Half Yearly Report

RNS Number : 4380O

Off-Plan Fund Limited (The)

29 June 2010

 



29 June 2010

The Off-Plan Fund Limited

(the "Fund")

Interim results for the six months ended 31 March 2010

Chairman's Statement

I am pleased to present the unaudited results for the six months ended 31 March 2010.

The Fund's Annual General Meeting was held on 23 April 2010 and all resolutions were duly passed, including the resolution that the Company shall continue to pursue its investment strategy until the conclusion of the next Annual General Meeting at which another vote shall be taken.

Performance

The unaudited net asset value ("NAV") of the Fund as at 31 March 2010 was £2.9 million (30 September 2009: £7.1 million). The NAV per ordinary share reduced to 52.3p at the period end from 63.4p as at 30 September 2009.

The Fund's share price at the start of the period was 50p and increased to 56.5p at the period end.  The Fund's share price closed at 47.5p on 28 June 2010. 

During the period, approximately £6 million was returned to shareholders through two compulsory partial redemptions, details of which are set out below.

Redemption of Shares

On 26 October 2009, the Fund announced that it had posted a circular to its Members detailing proposals to redeem, on a pro rata basis, up to 5,576,549 Participating Shares, equivalent to 50 per cent of the Participating Shares in issue, for cancellation in accordance with the relevant provisions of the Companies (Jersey) Law 1991. The Participating Shares were redeemed on 30 October 2009 at a price of 70p per share, representing a redemption of approximately £3.9 million.

Following the sale of units in Walton and Leicester, as detailed below, the Board resolved to redeem, on a pro rata basis, up to a further 3,345,931 Participating Shares (equivalent to approximately 60 per cent of the 5,576,549 shares in issue) at a price of 63p per Participating Share, representing a redemption of approximately £2.1 million. This redemption took place on 14 May 2010.  In determining the level of the redemption the Directors considered the ongoing running costs of the Fund for the next 12 months, together with a suitable contingency, to allow them to continue the orderly winding down of the activities of the Fund. As at today's date the Fund's cash reserves are approximately £1 million.

Recovery of Deposits - Canon House, Wallington:

As at 31 March 2010, the Fund had made a provision in full for the £1.1 million deposit paid to Henry Homes (Wallington) Limited ("HHW") on the commencement of the Canon House project.  On the same date HHW was subject to a winding up order and is now in insolvent liquidation.  As a result of HHW's insolvent liquidation and as a beneficiary of an insurance policy to cover such a situation, the Fund believes that it is entitled to recover the entire amount of the deposit from the insurer, Zurich Insurance ("Zurich").  A claim was made under this policy on 9 April 2010.

Zurich's solicitors have queried the basis of the Fund's reasoning that the liquidation of HHW resulted in the loss of the deposits, asserting that the loss of the deposits was caused by the rescission of the purchase contracts for the 118 residential units which were to comprise the Canon House development. The Fund's solicitors see little merit in this assertion which in their view, fails to recognise that the true and fundamental cause of HHW's failure to perform was its insolvency now confirmed in the winding up order. In the event payment of the claim is not received in full by 8 July 2010, formal steps to recover the monies due will be taken.

A further announcement will be made once it is possible to determine more accurately the likely timetable for the conclusion of the recovery of the deposits.  The Directors of the Fund will consider whether it is appropriate to make further redemptions or other forms of distribution to its Members when such announcement is made.

Portfolio Review

The Heart, Walton-on-Thames: As previously announced, following the decision by Members to commence the orderly winding down of the activities of the Fund, on 2 February 2010 the Fund exchanged contracts for the sale of all eight remaining units to Karlton Properties Limited for a total cash consideration of £1,332,000 (equating to a sale price of £166,500 per flat). On exchange the Fund received a 10 per cent non-refundable deposit and completion took place on 2 March 2010.

Wimbledon House, Leicester: As previously announced, the properties were sold at the Allsop residential property auction on 22 February 2010 for a total cash consideration of £430,500. This equated to a sale price of £71,750 per flat. On exchange, the Fund received a 10 per cent non-refundable deposit and, under the terms and conditions of the auction, completion took place on 22 March 2010.

