REG - Circle Property PLC - Half-year Report
07/12/2022 07:00
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RNS Number : 8215I Circle Property PLC 07 December 2022
7 December 2022
Circle Property Plc
("Circle", the "Company" or the "Group")
Interim Results for the six months ended 30 September 2022
DIVESTMENT PROGRAMME CONTINUES
Circle Property Plc (AIM: CRC) is pleased to announce interim results for the
six months ended 30 September 2022.
John Arnold, Chief Executive of Circle Property Plc, said:
"We continue to progress our divestment strategy with a view to returning the
net proceeds to shareholders.
The more challenging macroeconomic backdrop impacted the broader property
investment market after the period. This has meant our rate of sales has
slowed in recent months from the expedited rate achieved earlier in the year
and pricing has also been softer. Nevertheless, we are still able to divest
assets successfully and remain steadfast in generating the best value possible
for shareholders.
Circle is debt free following these well-timed asset disposals and still
expects to make the first capital distribution to shareholders in Q1 2023."
Highlights
· Approximately 60% of the property portfolio, by value, has been
disposed of since the announcement of the divestment strategy in February
2022.
· Proven track record of divesting assets at prices in excess of
book valuations to extract maximum value, albeit not at historical premiums
during the reported period due to the weakened property market.
· The Group's loan facility was repaid in full in June 2022,
leaving the Group debt free.
· At the period end, the Group's cash balance was £21 million,
ahead of an expected return of capital to shareholders in Q1 2023.
· Unaudited net asset value ("NAV") of £2.73 per share as at 30
September 2022 (31 March 2022: £2.81; 30 September 2021: £2.74).
· Asset management continues with the refurbishment of K3 Kents Hill,
Milton Keynes. Due to the evolving requirements of the tenant, refurbishment
costs have increased from approximately £2.2 million to approximately £2.7
million and completion is expected to take place in December 2022.
Post period end
· On 6 October 2022, the Group completed the sale of Elizabeth
House, Staines for a consideration of £3.5 million.
· On 23 November 2022, the Group exchanged contracts for the sale of
Somerset House, Birmingham for a consideration of £15.180 million. Completion
is expected to take place by the end of February 2023.
· The letting of K3, Kents Hill Business Park was completed and the
sale at £4.5 million is expected to complete before the end of December 2022.
Outlook
· Post period, the disposals below valuation and the issue of 918,793
Ordinary Shares to the Executives under the Company's LTIP announced in
October 2022 (the "LTIP Shares"), has impacted the current estimated NAV per
share. The issue of the LTIP Shares had a negative dilutive effect on the
current estimated NAV of 9 pence per share, reducing it to £2.64.
· In addition, due to challenging market conditions, the Board
anticipates that by the end of the sales programme, the estimated NAV is
expected to reduce further. Further announcements will be made as appropriate,
as and when further disposals are made.
· Confident in delivering further asset sales to maximise returns,
albeit selling into a more difficult investment market.
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the EU
Market Abuse Regulation (2014/596) which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended and supplemented from time to
time.
Circle Property Plc +44 (0)207 930 8503
John Arnold, CEO
Edward Olins, COO
Cenkos Securities +44 (0) 207 397 8900
Katy Birkin
Mark Connelly
George Lawson
Radnor Capital Partners +44 (0) 203 897 1830
Joshua Cryer
Iain Daly
Camarco +44 (0) 203 757 4992
Ginny Pulbrook
Rosie Driscoll
Toby Strong
About Circle Property Plc
Circle is not a Real Estate Investment Trust (REIT) and has historically
actively recycled proceeds from asset sales into its refurbishment and
redevelopment pipeline to generate attractive total returns. Since February
2022, the Group has embarked on an orderly break-up of the portfolio to return
maximum value to shareholders.
Chief Executive's Statement
The property market reached record highs in certain sectors earlier in 2022.
However, this has since reversed as a consequence of elevated inflation,
market uncertainty, the war in Ukraine, the rising cost of capital and other
macroeconomic challenges.
