Half-yearly report
GRESHAM HOUSE PLC
INTERIM RESULTS
6 MONTHS ENDED 30 JUNE 2009
CHAIRMAN'S INTERIM STATEMENT AND MANAGEMENT REPORT
I am pleased to report that the half year results show a much reduced revenue
loss of £140,000 compared to the loss for the year to 31st December, 2008 of
£3,140,000. The annual result included a provision of £2,220,000 against the
value of the development sites which, if excluded, would have reduced the 2008
loss to £920,000. The half year loss compares with a loss for the half year
ending 30th June, 2008 of £85,000.
Rental income for the current half year was £1,027,000. This fell by £195,000
compared to the half year to 30th June, 2008 as a result of the loss of income
at Newton-le-Willows where a major distribution tenant reduced their space
requirement at the expiry of their lease.
Both administration overheads and finance costs were lower than the
corresponding half year in 2008. The administration overheads reduction of
£236,000 is principally due to overall consolidation of staff and considerably
lower legal fees than in 2008 whilst the finance cost reduction from £498,000 to
£320,000 is due to the reduction in interest rates since last year. Interest
rates on the majority of the loans are now locked in for at least 2 years so it
is anticipated that this benefit will be ongoing.
Capital account for the half year to 30 June 2009
The capital surplus for the half year was £2,628,000 against a loss in the
similar period last year of £2,524,000. The surplus was as a result of the
value of our quoted investment portfolio increasing by £2,675,000 in the six
months to 30th June, 2009 and net realised gains on share disposals of £186,000.
The principal reason for the significant increase in the value of the investment
portfolio was the performance of Hallin Marine which increased in value by 76%
following the announcement of record results in March, resulting in an
unrealised gain of £2,368,000.
The overall increase in the share portfolio was partly offset by the provision
made against Investment Properties of £233,000 by prudently writing off capital
expenditure incurred in the half year.
As a consequence of the above the basic net asset value per share as at 30th
June, 2009 shows a healthy increase of 46.8 p to 452.8p per share, representing
an increase of 11.5% since the year end.
However, following a trading update in July 2009, Hallin Marine's share price
has fallen back by 38p as at close of business on 26th August, 2009 against its
valuation as at 30th June, resulting in a decrease in the value of our
investment of £1,406,000. Had this occurred in the first half our increase in
net asset value at that time would have been limited to 18.0p.
Finance
I am delighted to report that all loans relating to Property Investments have
now been refinanced for a minimum period of two years. The Royal Bank of
Scotland has renewed loans totalling £3,514,000 which mature in June 2011 with
the balance of our loan amounting to £14,215,000 maturing in 2012.
A new loan from The Royal Bank of Scotland of £3.6 million replaced the existing
facility from Morgan Stanley on which we obtained a settlement discount of
£148,000. This profit will be taken in the accounts for the full year.
The group's cash balance as at 30th June, 2009 amounted to £2.7 million. We
intend to ensure that we have a surplus of cash available to enable us to cover
any adverse cash movements resulting from tenant failure or voids in our
property portfolio. We continue to follow our stated policy of progressive
realisation of the investment portfolio.
Property portfolio
As is the Company's usual practice no interim independent valuations have been
carried out as at 30th June, 2009. We have maintained the value of the
properties at 31st December, 2008 valuations and, as a result, have provided for
£233,000 against capital expenditure incurred in the first 6 months to 30th
June, 2009.
Whilst we have let 17,000 sq.ft. of warehouse space at Southern Gateway, Speke
so far this year, we anticipate losing further rental income at Newton-le-
Willows later in the year as two leases expire. We understand that the present
distribution tenant is unlikely to renew all 217,000 sq.ft. currently occupied.
Strenuous efforts are being made to improve lettings but there is a significant
amount of industrial and distribution space available on the market in the North
West. Our recently constructed warehouse at Northern Gateway, Knowsley has also
proved difficult to let but we remain optimistic of a potential sale of this
facility.
