Interim Results
Derwent Valley Holdings PLC
08 September 2004
Derwent Valley Holdings plc
Interim results for the six months ended 30th June 2004
Derwent Valley, a specialist investor and refurbisher of Central London
commercial property, reports its results for the half year ended 30th June 2004.
Half Half Year
year year to Change
30.6.04 30.6.03 31.12.03 %
Adjusted net asset value per share (p) 964 906 920 4.8*
Net rental income (£m) 21.8 21.3 41.5 2.3
Adjusted profit before tax (£m)+ 8.6 8.7 16.2 (1.1)
FRS3 profit before tax (£m) 9.7 9.5 17.1 2.1
Adjusted earnings per share (p)+ 12.97 14.29 26.62 (9.2)
Dividend per share (p) 3.60 3.30 11.40 9.1
Total return (%) 5.2 (7.4) (5.2)
* Change based on 31st December 2003
+ Excludes the profit or loss on disposal of investment properties and, for the 2003 full
year, the exceptional cost of the possible offer for the group.
• Adjusted net asset value per share up 4.8% since the year end to
964p.
• Net rental income rose £0.5 million to £21.8 million.
• 14,000m2 of successful lettings made in the first half 2004 at a
contracted rent of £3.5 million per annum.
• Adjusted profit maintained at £8.6 million despite increased
borrowings and rising interest rates.
• FRS3 profit increased £0.2 million to £9.7 million.
• Interim dividend increased 9.1% to 3.60p.
• Three properties acquired in May 2004 for £76.7 million in the
group's core West End area.
• £33 million redevelopment of New Garden House commenced; due for
completion early 2006.
John Ivey, Chairman, commented:
"We are now seeing competition for our space in the West End and this should
herald the return of rental growth. With the confidence gained from this, the
group has stepped up its refurbishment and development programme which will see
refurbished space being delivered into an improving market. This puts the group
in an excellent position to create further value for shareholders."
8th September 2004
For further information, contact:
Derwent Valley Holdings plc 020 7659 3000
John Burns, Managing Director 7:00 - 8:30 and p.m.
www.derwentvalley.co.uk
College Hill 020 7457 2020
Gareth David Email: gareth.david@collegehill.com
Chairman's statement
Half year review
The half year has seen a continuation of the return to growth that began in the
latter part of 2003. Adjusted net assets per share increased 4.8% from 920p at
the end of December to 964p at the half year. This rise was driven by the
ongoing recovery in tenant demand, with the result that the significant letting
progress made in the second half of last year has continued strongly. So far
this year, we have enjoyed considerable letting success in both the West End and
the City with 14,000m2 let at a contracted rent of £3.5 million per annum. As
tenant demand has increased, both available space and tenant incentives have
decreased. Consequently, we are now seeing competition for our space in the
West End and this should herald the return of rental growth. With the Central
London investment market remaining intensely competitive, we were pleased to
successfully source a substantial amount of new stock, mainly in our core West
End area. In total, £88.6 million was spent on purchases, the principal
transaction being three properties acquired from Chelsfield for £76.7 million.
These have a current net income of £5.1 million per annum, and have added
23,755m2 of space to the portfolio. The purchases provide the type of lease
management and refurbishment opportunities in which we specialise and from which
we generate value. We also took advantage of the buoyant investment market.
Sales of £42.4 million were completed, realising £1.1 million above the prior
year end valuation.
Valuation
The half year valuation generated a £20.8 million revaluation surplus, before
the UITF 28 adjustment, to give a portfolio value of £895 million. This
reflected the letting activity, stable rents and yield compression with all of
our London Villages experiencing an uplift in value. The overall increase in
value of those properties held throughout the half year was 2.7%, with the West
End improving by 2.6% and the City and its borders by 2.9%. The valuation
demonstrated the impact of letting void space, particularly in the West End.
Here, letting activity at the Davidson Building helped to boost the value of our
Covent Garden and Soho properties by 5.8% while, in the City borders, 1 Oliver's
Yard produced a good increase.
Results
Profit before tax, adjusted for investment property disposals, was £8.6 million
against £8.7 million for the same period last year, whilst FRS3 profit was £9.7
million against £9.5 million. Gross rental income rose £0.5 million to £24.3
million and, with net property outgoings falling back to the level of the 2003
first half, this increase was carried through to net rental income which rose to
£21.8 million. Interest payable, higher at £10.0 million, reflected the
acquisition and capital expenditure activity during the half year. Total return
for the period was 5.2%, compared with a negative 7.4% for the same period last
year and negative 5.2% for the whole of 2003.
