2018-05-09T06:01:08.039Zreuters.comtag:reuters.com,2018-05-09:newsml_RSI4187Na:13TXT
This file is provided for EAP sample purposes only; it's structure and detail are subject to change, and should not be used as a definitive reference for actual development and processing.2018-05-09T06:01:08.039Z2018-05-09T06:01:08.039Z____UCDP:parsn_lse_10.54.4.69_1.2.37235:REG - Cardiff Property PLC - Half-year Report2019-06-09T06:01:08.039Z3RSI4187NaREG - Cardiff Property PLC - Half-year ReportLEGACY: Financials (TRBC)Real Estate (TRBC level 2)Real Estate Operations (TRBC level 3)Real Estate Rental, Development & Operations (NEC) (TRBC level 5)Real Estate Rental, Development & Operations (TRBC level 4)Financials (TRBC level 1)Western EuropeUnited KingdomEuropeSuggested SourcesServicesNews AnnouncementsRegulatory Corporate News AnnouncementsCompany NewsEurope daily earnings hits & missesCardiff Property PLC
RNS Number : 4187N
Cardiff Property PLC
09 May 2018
THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY
AND ITS SUBSIDIARIES
FOR RELEASE 7.00 AM 9 May 2018
THE CARDIFF PROPERTY PLC
The group, including Campmoss, specialises in property investment and development in the Thames Valley. The total portfolio under management, valued in excess of £25m, is primarily located to the west of London, close to Heathrow Airport and in Surrey and Berkshire.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 MARCH 2018
Highlights:
Six months 31 March 2018 (Unaudited)
Six months 31 March 2017 (Unaudited)
Year 30 September 2017 (Audited)
Revenue
£'000
336
284
552
Net assets per share
£
21.67
19.07
21.26
Profit before tax
£'000
715
561
3,359
Earnings per share (basic and diluted)
pence
52.4
39.2
253.7
Interim/total dividend per share
pence
4.4
4.00
15.5
Gearing
%
Nil
Nil
Nil
Richard Wollenberg, Chairman, commented:
The Thames Valley commercial property market continues to experience a good level of tenant demand although it is noticeable that a more cautious attitude is currently being taken leading to requests for shorter leases or break clauses. Office and industrial rental levels remain firm and it is particularly encouraging to report that in certain Thames Valley locations further growth is being predicted.
Concerns regarding Brexit, the UK economy and increases in interest rates are still apparent, yet the commercial property investment market remains active as investors seek to obtain higher rates of return than those available in other markets.
For further information:
The Cardiff Property plc
Richard Wollenberg
01784 437444
Stockdale Securities
Richard Johnson
020 7601 6100
LEI: 213800GE3FA4C52CIN05
THE CARDIFF PROPERTY PLC
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 MARCH 2018
INTERIM MANAGEMENT REPORT
The Thames Valley commercial property market continues to experience a good level of tenant demand, although it is noticeable that a more cautious attitude is currently being taken leading to requests for shorter leases or break clauses. Office and industrial rental levels remain firm and it is particularly encouraging to report that in certain Thames Valley locations further growth is being predicted.
Concerns regarding Brexit, the UK economy and increases in interest rates are still apparent, yet the commercial property investment market remains active as investors seek to obtain higher rates of return than those available in other markets.
As anticipated last year the slow down in activity in the residential market has resulted in lower values, particularly at the high end of the market. At the lower range the majority of properties have retained their value and it is noticeable that first time buyers are benefitting from the government's various Help to Buy schemes. This is particularly evident at our joint venture residential developments in Bracknell.
Financial
For the six months ending 31 March 2018 profit before tax amounted to £0.72m (March 2017: £0.56m; September 2017: £3.36m). This figure includes an after-tax profit from Campmoss Property Company Limited, our 47.62% joint venture, of £0.36m (March 2017: £0.27m; September 2017: £1.84m).
