Final Results

Wynnstay Properties PLC 15 June 2004 WYNNSTAY PROPERTIES PLC 15 JUNE 2004 Wynnstay Properties PLC - 'the Company' or 'Wynnstay' Preliminary Results for Year Ended 25th March 2004 HIGHLIGHTS Wynnstay Properties, the AIM quoted property investment company, announces its results for the year ended 25th March 2004. Highlights include: Profits before taxation of £732,000, close to last year's record level of £755,000 Net assets increase by 11.4% to £10.4 million Dividends increase by 5.6% to 7.6 pence per share Commenting on the results, Chairman Philip Collins said: 'This has been another very satisfactory year for Wynnstay. The significant increase in net asset value is particularly pleasing. It demonstrates the progress that we have made in upgrading and repositioning the portfolio, with greater emphasis over recent years on acquiring properties in central southern England, primarily within the industrial sector.' The Company's AGM will be held at 12 noon on 22nd July 2004 at The Royal Automobile Club, 89 Pall Mall, London SW1. Contact details: Philip Collins - Chairman Peter Kirkland - Finance Director Wynnstay Properties plc Tel: 020 7626 3057 Wynnstay Properties PLC - 'the Company' or 'Wynnstay' Preliminary Results for Year Ended 25th March 2004 CHAIRMAN'S STATEMENT I am again pleased to report on another very satisfactory set of results, with profits before taxation close to last year's record level and Wynnstay's net asset value at 25th March 2004 increasing to £10.4million, compared with £9.4million at the same time last year. Change 2004 2003 • Profit before property disposals and taxation - 0.5% £651,000 £654,000 • Profit on ordinary activities before taxation - 3.0% £732,000 £755,000 • Net asset value per share + 11.4% 331p 297p • Basic and Fully Diluted Earnings per share - 8.6% 16.9p 18.5p • Dividends per share + 5.6% 7.6p 7.2p As anticipated at the interim stage, rental income showed a satisfactory increase to £1,555,000, compared with £1,504,000 last year. This reflects the benefit of rent reviews, lease renewals and new lettings on a number of properties and the addition to the portfolio of the property at Chessington, Surrey acquired in November 2003. The portfolio was fully let and income-producing throughout the year, with the exception of two industrial units, where the leases expired and the tenants decided not to renew. One of these two units, vacated in September 2003, was relet shortly before the year-end. The lease of the other unit expired in February 2004 but is now occupied on an interim basis by a company having an urgent need for additional space, with a view to a new letting being negotiated over the coming months. Property outgoings increased over those incurred in the last financial year largely as a result of the need to carry out remedial works at this unit. Considerable progress has been made over recent years in implementing the policy, announced several years ago, of upgrading and repositioning Wynnstay's portfolio. This has resulted in the profitable disposal of a number of older properties where growth prospects appeared limited and the selective acquisition of higher quality, more modern properties in central southern England, especially in the industrial sector, that are likely to further enhance the portfolio in the medium to longer term. Implementation of this policy will continue over the next few years and it is therefore likely that we will be selling some further properties where market conditions indicate that we can do this profitably. But in planning and making disposals we will remain mindful of the need to maintain a strong rental income stream. To this end, towards the end of the financial year, we announced the disposal of our property in Sheffield, comprising a banking hall and offices, which realised a net profit before taxation of £81,000. The Board considered the growth prospects in relation to this property to be limited and its location was isolated from the rest of the portfolio. I reported at the half-year on our acquisition of the Oakcroft Business Centre at Chessington, comprising three 2-storey modern units. In addition we inspected and reviewed a number of other potential acquisitions and other properties are currently under consideration. At the year end, the portfolio was independently valued at £17.45 million which, by value, comprised 47% industrial property, 29% offices and 24% retail. The resulting surplus for the year of £779,000 contributed towards the 11.4% increase in net asset value from 297p per share last year to 331p per share. Net gearing at the year-end was 58%, unchanged from last year, thereby providing the opportunity to increase borrowings in order to fund further selective expansion of the