Although the property market has weakened considerably after the reported
period, we are pleased that the majority of the properties were sold into a
more receptive market earlier in the year. We moved quickly following the
announcement of the divestment strategy, taking advantage of a buoyant market
for regional offices, achieving prices in excess of book valuations. As a
result, we expect the aggregate of all disposal prices to be in the region of
95% of the March 2022 valuations when regional office valuations were at their
peak.
Disposals during the period included the completion of the sale of K1 & K2
at Kents Hill Business Park, Milton Keynes ("Kents Hill") in August 2022 at a
price of £12.73 million, with a further payment of £4.5 million agreed for
K3 following completion of the contracted letting to Kuehne+Nagel
(subsequently let on 30 November 2022) and expected to complete by the end of
December 2022. Moreover, Cheltenham House, Birmingham sold for £4.664 million
(completed September 2022) and 720 Aztec West in Bristol sold for £2.52
million (completed May 2022).
The occupational market is challenging but our office portfolio has continued
to benefit from workers returning to the workplace, with occupancy and usage
high. Consequently, rent collection is no longer a topic as it was during the
period of the pandemic, with rent collection at expected levels. The Group's
active asset management approach has enabled us to capture demand, lease
vacant space and deliver growth, at K3 Kents Hill, where we have added
additional refurbishment capex in to meet the requirements of the incoming
tenant.
As we further progress against our programme of asset disposals, the Board
remains committed to maximising returns and delivering value to shareholders.
Given the divestment strategy and plans for two returns of capital directly to
shareholders, with the first expected in Q1 2023, the Board has resolved that
there will be no interim dividend.
It is the Board's intention to liquidate all the remaining assets before the
end of our current financial year, so long as there remains interested buyers
at respectable pricing levels.
Condensed consolidated statement of comprehensive income
for the 6 months ended 30 September 2022
6 months to 6 months to 12 months to
30 September
30 September
31 March
2022
2021
2022
Note (unaudited) (unaudited) (audited)
£ £ £
Rental income 4 2,416,643 3,233,143 7,458,236
Other income 4 418,168 983,509 1,581,773
2,834,811 4,216,652 9,040,009
Property expenses 5 (643,672) (1,219,063) (2,082,925)
Net rental income 2,191,139 2,997,589 6,957,084
Administrative expenses 6 (978,252) (944,649) (3,583,744)
Operating profit 1,212,887 2,052,940 3,373,340
(Loss)/gain on disposal of investment properties (1,683,575) 599,446 2,070,908
(Loss)/gain on revaluation of investment properties 11 (1,074,273) (1,300,804) 1,837,721
Operating (loss)/profit after revaluation of investment properties (1,544,961) 1,351,582 7,281,969
Finance income 7 43,883 26 192
Finance costs 8 (444,191) (760,934) (1,488,907)
Net finance costs (400,308) (760,908) (1,488,715)
(Loss)/profit for the period/year before taxation (1,945,269) 590,674 5,793,254
Taxation 9 446,383 (156,562) (1,425,337)
Total comprehensive (loss)/profit for the period/year (1,498,886) 434,112 4,367,917
(Loss)/earnings per share 10 (0.05) 0.02 0.15
NAV per share 2.73 2.74 2.81
There is no comprehensive income other than that included in the loss for the
period. All of the loss for the period is attributable to the owners of the
Company.
All items in the above statement derive from continuing operations.