Revenue for the six months to 31 March 2018, represented by rental income, totalled £0.34m (March 2017: £0.28m; September 2017: £0.55m). The group's share of revenue from Campmoss was £0.80m (March 2017: £0.53m; September 2017: £1.22m), represented by rental income of £0.59m (March 2017: £0.53m; September 2017: £0.98m) and property sales of £0.21m (March 2017: £nil; September 2017: £0.24m). Rental income and sales figures for Campmoss are not included in group revenue.
The comparable figures in brackets relate to the periods six months ending 31 March 2017 and the year end 30 September 2017.
Net assets of the group as at 31 March 2018 were £27.26m (March 2017: £24.23m; September 2017: £26.86m), equivalent to £21.67 per share (March 2017: £19.07; September 2017: £21.26). The company's share of net assets of Campmoss, included on the group balance sheet, amounted to £15.22m (March 2017: £13.29m; September 2017: £14.86m).
Your directors are of the opinion that, other than as mentioned in this report, there is no material change in the value of the group's property portfolio as at 31 March 2018.
During the six months to 31 March 2018 the company purchased 5,809 of its own shares (March 2017: nil; September 2017: 7,128 shares). There have been no material events or material changes in assets, liabilities or related party relationships since 30 September 2017.
Current IFRS accounting recommends that deferred tax is chargeable on the difference between the indexed cost of properties and quoted investments and their current market value. However, current IFRS accounting does not require the same treatment in respect of the Group's unquoted investment in Campmoss Property, our 47.62% owned joint venture. The investment in Campmoss is a substantial part of the company's net assets and for indicative purposes a disposal of this investment based on the value in the company's balance sheet at the 31 March 2018 could generate a tax liability of £2.59m (March 2017: £2.26m, September 2017: £2.53m), equivalent to 206p per share (March 2017: 178p, September 2017: 200p). This information is provided to shareholders as an additional, non-statutory disclosure.
Dividend
Your directors have declared an interim dividend of 4.4p (interim March 2017: 4p; final September 2017: 11.5p), an increase of 10% which will be paid on 5 July 2018 to shareholders on the register at 1 June 2018.
Investment and Development Portfolio
The group's freehold property portfolio, including those held by Campmoss, continues to be concentrated in the Thames Valley to the west of London and close to Heathrow Airport.
The office and retail investment at The White House, Egham, comprising five ground floor retail units with offices above, is fully occupied. The majority are let on medium term leases, some of which include annual rental increases. One of the upper floor office suites is anticipated to be vacated at the end of the year and discussions with prospective tenants are ongoing.
The Maidenhead Enterprise Centre, Maidenhead, offers six business units totalling 14,000 sq. ft. is fully let and negotiations with one of the tenants for a lease renewal is in progress.
The Windsor Business Centre, Windsor, comprises four business units totalling 9,500 sq. ft., all of which are let. Planning permission was recently granted to increase the useable office area within one of the units and a further application to achieve additional space at the other three units is being prepared.
Cowbridge Road, Cardiff, comprises a 14,650 sq. ft. commercial property on two floors and is let to Royal Mail for use as a mail sorting office. The lease expires in June 2019 and discussions with the Royal Mail to extend their lease are in progress. Plans to increase the useable floor space are under negotiations with the local authority.
Heritage Court, Egham, comprises four retail units with eight residential apartments on the upper three floors. The apartments were previously sold on long leaseholds. The retails units are fully let with one of the units recently re-let on a medium-term lease achieving an increase in rental.
The company occupies its own freehold office in Egham and retains as an investment a freehold residential property in Egham. Following the grant of planning permission, works to extend and upgrade the residential property are expected to complete in July this year.
At Tilehurst, Reading, our outline residential planning application was refused and further discussions are taking place with the local planning authority.
Campmoss Property Company Limited and subsidiaries
Campmoss continues with its extensive programme of planning, re-development, sales and letting. Currently the main development and sales activity is in Bracknell, Berkshire. Bracknell has benefitted from the recent opening of the Lexicon Shopping Centre and the improvement of rail connections to Waterloo.
At Alston House, Market Street, Bracknell, the construction of ten new retail units on the ground and first floor and 12 residential units on the second and third floors is well advanced. This development is expected to complete by summer 2018 and the majority of retail units are under offer.
