REG - Cardiff Property PLC - Final Results
28/11/2024 07:00
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RNS Number : 9318N Cardiff Property PLC 28 November 2024
THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY
AND ITS SUBSIDIARIES
LEI: 213800GE3FA4C52C1N05
FOR RELEASE 7.00 AM 28 November 2024
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 2024
Highlights:
2024 2023
Net Assets £'000 30,423 29,975
Net Assets Per Share £ 29.31 28.44
Profit Before Tax £'000 1,385 1,262
Earnings Per Share - Basic and diluted pence 102.75 104.62
Dividend Per Share pence 23.5 22.0
Gearing % Nil Nil
Richard Wollenberg, Chairman, commented:
"During the year activity in the Thames Valley commercial property market has
continued to show some signs of recovery albeit at a slow pace.
The Group including Campmoss owns a retail portfolio primarily located in
Bracknell (Berkshire), and Egham (Surrey), which has shown resilience with
minimal turnover of tenants, the majority having traded for a number of years.
Lease renewals have been agreed at existing levels whilst the Group has
benefitted from previously agreed fixed annual rental increases.
Commercial property investment yields have remained similar to last year and
it is encouraging to note that the market has seen a number of investment
sales recently completed without any further decline in values. Tenant
enquiries have increased with recent lettings at our office property in Egham
Surrey at levels including a small increase in rental levels."
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 2024
Chairman's Statement
Dear Shareholder,
During the year activity in the Thames Valley commercial property market has
continued to show some signs of recovery albeit at a slow pace.
The Group including Campmoss owns a retail portfolio primarily located in
Bracknell (Berkshire), and Egham (Surrey), which has shown resilience with
minimal turnover of tenants, the majority having traded for a number of years.
Lease renewals have been agreed at existing levels whilst the Group has
benefitted from previously agreed fixed annual rental increases.
Commercial property investment yields have remained similar to last year and
it is encouraging to note that the market has seen a number of investment
sales recently completed without any further decline in values. Tenant
enquiries have increased with recent lettings at our office property in Egham
Surrey at levels including a small increase in rental levels.
All business units at the Maidenhead Enterprise Centre, Maidenhead are now
occupied with two new medium-term lettings agreed with slightly increased
rentals.
The Thames Valley residential market remains firm with all leasehold
apartments held by the Group let on Assured Shorthold Tenancy Agreements.
Renewals or new lettings have achieved a marginal rental increase.
Detailed negotiations in respect of the Group's planning applications at The
Priory, Burnham, Highway House, Maidenhead and Tangley Place, Guildford,
continued throughout the year. As mentioned last year planning costs continue
to spiral as a result of additional reports being required and subsequent
delays. The planning process has become immersed in paperwork and must be
simplified if new development is to take place. To date there has been no
obvious impact from the new government's desire to enhance the system.
FINANCIAL
For the year to 30 September 2024 the Group profit before tax was £1.4m
(2023: £1.3m). This includes a negative revaluation of £0.02m (2023:
£0.3m). Our share of profit after tax in Campmoss and its subsidiary amounted
to £0.14m (2023: £0.53m), with the reduction primarily due to negative
property revaluation of £0.12m (2023: positive revaluation £0.35m). The
Company received a dividend of £1.0m (2023: £2.0m) from its investment in
Campmoss. In October 2024 Campmoss declared a further dividend of £3.15m of
which the Company will receive £1.5m.
Revenue for the year which represented gross rental income, excluding
Campmoss, totalled £0.7m (2023: £0.7m).
The profit after tax attributable to shareholders for the financial year was
£1.07m (2023: £1.11m) and the earnings per share was 102.76p (2023:
104.62p).
At the year-end, the Company's commercial portfolio was valued by Kempton Carr
Croft at a total of £5.63m (2023: £5.64m) 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 and classified as property,
plant and equipment. The marginal decline in capital values is due to market
uncertainty around the continuing impact of higher interest rates.
Property when completed and retained for re-sale is held as inventory 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 Developments Limited.
The Group's total property portfolio, including the jointly controlled
Campmoss group, was valued at £22.9m (2023: £22.9m).