We are implementing planning consents at Newton-le-Willows, Vincent Lane,
Dorking and a 6 acre site at Knowsley. We expect to have positive news on the
Newton-le-Willows application early next year where an application for 400
houses and around 25,000 sq.ft. of commercial space is to be submitted shortly.
It is our understanding that the local council are likely to be supportive of
our plans.
Outline terms have been agreed for the sale of Vincent Lane, Dorking to a major
food retailer and discussions are ongoing with the local council to achieve the
required planning consent.
A new planning application is being submitted in respect of our 6 acre
development site in Knowsley to include food retail.
Terms have been agreed with Mole Valley council for the release of an onerous
Section 106 agreement on our development site in Dorking. This had restricted
lettings to local users and the release of this condition will enable us to
market the unfettered site to secure national as well as local tenants.
Investment portfolio
Investments sales during the first half year amounted to £575,000 resulting in
net realised gains £186,000. We continue with the policy of reducing the
investment portfolio when the opportunities arise.
The value of the portfolio increased by £2,675,000 over the period to £9,017,000
at the 30th June, 2009. The principal increase was that of our largest
investment, which continues to be Hallin Marine, recording a rise of £2,368,000
to £5,476,000. As mentioned above however the share price has since fallen back.
Future prospects
Our approach of progressively improving our property portfolio and the
opportunity to release potential planning gains will to some extent offset the
continued downward pressure on the commercial property market. Capital growth
(all properties), as measured by the Investment Property Data Bank (IPD), has
decreased by 13.3% since 1st January, 2009. Signs are looking positive that we
may be close to the bottom of the market as the IPD index produced the lowest
negative capital growth decline in two years, falling by 0.13% in July 2009.
The market however remains difficult through falling rents and tenant failure.
We continue to remain cautiously optimistic that we will gradually see a return
in capital value appreciation and more liquidity in the debt markets to enable a
slow recovery in 2010.
We would like to thank the executive board and the staff for their efforts in
securing improved results and extending bank loans in what has continued to be a
very difficult period.
Tony Ebel
Chairman
27th August, 2009
GRESHAM HOUSE PLC
INTERIM RESULTS
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Half year ended Half year ended Year ended
30 June 2009 30 June 2008 31 December 2008
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Income:
Dividend and
interest income 140 - 140 157 - 157 266 - 266
Rental income 1,027 - 1,027 1,222 - 1,222 2,451 - 2,451
Other operating
income 46 - 46 195 - 195 (6) - (6)
----- ----- ----- ----- ----- ----- ----- ----- -----
Total Revenue 1,213 - 1,213 1,574 - 1,574 2,711 - 2,711
Gains/(losses)
on investments
held at fair
value - 2,861 2,861 - 395 395 - (6,330)(6,330)
Movement in fair
value of property
investments - (233) (233) - (3,292)(3,292) -(13,512)(13,512)
Profit on disposal
of property,plant
& equipment - - - - - - - 507 507
----- ----- ----- ----- ----- ----- ----- ----- -----
Total income
and gains/
(losses) on
investments 1,213 2,628 3,841 1,574 (2,897)(1,323) 2,711(19,335)(16,624)
----- ----- ----- ----- ------ ------ ----- ------ ------
Operating Costs
Property out-
goings and
impairments (559) - (559) (411) - (411) (3,291) - (3,291)
Administrative
overheads (464) - (464) (700) - (700) (1,462) - (1,462)
----- ----- ----- ----- ----- ----- ----- ----- -----
(1,023) - (1,023)(1,111) - (1,111) (4,753) - (4,753)
----- ----- ----- ----- ----- ----- ----- ----- -----
Group operating
profit/(loss) 190 2,628 2,818 463 (2,897)(2,434)(2,042)(19,335)(21,377)