At Westview, adjacent to Alston House, the development of eight retail units on ground and first floors was completed last year and are all let on either medium or long term leases.
Gowring House, Market Street, Bracknell, previously an office building on ground and five upper floors was converted to provide three retail units on the ground floor and 30 residential apartments on the upper floors. The retail units are all let on medium term leases and sales of 22 apartments have completed, five of which took place in the first half of this year. The remaining eight residential units include a show apartment and three apartments let on yearly lease agreements. Two units for sale are currently under offer.
Following the sale of Worplesdon View, Worplesdon, Campmoss continue to own an adjacent 2.5-acre site which, subject to planning, may be available for alternative uses.
At Britannia Wharf, Woking, planning permission was granted in July 2017 for an 82-bedroom care home and discussions with prospective management companies are taking place. An alternative residential scheme remains under detailed discussion with the local authority.
At Clivemont House and Highway House, Maidenhead, planning permissions were previously granted for separate office schemes together totalling over 90,000 sq. ft. In view of the uncertain local office market, commencement of these developments will only proceed when a significant pre-letting is achieved. A planning application for a residential scheme at Clivemont House has been submitted.
At The Priory, Burnham, the 26,000 sq. ft. building consists of new office premises on three floors totalling 17,000 sq. ft. and an adjoining Grade II Listed office building of 9,000 sq. ft. which is used as a Business Centre. Following negotiations, two existing tenants have reorganised their space requirements and part of the office space in the new building and Business Centre is currently being marketed. Plans over the next few years include submitting a planning application for re-development of the site.
Relationship Agreement
The company has entered into a written and legally binding relationship agreement with myself, its controlling shareholder, to address the requirements of LR9.2.2AR of the Listing Rules.
Outlook
The economy and the property market have performed significantly better than predicted at the time of the Brexit vote and the General Election. Interest rates remain low and projected increases are limited. If the economy remains resilient the property market should perform likewise.
The group should benefit from the completion of its current development programme and I therefore look forward to reporting further at the year end.
J Richard Wollenberg
Chairman
8 May 2018
Condensed Consolidated Interim Income Statement
FOR THE SIX MONTHS ENDED 31 MARCH 2018
Six months 31 March 2018 (Unaudited) £'000
Six months 31 March 2017 (Unaudited) £'000
Year 30 September 2017 (Audited) £'000
Revenue
336
284
552
Cost of sales
(25)
(9)
(57)
______
______
______
Gross profit
311
275
495
Administrative expenses
(295)
(272)
(511)
Other operating income
314
261
577
______
______
______
Operating profit before gains on investment properties and other investments
330
264
561
Surplus on revaluation of investment properties
-
-
905
______
______
______
Operating profit
330
264
1,466
Financial income
25
27
54
Share of results of joint venture
360
269
1,839
______
______
______
Profit before taxation
715
561
3,359
Taxation
(53)
(62)
(141)
______
______
______
Profit for the period attributable to equity holders
662
498
3,218
______
______
______
Earnings per share on profit for the period - pence
Basic and diluted
52.4
39.2
253.7
______
______
______
Dividends
Final 2017 paid 11.5p (2016: 10.4p)
145
132
132
Interim 2017 paid 4.0p
-
-
51
______
______
______
145
132
183
______
______
______
Final 2017 paid 11.5p
-
-
145
Interim 2018 proposed 4.4p (2017: 4.0p)
55
51
-
______
______
______
55
51
145
______
______
______
These results relate entirely to continuing operations. There were no acquisitions or disposals during these periods.
