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First Property Group (FPO)

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Thursday 21 November, 2019

First Property Group

Interim Results

RNS Number : 1290U
First Property Group PLC
21 November 2019
 

Date:

21 November 2019

On behalf of:

First Property Group plc ("First Property" or "the Group")

Embargoed:

0700hrs

 

First Property Group plc

Interim Results for the six months to 30 September 2019                                                                                     

 

First Property Group plc (AIM: FPO), the award winning property fund manager and investor with operations in the United Kingdom and Central Europe, today announces its interim results for the six months to 30 September 2019.

 

Financial Highlights:

 

·      Profit before tax up 8.0% to £2.98 million (2018 proforma: £2.76 million);

·      Diluted earnings per share up 22.5% to 2.07 pence (2018: 1.69 pence);

·      Adjusted NAV up 3.8% to 59.65 pence per share (31 March 2019: 57.48 pence per share);

·      Interim dividend up 2.3% to 0.45 pence per share (2018: 0.44 pence per share).

 

Operational Highlights:

 

·      Total assets under management £698 million (31 March 2019: £706 million);

·      Third party assets under management £602 million (31 March 2019: £611 million);

·      Weighted average unexpired fund management contract term: 5.2 years (31 March 2019: 5.8 years);

·      Approved by the Financial Conduct Authority (FCA) as full-scope Alternative Investment Fund Manager (AIFM) enabling the Group to raise and manage third party funds in excess of €500 million.

 

Financial Summary:

 

 

Unaudited

Six months to 30 Sept 2019

Unaudited

Six months to 30 Sept 2018 PROFORMA*

Unaudited

Six months to

30 Sept 2018

Percentage change

Audited

Year to

31 March 2019

Income Statement:

 

 

 

 

 

Revenue

£8.08m

£7.36m*

£11.16m

+9.8%*

£20.44m

Statutory profit before tax 

£2.98m

£2.76m*

£3.82m

+8.0%*

£8.31m

Diluted earnings per share

2.07p

 

1.69p

+22.5%

4.85p

Dividend per share

0.45p

 

0.44p

+2.3%

1.66p

Average £/€ rate

0.889

 

0.886

 

0.881

* Recalculated on a Proforma basis in order to enable like for like comparison with the current period, by treating the deconsolidated entity Fprop Opportunities plc (FOP) as an associate rather than a subsidiary. (See Note 2 Reconciliation and Note 3 Segmental Analysis in the notes to the accounts).

 

 

 

 

 

Percentage change vs. 31 March 2019

 

Balance Sheet at period end:

 

 

 

 

 

Adjusted net assets per share (EPRA basis)

59.65p

 

62.21p

+3.8%

57.48p

Cash Balances

£8.55m

 

£10.01m**

-12.2%

£9.74m

Period end £/€ rate

0.885

 

0.891

 

0.862

 

 

 

 

 

 

Properties at market value

£96.3m

 

£178.3m**

+1.8%

£94.6m

LTV of properties at market value

70.1%

 

67.8%

 

70.4%

Associates and Investments at market value

£30.3m

 

£20.1m

+2.7%

£29.5m

Group gearing ratio

49.9%

 

62.7%

 

50.4%

 

**Prior to deconsolidation of Fprop Opportunities plc (FOP), which held £2.03 million of cash.

 

Total assets under management:

£698m

 

£730m

 

£706m

United Kingdom

57.5%

 

58.0%

 

58.9%

Poland

40.2%

 

39.9%

 

38.9%

Romania

2.3%

 

2.1%

 

2.2%

 

 

Commenting on the results, Ben Habib, Chief Executive of First Property Group, said:

 

"I am pleased to be reporting on another satisfactory six months for the Group.

 

"Our profit before tax increased by 8% to £2.98 million, mainly due to an increased contribution from our fund management division and Chałubińskiego 8 (CH8), one of the two office towers in Warsaw owned by the Group. In view of this profit growth and the sustainability of the Group's earnings, the directors have once again recommended an increased interim dividend.

 

The occupational market for properties under our management remains generally healthy. New investment opportunities are harder to find at present but they always exist. As ever, I look forward to the future with confidence."

 

A briefing for analysts will be held at 10:30hrs today at the headquarters of First Property Group plc, 32 St James's Street, London, SW1A 1HD. Participants can also attend by telephone on +44 330 336 9401, passcode 514362. A copy of the accompanying investor presentation can be accessed simultaneously at http://www.fprop.com/media-news/presentations/. An audio recording of the call will subsequently be posted on the company website, www.fprop.com/audio/.

 

For further information please contact:

 

First Property Group plc

Tel: 020 7340 0270

Ben Habib (Chief Executive & Chief Investment Officer)

George Digby (Group Finance Director)

Jeremy Barkes (Director, Business Development)

www.fprop.com

 

 

Arden Partners

Tel: 020 7614 5900

John Llewellyn-Lloyd/ Ben Cryer

 

 

 

Newgate Communications

Tel: 020 3757 6880

Robin Tozer/ Tom Carnegie

[email protected]

 

Notes to Investors and Editors:

 

First Property Group plc is an award winning property fund manager and investor with operations in the United Kingdom and Central Europe. Its focus is on higher yielding commercial property with sustainable cash flows. The company is flexible and takes an active approach to asset management. Its earnings are derived from:

 

·      Fund management - via its FCA regulated and AIFMD approved subsidiary, First Property Asset Management Ltd (FPAM), which earns fees from investing for third parties in property. FPAM currently manages thirteen funds which are invested across the United Kingdom, Poland and Romania.

 

·      Group Properties - principal investments by the Group, to earn a return on its own capital, usually in partnership with third parties. Investments comprise nine commercial properties in Poland and Romania and non-controlling interests in ten of the thirteen funds managed by FPAM.

 

Listed on AIM the Company has offices in London, Warsaw and Bucharest. Around one third of the shares in the Company are owned by management and their families. Further information about the Company and its products can be found at: www.fprop.com.

 

 

 

 

CHIEF EXECUTIVE'S STATEMENT

 

Performance:

 

I am pleased to report interim results for the six months ended 30 September 2019. Please note the 2018 income statement has been recalculated on a "Proforma" basis to enable like for like comparison with the current period, by treating the deconsolidated entity Fprop Opportunities plc (FOP) as an associate rather than a subsidiary. (See Note 2 Reconciliation and Note 3 Segmental Analysis)

 

Revenue earned by the Group increased by 9.8% on a proforma basis (following the deconsolidation of FOP) to £8.08 million (2018 proforma: £7.36 million) yielding an 8.0% increase in profit before tax of £2.98 million (2018 proforma: £2.76 million). The increase in profit before tax is mainly attributable to higher contributions from the fund management division and Chałubińskiego 8 (CH8), one of the two office towers in Warsaw owned by the Group.

