Interim Results
Quintain Estates & Development PLC
30 November 2006
30 November 2006
Quintain Estates and Development PLC
('Quintain'/'Company'/'Group')
Interim Results for the six months ended 30 September 2006
Quintain reports good progress with 18% rise in pre-tax profits
Highlights
• Profit before tax excluding discontinued items up 18.3% to £5.6m
(£4.7m)
• Earnings per share before discontinued activities up 22.6% to 3.8p
(3.1p)
• Earnings per share after discontinued activities up 171.4% to 3.8p
(1.4p)
• Interim dividend up 7.7% to 3.5p (3.25p)
• Good progress in the year to date across the Group's three business
areas:
o Special Projects
• Construction commenced on first residential
building at Wembley
• First land sale at Greenwich
• BioRegional Quintain: Agreement signed for first
phase development at Middlehaven
o Quintain Fund Management
• Healthcare funds under management increased to
£530.0m
• Strong interest in proposed new student
accommodation fund
o Investment Portfolio
• £24.1m of investment properties acquired
• £15.3m proceeds from property disposals
• John Plender to become Chairman from 1 April 2007
• Tonianne Dwyer, Head of Quintain Fund Management, appointed to the
Board with immediate effect.
Nigel Ellis, Chairman of Quintain, commented:
'This is the last statement I shall be making to shareholders and I am delighted
to report that we have continued to make good progress in the six months under
review. Our activity at Wembley continues to accelerate and we have made
encouraging progress in our Fund Management division. We are confident that
Quintain is strongly positioned to deliver significant growth in the future.'
For further information, please contact:
Quintain Estates and Development PLC
Rebecca Worthington/Hilary Reid Evans 020 7495 8968
Financial Dynamics
Stephanie Highett/Dido Laurimore 020 7831 3113
Financial highlights for the six months to 30 September 2006
Profit and Loss Account
30 Sept 30 Sept Annual Year to
2006 2006 change 31 March
% 2006
Group turnover (£000) 20,253 20,509 (1.2) 42,051
Profit before tax and 5,583 4,721 18.3 64,953
discontinued operations
(£000)
Profit before tax and after 5,531 1,580 250.0 60,911
discontinued operations
(£000)
Basic earnings per share
(pence)
Before discontinued operations 3.8 3.1 22.6 46.1
After discontinued operations 3.8 1.4 171.4 43.9
Dividends per share (pence) 3.5 3.25 7.7 10.5
Balance Sheet
30 Sept 30 Sept Annual As at
2006 2006 change 31 March
% 2006
Basic net asset value per share 525 431 21.8 526
(pence)
Diluted net asset value per 516 424 21.7 516
share (pence)
Gearing (%) 39 39 36
CHAIRMAN'S STATEMENT
Our results for the six months to 30 September 2006 demonstrate that good
progress continued to be made across the Group's divisions during the period
under review. Our confidence in the Group's ongoing ability to deliver increased
value is demonstrated by the fact that the Board is once again increasing the
interim dividend, by 7.7% to 3.5p.
Business overview
We are, for the first time, including an Operating and Financial Review at the
half-year stage. Although the detailed report on the progress of our activities
is contained in this section, a commentary on the highlights of the period is
included below.
In our Special Projects division, we have moved from the planning to the
implementation stage of our major regeneration projects. At Wembley, for
example, we have started work on construction of our first building, which is
primarily residential. Sales of the private residential units it contains have
been highly successful with contracts having been exchanged for 116 of the 145
private apartments and a further 15 units reserved.
Despite the challenge of finding deals offering good value in the current market
conditions, we have invested £75.4m in the period on new property, including
buildings for the planned new student accommodation fund, 'iQ'. The search for
further opportunities is ongoing.
Quintain Fund Management continues to expand its activities, not only growing
its funds under management in the first half but also making good progress in
the extension of its business into the specialist areas of student accommodation
and science parks.
Performance
Although, as previously, we have not formally valued the property portfolio at
the half year, the directors have, in conjunction with our valuers, undertaken
an informal review of the portfolio, focusing on the most significant assets.
This review resulted in the value of Wembley rising by £31.2m to £435m, an
increase of 7.7%, after taking account of expenses in the period. Over the same
period, the value of our investment at Greenwich increased by 19% or £27.7m,
after allowing for additional expenditure, to £175m. From next year we will be
carrying out a formal revaluation of the portfolio at the half year which will
be included in the interim results.
Overall, our approach to property valuation remains conservative, although
market dynamics are taken into consideration when valuing our property
portfolio.
Share capital
Our share buyback programme remains in place. During the period, we purchased a
total of 1 million shares in the market, at an average price of 604p inclusive
of costs, which are being treated as treasury shares. These purchases were
effected in order to hedge a proportion of our liabilities in relation to
various share incentive schemes.
Share price
During the six month period, our share price rose by 2.9% and closed at 700p on
30 September 2006. Since then, we have seen continued rises with the shares
closing at 839p on 29 November 2006. Over the six months to 30 September 2006,
our share price underperformed the FTSE Real Estate Index by 2.1% but
outperformed the FTSE 350 Index by 2.78%. From 1 April 2006 to 28 November 2006,
however, the Group's share price outperformed the FTSE Real Estate Index and the
FTSE 350 Index by 7.0% and 18.9% respectively.
The Board
I have been Chairman of Quintain for over 11 years now. During this time, I
believe that the Company has achieved excellent returns for its shareholders and
positioned itself as one of the UK's leading development and regeneration
companies. However, given the length of time I have been in office and the fact
that I am 67 years old, I feel it is now time to stand down as Chairman and
therefore will be doing so on 31 March 2007. Thereafter, I shall remain on the
board as a non-executive director until the Annual General Meeting in 2007, at
which time it is not my intention to seek re-election.
I am delighted to report that John Plender, who has been a non-executive
director of the Company since July 2002, will take over from me as Chairman from
1 April 2007. John, a Chartered Accountant by training, is a highly respected
financial commentator and will bring to the role his wide experience of
investment and corporate governance matters.
I am immensely proud of all that the Group has achieved since listing in 1996
and will continue to watch its progress with enormous interest.
As a reflection of Quintain Fund Management's success and its increasing
significance to the Group, the Directors have asked Tonianne Dwyer to join the
Board with immediate effect. Tonianne, who has headed Quintain's fund
management business since she joined Quintain in June 2003, qualified as a
solicitor and barrister in Western Australia. Prior to joining the Company, she
was employed from 1987 to 2003 by SG Hambros Bank in their corporate finance
division, latterly as a director.
As ever, we are highly dependent on our people to deliver our success and are
fortunate in having an outstanding team of executive directors and staff whom I
would like to thank for their hard work.