Condensed Consolidated Interim Statement of Comprehensive Income and Expense
FOR THE SIX MONTHS ENDED 31 MARCH 2018
Six months 31 March 2018 (Unaudited) £'000
Six months 31 March 2017 (Unaudited) £'000
Year 30 September 2017 (Audited) £'000
Profit for the financial period
662
498
3,218
Other items recognised directly in equity
Net change in fair value of available for sale assets
(13)
27
72
Net change in fair value of other properties
-
-
30
______
______
______
Total comprehensive income and expense for the period attributable to equity holders of the parent company
649
525
3,320
______
______
______
Condensed Consolidated Interim Balance Sheet
AT 31 MARCH 2018
31 March 2018 (Unaudited) £'000
31 March 2017 (Unaudited) £'000
30 September 2017 (Audited) £'000
Non-current assets
Freehold investment properties
5,863
4,880
5,792
Property, plant and equipment
301
275
303
Investment in joint venture
15,224
13,294
14,864
Other financial assets
1,058
969
1,071
Deferred tax asset
-
2
5
______
______
______
Total non-current assets
22,446
19,420
22,035
______
______
______
Current assets
Stock and work in progress
668
668
668
Trade and other receivables
150
405
91
Financial assets
1,851
1,070
1,370
Cash and cash equivalents
2,991
3,405
3,485
______
______
______
Total current assets
5,660
5,548
5,614
______
______
______
Total assets
28,106
24,968
27,649
______
______
______
Current liabilities
Trade and other payables
(701)
(599)
(629)
______
______
______
Total current liabilities
(701)
(599)
(629)
______
______
______
Non-current liabilities
Deferred tax liability
(143)
(137)
(160)
______
______
______
Total non-current liabilities
(143)
(137)
(160)
______
______
______
Total liabilities
(844)
(736)
(789)
______
______
______
Net assets
27,262
24,232
26,860
______
______
______
Equity
Called up share capital
252
254
253
Share premium account
5,076
5,076
5,076
Other reserves
2,760
2,696
2,772
Investment property revaluation reserve
997
2,935
997
Retained earnings
18,177
13,271
17,762
______
______
______
Shareholders' funds attributable to equity holders
27,262
24,232
26,860
______
______
______
Net assets per share
£21.67
£19.07
£21.26
______
______
______
Condensed Consolidated Interim Statement of Cash Flows
FOR THE SIX MONTHS ENDED 31 MARCH 2018
Six months 31 March 2018 (Unaudited) £'000
Six months 31 March 2017 (Unaudited) £'000
Year 30 September 2017 (Audited) £'000
Cash flows from operating activities
Profit for the period
662
498
3,218
Adjustments for:
Depreciation
3
3
5
Financial income
(25)
(27)
(54)
Share of profit of joint venture
(360)
(269)
(1,839)
Surplus on revaluation of investment properties
-
-
(905)
Taxation
53
62
141
______
______
______
Cash flows from operations before changes in working capital
333
267
566
(Increase)/decrease in trade and other receivables
(57)
(61)
1
Increase/(decrease) in trade and other payables
6
(21)
57
______
______
______
Cash generated from operations
282
185
624
Tax paid
-
(1)
(107)
______
______
______
Net cash flows from operating activities
282
184
517
______
______
______
Cash flows from investing activities
Interest received
23
28
56
Acquisition of investments, and property, plant and equipment
(71)
(100)
(164)
(Increase)/decrease in cash deposits with a maturity of > 90 days
(481)
(23)
(323)
______
______
______
Net cash flows from investing activities
(529)
(95)
(431)
______
______
______
Cash flows from financing activities
Purchase of own shares
(102)
-
(116)
Dividends paid
(145)
(132)
(183)
Loan repaid by Joint Venture
-
1,250
1,500
______
______
______
Net cash flows from financing activities
(247)
1,118
1,201
______
______
______
Net (decrease)/increase in cash and cash equivalents
(494)
1,207
1,287
Cash and cash equivalents at beginning of period
3,485
2,198
2,198
______
______
______
Cash and cash equivalents at end of period
2,991
3,405
3,485
______
______
______
Condensed Consolidated Interim Statement of Changes in Equity
FOR THE SIX MONTHS ENDED 31 MARCH 2018
Share capital £'000
Share premium account £'000
Other reserves £'000
Investment property revaluation reserve £'000
Retained earnings £'000
Total equity £'000
At 1 October 2016
254
5,076
2,669
3,749
12,091
23,839
Profit for the period
-
-
-
-
498
498
Other comprehensive income - revaluation of investments
-
-
27
-
-
27
Transactions with equity holders Dividends
-
-
-
-
(132)
(132)
______
______
______
______
______
______
Total transactions with equity holders
-
-
-
-
(132)
(132)
______
______
______
______
______
______
Realisation of revaluation reserve
-
-
-
(814)
814
-
______
______
______
______
______
______
At 31 March 2017
254
