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West Pioneer Props (WPR)

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Tuesday 21 December, 2010

West Pioneer Props

Interim Results

RNS Number : 3194Y
West Pioneer Properties Limited
21 December 2010
 



Press Release

21 December 2010

 

West Pioneer Properties Limited

("West Pioneer" or the "Company")

Interim Results

West Pioneer (AIM:WPR), a leading developer and operator of retail-led, mixed use developments in west and southern India, announces its interim results for the 6 months ended 30 September 2010.

Highlights

·    

Continuing strong footfall numbers and positive sales trends at Metro Junction Mall in Kalyan, with footfall doubling year on year

·    

Leasing at approximately 65 per cent, however Kalyan remains operationally profitable and generating surplus cash

·    

Continuing focus on quality of tenants and tenant mix to position the mall as a leading value and lifestyle destination

·    

Residential development at Kalyan progressing well with over 70 per cent. of units sold and prices stabilising at approximately 38 per cent. higher than launch price

·    

Pre-launch bookings opened for commercial space at Metro Plaza

·    

Design of 300,000 sq. ft. Nashik mall in final stages with considerable progress made in pre-leasing negotiations with anchor tenants. Ground break expected to occur in H1 2011

·    

Cash and cash equivalents of $1.68 million expected to continue to provide sufficient resources to support the Company's ongoing operations

·    

Management actively exploring opportunities to generate additional value in the retail, residential and commercial spaces


Commenting on the results, Amit Jatia, Chairman of West Pioneer, said:
"Despite recent delays to some of West Pioneer's projects, we remain confident in our ability to deliver value to shareholders from retail, hospitality, residential and commercial development. West Pioneer expects significant progress in several of its key projects within the next six months. At Kalyan ourkey objective remains to attract the very best anchor tenants for the remaining mall spaces and on the best terms. We continue to gain encouragement from our successful entry into the residential market and initial sales of apartments in the first two towers at Kalyan have continued. 

 

-Ends-

For further information:

Evolution Securities


Jeremy Ellis / Chris Clarke

Tel: +44 (0) 20 7071 4300

 

Media enquiries:

Abchurch Communications


Mark Dixon / Claire Dickinson

Tel: +44 (0) 20 7398 7729

mark.dixon@abchurch-group.com

www.abchurch-group.com

 



Chairman's Statement

In the period ended 30 September 2010, West Pioneer achieved revenue and other income of $2.2m (2009: $5.2m), including property rentals and other operating income of $2.0m (2009: $1.5m). Profit before tax was $(0.4)m (2009: $2.8m) and basic earnings per share was $(0.007) (2009: $0.014). Net assets at the year end were $63.0m (2009: $59.6m), including cash and cash equivalents of $1.68m (2009: $4.2m). Interest bearing loans and borrowings reduced from $8.12m to $6.87m during the period, inclusive of debt repayments.

Kalyan

The Metro Junction mall in Kalyan continues the trend of increasing footfalls with visitors arriving from beyond the municipal limits of Kalyan-Dombivali Municipal Corporation, the main catchment area of the mall. Total footfall in the first half of the year stood at 3.87 million. This success was due to a combination of factors including a discount sale period, the opening of a new electronics store and through a strategic focus on operational efficiency.

The economic climate for retailers has also improved over the past nine months. Confidence appears to have returned to the sector and many brands are showing interest in opening new stores in the mall. Leasing remains at 65 per cent, however further discussions with certain key anchor and vanilla retailers for the remaining vacant units are in progress. The Company continues to focus on maximising rental values and the quality of tenants and tenant mix rather than short-term occupancy.

Operational efficiencies implemented at the mall in the previous financial year have continued and the mall generated more than $1 million of net operating income during the six month period and remains operationally profitable.

Construction of the first two residential towers is progressing well. The selling price of the apartments has stabilised at 3700 rupees per sq. ft. and 249 apartments have been sold to date. The total expected sales value of these apartments following completion amounts to approximately $19 million, which is significantly in excess of the break-even level of the two towers.

The Company is nearing completion on the design of Metro Plaza, the commercial office space development at Kalyan. Response to pre-launch booking indicates customers' high levels of interest and a significant premium per square foot to the residential space.