Cost Minimisation

With the objective of minimising the costs arising for the Fund during the winding down of its activities, the Directors have resolved to serve protective notice on certain of the Fund's service providers and other advisers as necessary.

As previously announced, the Fund's manager, Development Capital Management (Jersey) Limited (the "Manager"), had agreed, subject to JFSC consent, to reduce its notice period from twelve months under the management agreement for termination by the Fund to six months, such notice not to be given prior to 30 June 2010. To minimise costs attributable to the Fund, the Fund and the Manager have agreed that protective notice be served on the Manager on 30 June 2010. In the event that the Fund has not been liquidated by 31 December 2010 and continues to be regulated as a collective investment fund, it has been agreed that the Manager will continue to manage the Fund on a rolling three month contract, subject to JFSC consent. 

Novation of management agreement

Pursuant to a regulatory restructuring of the DCM Group, the Manager and the Fund have agreed, subject to JFSC consent, to novate the rights and obligations of the Manager under the management agreement to its wholly-owned subsidiary, DCM Funds Limited.  

Reporting Fund Status

The UK offshore funds regime and the definition of "offshore fund" were changed with effect on and from 1 December 2009. The Fund was not an offshore fund for the purposes of this legislation under the old definition. However, it now falls to be an offshore fund under the new definition. The effect of this new legislation is that any Members who are resident or ordinarily resident in the UK and who acquired their shares in the Fund on or after 1 December 2009 will be subject to UK income tax (or corporation tax on income) on any gain they realise on a disposal of shares unless the Fund is a reporting fund. The Fund has, therefore, applied to HM Revenue & Customs to be a reporting fund under the UK offshore funds legislation.

However, there can be no guarantee that such status will be obtained and maintained for each period of account of the Fund.

The effect of obtaining "reporting fund" status would be that any gains arising to Members resident or ordinarily resident in the UK on a sale, redemption or other disposal of shares would be taxed as capital gains (or corporation tax on gains) rather than as income (or corporation tax on income). Members who are resident or ordinarily resident in the UK will be subject to UK income tax (or corporation tax on income) on their share of the net income of the Fund whether or not it is distributed.

A further announcement will be made on this matter when a response from HM Revenue & Customs has been received.

Board and advisers

In October 2009 the Fund appointed Fairway Fund Management Limited as administrator of the Fund.

Roger King

Chairman

29 June 2010

Further enquiries:

Development Capital Management

Andy Gardiner

020 7355 7600

Merchant John East Securities Limited

(Nominated Adviser)

Bidhi Bhoma/Simon Clements

020 7628 2200

Consolidated Income Statement for the six months ended 31 March 2010

Consolidated Income Statement	Notes	(unaudited) Six months ended 31 March 2010
		Revenue	Capital	Total
		£	£	£
Realised gains on investments held at fair value through profit or loss		-	6,935	6,935
Interest income		42,727	-	42,727
Rental income		36,988	-	36,988
Investment management fee	4	(96,849)	-	(96,849)
Rental expenses		(16,122)	-	(16,122)
Other expenses		(242,725)	-	(242,725)
Net (loss)/gain on ordinary activities before taxation		(275,981)	6,935	(269,046)
Taxation	2	(8,735)	-	(8,735)
Net (loss)/gain for the period after taxation	3	(284,766)	6,935	(277,831)
(Loss)/gain per share (pence)		(4.3)	0.1	(4.2)

(unaudited) Six months ended 31 March 2009			(audited) Year ended 30 September 2009
Revenue	Capital	Total	Revenue	Capital	Total
£	£	£	£	£	£
-	209,800	209,800	-	(378,016)	(378,016)
-	-	-	-	-	-
-	-	-	-	(113,323)	(113,323)
-	18,108	18,108	-	18,108	18,108
-	8,907	8,907	-	8,907	8,907
-	32,132	32,132	-	39,486	39,486
48,186	-	48,186	60,696	-	60,696
33,920	-	33,920	88,034	-	88,034
(92,890)	-	(92,890)	(186,267)	-	(186,267)
-	-	-	-	(1,100,000)	(1,100,000)
(15,177)	-	(15,177)	(31,265)	-	(31,265)
(160,710)	-	(160,710)	(275,819)	-	(275,819)
(186,671)	268,947	82,276	(344,621)	(1,524,838)	(1,869,459)
(3,243)	-	(3,243)	(17,607)	-	(17,607)
-	-	-	(100,000)	-	(100,000)
(189,914)	268,947	79,033	(462,228)	(1,524,838)	(1,987,066)
(1.7)	2.4	0.7	(4.1)	(13.7)	(17.8)