 

Diluted earnings per share increased by 22.5% to 2.07 pence (2018: 1.69 pence), more than the increase in profit before tax, due to a lower deferred tax charge.

 

The Group ended the period with net assets under the cost basis of accounting of £46.55 million (31 March 2019: £46.29 million). It is the accounting policy of the Group to carry its properties and interests in associates at the lower of cost or market value. The net assets of the Group when adjusted to their market value less any deferred tax liabilities (EPRA basis) increased by 3.3% from the financial year-end to £67.68 million (31 March 2019: £65.51 million).

 

Group cash balances at the period end stood at £8.55 million (30 September 2018: £10.01 million, of which £2.03 million was held by FOP [since deconsolidated]). Capital expenditure on the nine directly owned Group properties which was not recoverable from tenants amounted to £0.78 million (2018: £0.58 million), of which some £0.7 million was incurred on Chałubińskiego 8 (CH8). In addition, the Group purchased 500,000 of its own Ordinary Shares for a total consideration of £214,000. These are now held in treasury.

 

Dividend:

 

The Directors have resolved to increase the interim dividend by 2.3% to 0.45 pence per share (2018: 0.44 pence per share) which will be paid on 3 January 2020 to shareholders on the register at 29 November 2019, with an ex-dividend date of 28 November 2019.

 

Review of Operations:

 

PROPERTY FUND MANAGEMENT (First Property Asset Management Ltd or FPAM)

 

Third party assets under management reduced by 1.6% since the financial year-end to £602 million (31 March 2019: £611 million). The decrease was primarily attributable to the sale of one property in the UK on behalf of the fund managed for SIPS. Some 67% of third party assets under management were located in the UK, 32% in Poland, and 1% in Romania.

 

Fund management fees are generally levied monthly by FPAM by reference to the value of properties under management. In the case of Fprop Offices LP, the Group is entitled to a share of total profits in lieu of fund management fees and to receive annual payments on account equivalent to 10% of total cumulative income profits and realised capital gains. Under its accounting policy the Group will not recognise unrealised property revaluations above the properties' original cost. These payments are adjusted annually, if necessary, for any overpayments made in previous years up to a maximum of total past cumulative payments received.

 

Revenue earned by this division increased by 11.5% to £2.03 million (2018 proforma: £1.82 million), resulting in profit before unallocated central overheads and tax increasing by 25.0% to £1.00 million (2018: £0.80 million), representing 24.4% of Group profit before unallocated central overheads and tax (2018 proforma: 20.0%). The increase in revenue and profit earned by this division is mainly due to accrued contributions of £247,000 from Fprop Offices LP (2018: £nil). Future entitlements to payment in respect of this fund are being earned at a rate of some £750,000 - £950,000 per annum before property revaluations and thus act as a buffer against possible refund liabilities in the future. 

 

At the period end FPAM's fund management fee income, excluding performance fees and the profit share from Fprop Offices LP, was being earned at an annualised rate of £3.56 million (31 March 2019: £3.34 million).

 

FPAM's weighted average unexpired fund management contract term at the period end was 5.2 years (2018: 6.3 years).

 

On 1 November 2019 FPAM's application to be a full scope Alternative Investment Fund Manager (AIFM) was approved by the Financial Conduct Authority (FCA), enabling the Group to raise and manage third party funds in excess of €500 million.

 

 

The reconciliation of movement in third party funds under management during the period is shown below:

 

 

Funds managed for third parties (including funds in which the Group is a minority shareholder)

 

UK

£m

CEE

£m

Total

£m

No. of prop's

As at 1 April 2019

416.0

195.1

611.1

71

Purchases

-

-

-

-

New fund mandates

-

-

-

-

Property sales

(8.0)

-

(8.0)

(1)

Capital expenditure

1.2

0.2

1.4

-

Property depreciation

-

(0.2)

(0.2)

-

Property revaluation

(7.7)

(0.2)

(7.9)

-

FX revaluation

-

5.1

5.1

-

As at 30 Sept 2019

401.5

200.0

601.5

70

 

At the period end FPAM managed 12 (2018: 12) closed-end third party funds. A brief synopsis of the value of assets and maturity of each of these vehicles is set out below:

 

Fund

Country of investment

Fund expiry

% of total assets

 under management

Assets under management at market value at

30 Sept 2019

Assets under management at market value at

30 Sept 2018

 

 

 

%age

£m

£m

SAM & DHOW

UK

Rolling

-

*

*

5PT

Poland

Dec 2022

1.3

8.1

8.2

UK PPP

UK

Feb 2022

14.0

84.2

92.0

SIPS

UK

Jan 2025

25.2

151.6

166.3

FRS

Romania

Sept 2025

0.2

1.1

2.5

FGC

Poland

Aug 2024

3.7

22.2

22.2

FKR

Poland

Apr 2024

3.9

23.6

23.4

SPEC OPPS

UK

Jan 2027

3.2

19.1

19.1

OFFICES

UK

June 2024

24.4

146.5

145.8

FPL

Poland

June 2028

10.6

63.7

64.0

FCL

Romania

June 2028

1.3

7.9

7.9

FOP

Poland

Oct 2025

12.2

73.5

-

Total

 

 

100.0

601.5

551.4

* Not subject to recent revaluation

 

 

GROUP PROPERTIES

 

At the period end Group Properties comprised:

 

1.     Nine directly owned commercial properties in Poland and Romania which are accounted for under the cost model as set out in the table below:

 

Country

Sector

No. of properties

Book 

value

Market value

Contribution to Group profit before tax

period to

30 Sept 2019*

Contribution to Group profit before tax

period to

30 Sept 2018*

 

 

 

£m

£m

£m

£m

Poland

Offices

3

72.5

83.9

2.6

2.0

Poland

Convenience retail

4

5.2

5.5

0.1

0.0

Romania

Office & logistics

2

4.2

6.9

0.1

0.1

Total

 

9

81.9

96.3

2.8

2.1

*Prior to the deduction of direct overhead and unallocated central overhead expenses.

 

 

2.     Non-controlling interests in ten of the thirteen funds managed by FPAM of which seven are accounted for as Associates under the cost model and three are accounted for as Investments in funds:

 

 

Fund

% owned by

First Property

Group

Book value of First Property's share in

fund

Current market value of holdings

Group's share

of post-tax profits earned by fund

30 Sept 2019

PROFORMA Group's share

of post-tax profits earned by fund

30 Sept 2018

 

%age

£'000

£'000

£'000

£'000

a) Associates

 

 

 

 

 

5PT

37.8%

1,053

1,206

73

25

RPT/E AND S

-

-

-

-

(9)*

FRS

24.1%

161

268

11

275

FOP

40.0%

10,572

10,722

751

720

FGC

28.2%

2,214

2,530

156

168

FKR

18.1%

1,379

1,910

97

85

FPL

23.4%

2,057

9,909

8

(59)

FCL

17.4%

501

480

43

(2)

Sub Total

17,937

27,025

1,139

1,203

 

b) Investments

UK PPP

0.9%

799

799

33

29

SPEC OPPS

4.8%

553

553

32

20

OFFICES

1.6%

1,954

1,954

67

108

Sub Total

3,306

3,306

132

157

 

Total

21,243

30,331

1,271

1,360

* Representing the Group's share of the loss from its associate share in RPT/E AND S prior to its consolidation into the Group's accounts on 1 August 2018.

