REG - British Land Co PLC - Final Results - Part 3 <Origin Href="QuoteRef">BLND.L</Origin> - Part 4
15/07/2015 17:34
- Part 4: For the preceding part double click ID:nRSN1268Nc
Gross rental and related income 214 94 60 97
Net rental and related income 164 75 60 92
Other underlying expenditure (1) - - (1)
Net interest payable (88) (38) (28) (50)
Underlying profit before taxation 75 37 32 41
Surplus on revaluation 664 161 14 17
Other non-underlying (expenditure) income - - (3) (4)
Profit on ordinary activities before taxation 739 198 43 54
Deferred taxation - - - 9
Profit on ordinary activities after taxation 739 198 43 63
Other comprehensive (expenditure) income (21) (7) 4 6
Total comprehensive income 718 191 47 69
British Land share of total comprehensive income 359 96 24 35
British Land share of distributions payable 15 2 42 37
Summarised balance sheets £m £m £m £m
Investment and trading properties 4,209 1,719 1,039 363
Current assets 5 5 3 -
Cash and deposits 272 32 25 6
Gross assets 4,486 1,756 1,067 369
Current liabilities (82) (31) (26) (5)
Bank and securitised debt (2,142) (721) (478) (184)
Other non-current liabilities (64) (24) - (20)
Gross liabilities (2,288) (776) (504) (209)
Net external assets 2,198 980 563 160
British Land share of net assets 1,099 490 282 80
1 Tesco joint ventures include BLT Holdings (2010)
Limited, as at 31 March 2015. In the prior year,
this also included Tesco British Land Property
Partnership (TBL), Tesco BL Holdings Limited
(TBLH), Shopping Centres Limited and the Tesco Aqua
Limited Partnership. During the year, the Shopping
Centres venture was acquired by TBLH with no net
impact on the Group accounts. On 19 March 2015,
TBLH and TBL became subsidiaries of the Group (note
18). The income statement results for these
ventures for the period up to and including 19
March 2015 are included within the table above.
Thereafter the results of TBLH and TBL are included
within the Group's income statement. Also on 19
March 2015 the Group disposed of its interest in
Tesco Aqua Limited Partnership to Tesco PLC. The
income statement results for this venture for the
period up to and including 19 March 2015 are shown
within this table. 2 USS joint ventures include the
Eden Walk Shopping Centre Limited Partnership and
the Fareham Property Partnership. 3 Hercules Unit
Trust joint ventures and sub-funds includes 50% of
the results of Deepdale Co-Ownership Trust,
Gibraltar Limited Partnership and Valentine Co
-Ownership Trust and 41.25% of Birstall Co
-Ownership Trust. The balance sheet shows 50% of
the assets of these joint ventures and sub-funds.
On 23 February 2015 Speke Unit Trust (Speke) became
a subsidiary of the Group (note 18). The income
statement results for Speke for the period up to
and including 23 February 2015 are included within
these numbers. Thereafter, Speke's results are
included within the Group's income statement. 4
Included in the column headed 'Other joint ventures
and funds' are contributions from the following: BL
Goodman Limited Partnership, BL Gazeley Limited,
The Aldgate Place Limited Partnership, Bluebutton
Property Management UK Limited, BL Residential
Limited Partnership, City of London Office Unit
Trust and Pillar Retail Europark Fund (PREF). The
Group's ownership share of PREF is 65%, however as
the group is not able to exercise control over
significant decisions of the fund, the Group equity
accounts for its interest in PREF.
The Southgate Limited Partnership USS Leadenhall Hercules Unit Trust Other TOTAL TOTAL
Joint Holding Co joint ventures joint ventures Group share
Ventures 2 (Jersey) Ltd and sub-funds 3 and funds 4 2015 2015
Universities Superannuation Scheme Oxford
Aviva Investors Group PLC Properties
Shopping Centres Shopping Centres City Offices Retail
Leadenhall Parks
50% 50% 50% Various
£m £m £m £m £m £m £m
14 11 15 53 15 573 289
13 8 6 47 12 477 240
(1) - - - (3) (6) (4)
(1) - - (5) (2) (212) (107)
11 8 6 42 7 259 129
26 25 201 63 - 1,171 589
- - - (1) 16 8 6
37 33 207 104 23 1,438 724
- - - - (2) 7 2
37 33 207 104 21 1,445 726
- - - (1) (10) (29) (13)
37 33 207 103 11 1,416 713
19 17 104 52 7 713
4 4 - 37 - 141
£m £m £m £m £m £m £m
262 235 770 706 140 9,443 4,719
2 - 2 2 23 42 25
2 9 4 11 21 382 192
266 244 776 719 184 9,867 4,936
(4) (4) (4) (7) (65) (228) (119)
- - - (127) - (3,652) (1,827)
(28) - - (1) (44) (181) (89)
(32) (4) (4) (135) (109) (4,061) (2,035)
234 240 772 584 75 5,806 2,901
117 120 386 283 44 2,901
These financial statements include the results and financial
position of the Group's interest in the Tesco British Land
Property Partnership and the Tesco Aqua Limited Partnership
(refer to footnote 1), the Scottish Retail Property Limited
Partnership, the Fareham Property Partnership, the Aldgate Place
Limited Partnership, the BL Goodman Limited Partnership,
Auchinlea Partnership, the Gibraltar Limited Partnership and the
BL Residential Limited Partnership. Accordingly, advantage has
been taken of the exemptions provided by Regulation 7 of the
Partnerships and Unlimited Companies (Accounts) Regulations
1993, not to attach the partnership accounts to these financial
statements.