Consolidated Balance Sheet for the six months ended 31 March 2010

	Notes	(unaudited)  31 March  2010	(unaudited)  31 March  2009	(audited)  30 September  2009
		£	£	£
Non-current assets
Investment property	5	-	2,519,000	-
Investments held at fair value through profit or loss	6	-	97,834	105,422
Property contracts yet to complete	7	-	1,353,573	-
Debtors			-
		-	3,970,407	105,422
Current assets
Investment property		-	-	1,931,184
Debtors		3,486	18,419	161,430
Cash in escrow		-	3,000,000	-
Cash and cash equivalents		3,108,525	2,215,242	5,041,169
		3,112,011	5,233,661	7,133,783
Creditors - amounts falling due within one year
Other payables		(198,128)	(69,939)	(171,175)
Net current assets		2,913,883	5,163,722	6,962,608
Total net assets		2,918,883	9,134,129	7,068,030
Equity
Stated capital		6,601,572	10,505,154	10,505,154
Capital reserve		(1,806,392)	(46,808)	(1,840,593)
Issue costs reserve		(679,868)	(679,868)	(679,868)
Revenue reserve		(1,201,429)	(644,349)	(916,663)
Total shareholders' funds (all equity)		2,918,883	9,134,129	7,068,030
Net asset value per share (pence)		52.3	81.9	63.4

Consolidated Cash Flow Statement for the six months ended 31 March 2010

		(unaudited) Six months ended 31 March 2010	(unaudited) Six months ended 31 March 2009	(audited) Year ended 30 September 2009
		£	£	£
Cash flow from operating activities
Deposits and acquisition costs relating to property contracts		-	-	(1,526,384)
Cash released from escrow		150,000	-	3,000,000
Rental income received		39,756	46,862	89,383
Deposit interest received		36,468	104,015	225,444
Other income		9,485	-	-
Sale of property		1,967,500	-	185,292
Proceeds for rescission of Oldham Place		-	-	332,489
Investment management fees paid		(96,849)	(92,890)	(186,267)
Secretarial fees paid		-	(2,343)	-
Rental expenses		(16,122)	(20,925)	(31,265)
Other expenses		(227,107)	(174,931)	(289,133)
Net cash inflow /(outflow) from operating activities		1,863,131	(140,212)	1,799,559
Taxation paid		-	(3,532)	(7,708)
Cash flow from investing activities
Interest income received		4,500	98,999	19,782
Sale of investments		103,307	2,984,640	2,955,336
Proceeds from rescission of Oldham Place		-	332,489	-
Purchase of investment property		-	(1,516,634)	-
Proceeds from sale of investment property		-	185,292	-
Net cash inflow from investing activities		107,807	2,084,786	2,975,118
Increase in cash before financing		1,970,938	1,941,042	4,766,969
Cash flow from financing activities
Redemption of shares		(3,903,582)	-	-
Net (decrease) / increase in cash and cash equivalents		(1,932,644)	1,941,042	4,766,969
Cash and cash equivalents at the start of the period		5,041,169	274,200	274,200
Cash and cash equivalents at the end of the period		3,108,525	2,215,242	5,041,169

Consolidated statement of changes in equity for the six months ended 31 March 2010