Finance costs (320) - (320) (498) - (498) (927) - (927)
Share of
associate's
operating loss (10) - (10) (50) - (50) (171) - (171)
----- ----- ----- ----- ----- ----- ----- ----- -----
Group and share
of associate's
operating loss
before taxation (140) 2,628 2,488 (85)(2,897)(2,982)(3,140)(19,335)(22,475)
Taxation - - - - 373 373 - 848 848
----- ----- ----- ----- ----- ----- ----- ----- ------
Profit/(loss) and
total comprehensive
income for the
period (140) 2,628 2,488 (85)(2,524)(2,609)(3,140)(18,487)(21,627)
===== ===== ===== ===== ===== ===== ===== ====== ======
Attributable to:
Equity holders
of the parent (312) 2,646 2,334 (10)(2,388)(2,398)(2,874)(17,943)(20,817)
Minority
interests 172 (18) 154 (75) (136) (211) (266) (544) (810)
----- ----- ----- ----- ----- ----- ----- ----- ------
(140) 2,628 2,488 (85)(2,524)(2,609)(3,140)(18,487)(21,627)
===== ===== ===== ===== ===== ===== ===== ====== ======
Basic earnings/(loss) per
Ordinary share (note 9) 47.8p (49.2p) (426.6p)
======= ===== =======
Diluted earnings/(loss) per
Ordinary share (note 9) 47.8p (49.2p) (426.6p)
======= ===== =======
GRESHAM HOUSE PLC
INTERIM RESULTS
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Half year ended 30 June 2009
Equity
attributable
Ordinary Share to equity
share Share option Capital Retained share Minority
capital premium reserve reserve Earnings holders interest Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at
31 December
2008 1,220 847 42 30,363 (12,650) 19,822 331 20,153
Loss for the
period being
total income
and expense for
the period - - - 2,646 (312) 2,334 154 2,488
Ordinary
dividend
paid (note 8) - - - - (49) (49) - (49)
----- ----- ----- ------ ----- ------ ----- -----
Balance at
30 June 2009 1,220 847 42 33,009 (13,011) 22,107 485 22,592
===== ===== ===== ====== ====== ====== ===== ======
Half year ended 30 June 2008
Equity
attributable
Ordinary Share to equity
share Share option Capital Retained share Minority
capital premium reserve reserve Earnings holders interest Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at
31 December
2007 1,219 831 44 48,306 (9,538) 40,862 1,141 42,003
Loss for the
period being
total income
and expense for
the period - - - (2,388) (10) (2,398) (211)(2,609)
Ordinary
dividend
paid (note 8) - - - - (244) (244) - (244)
----- ----- ----- ------ ----- ------ ----- -----
Balance at
30 June 2008 1,219 831 44 45,918 (9,792) 38,220 930 39,150
===== ===== ===== ====== ===== ====== ===== ======
Year ended 31 December 2008
Equity
attributable
Ordinary Share to equity
share Share option Capital Retained share Minority
capital premium reserve reserve Earnings holders interest Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at
31 December
2007 1,219 831 44 48,306 (9,538) 40,862 1,141 42,003
Loss for the
period being
total income
and expense for
the period - - - (17,943) (2,874) (20,817) (810)(21,627)
Ordinary
dividend
paid (note 8) - - - - (244) (244) - (244)
Issue of shares 1 16 - - - 17 - 17
Share based
payments - - (2) - 6 4 - 4
----- ----- ----- ------ ----- ------ ----- -----
Balance at 31
December 2008 1,220 847 42 30,363 (12,650) 19,822 331 20,153
===== ===== ===== ====== ====== ====== ===== ======
GRESHAM HOUSE PLC
INTERIM RESULTS
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2009
30 June 30 June 31 December
2009 2008 2008
Assets £'000 £'000 £'000
Non current assets
Investments held at fair value 9,017 14,347 6,688
Property investments 25,750 35,740 25,750
Investment in associate - - -
Property, plant and equipment 3 481 3
------- ------- -------
Total non current assets 34,770 50,568 32,441
------- ------- -------
Current assets
Trade and other receivables 358 683 361
Accrued income and prepaid expenses 514 645 1,721
Other current assets 3,361 5,985 3,432
Cash and cash equivalents 2,741 1,180 1,839
------- ------- -------
Total current assets 6,974 8,493 7,353
------- ------- -------
Total assets 41,744 59,061 39,794
------- ------- -------
Current liabilities
Trade and other payables 1,374 1,799 1,702