The Company's share of the net assets of Campmoss group was £11.42m (2023:
£12.28m). The reduction in value is due to dividends paid by Campmoss of
£2.15m of which £1.0m was paid to Cardiff (2023: £2.0m).
The Group's total net assets as at the year-end were £30.42m (2023: £29.98m)
equivalent to £29.31 per share (2023: £28.44) an increase of 3.1% over the
year (2023: 3.2%). The Group, including Campmoss, has adequate financial
facilities and resources to complete works in progress. Cash balances are held
on instant or short-term deposit. At the year-end, the Company had nil gearing
(2023: nil).
During the year the Company purchased and cancelled 16,034 (2023: 27,977)
ordinary shares at a total cost of £0.37m (2023: £0.68m). 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 (2023:
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 16 January 2025. 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 of the AGM are available on
the Company's website www.cardiff-property.com
(https://url.avanan.click/v2/___http:/www.cardiff-property.com___.YXAxZTpzaG9yZWNhcDphOm86YTBlNzc3ZTE3MWM4OWIwNjEwM2ZlYzRkNmI5OTg2NDY6Njo5ODA0OmFlZGNmZDBkYjIwYWJlNzBkZmYwOTdjYjhiODJkMjk3MTA4YzBkMGM1MTJmYmQ4ZDVhZjNjM2QyYjY2MTE2ODc6cDpGOk4)
.
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 in Campmoss be disposed of, for indicative
purposes only and based on the value in the Company's balance sheet at the
year-end this would result in a tax liability of £2.86m (2023: £3.07m)
equivalent to £2.75 (2023: £2.91) per share calculated using a tax rate of
25% (2023: 25%). This information is provided to shareholders as an additional
non-statutory disclosure.
DIVIDEND
The Directors recommend a final dividend of 17.0p per share (2023: 16.0p)
making a total dividend for the year of 23.5p (2023: 22.0p), an increase of
6.8%. The final dividend will be paid on 31 January 2025 to shareholders on
the register as at 18 January 2025.
THE PROPERTY PORTFOLIO
The Group continues to concentrate its property activities in the Thames
Valley, close to Heathrow Airport and in the surrounding counties of Surrey,
Berkshire and Buckinghamshire.
During the year the Company completed a number of new lettings at the
Maidenhead Enterprise Centre, Maidenhead and The White House, Egham. The
renewal of an office planning consent at The Windsor Business Centre, Windsor
was finally received towards the end of the financial year although in view of
market conditions existing leases will remain and no redevelopment is
envisaged. Following a lease expiry at Windsor one business unit has
recently become available for letting. The individual units remain available
for sale.
Campmoss continues to pursue various planning applications including an
affordable housing scheme at Highway House in Maidenhead, a care home
development at Tangley Place, Guildford and a revised care home scheme at The
Priory, Burnham. A number of new opportunities were considered but no
acquisitions were made during the year.
The Group's property portfolio, including Campmoss, contains 43.1% retail,
6.4% business units, 13.3% residential and 37.2% offices (by value).
FOCUS ON ENVIROMENTAL, SOCIAL AND GOVERNANCE ("ESG")
The Group maintains close contact with its Tenants and has a strategy of
providing environmentally sustainable, energy efficient and functionable
buildings bearing in mind physical and financial constraints.
Although no re-development or major refurbishment projects have been
undertaken during the year aspects of ESG together with related Health and
Safety issues are implemented where viable and possible.
The Group's Planning Applications emphasise modern design and include
sustainability and green policies as well as being energy efficient. Our aim
is to create a good working environment and achieve a BREEAM rating of Very
Good.
We have developed the majority of our property portfolio and together with our
tenants continue to take appropriate action to reduce carbon emissions and the
impact on the environment. We view our properties as both contributing to the
local economy and providing householders with decent living facilities.
INVESTMENTS
The Company retains a small portfolio of short-term retail bonds and equity
investments. The value has marginally decreased over the year although the
former provides a steady income stream.
The equity investments include Aquila Services Group plc (the UK's largest
affordable housing consultancy group) and Galileo Resources plc (a mining
exploration company with assets primarily in Zambia). I remain a non-executive
director of both companies.
