shares
	capital	account	reserve	reserve	reserve	earnings	held	Total
	£	£	£	£	£	£	£	£
At 1 April 2006	1,642,647	10,356,668	515,569	91,750	-	6,207,148	-	18,813,782
Profit and total income and expense
recognised for the period	-	-	-	-	-	2,111,877	-	2,111,877
Dividends paid	-	-	-	-	-	(98,384)	-	(98,384)
Issue of shares	3	15	-	-	-	-	-	18
Purchase of own shares	-	-	-	-	-	-	(19,065)	(19,065)
Credit in respect of
employee share schemes	-	-	-	-	-	51,957	-	51,957
	_________	_________	_________	_________	_________	_________	_________	_________
At 30 June 2007	1,642,650	10,356,683	515,569	91,750	-	8,272,598	(19,065)	20,860,185
Revaluation of owner occupied property
and net income recognised directly in equity	-	-	-	-	74,840	-	-	74,840
Profit for the year	-	-	-	-	-	699,255	-	699,255
	_________	_________	_________	_________	_________	_________	_________	_________
Total recognised income and expense for the year	-	-	-	-	74,840	699,255	-	774,095
Dividends paid	-	-	-	-	-	(221,364)	-	(221,364)
Credit in respect of
employee share schemes	-	-	-	-	-	22,572	-	22,572
	_________	_________	_________	_________	_________	_________	_________	_________
At 30 June 2008	1,642,650	10,356,683	515,569	91,750	74,840	8,773,061	(19,065)	21,435,488
	_________	_________	_________	_________	_________	_________	_________	_________

ARTISAN (UK) PLC

GROUP BALANCE SHEET

As at 30 June 2008

		30 June 2008	30 June 2007
		£	£
ASSETS
Non-current assets
Intangible assets		2,454,760	2,454,760
Investment properties	5	4,147,850	1,515,897
Property, plant and equipment		955,039	437,058
Other receivables		394,634	-
		__________	__________
		7,952,283	4,407,715
		__________	__________
CURRENT ASSETS
Inventories		39,101,427	34,792,561
Trade and other receivables		1,118,454	1,478,042
Current tax recoverable		99,733	-
Cash and cash equivalents		1,497	1,126
		__________	__________
		40,321,111	36,271,729
		__________	__________
Total assets		48,273,394	40,679,444
		__________	__________
LIABILITIES
Non-current liabilities
Interest bearing loans and borrowings		(19,704,561)	(10,752,945)
		__________	__________
Current liabilities
Trade and other payables		(6,689,273)	(8,098,715)
Current tax provision		-	(523,527)
Provisions		(444,072)	(444,072)
		__________	__________
		(7,133,345)	(9,066,314)
		__________	__________
Total liabilities		(26,837,906)	(19,819,259)
		__________	__________
NET ASSETS		21,435,488	20,860,185
		___ __ ____	___ __ ____
EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT COMPANY
Called up share capital		1,642,650	1,642,650
Share premium account		10,356,683	10,356,683
Merger reserve		515,569	515,569
Capital redemption reserve		91,750	91,750
Revaluation reserve		74,840	-
Retained earnings		8,773,061	8,272,598
Own shares		(19,065)	(19,065)
		__________	__________
TOTAL EQUITY		21,435,488	20,860,185
		___ __ ____	___ __ ____

ARTISAN (UK) PLC

GROUP CASH FLOW STATEMENT

For The Year Ended 30 June 2008

	Note	Year ended  30 June 2008	Period 1 April 2006 to 31 Mar 2007
		£	£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation		590,233	2,782,909
Depreciation		69,909	59,598
Finance income		(13,893)	(18,829)
Finance expense		1,323,007	933,642
Profit on disposal of current asset investment		-	(309)
Share based payments charge		22,572	51,957
Profit on disposal of property, plant and equipment		(1,281)	(3,190)
Revaluation surplus on investment properties		(1,207,111)	(261,684)
Profit on sale of investment property		(145,537)	-
		__________	__________
Operating profit before changes in working capital and provisions		637,899	3,544,094
Increase in inventories		(4,308,866)	(5,428,981)
Increase in trade and other receivables		(35,046)	(235,957)
Decrease in trade and other payables		(1,227,624)	(205,997)
Decrease in provisions		-	(3,673)
		__________	__________
Cash used by operations		(4,933,637)	(2,330,514)
Finance income received		13,893	18,829
Finance costs paid		(1,293,597)	(898,818)
Tax paid		(514,238)	(486,025)
		__________	__________
Net cash used in operations		(6,727,579)	(3,696,528)
		__________	__________
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		(44,387)	(145,850)
Capital expenditure on investment properties		(2,449,981)	(238,767)
Proceeds from sale of investment property		490,538	-
Proceeds from sale of property, plant and equipment		1,528	5,163
Proceeds from sale of current asset investments		-	1,309
		__________	__________
Net cash used in investing activities		(2,002,302)	(378,145)
		__________	__________
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid		(221,364)	(98,384)
Proceeds from the issue of ordinary share capital		-	18
Purchase of own shares		-	(19,065)
Movement on borrowings		8,951,616	4,189,880
		__________	__________
Net cash flow from financing activities		8,730,252	4,072,449
		__________	__________
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS		371	(2,224)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR		1,126	3,350
		__________	__________
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR		1,497	1,126
		___ __ ____	___ __ ____

