Final Results

Highcroft Investment Trust PLC 15 March 2001 Highcroft Investment Trust P.L.C. Key facts about 2000 * Gross property income up 9% to £1,355,000 * Operating profit up 3% to £1,373,000 * Earnings per share up 4% to 20.3p * Further improved quality of the property portfolio * Net asset value per share up 7% to 631p * Total dividends up 9% to 8.5p per share * Final dividend of 5.5p payable on 11 June 2001 * Annual General Meeting on Thursday 7 June 2001 Highcroft Investment Trust P.L.C. Preliminary Announcement for the year ended 31 December 2000 Summary Results - Operating Activities Operating profit rose to £1,373,000, an increase of 3% on 1999's restated £ 1,329,000. Total income including interest on cash deposits, was £1,568,000 as compared with £1,545,000 in 1999. This figure comprised £1,218,000 of income from investment properties, £319,000 from dividends received and £31,000 from interest received. Property income was up on 1999, representing 78% of total income compared with 74% in 1999. This was a reflection of the increased investment in property, over the last two years, generating increased net income and was also affected by the relatively significant value of special dividends received in 1999. Gross rents receivable were up 9% on 1999 as a result of the purchases made in both 1999 and 2000. Underlying property outgoings continued at a relatively lower level as a result of the strategy of improving the property portfolio. However, we are required to account for property repairs as they happen, rather than from a provision for repairs, and in 2000 we had a high level of repairs, relative to previous years. It is expected that these will lead to increased rental income in the future. As a result, net property income showed an increase of 7%. Summary Results - Capital Activities Net assets show a good advance during the year of £2.0 million to £32.6 million and stood at 631p per share at 31 December 2000, a rise of 39p (7%) on the year. During the course of the year, the Group spent £1,688,000 on property assets (1999 £5,550,000) and invested £1,626,000 (1999 £1,058,000) on stock markets. The net proceeds from property disposals during the year amounted to £ 1,667,000 (1999 £3,341,000) while investment disposals raised £1,261,000 (1999 £1,271,000). Profits from the gains on these disposals amounted to £295,000 (1999 £ 868,000). Unusually, gains before taxation became losses after taxation. This circumstance is made possible because the calculation of gains for accounts purposes is not the basis for calculating capital gains for tax purposes. The disposal of some long held investments and properties meant that there was a relatively high tax charge. A transfer from realised capital reserve was required to cover a net loss after taxation of £57,000 (1999 £335,000 gain). Property The Company has continued to implement its strategy to improve the quality of the property portfolio by replacing those investments perceived as being of poorer quality with generally larger properties providing reliable covenants and appropriate yields. The ten largest property holdings in the portfolio represent 69% of the value of the property investment portfolio of the Group at 31 December 2000. Included among these ten is an office property the purchase of which was completed during the year at a purchase price of £ 1,600,000. It comprises two inter-linked, modern office units in Solihull, West Midlands. The property is let to Siemens Properties Limited, with a guarantee from Siemens Holdings Plc, on a lease that runs to 2015. Net rental income is expected to be £122,000 p.a. The property valuation showed a rise from £19.6 million to £21.4 million. Those properties that remained in the portfolio throughout the period show a rise in value equivalent to 8.9% (1999 10.6%). There are 23 (1999 26) principal properties in the portfolio with an average value of £847,000 (1999 £698,000) along with 26 lesser properties (1999 28) such as single residential properties and ground rent investments. The average value of these secondary investments is £71,800 (1999 £53,000). Listed