Interim Results
Gresham House PLC
26 September 2001
CHAIRMAN'S INTERIM STATEMENT
Dear Shareholder,
The results for the half year ended 30th June, 2001 show a return on ordinary
activities after taxation for the combined Revenue and Capital Accounts of
£1.05m against £12.8m for the comparable period last year.
Whilst these results are, as expected, not as dramatic as those last year which
were largely due to our holding in Transense Technologies plc, both dividend and
interest income and rental income have increased compared with the results for
the half year to 30th June, 2000 although expenses have also increased primarily
as a result of increased payroll costs and professional fees incurred relating
to continuing work on our property portfolio.
The Balance Sheet shows an improvement in the fully diluted Net Asset Value per
ordinary share of 548.4p as at 30th June, 2001, an increase of 3.9% since the
year end. Shareholders will note that the major movement during the period has
been an increase in the Investments in Securities with a similar reduction in
Current assets. During the period a further 75,000 ordinary shares were issued
at par as a result of the exercise of options under both the Approved and
Unapproved Share Option Schemes.
Since that time of course, following the atrocities in the United States,
stockmarkets worldwide have fallen considerably, with the FTSE 100 index being
its lowest for four years. This has therefore affected the valuation of our
investment portfolio since the half year end. Our largest holding is still
210,000 ordinary shares in Transense Technologies plc which has fallen from
£22.88 per share at the period end to £9.875 per share as at close of business
on 25th September.
Proposals with regard to the 2.5% Gresham House Finance plc Secured Loan Stock
due for repayment on 31st December, 2001 are expected to be issued shortly.
A P Stirling
Chairman
26th September, 2001
UNAUDITED CONSOLIDATED STATEMENT OF TOTAL RETURN
for the Half year ended 30 June, 2001
6 months to 6 months to
30th June, 2001 30th June, 2000
Unaudited Unaudited
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 529 529 - 8,446 8,446
Income:
Dividend and interest
income 251 - 251 199 - 199
Rental income 1,573 - 1,573 1,387 - 1,387
Income from
subsidiaries 193 - 193 4,048 - 4,048
Other Expenses (791) - (791) (505) - (505)
Net return before
finance costs and
taxation 1,226 529 1,755 5,129 8,446 13,575
Interest payable and
similar charges (704) - (704) (786) - (786)
Discount on loan
acquired - - - -
Return on ordinary
activities before
taxation 522 529 1,051 4,343 8,446 12,789
Taxation - - (14) (14)
Return on ordinary
activities after
taxation attributable
to equity
shareholders 522 529 1,051 4,329 8,446 12,775
Interim dividend -
Equity shares - - - - - -
Transfer to reserves 522 529 1,051 4,329 8,446 12,775
Basic return per
Ordinary Share 12.1p 12.3p 24.4p 102.1p 199.3p 301.4p
Diluted return per
ordinary Share 11.5p 11.7p 23.2p 95.3p 185.9p 281.2p
12 months to
31st December, 2000
Audited
Revenue Capital Total
£'000 £'000 £'000
Gains on investments - 10,047 10,047
Income:
Dividend and interest income 431 431
Rental income 3,101 3,101
Income from subsidiaries 5,057 5,057
Other Expenses (2,405) (2,405)
Net return before finance costs and taxation 6,184 10,047 16,231
Interest payable and similar charges (1,513) (1,513)
Discount on loan acquired 525 525
Return on ordinary activities before taxation 5,196 10,047 15,243
Taxation (6) (6)
Return on ordinary activities after taxation
attributable to equity shareholders 5,190 10,047 15,237
Interim dividend - Equity shares (64) (64)
Transfer to reserves 5,126 10,047 15,173
Basic return per Ordinary Share 122.4p 237.0p 359.4p
Diluted return per Ordinary Share 115.1p 222.9p 338.0p
All revenue capital items in the above statement derive from continuing
operations
UNAUDITED CONSOLIDATED BALANCE SHEET
as at 30th June 2001
30th June, 30th June, 31st December,
2001 2000 2000
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Investments
Securities 12,463 7,067 8,631
Properties 27,131 27,620 27,731
Tangible assets 413 495 485
40,007 35,182 36,847
Current assets 10,181 11,689 13,131
Creditors - amounts falling due
within one year 9,628 2,949 10,086
Net current assets 553 8,740 3,045
Total assets less current liabilities 40,560 43,922 39,892
Creditors - amounts falling due after
more than one year 15,420 22,263 15,822
25,140 21,659 24,070
Capital and reserves
Called up share capital 1,092 1,060 1,073
Share premium account 242 242 242
Other reserves
Revaluation reserve 7,829 7,829 7,829
Capital reserve - realised 22,934 21,812 22,919
Capital reserve - unrealised 5,708 4,700 5,194
Revenue reserves (12,665) (13,984) (13,187)
Equity shareholders' funds 25,140 21,659 24,070
Net asset value per ordinary share
Basic 575.5p 511.1p 560.7p
Diluted 548.4p 476.8p 527.8p