The borrowings of joint ventures and funds and their
subsidiaries are non-recourse to the Group. All joint ventures
are incorporated in the United Kingdom, with the exception of
Broadgate REIT Limited, the Eden Walk Shopping Centre Unit Trust
and Leadenhall Holding Co (Jersey) Limited which are
incorporated in Jersey. Of the funds, the Hercules Unit Trust
(HUT) joint ventures and sub-funds are incorporated in Jersey
and PREF in Luxembourg.
The commitments and contingent liabilities in respect of joint
ventures are detailed in note 17.
Operating cash flows of
joint ventures and
funds (Group share)
2015 2014
£m £m
Rental income received 234 274
from tenants
Fees and other income 1 -
received
Operating expenses paid (26) (33)
to suppliers and
employees
Cash generated from 209 241
operations
Interest paid (114) (135)
Interest received 2 1
UK corporation tax paid (7) (6)
Foreign tax paid (2) (3)
Cash inflow from 88 98
operating activities
Cash inflow from
operating activities
deployed as:
Surplus cash retained 15 35
within joint ventures
and funds
Revenue distributions 73 63
per consolidated
statement of cash flows
Revenue distributions
split between
controlling and non
-controlling interests
Attributable to non 7 -
-controlling interests
Attributable to 66 63
shareholders of the
Company
10. Other
investments
2015 2014
Investment held for trading Loans, receivables and other Total Investment held for trading Loans, receivables and other Total
£m £m £m £m £m £m
At 1 April 2014 92 170 262 - 76 76
Additions - 113 113 83 104 187
Disposals - (2) (2) - (10) (10)
Revaluation 7 - 7 9 - 9
Depreciation - (1) (1) - - -
At 31 March 2015 99 280 379 92 170 262
The investment held for
trading comprises
interests as a trust
beneficiary. The
trusts' assets comprise
freehold reversions in
a pool of commercial
properties, comprising
Sainsbury's
superstores. The
investment has been
categorised as Level 3
in the fair value
hierarchy (see note 8).
Fair value of the
interest has been
determined by the
Directors, supported by
an external valuation
from CBRE. The
superstore assets are
subject to the same
assumption ranges and
sensitivities disclosed
in note 8.
Included within the
balance as at 31 March
2015 is £243m (2014:
£145m) in relation to a
loan to the Broadgate
joint venture, which is
carried at amortised
cost.
11. Debtors
2015 2014
£m £m
Trade and other debtors 16 35
Prepayments and accrued 4 6
income
20 41
Included within this
balance is deferred
consideration of £1m
(2014: £1m) arising on
the sale of investment
properties for which
the timing of the
receipt is contingent
and therefore may fall
due after one year.
Trade and other debtors
are shown after
deducting a provision
for bad and doubtful
debts of £16m (2014:
£15m). The charge to
the income statement
was £1m (2014: £nil).
The Directors consider
that the carrying
amount of trade and
other debtors is
approximate to their
fair value. There is
no concentration of
credit risk with
respect to trade
debtors as the Group
has a large number of
customers who are
paying their rent in
advance.
12. Creditors
2015 2014
£m £m
Trade creditors 61 85
Amounts owed to joint ventures - 4
Other taxation and social security 31 21
Accruals and deferred income 169 153
261 263
Trade creditors are interest-free and have settlement dates within one year. The Directors consider that the carrying amount of trade and other creditors is approximate to their fair value.
13. Other non-current liabilities
2015 2014
£m £m
Other creditors 32 -
Head leases 41 32
Net pension liabilities 6 -
79 32
14. Deferred tax liabilities
Deferred tax is calculated on temporary differences under the liability method using a tax rate of 20% (2013/14: 20%).
The movement on deferred tax is as shown below:
1 April Expensed to Credited to 31 March
2014 income equity 2015
£m £m £m
Property and investment revaluations - 5 - 5
Other timing differences 4 18 (15) 7
4 23 (15) 12
Under the REIT regime development properties which are sold within three years of completion do not benefit from tax exemption. At 31 March 2015 the value of such properties is £1,008m (2014: £455m) and if these properties were to be sold and tax exemption was not available the tax arising would be £66m (2014: £34m).
Deferred tax assets of £38m (2014: £39m) arising on losses from previous years have not been recognised in the financial year.
15. Net debt
2015 2014
Footnote £m £m
Secured on the assets of the Group
9.125% First Mortgage Debenture Stock 2020 1.1 35 36
6.125% First Mortgage Debenture Stock 2014 1.1 - 44
5.264% First Mortgage Debenture Bonds 2035 355 344
5.0055% First Mortgage Amortising Debentures 2035 99 100
5.357% First Mortgage Debenture Bonds 2028 344 327
6.75% First Mortgage Debenture Bonds 2020 176 176
Bank loans 1.2; 1.3 963 523
Loan notes 2 2
1,974 1,552
Unsecured
5.50% Senior Notes 2027 98 98
6.30% Senior US Dollar Notes 2015 2 104 92
3.895% Senior US Dollar Notes 2018 3 28 25
4.635% Senior US Dollar Notes 2021 3 158 136
4.766% Senior US Dollar Notes 2023 3 99 83
5.003% Senior US Dollar Notes 2026 3 64 52
3.81% Senior Notes 2026
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