Dividend
The board has declared a dividend of 3.60p per share, an increase of 9% on the
3.30p paid at the interim stage last year.
Financing
There was a cash outflow for the half year of £61.4 million. This was the
result of £88 million of acquisitions and £13 million of capital expenditure,
which together exceeded property disposal proceeds of £40 million.
Consequently, net borrowings rose to £363 million and balance sheet gearing to
72.5% which compared with 63.2% at the year end. Profit and loss gearing for
the half year at 1.88 was effectively the same as that for 2003. Approximately
67% of net debt is either at fixed rates of interest or hedged. The current
weighted average cost of borrowing is 6.6%.
Capital expenditure for the second half year is forecast to be £13 million and
for 2005 £27 million. With unutilised bank facilities of over £90 million, and
further disposals likely, funds remain available for acquisitions.
Property Investment Funds
Whilst we welcome the government initiative on the proposed introduction of
PIFS, we await with interest the response to a number of significant points put
forward by the British property industry. In particular, these include the
conversion cost, level of dividend payout required and the amount of development
activity that will be permitted. Each company will have to assess how its
business model suits the PIFS regulations. It will only be possible to do this
and evaluate the benefit for Derwent Valley when the detailed draft legislation
is available.
Prospects
With confidence gained from the improving Central London market, the group has
continued its refurbishment and development programme. Construction at the
Johnson Building, Hatton Garden, EC1 and Holden House, W1 has commenced and the
refurbishment of the Tea Building, E1 continues. Planning permission to rebuild
Telstar House, Paddington, W2, which was damaged by fire in 2003, has been won,
whilst planning applications for future projects at North Wharf Road,
Paddington, W2, Gresse Street, W1 and a number of properties in the Islington
portfolio are being worked on.
The Central London letting market, which has struggled during the past two
years, is now in transit to growth and offers the prospect of rents returning to
the levels achieved before the downturn. The pursuit of investment property,
despite the increase in interest rates, has not abated and values are on the
upturn. Derwent Valley, with its portfolio balanced between strong recurring
income and opportunities to deliver refurbished space into an improving market,
is in an excellent position to create further value for shareholders.
J C Ivey
8th September 2004
Interim property review
Lettings
The letting activity reported at last year end has continued across the
portfolio, from small suites at the bustling Tea Building to floors at our
recent office development, the Davidson Building. In total, 51 transactions
were completed in the first half on 14,000m2 of space. Rental levels were
stable with tenant incentives declining, principally through the shortening of
rent free periods. This letting success, in what has been a competitive market
where prospective tenants have had considerable choice, is attributed to our
skills in delivering interesting and well-designed space that is priced at the
right level. The Derwent Valley contemporary approach to architecture is now
well established, yet we endeavour to move it to new levels. This was
illustrated in DV02, the second of our biannual newsletters, which gave both an
in-depth insight to our philosophy towards buildings, and detailed current and
future projects.
The principal lettings in the period were:
• Davidson Building, 5 Southampton Street, WC2 - lettings
were completed to the legal and economic consulting group, LECG, and The
British Computer Society, totalling 2,250m2, at rents in the order of
£460 per m2. Only one floor of 595m2 remains at this award winning, Covent
Garden, atrium office development.
• 1 Oliver's Yard, EC2 - we continued to build on the letting success
achieved last year, with financial
group Penson Worldwide Settlements leasing 990m2 and London Eastern Railway
835m2 at rentals of £260 per m2. This is an impressive performance in a
tough City market, and with a further 650m2 let since half year, including
the restaurant unit, this 17,400m2 building is now over 90% let.
• Tea Building, Shoreditch High Street, E1 - since commencing a rolling
refurbishment programme in 2002 to provide cost efficient space, on
flexible leases, this 20,000m2 building is becoming firmly established as a
local landmark and is now over 50% let. The property has been re-branded
and, while retaining the original warehouse character, is now an attraction
for the advertising, media and design-led communities. The recently opened
bar/restaurant is an example of our strategy to create a village atmosphere
in our larger properties. A range of unit sizes are available from 100m2.
There were 14 lettings in the first half, totalling 2,850m2.
• 25 Savile Row, W1 - the market improvement led to competing interest for
the final floor, with planning consultants, Robert Turley Associates,
acquiring the 510m2 of space at £500 per m2.
