Final Results

10 June 2011 GSC Property Holdings plc PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE 12 MONTHS TO 31 DECEMBER 2010 Key points: * Operating profit increased by 31.4% to Â£7,596,959 (2009: Â£5,781,454) * Turnover Â£7,729,174 (2009: Â£8,342,418) * Full year dividend 1.5 pence (net) per share (2009: 3.0 pence) * Net asset value at year end 161 pence per share (2009: 176 pence) Mark Rubin, Chief Executive commented: "Our strategy, which has served the Company well for many years, remains unchanged. We continue to search for property investments, at the right price, which will fit our risk averse business model. GSC's skill is in generating value from its portfolio and I am confident that even in the current tough conditions, the Company will continue to deliver good results backed by sound finances." ------------------------------------ For further information please contact: Mark Rubin, Chief Executive 01702 293300 Jonathan Williams, Bishop Fleming (Corporate Adviser) 0117 910 0250 Anthony Spiro, Spiro Financial (Press and Investor Relations) 020 8336 6196 ------------------------------------ GSC Property Holdings specialises in commercial property investment in the UK. The company's strategy is to spread risk through building a diverse portfolio to minimise exposure to any single end use or geographical area. Our objective is to add maximum value for shareholders. ------------------------------------ CHAIRMAN'S STATEMENT The year to 31 December 2010 has seen a continuation of the generally demanding conditions in the UK property investment market. GSC, with its broad spread of good quality properties backed by sound covenants, has delivered another solid set of results. While the UK economy has emerged from recession its rate of recovery remains pedestrian with few signs of any sustained acceleration. The Company's turnover was Â£7,729,174 (2009: Â£ 8,342,418) reflecting the stable and reliable nature of the investment properties. The operating profit for the period increased by 31.4 per cent to Â£7,596,959 (2009: Â£5,781,454). As announced at the time of the Interim Statement, in June 2010 the Company sold its interest in a supermarket in Wakefield, which produced a loss of Â£ 675,000. As the premises were costing GSC in the region of Â£100,000 per annum in interest and rates, the decision was taken to dispose of the holding, albeit at a loss. The financial performance for the year under review was satisfactory and again demonstrated the inherent strength of the Company. GSC is not deal driven, we are patient investors and will wait until the right opportunity is available before committing the Company's funds. We prefer to buy properties that offer genuine opportunities to release hidden value, rather than speculate. An example of the way we improve properties and generate value is the fair value adjustment of Â£2 million, shown in the Profit and Loss Account, attributable to the uplift in the book value of Maitland House, the Company's commercial property in Southend. This follows the substantial improvement programme carried out by the Company following its purchase of the property in December 2005. The Board continues to adopt a cautious position and last year commented that in view of the general market uncertainty it was prudent to conserve cash and accordingly reduced the final dividend. The Board has concluded that it should maintain that stance and has decided not to declare a final dividend for the year ended 31 December 2010. The Board is considering paying an annual dividend to shareholders in the future, which in view of the administration costs may be more appropriate for a company of our size. The total dividend for the year is 1.5 pence per share (2009: 3.0 pence per share). The Annual General Meeting of the Company will be held on 30th June 2011 at 3rd Floor, Dencora Court, Tyler's Avenue, Southend on Sea, Essex, SS1 2BB at 4:30pm. GSC's property investment activity in the year under review was low as market conditions remained generally depressed, although towards the end of the year we noted some early signs of improvement. Our vacant properties were starting to attract a reasonable number of viewings although no firm offers have yet materialised. We have also noted an improvement in the lettings market for offices, which has allowed yields to fall a little. This was particularly noticeable towards the end of the calendar year, possibly as investors attempted to balance their loan book before the year end. Currently the number of vacant sites is very small and all are under offer. Our bad debts are negligible although we do have a number of slow payers but they are not giving cause for concern. GSC's balance sheet remains very sound and reflects our consistent policy of entering into long term loan agreements with blue chip lenders. While these arrangements do not allow us to take advantage of current low rates in the short term, they do give us security over the long term, which we consider to be more important and of greater strategic value. Our banking arrangements stretch back many years and are built on excellent relationships. Our strategy, which has served the Company well for many years, remains unchanged. We continue to search for property investments, at the right price, which will fit our risk averse business model. GSC's skill is in generating value from its portfolio and I am confident that even in the current tough conditions, the Company will continue to deliver good results backed by sound finances. Alan Gershlick Chairman 10 June 2011 EXTRACT FROM AUDITED