Short term borrowings 7,363 11,216 17,939
------- ------- -------
Total current liabilities 8,737 13,015 19,641
------- ------- -------
Total assets less current liabilities 33,007 46,046 20,153
Non current liabilities
Long term borrowings 10,415 6,421 -
Deferred taxation - 475 -
------- ------- -------
10,415 6,896 -
------- ------- -------
Net assets 22,592 39,150 20,153
======= ======= =======
Capital and reserves
Ordinary share capital (note 10) 1,220 1,219 1,220
Share premium 847 831 847
Share based payments 42 44 42
Capital reserve 33,009 45,918 30,363
Retained earnings (13,011) (9,792) (12,650)
------- ------- -------
Equity attributable to equity
shareholders 22,107 38,220 19,822
Minority interest 485 930 331
------- ------- -------
Total equity 22,592 39,150 20,153
======= ======= =======
Basic net asset value per ordinary share 452.8p 783.7p 406.0p
(note 11) ======= ======= =======
Diluted net asset value per ordinary share 452.8p 781.3p 405.3p
(note 11) ======= ======= =======
GRESHAM HOUSE PLC
INTERIM RESULTS
UNAUDITED CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE HALF YEAR ENDED 30 JUNE 2009
12 months to
6 months to 6 months to 31 December
30 June 2009 30 June 2008 2008
£'000 £'000 £'000
Cashflow from operating activities
Investment income received 117 104 166
Interest received 23 53 100
Rental income received 1,027 1,071 2,431
Other cash payments (984) (613) (1,601)
------- ------- -------
Net cash generated from operations 183 615 1,096
(note 14)
Interest paid on property loans (331) (506) (967)
------- ------- -------
Net cash flows from operating activities (148) 109 129
======= ======= =======
Cash flows from investing activities
Purchase of investments (31) (225) (264)
Investment in associate (10) (50) (171)
Sale of investments 564 538 1,511
Expenditure on investment properties (233) (224) (513)
Disposal of property, plant & equipment 980 - -
Disposal of investment properties - - 56
Purchase of developments in hand (10) - (260)
------- ------- -------
1,260 39 359
======= ======= =======
Cash flows from financing activities
Repayment of loans (10,804) (221) (443)
Receipt of loans 10,643 160 684
Share capital issued - - 17
Equity dividends paid (49) (244) (244)
------- ------- -------
(210) (305) 14
======= ======= =======
Increase/(decrease) in cash and
cash equivalents 902 (157) 502
Cash and cash equivalents at start of period 1,839 1,337 1,337
------- ------- -------
Cash and cash equivalents at end of period 2,741 1,180 1,839
======= ======= =======
GRESHAM HOUSE PLC
INTERIM RESULTS
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1 REPORTING ENTITY
Gresham House plc ("the Company") is a company incorporated in England. The
unaudited consolidated interim financial statements of the Company as at and for
the six months ended 30th June 2009 comprise the Company and its subsidiary
undertakings (together referred to as the "Group"). All intra-group
transactions, balances, income and expenses are eliminated on consolidation.
2 STATEMENT OF COMPLIANCE
These unaudited consolidated interim financial statements have been prepared in
accordance with International Financial Reporting Standard (IFRS) IAS 34 Interim
Financial Reporting. They do not constitute statutory accounts within the
meaning of section 435 of the Companies Act 2006. The Group has adopted IAS 1
(Revised) Presentation of Financial Statements for the first time in these
interim financial statements.
The unaudited consolidated interim financial statements should be read in
conjunction with the consolidated financial statements of the Group and Company
as at and for the year ended 31 December 2008 which were prepared in accordance
with IFRS as adopted by the European Union and those parts of the Companies Act
1985 applicable to companies reporting under IFRS, and have been reported on by
the Company's auditors. The auditors' report was unqualified and did not contain
a statement under section 498(2) or (3) of the Companies Act 2006.
