REG - Local Shopping REIT - Half Yearly Report <Origin Href="QuoteRef">LSR.L</Origin> - Part 2

Alina HoldingsAnnouncement

15/07/2015 18:43

- Part 2: For the preceding part double click  ID:nRSU8458Na 

and liabilities were deemed to be held for sale as part
of this process: 
 
 As at 31 March 2014                    Total     
 £000                                   
 Assets                                           
 Trade and other receivables            1,656     
 Investment properties held for sale    78,178    
 Cash                                   3,520     
 Total Assets held for sale             83,354    
                                                  
 Liabilities                                      
 Interest bearing loans and borrowings  (67,709)  
 Trade and other payables               (2,729)   
 Finance lease liabilities              (250)     
 Total Liabilities held for sale        (70,688)  
                                                  
 Total net assets held for sale         12,666    
 
 
11. Earnings per share 
 
Basic earnings per share 
 
The calculation of basic earnings per share was based on the profit
attributable to ordinary shareholders and a weighted average number of
ordinary shares outstanding, calculated as follows: 
 
Profit attributable to ordinary shares: 
 
                                    Six months ended  Six months ended  Year ended         
                                    31 March 2015     31 March 2014     30 September 2014  
                                    £000              £000              £000               
 Profit for the financial period    108               1,750             1,206              
                                                                                           
 
 
Weighted average number of shares: 
 
                                                                                                       
                                             31 March 2015  31 March 2014  30 September 2014  
                                                                                              
                                             Number         Number         Number             
                                             000            000            000                
 Issued ordinary shares                                     91,670         91,670             91,670   
 Shares held by EBT                                         (1,096)        (1,096)            (1,096)  
 Treasury shares                                            (9,164)        (9,164)            (9,164)  
 Weighted average number of ordinary shares                 81,410         81,410             81,410   
                                                                                                       
 
 
Diluted earnings per share 
 
There is no difference between the basic and diluted earnings per share. 
 
12. Net asset value (NAV) 
 
The number of shares used to calculate net asset value per share is as
follows: 
 
                                        31 March 2015  31 March 2014  30 September 2014  
                                                                      
                                Number  Number         Number         
                                000     000            000            
 Number of shares in issue              91,670         91,670         91,670             
 Less: shares held in Treasury          (9,164)        (9,164)        (9,164)            
                                        82,506         82,506         82,506             
                                                                                         
 
 
                                                                                                     
                                            31 March 2015  31 March 2014  30 September 2014  
                                            £000           £000           £000               
 Net assets per Consolidated Balance Sheet                 34,940         35,377             34,832  
                                                                                                     
 Net asset value per share                                 £0.42          £0.43              £0.42   
                                                                                                     
 
 
Adjusted net asset value per share: 
 
                                                                                                          
                                                 31 March 2015  31 March 2014  30 September 2014  
                                                 £000           £000           £000               
 Net assets per Consolidated Balance Sheet                      34,940         35,377             34,832  
 Fair value of derivative financial instruments                 3,411          5,034              4,022   
                                                                38,351         40,411             38,854  
                                                                                                          
 Adjusted net asset value per share                             £0.47          £0.49              £0.47   
                                                                                                          
 
 
13. Derivative financial instruments 
 
Derivative financial instruments held by the Group are interest rate swaps
used to manage the Group's interest rate exposure. These are shown in the
Consolidated Balance Sheet as follows: 
 
                                                                 Fair value  Movements in  Fair value  
                                                   at 1 October  Income      at 31 March   
                                                   2014          Statement   2015          
                                                   £000          £000        £000          
 Non current liabilities                                         (1,634)     (555)         (1,079)     
 Current liabilities                                             (2,388)     (56)          (2,332)     
 Net liabilities                                                 (4,022)                   (3,411)     
 Amount credited to Consolidated Income Statement                            (611)                     
                                                                                                       
 
 
 Notional  Effective date  Maturity date      Rate  Value at       Movements in Income Statement  Value at  
 value     payable on      30 September 2014  £0    31 March 2015  
 of swap   fixed leg                                               
 £000      %               £000               £000  £000           
 20,577    16-Jul-07       31-Jan-17          4.85  (1,658)        (168)                          (1,490)   
 22,500    30-Apr-13       29-Jul-16          5.05  (1,612)        (302)                          (1,310)   
 10,500    30-Apr-13       29-Jul-16          5.05  (752)          (141)                          (611)     
                                                                                                            
                                                    (4,022)        (611)                          (3,411)   
                                                                                                            
 
 
The derivative financial instruments included in the above tables are stated
at their fair value based on quotations from the Group's bank. 
 
The Group does not speculate in financial instruments, it only uses them to
limit its exposure to interest rate fluctuations. The Group's policy is to
hedge between 60% and 100% of its interest rate exposure. At 31 March 2015:
83% (30 September 2014: 83% and 31 March 2014: 92%) of the Group's debt was
fixed. 
 
14. Related parties 
 
There have been no transactions with related parties which have materially
affected the financial position or performance of the Group during the current
or previous period nor have there been any changes in related party
transactions which could have a material effect on the financial position or
performance of the Company during the first six months of the current
financial year. 
 
15. Significant contracts 
 
With effect from 22 July 2013 the Company entered into a management agreement
with Internos Global Investors Limited ("Internos"). Under this agreement the
Company pays to Internos: 
 
1.  An annual management fee of 0.70% of the gross asset value of the
portfolio, subject to a minimum fee of £1m in each of the first two years,
£0.95m for the third year and £0.9m for the fourth year; 
 
2.  An annual performance fee of 20% of the recurring operating profits above
a pre-agreed target recurring profit; 
 
3.  Fees for property sales as follows: up to £50m nil; £50m - £150m 0.5% of
sales; over £150m 1.5% of sales 
 
4.  A terminal fee of 5.7% of cash returned to the Company's shareholders in
excess of 36.1 pence per share per annum from the Effective Date outside of
dividend payments (the "Terminal Fee Hurdle"). The Terminal Fee Hurdle rises
by 8% per annum after the first year but reduces on a pro-rata daily basis
each time equity is returned to shareholders outside of dividend payments from
recurring operating profits. 
 
Under the terms of the agreement Internos received a fee of £509,000 
(September 2014 - £1,319,000 March 2014 - £589,000). 
 
This information is provided by RNS
The company news service from the London Stock Exchange