5,076
2,696
2,935
13,271
24,232
Profit for the period
-
-
-
-
2,720
2,720
Other comprehensive income - revaluation of investments
-
-
45
-
-
45
Revaluation of other property
-
-
30
-
-
30
Transactions with equity holders Dividends
-
-
-
-
(51)
(51)
Purchase of own shares
(1)
-
1
-
(116)
(116)
______
______
______
______
______
______
Total transactions with equity holders
(1)
-
1
-
(167)
(167)
______
______
______
______
______
______
Realisation of revaluation reserve
-
-
-
(3,136)
3,136
-
Transfer on revaluation of investment properties - Cardiff
-
-
-
905
(905)
-
Transfer on revaluation of investment properties - Campmoss
-
-
-
293
(293)
-
______
______
______
______
______
______
At 30 September 2017
253
5,076
2,772
997
17,762
26,860
Profit for the period
-
-
-
-
662
662
Other comprehensive income - revaluation of investments
-
-
(13)
-
-
(13)
Transactions with equity holders Dividends
-
-
-
-
(145)
(145)
Purchase of own shares
(1)
-
1
-
(102)
(102)
______
______
______
______
______
______
Total transactions with equity holders
(1)
-
1
-
(247)
(247)
______
______
______
______
______
______
At 31 March 2018
252
5,076
2,760
997
18,177
27,262
______
______
______
______
______
______
Statement of Responsibility
FOR THE SIX MONTHS ENDED 31 MARCH 2018
The directors are responsible for preparing the condensed consolidated interim financial statements for the six months ended 31 March 2018 and they confirm, to the best of their knowledge and belief, that:
· the condensed consolidated set of interim financial statements for the six months ended 31 March 2018 has been prepared in accordance with IAS 34 - Interim Financial Reporting, as adopted by the EU;
· the interim management report includes a fair review of the information required by:
a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of interim financial statements and a description of the principal risks and uncertainties for the remaining six months of the year; and
b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the group during that period; and any changes in the related party transactions described in the last annual report that could do so.
J Richard Wollenberg, Chairman
Karen L Chandler, Finance director
Nigel D Jamieson, Independent non-executive director
8 May 2018
Notes to the Condensed Consolidated Interim Financial Statements
FOR THE SIX MONTHS ENDED 31 MARCH 2018
1. Basis of preparation
This condensed set of financial statements has been prepared in accordance with IAS 34 - Interim Financial Reporting as adopted by the EU.
The annual financial statements of the group are prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU. As required by the Disclosure and Transparency Rules of the Financial Conduct Authority, the condensed set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the group's published consolidated financial statements for the year ended 30 September 2017.
The comparative figures for the financial year ended 30 September 2017 are not the group's statutory accounts for that financial year. Those accounts have been reported on by the group's auditor and delivered to the registrar of companies. The report of the auditor was: unqualified; did not give any reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report; and did not contain a statement under sections 498 (2) or (3) of the Companies Act 2006.
Accounting policies
The condensed consolidated interim financial statements have been prepared applying the accounting policies that were applied in the preparation of the group's published financial statements for the year ended 30 September 2017.
There are no IFRSs and Interpretations which have been endorsed in the period to 31 March 2018, which have had a material impact on these interim financial statements.
Use of estimates and judgement
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. The key areas in which estimates have been used and the assumptions applied are in valuing investment properties and properties in the joint venture, in valuing available for sale assets, in classifying properties and in the calculating of provisions.
An external, independent valuer, having an appropriate recognised professional qualification and recent experience in the location and category of property being valued, values the company's property portfolio at the end of each financial year. The directors of the joint venture value its portfolio each year; such valuation takes into account yields on similar properties in the area, vacant space and covenant strength. The directors of the group and joint venture review the valuations for the interim financial statements.
