Half-yearly Report

28 September 2011 GSC Property Holdings plc Interim results for the 6 months to 30 June 2011 Highlights: * Profit before tax on ordinary activities rose to Â£336,181 (2010: loss Â£185,572) * Rental income remained steady at Â£3,581,625 (2010: Â£3,644,552) * Operating profit before property disposals little changed at Â£2,883,169 (2010: Â£2,932,432) Mark Rubin, Chief Executive commented: "GSC is financially sound with a management team well placed to react quickly when the right opportunities arise. We remain confident that as market conditions improve the company will be well placed to generate enhanced returns for shareholders". For further information please contact: Mark Rubin, Chief Executive 01702 293 300 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 FOR THE CONSOLIDATED UNAUDITED GROUP RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2011 Trading in the six months to 30 June 2011 continues to be at a similar level to that in the same period in the past two years. While this may seem unexciting it is very steady and satisfactory, which is an encouraging and reassuring performance considering the difficult markets in which we operate. The property investment market shows few signs of sustained recovery, reflecting the low level of activity in the economy as a whole. Companies and investors have cash to spend but are reluctant to take the risk in these uncertain times. Operating profit at Â£2,883,169 was little changed from last year's level of Â£2,932,432. This was achieved on rental income of Â£3,581,625 compared with Â£3,644,552 in the equivalent period last year. Earnings per share were 3.21 pence (2010: loss 1.77 pence). In my statement of 10 June 2011 with the results for the year to 31 December 2010 I commented that the Board continued to adopt a cautious position and in view of the general market uncertainty it was prudent to conserve cash. The Board was also considering paying an annual dividend to shareholders in the future, which in view of the administration costs was more appropriate for a company of our size. As conditions have not improved the Board is implementing that policy and accordingly will not declare a dividend for the period ended 30 June 2011 (2010: 1.5 pence per share). The Board will keep this annual dividend policy under review should market conditions improve. There were no changes to the Company's property portfolio during the period. Although this is disappointing for an investment company it does demonstrate the quality of GSC's existing estate and management's patient and disciplined approach, rejecting opportunities which do not meet the appropriate financial criteria. There is no benefit in transactions which do not offer genuine opportunities to enhance shareholder value. Management will continue to scour the market for the right deals but will not be drawn into activity for the wrong reasons. The number of vacant properties across the Company's estate remains at a low level and similar to last year, while bad debts are minimal. The outlook is difficult to determine as market uncertainty, driven by forces outside our control, continues. GSC is financially sound with a management team well placed to react quickly when the right opportunities arise. We remain confident that as market conditions improve the company will be well placed to generate enhanced returns for shareholders. Alan Gershlick Chairman 28 September 2011 CONSOLIDATED PROFIT AND LOSS ACCOUNT For the half year ended 30 June 2011 note 6 months to 6 months to 12 months to 30 Jun 2011 30 Jun 2010 31 Dec 2010 (unaudited) (unaudited) (audited) Â£ Â£ Â£ Turnover 2 3,581,625 3,644,552 7,729,174 ------------- ------------- ------------- Gross profit 3,539,225 3,601,152 7,575,659 Administrative and (656,056) (668,720) (1,978,700) distribution expenses Adjustment to value of - - 2,000,000 property held for resale ------------- ------------- ------------- Operating profit 2,883,169 2,932,432 7,596,959 Net loss on sale of - (675,000) (675,000) Investment Property ------------- ------------- ------------- Profit before interest 2,883,169 2,257,432 6,921,959 Interest payable (net) (2,546,988) (2,443,004) (4,944,629) ------------- ------------- ------------- Profit / (Loss) on ordinary 336,181 (185,572) 1,977,330 activities before tax Tax on profit on ordinary 3 - - (17,406) activities ------------- ------------- ------------- Profit / (Loss) for the 336,181 (185,572) 1,959,924 period ============= ============= ============= Earnings per ordinary 4 3.21 (1.77) (12.48) share (p) Statement of total realised gains and losses 6 months to 6 months to 12 months to 30 Jun 2011 30 Jun 2010 31 Dec 2010 (unaudited) (unaudited) (audited) Â£ Â£ Â£ Profit / (Loss) for the 336,181 (185,572) 1,959,924 financial period Unrealised deficit on - - (100,000) revaluation of tangible fixed assets Unrealised (deficit) on - - (3,166,000) revaluation of property ------------- ------------- ------------- Total recognised gains and 336,181 (185,572) (1,306,076) losses for the period ============= ============= ============= CONSOLIDATED BALANCE SHEET At 30 June 2011 Unaudited Unaudited 31 December as at as at 2010 30 June 2011 30 June 2010 (audited) Note Â£ Â£ Â£ Fixed Assets Intangible assets 237,808 255,426 246,616 Tangible assets 3,977,985 4,181,997 4,026,164 Investment properties 5 79,805,000 82,971,001 79,805,000 ------------ ------------- ------------ 84,020,793 87,408,424 84,077,780 ============ ============= ============ Current assets Stock 11,163 14,641 5,676 Asset held for sale 22,000,000 20,000,000 22,000,000 Debtors 1,282,320 936,838 1,220,070 Other short-term 200 200 200 investments Cash at bank and in hand 1,059,561 1,182,381 880,505 ------------ ------------- ------------ 24,353,244 22,134,060 24,106,451 ------------ ------------- ------------ Creditors: amounts (7,435,354) (7,222,277) (6,992,752) falling due within one year ------------ ------------- ------------ Net current assets 16,917,890 14,911,783 17,113,699 ------------ ------------- ------------ Total assets less current 100,938,683 102,320,207 101,191,479 liabilities Creditors: amounts (83,716,014) (84,155,509) (84,304,991) falling due in more than one year Provisions: deferred tax - - - ------------ ------------- ------------- Total assets 17,222,669 18,164,698 16,886,488 ============ ============= ============= Capital and reserves Called up share capital 104,680 104,680 104,680 Share premium account 1,414,350 1,414,350 1,414,350 Revaluation reserve 9,690,327 12,956,326 9,690,326 Profit and loss account 6,013,312 3,689,342 5,677,132 ------------ ------------- ------------- Shareholders' funds 17,222,669 18,164,698 16,886,488 ============ ============= ============= NOTES TO THE INTERIM REPORT 2011 1. BASIS OF PREPARATION The accounting policies used for the audited financial statements at 31 December 2010 have been used in the preparation of this interim report. The interim report is unaudited and does not comprise full financial statements. The results for the year to 31 December 2010 are an abridged summary of the financial statements for that year which have been delivered to the Registrar of Companies and on which the auditors' report was unqualified. 2. TURNOVER Turnover represents rental income on the group's investment portfolio and turnover from hotels, invoiced in the period and is stated net of VAT. Included within turnover is Â£464,300 of revenues from hotel operations (2010: Â£ 457,100). 3. TAX CHARGE No provision has been made for corporation tax for the current half year because of tax losses being brought forward from last year. 4. EARNINGS PER SHARE Earnings per share have been calculated to include total earnings attributable to equity shareholders arising in the period: 6 months 6 months 12 months to 30 June to 30 June to 31 2011 2010 December 2010 Â£ Â£ Â£ Total earnings /losses arising 336,181 (185,572) (1,306,082) in the period Weighted average shares in 10,468,000 10,468,000 10,468,000 issue Total earnings /(loss) per 3.21 (1.77) (12.48) share (p) 5. INVESTMENTS There were no sales or purchases of properties in the period. The directors of GSC Property Holdings plc accept responsibility for this announcement

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