 

Revenue from Group Properties increased by 9.2% to £6.05 million (2018 proforma: £5.54 million), generating a profit before unallocated central overheads and tax of £3.10 million (2018 proforma: £3.20 million) and representing 75.6% (2018 proforma: 80.0%) of Group profit before unallocated central overheads and tax. Of this, £1.83 million (2018 proforma: £1.84 million) was contributed by the Group's nine directly owned properties and £1.27 million (2018 proforma: £1.36 million) was contributed by the Group's non-controlling interests in ten of its thirteen funds. The reduction in profit from the Group's non-controlling interests in funds was mainly attributable to the non-repeat of profit on sale (2018: £216,000) by an Associate (Fprop Romanian Supermarkets).

 

The yield (annualised net operating income divided by market value) of all nine directly owned properties is some 10%. Total gross debt secured against them amounted to £67.5 million (31 March 2019: £66.7 million). Interest expense in the first half in respect of them amounted to some £0.67 million. The current weighted average borrowing cost is 1.84% (31 March 2019: 2.15%) per annum. In order to mitigate the effects of potential interest rate rises, we have fixed the interest rate on some 42% of the loans by value. A one percentage point increase from current interest rates on the balance of the loan interest which is not fixed would increase the Group's interest bill by £460,000 per annum (31 March 2019: £485,000).

 

Loan repayments in respect of the nine directly owned properties in the first half amounted to some £2.75 million.

 

A summary of the three largest directly owned properties is below:

 

1.     Chałubińskiego 8, Warsaw (CH8, value circa €40 million) - prime location in Warsaw's central business district, some 300 metres from Warsaw's central station. In recent years the property has benefitted from capital expenditure to upgrade the lobby, the mechanical and electrical equipment and thirteen of the eighteen floors owned by the Group. The property is now around 80% let (2018: circa 60% let). Net operating income is being earned at an annualised rate of €1.3 million (2018: €0.7 million) and should rise to some €3.2 million once fully let;

 

2.     Prokom Building, Gdnyia (net book value circa €30 million) - has been let to Warsaw Stock Exchange listed Asseco since it was first built in 2005. It contributes some €2.6 million per annum to Group profit before tax Asseco's lease is scheduled to expire on 28 October 2020. It is no longer in full occupation of the building and has sub-let some of it. We have begun negotiations to re-lease the property, some of which we would hope to conclude prior to the end of the current lease period. However, it is likely that there will be some vacancy from November 2020, with a consequent reduction in operating income generated by the property, until all the vacant space can be re-leased;

 

3.     Blue Tower, Warsaw (value circa €25 million) - prime location in Warsaw's central business district. The Group owns 48% of the tower and 90% of Corp Sp. z o.o., the company which is constitutionally tied to manage the building. The Group's 48% share is virtually fully let. In recent years the property has benefited from capital expenditure to upgrade the ground floor reception and retail area and all of the fifteen floors owned by the Group. Net operating income is being earned at an annualised rate of some €1.83 per annum (2018: €1.74 million).

 

 

 

Commercial Property Markets Outlook

 

Poland:

 

GDP continues to grow at some 3.5% per annum or more.

 

The scale of commercial property development which has accompanied this economic growth has resulted in pressure on rents and capital values. There are signs, however, that the balance of pricing power may be changing in favour of landlords in some sub-sectors, such as offices in Warsaw, where take-up has exceeded supply for some time now.

 

Investor demand for commercial property remains high with volumes expected to finish 2019 at around €7 billion (2018: €7.1 billion).

 

Banking terms for commercial property loans are comparable to those obtainable in Western Europe.

 

Romania:

 

GDP growth is expected to slow in 2019 to 4.1% per annum, and to slow further still in 2020 and 2021 to around 3.5% per annum.

 

The occupier market is growing with the economy but, as in Poland, rental growth remains elusive given the scale of new development.

 

Investor demand for commercial property continues to improve but volumes remain below larger peers in CEE. Around €1 billion of commercial property is expected to transact in 2019, as it did in 2018. Bank lending margins continue to be under downward pressure, which should boost investment demand for commercial property (although bank appetite for long exposures remains low). Some regional cities are starting to become more attractive for secondary market investors with Cluj-Napoca leading the pack.

 

 

United Kingdom:

 

GDP growth has slowed to an annualised rate of around 0.5%, not helped by political uncertainty.

 

The commercial property market generated total returns of only 1.9% in the year to 30 September, mainly due to a reduction in capital values in the retail sector. However, secondary older office buildings are performing well because they are diminishing in number as conversions to residential use take place, which is leading to rental growth.

 

Total transaction volumes over the same period are around a third lower compared to the previous year. Our sense is that a standoff exists between buyers, who require a discount in compensation for political uncertainty, and sellers who are generally unwilling to sell at such prices.

 

We remain broadly positive about the prospects of the UK commercial property market.

 

Current Trading and Prospects

 

I am pleased to be reporting on another satisfactory six months for the Group.

 

Our profit before tax increased by 8% to £2.98 million, mainly due to an increased contribution from our fund management division and Chałubińskiego 8 (CH8), one of the two office towers in Warsaw owned by the Group. In view of this profit growth and the sustainability of the Group's earnings, the directors have once again recommended an increased interim dividend.

 

The occupational market for properties under our management remains generally healthy. New investment opportunities are harder to find at present but they always exist. As ever, I look forward to the future with confidence.