A provision is recognised in the balance sheet when the group has a present legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefit will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
Going concern
The group has sufficient financial resources to enable it to continue in operational existence for the foreseeable future, to complete the current maintenance and development programme and meet its liabilities as they fall due. Accordingly, the directors consider it appropriate to continue to adopt the going concern basis in preparing these interim financial statements.
Notes to the Condensed Consolidated Interim Financial Statements
FOR THE SIX MONTHS ENDED 31 MARCH 2018 (continued)
2. Segmental analysis
The group manages its operations in two segments, being property and other investments and property development. The results of these segments are regularly reviewed by the board as a basis for the allocation of resources, in conjunction with individual site investment appraisals and to assess their performance. Information regarding the revenue and profit before taxation for each reportable segment is set out below:
Six months 31 March 2018 (Unaudited) £'000
Six months 31 March 2017 (Unaudited) £'000
Year 30 September 2017 (Audited) £'000
Revenue (wholly in the United Kingdom)
Property and other investments being gross rents Receivable
336
284
552
______
______
______
Profit before taxation
Property and other investments
595
472
3,211
Property development
120
89
148
______
______
______
715
561
3,359
______
______
______
The operations of the group are not seasonal.
3. Taxation
The tax position for the six-month period is estimated on the basis of the anticipated tax rates applying for the full year.
4. Dividends
The interim dividend of 4.4p per share will be paid on 5 July 2018 to shareholders on the register on 1 June 2018. Under accounting standards this dividend is not included in the condensed consolidated interim financial statements for the six months ended 31 March 2018.
5. Earnings per share
Earnings per share has been calculated using the profit after tax for the period of £662,000 (March 2017: £498,000; September 2017: £3,218,000) and the weighted average number of shares as follows:
Weighted average number of shares
31 March 2018
31 March 2017
30 September 2017
Basic and diluted
1,261,654
1,270,709
1,278,420
_________
_________
_________
Directors and Advisers
Directors
Auditor
J Richard Wollenberg
KPMG LLP
Chairman and chief executive
Karen L Chandler FCA
Finance director
Stockbrokers and financial advisers
Nigel D Jamieson BSc, FCSI
Stockdale Securities Limited
Independent non-executive director
Secretary
Bankers
Karen L Chandler FCA
HSBC Bank plc
Non-executive director of wholly owned subsidiary
Solicitors
First Choice Estates plc
Blake Morgan LLP
Derek M Joseph BCom, FCIS
Head office
Registrar and transfer office
56 Station Road
Neville Registrars Limited
Egham, TW20 9LF
Neville House
Telephone: 01784 437444
18 Laurel Lane
Fax: 01784 439157
Halesowen
E-mail: webmaster@cardiff-property.com
B63 3DA
Web: www.cardiff-property.com
Telephone: 0121 585 1131
Registered office
Registered number
56 Station Road
00022705
Egham, TW20 9LF
Financial Calendar
2018
9 May
Interim results for 2018 announced
31 May
Ex-dividend date for interim dividend
1 June
Record date for interim dividend
5 July
Interim dividend to be paid
30 September
End of accounting year
December
Final results for 2018 announced
2019
January
Annual General Meeting
February
Final dividend to be paid
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BLGDUIGGBGII
90 days (481) (23) (323)
______ ______ ______
Net cash flows from investing activities (529) (95) (431)
______ ______ ______
Cash flows from financing activities
Purchase of own shares (102) - (116)
Dividends paid (145) (132) (183)
Loan repaid by Joint Venture - 1,250 1,500
______ ______ ______
Net cash flows from financing activities (247) 1,118 1,201
______ ______ ______
Net (decrease)/increase in cash and cash equivalents (494) 1,207 1,287
Cash and cash equivalents at beginning of period 3,485 2,198 2,198
______ ______ ______
Cash and cash equivalents at end of period 2,991 3,405 3,485
______ ______ ______
Condensed Consolidated Interim Statement of Changes in Equity
FOR THE SIX MONTHS ENDED 31 MARCH 2018
Investment
property
Share
revaluation
premium
reserve
Share
account Other
Retained Total
capital
reserves £'000
earnings
equity
£'000
£'000 £'000 £'000 £'000
At 1 October 2016 254 5,076 2,669 3,749 12,091 23,839
