REG - Caledonian Trust PLC - Final Results <Origin Href="QuoteRef">CNN.L</Origin> - Part 3

Caledonian TrustAnnouncement

24/12/2014 07:10

- Part 3: For the preceding part double click  ID:nRSX6576Ab 

  
 Profit for the year  -        -           -        164       164     
                      ______   ______      ______   ______    ______  
 At 30 June 2014      2,357    175         2,745    12,068    17,345  
                      ======   ======      ======   ======    ======  
                                                                      
 At 1 July 2012       2,377    175         2,745    12,007    17,304  
 Share buyback        (20)     -           -        (41)      (61)    
 Loss for the year    -        -           -        (62)      (62)    
                      ______   ______      ______   ______    ______  
 At 30 June 2013      2,357    175         2,745    11,904    17,181  
                      ======   ======      ======   ======    ======  
 
 
During the year, the company did not buy back any shares. 
 
(2013:100,000 shares for a consideration of £61,000) 
 
Consolidated cash flow statement for the year ended 30 June 2014 
 
                                                               2014        2013                
                                                               £000        £000                
 Cash flows from operating activities                                                          
                                                                                               
 Profit/(loss) for the year                                    164         (62)                
                                                                                               
 Adjustments for :                                                                             
                                                                                               
 Gains on fair value adjustment of investment property  (780)  (510)                         
 Depreciation                                                  13          13                  
 Net finance expense                                           104         97                  
                                                                                               
                                                               _______     _______             
 Operating cash flows before movements                                                         
 in working capital                                            (499)       (462)               
                                                                                               
 Decrease/(increase) in trading properties                     273         (406)               
 Decrease/(increase) in trade and other receivables            108         (36)                
 (Decrease)/increase in trade and other payables               (10)        9                   
                                                               _______     _______             
 Cash absorbed by the operations                               (128)       (895)               
                                                                                               
 Interest paid                                                 -           (14)                
 Interest received                                             1           1                   
                                                               _______     _______             
 Net cash outflow from operating activities                    (127)       (908)               
                                                               _______     _______             
 Investing activities                                                                          
 Investment in the year                                        (1)         -                   
 Acquisition of property, plant and equipment                  (24)        (9)                 
                                                               _______     _______             
                                                                                               
 Cash flows from investing activities                          (25)        (9)                 
 Financing activities                                          _______     _______             
 Share buyback                                          -      (43)                          
 Increase in borrowings                                        180_______  275_______          
 Cash flows from financing activities                          180         232                 
                                                               _______     _______             
                                                                                               
 Net (decrease)/increase in cash and cash equivalents   28     (685)                         
 Cash and cash equivalents at beginning of year                6           691                 
                                                               _______     _______             
 Cash and cash equivalents at end of year                      34          6                   
                                                                                               
 
 
Notes to the consolidated  financial statements as at 30 June 2014 
 
1              Reporting entity 
 
Caledonian Trust PLC is a company domiciled in the United Kingdom.  The
consolidated financial statements of the company for the year ended 30 June
2014 comprise the company and its subsidiaries as listed in note 5 in the
parent company's financial statements (together referred to as "the Group"). 
The Group's principal activities are the holding of property for both
investment and development purposes. 
 
2              Statement of Compliance 
 
The group financial statements have been prepared and approved by the
directors in accordance with International Financial Reporting Standards and
its interpretation as adopted by the EU ("Adopted IFRSs").  The Company has
elected to prepare its parent company financial statements in accordance with
UK GAAP; these are presented on pages 51 to 59. 
 
3              Basis of preparation 
 
The financial statements are prepared on the historical cost basis except for
available for sale financial assets and investment properties which are
measured at their fair value. 
 
The preparation of the financial statements in conformity with Adopted IFRSs
requires the directors to make judgements, estimates and assumptions that
affect the application of policies and reported amounts of assets and
liabilities, income and expenses.  The estimates and associated assumptions
are based on historical experience and various other factors that are believed
to be reasonable under the circumstances, the results of which form the basis
of making the judgements about carrying values of assets and liabilities that
are not readily apparent from other sources.  Actual results may differ from
these estimates. 
 
These financial statements have been presented in pounds sterling which is the
functional currency of all companies within the Group. All financial
information has been rounded to the nearest pounds thousand. 
 