 

 

Ben Habib

Chief Executive

21 November 2019

 

 

 

 

 

CONSOLIDATED INCOME STATEMENT

for the six months to 30 September 2019

 

 

Notes

Six months to 30 Sept 2019

(unaudited)

Six months to 30 Sept 2018 PROFORMA*

Six months to

30 Sept 2018

(unaudited)

Year to

31 Mar 2019

(audited)

 

 

Total results

Total results

Total results

Total results

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

Revenue

 

8,077

7,356

11,157

20,437

Cost of sales

 

(1,705)

(1,469)

(2,452)

(4,491)

Gross profit

 

6,372

5,887

8,705

15,946

Profit on sale of 'FOP' shares

 

-

32

32

64

Gain on loss of control of subsidiary

 

-

-

-

4,827

Write down/ impairment loss to an investment property

7

-

-

32

(2,984)

Impairment of goodwill on acquisition

 

-

(27)

(27)

(27)

Loss on disposal of subsidiary

 

-

(5)

(5)

(5)

Operating expenses

 

(4,006)

(3,804)

(4,110)

(9,320)

Operating profit

 

2,366

2,083

4,627

8,501

Share of results in associates

8

1,139

1,203

483

1,600

Investment income

 

132

157

157

273

Interest income

4

42

17

47

114

Interest expense

4

(696)

(703)

(1,495)

(2,180)

Profit before tax

 

2,983

2,757

3,819

8,308

Tax charge

5

(613)

(817)

(1,052)

(1,943)

Profit for the period

 

2,370

1,940

2,767

6,365

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

Owners of the parent

 

2,350

1,924

1,924

5,514

Non-controlling interests

 

20

16

843

851

 

 

2,370

1,940

2,767

6,365

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

Basic

6

2.11p

1.73p

1.73p

4.95p

Diluted

6

2.07p

1.69p

1.69p

4.85p

 

* Recalculated on a Proforma basis in order to enable like for like comparison with the current period, by treating the deconsolidated entity Fprop Opportunities plc (FOP) as an associate rather than a subsidiary. (See Note 2 Reconciliation and Note 3 Segmental Analysis).

 

All operations are continuing.

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF

COMPREHENSIVE INCOME

 

for the six months to 30 September 2019

 

 

 

Six months to 30 Sept 2019

Six months to 30 Sept 2018

Six months to

30 Sept 2018

Year to

31 Mar 2019

 

(unaudited)

PROFORMA*

(unaudited)

(audited)

 

Total results

Total results

Total results

Total results

 

£'000

£'000

£'000

£'000

 

 

 

 

 

Profit for the period

2,370

1,940

2,767

6,365

 

 

 

 

 

Other comprehensive income

 

 

 

 

Items that may subsequently be reclassified to profit or loss

 

 

 

 

Exchange differences on retranslation of foreign subsidiaries

(451)

(1,329)

(1,453)

(1,784)

Foreign exchange profit recycled to the Income Statement on disposal

-

-

-

(721)

Net gain/(loss) on financial assets at fair value through Other Comprehensive Income

(52)

-

-

29

Taxation

-

-

-

-

Total comprehensive income for the period

1,867

611

1,314

3,889

 

 

 

 

 

Total comprehensive income for the period attributable to:

 

 

 

 

Owners of the parent

1,847

595

595

3,414

Non-controlling interests

20

16

719

475

 

1,867

611

1,314

3,889

 

* Recalculated on a Proforma basis in order to enable like for like comparison with the current period, by treating the deconsolidated entity Fprop Opportunities plc (FOP) as an associate rather than a subsidiary. (See Note 2 Reconciliation and Note 3 Segmental Analysis).

 

All operations are continuing.
 

CONDENSED CONSOLIDATED BALANCE SHEET

 

as at 30 September 2019

 

 

Notes

As at

30 Sept 2019 (unaudited)

 

As at

31 Mar 2019 (audited)

As at

30 Sept 2018 (unaudited)

 

 

 

£'000

£'000

£'000

 

 

 

 

 

Non-current assets

 

 

 

 

Goodwill

 

153

153

153

Investment properties

7

67,956

67,348

137,062

Property, plant and equipment

 

61

58

50

Interest in associates

8a

17,937

17,054

5,993

Other financial assets at fair value through OCI

8b

3,306

3,539

3,543

Other receivables

9

1,133

1,312

1,574

Deferred tax assets

 

2,828

2,779

4,417

Total non-current assets

 

93,374

92,243

152,792

 

 

 

 

 

Current assets

 

 

 

 

Inventories - land and buildings

 

15,025

14,817

15,505

Current tax assets

 

29

28

59

Trade and other receivables 

9

4,890

5,918

4,714

Cash and cash equivalents

 

8,553

9,738

10,009

Total current assets

 

28,497

30,501

30,287

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

10

(4,923)

(7,078)

(5,627)

Financial liabilities

11a

(6,749)

(6,329)

(10,057)

Current tax liabilities

 

(193)

(80)

(326)

Total current liabilities 

 

(11,865)

(13,487)

(16,010)

Net current assets

 

16,632

17,014

14,277

Total assets less current liabilities

 

110,006

109,257

167,069

 

 

 

 

 

Non-current liabilities

 

 

 

 

Financial liabilities

11b

(60,745)

(60,348)

(112,095)

Deferred tax liabilities

 

(2,712)

(2,623)

(4,210)

Net assets

 

46,549

46,286

50,764

 

 

 

 

 

Equity

 

 

 

 

Called up share capital

 

1,166

1,166

1,166

Share premium

 

5,791

5,791

5,790

Share-based payment reserve

 

179

179

203

Foreign exchange translation reserve

 

(1,180)

(731)

69

Purchase of own shares reserve

 

(2,462)

(2,248)

(2,291)

Investment revaluation reserve

 

(93)

(41)

(70)

Retained earnings

 

43,046

42,056

38,955

Equity attributable to the owners of the parent

 

46,447

46,172

43,822

Non-controlling interests

 

102

114

6,942

Total equity

 

46,549

46,286

50,764

 

 

 

 

 

Net assets per share

6

41.90p

41.46p

39.39p

 

 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

for the six months to 30 September 2019

 

 

Share

Capital

Share Premium

 

Share- Based

Payment Reserve

Foreign Exchange Translation Reserve

Purchase of own Shares

Investment

Revaluation

Reserve

 

Retained Earnings


 

Non-controlling Interests

 

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 1 April 2018

1,166

5,789

203

1,398

(95)

(70)

38,344

6,187

52,922

Profit for the period

-

-

-

-

-

-

2,767

-

2,767

Net gain/ (loss) on financial assets at fair value through other comprehensive income

-

-

-

-

-

-

-

-

-

Movement on foreign exchange

-

-

-

(1,329)

-

-

-

(124)

(1,453)

Total Comprehensive Income

-

-

-

(1,329)

-

-

2,767

(124)

1,314

Change in proportion held by non-controlling interests

-

-

-

-

-

-

-

58

58

Sale of treasury shares

-

1

-

-

5

-

-

-

6

Purchase of treasury shares

-

-

-

-

(2,201)

-

-

-

(2,201)

Non-controlling interests

-

-

-

-

-

-

(843)

843

-

Dividends paid

-

-

-

-

-

-

(1,313)

(22)

(1,335)

At 30 Sept 2018

1,166

5,790

203

69

(2,291)

(70)

38,955

6,942

50,764

Profit for the period

-

-

-

-

-

-

3,598

-

3,598

Net gain/ (loss) on financial assets at fair value through other comprehensive income

-

-

-

-

-

29

-

-

29

Foreign exchange profit recycled

-

-

-

(721)