Profit for the period - - - - 498 498
Other comprehensive income - revaluation of investments - - 27 - - 27
Transactions with equity holders
Dividends - - - - (132) (132)
______ ______ ______ ______ ______ ______
Total transactions with equity holders - - - - (132) (132)
______ ______ ______ ______ ______ ______
Realisation of revaluation reserve - - - (814) 814 -
______ ______ ______ ______ ______ ______
At 31 March 2017 254 5,076 2,696 2,935 13,271 24,232
Profit for the period - - - - 2,720 2,720
Other comprehensive income - revaluation of investments - - 45 - - 45
Revaluation of other property - - 30 - - 30
Transactions with equity holders - - - - (51) (51)
Dividends
Purchase of own shares (1) - 1 - (116) (116)
______ ______ ______ ______ ______ ______
Total transactions with equity holders (1) - 1 - (167) (167)
______ ______ ______ ______ ______ ______
Realisation of revaluation reserve
- - - (3,136) 3,136 -
Transfer on revaluation of investment properties - Cardiff - - - 905 (905) -
Transfer on revaluation of investment properties - Campmoss - - - 293 (293) -
______ ______ ______ ______ ______ ______
At 30 September 2017 253 5,076 2,772 997 17,762 26,860
Profit for the period - - - - 662 662
Other comprehensive income - revaluation of investments - - (13) - - (13)
Transactions with equity holders (145) (145)
Dividends - - - -
Purchase of own shares (1) - 1 - (102) (102)
______ ______ ______ ______ ______ ______
Total transactions with equity holders (1) - 1 - (247) (247)
______ ______ ______ ______ ______ ______
At 31 March 2018 252 5,076 2,760 997 18,177 27,262
______ ______ ______ ______ ______ ______
Statement of Responsibility
FOR THE SIX MONTHS ENDED 31 MARCH 2018
The directors are responsible for preparing the condensed consolidated interim
financial statements for the six months ended 31 March 2018 and they confirm,
to the best of their knowledge and belief, that:
· the condensed consolidated set of interim financial statements
for the six months ended 31 March 2018 has been prepared in accordance with
IAS 34 - Interim Financial Reporting, as adopted by the EU;
· the interim management report includes a fair review of the
information required by:
a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of interim
financial statements and a description of the principal risks and
uncertainties for the remaining six months of the year; and
b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related
party transactions that have taken place in the first six months of the
current financial year and that have materially affected the financial
position or performance of the group during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
J Richard Wollenberg, Chairman
Karen L Chandler, Finance director
Nigel D Jamieson, Independent non-executive director
8 May 2018
Notes to the Condensed Consolidated Interim Financial Statements
FOR THE SIX MONTHS ENDED 31 MARCH 2018
1. Basis of preparation
This condensed set of financial statements has been prepared in accordance
with IAS 34 - Interim Financial Reporting as adopted by the EU.
The annual financial statements of the group are prepared in accordance with
International Financial Reporting Standards (IFRSs) as adopted by the EU. As
required by the Disclosure and Transparency Rules of the Financial Conduct
Authority, the condensed set of financial statements has been prepared
applying the accounting policies and presentation that were applied in the
preparation of the group's published consolidated financial statements for the
year ended 30 September 2017.
The comparative figures for the financial year ended 30 September 2017 are not
the group's statutory accounts for that financial year. Those accounts have
been reported on by the group's auditor and delivered to the registrar of
companies. The report of the auditor was: unqualified; did not give any
reference to any matters to which the auditor drew attention by way of
emphasis without qualifying their report; and did not contain a statement
under sections 498 (2) or (3) of the Companies Act 2006.
Accounting policies
The condensed consolidated interim financial statements have been prepared
applying the accounting policies that were applied in the preparation of the
group's published financial statements for the year ended 30 September 2017.
There are no IFRSs and Interpretations which have been endorsed in the period
to 31 March 2018, which have had a material impact on these interim financial
statements.