UNAUDITED GROUP CASH FLOW STATEMENT
for the Half Year to 30th June, 2001
30th June, 30th June, 31st December,
2001 2000 2000
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Cashflow from operating activities
Investment income received 31 14 55
Interest received 194 183 370
Rental income received 1,492 1,503 3,113
Other cash receipts / (payments) (1,320) 4,052 3,456
Net cash inflow from operating activities 397 5,752 6,994
(Note 2)
Returns on Investment and servicing of finance
Interest paid on 2.5% Secured
Redeemable Loan Stock, 2001 (76) (76) (152)
Interest paid on property loans (751) (695) (1,061)
Net cash outflow from Investments
and servicing of finance (827) (771) (1,213)
Capital expenditure and financial investment
Sale / (purchase) of tangible assets 253 (20) (32)
Purchase of investments (3,843) (997) (1,814)
Sale of Investments 540 4,431 5,810
Net loans repaid / (advanced) 54 (378) (435)
Purchase of investment properties (51) - (686)
Sale of investment properties 651
Purchase of developments in hand (224) (576) (1,706)
Net cash (outflow) / inflow from capital
expenditure and financial Investment (2,620) 2,460 1,137
Corporation tax paid - - -
Equity dividends paid (64) (42) (42)
Cash (outflow) / Inflow before use of
liquid resources and financing (3,114) 7,399 6,876
Management of liquid resources
(Acquisition)/ sale of listed securities
held for dealing (186) (93) 180
Financing
Repayment of loans (323) (2,624) (2,823)
Share capital issued at par 19 - 13
(304) (2,624) (2,810)
(Decrease)/Increase In cash (3,604) 4,682 4,246
(Note 3)
STATEMENT OF MOVEMENT IN SHAREHOLDERS' FUNDS
6 months to 6 months to 12 months to
30th June, 30 June, 31st December,
2001 2000 2000
£'000 £'000 £'000
Retained profit for the period 522 4,329 5,126
Net movement on capital reserves 529 8,446 10,047
Exercise of options to subscribe
for share capital 19 - 13
1,070 12,775 15,186
Shareholders' funds at beginning of period 24,070 8,884 8,884
Shareholders' funds at end of period 25,140 21,659 24,070
NOTES TO THE INTERIM STATEMENT
1 Basis of Preparation
(a) The interim statement has been prepared in accordance with the accounting
policies set out in the Group's Report and Accounts for the year ended 31st
December, 2000.
(b) The Interim statement is neither audited nor reviewed. The figures for the
year ended 31st December, 2000 do not comprise statutory accounts for the
purpose of Section 240 of the Companies Act 1985 and have been extracted
from the Group's full accounts for that year, which received an unqualified
Auditors' Report and did not contain a statement under section 237(2) or (3)
of the Companies Act 1985. The accounts have been filed with the Registrar
of Companies.
(c) Following the Company's normal accounting practice the figures do not take
into account the results of significant investments except for dividends
received which amounted to £1,717 (2000; £2,119)
2. Reconciliation of operating profit to operating cash flows.
6 months to 6 months to 12 months to
30th June, 30th June, 31st December,
2001 2000 2000
£'000 £'000 £'000
Return on ordinary activities before taxation 522 4,343 5,196
Interest payable 704 786 1,513
1,226 5,129 6,709
Depreciation 9 10 32
Discount on acquisition of loan - - (525)
Profit on sale of tangible assets (189)
Provision against loans and guarantees - 145 -
Taxation on investment income - (3) -
Corporation tax adjustment - (10) (6)
(Increase) / decrease in debtors (388) 211 (31)
(Decrease) / increase in creditors (261) 270 815
Net cash flow from operating activities 397 5,752 6,994
3. Reconciliation of net cash flow to movement
in net debt
(Decrease)/increase in cash for the period (3,604) 4,682 4,246
Cash outflow from repayment of debt 323 2,624 2,823
Cash outflow/inflow) from increase/(decrease)
in liquid resources 186 93 (180)
Change in net debt resulting from cash flows (3,095) 7,399 6,889
Discount on acquisition of loan by group
undertaking - 525 525
Movement in net debt in the period (3,095) 7,924 7,414
Net debt at beginning of period (13,946) (21,360) (21,360)
Net debt at end of period (17,041) (13,436) (13,946)
4. Analysis of net debt Other
At 1st Cash non-cash At 30th
January, Flow changes June,
2001 2001
£'000 £'000 £'000 £'000
Cash at bank 2,123 (198) 1,925
Cash at brokers 6,684 (3,496) 3,188
Overdrafts (90) 90 -
(3,604)
Debt due within one year (6,970) 323 (401) (7,048)
Debt due after one year (15,822) - 401 (15,421)
(3,281)
Current asset investments 129 186 315
(13,946) (3,095) - (17,041)
It is proposed that copies of the Group's Interim Results will be sent to
shareholders by 5th October, 2001 and will be available at the registered
office, 36 Elder Street, London E1 6BT, from that date.
Latest directors dealings
- 25 minutes ago Aptamer Group
- 31 minutes ago Pacific Assets Trust
- 35 minutes ago M&G
- 55 minutes ago Oxford Instruments
- 1 hour ago CMC Markets