Notes

1       Basis of preparation

The financial statements included in this preliminary announcement have been prepared using recognition and measurement principles consistent with those of International Financial Reporting Standards ('IFRS') issued by the International Accounting Standards Board as endorsed by the European Union, and with those parts of the Companies Act 1985 applicable to companies reporting under IFRS.

Accounting policies have been applied consistently to all periods presented in the consolidated financial statements.

2       Status of financial information

The financial information contained in this preliminary announcement does not constitute the Company's consolidated statutory financial statements for the year ended 30 June 2008 and the 15 months ended 30 June 2007, but is derived from those financial statements. The financial statements for the 15 months ended 30 June 2007 have been delivered to the Registrar of Companies. The financial statements for the year ended 30 June 2008 will be delivered following the Company's Annual General Meeting. The auditors have reported on those financial statements; their reports were unqualified and did not contain statements under section 237 (2) or (3) of the Companies Act 1985.

The annual report and financial statements will be posted to shareholders on 17 October 2008, copies of which will also be available from the Company Secretary, Artisan (UK) plc, Vantage House, Vantage Park, Washingley Road, Huntingdon, Cambridgeshire, PE29 6SR.

3       Dividends

                   Amounts paid to equity holders in the year:

		Period
	Year ended	1 April 2006 to
	30 June 2008	30 June 2007
	£	£
Final dividend for the period ended 30 June 2007
of 1.5p (year ended 31 March 2006 - Nil p) per share	122,980	-
Interim dividend for the year ended 30 June 2008
of 1.2p (15 months ended 30 June 2007 - 1.2p) per share	98,384	98,384
	_________	_________
	221,364	98,384
	_________	_________

The Directors have proposed a final dividend for the year of 0.75p (2007 - 1.5p) per ordinary share amounting to £61,490 (2007 - £122,980). This dividend has not been accrued at the balance sheet date.

4       Earnings per share

The basic earnings per share is calculated by dividing the profit after taxation by the weighted average number of shares in issue. 

	2008	2007
	Number	Number
The weighted average number of shares were:
Basic weighted average number of shares	8,213,250	8,213,242
	__________	__________

There were no dilutive potential ordinary shares in 2008 or 2007.

5       Investment property

        Fair value

	Period
		1 April
	Year ended	2006 to
	30 June	30 June
	2008	2007
	£	£
At beginning of period	1,515,897	-
Additions    - transfer from trading stock	-	804,218
- capital expenditure	2,238,753	449,995
Transfer to property, plant and equipment in respect of
owner occupied property	(468,910)	-
Disposals	(345,001)	-
	__________	__________
	2,940,739	1,254,213
Revaluations included in income statement	1,207,111	261,684
	__________	__________
At end of year	4,147,850	1,515,897
	__________	__________

As at 30 June 2008, the historical cost of investment property owned by the Group was £2,779,931 (2007 - £1,254,213).

The fair values of the Group's investment properties at 30 June 2008 have been arrived at on the basis of open market value by the directors, who are suitably experienced, having regard to professional advice and sales evidence during the year.

During the year £123,777 (15 months ended 30 June 2007 - £nil) was recognised in the income statement as revenue in respect of rental income from investment properties. Direct operating expenses arising from investment properties amounted to £2,200 (15 months ended 30 June 2007 - £nil)

6    The Annual General Meeting will be held at the offices of Brewin Dolphin Limited, 12 Smithfield Street, London, EC1A 9BD 
      on 11 November 2008 at 11.30am.

      Copies of this announcement will be available to the public, free of charge, from the offices of Brewin Dolphin Limited, Lisbon Street, Leeds, 
      LS1 4LX during normal office hours, with the exception of Saturdays, Sundays and bank holidays, for 14 days from today.

 

END

 

 

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