-

-

-

-

(721)

Movement on foreign exchange

-

-

-

(79)

-

-

-

(252)

(331)

Total Comprehensive Income

-

-

-

(800)

-

29

3,598

(252)

2,575

Change in proportion held by non-controlling interests

-

-

-

-

-

-

-

1,015

1,015

Deconsolidation of FOP

-

-

-

-

-

-

-

(7,598)

(7,598)

Sale of treasury shares

-

1

-

-

5

-

-

-

6

Exercise of share options

-

-

(24)

-

38

-

-

-

14

Non-controlling interests

-

-

-

-

-

-

(8)

8

-

Dividends paid

-

-

-

-

-

-

(489)

(1)

(490)

At 1 April 2019

1,166

5,791

179

(731)

(2,248)

(41)

42,056

114

46,286

Profit for the period

-

-

-

-

-

-

2,370

-

2,370

Net gain/ (loss) on financial assets at fair value through other comprehensive income

-

-

-

-

-

(52)

-

-

(52)

Movement on foreign exchange

-

-

-

(449)

-

-

-

(2)

(451)

Total Comprehensive Income

-

-

-

(449)

-

(52)

2,370

(2)

1,867

Purchase of treasury shares

-

-

-

-

(214)

-

-

-

(214)

Non-controlling interests

 

 

 

 

 

 

(20)

20

-

Dividends paid

-

-

-

-

-

-

(1,360)

(30)

(1,390)

At 30 Sept 2019

1,166

5,791

179

(1,180)

(2,462)

(93)

43,046

102

46,549

 

 

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

 

for the six months to 30 September 2019

 

 

Notes

Six months to

 30 Sept 2019 (unaudited)

Six months to 30 Sept 2018 (unaudited)

Year to

31 Mar 2019

 (audited)

 

 

£'000

£'000

£'000

Cash flows from operating activities

 

 

 

 

Operating profit

 

2,366

4,627

8,501

Adjustments for:

 

 

 

 

Depreciation of investment property, and property, plant & equipment

 

1,057

1,177

5,167

Profit on the sale of 'FOP' shares

 

-

(32)

(64)

Gain on loss of control of subsidiary

 

-

-

(4,827)

(Reversal of impairment loss)/impairment loss to investment properties

 

-

(32)

(32)

Impairment of goodwill on business acquisition

 

-

27

27

Loss on disposal of subsidiary

 

-

5

5

(Increase)/decrease in inventories

 

(48)

35

96

(Increase)/decrease in trade and other receivables

 

1,301

728

(1,285)

(Decrease)/increase in trade and other payables

 

(2,193)

(2,441)

(187)

Other non-cash adjustments

 

153

3

599

Cash generated from operations

 

2,636

4,097

8,000

Income taxes paid

 

(473)

(614)

(1,268)

Net cash flow from operating activities

 

2,163

3,483

6,732

 

 

 

 

 

Cash flow (used in)/from investing activities

 

 

 

 

Capital expenditure on investment properties

7

(777)

(586)

(1,531)

Proceeds from partial disposal of financial assets held at fair value through Other Comprehensive Income

8a

256

93

549

Purchase of property, plant and equipment

 

(6)

(4)

(36)

Proceeds from the sale of 'FOP' shares

 

-

149

2,630

Cash paid on acquisition of new subsidiaries

 

-

(527)

(527)

Cash and cash equivalents received on acquisitions of new subsidiaries

 

-

421

421

Cash disposed following deconsolidation of subsidiaries

 

-

-

(2,046)

Investment in funds

 

-

(464)

(468)

Proceeds from funds

8b

218

537

569

Investment in shares of new associates

 

-

(460)

(527)

Payment for Rights Issue 5PT

 

-

(138)

(138)

Interest received

4

42

47

114

Dividends from associates

8a

-

506

590

Distributions received

 

95

157

273

Net cash flow (used in)/from investing activities

 

(172)

(269)

(127)

 

 

 

 

 

Cash flow (used in)/from financing activities

 

 

 

 

Net repayment of shareholder loan in subsidiary

 

-

(121)

(121)

Proceeds from bank loan

 

1,769

-

-

Repayment of bank loans

 

(1,458)

(1,656)

(3,179)

Repayment of finance lease

 

(1,291)

(1,819)

(3,065)

Repayment from the sale of 'FOP' shareholder loan

 

-

21

326

Purchase of new treasury shares

 

(214)

(2,201)

(2,201)

Sale of shares held in Treasury

 

-

6

12

Exercise of share options

 

-

-

47

Interest paid

 

(656)

(1,419)

(2,180)

Dividends paid

 

(1,360)

(1,313)

(1,802)

Dividends paid to non-controlling interests

 

(30)

(22)

(23)

Net cash flow (used in)/from financing activities

 

(3,240)

(8,524)

(12,186)

 

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

 

(1,249)

(5,310)

(5,581)

Cash and cash equivalents at the beginning of period

 

9,738

15,315

15,315

Currency translation gains/(losses) on cash and cash equivalents

 

64

4

4

Cash and cash equivalents at the end of the period

 

8,553

10,009

9,738

 

NOTES TO THE ACCOUNTS

 

for the six months ended 30 September 2019

 

 

1.     Basis of Preparation

 

·     These interim consolidated financial statements for the six months ended 30 September 2019 have not been audited or reviewed and do not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006. They have been prepared in accordance with the Group's accounting policies as set out in the Group's latest annual financial statements for the year ended 31 March 2019 and are in compliance with IAS 34 "Interim Financial Reporting". These accounting policies are drawn up in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and as adopted by the European Union (EU).

 

·     The comparative figures for the financial year ended 31 March 2019 are not the full statutory accounts for the financial year but are abridged from those accounts prepared under IFRS which have been reported on by the Group's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified, did not include references to any matter to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

 

·     These interim financial statements were approved by a committee of the Board on 20 November 2019.