Space available for occupation in the portfolio has declined from 24,900m2 at
year end to 16,200m2 at half year, which represents 5.1% of the portfolio's
estimated rental value, compared to 9.9% at the year end. To reflect the
letting success, and to meet the improving tenant demand, we have stepped up the
group's ongoing refurbishment/redevelopment programme. The effect of these
commitments is an increase in the amount of vacant space either under
refurbishment, or identified for refurbishment, from 23,000m2 at the year end to
35,700m2 at half year, with the 15,400m2 Hatton Garden project the principal new
scheme.
Current and future projects
• The Johnson Building, Hatton Garden, EC1 - construction works commenced in
May and will include the remodelling of the existing 1930's building and
developing the under-utilised courtyard. Capital expenditure will total
£33 million and the centre piece is the creation of a core and atrium
behind the existing accommodation, linking to the new space. This
innovative solution will allow the creation of efficient floor plates,
which also have the flexibility to be sub-divided. In total, 13,300m2 of
air conditioned offices, 400m2 of workshop space and a self-contained
1,700m2 residential building will be provided. Completion is scheduled for
early 2006.
• Holden House, 54-68 Oxford Street, W1 - this 2,500m2 scheme, involving £3
million of capital expenditure is the final refurbishment phase at this
8,200m2 building. The imaginative proposal is to provide some double
height office spaces, through the insertion of new raised lightwells, and
to improve the Oxford Street retailing.
• Islington portfolio - acquired from the London Borough of Islington last
year, studies have been undertaken to identify and evaluate buildings with
redevelopment potential. Planning applications are being advanced for mixed
use schemes on Balmoral Grove Buildings, N1 (3,200m2), 20-26 Rosebery
Avenue, EC1 (2,300m2) and 122-128 Pentonville Road, N1 (500m2).
• 55-65 North Wharf Road, Paddington, W2 - discussions continue with the
planning authority for the redevelopment of this 7,800m2 multi-let building.
Located in the heart of the Paddington Basin, this regeneration area is
benefiting from a number of local projects, including new roadway schemes,
and canal improvements. This reinforces our view that this is one of the
most important sites in Paddington. Our planning application proposes a
34,000m2 office and residential scheme.
• Telstar House, Paddington, W2 - following substantial fire damage last
year, we have worked hard to obtain within a short period, planning
permission for a new building of 9,500m2, a 1,200m2 floor space increase.
However, the building remains let to London Underground and is income
producing until 2018. Negotiations are ongoing with the tenant and their
insurers about the possible early surrender of their lease which, if
successful, would enable commencement of the project next year.
Acquisitions and disposals
In May the group acquired three Central London properties from Chelsfield for
£76.7 million. These comprised 23,755m2 of floor space and produced a net
rental income of £5.1 million per annum.
The properties are:
• Henry Wood House, 3-7 Langham Place and 75-77 Great Portland Street, W1 - a
leasehold interest on 6,570m2 of offices, let to the British Broadcasting
Corporation, and 845m2 of retail and restaurant space let on varying lease
terms. The low office rental at £145 per m2, which is subject to rent
review in 2006, offers substantial reversion.
• 19-29 Woburn Place, Bloomsbury, WC1 - a freehold, ten storey Government
occupied office building of 9,390m2, where the leases expire next year.
Options are being considered and, having worked with similar style
buildings in the past, we are confident of making the best use of the large
floor plates.
• Riverwalk House, 155-166 Millbank, SW1 - a leasehold 6,950m2 office
building, let to the Secretary of State for the Environment. The property
occupies a prominent location adjacent to the Thames, enjoying panoramic
views. Architects have been instructed to evaluate the long term
redevelopment potential, which could include alternative uses.
In addition, The Turnmill, 63 Clerkenwell Road, EC1 was acquired in June. This
multi-let, 4,100m2 building, with its abundance of unworked spaces, is located
in a vibrant area. The short term nature of the leases offers opportunity for a
rolling refurbishment or potential redevelopment and planning studies have been
initiated to investigate this.
The strength of the investment market provided a good opportunity to make
disposals, with sales of £42.4 million in the first half, achieving £1.1 million
in excess of book value. The principal sale, which realised £28 million, was
Harcourt House, Cavendish Square, W1, which had undergone a phased improvement
programme since acquisition in 1998. Fulcrum House, N1 in King's Cross and
three properties from the Islington portfolio made up the balance of the
disposals.