Use of estimates and judgement
The preparation of financial statements in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets,
liabilities, income and expense. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimates are revised and in any future periods affected. The key areas in
which estimates have been used and the assumptions applied are in valuing
investment properties and properties in the joint venture, in valuing
available for sale assets, in classifying properties and in the calculating of
provisions.
An external, independent valuer, having an appropriate recognised professional
qualification and recent experience in the location and category of property
being valued, values the company's property portfolio at the end of each
financial year. The directors of the joint venture value its portfolio each
year; such valuation takes into account yields on similar properties in the
area, vacant space and covenant strength. The directors of the group and joint
venture review the valuations for the interim financial statements.
A provision is recognised in the balance sheet when the group has a present
legal or constructive obligation as a result of a past event and it is
probable that an outflow of economic benefit will be required to settle the
obligation. If the effect is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money and, where appropriate,
the risks specific to the liability.
Going concern
The group has sufficient financial resources to enable it to continue in
operational existence for the foreseeable future, to complete the current
maintenance and development programme and meet its liabilities as they fall
due. Accordingly, the directors consider it appropriate to continue to adopt
the going concern basis in preparing these interim financial statements.
Notes to the Condensed Consolidated Interim Financial Statements
FOR THE SIX MONTHS ENDED 31 MARCH 2018 (continued)
2. Segmental analysis
The group manages its operations in two segments, being property and other
investments and property development. The results of these segments are
regularly reviewed by the board as a basis for the allocation of resources, in
conjunction with individual site investment appraisals and to assess their
performance. Information regarding the revenue and profit before taxation for
each reportable segment is set out below:
Six months Six months Year
31 March 31 March 30 September
2018 2017 2017
(Unaudited)
(Audited)
(Unaudited)
£'000 £'000 £'000
Revenue (wholly in the United Kingdom)
Property and other investments being gross rents
Receivable 336 284 552
______ ______ ______
Profit before taxation
Property and other investments 595 472 3,211
Property development 120 89 148
______ ______ ______
715 561 3,359
______ ______ ______
The operations of the group are not seasonal.
3. Taxation
The tax position for the six-month period is estimated on the basis of the
anticipated tax rates applying for the full year.
4. Dividends
The interim dividend of 4.4p per share will be paid on 5 July 2018 to
shareholders on the register on 1 June 2018. Under accounting standards this
dividend is not included in the condensed consolidated interim financial
statements for the six months ended 31 March 2018.
5. Earnings per share
Earnings per share has been calculated using the profit after tax for the
period of £662,000 (March 2017: £498,000; September 2017: £3,218,000) and
the weighted average number of shares as follows:
Weighted average number of shares
31 March 31 March 30 September
2018 2017 2017
Basic and diluted 1,261,654 1,270,709 1,278,420
_________ _________ _________
Directors and Advisers
Directors Auditor
J Richard Wollenberg KPMG LLP
Chairman and chief executive
Karen L Chandler FCA
Finance director Stockbrokers and financial advisers
Stockdale Securities Limited
Nigel D Jamieson BSc, FCSI
Independent non-executive director
Secretary Bankers
Karen L Chandler FCA HSBC Bank plc
Non-executive director of wholly owned subsidiary Solicitors
First Choice Estates plc Blake Morgan LLP
Derek M Joseph BCom, FCIS
Head office Registrar and transfer office
56 Station Road Neville Registrars Limited
Egham, TW20 9LF Neville House
Telephone: 01784 437444 18 Laurel Lane
Fax: 01784 439157 Halesowen
E-mail: webmaster@cardiff-property.com B63 3DA
Web: www.cardiff-property.com Telephone: 0121 585 1131
Registered office Registered number
56 Station Road 00022705
Egham, TW20 9LF
Financial Calendar
2018 9 May Interim results for 2018 announced
31 May Ex-dividend date for interim dividend
1 June Record date for interim dividend
5 July Interim dividend to be paid
30 September End of accounting year
December Final results for 2018 announced
2019 January Annual General Meeting
February Final dividend to be paid
This information is provided by RNS
The company news service from the London Stock Exchange
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