REG - Cardiff Property PLC - Final Results
30/11/2023 07:15
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231130:nRSd1347Va&default-theme=true
RNS Number : 1347V Cardiff Property PLC 30 November 2023
THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY
AND ITS SUBSIDIARIES
LEI: 213800GE3FA4C52C1N05
FOR RELEASE 7.00 AM 30 November 2023
THE CARDIFF PROPERTY PLC
(The Group, including Campmoss, specialises in property investment and
development in the Thames Valley. The total portfolio including the jointly
controlled Campmoss investment and development portfolio, valued in excess of
£22m, is primarily located to the west of London, close to Heathrow Airport
and in Surrey and Berkshire.)
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
Highlights:
2023 2022
Net Assets £'000 29,975 29,812
Net Assets Per Share £ 28.44 27.56
Profit Before Tax £'000 1,262 2,697
Earnings Per Share - Basic and diluted pence 104.62 218.23
Dividend Per Share pence 22.0 20.5
Gearing % Nil Nil
Richard Wollenberg, Chairman, commented:
"During the early part of the financial year the Thames Valley property market
experienced a recovery from previous low levels of activity. However, this did
not follow through for the remaining period to September this year as tenants
and investors were reluctant to commit to the property market resulting in a
marked downturn in new lettings and investment sales particularly in the
office sector.
Office, business unit and retail rents have been adversely affected by the
reduction in activity although at Windsor and Maidenhead, our business unit
rents have retained increases experienced over the past few years. Office
rents remain under pressure with "working from home" continuing to affect both
demand and occupancy.
Primarily as a result of rising interest rates, investment yields across the
commercial sector have increased placing pressure on capital values."
For further information:
The Cardiff Property plc Richard Wollenberg 01784 437444
Shore Capital Patrick Castle 020 7468 7923
THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY
AND ITS SUBSIDIARIES
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
Chairman's Statement
Dear Shareholder,
During the early part of the financial year the Thames Valley property market
experienced a recovery from previous low levels of activity. However, this did
not follow through for the remaining period to September this year as tenants
and investors were reluctant to commit to the property market resulting in a
marked downturn in new lettings and investment sales particularly in the
office sector.
Office, business unit and retail rents have been adversely affected by the
reduction in activity although at Windsor and Maidenhead, our business unit
rents have retained increases experienced over the past few years. Office
rents remain under pressure with "working from home" continuing to affect both
demand and occupancy.
Primarily as a result of rising interest rates, investment yields across the
commercial sector have increased placing pressure on capital values.
The Group's residential interests primarily in Bracknell benefitted from a
strong rental market. All apartments are let on Assured Shorthold Tenancy
Agreements which are renewed on an annual basis.
During the year the Group, including Campmoss our 47.62% Joint Venture,
completed a number of lettings mainly to existing tenants renewing leases.
Rent reviews where applicable were agreed at marginal increases.
Liaison with the Group's tenants which comprise mainly small businesses
remains a priority. The majority of retail tenants continued to trade during
the Covid period and have subsequently grown their businesses.
At The Priory, Burnham planning permission has been secured for a 75-bedroom
Care Home and several opportunities for the site are being pursued.
At Windsor and Maidenhead, planning proposals continue to be discussed with
the Local Authority and we are hopeful of a positive outcome. Shareholders
should recognise that planning costs have risen substantially as a result of
applications now requiring numerous independent reports. Planning lead in time
and response have lengthened considerably leading to increased costs and
uncertainties. The position is unlikely to improve in the short term.
FINANCIAL
For the year to 30 September 2023, the Group profit before tax was £1.3m
(2022: £2.7m). This includes a negative revaluation of £0.3m (2022: positive
revaluation £0.3m). Our share of after tax profit in Campmoss and its
subsidiary amounted to £0.53m (2022: £0.87m). The Company received a
dividend of £2.0m (2022: £3.0m) from its investment in Campmoss.
Revenue for the year which represented gross rental income, excluding
Campmoss, totalled £0.7m (2022: £0.7m).
The profit after tax attributable to shareholders for the financial year was
£1.11m (2022: £2.41m) and the earnings per share was 104.62p (2022:
218.23p).
At the year-end, the Company's commercial portfolio was valued by Kempton Carr
Croft at a total of £5.64m (2022: £5.97m). This valuation excludes the
company's freehold office property which was also valued by Kempton Carr Croft
and is included in the balance sheet at valuation classified as property,
plant and equipment. The decline in capital values is due to the rapid
increase in interest rates over the year.