The unaudited consolidated interim financial statements were approved by a duly
appointed and authorised committee of the Board of Directors on 27 August 2009.
The financial information for the half years ended 30 June 2009 and 30 June
2008 has not been audited and the auditors have not reported on or reviewed
these interim financial statements. The information for the year ended 31
December 2008 has been extracted from the latest published audited financial
statements.
3 SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied by the Group in these unaudited consolidated
interim financial statements are the same as those applied by the Group in its
consolidated financial statements as at and for the year ended 31 December
2008.
Where presentational guidance set out in the Statement of Recommended Practice
("the SORP") for investment trusts issued by the Association of Investment
Companies ("the AIC") is consistent with the requirements of IFRS and
appropriate in the context of the Company's activities, the directors have
sought to prepare the interim financial statements on a basis compliant with the
recommendations of the SORP.
4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of the unaudited consolidated interim financial statements
requires the use of estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
In preparing these unaudited consolidated interim financial statements, the
significant judgements made by management were the same as those that applied to
the consolidated financial statements as at and for the year ended 31 December
2008.
5 PRINCIPAL RISKS
The principal risks of the Group are consistent with those disclosed in the
consolidated financial statements as at and for the year ended 31 December
2008.
6 INCOME
Half year Half year
ended 30 ended 30 Year ended 31
June 2009 June 2008 December 2008
Income from investments £'000 £'000 £'000
Dividend income (UK Listed) 117 104 166
Interest receivable: bank and brokers 9 21 63
Other 14 32 37
----- ----- -----
140 157 266
Rental income 1,027 1,222 2,451
----- ----- -----
1,167 1,379 2,717
----- ----- -----
Other operating income
Dealing profits and losses (7) 27 (178)
Management fees receivable 44 124 141
Other 9 44 31
----- ----- -----
46 195 (6)
----- ----- -----
Total income 1,213 1,574 2,711
===== ===== =====
Total income comprises:
Dividends 117 104 166
Interest 23 53 100
Other income 1,073 1,417 2,445
----- ----- -----
1,213 1,574 2,711
===== ===== =====
7 FINANCE COSTS
Half year Half year
ended 30 ended 30 Year ended 31
June 2009 June 2008 December 2008
£'000 £'000 £'000
Interest payable on loans and overdrafts 320 498 927
===== ===== =====
In addition:
Interest capitalised on development properties 43 147 269
===== ===== =====
8 DIVIDENDS
Half year Half year
ended 30 ended 30 Year ended 31
June 2009 June 2008 December 2008
£'000 £'000 £'000
Amounts recognised as distributions to
equity holders in the period:
Final dividend for the year ended 31st
December, 2008 of 1p (2007: 5p) per share 49 244 244
======= ======= =======
9 EARNINGS PER SHARE
Basic and diluted earnings per share
The Basic and diluted earnings per share figure is based on the net profit
attributable to equity holders of the parent for the half year of £2,334,000
(half year ended 30 June, 2008: loss of £2,398,000; year ended 31 December,
2008: loss of £20,817,000) and on 4,881,880 (half year ended 30 June, 2008:
4,876,880; year ended 31 December, 2008: 4,879,694) ordinary shares, being the
weighted average number of ordinary shares in issue during the period.
The calculation for diluted earnings per share for the period ended 30 June,
2009 should have included a figure in respect of shares deemed to have been
issued at nil consideration as a result of options granted. However as this
would have reduced the weighted average number of shares in issue by 9,247 and
hence result in the diluted earnings per share being greater than the basic
earnings per share they have not been recognised. The calculation for the period
ended 30 June, 2008 and year ended 31 December, 2008 is the same as the basic
earnings per share as the result for the respective periods was a loss.
