Information  X 
Enter a valid email address

West Pioneer Props (WPR)

  Print      Mail a friend       Annual reports

Monday 07 December, 2009

West Pioneer Props

Interim Results

RNS Number : 6515D
West Pioneer Properties Limited
07 December 2009
 



Press Release     

7 December 2009


West Pioneer Properties Limited

("West Pioneer" or the "Group")

Interim Results


West Pioneer, a developer and operator of shopping malls in west and southern India, announces its interim results for the half-year ended 30 September 2009.

Highlights

Highest ever footfall numbers and positive sales trends at Metro Junction Mall in Kalyan

Leasing improved from 52% in May 2009 to 65% in November 2009, putting the mall on track to be substantially leased by March 2010

Successful opening of multiplex and food court in the period

Successful entry into residential market in Kalyan with strong profit potential over 3-4 years

Active discussions with anchor tenants and Intercontinental Hotel Group for Nashik mall and hotel development

Balance sheet remains robust as a result of prudent cash management and low gearing with period end cash and cash equivalents of $4.2m

Continued growth in the Indian economy and organized retail provides opportunity to substantially increase gross leasable area owned or operated by West Pioneer


Commenting on the results, Amit Jatia, Chairman of West Pioneer, said: "Trading conditions in the half of the financial year have shown a genuine recovery from the difficulties experienced last year Throughout this period West Pioneer has benefited from its strategy of maintaining a high quality, focused portfolio of assets, whilst remaining open to opportunistic and attractive investment opportunitiesThis has resulted in our successful entry into the residential market and we have been most encouraged by initial sales of apartments in the first two towers at Kalyan.  Overall we remain confident in our ability to deliver value to shareholders from our investments in retail, hospitality and residential development."


-Ends-

  For further information:

Evolution Securities


Jeremy Ellis / Chris Clarke

Tel: +44 (0) 20 7071 4300


Media enquiries:

Abchurch Communications


George Parker / Mark Dixon

Tel: +44 (0) 20 7398 7719

[email protected]

www.abchurch-group.com 



Chairman's Statement

In the half-year ended 30 September 2009, West Pioneer achieved revenue and other income of $5.1m (2008: $2.8m), including property rentals and other operating income of $1.5m (2008$0.6m) reflecting a full period of operations in the lower ground and ground floor at the Kalyan mall. Profit before tax was $2.8m (2008: $1.1m) and basic earnings per share was $0.014 (2008: $0.005). Net assets at the period end were $59.6m, including cash and cash equivalents of $4.2m.  These figures reflect a positive property revaluation of $3.3 million, mainly as a result of progress in the residential development at Kalyan. Interest bearing loans and borrowings reduced slightly to $8.1m during the period, inclusive of debt repayments.

Kalyan

I am pleased to announce that after the recent slowdown seen in the Indian retail industry, West Pioneer has regained its growth momentum.  The adoption of a flexible approach to our development plans has seen us make a successful entry into the residential market in Kalyan, a suburb of Mumbai where our Metro Junction mall is also located.  Metro Junction is now recording its highest ever footfalls which are qualitatively superior to earlier footfall and feedback from our retailers indicate a significant increase in their sales as a confirmation of this.  Leasing has improved from 52% of the total gross lease area in May 2009 to 65% in November 2009, including some major new tenants The multiplex and the food court, which became operational in July and September of this year, have become major attractions for consumers.  The volume of current enquiries puts the mall on track to be substantially leased by March 2010.

Bookings for the first of the planned three residential towers, called Metro Residency, opened in mid-September this year and to date we have booked 136 out of the total 178 apartments available In light of this demand, we released for sale the first 80 apartments of the second tower in November and to date we have booked 41 apartments The booking prices have exceeded our initial expectations and imply for the Company a total potential booking sales value of $10.88m.  This would enable the Company to complete the construction of the first two towers without any requirement for external finance.  The ground break for constructing the first tower is scheduled for the end of December 2009 and we are well on track to meet this timetable.

Nashik and Aurangabad

As previously stated, we felt that it would be prudent to monitor retailer sentiment before commencement of any construction activity at Nashik or Aurangabad. In the case of Nashik, our development plan is a 350,000 sq ft mall to be completed in two phases, of which phase 1 will be approximately 180,000 sq ft with a 200 room hotel to be managed by the Intercontinental Hotel Group (IHG) under the Holiday Inn brand.  The balance of the land is being considered for a residential complex.  While the required permissions for this development plan by the local authorities are in progress, we are in parallel discussions with two large anchor tenants for the retail area.  Discussions with IHG have also commenced for the layout and design of the hotel.