J D Burns 8th September 2004
Group profit and loss account
Half year Half Year
year to
to 30.6.04 to 30.06.03 31.12.03
Note £m £m £m
Gross rental income
Group and share of joint ventures 24.5 24.0 48.2
Less share of joint ventures (0.2) (0.2) (0.3)
Group gross rental income 24.3 23.8 47.9
Property outgoings net of recoveries 2 (2.5) (2.5) (6.4)
Net revenue from properties 21.8 21.3 41.5
Administrative costs
Recurring administrative costs (3.5) (3.4) (6.9)
Exceptional cost of possible offer for the group - - (0.7)
Operating profit 18.3 17.9 33.9
Share of operating results of joint ventures 0.2 0.2 0.3
Profit on disposal of investment properties 3 1.1 0.8 1.6
19.6 18.9 35.8
Interest receivable 0.1 0.1 0.3
Interest payable 4 (10.0) (9.5) (19.0)
Profit on ordinary activities before taxation 9.7 9.5 17.1
Taxation on profit on ordinary activities 5 (2.0) (1.2) (2.3)
Profit on ordinary activities after taxation 7.7 8.3 14.8
Dividend (1.9) (1.7) (6.1)
Retained profit 12 5.8 6.6 8.7
All amounts relate to continuing activities
Adjusted earnings per share 6 12.97p 14.29p 26.62p
Adjustment for cost of possible offer for the group - - (1.29p)
Adjustment for disposal of investment properties 1.54p 1.40p 2.36p
Basic earnings per share 6 14.51p 15.69p 27.69p
Adjustment for dilutive share options (0.07p) (0.02p) (0.06p)
Diluted earnings per share 6 14.44p 15.67p 27.63p
Dividend per share 7 3.60p 3.30p 11.40p
Total return 8 5.2% (7.4%) (5.2%)
Group balance sheet
30.6.04 31.12.03
Note £m £m
Fixed assets
Tangible assets 10 888.6 807.1
Investments in joint ventures
Share of gross assets 4.6 3.1
Share of gross liabilities (2.9) (2.9)
1.7 0.2
890.3 807.3
Current assets
Debtors 19.1 15.8
Cash and deposits 4.5 4.5
23.6 20.3
Creditors falling due within one year
Bank loans and overdrafts (1.8) (35.4)
Other current liabilities (32.2) (29.9)
Net current liabilities (10.4) (45.0)
Total assets less current liabilities 879.9 762.3
Creditors falling due after more than one year
Bank loans (331.5) (236.5)
10 1/8% First Mortgage Debenture Stock 2019 (34.4) (34.4)
Other creditors (0.4) (1.2)
Provisions for liabilities and charges
Deferred tax 11 (11.8) (11.5)
Other provisions (1.0) (1.1)
500.8 477.6
Capital and reserves - equity 12
Called up share capital 2.6 2.6
Share premium account 153.7 153.7
Revaluation reserve 216.2 208.7
Profit and loss account 128.3 112.6
500.8 477.6
Adjusted net asset value per share 13 964p
920p
Net asset value per share 13 942p 898p
Group cash flow statement
Half year Half Year
year to
to 30.6.04 to 30.6.03 31.12.03
Note £m £m £m
Net cash inflow from operating activities 14 15.5 19.5 30.2
Net cash outflow from return on
investments and servicing of finance (9.4) (9.7) (18.5)
Corporation tax paid (1.8) (1.6) (4.2)
Net cash (outflow)/inflow from capital
expenditure and financial investment (61.4) 4.6 (6.8)
Equity dividends paid (4.3) (3.9) (5.7)
Cash (outflow)/inflow before management
of liquid resources and financing (61.4) 8.9 (5.0)
Management of liquid resources - (4.5) (4.5)
Financing 15 61.6 (1.5) 8.9
Increase/(decrease) in cash in the period 15 0.2 2.9 (0.6)
Group statement of total recognised gains and losses
Half year Half
year Year
to 30.6.04 to to
30.6.03 31.12.03
£m £m £m
Profit for financial period 7.7 8.3 14.8
Unrealised surplus/(deficit) on revaluation of
investment properties 19.1 (44.4) (39.6)
Unrealised surplus on revaluation of
joint venture's investment property 1.5 - -
Taxation on realisation of property revaluation
gains of previous years (3.2) (2.4) (3.5)
25.1 (38.5) (28.3)
Notes
1. The results for the six months ended 30th June 2004 include those for
the holding company and all of its subsidiary undertakings together with the
group's share of the results of its joint ventures. The results are prepared on
the basis of the accounting policies set out in the 2003 annual report and
accounts.
From 1st January 2005, it will be a requirement of European law to prepare group
accounts and report results under International Financial Reporting Standards.