RELATIONSHIP AGREEMENT
The Company has entered a legally binding relationship agreement with myself,
its controlling shareholder, to address the requirements of LR5.3.1 of the
Listing Rules.
MANAGEMENT AND TEAM
Property Management is becoming far more intensive and challenging, and I
would therefore take this opportunity to thank all members of our small
property team and our Joint Venture partner for their support and achievements
over the year.
OUTLOOK
As I write this report the effects of the Chancellors recent budget and
financial statements are still being quantified. There is no doubt that many
tenants and investors withdrew from the property market over the past few
months awaiting the outcome of new tax and investment policies. The cauldron
of measures announced will be unhelpful to the property market. Investors and
the business community will no doubt form their own conclusions over the
coming months. I remain of the view that any major reductions in interest
rates will take longer than anticipated.
The year ahead will have its challenges and I look forward to reporting
further at the half year.
J. Richard Wollenberg
Chairman
27 November 2024
Consolidated Income Statement
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2024 2023
£'000 £'000
Revenue 683 662
Cost of sales (98) (52)
Gross profit 585 610
Administrative expenses (594) (569)
Other operating income 676 646
Operating profit before fair value movement on investment
properties 667 687
Fair value (loss)/gain on investment properties (23) (332)
Operating profit 644 355
Financial income 608 314
Financial expense (7) (6)
Profit on sale of investment properties - -
Profit on the sale of investments - 74
Share of profit of Joint Venture 140 525
Profit before taxation 1,385 1,262
Taxation (314) (148)
Profit for the financial year attributable to equity holders
1,071 1,114
Earnings per share on profit for the
financial year - pence
Basic and diluted 102.76 104.62
Dividends
Final 2023 paid 16.0p (2022: 15.0p) 168 161
Interim 2024 paid 6.5p (2023 6.0p) 67 64
235 225
Final 2024 proposed 17.0p (2023: 16.0p) 178 162
These results relate entirely to continuing operations.
Consolidated statement of comprehensive income and expense
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2024 2023
£'000 £'000
Profit for the financial year
1,071 1,114
Items that cannot be reclassified subsequently to profit or loss
Net change in fair value of other properties (5) (10)
Net change in fair value of investments at fair value through comprehensive (15) (37)
income
Total comprehensive income and expense for the year attributable
to the equity holders of the Parent Company 1,051 1,067
Consolidated Balance Sheet
AT 30 SEPTEMBER 2024
2024 2024 2023 2023
£'000 £'000 £'000 £'000
Non-current assets
Freehold investment properties 5,640 5,655
Property, plant, and equipment 287 290
Right of use asset 125 135
Investment in Joint Venture 11,423 12,283
Other financial assets 664 778
18,139 19,141
Current assets
Inventory and work in progress 722 715
Trade and other receivables 317 274
Term deposits 10,235 10,384
Cash and cash equivalents 2,014 405
13,288 11,778
Total assets 31,427 30,919
Current liabilities
Trade and other payables (587) (540)
Corporation tax (182) (162)
(769) (702)
Non-current liabilities
Lease liability (158) (165)
Deferred tax liability (77) (77)
Total liabilities (1,004) (944)
Net assets 30,423 29,975
Equity
Called up share capital 208 210
Share premium account 5,076 5,076
Other reserves 2,391 2,409
Investment property fair value reserve 2,049 2,193
Retained earnings 20,699 20,087
Total equity 30,423 29,975
Net assets per share £29.31 £28.44
Consolidated Cash Flow Statement
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2024 2023
£'000
£'000
Cash flows from operating activities
Profit for the year 1,071 1,114
Adjustments for:
Depreciation right of use assets 10 10
Financial income (608) (314)
Financial expense 7 6
Profit on sale of investments - (74)
Share of profit of Joint Venture (140) (525)
Fair value (loss)/gain on investment properties 23 332
Taxation 314 148
Cash flows from operations before changes in working capital 677 697
Acquisition of inventory and work in progress (7) (21)
Increase in trade and other receivables (43) (67)
Increase/(decrease) in trade and other payables 47 (58)
Cash generated from operations 674 551
Tax paid (293) (268)
Net cash flows from operating activities 381 283
Cash flows from investing activities
Interest received 593 314
Dividend from Joint Venture 1,000 2,000
Proceeds from bond redemption - 80
Acquisition of investment property (8) (2)