Outlook
The Company has made good progress across the business in the first half. Our
activity at Wembley continues to accelerate, our Investment Portfolio has made a
number of acquisitions, where we perceive potential to enhance value, and we
have made ongoing encouraging progress in our Fund Management division.
We are confident that Quintain is strongly positioned to continue to deliver
significant growth in the future.
Nigel Ellis
Chairman
30 November 2006
OPERATING AND FINANCIAL REVIEW
Significant progress has been made on our major projects, yet Quintain remains
ambitious. This is part of our culture. We continuously seek out sectors and
situations where our particular skills can add value and where we can continue
to be highly entrepreneurial. This is central to our strategy.
During the period under review, the Group has made good progress across each of
the three business areas in which we operate.
Special Projects
This business encompasses our major regeneration projects at Wembley and at
Greenwich, as well as other significant development schemes including City Park
Gate Birmingham, Emerson's Green Bristol and Silvertown London. We also have a
joint venture, Bioregional Quintain, which seeks to lead the market in the
creation of sustainable zero carbon communities. Quintain benefits from this
association when presenting the increasingly important environmental impact
aspects of our proposals for future regeneration projects.
Investment Portfolio
This business comprises an income producing secondary investment property
portfolio with the potential to create capital value through active management
including lease renewals, restructuring, marriage value and refurbishment. The
portfolio is spread throughout the UK and is currently composed primarily of
office and industrial properties.
Quintain Fund Management
Also known as QFM, Quintain Fund Management co-invests in specialist sectors
such as healthcare, student accommodation and science parks. Quintain benefits
through these funds from asset management, transaction and performance-related
fees.
Our objectives and our strategy
Our objectives are straightforward - they are to outperform the Investment
Property Databank ('IPD') benchmark and to make a real total shareholder return
of at least 10%, measured by the increase in net asset value per share adding
back the dividend. Over the ten years to 31 March 2006, Quintain's performance
was in the top percentile of IPD.
Our strategy is to continue to apply our rigorous stock-picking approach,
focusing on the financial characteristics of properties to identify assets and
special situations where we can use our skills to add value. With regard to our
urban regeneration portfolio, we are pioneering the concept that ownership of
freeholds or long leaseholds affords the opportunity to run towns as businesses,
creating diverse income streams including the exploitation of non-rental
commercial opportunities such as advertising, naming rights, telecommunications
and power.
While property market conditions remain ambiguous, we continue to exercise
caution. Our strategy remains to sell when we judge we can no longer add value
and to reinvest the proceeds into areas that offer the potential for greater
returns.
Performance
As in previous years, we have not undertaken a formal valuation of the property
portfolio at the half year. However, the directors have carried out, in
conjunction with our valuers, an informal review of the portfolio, with
particular focus on the major special projects. We are pleased to report that,
on this basis, the total value of Wembley rose by £31.2m or 7.7% over the first
half year to £435m. During the same period, the value of our landholding and
participation in Meridian Delta Limited increased by £27.7m (19%) to £175m. As
from next year we intend to carry out a formal revaluation of the portfolio at
the interim stage which will be reflected in the accounts.
Special Projects
Wembley - We have continued to make good progress at Wembley. Construction began
during the half year on the first residential development, currently known as
W01. This mixed-use development will house a total of 286 apartments on the
first floor and above, of which 86 will be shared ownership and 55 will be
socially rented. A joint venture was signed with the Genesis and Family Housing
Associations during August in relation to this block. Contracts for 116 of the
145 private apartments have been exchanged to date and a further 15 reserved.
Discussions are ongoing with a number of prospective partners regarding the
formation of joint ventures for a further four residential blocks.
Following the success of W01, we have now made a reserved matters application to
Brent Council for a further 636 apartments for those blocks known as W03 and
W04. It is intended that W03 will be a 100% private residential development.
Subject to the success of this application, we hope to begin construction of
these buildings during the next calendar year. It is also anticipated that
during the course of 2007 reserved matters applications will be made for a
4-star 400 room Hilton Hotel. This application is linked to the signing of a
development agreement for approximately 660 student units. Both developments
form part of the same structure and are at the design and costing stage.
The acquisition of the 3-star Hilton Plaza Hotel, which is adjacent to
Quintain's existing Wembley landholdings, took place during the six months to 30
September 2006.
We are also in discussions with a number of parties regarding the formation of a
retail joint venture. The Wembley development includes planning consent for
560,000 sq ft of retail, 350,000 sq ft of leisure facilities and 167,000 sq ft
of bars and restaurants, with the first phase of the retail offer currently
scheduled for opening by September 2010.
We are exploring a number of innovative opportunities to exploit the commercial
rights presented by our ownership at Wembley. For example, a 'request for
proposal' was issued in September to a number of interested parties and partners
are currently being sought for the various utilities required for the Wembley
scheme. This will enable us to minimise the risks involved whilst gaining
funding from the successful partners.
Demolition of the Wembley Conference Centre, Elvin House and Exhibition Halls 1
and 2 began in late summer, with work scheduled for completion in mid-2007.
Tenants from Elvin House have been relocated to the York House office building.
Following the August 2006 decision by Brent Council to withdraw its application
for consideration of the borough as a location for the one 'Super' casino, we
have made good progress with our alternative plans and it is expected that a
planning application for a further 1.6m to 2.2m sq ft of mixed use development
will be submitted in relation to this site in autumn 2007.
The refurbished Wembley Arena has successfully attracted a large number of
artists since its reopening in April 2006. Managers Live Nation are reporting a
running rate of 170 shows per annum, making this the busiest year for the Arena
in over a decade.
The completed Arena Square is also becoming a performance destination in its own
right, with the Square of Fame concept proving popular with both artists and the
public since its introduction in September 2006. Popular music icons Madonna and
Cliff Richard have had their handprints immortalised in the Square and a number
of other artists are expected to participate during the coming months. Since its
opening Arena Square has hosted a number of other events including a Bollywood
dance celebration.
The valuation of the Group's holdings at Wembley remains largely land
sales-based, with adjustments made to that valuation as and when joint ventures
or developments crystallise. In the current market conditions, we believe that
these valuations are both prudent and conservative.
Greenwich - We believe that the rate of progress is now set to accelerate at
Greenwich, where, in conjunction with our 51 per cent joint venture partner Lend
Lease we are regenerating the 190 acre Peninsula. This scheme has an estimated
gross development value of £5bn. We have secured the first land sale to Bellway
Homes, which will deliver a high-quality block of 229 riverside apartments on
the southern part of the site. Overlooking the Thames, the apartments will be
adjacent to Greenwich Millennium Village and in close proximity to the retail
and community facilities already on the Peninsula. Subject to reserved matters
consent, Bellway anticipates starting on site in 2007 with the apartments ready
for occupation in 2009. Meridian Delta Limited is currently in negotiations
regarding two further plots, which lie to the south and to the north east of the
Peninsula.