portfolio. In the light of these results, the Directors are recommending a total dividend for the year of 7.6p per share, representing an increase of 5.6% over that paid in the previous year. This will be paid on 29th July 2004 to shareholders on the register at 2nd July 2004. At last year's Annual General Meeting questions were raised about Wynnstay's representation in the City and how the number of shareholders might be expanded. In this connection we announced at the end of February that Charles Stanley & Co. Limited had been appointed as the Company's new brokers and nominated advisers. Charles Stanley specialises in providing corporate finance, broking and research services to smaller listed companies including the property sector. Furthermore, it is one of the largest stockbroking firms in the United Kingdom dedicated to serving private investors and has offices throughout the country. It is also pleasing to note increased activity on the share register and I would like to take this opportunity to welcome all new shareholders to Wynnstay. The interest rate cycle has now turned, with rates having increased four times since November 2003, having previously been at a 40 year low for much of last year. Over one-half of Wynnstay's borrowings have been fixed until June 2006, and thus our exposure to rate increases is limited. No one is presently suggesting that rates are likely to return to the high levels of the 1980's and early 1990's but we will continue to borrow prudently in order to expand Wynnstay's business. Looking back over the past five years, shareholders will note that there has been a significant change in Wynnstay's performance. During this period, dividends paid to shareholders have increased by 27%; whilst net asset value per share has increased by 52%. This performance has been reflected in a substantial increase in the quoted price of Wynnstay's shares. Looking forward, our main priority is to continue with the profitable expansion of Wynnstay's portfolio, providing shareholders with further income and capital growth, and to continue to enlarge our shareholder base. The current year has commenced satisfactorily, although it is as yet too early to anticipate the likely outcome for 2004-2005. I will report to you on further progress and developments with our interim results towards the end of this year. Last year's Annual General Meeting attracted a record number of shareholders, and I am hopeful that at least as many will be able to attend this year's Meeting at the Royal Automobile Club on Thursday 22nd July 2004. As always on this occasion, there will be an opportunity to ask questions and to meet other shareholders as well as representatives from our professional advisers, including our new brokers. Our small dedicated management team have continued to work effectively with our professional advisers in looking after the Company's interests during the year and our thanks are due to them for contributing to a successful outcome. Philip G H Collins Chairman CONSOLIDATED PROFIT AND LOSS ACCOUNT YEAR ENDED 25TH MARCH 2004 2004 2003 £'000 £'000 Turnover Gross Rental Income 1,555 1,504 Fees and Commissions 20 18 -------------- -------------- 1,575 1,522 Property Outgoings (82) (63) -------------- -------------- 1,493 1,459 Administrative Expenses (474) (452) -------------- -------------- Operating Profit 1,019 1,007 Profit on Disposal of Investment Properties 81 101 -------------- -------------- 1,100 1,108 Finance Costs Interest Payable (378) (368) Investment Income 10 15 -------------- -------------- (368) (353) -------------- -------------- Profit on Ordinary Activities before Taxation 732 755 Taxation on Profit from Ordinary Activities (198) (171) -------------- -------------- Profit after Taxation Attributable to Ordinary Shareholders 534 584 Dividends per share:- Interim Paid: 2.2p 2003: 2.1p (69) (66) Final Payable: 5.4p 2003: 5.1p (171) (161) ------ ------ -------------- -------------- Total: 7.6p 7.2p (240) (227) ------ ------ -------------- -------------- Retained Profit for the Financial Year Wynnstay Properties PLC 292 347 Subsidiary Companies 2 10 -------------- -------------- 294 357 ======== ======== Basic and Fully-Diluted Earnings per Share 16.9p 18.5p Normalised Earnings per Share 14.4p 15.7p CONSOLIDATED BALANCE SHEET AT 25TH MARCH 2004 2004 2003 £'000 £'000 Fixed Assets Tangible Assets 17,470 15,517 Investments 1 1 ------------- ------------- 17,471 15,518 Current Assets Debtors 60 69 Cash at Bank and in Hand 515 287 ------------- ------------- 575 356 Creditors: Amounts falling due within one year (837) (712) ------------- ------------- Net Current Liabilities (262) (356) ------------- ------------- Total Assets Less Current Liabilities 17,209 15,162 Creditors: Amounts falling due after more than one year (6,600) (5,700) ------------- ------------- 10,609 9,462 Provisions for Liabilities and Charges (160) (86) ------------- ------------- Net Assets 10,449 9,376 ======= ======= Capital and Reserves: Share Capital 789 789 Reserves Capital Redemption Reserve 205 205 Share Premium Account 1,135 1,135 Capital Reserve 151 151 Revaluation Reserve 4,505 3,797 ------------- ------------- Non-Distributable Reserves 5,996 5,288 Profit and Loss Account 3,664 3,299 ------------- ------------- Equity Shareholders' Funds 10,449 9,376 ======= ======= CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 25TH MARCH 2004 2004 2003 £'000 £'000 Cash Flow from Operating Activities 1,073 1,081 Returns on Investment and Servicing of Finance Interest Received 10 7 Interest Paid (306) (374) ---------------- ---------------- Net Cash (Outflow) from Returns on Investment and Servicing of Finance (296) (367) Taxation Paid (118) (144) Capital Expenditure and Financial Investment Purchase of Tangible Fixed Assets (2,006) (1) Disposal of Tangible Fixed Assets 905 266 Sinking Fund Policy (Maturity Proceeds) - 65 ---------------- ---------------- Net Cash (Outflow)/Inflow from Investing Activities (1,101) 330 Equity Dividends Paid (230) (216) ---------------- ---------------- Net Cash (Outflow)/Inflow before Financing (672) 684 Financing Drawdown of Bank Loan 1,800 - Repayment of Bank Loan (900) (750) ---------------- ---------------- Increase/(Decrease) in Cash in the Period 228 (66) ========= ========= Reconciliation of Net Cash Flow to Movement in Net Debt Increase/(Decrease) in Cash in the Period 228 (66) Cash (Outflow)/Inflow from Debt Financing (900) 750 ---------------- ---------------- Movement in Net Debt in the Period (672) 684 Net Debt at 25th March 2003 (5,413) (6,097) ---------------- ---------------- Net Debt at 25th March 2004 (6,085) (5,413) ========= ========= OTHER FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2004 2004 2003 £'000 £'000 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES Profit for the Financial Year after Taxation 534 584 Taxation on Realised Property Revaluation - (6) Unrealised Surplus on Revaluation of Investment Properties 779 1,110 ------------------ ------------------ Total Recognised Gains and Losses for the Year 1,313 1,688 ========== ========== RECONCILIATION OF MOVEMENT OF SHAREHOLDERS' FUNDS Opening Shareholders' Funds as at 26th March 2003 9,376 7,915 Profit for the Financial Year after Taxation 534 584 Dividends (240) (227) Other recognised Gains and Losses - as per Statement of Total Recognised Gains and Losses (as above) 779 1,104 ------------------ ------------------ Closing Shareholders' Funds as at 25th March 2004 10,449 9,376 ========== ========== NOTE OF HISTORICAL COST PROFITS AND LOSSES Profit on Ordinary Activities before Taxation 732 755 Realisation of Sinking Fund Investment Policy - 56 Realisation of Property Revaluation Gains on Previous Years 71 93 ------------------ ------------------ Historical Cost Profit on Ordinary Activities before Taxation 803 904 ========== ========== Historical Cost Profit for the Year Retained after Taxation and Dividends 365 506 ========== ========== Notes 1. The financial information above does not constitute full accounts within the meaning of Section 240 Companies Act 1985 as amended (the 'Act'). Full accounts in respect of the year ended 25th March 2003, on which the auditors reported without qualification and which contained no statement under Section 237(2) or (3) of the Act, have been delivered to the Registrar of Companies. 2. Basic and fully-diluted earnings per share have been calculated on profits after taxation attributable to Shareholders of £534,000 (2003: £584,000) and on 3,155,267 ordinary shares being the weighted average number of shares in issue in both periods. Normalised earnings per share have been calculated on profits after taxation attributable to Shareholders, excluding profit on property disposals, of £453,000 (2003: £495,000) on the same weighted average of 3,155,267 shares. 3. A final dividend of 5.4p (2003: 5.1p) per share is being recommended and will be paid on 29th July 2004 to Shareholders on the register at the close of business on 2nd July 2004. 4. The 2004 Annual Report & Financial Statements will be posted to Shareholders shortly and copies may be obtained by writing to the Secretary, Wynnstay Properties PLC, Cleary Court, 21 St. Swithin's Lane, London EC4N 8AD. 5. The Company's Annual General Meeting will be held at 12 noon on Thursday 22nd July 2004 at The Royal Automobile Club, 89 Pall Mall, London SW1Y 5HS. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Wynnstay Properties (WSP)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today