This will lead to significant changes in the reported figures, the main changes
being: leasehold investment properties will be reported gross of the leasehold
interest, which will be shown separately within net debt; surpluses and deficits
on investment property revaluations will be included in the income statement;
deferred tax will be provided on the property revaluation surplus; and the
measurement and recognition of the fair value of certain financial instruments
will be included on the balance sheet. Further information on the
quantification of these effects will be provided during 2005.
2. Property outgoings net of recoveries
Half Half
year year Year
to to to
30.6.04 30.6.03 31.12.03
£m £m £m
Ground rents
0.6 0.6 1.1
Other property outgoings net of recoveries 1.9 1.9 5.3
2.5 2.5 6.4
3. Profit on disposal of investment properties
Half year Half
year Year
to to
to 30.6.04 30.6.03 31.12.03
£m £m £m
Disposals 42.4 56.4 76.1
Cost/valuation (41.3) (55.6) (74.5)
1.1 0.8 1.6
4. Interest payable
Half year Half
year Year
to to to
30.6.04 30.6.03 31.12.03
£m £m £m
Group 9.8 9.3 18.7
Share of joint ventures 0.2 0.2 0.3
10.0 9.5 19.0
5. Taxation on profit on ordinary activities
Half year Half
year Year
to to to
30.6.04 30.6.03 31.12.03
£m £m £m
UK corporation tax on profit, adjusted for the
disposal of investment properties, at 30% (2003 - 30%) 2.6 2.6 4.6
Capital allowances (1.2) (0.9) (2.7)
Tax on disposal of investment properties 3.5 2.5 3.9
Other reconciling items - (0.5) (0.9)
Corporation tax payable on current period's profit 4.9 3.7 4.9
Less amount allocated to the group statement of
total recognised gains and losses (3.2) (2.4) (3.5)
Corporation tax charge in respect of current
period's profit 1.7 1.3 1.4
Adjustment in respect of prior periods'
corporation tax - - (0.4)
Corporation tax charge 1.7 1.3 1.0
Deferred tax 0.3 (0.1) 1.3
2.0 1.2 2.3
6. Earnings per share
Earnings per ordinary share have been computed on the basis of a profit
after tax of £7,714,000 (2003 interim - £8,339,000; 2003 full year -
£14,721,000) and the weighted average number of ordinary shares in issue during
the period of 53,167,000 (2003 interim - 53,164,000; 2003 full year -
53,166,000).
An adjusted earnings per share has been calculated using a profit of
£6,894,000 (2003 interim - £7,597,000; 2003 full year - £14,154,000). This
figure excludes the profit after tax arising from the disposal of investment
properties and, for the 2003 full year, the exceptional item in order to show
the recurring elements of the group's profit.
The diluted earnings per share has been calculated using 53,412,000 (2003
interim - 53,216,000; 2003 full year - 53,270,000) ordinary shares which
includes the number of dilutive share options outstanding at the end of the
period.
7. Dividend
The interim dividend will be paid on 1st November 2004 to those
shareholders on the register at the close of business on 15th October 2004.
8. Total return
Total return is the movement in adjusted net asset value per share plus dividend
per share expressed as a percentage of the adjusted net asset value per share at
the beginning of the year.
9. Gearing
Balance sheet gearing is 72.5% (December 2003 - 63.2%). This is defined as net
debt divided by net assets.
Profit and loss gearing is 1.88 (2003 interim - 1.94; 2003 full year - 1.87).
This is defined as net rental income less administrative costs divided by group
net interest payable. For the 2003 full year, the administrative costs excluded
the exceptional item in order to show only the recurring elements of the group's
activity.
10. Tangible assets
Freehold Other
land and Leasehold fixed
buildings property assets Total
£m £m £m £m
Cost or valuation:
At 1st January 2004 580.6 225.9 1.3 807.8
Additions 42.9 60.8 - 103.7
Disposals (41.3) - - (41.3)
Revaluation 15.2 3.9 - 19.1
At 30th June 2004 597.4 290.6 1.3 889.3
Amortisation and depreciation:
At 1st January 2004 - - 0.7 0.7
Provision for period
- - - -
At 30th June 2004 - - 0.7 0.7
Net book value:
At 30th June 2004 597.4 290.6 0.6 888.6
At 31st December 2003 580.6 225.9 0.6 807.1
Assets stated at cost or valuation:
30th June 2004 valuation 573.0 291.4 - 864.4
Prior years' valuation plus subsequent costs 30.9 - - 30.9
Cost - - 0.6 0.6
603.9 291.4 0.6 895.9
Adjustment for UITF28 - lease incentive debtors (6.5) (0.8) - (7.3)
597.4 290.6 0.6 888.6
Short leasehold property with a carrying value of £38.2 million (December 2003 -
£37.7 million) is included in leasehold property above. Investment property in
the course of development with a carrying value of £30.9 million (December 2003
- £4.2 million) is included in freehold land and buildings above.