Nashik and Aurangabad

Development of the Nashik site is progressing according to plan and the 300,000 sq. ft. mall has been met with a good response from potential tenants.  The Company is expecting to commence construction by the end of June 2011.  Pre-leasing discussions are in advanced stages with prospective anchor tenants for the mall.  There are also plans for a 200 room 3/4 star hotel to be managed by the InterContinental Hotels Group ("IHG").

Development of Aurangabad will follow development of the Nashik site. The plans include 300,000 sq ft of retail space, commercial units and a hotel with an overall development envisaged similar to that of Kalyan. A management agreement with IHG remains in place for the development of a Holiday Inn hotel.

Outlook

Trading conditions over the past six months have remained stable and the Company is now in a good position to progress on its priorities of maximising rental values, attracting quality brands and sourcing a desirable tenant mix across its projects at Kalyan and Nashik. West Pioneer remains confident that continued progress will be made in these areas in the next six months.

Amit Jatia

Chairman

 

21 December 2010



WEST PIONEER PROPERTIES LIMITED

 

UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

FOR THE SIX MONTH PERIOD ENDED 30th SEPTEMBER 2010



Interim Consolidated Income Statement

for the six month period ended 30th September 2010

 




For the six months ended 30th September




2010

2009




Unaudited  




$

$











1,037,680

802,836



1,008,497

745,591



2,046,177

1,548,427



-

 3,326,515



 189,862

 292,417



 2,236,039

  5,167,359















(1,028,378)

(742,588)



(791,891)

(910,885)



(294,968)

(147,048)



(513,111)

(563,536)

Total expenses



 (2,628,348)

  (2,364,057)

(Loss) / Profit  before tax



 (392,309)

 2,803,302



(163,373)

(1,684,814)







 (555,682)

 1,118,488







 (555,682)

 1,118,488















(0.0069)

 0.0139



(0.0069)

 0.0139

 



Interim consolidated statement of comprehensive income   

for the six month period ended 30th September 2010

 




For the six months ended 30th September




2010

2009




Unaudited




$

$






(Loss) / Profit for the period



 (555,682)

1,118,488






Exchange gain on  translation of foreign operations



190,724

4,530,854






Other comprehensive income for the period, net of tax



190,724

4,530,854






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



 (364,958)

5,649,342






Attributable to:





Equity holders



 (364,958)

5,649,342




 (364,958)

5,649,342

 



Interim consolidated statement of financial position

 As at 30th September 2010

 



30th September

31st  March



2010

2009

2010



Unaudited

Audited



$

$

$

Assets





 Noncurrent assets





 Property, plant and equipment


397,008

 314,764

371,496

 Investment properties


73,458,395

 67,584,666

73,059,060

 Intangible assets


17,316

22,717

21,984

 Prepayments


3,273,699

3,499,628

3,276,953

 Other financial assets


312,820

268,634

306,572

Advance income tax


454,320

297,883

355,305



77,913,558

 71,988,292

77,391,370

Current assets





Inventories


6,524,397

 4,219,763

5,382,042

Investments - held for trading


 636,888

1,041,132

639,615

Trade and other receivables


1,459,863

1,177,714

1,450,130

Prepayments


59,369

122,037

70,450

Cash and short-term deposits


1,676,822

4,242,867

3,966,039



 10,357,339

 10,803,513

11,508,276

Total Assets


 88,270,897

 82,791,805

88,899,646






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


 12,650,260

 13,039,405

13,192,220

 Employee equity benefit reserve


 663,133

582,789

650,152

 Foreign currency translation reserve


(4,041,978)

 (7,694,039)

(4,232,702)