In the north west of the area, Quintain and Lend Lease are progressing their
intended joint venture to develop Peninsula Quays, as principals. We are in the
process of selecting a Chief Executive for the joint venture to deliver this
scheme. The land has consent for 3.2m sq ft of mainly residential space and
represents the opportunity for the development of prime residential properties,
with substantial river frontage, views across to Canary Wharf and the City, and
within a short walk of the Underground and other transport links.
The new Peninsula Square (previously known as Millennium Square) is expected to
open in early 2007. A giant sculpture, the Peninsula Spire, which will form a
focal point for the redevelopment of the area, was erected in the square in late
October.
Silvertown - The Carlsberg Tetley lease on this 330,000 sq ft mixed-use
industrial estate expired in October, giving Quintain vacant possession. The 12
acre site is strategically located at the gateway to the Olympic lands and
discussions are taking place with our partners, the London Development Agency,
to combine this in a larger scheme, part of which is expected to provide space
for occupiers relocated from the Olympics lands. The site, which has both
wharfage and easy waterfront access to the Olympics construction areas, provides
substantial potential for related development. We are also continuing our
masterplanning initiatives for the delivery of a major mixed-use community, post
2012.
City Park Gate, Birmingham - During 2005, Quintain signed a Development
Agreement with Birmingham City Council, in joint venture with Countryside
Properties plc , to develop out this four acre site, which is immediately to the
east of the Bull Ring and Moor Street Station. Although the site has an existing
outline consent, for 630,000 sq ft, we have filed a further outline application
for a total of 1m sq ft, including up to 844 apartments. Enabling work has begun
on site for this scheme.
Emerson's Green, Bristol - Quintain owns 26 hectares (65 acres) of a 106 hectare
site at Emerson's Green, which has been designated as mixed-use by the Local
Authority. The current proposal includes the creation of 2,650 dwellings,
employment, retail and supporting facilities. Quintain has delayed agreeing a
revised planning application pending an equalisation agreement with adjoining
landowners and clarity on S106 and affordable housing requirements. We are
excited by the potential to exploit synergies with this development as Quantum,
Quintain's specialist science park partnership with Morley Fund Management, is
now close to signing an 800,000 sq ft development agreement, having been
selected in April 2006 as the preferred developer for adjacent land at Emerson's
Green by the South West of England Regional Development Agency.
Gracechurch Street, London and Arundel Gate, Sheffield - After 31 March 2006,
contracts were completed for the sale of 36-41 Gracechurch Street, EC3 for
£24.75m, giving rise to a profit on valuation of £3.5m and on book cost of
£5.4m. Contracts were also completed for the sale of Arundel Gate, Sheffield, a
multi-let retail and leisure property, for £9.0m, giving rise to a profit on
valuation of £0.4m and £2.1m on book cost.
BioRegional Quintain - BioRegional Quintain continues to make good progress.
BioRegional Quintain is a joint venture with BioRegional Properties Limited,
whose objective is to build sustainable communities. Quintain has the right to
fund all developments by way of loan stock.
• Brighton - In joint venture with Crest Nicholson plc, BioRegional Quintain
is expected to deliver 172 residential units, including affordable housing,
24,000 sq ft of commercial space and 10,000 sq ft of pre-let community
space. The grant of planning consent is expected in early 2007.
• Middlehaven, Middlesbrough - In November 2006 BioRegional Quintain signed
a development agreement with English Partnerships and Tees Valley
Regeneration for a first-phase mixed use development of 765 residential
units, 200,000 sq ft of offices and 70,000 sq ft of leisure and retail space
on a 40-acre site. We believe this will be the largest zero carbon
development in the UK. Grant funding for the development has been approved
by The Treasury.
• West Molesley, Surrey - In joint venture with Crest Nicholson, BioRegional
Quintain is the preferred developer for the delivery of 100 residential
homes.
Investment portfolio
Of the £75.4m of acquisitions undertaken by the Group during the first half of
the year, £24.1m were investment properties, purchased at an average net initial
yield of 8.34%. Acquisitions on behalf of both Special Projects and Quintain
Fund Management amounted to £51.3m.
Investment portfolio property disposals in the period generated proceeds of
£15.3m at an average yield of 4.1%, which generated profits of £0.9m over book
value. We expect the sales rate to increase in the second half of the year.
The letting market remains challenging except for good quality space in prime
locations. Successes include Leamington Spa, Maldon, Birmingham, Colchester and
Leeds.
At the Royal Exchange, Manchester, practical completion has been received and we
continue to target high quality retail operators on a flexible leasing basis.
Quintain Fund Management
Quintain Fund Management ('QFM') has continued to make good progress in the
first half of the year.
Quercus, our healthcare fund, continues to perform well, with results
underpinned by the continuing strength of the healthcare market. Funds under
management grew to £530.0m. Total properties purchased in the period were
£25.7m. Since the period end we have acquired properties valued at a further
£50.2m. The fund currently comprises 206 properties, which are leased to 33
tenants, who operate nursing homes, learning disability and specialist care
facilities and private hospitals. Net asset management fees received during the
half amounted to £0.7m, with performance fees to be determined during the second
half year. During the the current financial year, Quintain has to date
committed a further £7.3m of equity to Quercus. We anticipate investing
additional equity during the first quarter of the next calendar year.
Quantum Property Partnership, a science park fund which is operated as a joint
venture with Morley Fund Management, is expected to sign a development agreement
shortly with South West Regional Development Agency in relation to the Bristol
and Bath Science Park. The science park will be located on 54 acres of land
adjacent to Quintain's own landholding at Emerson's Green, Bristol. Quantum
will fund and procure primary infrastructure and associated servicing for the
first phase of the park, including a 35,000 sq ft innovation centre and 20,000
sq ft of 'grow on' space for companies as they expand. Later phases of the
development will be market led. Several other interesting opportunities are also
being pursued.
Preparation for iQ, our proposed student accommodation fund, is progressing
well. Development of the first schemes, in Sheffield and Nottingham, has been
completed, with both properties opening on time and very well received by
students and the Universities. Both properties are performing above
expectations, with the Sheffield scheme running at full occupancy and the
Nottingham scheme at 97.5%. Nottingham has a rent guarantee in place for the
first year of operation. We have also exchanged on schemes in Birmingham,
Salford and Kingston, which will have a combined value on completion of £73m.