Property when completed and retained for re-sale is held as stock at the lower
of cost or net realisable value. At the year-end this related to commercial
property at The Windsor Business Centre owned by First Choice Estates plc, the
Company's fully owned subsidiary and residential apartments held by Campmoss.
The Group's total property portfolio, including the jointly controlled
Campmoss group, was valued at £22.9m (2022: £22.3m).
The Company's share of the net assets of Campmoss group was £12.28m (2022:
£13.76m) this is after receipt of dividends from Campmoss of £2.0m (2022:
£3.0m).
The Group's total net assets as at the year-end were £29.98m (2022: £29.81m)
equivalent to £28.44 per share (2022: £27.56) an increase of 3.2% over the
year (2022: 8.1%). The Group, including Campmoss, has adequate financial
facilities and resources to complete works in progress as well as the
envisaged development programme. Cash balances are held on instant or
short-term deposit. At the year-end, the company had nil gearing (2022: nil).
During the year the company purchased and cancelled 27,977 (2022: 34,199)
ordinary shares at a total cost of £0.68m (2022: £0.79m).
The Company may hold in treasury any of its own shares purchased. This gives
the Company the ability to reissue treasury shares and provides greater
flexibility in the management of its capital base. At the year end the Company
held nil (2022: nil) shares in treasury. Any shares purchased by the Company
not held in treasury will be cancelled and the number of shares in issue
reduced accordingly.
The Company proposes to continue its policy of purchasing its own shares,
whether to be held in treasury or to be cancelled, and a resolution renewing
the directors' authority will be placed before the forthcoming Annual General
Meeting to be held on 18 January 2024. This authority will only be exercised
in circumstances where the Directors regard such purchases to be in the best
interests of shareholders as a whole. Full details are available on the
Company's website www.cardiff-property.com (http://www.cardiff-property.com) .
IFRS accounting requires that deferred tax is recognised on the difference
between, the cost of properties, including applicable indexation and quoted
investments and their current market value. However, IFRS accounting does not
require the same treatment in respect of the Group's unquoted investment in
Campmoss, our 47.62% owned joint venture, which represents a substantial part
of the company's net assets. Whilst provision is made in the Campmoss accounts
for deferred tax, should the shares held in Campmoss be disposed of, for
indicative purposes, based on the value in the Company's balance sheet at the
year-end this would result in a tax liability of £3.07m (2022: £3.44m)
equivalent to £2.91 (2022: £3.18) per share calculated using a tax rate of
25% (2022: 25%). This information is provided to shareholders as an additional
non-statutory disclosure.
DIVIDEND
The Directors recommend a final dividend of 16.0p per share (2022: 15.0p)
making a total dividend for the year of 22.0p (2022: 20.5p), an increase of
7.3%. The final dividend will be paid on 2 February 2024 to shareholders on
the register at 19 January 2024.
THE PROPERTY PORTFOLIO
The Group, including Campmoss, continues to concentrate its property
activities in the Thames Valley, primarily to the west of London, close to
Heathrow Airport and in Surrey, Berkshire and Buckinghamshire.
During the year the Company completed a number of new lettings in Maidenhead
whilst progressing development plans at Windsor.
The Campmoss group property portfolio is predominantly let reflecting an
active management policy. At The Priory, Stomp Road, Burnham a planning
permission was granted for a new 75-bedroom care home whilst retaining the
existing business centre. As mentioned earlier a number of opportunities are
being considered. The current value of The Priory has been increased to £4.9m
(2002: £4.3m).
The Groups property portfolio (including Campmoss) contains 43% retail, 7%
business units, 13% residential and 37% offices (by value).
During the year, the Group investigated a number of acquisitions in the Thames
Valley but in view of the uncertain market and economic conditions asking
prices were considered to be unviable and therefore no purchases took place.
FOCUS ON ESG
The Group has a strategy of providing our tenants with environmentally
sustainable and energy efficient and functional buildings when possible
bearing in mind physical and financial constraints.
A large part of our property portfolio is relatively new having been developed
by the Group within the last ten years. Where refurbishment has taken place
the management team have given thought to all aspects of ESG together with
related Health and Safety issues and implemented where viable and possible.
In respect of current planning applications design emphasis has been given
towards sustainability and green policies as well as being energy efficient.
Our aim is to create a good working environment and achieving a BREEAM rating
of very good.