The freehold land and buildings and leasehold property, other than those in the
course of development, were revalued at 30th June 2004 by either CB Richard
Ellis Limited or Keith Cardale Groves (Commercial) Limited, as external valuers,
on the basis of market value as defined by the Appraisal and Valuation Manual
published by the Royal Institution of Chartered Surveyors.
At 30th June 2004, the historical cost of the freehold land and buildings and
leasehold property owned by the group was £674.1 million (December 2003 - £598.5
million).
11. Deferred tax
£m
At 1st January 2004 11.5
Movement during the period 0.3
At 30th June 2004 11.8
The provision for deferred tax relates to timing differences on accelerated
capital allowances and other reversing timing differences.
A taxation liability of approximately £50.3 million (December 2003 - £52.7
million) would arise on the disposal of land and buildings at the valuation
shown in the balance sheet. This is equivalent to 95p per share (December 2003
- 99p). In accordance with FRS19 "Deferred Tax", no provision has been made for
this.
12. Capital and reserves
Share Profit
premium and
Share Revaluation loss
capital account reserve account
£m £m £m £m
At 1st January 2004 2.6 153.7 208.7 112.6
Surplus on property revaluation - - 19.1 -
Surplus on joint venture's property revaluation - - 1.5 -
Profit realised on disposal of investment - - (13.1) 13.1
properties
Tax attributable to revaluation surplus realised on
disposal of investment properties - - - (3.2)
Retained profit for the period - - - 5.8
At 30th June 2004 2.6 153.7 216.2 128.3
13. Net asset value per share
Net asset value per share has been calculated on the basis of net assets at 30th
June 2004 of £500,765,000 (December 2003 - £477,589,000) and the number of
shares in issue at 30th June 2004 of 53,167,000 (December 2003 - 53,167,000).
An adjusted net asset value per share figure has been calculated using net
assets of £512,586,000 (December 2003 - £489,092,000). This figure excludes
the deferred tax provided in accordance with FRS19 on the basis that it is
unlikely that this liability will crystallise.
14. Reconciliation of operating profit to net cash inflow from operating
activities
Half year Half year
Year
to to to
30.6.04 30.6.03 31.12.03
£m £m £m
Operating profit 18.3 17.9 33.9
Depreciation charge - 0.2 0.3
(Increase)/decrease in debtors (3.3) 2.9 (1.7)
Increase/(decrease) in creditors 0.7 (4.2) (3.1)
Effect of other deferrals and accruals
on operating activity cash flow (0.2) 2.7 0.8
Net cash inflow from operating activities 15.5 19.5 30.2
15. Reconciliation of net cash flow to movement in net debt
Half year Half
year Year
to to to
30.6.04 30.6.03 31.12.03
£m £m £m
(Increase)/decrease in cash in the period (0.2) (2.9) 0.6
Increase in cash on deposit - (4.5) (4.5)
Cash inflow/(outflow) from movement
in bank loans 61.6 (1.5) 8.9
Movement in net debt in the period 61.4 (8.9) 5.0
Opening net debt 301.8 296.8 296.8
Closing net debt 363.2 287.9 301.8
16. Revaluation of financial instruments
The group's fixed rate debt and interest rate hedging instruments were revalued
at 30th June 2004. The fair value adjustment, arising as a result of this
revaluation, which is not reflected in the financial statements, was a negative
£10.2 million (December 2003 - negative £13.8 million). After tax relief, this
would reduce the group's net asset value per share by 13p (December 2003 - 18p).
17. This statement does not comprise statutory accounts as defined in Section
240 of the Companies Act 1985. The financial information for the year ended
31st December 2003 is an extract from the latest group accounts. The accounts
received an unqualified independent auditor's report and have been filed with
the Registrar of Companies. The results for the half years ended 30th June 2003
and 2004 are unaudited.
18. Copies of this announcement are being posted to shareholders on 15th
September 2004, and will be available on the company's website,
www.derwentvalley.co.uk, from the date of this announcement. Copies will also
be available from the Company Secretary, Derwent Valley Holdings plc, 25 Savile
Row, London, W1S 2ER.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 10th January 2025
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