Construction is well underway on all sites with Birmingham and Salford due for
completion in late summer 2007, and Kingston in late summer 2008. We have
agreed terms on a further £195m of schemes for delivery over the next three
years and have a strong pipeline of further opportunities. Our strategy, which
is to build a pipeline of investments on our own balance sheet before seeking to
launch a fund, has been rewarded by the strong interest shown in partnering with
us. We have narrowed the field to three potential partners and expect to move
into final negotiations in the short term.
Longer term, consideration is being given to further fund opportunities,
including in relation to residential property.
People
Nigel Ellis will stand down as Chairman at the end of this financial year. He
has provided wise counsel and invaluable support to the Company over the last 11
years, a time which has seen significant change across the business. We owe him
an immense debt of gratitude both corporately and personally for which I wish to
convey my huge thanks.
John Plender will step up from his non-executive position to take on this role
from 1 April 2007. Since joining the Board in July 2002, John has gained the
respect of all and I look forward to working with him in his new role as our
Chairman.
Outlook
The Group has continued to make good progress during the first half. Activities
at Wembley are progressing rapidly and developments are in line with our
expectations. Both the investment portfolio and QFM are performing well and
BioRegional Quintain is proving its potential with projects such as Brighton and
Middlehaven. This performance underpins our belief we can continue to deliver
shareholder value in the future.
We consider that few companies have the opportunity to significantly enhance
their net asset value against a background of stabilising total returns in the
property market. We believe that Quintain is a notable exception and look
forward to a continuing track-record of market out-performance.
FINANCIAL REVIEW
Headline results
Earnings per share rose by 171% to 3.8p per share (30/9/05: 1.4p). Excluding
discontinued items earnings per share of 3.8p were 23% ahead of last year's 3.1p
per share. Profits before tax excluding discontinued items rose by 18% to £5.6m
from £4.7m in the comparable period.
Reported net assets per share were 525p per share (year to 31 March 2006: 526p).
This reflects the dividend accounted for in the period in which it was paid. No
revaluations are incorporated for the interim. From next year we intend to carry
out a formal revaluation at the interim stage and reflect these in the accounts.
Adjusted diluted net asset per share, the measure recommended by EPRA was 609p
(year to 31 March 2006: 612p).
Income Statement
Gross rental income for the half year fell by 11.6% to £13.1m (30/9/05: £14.8m).
This reflects the continued investment property sales programme. Income lost
from sales was £3.9m against which purchases contributed £1.1m and the
guaranteed payment from Wembley Arena added £1.8m. Rents passing at 30 September
2006 for the directly owned portfolio totalled £25.6m, with an estimated rental
value (ERV) of £35.1m.
Voids overall are marginally down, however the unintentional element has
increased to 14.9% of ERV (31 March 2006: 8.0%). This includes properties that
were previously being refurbished but are now available to be let such as the
Royal Exchange at Manchester (£0.8m) and The Synergy Building in Sheffield
(£0.9m). Planned voids in relation to development opportunities make up 6.7% of
ERV (31 March 2006: 15.4%).
Income from leisure operations related to the ongoing Wembley businesses, which
delivered a profit of £0.7m (30/9/05: £0.5m), mainly from the Sunday market. The
first-time income from hotel operations of £0.4m is for one month's contribution
from the Plaza Hotel at Wembley. This is a Hilton operated hotel that was
acquired as part of a strategic deal with Hilton to build a 4-star 400 bed
hotel.
Profit from other revenue rose to £3.5m from £1.5m. Of this fees after costs
from Quercus generated £0.7m. A surrender premium of £1.7m was received in the
period in relation to Smallbrook Queensway of which £0.5m is being invested in
refurbishment. The property derivative contributed a profit of £0.9m. This £15m
contract for difference runs to February 2007 with LIBOR swapped against the All
Property IPD Index to 31 December 2006.
Continuing administration expenses increased by 16% to £14.5m (30/9/05: £12.5m).
Discontinued administration expenses were £0.6m (30/9/05: £1.4m). The major
increases were professional fees (£0.4m), office costs (£0.4m) and bonuses
(£0.3m) and related to the increased overall level of operational activity
within the Group. Further information is given in note three to the accounts.
Profit over valuation on the disposal of non-current assets was £7.8m (30/9/05:
£6.9m). The largest contributors being £3.5m on the sale of 36-41 Gracechurch
Street, London, EC3 and £3.0m on the disposal into a joint venture of the land
for the first residential plot at Wembley. Proceeds on sales were £56.7m with a
profit on historic cost of £16.6m.
Net finance expenses were £3.6m (30/9/05: £6.1m). Of this, the change in fair
value of our forward start swaps gave rise to a profit of £0.2m compared with a
loss of £1.6m in the same period last year. Further details are given in the
table below. Of the interest capitalised, £2.6m related to Wembley and £0.9m to
Greenwich.
30 September 30 September
2006 2005
£m £m
Interest payable 9.1 8.8
Interest capitalised (4.3) (3.6)
Interest receivable (1.0) (0.7)
Change in fair value of
ineffective interest rate
swaps (0.2) 1.6
Net finance expenses 3.6 6.1
The profit from joint ventures in the six months was £2.0m (30/9/05: £2.3m). Of
this £2.1m came from our 28.3% ownership in Quercus (30/9/05: £1.8m). The scheme
at Merton Abbey Mills, which is now materially sold, contributed £0.5m in the
prior period.
Our effective tax charge has been included in the interim accounts at 20% based
on our best estimate of the charge for the full year. This remains below the
standard rate of 30% due to the availability of balancing allowances on
properties sold, indexation and capitalised interest.
Balance Sheet
At 30 September, excluding directors' valuations, the book value of investment
properties was £327.5m (30/9/05: £296.6m) and the book value of development
properties was £612.5m (30/9/05: £489.4m). During the six months £18.0m of
capital was invested and acquisitions of £75.4m made. Against this disposals
with a book value of £46.6m gave sale proceeds of £56.7m.
Capital commitments of £116m include £60m for student accommodation, where we
have committed to buy properties currently under construction subject to their
delivery on time and to an agreed quality. We anticipate these commitments will
be passed on to the iQ fund before the end of the financial year.
During the six months, the Employee Benefit Trust purchased 500,000 shares at an
average price of 607p to cover allocations under the Executive Directors'
Performance Share Plan. Quintain also purchased 500,000 treasury shares at an
average price of 590p to cover obligations under various share incentive
schemes.
Of the £127.7m net investment in joint ventures, £90.3m relates to our 28.3%
share in Quercus, the healthcare fund. Whilst our holding on the Greenwich
Peninsula is included within development properties, Meridian Delta Limited, the
company charged with overseeing the redevelopment of the Peninsula, which is
owned 49% by Quintain and 51% by Lend Lease, is treated as a joint venture. Our
current investment in this is £26.3m. Other joint ventures include
Quintessential Homes (WO1), City Park Gate, BioRegional Quintain and South East
Properties (Redhill) Limited.