 

 

 

2.     Reconciliation of prior period to Proforma Income Statement and Proforma Statement of Comprehensive Income (6 months to 30 September 2018)

 

 

Original

Less:

Add:

Adjustment:

PROFORMA

 

6 months to 30 September 2018

'FOP' (per published segment)

Reinstate 'FOP' Asset Management fee elimination

'FOP' Contribution as an Associate

6 months to 30 September 2018

 

£'000

£'000

£'000

£'000

£'000

Revenue

11,157

4,070

269

-

7,356

Cost of sales

(2,452)

(983)

-

-

(1,469)

Gross profit

8,705

3,087

269

-

5,887

Profit on sale of 'FOP' shares

32

-

-

-

32

Write down/impairment loss to investment property

32

32

-

-

-

Impairment of goodwill on acquisition of subsidiary

(27)

-

-

-

(27)

Loss on disposal of subsidiary

(5)

-

 

-

(5)

Operating expenses

(4,110)

(575)

(269)

-

(3,804)

Operating profit

(4,627)

2,544

-

-

2,083

Share of results in associates

483

-

-

720

1,203

Investment income

157

-

-

-

157

Interest income

47

30

-

-

17

Interest expense

(1,495)

(792)

-

-

(703)

Profit before tax

3,819

1,782

-

720

2,757

Tax charge

 

 

 

 

 

-       Current tax

(752)

(240)

-

-

(512)

-       Deferred tax

(300)

5

-

-

(305)

 

1,052

(235)

-

-

(817)

Profit after tax for the period

2,767

1,547

-

720

1,940

Attributable to:

 

 

 

 

 

Owners of the parent

1,924

720

-

720

1,924

Non-controlling interests

843

827

-

-

16

 

2,767

1,547

-

720

1,940

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

Exchange differences on retranslation of foreign subsidiaries

(1,453)

(124)

-

-

(1,329)

Foreign exchange profit recycled to the Income Statement on disposal

-

-

-

-

-

Net gain/(loss) on financial assets at fair value through Other Comprehensive Income

-

-

-

-

-

Taxation

-

-

-

-

-

Total comprehensive income for the period

1,314

1,423

-

720

611

 

 

 

 

 

 

Total comprehensive income for the period attributable to:

 

 

 

 

Owners of the parent

595

720

-

720

595

Non-controlling interests

719

703

-

-

16

 

1,314

1,423

-

720

611

                 

 

Reconciliation for adjustment to Share of results in associates:

 

 

PROFORMA

 

 

6 months to 30 September 2018

 

£'000

£'000

Share of results in associates

 

483

Adjustments for:

 

 

'FOP' profit before tax for 6 months to 30 September 2018 (per Note 3 Segmental Analysis)

1,782

 

Tax expense attributable to 'FOP'

(235)

 

Profit after tax

1,547

 

Less:

 

 

'FOP' non-controlling interests for 6 months ended 30 September 2018

(827)

 

 

 

720

Share of results in associates on a Proforma basis

 

1,203

 

 

 

3.     Segmental Analysis 

 

Segment reporting for the six months to 30 September 2019

 

Direct costs incurred by First Property Group plc relating to the cost of the Board and the related share listing costs are shown separately under unallocated central costs. The staff incentive accrual is included under unallocated central costs but will be reallocated across all segments at the year end.

 

 

Fund Management Division

Group Properties Division

 

 

 

Property

fund management

Group properties

Associates and investments

Unallocated central overheads

TOTAL

 

£'000

£'000

£'000

£'000

£'000

Rental income

-

5,484

-

-

5,484

Service charge income

-

567

-

-

567

Asset management fees

1,779

-

-

-

1,779

Performance related fee income

247

-

-

-

247

Total revenue

2,026

6,051

-

-

8,077

 

 

 

 

 

 

Depreciation and amortisation 

(15)

(899)

-

-

(914)

 

 

 

 

 

 

Operating profit

1,003

2,492

-

(1,129)

2,366

 

 

 

 

 

 

Share of results in associates

-

-

1,139

-

1,139

Investment income

-

-

132

-

132

Interest income

-

36

-

6

42

Interest expense

-

(696)

-

-

(696)

Profit/(loss) before tax

1,003

1,832

1,271

(1,123)

2,983

 

 

 

 

 

 

Analysed as:

 

 

 

 

 

Underlying profit/loss before tax before adjusting for the following items:

748

2,853

1,271

(476)

4,396

 

 

 

 

 

 

Write down, impairment loss/reversals

-

-

-

-

-

Profit on the sale of 'FOP' shares

-

-

-

-

-

Goodwill write off on acquisition of associates

-

-

-

-

-

Group's share of revaluation losses on associates

-

-

-

-

-

Gain on loss of control of subsidiary

-

-

-

-

-

Performance related fee income

247

-

-

-

247

Depreciation on investment property

-

(879)

-

-

(879)

Staff incentives

-

-

-

(656)

(656)

Realised foreign currency (losses)/gains

8

(142)

-

9

(125)

Profit/(loss) before tax

1,003

1,832

1,271

(1,123)

2,983

 

Revenue for the six months to 30 September 2019 from continuing operations consists of revenue arising in the United Kingdom 12% (2018: 10%) and Central and Eastern Europe 88% (2018: 90%) and all relates solely to the Group's principal activities.

 

 

Segment reporting for the six months to 30 September 2018 (PROFORMA)

 

The proforma figures for the six months ended 30 September 2018 have included the removal of FOP as a separate segment and replaced it with a new segment entitled 'Associates and investments'. The new segment includes the percentage share of FOP had it been accounted for as an associate for the first six months 30 September 2018 together with the Group's interests in associates and distribution income from its other investments (both previously included within Group Properties). The intercompany elimination of FOP's asset management charge has been reversed for the proforma period.

 

 

Fund Management Division

Group Properties Division

 

 

 

Property

fund management

Group properties

Associates and investments

Unallocated central overheads

TOTAL

 

£'000

£'000

£'000

£'000

£'000

Rental income

-

5,020

-

-

5,020

Service charge income

-

515

-

-

515

Asset management fees

1,743

-

-

-

1,743

Performance related fee income

78

-

-

-

78

Total revenue

1,821

5,535

-

-

7,356

 

 

 

 

 

 

Depreciation and amortisation 

(19)

(964)

-

-

(983)

 

 

 

 

 

 

Operating profit

798

2,522

-

(1,237)

2,083

 

 

 

 

 

 

Share of results in associates

-

-

1,203

-

1,203

Investment income

-

-

157

-

157

Interest income

-

15

-

1

16

Interest expense

-

(702)

-

-

(702)

Profit/(loss) before tax

798

1,835

1,360

(1,236)

2,757

 

 

 

 

 

 

Analysed as:

 

 

 

 

 

Underlying profit/loss before tax before adjusting for the following items:

720

2,939

1,144

(498)

4,305

 

 

 

 

 

 

Write down, impairment loss/reversals

-

-

-

-

 

Profit on the sale of 'FOP' shares

-

32

-

-

32

Goodwill write off on acquisition of associates

-

(27)

-

-

(27)

Group's share of revaluation gains on associates

-

 

216

-

216

Gain on loss of control of subsidiary

-

(5)

-

-

(5)

Performance related fee income

78

-

-

-

78

Depreciation on investment property

-

(874)

-

-

(874)

Staff incentives

-

-

-

(735)

(735)

Realised foreign currency (losses)/gains

-

(230)

-

(3)

(233)

Profit/(loss) before tax

798

1,835

1,360

(1,236)

2,757

 

 

 

Segment reporting six months to 30 September 2018 (as originally reported)

 

 

Fund Management Division

Group Properties Division

 

 

 

Property

fund management

Group properties

Group fund properties ('FOP')