We continue to consider how the business can contribute towards the government
policy of achieving a net zero economy. Due to the size of the business the
amount of carbon emissions is very much limited however we continue to monitor
and take appropriate action to reduce our impact on the climate.
The Company has included in this Annual Report climate-related financial
disclosures consistent with the TCFD's recommendations and eleven recommended
disclosures as required by LR 9.8.6 R (8).
QUOTED INVESTMENTS
The Company retains a small portfolio of quoted short-term retail bonds and
equity investments with the former providing an income stream. The value has
marginally decreased over the year and with the Retail Bond holdings
approaching their maturity dates the proceeds when reinvested should attract a
higher rate of return.
The quoted equity investments include Aquila Services Group plc (the UK's
largest affordable housing consultancy group) and Galileo Resources plc (a
mining exploration company). I remain a Non-Executive Director of both quoted
companies.
RELATIONSHIP AGREEMENT
The Company has in place a legally binding relationship agreement with myself,
its controlling shareholder, to address the requirements of LR9.2.2AD of the
Listing Rules.
MANAGEMENT AND TEAM
The Group's policy of close liaison with its tenants has been very challenging
and I therefore wish to take this opportunity to thank all members of our
small property team and our Joint Venture partners for their support and
achievements during the year.
OUTLOOK
The prospect of high interest rates remaining over the next few years and the
political and current economic uncertainty will inevitably limit any sustained
recovery in the property market. The Thames Valley continues to retain its
prime location status and should benefit from any recovery in the sector.
There are many factors that will determine the direction of the property
market over the next financial year, and I look forward to reporting further
progress at the half year stage.
J. Richard Wollenberg
Chairman
29 November 2023
Consolidated Income Statement
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2023 2022
£'000 £'000
Revenue 662 703
Cost of sales (52) (64)
Gross profit 610 639
Administrative expenses (569) (461)
Other operating income 646 574
Operating profit before fair value movement on investment
properties 687 752
Fair value (loss)/gain on investment properties (332) 299
Operating profit 355 1,051
Financial income 314 80
Financial expense (6) (8)
Profit on sale of investment properties - 706
Profit on the sale of investments 74 -
Share of profit of Joint Venture 525 868
Profit before taxation 1,262 2,697
Taxation (148) (291)
Profit for the financial year attributable to equity holders
1,114 2,406
Earnings per share on profit for the
financial year - pence
Basic and diluted 104.62 218.23
Dividends
Final 2022 paid 15.0p (2021: 13.5p) 161 150
Interim 2023 paid 6.0p (2022 5.5p) 64 60
225 210
Final 2023 proposed 16.0p (2022: 15.0p) 162 162
These results relate entirely to continuing operations.
Consolidated statement of comprehensive income and expense
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2023 2022
£'000 £'000
Profit for the financial year
1,114 2,406
Items that cannot be reclassified subsequently to profit or loss
Net change in fair value of other properties (10) 59
Net change in fair value of investments at fair value through comprehensive (37) (94)
income
Total comprehensive income and expense for the year attributable
to the equity holders of the Parent Company 1,067 2,371
Consolidated Balance Sheet
AT 30 SEPTEMBER 2023
2023 2023 2022 2022
£'000 £'000 £'000 £'000
Non-current assets
Freehold investment properties 5,655 5,985
Property, plant, and equipment 290 300
Right of use asset 135 145
Investment in Joint Venture 12,283 13,758
Other financial assets 778 898
19,141 21,086
Current assets
Inventory and work in progress 715 694
Trade and other receivables 274 223
Term deposits 10,384 4,041
Cash and cash equivalents 405 4,912
11,778 9,870
Total assets 30,919 30,956
Current liabilities
Trade and other payables (540) (599)
Corporation tax (162) (198)
(702) (797)
Non-current liabilities
Lease liability (165) (172)
Deferred tax liability (77) (175)
Total liabilities (944) (1,144)
Net assets 29,975 29,812
Equity
Called up share capital 210 216
Share premium account 5,076 5,076
Other reserves 2,409 2,450
Investment property fair value reserve 2,193 2,095
Retained earnings 20,087 19,975
Total equity 29,975 29,812
Net assets per share £28.44 £27.56
Consolidated Cash Flow Statement
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2023 2022
£'000
£'000
Cash flows from operating activities
Profit for the year 1,114 2,406
Adjustments for:
Depreciation right of use assets 10 10