Our current development plan for Aurangabad envisages a shopping mall and a hotel.  However, we propose to commence this development only after the Nashik plan has been implemented.

Outlook

The fundamentals of the Indian economy are strong and the GDP growth of 7.9% in the July-September quarter of this financial year indicates an annual GDP growth of around 7% in the financial year 2009-2010. We expect the positive correction in the retail sector to continue and strengthen over the coming months leading to a further expansion in the organized retail sector over the long term.

Against this background, the Group remains confident that its flexible approach will help it to realize its long term strategy in retail, hospitality and residential development.

Amit Jatia 

Chairman of West Pioneer Properties 

7 December 2009

  Consolidated Income Statement for the half-year ended 30 September 2009





For the six months ended 30th September




2009

2008




Unaudited  




$

$

Revenue 





Property Rentals 



802,836

 570,195 

Other operating income



745,591

-

Property revenue



1,548,427

570,195

Property Revaluation



 3,326,515

1,623,023

Finance income  



235,429

591,325

Total revenue 



 5,110,371

2,784,543






Expenses





Other income



56,988

37,273 

Direct operating expenses for rent-earning properties



 (742,316)

-

Administrative expenses



 (810,744)

(1,171,627)

Selling and distribution costs 



 (247,462)

(38,624)

Finance costs



(563,536)

 (505,285)

Total expenses



 (2,307,070)

(1,678,263)

Profit before tax



 2,803,302

1,106,280

Income tax expense



(1,684,814)

 (727,766)






Profit after tax 



 1,118,488

378,514






Attributable to:

Equity holders



 1,118,488

378,514






Earnings per share (attributable to equity holders)





Basic 



 0.0139

0.005

Diluted



 0.0139

0.005

  Consolidated Statement of Comprehensive Income for the half-year ended 30 September 2009




For the six months ended 30th September




2009

2008




Unaudited




$

$






Profit for the period



1,118,488

378,514






Exchange gain/(loss) on translation of foreign operations



4,530,854

(9,785,344)






Other comprehensive income (loss) for the period, net of tax



4,530,854

(9,785,344)






Total comprehensive income for the period, net of tax 



5,649,342

(9,406,830)






Attributable to:





Equity holders



5,649,342

(9,406,830)




5,649,342

(9,406,830)











  Consolidated Balance Sheet for the half-year ended 30 September 2009




30th September

31st  March



2009

2008

2009



Unaudited

Audited



$

$

$

Assets





 Non current assets 





 Property, plant and equipment 


 314,764

10,433,892

2,008,412

 Investment properties


 67,584,666

26,400,493

39,670,517

 Intangible assets 


22,717

14,918

24,872

 Prepayments


3,499,628

24,718,668

23,605,311

 Other financial assets


268,634

245,423

214,337

Advance income tax


297,883

39,444

218,064



 71,988,292

61,852,838

65,741,513

Current assets 





Inventories


 4,219,763

-

-

Investments - held for trading


1,041,132

2,826,861

1,126,832

Trade and other receivables 


1,177,714

758,878

 768,528

Prepayments 


122,037

46,985

32,686

Cash and short-term deposits


4,242,867

12,319,092

6,645,093



 10,803,513

15,951,816

8,573,139

Total assets 


 82,791,805

77,804,654

  74,314,652






Equity and liabilities 





Equity attributable to the equity holders





 Issued capital 


7,996,130

7,996,130

7,996,130

 Share premium 


 45,717,870

45,717,870

45,717,870

 Retained earnings 


 13,039,405

9,578,112

11,920,916

 Employee equity benefits reserve


582,789

407,588

515,474

 Foreign currency translation reserve


 (7,694,039) 

(6,214,270)

 (12,224,893)



 59,642,155

57,485,430

  53,925,497

 Non current liabilities 





 Interest bearing loans and borrowings 


6,154,425

8,032,251

6,516,618

 Other financial liabilities


786,905

653,764

663,681

 Other non financial liabilities


68,688

-

55,582

 Employee benefit liability


27,977

20,519

34,452

Deferred tax liability


9,467,886

4,985,365

7,196,150



16,505,881

13,691,899

14,466,483

 Current liabilities 





 Trade and other payables 


3,725,101

4,759,968

3,591,567

 Interest bearing loans and borrowings


1,965,279

1,795,234

1,629,155

 Other financial liabilities


891,519

72,123

651,610

 Other non financial liabilities


61,870

-

50,340



6,643,769

6,627,325

  5,922,672

Total liabilities


23,149,650

20,319,224

20,389,155

Total equity and liabilities


 82,791,805

77,804,654

 74,314,652


Consolidated Statement of Changes in Equity for the half-year ended 30 September 2009