The earnings per ordinary share figures detailed above can be further analysed
between revenue and capital as follows:-
Half year Half year
ended 30 ended 30 Year ended 31
June 2009 June 2008 December 2008
£'000 £'000 £'000
Net revenue loss attributable to equity
holders of the parent (312) (10) (2,874)
Net capital profit/(loss) attributable to
equity holders of the parent 2,646 (2,388) (17,943)
------- ------- -------
Net total profit/(loss) 2,334 (2,398) (20,817)
======= ======= =======
Weighted average number of ordinary shares in issue during the period
Basic and diluted 4,881,880 4,876,880 4,879,694
Basic and diluted earnings per share Pence Pence Pence
Revenue (6.4) (0.2) (58.9)
Capital 54.2 (49.0) (367.7)
------- ------- -------
Total basic and diluted earnings per share 47.8 (49.2) (426.6)
======= ======= =======
10 ORDINARY SHARE CAPITAL
30 30 31
June 2009 June 2008 December 2008
Share capital £'000 £'000 £'000
Authorised: £4,750,000 (30 June 2008 &
31 December 2008: £4,750,000)
Allotted: Ordinary - 4,881,880 (30 June
2008:4,876,880, 31 December 2008: 4,881,880)
fully paid shares of 25p each 1,220 1,219 1,220
======= ======= =======
11 NET ASSET VALUE PER SHARE
(i) As at 30 June, 2009
Basic and diluted net asset value
Basic and diluted net asset value per ordinary share is based on Equity
attributable
to equity shareholders at each respective period end and on 4,881,880 ordinary
shares being the number of ordinary shares in issue at the period end.
The calculation for diluted net asset value should have included a figure in
respect of shares deemed to have been issued at nil consideration as a result
of options granted. However as this would have reduced the number of ordinary
shares in issue at the period end by 9,247 and hence result in the diluted net
asset value per share being greater than the basic net asset value per share
they have not been recognised.
(ii) As at 30 June, 2008 and 31 December, 2008:
Basic
Basic net asset value per ordinary share is based on Equity attributable to
equity shareholders at each respective period end on 4,876,880 (year ended 31
December, 2008: 4,881,880) ordinary shares being the number of ordinary shares
in issue at the period end.
Diluted
Diluted net asset value per ordinary share is based on Equity attributable to
equity shareholders at each respective period end and on 4,891,946 (year ended
31 December, 2008: 4,890,788) ordinary shares.
The number of shares is based upon the number of shares in issue at the period
end together with those number of shares deemed to have been issued at nil
consideration as a result of option granted.
12 INVESTMENTS - SECURITIES
As at 30 June 2009 the Company's ten largest investments were:-
Market % of
Value Portfolio
£'000
UK Listed Securities
Welsh Industrial Investment Trust plc 473 5.2
Securities dealt in under AIM
Byotrol plc 104 1.2
Hallin Marine Subsea International plc 5,476 60.7
Plus Markets Group plc 181 2.0
Portland plc 144 1.6
SpaceandPeople plc 873 9.7
Securities dealt in under PLUS Market
Wheelsure Holdings plc 175 1.9
Unlisted Securities
Audiogravity Holdings Ltd 228 2.5
Gizmo Packaging Limited 188 2.1
Strathclyde University Incubator Limited 120 1.3
------ -----
7,962 88.2
====== =====
13 RELATED PARTY TRANSACTIONS
Mr A. G. Ebel has a controlling interest in Watlington Securities Limited, a
company which invoiced the Group a sum of £nil (half year ended 30 June, 2008:
£nil; year ended 31 December, 2008: £14,910) during the period. Conversely the
Group invoiced the same company £33,969 (half year ended 30 June, 2008: £20,000;
year ended 31 December, 2008: £57,364). At the period end there remained
balances outstanding of £nil (half year ended 30 June, 2008: £705; year ended 31
December, 2008: £nil) and £5,214 (half year ended 30 June, 2008: £23,500; year
ended 31 December, 2008: £nil) respectively.
Mr D Lucie-Smith has an interest in Pelham (London) Limited which invoiced the
Group a sum of £11,504 (half year ended 30 June, 2008: £nil; year ended 31
December, 2008: £9,264). At the period end there remained balances outstanding
of £nil (half year ended 30 June, 2008: £nil; year ended 31 December, 2008:
£9,264).