 62,985,415

 59,642,155

63,323,670

 Noncurrent liabilities





 Interest bearing loans and borrowings


4,733,699

6,154,425

5,662,879

 Advance from sale of residential units


3,567,573

-

2,296,616

 Other financial liabilities


1,105,199

786,905

1,056,036

 Other non financial liabilities


73,889

68,688

88,755

 Employee benefit liability


49,193

27,977

48,113

 Deferred tax liability


10,395,746

9,467,886

10,199,789



19,925,299

16,505,881

19,352,188

 Current liabilities





 Trade and other payables


2,298,928

3,725,101

3,421,657

 Interest bearing loans and borrowings


2,139,436

1,965,279

1,931,473

 Other financial liabilities


904,424

891,519

828,629

 Other non financial liabilities


17,395

61,870

42,029



5,360,183

6,643,769

6,223,788

Total Liabilities


25,285,482

23,149,650

25,575,976

Total Equity and Liabilities


 88,270,897

 82,791,805

88,899,646

 


Interim consolidated statement of changes in equity

for the six months ended 30th September 2010

 


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 2010

7,996,130

45,717,870

  13,192,220

       650,152

    (4,232,702)

   63,323,670

 Loss for the period

                 -  

                 - 

 (555,682)

                 -  

 -

 (555,682)

Other comprehensive income

                 -  

                 -  

                 -  

                 -  

          190,724

          190,724

Total comprehensive loss

                 -  

                 -  

       (555,682)

                 -  

        190,724

        (364,958)

Share based payment

                 -  

                 -  

                 -  

           26,703

                  -  

            26,703

Transfer to retained earnings on options forfeited

                 -  

                 -  

           13,722

         (13,722)

                  -  

                  -  

Balance as at 30th September 2010 (Unaudited)

7,996,130

45,717,870

   12,650,260

       663,133

    (4,041,978)

    62,985,415






















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





 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

 


Interim consolidated cash flow statement

for the six months ended 30th September 2010



 

                                                                                         

 

2010

 

2009


Unaudited


$

$

 Operating activities



 (Loss) / Profit before tax                          

(392,309)

2,803,302

 Adjustments to reconcile profit before tax to net cash flows



 Depreciation and amortisation

17,650

16,388

 Share based payments expense

26,703

67,315

 Share issue expenses w/off

-

6,564

 (Increase) in fair value of investment properties

-

(3,326,515)

 (Increase) in value of investments held-for-sale

(57,997)

(157,303)

 Net (Gain) on sale of investment

-

(57)

 Dividend income

(5,089)

(7,336)

 Interest Income

(44,552)

(62,938)

 Interest expense

507,918

559,680

 (Increase) in other assets (non-current)

(5,148)

(84,935)

 Increase in other liabilities (non current)

1,258,837

69,082


1,306,013

(116,753)




 Working Capital adjustments



 (Increase) in prepayments (current)

(264)

(87,440)

 Decrease /(Increase) in trade and other receivables

1,352,024

(343,367)

 (Increase) in Inventories - Residential

(1,080,482)

-

 (Increase) in Inventories - Mall

(13,316)

-

 Increase / (Decrease)  in trade and other payables

83,932

(352,272)

 (Decrease) in trade and other payables (current)

(1,096,268)

-

 (Decrease) / Increase in other liabilities (current)

(51,212)

187,531

 Income tax paid

(98,837)

(13,487)

 Net cash flows from/ (used) in operating activities

401,590

(725,788)




 Investing activities



 Proceeds from sale of held-for-trading investments

85,079

409,745

 Purchase of property, plant and equipment and intangible assets

(2,516)

(6,034)

 Purchase of held-for-trading investments

-

(44,878)

 (Increase) in prepayments

-

(497,144)

 Capital expenditure in completed Investment Property

(110,123)

-

 Expenditure on investment property under construction

(67,087)

(1,058,371)

 Dividend income

3,465

-

 Interest received

19,913

63,192




 Net cash flows (used in) investing activities

(71,269)

(1,133,490)




 Financing activities



 Transaction costs of issue of shares

-

(6,564)

 Proceeds from borrowings

216,456

203,993

 Repayment of  borrowings

(940,138)

(866,968)

 Interest paid

(507,918)

(559,680)

 Net cash flows (used in) financing activities

(1,231,600)

(1,229,219)

 

Net (decrease) in cash and cash equivalents

 

(901,279)

 

(3,088,496)

Net foreign exchange difference

4,679

590,927

Cash and cash equivalents at 1st April 2010

2,573,422

5,443,352

Cash and cash equivalents at 30th September 2010

1,676,822

2,945,783

 


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