FULL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CONSOLIDATED PROFIT AND LOSS ACCOUNT 2010 2009 Â£ Â£ Group Turnover 7,729,174 8,342,418 Cost of sales (153,515) (127,852) --------------- --------------- GROSS PROFIT 7,575,659 8,214,566 Distribution costs (16,873) (16,354) Administrative expenses (1,961,827) (2,416,758) Adjustment held for Sale - Fair Value 2,000,000 - --------------- --------------- Group Operating Profit 7,596,959 5,781,454 Net loss on sale of Investment Property (675,000) (175,000) --------------- --------------- Profit on Ordinary Activities before 6,921,959 5,606,454 Interest Interest receivable and similar income 259 79,815 Interest payable (4,944,888) (5,287,559) --------------- --------------- Profit on ordinary activities before 1,977,330 398,710 taxation Tax on profit on ordinary activities (17,406) - --------------- --------------- Profit for the Financial Year 1,959,924 398,710 ======= ======= Basic Earnings per share (pence) 18.72 3.81 Adjusted Earnings per share (pence) (12.48) 4.77 Weighted average number of ordinary shares 10,468,000 10,468,000 in issue STATEMENT OF GROUP TOTAL RECOGNISED GAINS AND LOSSES 2010 2009 Â£ Â£ Profit for the financial year attributable to 1,959,924 398,710 the shareholders Unrealised (deficit) on revaluation of (100,000) - tangible fixed assets Unrealised (deficit) / surplus on revaluation (3,166,000) 100,000 of investment properties ---------------- --------------- Total gains and losses recognised since the (1,306,076) 498,710 last annual report ======== ======== NOTE OF GROUP HISTORICAL COST PROFIT AND LOSS 2010 2009 Â£ Â£ Profit before tax 1,977,330 398,710 Realisation of valuation gains of previous (419,500) (74,016) periods ------------- ------------- Historical cost profit before tax 1,557,830 324,694 ======== ======== CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2010 2010 2009 Â£ Â£ FIXED ASSETS Intangible assets 246,616 264,232 Tangible assets 4,026,164 4,240,488 Investment Properties 79,805,000 84,371,001 --------------- --------------- 84,077,780 88,875,721 --------------- --------------- CURRENT ASSETS Stocks 22,005,676 20,010,391 Debtors 1,220,070 923,194 Investments 200 200 Cash at bank 880,505 1,199,313 --------------- --------------- 24,106,451 22,133,098 --------------- --------------- CREDITORS: Amounts falling due within one year (6,992,752) (6,498,398) --------------- --------------- NET CURRENT ASSETS 17,113,699 15,634,700 --------------- --------------- TOTAL ASSETS LESS CURRENT LIABILITIES 101,191,479 104,510,421 CREDITORS: Amounts falling due after more than (84,304,991) (86,056,157) one year --------------- --------------- 16,886,488 18,454,264 ========= ========= CAPITAL AND RESERVES Called-up equity share capital 104,680 104,680 Share premium account 1,414,350 1,414,350 Revaluation Reserve 9,690,326 12,536,826 Profit and loss account 5,677,132 4,398,408 --------------- --------------- SHAREHOLDERS' FUNDS 16,886,488 18,454,264 ========= ========= NOTES TO THE FINAL RESULTS 1. DIVIDENDS 2010 2009 Â£ Â£ Interim dividend paid at 1.5p per share (2009 - 157,020 209,360 2.0p) Prior period final dividend paid at 1.0p per 104,680 157,020 share (2009 - 1.5p) ------------- ------------- 261,700 366,380 ======= ======= 2. EARNINGS PER SHARE Basic earnings per share have been calculated to report only distributable earnings arising in the period and do not include movements through the revaluation reserve. Adjusted earnings per share have been calculated to include total earnings attributable to equity shareholders arising in the period. The reconciliation between the two is shown below: 2010 2009 Â£ Â£ Profit after tax attributable to the 1,959,924 398,710 shareholders Unrealised (losses) arising on the (3,266,000) 100,000 revaluation of investment property ---------------- ---------------- Total (losses) / gains attributable to the (1,306,076) 498,710 shareholders ========= ========= Adjusted shares in issue 10,468,000 10,468,000 Pence Pence Basic earnings per share 18.72 3.81 Unrealised (losses) / gains arising on the (31.20) 0.96 revaluation of investment properties ------------- ------------- Adjusted (losses) / earnings per share (12.48) 4.77 ======== ======== 3. SHARE CAPITAL Authorised share capital 2010 2009 Â£ Â£ 100,000,000 Ordinary shares of 1,000,000 1,000,000 1p each ======== ======== 2010 2010 2009 2009 No Â£ No Â£ Allotted and called up Ordinary shares of 1p each 10,468,000 104,680 10,468,000 104,680 ======== ======= ======== ======== 4. GROUP RESERVES Share premium account 2010 2009 Â£ Â£ Balance brought forward 1,414,350 1,414,350 Premium on shares issued in the year - - ------------- ------------- Balance carried forward 1,414,350 1,414,350 ======= ======= Revaluation reserve 2010 2009 Â£ Â£ Balance brought forward 12,536,826 12,362,810 Revaluation of investments in the year (3,266,000) 100,000 Transfer to profit and loss account on 419,500 74,016 disposal of properties --------------- --------------- Balance carried forward 9,690,326 12,536,826 ======== ======== Profit and loss account 2010 2009 Â£ Â£ Balance brought forward 4,398,408 4,440,094 (Loss) / profit for the year 1,959,924 398,710 Transfer from revaluation reserve on disposal of (419,500) (74,016) properties Equity dividends paid (261,700) (366,380) -------------- -------------- 5,677,132 4,398,408 ======== ======== 5. ANNUAL GENERAL MEETING The Annual General Meeting of the Company will be held on 30th June 2011 at 3rd Floor, Dencora Court, Tyler's Avenue, Southend on Sea, Essex, SS1 2BB at 4: 30pm.

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