The Rowe Trust holds an interest of 644,209 (year ended 31 December, 2008:
644,209) ordinary shares in the Company. Mrs R H Chopin-John is a trustee of
the Rowe Trust but has no beneficial interest.
Monies due to Mr D Lucie-Smith of £62,500 (half year ended 30 June, 2008: £nil;
year ended 31 December, 2008: £29,000) and Mr J Lorimer of £50,000 (half year
ended 30 June, 2008: £nil; year ended 31 December, 2008: £23,000) have been
invoiced by businesses in which they have a material interest.
All figures shown above exclude VAT other than the balances outstanding at the
respective period ends which are shown inclusive of VAT.
14 RECONCILIATION OF OPERATING PROFIT TO OPERATING CASH FLOWS
Half year Half year
ended 30 ended 30 Year ended 31
June 2009 June 2008 December 2008
£'000 £'000 £'000
Revenue return before taxation (140) (85) (3,140)
Interest payable 320 498 927
Share based payments - - 4
Depreciation - 6 11
Share of associate's losses 10 50 171
------- ------- -------
190 469 (2,027)
(Increase)/decrease in current assets 310 (174) 2,869
Increase/(decrease) in current liabilities (317) 320 254
------- ------- -------
183 615 1,096
======= ======= =======
15 SEGMENTAL REPORTING
Property
Investment Investment Consolidated
£'000 £'000 £'000
Half year ended 30 June 2009
Revenue 163 1,027 1,190
======== ======== ========
Result 3,024 235 3,259
======== ========
Unallocated corporate expenses (464)
--------
Operating loss 2,795
Share of associate's loss (10)
Interest expense (320)
Interest income 23
--------
Profit before taxation 2,488
========
Half year ended 30 June 2008
Revenue 269 1,251 1,520
======== ======== ========
Result 664 (2,456) (1,792)
======== ========
Unallocated corporate expenses (696)
--------
Operating profit (2,488)
Share of associate's loss (50)
Interest expense (498)
Interest income 54
--------
Loss before taxation (2,982)
========
Year ended 31 December 2008
Revenue 65 2,546 2,611
======== ======== ========
Result (5,758) (14,257) (20,015)
======== ========
Unallocated corporate expenses (1,462)
--------
Operating loss (21,477)
Share of associate's loss (171)
Interest expense (927)
Interest income 100
--------
Loss before taxation (22,475)
========
All revenue is derived from operations within the United Kingdom.
Responsibility Statement of the Directors in respect of the unaudited condensed
consolidated interim financial statements
We confirm that to the best of our knowledge:
(a) the unaudited consolidated interim financial statements, which have been
prepared in accordance with the applicable set of accounting standards, gives a
true and fair view of the assets, liabilities, financial position and profit or
loss of the Group;
(b) the Chairman's interim statement and management report includes a fair
review of the information required by:
(i)DTR 4.2.7R of the Disclosure and Transparency Rule, being an indication of
important events that have occurred during the first six months of the
financial year and their impact on the unaudited consolidated financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the year; and
(ii)DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during that period; and any changes in the related
party transactions described in the last annual report that could do so.
Principal risks and uncertainties
The Board consider the principal risks and uncertainties relating to the Group
for the next six months to be the same as detailed in the consolidated financial
statements for the year ended 31 December 2008. Full details of the risks and
uncertainties are detailed under the Investment Policy section of those
financial statements.
The principal risks to the business are:-
Economic
Strategic and investment
Regulatory
Financial and operating
Market and market liquidity; and
Asset liquidity.
A G Ebel D Lucie-Smith
Chairman Chief Executive Officer
Latest directors dealings
- 2 days ago IntegraFin Holding
- 2 days ago Spirent Communications
- 2 days ago CRH (CDI)
- 2 days ago Bezant Resources
- 2 days ago EJF Investments Ltd NPV