Our gearing level was 39% at 30 September 2006, compared with 36% at the
previous year end. Of the £261.0m of net debt, 63% is hedged with swaps.
During the period we amended some of the covenants on our £475m corporate loan.
The banks removed the requirement for the loan to be matched 1:1 with investment
properties and in return we reduced the maximum gearing limit from 130% to 110%.
These changes give us the flexibility to use the funds for our regeneration
projects.
Cashflow Statement
The increase in cash and cash equivalents of £13.9m mainly came from financing
activities, with net investment offsetting the cash outflow from operating
activities. Expenditure on property assets of £75.9m was less than the proceeds
of £89.7m, partly reflecting the timing of sales, with £54.6m of cash received
in relation to contracts for sale in place at the year end.
Internal audit
During the period we appointed Grant Thornton to act as independent internal
auditors. A risk register has been agreed and a rolling schedule of audit work
identified.
Independent Review Report to Quintain Estates and Development Plc
Introduction Review work performed
We have been instructed by the Company to review the We conducted our review in accordance with guidance
financial information for the six months ended 30 contained in Bulletin 1999/4: Review of interim
September 2006 which comprises the Consolidated financial information issued by the Auditing
Income Statement, the Consolidated Balance Sheet, Practices Board for use in the UK. A review
the Consolidated Cash Flow Statement, the consists principally of making enquiries of
Consolidated Statement of Recognised Income and management and applying analytical procedures to the
Expense, the Consolidated Statement of Changes in financial information and underlying financial data
Equity and the related notes. We have read the and, based thereon, assessing whether the accounting
other information contained in the interim report policies and presentation have been consistently
and considered whether it contains any apparent applied unless otherwise disclosed. A review
misstatements or material inconsistencies with the excludes audit procedures such as tests of controls
financial information. and verification of assets, liabilities and
transactions. It is substantially less in scope
that an audit performed in accordance with
International Standards on Auditing (UK and Ireland)
This report is made solely to the Company in and therefore provides a lower level of assurance
accordance with the terms of our engagement to than an audit. Accordingly, we do not express an
assist the company in meeting the requirements of audit opinion on the financial information.
the Listing Rules of the Financial Services
Authority. Our review has been undertaken so that
we might state to the Company those matters we are
required to state to it in this report and for no Review conclusion
other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to On the basis of our review we are not aware of any
anyone other than the Company for our review work, material modifications that should be made to the
for this report, or for the conclusions we have financial information as presented for the six
reached. months ended 30 September 2006.
Directors' responsibilities KPMG Audit Plc
Chartered Accountants
The interim report, including the financial 8 Salisbury Square
information contained therein, is the responsibility London
of, and has been approved by, the directors. The EC4Y 8BB 30 November 2006
Directors are responsible for preparing the interim
report in accordance with the Listing Rules of the
Financial Services Authority which require that the
accounting policies and presentation applied to the
interim figures should be consistent with those
applied in preparing the preceding annual accounts
except where any changes, and the reasons for them,
are disclosed.
Consolidated income statement
For the six months ended 30 September 2006
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Sept 2006 30 Sept 2005 31 March 2006
Notes £000 £000 £000
_______ _______ _______
Revenue from continuing operations 2 20,253 20,509 42,051
Cost of sales in respect of continuing
operations 2 (6,569) (6,322) (15,295)
_______ _______ _______
Gross profit from continuing operations 13,684 14,187 26,756
Administrative expenses 3 (14,474) (12,516) (22,660)
_______ _______ _______
Operating (loss) profit before recognition
of results from non-current asset sales
and revaluation (790) 1,671 4,096
Profit from sale of non-current assets 7,801 6,933 14,188
Gains on revaluation of investment properties 177 - 23,911
Deficits on revaluation of investment
properties - (58) (1,777)
Deficits on revaluation of development
properties - - (1,834)
Reversal of deficits on revaluation of
development properties - - 3,598
_______ _______ _______
Net operating profit before net finance 7,188 8,546 42,182
expenses
Interest payable (4,776) (5,200) (9,041)
Change in fair value of derivative financial
instruments 150 (1,590) (2,994)
Finance expenses (4,626) (6,790) (12,035)
Finance income 1,043 671 1,549
Net finance expenses 4 (3,583) (6,119) (10,486)
Share of profit from joint ventures 1,978 2,294 32,864
Share of profit from associates - - 393
_______ _______ _______
Profit before tax 5,583 4,721 64,953
Current tax (1,690) (591) (3,033)
Deferred tax 1,035 (154) (2,429)
Tax charge for the period 5 (655) (745) (5,462)
_______ _______ _______
Profit after tax but before results from
discontinued operations 4,928 3,976 59,491
Loss from discontinued operations, net of tax 6 (37) (2,199) (2,829)
_______ _______ _______
Profit for the financial period 4,891 1,777 56,662
====== ====== ======
Earnings per share before discontinued 7(a)
operations:
basic 3.8p 3.1p 46.1p
====== ====== ======
diluted 3.8p 3.1p 45.2p
====== ====== ======
Earnings per share after discontinued 7(b)
operations:
basic 3.8p 1.4p 43.9p
====== ====== ======
diluted 3.8p 1.4p 43.0p
====== ====== ======
The Board has proposed an interim dividend of 3.50p per share (interim dividend for the year ended 31
March 2006: 3.25p) which will be paid on 18 January 2007 to shareholders who are on the register on 15
December 2006.