	Stated capital	Capital reserves	Issue costs reserve	Revenue reserve	Total
	£	£	£	£	£
For the six months ended 31 March 2010 (unaudited)
At 1 October 2009	10,505,154	(1,840,593)	(679,868)	(916,663)	7,068,030
Redemption of shares	(3,903,582)	-	-	-	(3,903,582)
Realised capital	-	34,201	-	-	34,021
Loss for the period	-		-	(254,766)	(254,766)
At 31 March 2010	6,601,572	(1,806,392)	(679,868)	(1,171,429)	2,943,883
For the six months ended 31 March 2009 (unaudited)
At 1 October 2008	10,505,154	(315,755)	(679,868)	(454,435)	9,055,096
Revaluation of investment property	-	209,800	-	-	209,800
Gain/(loss) for the period	-	59,147	-	(189,914)	(130,767)
At 31 March 2009	10,505,154	(46,808)	(679,868)	(644,349)	9,134,129
For the year ended 30 September 2009 (audited)
At 1 October 2008	10,505,154	(315,755)	(679,868)	(454,435)	9,055,096
Revaluation of investment property	-	(378,016)	-	-	(378,016)
Loss for the year	-	(1,146,822)	-	(462,228)	(1,609,050)
At 30 September 2009	10,505,154	(1,840,593)	(679,868)	(916,663)	7,068,030

Notes to the interim results for the six months ended 31 March 2010

1.       Accounting Policies

(a)      Basis of preparation

The consolidated interim financial statements have been prepared under the historical cost convention, as modified to include the revaluation of quoted investments and investment properties and in accordance with applicable Accounting Standards and the Statement of Recommended Practice for "Financial Statements of Investment Trust Companies" issued in January 2009. Applicable Accounting Standards for these purposes are International Financial Reporting Standards ("IFRS"), as adopted by the International Accounting Standards Board ("IASB"). 

          (i)       IFRS applied

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Fund's accounting policies.  Changes in assumptions may have a significant impact on the financial statements in the period the assumptions changed.  Management believes that the underlying assumptions are appropriate.

The IFRS improvements project contains numerous amendments to IFRS that the IASB considers non-urgent but necessary.  'Improvement to IFRS' comprise amendments that result in accounting changes for presentation, recognition or measurement purposes, as well as terminology or editorial amendments related to a variety of individual IFRS standards. Most of the amendments are effective for annual periods beginning on or after 1 January 2010 respectively, with earlier application permitted.  No material changes to accounting policies are expected as a result of these amendments.

The accounting policies adopted in the preparation of the interim financial statements are consistent with those followed in the preparation of the annual financial statements for the year ended 30 September 2009. New accounting standards have been issued since the year end 30 September 2009 but none of these are yet effective.

          (ii)      Going concern

At the EGM of the Company held on 4 December 2009, a resolution was passed to commence an orderly winding down of the Company's activities.

The financial statements have therefore not been prepared on the going concern basis because the company is winding down.

The effect on the financial statements is that all assets and liabilities are disclosed as current, and the accounting effect is that the assets and liabilities are recognised at their realisable amounts net of costs of sale (or best estimate thereof). In addition, provision is made for future costs to completion of the orderly wind down of the Fund's activities.

(b)      Use of estimates and judgments

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting polices and the reporting amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

The most significant estimates and judgements relate to the determination of fair value of investment property and the disclosed fair value of properties that are the subject of property contracts yet to complete. The fair values of both kinds of properties are determined by independent valuers and are based upon a market approach methodology, using assumptions on local markets prices, comparable units and transaction levels.

(c)      Basis of consolidation

The consolidated interim financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up for the six months ended 31 March. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from activities. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences up to the date that control ceases.

The Company has only one subsidiary, OPF Investment Properties Limited, which it acquired during the year ended 30 September 2007. As this subsidiary has not yet commenced trading and remained dormant throughout the period, the Company's financial statements are materially similar in all respects to the Group's financial statements, therefore the Company has presented only consolidated financial statements for the six months ended 31 March 2010, 31 March 2009 and 31 March 2008, and the years ended 30 September 2009 and 30 September 2008.

(d)      Revenue recognition

(i)       Interest income

          Interest receivable on fixed interest securities is recognised in "Interest income" using the effective interest method. The effective interest method is a way of calculating the amortised cost of a financial asset or a financial liability (or groups of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period.

          The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial instrument or, where appropriate, a shorter period, to the net carrying amount of the financial asset or financial liability. When calculating the effective interest rate, the Group estimates cash flows considering all contractual terms of the financial instrument but not future credit losses. The calculation includes all amounts paid or received by the Group that are an integral part of the effective interest rate, including transaction costs and all other premiums or discounts.

(ii)      Profit on off-plan sales

          Profit on off-plan sales is recognised once contracts with onward buyers have become unconditional. The profit or loss is calculated in line with the profit-share arrangement with each developer based on the difference between the amount agreed with the buyer and the Company's purchase price.