Attributable to equity holders of the parent


Issued

Share

Retained

Employee equity benefits

Foreign currency translation

Total


capital

premium

earnings

reserve

 reserve

Equity


$

$

$

$

$

$

Balance as at 1st April 2009

7,996,130

45,717,870

11,920,916

515,474

(12,224,893)

53,925,497

 Profit for the period



 1,118,488



 1,118,488

Other comprehensive income( loss ) 





 4,530,854

 4,530,854

Total comprehensive income



1,118,488


 4,530,854

 5,649,342

Share based payment 




67,315


67,315

Balance as at 30th September 2009 (Unaudited)

7,996,130

45,717,870

 13,039,404

582,789

 (7,694,039)

 59,642,154






















Balance as at 1st April 2008  

7,996,130

45,717,870

9,199,598

-

3,571,074

66,484,672

Net Profit for the period

-

-

378,514

-

-

378,514

Other comprehensive income( loss )  

-

-

-

-

(9,785,344)

(9,785,344)

Total comprehensive income

-

-

378,514

-

(9,785,344)

(9,406,830)

Share based payment 

-

-

-

 407,586

-

 407,586

Balance as at 30th September 2008 (Unaudited)

7,996,130

45,717,870

9,578,112

 407,586

(6,214,270)

 57,485,428 


  Consolidated Cash Flow Statement for the half-year ended 30 September 2009

Interim consolidated cash flow statement

for the six months ended 30th September 2009



2009



2008



Unaudited



$

$

 Operating activities 



 Profit before tax 

2,803,302

1,106,280

 Adjustments to reconcile profit before tax to net cash flows 



 Depreciation and amortisation 

16,388

12,494

 Share based payments expense

67,315

407,588

Share issue expenses w/off

6,564

-

 (Increase) in fair value of investment properties 

(3,326515)

(1,623,023)

 Net gain on sale of investments 

(57)

(22,574)

 Dividend income 

(7,336)

(236,370)

(Increase)/decrease in fair value of investment

(157,303)

55,764

 Interest Income 

(62,938)

(354,955)

 Interest expense

559,680

449,521

(Increase) in other assets (non-current)

(84,935)

(7,375)

 (Increase) in prepayments (current)

(87,440)

(1,561,169)

(Increase) trade and other receivables

(343,367)

(556,242)

 (Decrease) in trade and other payables 

(352,272)

(1,586,001)

 Increase/(decrease) in other liabilities current

187,531

(81,544)

 Increase in other liabilities non current

69,082

322,629

 Income tax paid 

(13,487)

(10,774)

 Net cash flows used in operating activities 

(725,788)

(3,685,751)




 Investing activities 



 Proceeds from sale of held-for-trading investments 

409,745

8,925,341

 Purchase of property, plant and equipment & intangible assets

(6,034)

(23,977)

 Purchase of held-for-trading investments

(44,878)

(264,509)

 (Increase) in prepayments

(497,144)

(2,612,179)

 Increase/(decrease) in trade & other payables relating to construction costs

-

(339,596)

 Investment in construction costs

(1,058,371)

(2,249,136)

 Dividend income

-

236,370

 Interest received

63,192

354,955

 Net cash flows (used in)/ from investing activities

(1,133,490)

4,027,269




 Financing activities



 Transaction costs of issue of shares

(6,564)

     -

 Proceeds from borrowings

203,993

702,235

 Repayment of borrowings

(866,968)

(994,834)

 Interest paid

(559,680)

(449,521)

 Net cash flows (used in) financing activities

(1,229,219)

(742,120)

 Net (decrease) in cash and cash equivalents

(3,088,496)

(400,602)

 Net foreign exchange difference

590,927

(2,007,241)

Cash and cash equivalents at 1st April 2009

5,443,352

13,320,738

Cash and cash equivalents at 30th September 2009

2,945,783

10,912,895




This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR FSEFLMSUSEIE

a d v e r t i s e m e n t