Consolidated statement of recognised income and expense
For the six months ended 30 September 2006
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Sept 2006 30 Sept 2005 31 March 2006
£000 £000 £000
_______ _______ _______
Foreign currency translation differences (377) (6) 278
(Deficit) gain on revaluation of
development properties (65) (5) 100,798
Effective portion of changes in fair value
of cashflow hedges, net of recycling 2,477 (4,499) (1,676)
Share of recognised income and expense in
joint ventures, net of tax - - (102)
Tax on income and expense recognised
directly in equity (75) 1,350 (31,435)
_______ _______ _______
Net income and expense recognised directly
in equity 1,960 (3,160) 67,863
Profit for the financial period 4,891 1,777 56,662
_______ _______ _______
Total recognised income and expense for the
financial period 6,851 (1,383) 124,525
====== ====== ======
Consolidated statement of changes in equity
For the six months ended 30 September 2006
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Sept 2006 30 Sept 2005 31 March 2006
£000 £000 £000
_______ _______ _______
Opening shareholders' funds 676,675 565,653 565,653
Recognised income and expense for the period 6,851 (1,383) 124,525
Issue of shares less costs 951 178 247
Purchase of own shares for cancellation - (107) (108)
Purchase of own shares as treasury shares (6,034) (1,063) (1,955)
Cost relating to share-based payment schemes 711 629 1,180
Cost relating to share-based element of
bonus schemes 2,342 - -
Dividends paid in period (9,299) (8,683) (12,867)
_______ _______ _______
Closing shareholders' funds 672,197 555,224 676,675
====== ====== ======
Consolidated balance sheet
As at 30 September 2006
Unaudited Unaudited Audited
As at As at As at
30 Sept 2006 30 Sept 2005 31 March 2006
Notes £000 £000 £000
________ ________ ________
Non-current assets
Investment properties 9 327,480 296,604 290,088
Development properties 9 612,516 489,366 599,455
Owner-occupied properties, plant
and equipment 750 8,658 942
Investment in joint ventures 127,675 82,809 120,076
Investment in associates 1,677 1,800 1,677
Other non-current investments 2,402 188 2,716
________ ________ ________
Total non-current assets 1,072,500 879,425 1,014,954
________ ________ ________
Current assets
Trading properties 6,834 8,796 6,814
Trade and other receivables 32,284 36,309 72,312
Current investments 4 19 7
Cash and cash equivalents 21,778 17,494 7,954
________ ________ ________
Total current assets 60,900 62,618 87,087
________ ________ ________
Total assets 1,133,400 942,043 1,102,041
======= ======= =======
Current liabilities
Bank loans and other borrowings 10 (2,947) (48) (4,432)
Trade and other payables (55,182) (49,080) (49,104)
Current tax liability 5 (2,688) (804) (1,521)
________ ________ ________
Total current liabilities (60,817) (49,932) (55,057)
________ ________ ________
Non-current liabilities
Bank loans and other borrowings
(including convertible debt) 10 (277,701) (233,701) (246,626)
Deferred tax liability 5 (105,260) (77,789) (106,800)
Obligations under finance leases (12,381) (20,587) (12,213)
Other payables (5,044) (4,810) (4,670)
________ ________ ________
Total non-current liabilities (400,386) (336,887) (370,309)
________ ________ ________
Total liabilities (461,203) (386,819) (425,366)
======= ======= =======
Net assets 672,197 555,224 676,675
======= ======= =======
Equity
Issued capital 11 32,432 32,316 32,324
Share premium account 12 49,963 47,065 47,265
Revaluation reserve 12 246,323 168,618 248,836
Other capital reserves 12 108,922 113,225 113,227
Cashflow hedge reserve 12 (3,076) (6,682) (4,808)
Translation reserve 12 28 121 405
Retained earnings 12 246,923 203,163 242,920
Investment in own shares 13 (9,318) (2,602) (3,494)
________ ________ ________
Equity shareholders' funds 672,197 555,224 676,675
======= ======= =======
Net asset value per share: 14
basic 525p 431p 526p
====== ====== ======
diluted 516p 424p 516p
====== ====== ======
Consolidated cashflow statement
For the six months ended 30 September 2006
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Sept 2006 30 Sept 2005 31 March 2006
Notes £000 £000 £000
________ ________ ________
Operating activities
Profit for the financial period 4,891 1,777 56,662
Adjustments:
Short leasehold amortisation 248 232 408
Depreciation of plant and equipment 247 131 441
Cost relating to share-based payment
schemes 711 629 1,180
Cost relating to share-based element
of bonus schemes 2,342 - -
Net finance expenses 3,583 6,119 10,486
Profit from sale of non-current (7,801) (6,933) (14,188)
assets
Gains on revaluation of investment
properties (177) - (23,911)
Deficits on revaluation of investment
properties - 58 1,777
Deficits on revaluation of
development properties - - 1,834
Reversal of deficits on revaluation
of development properties - - (3,598)
Share of profit from joint ventures (1,978) (2,294) (32,864)
Share of profit from associates - - (393)
(Profit) loss on sale of plant and
equipment (10) 6 30
Impairment of other investments 379 - 632
Tax on continuing operations 655 745 5,462
Tax on discontinued operations (15) (942) (1,213)
________ ________ ________
3,075 (472) 2,745
(Increase) decrease in trade and
other receivables (4,439) 5,785 7,830
(Decrease) increase in trade and
other payables (9,807) 1,106 430
(Increase) decrease in trading (20) 1,487 3,313
properties
________ ________ ________
Cash generated from operations (11,191) 7,906 14,318
Interest paid (7,884) (6,778) (15,395)
Interest received 297 207 1,526
Tax paid (64) (2,003) (231)
________ ________ ________
Net cash from operating activities (18,842) (668) 218
======= ======= =======
Investing activities
Purchase and development of property
assets (75,949) (57,247) (112,058)
Purchase of property, plant and (54) (1,093) (2,365)
equipment
Proceeds from property sales 89,660 35,914 88,390
Tax paid on property sales (1,024) (2,750) (5,486)
Acquisition of subsidiary companies - (7,232) (7,335)
Proceeds from sale of interest in 6,776 - -
subsidiary
Acquisition of investment in joint (1,042) - (553)
ventures
Loans to joint ventures (5,505) (11,325) (24,474)
Distributions received from joint 5,389 1,933 3,002
ventures
Acquisition of other investments - - (3,160)
Proceeds from sales of current - - 12
investments
________ ________ ________
Net cash from investing activities 18,251 (41,800) (64,027)
======= ======= =======
Financing activities
Issue of shares 951 178 247
Purchase of own shares for cancellation - (107) (108)
Investment in own shares (6,034) (1,063) (1,955)
Proceeds from new borrowings 156,000 127,004 281,004
Repayment of borrowings (126,432) (68,053) (205,150)
Payment of loan issue costs (288) (273) (400)
Payment of finance lease liabilities (440) (149) (190)
Equity dividends paid (9,299) (8,683) (12,867)
________ ________ ________
Net cash from financing activities 14,458 48,854 60,581
======= ======= =======
Net increase (decrease) in cash
and cash equivalents 13,867 6,386 (3,228)
Cash and cash equivalents at start of 7,954 11,090 11,090
period
Effect of foreign exchange fluctuations
on cash held (43) 18 92
________ ________ ________
Cash and cash equivalents at end of 21,778 17,494 7,954
period
======= ======= =======
Net cash from discontinued operations
included in net cash from operating
activities 6 (403) (2,199) (2,374)
======= ======= =======
Notes to the accounts
For the six months ended 30 September 2006
1. Accounting policies
These interim results are unaudited and do not constitute statutory accounts as
defined in section 240 of the Companies Act 1985. The statutory accounts for
2005/06, which were prepared in accordance with International Financial
Reporting Standards as endorsed by the European Union (IFRS) and with those
parts of the Companies Act 1985 applicable to companies reporting under IFRS,
have been delivered to the Registrar of Companies. The auditors' report on
those accounts was unqualified and did not contain a statement made under
section 237(2) or 237(3) of the Companies Act 1985.