Unallocated central overheads

TOTAL

 

£000

£000

£000

£'000

£'000

Rental income

-

5,020

3,272

-

8,292

Service charge income

-

515

798

-

1,313

Asset management fees

1,474

-

-

-

1,474

Performance related fee income

78

-

-

-

78

Total Revenue

1,552

5,535

4,070

-

11,157

 

 

 

 

 

 

Depreciation and amortisation

(19)

(964)

(194)

-

(1,177)

 

 

 

 

 

 

Operating profit

798

2,522

2,544

(1,237)

4,627

 

 

 

 

 

 

Share of results in associates

-

483

-

-

483

Investment income

-

157

-

-

157

Interest income

-

15

31

1

47

Interest expense

-

(702)

(793)

-

(1,495)

Profit/(loss) before tax

798

2,475

1,782

(1,236)

3,819

 

 

 

 

 

 

Analysed as:

 

 

 

 

 

Underlying profit/(loss) before tax before adjusting for the following items:

720

3,363

1,798

(498)

5,383

 

 

 

 

 

 

Profit on the sale of 'FOP' shares

-

32

-

-

32

Goodwill on acquisition of associates

-

(27)

-

-

(27)

Group's share of revaluation gains on associates

-

216

-

-

216

Loss on loss of control of subsidiary

-

(5)

-

-

(5)

Reversal of impairment loss to investment properties

-

-

32

-

32

Performance related fee income

78

-

-

-

78

Depreciation on investment property

-

(874)

-

-

(874)

Staff incentives

-

-

-

(735)

(735)

Realised foreign currency (losses)/gains

-

(230)

(48)

(3)

(281)

Profit/(loss) before tax

798

2,475

1,782

(1,236)

3,819

 

 

 

 

Segment reporting year to 31 March 2019

 

 

Fund Management Division

Group Properties Division

 

 

 

Property

fund management

Group properties

Group fund properties ('FOP')

Unallocated central overheads

TOTAL

 

£'000

£'000

£'000

£'000

£'000

Rental income

-

9,658

3,272

-

12,930

Service charge income

-

1,748

798

-

2,546

Asset management fees

3,420

-

-

-

3,420

Performance related fee income

1,541

-

-

-

1,541

Total revenue

4,961

11,406

4,070

-

20,437

 

 

 

 

 

 

Depreciation and amortisation 

(37)

(1,991)

(200)

-

(2,228)

 

 

 

 

 

 

Operating profit

3,031

2,048

6,136

(2,714)

8,501

Share of results in associates

-

1,687

(87)

-

1,600

Investment income

-

273

-

-

273

Interest income

-

78

31

5

114

Interest expense

-

(1,387)

(793)

-

(2,180)

Profit/(loss) before tax

3,031

2,699

5,287

(2,709)

8,308

 

 

 

 

 

 

Analysed as:

 

 

 

 

 

Underlying profit/(loss) before tax before adjusting for the following items:

1,981

7,467

2,058

(1,012)

10,494

 

 

 

 

 

 

Write down, impairment (losses)/reversals

-

(3,043)

32

-

(3,011)

Profit on the sale of 'FOP' shares

-

64

-

-

64

Group's share of revaluation losses on associates

-

-

(764)

-

(764)

Gain on loss of control of subsidiary

-

606

4,221

-

4,827

Performance related fee income

1,541

-

-

-

1,541

Depreciation on investment property

-

(1,740)

-

-

(1,740)

Staff incentives

(476)

(190)

(212)

(1,669)

(2,547)

Realised foreign currency (losses)/gains

(15)

(465)

(48)

(28)

(556)

Total

3,031

2,699

5,287

(2,709)

8,308

 

 

 

 

 

 

Assets - Group

1,630

98,118

-

5,942

105,690

Share of net assets of associates

-

17,362

-

(308)

17,054

Liabilities

(398)

(74,254)

-

(1,806)

(76,458)

Net assets

1,232

41,226

-

3,828

46,286

 

 

4.     Interest Income/(Expense)

 

 

Six months ended

30 Sept 2019

Six months

ended

30 Sept 2018 PROFORMA

Six months

ended

30 Sept 2018

Year

ended

31 Mar 2019

 

£'000

£'000

£'000

£'000

Interest income - bank deposits

11

9

10

18

Interest income - other

31

8

37

96

Total interest income

42

17

47

114

 

 

Six months ended

30 Sept 2019

Six months

 ended

30 Sept 2018 PROFORMA

Six months

ended

30 Sept 2018

Year

ended

31 Mar 2019

 

£'000

£'000

£'000

£'000

Interest expense - property loans

(519)

(517)

(1,057)

(1,571)

Interest expense - bank and other

(29)

(24)

(32)

(49)

Finance charges on finance leases

(148)

(162)

(406)

(560)

Total interest expense

(696)

(703)

(1,495)

(2,180)

 

 

5.     Tax Expense

 

The tax charge is based on a combination of actual current and deferred tax charged at an effective rate that is expected to apply to the profits for the full year. 

 

 

Six months ended

30 Sept 2019

Six months

ended

30 Sept 2018 PROFORMA

Six months

ended

30 Sept 2018

Year

ended

31 Mar 2019

 

£'000

£'000

£'000

£'000

Current tax

(586)

(512)

(752)

(1,284)

Deferred tax

(27)

(305)

(300)

(659)

Total

(613)

(817)

(1,052)

(1,943)

 

 

 

 

 

6.     Earnings/NAV Per Share

 

The basic earnings per ordinary share is calculated on the profit on ordinary activities after taxation and after non-controlling interests on the weighted average number of ordinary shares in issue, during the period.

 

Figures in the table below have been used in the calculations.

 

 

Six months

ended

30 Sept 2019

Six months

ended

30 Sept 2018

Year

 ended

31 Mar 2019

Basic earnings per share

2.11p

1.73p

4.95p

Diluted earnings per share

2.07p

1.69p

4.85p

 

 

 

 

 

Number

Number

Number

Weighted average number of Ordinary shares in issue (used for basic earnings per share calculation)

111,318,482

111,398,291

111,353,468

Number of share options

2,610,000

2,700,000

2,610,000

Total number of Ordinary shares used in the diluted earnings per share calculation

113,928,482

114,098,291

113,963,468

 

 

 

 

 

£'000

£'000

£'000

Basic earnings

2,350

1,924

5,514

Notional interest on share options assumed to be exercised

8

4

8

Diluted earnings

2,358

1,928

5,522

 

 

 

Six months

ended

30 Sept 2019

Six months

ended

30 Sept 2018

Year

 ended

31 Mar 2019

Net assets per share

41.90p

39.39p

41.46p

Adjusted net assets per share

59.65p

62.21p

57.48p

 

Adjusted net assets per share are calculated using the fair value of all investments.
 