Going concern 
 
The group's business activities, together with the factors likely to affect
its future development, performance and position are set out in the Chairman's
Statement on pages 2 to 20.  The financial position of the group, its cash
flows, liquidity position and borrowing facilities are described in Note 18. 
 
In addition, note 18 to the financial statements includes the group's
objectives, policies and processes for managing its capital;  its financial
risk management objectives;  details of its financial instruments and hedging
activities;  and its exposures to credit risk and liquidity risk. 
 
The group and company finance their day to day working capital requirements
through a related party loan (see note 17). 
 
The Directors have prepared projected cash flow information for the period
ending twelve months from the date of their approval of these financial
statements. These forecasts assume the group will make property sales in the
normal course of business. 
 
Should these sales not complete as planned, the directors are confident that
they would be able to sell sufficient other properties within a short
timescale to generate the income necessary to meet the group's liabilities as
they fall due. 
 
For these reasons they continue to adopt the going concern basis in preparing
the financial statements. 
 
Areas of estimation uncertainty and critical judgements 
 
Information about significant areas of estimation uncertainty and critical
judgements in applying accounting policies that have the most significant
effect on the amount recognised in the financial statements is contained in
the following notes: 
 
·      Valuation of investment properties (note 10) 
 
The valuation of properties is subjective and based on similar transactions in
the market, rental yields and development potential.  The company's directors
are experienced in dealing with such properties. Director's valuations at the
balance sheet date are based on independent external valuations as at 30 June
2013. The Executive Directors have respectively over 40 years and 30 years
experience in commercial property. RJ Pearson is a Fellow of the Royal
Institution of Chartered Surveyors and has practised as a surveyor in Scotland
for 37 years during which time he has specialised in commercial property. 
 
·      Valuation of trading properties (note 13) 
 
Trading properties are carried at the lower of cost and net realisable value. 
The net realisable value of such properties is based on the amount the company
is likely to achieve in a sale to a third party. This is then dependent on
availability of planning consent and demand for sites which is influenced by
the housing and property markets. 
 
4          Accounting policies 
 
The accounting policies below have been applied consistently to all periods
presented in these consolidated financial statements. 
 
Basis of consolidation 
 
The financial statements incorporate the financial statements of the company
and all its subsidiaries.  Subsidiaries are entities controlled by the group. 
Control exists when the group has the power to determine the financial and
operating policies of an entity so as to obtain benefits from its activities. 
The financial statements of subsidiaries are included in the consolidated
financial statements from the date that control commences until the date it
ceases. 
 
Revenue 
 
Rental income from properties leased out under operating leases is recognised
in the income statement on a straight line basis over the term of the lease. 
Costs of obtaining a lease and lease incentives granted are recognised as an
integral part of total rental income and spread over the period from
commencement of the lease to the earliest termination date on a straight line
basis. 
 
Revenue from the sale of trading properties is recognised in the income
statement on the date at which the significant risks and rewards of ownership
are transferred to the buyer with proceeds and costs shown on a gross basis. 
 
Other income 
 
Other income comprises income from agricultural land and other miscellaneous
income. 
 
Finance income and expenses 
 
Finance income and expenses comprise interest payable on bank loans and other
borrowings.  All borrowing costs are recognised in the income statement using
the effective interest rate method.  Interest income represents income on bank
deposits using the effective interest rate method. 
 
Taxation 
 
Income tax on the profit or loss for the year comprises current and deferred
tax.  Income tax is recognised in the income statement except to the extent
that it relates to items recognised directly in equity, in which case the
charge / credit is recognised in equity.  Current tax is the expected tax
payable on taxable income for the current year, using tax rates enacted or
substantively enacted at the reporting date, adjusted for prior years under
and over provisions. 
 
Deferred tax is provided using the balance sheet liability method in respect
of all temporary differences between the values at which assets and
liabilities are recorded in the financial statements and their cost base for
taxation purposes.  Deferred tax includes current tax losses which can be
offset against future capital gains.  As the carrying value of the group's
investment properties is expected to be recovered through eventual sale rather
than rentals, the tax base is calculated as the cost of the asset plus
indexation.  Indexation is taken into account to reduce any liability but does
not create a deferred tax asset. A deferred tax asset is recognised only to
the extent that it is probable that future taxable profits will be available
against which the asset can be utilised. 
 