The financial information contained in these interim results has been prepared
in accordance with the Listing Rules of the Financial Services Authority and the
significant accounting policies set out in pages 62 to 65 of the 2005/06 Annual
Report and Accounts which is available on the Company's website
(www.quintain-estates.com). The accounting policies have been consistently
applied to all periods presented in the interim results.
2. Revenue, cost of sales and gross profit
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Audited Audited Audited
Six months Six months Six months Six months Six months Six months Year Year Year
ended ended ended ended ended ended ended ended ended
30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 31 March 31 March 31 March
2006 2006 2006 2005 2005 2005 2006 2006 2006
Revenue Cost of Gross Revenue Cost of Gross Revenue Cost of Gross
sales profit sales profit sales profit
£000 £000 £000 £000 £000 £000 £000 £000 £000
_______ _______ _______ _______ _______ _______ _______ _______ _______
Rental income 13,098 (3,783) 9,315 14,809 (2,792) 12,017 29,075 (7,580) 21,495
Income from
sale of
trading
properties - - - 2,245 (2,048) 197 4,065 (3,687) 378
Income from
leisure
operations 1,141 (466) 675 1,087 (610) 477 1,686 (833) 853
Income from
hotel
operations 443 (210) 233 - - - - - -
Fees,
commissions
and other
income 5,571 (2,110) 3,461 2,368 (872) 1,496 7,225 (3,195) 4,030
_______ _______ _______ _______ _______ _______ _______ _______ _______
Continuing
operations 20,253 (6,569) 13,684 20,509 (6,322) 14,187 42,051 (15,295) 26,756
Discontinued
operations
(note 6) 1,295 (726) 569 2,894 (4,671) (1,777) 5,848 (6,738) (890)
_______ _______ _______ _______ _______ _______ _______ _______ _______
21,548 (7,295) 14,253 23,403 (10,993) 12,410 47,899 (22,033) 25,866
====== ====== ====== ====== ====== ====== ====== ====== ======
Income from hotel and leisure operations is incidental to the Group's
development activities.
3. Administrative expenses
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Sept 2006 30 Sept 2005 31 March 2006
£000 £000 £000
_______ _______ _______
Directors' remuneration 2,931 2,579 4,148
Staff costs 7,780 8,326 13,857
Cost relating to share-based payment schemes 711 638 1,180
Reorganisation provision for discontinued - - 650
operations
Legal and professional fees 1,400 977 1,817
Office costs 1,336 941 2,817
Depreciation 247 166 441
(Profit) loss on disposal of plant and (10) 6 30
equipment
Operating lease payments 448 102 480
General expenses 252 145 392
_______ _______ _______
15,095 13,880 25,812
====== ====== ======
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Sept 2006 30 Sept 2005 31 March 2006
£000 £000 £000
_______ _______ _______
Continuing operations 14,474 12,516 22,660
Discontinued operations (note 6) 621 1,364 3,152
_______ _______ _______
15,095 13,880 25,812
====== ====== ======
4. Net finance expenses
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Sept 2006 30 Sept 2005 31 March 2006
£000 £000 £000
_______ _______ _______
Interest payable on bank loans and overdrafts 8,051 8,104 15,328
Interest payable on other loans 606 597 1,307
Interest on obligations under finance leases 434 106 230
_______ _______ _____
9,091 8,807 16,865
Interest capitalised (4,315) (3,607) (7,824)
_______ _______ _____
Interest payable 4,776 5,200 9,041
Change in fair value of interest rate swaps (150) 1,590 2,994
Finance income (1,043) (671) (1,549)
_______ _______ _______
3,583 6,119 10,486
====== ====== ======
5. Tax
Audited Unaudited
as at as at
31 March 2006 30 Sept 2006
Tax Payments Tax
liabilities in Recognised Recognised liabilities
period in income in equity
£000 £000 £000 £000 £000
_______ _______ _______ _______ _______
Current tax 1,521 (1,088) 1,675 580 2,688
====== ====== ====== ====== ======
Deferred tax:
Capital gains less capital 105,257 - (1,368) (1,250) 102,639
losses
Capital allowances 5,776 - 638 - 6,414
Derivative financial instruments (2,986) - - 745 (2,241)
Other items (1,247) - (305) - (1,552)
_______ _______ _______ _______ _______
106,800 - (1,035) (505) 105,260
====== ====== ====== ====== ======
Total tax 108,321 (1,088) 640 75 107,948
====== ====== ====== ====== ======
Continuing operations 655
Discontinued operations (note 6) (15)
_____
640
====
6. Discontinued operations
The results in the six months relating to the Conference Centre and Exhibition
Halls at Wembley, which ceased operation at the end of July 2006, have been
classified as discontinued. This treatment is consistent with that adopted in
the 2005/06 Annual Report and Accounts, which also identified the operation of
the Wembley Pavilion, a temporary structure, as a discontinued operation. The
Conference Centre and Exhibition Halls are scheduled for demolition and the
Pavilion was dismantled in January 2006.
An analysis of the results from discontinued operations for the period was as
follows:
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Sept 2006 30 Sept 2005 31 March 2006
£000 £000 £000
_______ _______ _______
Revenue 1,295 2,894 5,848
Cost of sales (726) (4,671) (6,738)
_______ _______ _______
Gross profit (loss) 569 (1,777) (890)
Administrative expenses (621) (1,364) (3,152)
_______ _______ _______
Loss before tax on discontinued operations (52) (3,141) (4,042)
Tax credit 15 942 1,213
_______ _______ _______
Loss from discontinued operations, net of tax (37) (2,199) (2,829)
====== ====== ======
During the period, the Group paid reorganisation costs of £523,000 which had
been provided for as at 31 March 2006 and which, after adjusting for tax, is
reflected in the Consolidated cash flow statement for the current period.
There was no impact on basic and diluted earnings per share of the loss from
discontinued operations. In the comparative period, the loss from discontinued
operations reduced basic and diluted earnings per share by 1.7p.