Financial income (314) (80)
Financial expense 6 8
Profit on sale of investment property - (706)
Profit on sale of investments (74) -
Share of profit of Joint Venture (525) (868)
Fair value (loss)/gain on investment properties 332 (299)
Taxation 148 291
Cash flows from operations before changes in working capital 697 762
Acquisition of inventory and work in progress (21) (5)
(Increase)/decrease in trade and other receivables (67) (67)
(Decrease)/increase in trade and other payables (58) (128)
Cash generated from operations 551 562
Tax paid (268) (218)
Net cash flows from operating activities 283 344
Cash flows from investing activities
Interest received 314 81
Dividend from Joint Venture 2,000 3,000
Proceeds from sale of investment property - 1,000
Proceeds from bond redemption 80 -
Acquisition of investment property, and plant and equipment (2) (39)
Proceeds from sale of investments 79 81
Increase in held term deposits (6,343) (2,134)
Net cash flows from investing activities (3,872) 1,989
Cash flows from financing activities
Purchase of own shares (679) (791)
Lease payments (14) (14)
Dividends paid (225) (210)
Net cash flows (used in)/from financing activities (918) (1,015)
Net (decrease)/ increase in cash and cash equivalents (4,507) 1,318
Cash and cash equivalents at beginning of year 4,912 3,594
Cash and cash equivalents at end of year 405 4,912
Consolidated statement of changes in equity
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Called up share Share Other Investment Retained Total
capital
premium
reserves
property
earnings
equity
account
fair value
reserve*
£'000
£'000
£'000
£'000 £'000 £'000
At 30 September 2021 223 5,076 2,478 1,814 18,851 28,442
Profit for the year - - - - 2,406 2,406
Other comprehensive income - revaluation of investments - - (94) - - (94)
Net change in fair value of own use freehold property
-
-
59
-
-
59
Transactions with equity holders
Dividends - - - - (210) (210)
Purchase of own shares (7) - 7 - (791) (791)
Total transactions with equity holders (7) - 7 - (1,001) (1,001)
Fair value movements on investment properties - Cardiff - - - 299 (299) -
Disposal of property - Cardiff - - - (171) 171 -
Fair value movements on investment properties - Campmoss Group - - - 153 (153) -
At 30 September 2022 216 5,076 2,450 2,095 19,975 29,812
Profit for the year - - - - 1,114 1,114
Other comprehensive income - revaluation of investments - - (37) - - (37)
Net change in fair value of own use freehold property
-
-
(10)
-
-
(10)
Transactions with equity holders
Dividends - - - - (225) (225)
Purchase of own shares (6) - 6 - (679) (679)
Total transactions with equity holders (6) - 6 - (904) (904)
Fair value movements on investment properties - Cardiff - - - (332) 332 -
Deferred taxation on fair value movement on investment properties - Cardiff - - - 98 (98) -
Fair value movements on investment properties - Campmoss Group - - - 332 (332) -
At 30 September 2023 210 5,076 2,409 2,193 20,087 29,975
______ __ ____ ______ ______ ______ ___ ___
* - Includes fair value movements on investment properties held by Campmoss
Group, our Joint Venture, which are presented in investment property fair
value reserve to demonstrate these are unrealised.
Notes to the Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1. Basis of preparation
The consolidated results for the year ended 30 September 2023 and 2022 are
prepared in accordance with UK-adopted international accounting standards
("UK-adopted IAS") and those parts of the Companies Act 2006 applicable to
companies reporting under IFRS and have been incorporated into the principal
accounting policies.
The financial information set out above does not constitute the company's
statutory financial statements for the years ended 30 September 2023 or 30
September 2022 but is derived from those financial statements. Statutory
financial statements for 2021 have been delivered to the Registrar of
Companies and those for 2022 will be delivered in due course. The auditor has
reported on those financial statements; their reports were (i) unqualified,
(ii) did not include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying their report and (iii) did not
contain a statement under section 498 (2) or (3) of the Companies Act 2006 in
respect of the financial statements for 2023 nor 2022.
Going concern
The financial statements have been prepared on a going concern basis, which
assumes that the Group will continue to meet its liabilities as they fall due.
The Group's activities, together with the factors likely to affect its future
development, performance and position are set out in the Chairman's Statement
and Strategic Report. The financial position of the Group, its property
portfolio under management, asset base, liquidity and key performance
indicators.