Investment properties 
 
Investment properties are properties owned by the group which are held either
for long term rental growth or for capital appreciation or both.  Properties
transferred from trading properties to investment properties are revalued to
fair value at the date on which the properties are transferred. When the Group
begins to redevelop an existing investment property for continued future use
as investment property, the property remains an investment property, which is
measured based on the fair value model, and is not reclassified as property,
plant and equipment during the redevelopment. 
 
The cost of investment property includes the initial purchase price plus
associated professional fees.  Borrowing costs directly attributable to the
acquisition or construction of qualifying assets are capitalised during the
period of construction.  Subsequent expenditure on investment properties is
only capitalised to the extent that future economic benefits will be
realised. 
 
Investment property is measured at fair value at each balance sheet date. 
External independent professional valuations are prepared at least once every
three years.  The fair values are based on market values, being the estimated
amount for which a property could be exchanged on the date of valuation
between a willing buyer and a willing seller in an arms-length transaction
after proper marketing wherein the parties had each acted knowledgeably,
prudently and without compulsion. 
 
Any gain or loss arising from a change in fair value is recognised in the
income statement. 
 
Purchases and sales of investment properties 
 
Purchases and sales of investment properties are recognised in the financial
statements at completion which is the date at which the significant risks and
rewards of ownership are transferred to the buyer. 
 
Property, plant and equipment 
 
Property, plant and equipment are stated at cost, less accumulated
depreciation and any provision for impairment.  Depreciation is provided on
all property, plant and equipment at varying rates calculated to write off
cost to the expected current residual value by equal annual instalments over
their estimated useful economic lives.  The principal rates employed are: 
 
Plant and equipment                               -               20.0 per
cent 
 
Fixtures and fittings                                -               33.3 per
cent 
 
Motor vehicles                                         -               33.3
per cent 
 
Trading properties 
 
Trading properties held for short term sale or with a view to subsequent
disposal in the near future are stated at the lower of cost or net realisable
value.  Cost is calculated by reference to invoice price plus directly
attributable professional fees.  Net realisable value is based on estimated
selling price less estimated cost of disposal. 
 
Financial assets 
 
Trade and other receivables 
 
Trade and other receivables are initially recognised at fair value and then
stated at amortised cost. 
 
Financial instruments 
 
Available for sale financial assets 
 
The group's investments in equity securities were sold during the year. 
 
Cash and cash equivalents 
 
Cash includes cash in hand, deposits held at call (or with a maturity of less
than 3 months) with banks, and bank overdrafts.  Bank overdrafts that are
repayable on demand and which form an integral part of the Group's cash
management are shown within current liabilities on the balance sheet and
included with cash and cash equivalents for the purpose of the statement of
cash flows. 
 
Financial liabilities 
 
Trade payables 
 
Trade payables are non-interest-bearing and are initially measured at fair
value and thereafter at amortised cost. 
 
Interest bearing loans and borrowings 
 
Interest-bearing loans and bank overdrafts are initially carried at fair value
less allowable transactions costs and then at amortised cost. 
 
New Standards and interpretations not yet adopted 
 
The International Accounting Standards Board (IASB) and International
Financial Reporting Interpretations Committee has recently issued the
following new standards and amendments which are effective for annual periods
beginning on or after 1 January 2014, unless stated otherwise, and have not
been applied in preparing these consolidated financial statements. 
 
-                 IFRS 9 Financial Instruments:  Classification and
Measurement which is the first phase of a wider project to replace IAS 39. 
 
Financial Instruments:  Recognition and Measurement, replaces the current
models for classification measurement of financial instruments.  Financial
assets are to be classified into two measurement categories:  fair value and
amortised cost.  Classification will depend on an entity's business model and
the characteristics of contractual cash flow of the financial instrument.  The
standard is effective for annual periods beginning on or after 1 January
2015. 
 
As at the time of publication of these financial statements, the IASB is
re-deliberating the requirements for classification and measurement in IFRS 9
while the requirements of latter phases of IFRS 9 are in development and
therefore remain uncertain. 
 
Operating segments 
 
The Group determines and presents operating segments based on the information
that is internally provided to the Board of Directors ("The Board"), which is
the Group's chief operating decision maker. The directors review information
in relation to the Group's entire property portfolio, regardless of its type
or location, and as such are of the opinion that there is only one reportable
segment which is represented by the consolidated position presented in the
primary statements. 
 
 5  Operating profit/(loss)                                                     2014     2013