The following numbers have been used to calculate both the net assets and adjusted net assets per share:

 

 

 

Six months

ended

30 Sept 2019

Six months

ended

30 Sept 2018

Year

 ended

31 Mar 2019

 

Number

Number

Number

Number of shares in issue at period end

110,854,001

111,253,003

111,354,001

 

 

 

 

 

£'000

£'000

£'000

Net assets excluding Non-controlling interest

46,447

43,822

46,172

 

 

 

 

For adjusted net assets per share

Number

Number

Number

Number of shares in issue at period end

110,854,001

111,253,003

111,354,001

Number of share options assumed to be exercised

2,610,000

2,700,000

2,610,000

Total

113,464,001

113,953,003

113,964,001

 

 

 

 

For adjusted net assets per share

£'000

£'000

£'000

Net assets excluding Non-controlling interests

46,447

43,822

46,172

Investment properties at fair value net of deferred taxes

5,925

11,211

4,664

Inventories at fair value net of deferred taxes

5,837

4,922

5,416

Investments in associates and other financial investments

9,088

-

8,875

Other items

381

10,932

381

Total

67,678

70,887

65,508

 

 

7.     Investment Properties

 

 

Six months

ended

30 Sept 2019

Year

 ended

31 Mar 2019

Six months

 ended

30 Sept 2018

 

£'000

£'000

£'000

1 April

67,348

132,180

132,180

Capital expenditure

777

1,531

586

Disposals

-

(63,907)

-

Additions through acquisitions

-

5,406

5,406

Depreciation

(1,021)

(2,111)

(1,146)

Impairment loss to an investment property

-

(2,984)

-

Fair value adjustment

-

-

32

Foreign exchange translation

852

(2,767)

4

Total at end of period

67,956

67,348

137,062

 

Investment properties owned by the Group, and indirectly via FOP are stated at cost less depreciation and accumulated impairment losses.

 

8.     Investments in associates and other financial investments

 

 

Six months ended

30 Sept 2019

Year

ended

31 Mar 2019

Six months

ended

30 Sept 2018

a) Associates

£'000

£'000

£'000

 

 

 

 

Cost of investment at beginning of period

17,054

4,725

4,725

Additions

-

13,172

1,595

Disposals

-

(1,304)

-

Repayment of shareholder loan

(256)

(549)

(92)

Transfer from associate to subsidiary status

-

-

(212)

Share of associates profit after tax  

1,139

2,364

483

Impairment

-

(764)

-

Dividends received

-

(590)

(506)

Cost of investment at end of period

17,937

17,054

5,993

 

 

 

 

Six months ended

30 Sept 2019

Year

ended

31 Mar 2019

Six months

ended

30 Sept 2018

 

£'000

£'000

£'000

Investments in associates

 

 

 

5th Property Trading Ltd

1,361

1,288

1,192

Fprop Romanian Supermarkets Ltd

161

150

393

Fprop Galeria Corso Ltd

2,214

2,089

2,040

Fprop Krakow Ltd

1,379

1,308

1,279

Fprop Cluj Ltd

501

458

458

Fprop Phoenix Ltd

2,057

2,049

939

Fprop Opportunities plc (FOP)

10,572

10,020

-

 

18,245

17,362

6,301

Less: Group share of profit after tax withheld on sale of property to an associate in 2007 

(308)

(308)

(308)

Cost of investment at end of period

17,937

17,054

5,993

 

The withheld profit figure of £308,000 represents the removal of the percentage of intercompany profit resulting from the sale of the property in 2007 to 5th Property Trading Ltd (an associate). The figure will reduce when there is a reduction in First Property Group's stake in 5th Property Trading Ltd.

 

 

Six months ended

30 Sept 2019

Year

 ended

31 Mar 2019

Six months

ended

30 Sept 2018

 

£'000

£'000

£'000

b) Other financial investments

 

 

 

Cost of investment at 1 April

3,539

4,517

4,517

Additions

37

468

463

Repayments

(218)

(569)

(537)

Disposal

-

(900)

(900)

(Decrease)/increase in fair value during the period

(52)

23

-

Cost of investment at end of period

3,306

3,539

3,543

 

 

9.     Trade and Other Receivables

 

 

Six months ended

30 Sept 2019

Year

 ended

31 Mar 2019

Six months

ended

30 Sept 2018

 

£'000

£'000

£'000

Current assets

 

 

 

Trade receivables

1,128

1,408

2,124

Less provision for impairment of receivables

(320)

(297)

(912)

Trade receivables net

808

1,111

1,212

Other receivables 

2,910

2,836

2,459

Prepayments and accrued income 

1,172

1,971

1,043

 

4,890

5,918

4,714

Non-current assets

 

 

 

Other receivables

1,133

1,312

1,574

 

Other receivables include a balance of £1.13 million relating to the deferred consideration from the sale of an investment property located in Romania, which is receivable after one year. This has been discounted to reflect its current value.

 

 

10.   Trade and Other Payables

 

 

Six months ended

30 Sept 2019

Year

 ended

31 Mar 2019

Six months

ended

30 Sept 2018

 

£'000

£'000

£'000

Current liabilities

 

 

 

Trade payables 

2,296

2,798

2,841

Other taxation and social security  

938

855

827

Other payables and accruals 

1,343

3,235

1,426

Deferred income

346

190

533

 

4,923

7,078

5,627

 

 

 

11.   Financial Liabilities

 

 

Six months ended

 30 Sept 2019

Year

 ended

31 Mar 2019

Six months

ended

30 Sept 2018

 

£'000

£'000

£'000

a) Current liabilities

 

 

 

Loans repayable by subsidiary (FOP) to third party shareholders

-

-

1,356

Bank loans

4,079

3,780

4,951

Finance leases

2,670

2,549

3,750

 

6,749

6,329

10,057

 

 

 

 

b) Non-current liabilities

 

 

 

Bank loans

36,864

35,783

68,181

Finance leases

23,881

24,565

43,914

 

60,745

60,348

112,095

 

 

 

 

c) Total obligations under financial liabilities    

 

 

 

Repayable within one year

6,749

6,329

10,057

Repayable within one and five years

53,247

54,073

97,876

Repayable after five years

7,498

6,275

14,219

 

67,494

66,677

122,152

 

Loans repayable by Fprop Opportunities plc (FOP) to third party shareholders are unsecured and repayable on demand.

 

Six bank loans and one finance lease (all denominated in Euros) totalling £67.49 million (31 March 2019: £66.68 million) included within financial liabilities are secured against investment properties owned by the Group and one property owned by the Group shown under inventories. These bank loans and this finance lease are otherwise non-recourse to the Group's assets.

 

The interim results are being circulated to all shareholders and can be downloaded from the company's web site (www.fprop.com). Further copies can be obtained from the registered office at 32 St James's Street, London SW1A 1HD.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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