7. Earnings per share
a) Before discontinued operations
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Audited Audited Audited
Six Six Six Six Six Six Year Year Year
months months months months months months ended ended ended
ended ended ended ended ended ended 31 March 31 March 31 March
30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 2006 2006 2006
2006 2006 2006 2005 2005 2005
Profit after Weighted Earnings Profit after Weighted Earnings Profit after Weighted Earnings
tax and average per tax and average per tax and average per
before number share before number share before number share
discontinued of shares pence discontinued of shares pence discontinued of shares pence
operations 000 operations 000 operations 000
£000 £000 £000
_______ _______ _______ _______ _______ _______ _______ _______ _______
Basic 4,928 128,512 3.8 3,976 128,903 3.1 59,491 128,937 46.1
====== ====== ======
Adjustments:
Interest
on 8%
Convertible
unsecured
loan stock 122 2,000 118 2,000 235 2,000
Employee
share
-based
payment
schemes - 1,197 - 1,121 - 1,237
_______ _______ _______ _______ _______ _______
Diluted 5,050 131,709 3.8 4,094 132,024 3.1 59,726 132,174 45.2
====== ====== ====== ====== ====== ====== ====== ====== ======
b) After discontinued operations
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Audited Audited Audited
Six Six Six Six Six Six Year Year Year
months months months months months months ended ended ended
ended ended ended ended ended ended 31 March 31 March 31 March
30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 2006 2006 2006
2006 2006 2006 2005 2005 2005
Profit after Weighted Earnings Profit after Weighted Earnings Profit after Weighted Earnings
tax and average per tax and average per tax and average per
discontinued number share discontinued number share discontinued number share
operations of shares pence operations of shares pence operations of shares pence
£000 000 £000 000 £000 000
_______ _______ _______ _______ _______ _______ _______ _______ _______
Basic 4,891 128,512 3.8 1,777 128,903 1.4 56,662 128,937 43.9
====== ====== ======
Adjustments:
Interest
on 8%
Convertible
unsecured
loan stock 122 2,000 118 2,000 235 2,000
Employee
share
-based
payment
schemes - 1,197 - 1,121 - 1,237
_______ _______ _______ _______ _______ _______
Diluted 5,013 131,709 3.8 1,895 132,024 1.4 56,897 132,174 43.0
====== ====== ====== ====== ====== ====== ====== ====== ======
The weighted average number of shares above excludes the number of shares held
by Group-sponsored ESOP Trusts, which has been treated as cancelled.
8. Dividends
The proposed interim dividend of 3.50p (2005: 3.25p) per ordinary share was
approved by the Board on 28 November 2006 and is payable on 18 January 2007 to
shareholders on the register at the close of business on 15 December 2006. The
dividend has not been included as a liability as at 30 September 2006.
The final dividend of £9,299,000 for the year ended 31 March 2006, representing
7.25p per share, was paid on 8 September 2006 and is included in the
reconciliation of movements in equity.
9. Investment and development properties
Investment and development properties are valued annually at the end of each
financial year and are shown in the balance sheet as at 30 September 2006 at the
previous year end valuations adjusted for subsequent expenditure at cost and
disposals, and movements on lease incentives per SIC 15, 'Operating Leases:
Incentives'.
Investment Development Total
properties properties properties
£000 £000 £000
_______ _______ _______
Balance 1 April 2006 290,088 599,455 889,543
Foreign exchange adjustment (344) - (344)
Additions 51,867 41,508 93,375
Interest capitalised 229 4,086 4,315
Disposals (14,360) (32,285) (46,645)
Short leasehold amortisation - (248) (248)
_______ _______ _______
Balance 30 September 2006 327,480 612,516 939,996
====== ====== ======
10. Bank loans and other borrowings
The maturity profile of the Group's debt was as follows:
30 Sept 2006 30 Sept 2005 31 March 2006
£000 £000 £000
_______ _______ _______
Within one year 2,947 48 4,432
Between one and two years - 7,172 2,893
Between two and five years 277,701 221,659 238,863
Over five years - 4,870 4,870
_______ _______ _______
280,648 233,749 251,058
====== ====== ======
Undrawn committed facilities were as follows:
30 Sept 2006 30 Sept 2005 31 March 2006
£000 £000 £000
_______ _______ _______
Between two and five years 220,000 271,000 254,000
====== ====== ======
11. Share capital
Number Nominal
of shares value
000 £000
_______ _______
Shares in issue as at 1 April 2006 129,295 32,324
Issue of shares under share-based payment schemes 435 108
_______ _______
Shares in issue as at 30 September 2006 129,730 32,432
====== ======
12. Reserves
Share Revaluation Other Cashflow Translation Retained
premium reserve capital hedge reserve earnings
account reserves reserve
£000 £000 £000 £000 £000 £000
_______ _______ _______ _______ _______ _______
Balance 1 April 2006 47,265 248,836 113,227 (4,808) 405 242,920
Recognised income and expense
in period - (65) - 1,732 (377) 5,561
Issue of shares less costs 2,698 - - - - (1,855)
Cost relating to share-based
payment schemes - - - - - 711
Cost relating to share-based
element of bonus schemes - - - - - 2,342
Cost of shares awarded to employees
under bonus schemes - - - - - (210)
Short leasehold amortisation - (12) - - - 12
Realisation of revaluation gains in
period - (2,436) - - - 2,436
Transfer between reserves - - (4,305) - - 4,305
Dividends paid in period - - - - - (9,299)
_______ _______ _______ _______ _______ _______
Balance 30 September 2006 49,963 246,323 108,922 (3,076) 28 246,923
====== ====== ====== ====== ====== ======
13. Investment in own shares
£000
_______
Balance 1 April 2006 3,494
Purchase of own shares 6,034
Cost of shares awarded to employees
under bonus schemes (210)
_______
Balance 30 September 2006 9,318
======
During the period, 1,000,000 of Quintain's own shares were purchased and held by
Group-sponsored ESOP Trusts and 37,398 shares held in the Trusts were used to
discharge bonus commitments. The number of shares held in the Trusts at the end
of the period was 1,622,198.
14. Net asset value per share
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Audited Audited Audited
As at As at As at As at As at As at As at As at As at
30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 31 March 31 March 31 March
2006 2006 2006 2005 2005 2005 2006 2006 2006
Equity Number Net asset Equity Number Net asset Equity Number Net asset
shareholders' of shares value shareholders' of shares value shareholders' of shares value
funds per share funds per share funds per share
£000 000 pence £000 000 pence £000 000 pence
_______ _______ ____ _______ _______ ____ _______ _______ ____
Basic 672,197 128,107 525 555,224 128,764 431 676,675 128,635 526
=== === ===
Adjustments:
8% Convertible
unsecured
loan stock 2,947 2,000 2,845 2,000 2,893 2,000
Employee
share
-based
payment
schemes 9,732 2,640 10,364 3,180 9,766 2,925
_______ _______ _______ _______ _______ _______
Diluted 684,876 132,747 516 568,433 133,944 424 689,334 133,560 516
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The number of shares in issue has been adjusted for 1,622,198 (2005: 500,000)
shares held by Group-sponsored ESOP Trusts.
This information is provided by RNS
The company news service from the London Stock Exchange