The Group has sufficient financial resources to enable it to continue to trade
and to complete the current maintenance and development programme. The Group
is ungeared, and the cash flow forecasts do not assume any debt being
required. Therefore, the Directors believe that the Group is well placed to
manage its business risks successfully despite the current economic
uncertainty.
The Group is in the enviable position of having significant cash balances. At
30 September 2023, the Cardiff Group had cash balances of £0.4m and a further
£10.4m term deposits (generally with maturity dates of 95 days), in addition
the Company has investments of £0.8m of which £0.7m are readily marketable.
The Group has an operating cost base including tax and dividends of under £1m
per annum so even with no income for a number of years the Group would remain
solvent.
Notes to the Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2023 (continued)
The Cardiff Group receives a management fee from Campmoss of around £0.5m per
annum, there is no reason to assume this income would not be received as the
Campmoss Group had cash balances at 30 September 2023, of £6.5m and a further
£4.7m term deposits (generally with maturity dates of 95 days).
New, revised or changes to existing financial reporting standards
Subject to the adoption of the IFRS's available for application noted below,
this announcement is prepared on the basis of the accounting policies as set
out in the most recently published set of annual financial statements.
IFRS
A number of new standards and amendments to standards and interpretations have
been issued but are not yet effective for the current accounting period.
None are expected to have a material impact on the consolidated financial
statements of the Group.
2. Segmental analysis
The Group manages its operations in two segments, being property and other
investment and property development. Property and other investment relates to
the results for The Cardiff Property Company Limited where properties are held
as investment property with Property Development relating to the results of
First Choice Estates Plc and Thames Valley Retirement Homes Limited. 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 results
and net operating assets for each reportable segment are set out below:
Property and other investment Property Development Eliminations 2023
Total
£'000 £'000 £'000 £'000
Rental income (wholly in the UK) 436 226 - 662
Profit before taxation 829 433 - 1,262
Net operating assets
Assets 28,854 5,246 (3,181) 30,919
Liabilities (3,882) (243) 3,181 (944)
Net assets 24,972 5,003 - 29,975
Notes to the Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2023 (continued)
Property and other investment Property Development Eliminations 2022
Total
£'000 £'000 £'000 £'000
Rental income (wholly in the UK) 494 209 - 703
Property sales 706 - - 706
Profit before taxation 2,433 264 - 2,697
Net operating assets
Assets 27,006 5,038 (1,088) 30,956
Liabilities (1,936) (296) 1,088 (1,144)
Net assets 25,070 4,742 - 29,812
"Eliminations" relate to inter segment transactions and balances which
cannot be specifically allocated but are eliminated on consolidation.
3. Earnings per share
Earnings per share has been calculated in accordance with IAS 33 - Earnings
Per Share using the profit after tax for the financial year of £1,114,000
(2022: £2,406,000) and the weighted average number of shares as follows:
Weighted average
number of shares
2023 2022
Basic and diluted shares 1,064,204 1,102,357
104.62 218.23
Earnings per share (p)
There is no difference between basic and diluted shares as the Company has no
potentially dilutive instruments in issue.
Financial Calendar
30 November 2023 Results announced for the year ended 30
September 2023
18 January 2024 Annual General Meeting
18 January 2024 Ex-dividend date for the final
dividend
19 January 2024 Record date for the final dividend
2 February 2024 Final dividend to be paid
May 2023 Interim results
for 2024 to be announced
30 September 2024 Year end
Directors and Advisers
Directors Statutory Auditor
J Richard Wollenberg MHA
Chairman and chief executive
Karen L Chandler FCA
Finance director Stockbrokers and financial adviser
Shore Capital
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
Charsley Harrison LLP
Head office Registrar and transfer office
56 Station Road Neville Registrars Ltd
Egham Neville House
Surrey TW20 9LF Steelpark Road
Telephone: 01784 437444 Halesowen
Fax: 01784 439157 B62 8HD
E-mail: webmaster@cardiff-property.com Telephone: 0121 585 1131
Website: www.cardiff-property.com
Registered office Registered number
56 Station Road 00022705
Egham
Surrey TW20 9LF
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR FELESUEDSESFRecent news on Cardiff Property
See all newsREG - Cardiff Property PLC - Half-year Report
AnnouncementREG - Cardiff Property PLC - Transaction in Own Shares
AnnouncementREG - Cardiff Property PLC - Transaction in Own Shares
AnnouncementREG - Cardiff Property PLC - Result of AGM
AnnouncementREG - Cardiff Property PLC - Transaction in Own Shares
Announcement