Investments After a buoyant start, stock markets deteriorated over the period as early enthusiasms for the telephone, media and technology companies waned with the collapse of the dot.com boom. During 2000 the Market, as measured by the FTSE100 Index, fell from 6930 to 6222 a fall of 10.2%. Aided by the net addition of £486,000 to our investments, we achieved a rise in value of £522,000 to £11,855 million, substantially out performing the main index. Our main thrust to stay underweight in technology stocks whilst increasing overseas exposure aided this strong relative performance. Our gross income from investments shows a fall on the year of £33,000, which was entirely due to exceptional receipts during 1999. Current trading and prospects Operating activities so far this year have started steadily. On the investment side, 2001 has commenced with investment markets continuing to decline. Much will depend on whether American markets manage to achieve a soft landing and can resume growth. Declining interest rates will assist market levels in the UK but company profits will come under increasing pressure. For the moment caution prevails. On the property side, we have sold one residential property with vacant possession and we continue to actively seek good property investments. Highcroft Investment Trust P.L.C. and its subsidiary undertakings Group Profit and Loss Account (audited) for the year ended 31 December 2000 Note 2000 1999 Restated £'000 £'000 Income from fixed asset investments and other interest receivable 1,568 1,545 Administrative expenses Purchase of own shares 34 Other 195 182 ______ ______ Operating profit 1,373 1,329 Gains on disposals of assets 1 295 868 ______ ______ Profit on ordinary activities before taxation 1,668 2,197 Taxation 2 674 838 ______ ______ Profit for the financial year 994 1,359 Gains on disposals of assets after taxation taken from/(to) realised capital reserve 57 (335) ______ ______ Profit available for distribution 1,051 1,024 Dividends 3 439 391 ______ ______ Profit retained 612 633 ====== ====== Earnings per share 4 Including gains on disposals of assets 19.2p 26.1p Excluding gains on disposals of assets 20.3p 19.6p Highcroft Investment Trust P.L.C. and its subsidiary undertakings Balance Sheets (audited) at 31 December 2000 The Group The Company Note 2000 1999 2000 1999 £'000 £'000 £'000 £'000 Fixed assets Tangible assets 5 21,352 19,637 - - Investments 6 11,855 11,333 33,574 31,096 _______ _______ _______ ______ 33,207 30,970 33,574 31,096 _______ _______ _______ ______ Current assets Debtors 401 386 322 177 Cash at bank 380 415 13 8 ______ ______ ______ ______ 781 801 335 185 Creditors Amounts falling due within one year 1,276 1,170 1,291 680 _______ _______ _______ ______ Net current liabilities (495) (369) (956) (495) _______ _______ ________ ______ Total assets less current 32,712 30,601 32,618 30,601 liabilities Provision for liabilities and 100 - - - charges _______ _______ ________ ______ Net assets 32,612 30,601 32,612 30,601 ======= ======= ======= ====== Capital and reserves Called up share capital 1,292 1,292 1,292 1,292 Revaluation reserve - property 5,647 5,219 - - - other 6,470 6,959 27,865 26,394 Capital redemption reserve 95 95 95 95 Realised capital reserve 12,734 11,274 2,600 2,104 Profit and loss account 6,374 5,762 760 716 _______ _______ _______ ______ Shareholders' funds - equity 32,612 30,601 32,612 30,601 ======= ======= ======= ====== Highcroft Investment Trust P.L.C. and its subsidiary undertakings Group Cash Flow Statement (audited) for the year ended 31 December 2000 2000 1999 Restated £'000 £'000 £'000 £'000 Net cash inflow from operating activities 1,387 2,009 Taxation Taxation paid (620) (991) Capital expenditure and financial investment Purchase of fixed assets - properties (1,688) (5,550) - listed investments (1,626) (1,058) Sale of fixed assets - properties 1,667 3,341 - listed investments 1,261 1,271 Net cash outflow from capital expenditure and (386) (1,996) financial investment Financing Purchase of own shares - (871) Dividends Equity dividends paid (416) (380) _____ _____ Decrease in cash (35) (2,229) ===== ===== Highcroft Investment Trust P.L.C. and its subsidiary undertakings Total Recognised Gains and Losses and Historical Cost Profits and Losses for the year ended 31 December 2000 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 2000 1999 £'000 £'000 Profit for the financial year 994 1,359 Unrealised surplus on revaluation of investment properties 1,520 1,488 Unrealised surplus on revaluation of listed and unlisted 36 1,505 investments Deferred taxation (100) - ______ ______ Total recognised gains and losses for the year 2,450 4,352 ====== ====== NOTE OF HISTORICAL COST PROFITS AND LOSSES 2000 1999 Restated £'000 £'000 Profit on ordinary activities before taxation 1,668 2,197 Realisation of revaluation gains of previous years -attributable to investment properties 992 1,690 -attributable to listed and unlisted investments 525 404 ______ ______ Historical cost profit on ordinary activities before taxation 3,185 4,291 ====== ====== Historical cost profits retained 612 633 ====== ====== Highcroft Investment Trust P.L.C. and its subsidiary undertakings Notes for the year ended 31 December 2000 1 Gains on disposals of assets 2000 1999 Gains on disposals of assets arising on sales of: £'000 £'000 Properties 174 648 Investments 121 220 _____ _____ 295 868 ===== ===== 2 Taxation The taxation charge at 30% (1999 30.3%) is based on the profit for the year and is made up as follows: 2000 1999 £'000 £'000 Restated Corporation tax 322 305 Corporation tax on disposals of assets 352 533 _____ _____ 674 838 ===== ===== 3 Dividends 2000 1999 Ordinary shares £'000 £'000 Interim dividend of 3.0p per share paid (1999 2.75p) 155 142 Proposed final dividend of 5.5p per share (1999 5.05p) 284 261 _____ _____ 439 403 1998 final dividend not paid on 260,000 own shares - (12) purchased _____ _____ 439 391 ===== ===== 4 Earnings per share The calculation of earnings per ordinary share is based on the profit for the financial year of £994,000 (1999 £1,359,000) and on 5,167,240 (1999 5,216,391) ordinary shares of 25p each which is the weighted average number of shares in issue during the year ended 31 December 2000. In view of the uneven nature of capital disposals, an adjusted earnings per share has also been presented, based on the profit available for distribution of £1,051,000 (1999 £1,024,000). The effect of the adjustment is as follows: 2000 1999 Earnings per share 19.2p 26.1p Adjustment for gains on disposals of assets 1.1p (6.5p) _____ _____ 20.3p 19.6p ===== ===== 5 Tangible assets The Group Land and buildings (Investment properties) Long Total Freeholds Leaseholds £'000 £'000 £'000 Valuation at 1 January 2000 19,637 18,947 690 Additions 1,688 - 1,688 Disposals (1,493) (1,493) - Surplus on revaluation 1,520 1,608 (88) ______ _________ _________ Valuation at 31 December 2000 21,352 19,062 2,290 ______ _________ _________ 6 Investments Total Listed Unlisted The Group £'000 £'000 £'000 Valuation at 1 January 11,333 11,303 30 2000 Additions at cost 1,626 1,626 - Transfer - 30 (30) Disposals (1,140) (1,140) - Surplus on revaluation 36 36 - ______ _______ _______ Valuation at 31 December 11,855 11,855 - 2000 ====== ======= ======= 7 Accounting convention: The financial statements have been prepared under the historical cost convention except that freehold and leasehold properties and listed and unlisted investments are revalued annually. 8 Annual General Meeting: The 2001 Annual General Meeting will be held on 7 June 2001. 9 Final ordinary dividend: A final ordinary dividend of 5.5p per share will be paid on 11 June 2001 to shareholders registered at the close of business on 11 May 2001. 10 Limitation The above does not constitute full accounts within the meaning of section 240 of the Companies Act 1985. It is an extract from the full accounts for the year ended 31 December 2000 on which the auditors have confirmed that they expect to express an unqualified opinion. They will be posted to shareholders on or before 30 April 2001 and filed at Companies House in due course.

Companies

Highcroft Investment (HCFT)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today