Acquisition of plant and equipment (2) -
Proceeds from sale of investments 99 79
Decrease/(increase) in held term deposits 149 (6,343)
Net cash flows from investing activities 1,831 (3,872)
Cash flows from financing activities
Purchase of own shares (368) (679)
Lease payments - (14)
Dividends paid (235) (225)
Net cash flows (used in)/from financing activities (603) (918)
Net increase/(decrease) in cash and cash equivalents 1,609 (4,507)
Cash and cash equivalents at beginning of year 405 4,912
Cash and cash equivalents at end of year 2,014 405
Consolidated statement of changes in equity
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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 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 - - - 299 (299) -
Disposal of property - Cardiff - - - (171) 171 -
Fair value movements on investment properties - Campmoss Group - - - 153 (153) -
At 30 September 2023 210 5,076 2,409 2,193 20,087 29,975
Profit for the year - - - - 1,071 1,071
Other comprehensive income - revaluation of investments - - (15) - - (15)
Net change in fair value of own use freehold property
-
-
(5)
-
-
(5)
Transactions with equity holders
Dividends - - - - (235) (235)
Purchase of own shares (2) - 2 - (368) (368)
Total transactions with equity holders (2) - 2 - (603) (603)
Fair value movements on investment properties - Cardiff - - - (23) 23 -
Fair value movements on investment properties - Campmoss Group - - - (121) 121 -
At 30 September 2024 208 5,076 2,391 2,049 20,699 30,423
______ __ ____ ______ ______ ______ ___ ___
* - 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 2024
1. Basis of preparation
The consolidated results for the year ended 30 September 2024 and 2023 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 2024 or 30
September 2023 but is derived from those financial statements. Statutory
financial statements for 2023 have been delivered to the Registrar of
Companies and those for 2024 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 2024 nor 2023.
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 2024, the Cardiff Group had cash balances of £2.0m and a further
£10.2m term deposits (generally with maturity dates of 95 days), in addition
the Company has investments of £0.7m of which £0.6m are readily marketable.
The Group has an operating cost base including tax and dividends of under
£1.0m per annum so even with no income for a number of years the Group would
remain solvent.
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 2024, of £6.3m and a further
£3.1m 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.
Notes to the Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2024 (continued)
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 2024
Total
£'000 £'000 £'000 £'000
Rental income (wholly in the UK) 460 223 - 683
Financial income 602 6 - 608
Share of profit of Joint Venture 62 78 - 140
Profit before taxation 1,073 312 - 1,385
Net operating assets
Assets 30,504 5,388 (4,465) 31,427
Liabilities (5,259) (210) 4,465 (1,004)
Net assets 25,245 5,178 - 30,423
Property and other investment Property Development Eliminations 2023
Total
£'000 £'000 £'000 £'000
Rental income (wholly in the UK) 436 226 - 662
Property sales 829 433 - 1,262
Financial income 267 47 - 314
Share of profit of Joint Venture 425 100 525
Profit before taxation
Net operating assets 28,854 5,246 (3,181) 30,919
Assets (3,882) (243) 3,181 (944)
Liabilities 436 226 - 662
Net assets 24,972 5,003 - 29,975
"Eliminations" relate to inter segment transactions and balances which
cannot be specifically allocated but are eliminated on consolidation.
Notes to the Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2024 (continued)
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 £1,071,000
(2023: £1,114,000) and the weighted average number of shares as follows:
Weighted average
number of shares
2024 2023
Basic and diluted shares 1,043,087 1,064,204
102.76 104.62
Earnings per share (p)
There is no difference between basic and diluted shares as the Company has no
potentially dilutive instruments in issue.
Notes to the Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2024 (continued)
Financial Calendar
28 November 2024 Results announced for the year ended 30
September 2024
17 January 2025 Annual General Meeting
17 January 2025 Ex-dividend date for the final
dividend
18 January 2025 Record date for the final dividend
31 January 2025 Final dividend to be paid
May 2025 Interim results
for 2025 to be announced
30 September 2025 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
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