(iii)     Rental income

          Rental income from investment properties is based on a short term tenancy agreements and is recognised in the period earned. Property operating costs are expensed as incurred including any element of expenditure not recovered from tenants.

(e)      Expenses

Expenses are charged through the income statement, except for expenses which are attributable to the disposal of an investment, which are deducted from the disposal proceeds of the investment. In addition, certain expenses associated with the acquisition of an investment have been capitalised.

(f)       Investments

(i)       General

          Assets are recognised at the trade date of acquisition, and are recognised initially at fair value plus any directly attributable transaction costs.

          The Group does not hold, or intends to hold, any financial instruments for the purpose of trading.

(ii)      Investments at fair value through profit or loss

          An instrument is classified as at fair value through profit or loss if it is held as at fair value through profit or loss. Financial instruments are designated at fair value through the profit or loss if the Group manages such investments and makes purchase and sale decisions based on their fair value. Fair value is the amount at which an investment could be exchanged between knowledgeable willing parties in an arms length transaction.

          Purchases of investments are recognised on the trade date, being the date that amounts are due for payment. Investments are derecognised when the rights to receive cash flows from the investments have expired or the Group has transferred substantially all risks and rewards of ownership. Investments are initially recognised at fair value being the transaction price. Transaction costs for all financial assets carried at fair value through profit and loss are expensed as incurred.

          Subsequent to initial recognition, all financial assets at fair value through the profit or loss are measured at fair value.  Gains and losses arising from changes in fair value are presented in the income statement in the year in which they arise.  On disposal, realised gains and losses are also recognised in the income statement.

          Fair values of financial instruments traded in active markets are based on quoted market prices as at the balance sheet date. The quoted market price used for financial assets held by the Group is the current bid price.

(iii)     Property contracts yet to complete

          The Group has contractual obligations to purchase property that is currently being constructed, i.e. it has entered into contracts to purchase the property "off-plan". Under these contracts the Group is obliged to purchase these properties at a contracted price, but has the right to sell or transfer the contract to a third party. The "Property contracts yet to complete" are included in the balance sheet at the lower of cost and net realisable value. Cost includes legal and other expenses incurred to acquire the contracts.

          Realised gains and losses arising on the disposal of these contracts are taken to the realised capital reserve.

(iv)     Investment property

          Property that is held for capital appreciation, and that is not occupied by the companies in the Group, is classified as investment property.

          Investment property is measured initially at its cost, including related transaction costs. After initial recognition, investment property is carried at fair value, although the property may not be revalued in the year of acquisition. Changes in fair values are recorded in the income statement.

          Fair value is based on active market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. If this information is not available, the Group uses alternative valuation methods. The valuations are prepared annually by Savills (L&P) Limited for Wimbledon House and Edwin Evans Surveyors Limited for The Heart.

          Realised gains and losses on the disposal of investment property are recognised once sale contracts have been exchanged and the purchaser's deposit has been received.

(g)      Cash and cash equivalents

          Cash and cash equivalents comprise current deposits with banks. Cash equivalents comprises of current deposits with banks.

(h)      Taxation

The taxation charge arises from income tax deducted at source on the net rental income.

Deferred tax is recognised in respect of all temporary differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more tax in the future or right to pay less tax in the future have occurred at the balance sheet date. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the temporary differences can be deducted. 

(i)       Share capital

Founder shares

Founder shares are classified as equity. Founder shares are not eligible for participation in Company investments and carry no voting rights at general meetings of the Company.

(j)       Currency

The results and financial position of the Group are expressed in Pounds Sterling, which is the Group's functional currency.

2.       Taxation

With effect from the 2009 year of assessment Jersey abolished the exempt company regime for existing companies.  Profits arising in the Company for the 2009 year of assessment and future periods will be subject to tax at the rate of 0%.  In the prior year the Company was exempt from taxation under the provisions of Article 123A of the Income Tax (Jersey) Law 1961 as amended. 

3.       Returns per share

The return per share is based on the net loss for the period of £277,831 (31 March 2009: net gain £79,033; 30 September 2009 net loss: £1,987,066) and on 6,618,322 shares (31 March 2009: 11,153,098; 30 September 2009: 11,153,098), being the weighted average number of shares in issue.

4.       Management fee

	Six months ended 31 March 2010	Six months ended 31 March 2009	Year ended 30 September 2009
	£	£	£
Management fee	96,849	92,890	186,267

The management fees paid to Development Capital Management (Jersey) Limited with effect from July 2009 are £175,000 per annum. The management agreement between the Company and the Manager has been reduced from 12 months and is now terminable by giving the Manager not less than six months notice in writing, such notice not to be given before 30 June 2010.

5.       Investment property

	Wimbledon House	The Heart	Total
	£	£	£
Opening book cost	989,183	1,504,700	2,493,883
Movements during the period:
Sales - net proceeds	(407,609)	(1,523,575)	(1,931,184)
Sales - realised (loss) / gain	(581,574)	18,875	(562,699)
Closing book cost	-	-	-
Closing unrealised (depreciation) / appreciation	-	-	-
Closing valuation	-	-	-

The rental income arising from these properties in the period was [£36,988 - figure to be clarified] (2009 - £33,920) with direct expenses of £16,122 (2009 - £15,177).

6.       Investments held at fair value through profit or loss

	31 March 2010	31 March 2009	30 September 2009
	£	£	£
Opening valuation	105,422	3,012,365	3,012,365
Opening unrealised (gain) / loss	(6,935)	32,551	32,551
Opening book cost	98,487	3,044,916	3,044,916
Movements during the period:
Sales - proceeds	(105,422)	(2,951,762)	(2,951,762)
Amortisation of fixed income book costs	-	(3,808)	(3,574)
Sales - realised gains	6,935	8,907	8,907
Closing book cost	-	98,253	98,487
Closing unrealised (loss) / gain	-	(419)	6,935
Closing fair value	-	97,834	105,422

7.       Property contracts yet to complete

	31 March 2010	31 March 2009	30 September 2009
	£	£	£
Opening book cost	-	1,508,823	1,508,823
Movements during the period:
Rescission costs	-	-	(1,080,500)
Write off capitalized expenses	-	-	(263,323)
Purchases	-	9,750	-
The Heart - cost of property disposed	-	(165,000)	(165,000)
Closing book cost	-	1,353,573	-

8.       Post balance sheet events

Compulsory redemption

As stated in the Fund's Preliminary Results for the year ended 30 September 2009, announced on 31 March 2010 ("Preliminary Announcement"), following the sale of units in Walton and Leicester for a total aggregate cash consideration of £1,770,500 (as announced on 3 February 2010 and 23 February 2010, respectively) the Board resolved to return, on a pro rata basis, £2,107,937 to Members, such cash being surplus to the Fund's current working capital and solvency requirements.

Following completion of the Redemption on 17 May 2010, the total number of Participating Shares outstanding was reduced by 3,345,931 to 2,230,622 Participating Shares in issue.

Recovery of Deposits - Canon House, Wallington:

As at 31 March 2010, the Fund had made a provision in full for the £1.1 million deposit paid to Henry Homes (Wallington) Limited ("HHW") on the commencement of the Canon House project.  On the same date HHW was subject to a winding up order and is now in insolvent liquidation. As a result of HHW's insolvent liquidation and as a beneficiary of an insurance policy to cover such a situation, the Fund believes that it is entitled to recover the entire amount of the deposit from the insurer, Zurich Insurance ("Zurich").  A claim was made under this policy on 9 April 2010.

Zurich's solicitors have queried the basis of the Fund's reasoning that the liquidation of HHW resulted in the loss of the deposits, asserting that the loss of the deposits was caused by the rescission of the purchase contracts for the 118 residential units which were to comprise the Canon House development. The Fund's solicitors see little merit in this assertion which in their view, fails to recognise that the true and fundamental cause of HHW's failure to perform was its insolvency now confirmed in the winding up order. In the event payment of the claim is not received in full by 8 July 2010 formal steps to recover the monies due will be taken.

9.       Availability of interim results

Hard copies of the interim results will be available from the Company's registered office 8th Floor, Union House, Union Street, St Helier, Jersey JE4 8TQ, and will be available to download from the Company's website, www.offplanfund.com.

 

END

 

 

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