Condensed consolidated statement of financial position
as at 30 September 2022
Note 30 September 2022 30 September 2021 31 March
2022
(unaudited) (unaudited) (audited)
£ £ £
Non-current assets
Investment properties 11 27,496,279 99,243,539 32,399,476
Right of use assets 61,959 2,316 75,728
Property plant and equipment 54,344 52,940 49,025
Lease incentives and receivables 13 771,372 9,966,711 1,350,524
Deferred tax asset 564,030 1,191,464 406,612
28,947,984 110,456,970 34,281,365
Current assets
Investment properties 11 20,328,627 - 39,994,194
Lease incentives and receivables 13 3,859,460 2,731,180 3,858,790
Assets held for sale 12 6,400,000 20,000,000 2,200,000
Cash and cash equivalents 20,892,395 8,566,762 25,303,400
51,480,482 31,297,942 71,356,384
Total assets 80,428,466 141,754,912 105,637,749
Equity
Stated capital 42,542,179 42,542,179 42,542,179
Treasury share reserve 1,047,684 1,170,961 1,047,684
Retained earnings 33,570,840 33,866,695 36,060,113
Total equity 77,160,703 77,579,835 79,649,976
Non-current liabilities
Loan borrowings 14 - 60,249,656 -
Trade and other payables 15 1,247,814 - 1,055,871
Lease liabilities for right of use assets 34,393 - 47,398
Deferred tax liability 540,353 379,226 923,046
1,822,560 60,628,882 2,026,315
Current liabilities
Trade and other payables 15 1,419,603 3,539,026 2,631,128
Loan borrowings 14 - - 21,305,537
Lease liabilities for right of use assets 25,600 7,169 24,793
1,445,203 3,546,195 23,961,458
Total liabilities 3,267,763 64,175,077 25,987,773
Total liabilities and equity 80,428,466 141,754,912 105,637,749
The condensed consolidated interim financial statements were approved by the
Board of Directors on 6 December 2022.
Condensed consolidated statement of changes in equity
for the 6 months ended 30 September 2021
Stated Treasury share capital Share-based payment reserve Retained earnings Total
capital
£ £ £ £ £
As at 1 April 2021 42,162,178 380,001 1,047,684 33,814,453 77,404,316
Profit for the period - - - 1,184,112 1,184,112
Share-based payments - - 123,277 - 123,277
Dividends - - - (1,131,870) (1,131,870)
As at 30 September 2021 42,162,178 380,001 1,170,961 33,866,695 77,579,835
Loss for the period - - - 3,183,805 3,183,805
Share-based payments - - 314,618 - 314,618
Reclassification - - (437,895) - (437,895)
Dividends - - - (990,387) (990,387)
As at 31 March 2022 42,162,178 380,001 1,047,684 36,060,113 79,649,976
Loss for the period - - - (1,498,886) (1,498,886)
Dividends - - - (990,387) (990,387)
As at 30 September 2022 42,162,178 380,001 1,047,684 33,570,840 77,160,703
Condensed consolidated statement of cash flows
for the 6 months ended 30 September 2022
6 months to 6 months to 12 months to
30 September
30 September
31 March
2022
2021
2022
(unaudited) (unaudited) (audited)
£ £ £
Cash flows from operating activities
(Loss)/profit for the period before taxation (1,945,269) 1,340,674 5,793,254
Adjustments for:
Finance income (43,883) (26) (192)
Finance expense 444,191 760,934 1,488,907
Depreciation 9,241 7,785 16,715
Amortisation of right of use assets 13,769 18,700 30,196
Loss/(gain) on revaluation of investment properties 1,074,273 1,300,804 (1,837,721)
Loss/(gain) on disposal of investment properties 1,683,575 (599,446) (2,070,908)
Gain on revaluation of assets held for sale - (750,000) -
Share based payments - 123,277 437,895
(Increase)/decrease in trade and other receivables (246,335) 412,560 (207,344)
(Decrease)/increase in trade and other payables (762,424) (334,478) 17,065
Cash (used in)/from operating activities 227,138 2,280,784 3,667,867
Interest paid (401,743) (655,725) (1,332,610)
Interest received 20,161 26 192
Taxation paid - - (480,779)
Net cash (used in)/from operating activities (154,444) 1,625,085 1,854,670
Cash flows from investing activities
Cost of refurbishment of investment properties (1,497,510) (1,084,488) (2,089,004)
Proceeds from disposal of investment properties 19,866,425 3,436,621 61,009,583
Cost of additions of property plant and equipment (14,561) (6,315) (11,330)
Net cash from investing activities 18,354,354 2,345,818 58,909,249
Cash flows from financing activities
Repayment of borrowings (21,480,656) (1,775,000) (40,819,344)
Payment of lease liabilities (14,430) (20,075) (41,722)
Dividends paid (990,387) (1,131,870) (2,122,257)
Net cash used in financing activities (22,485,473) (2,926,945) (42,983,323)
Net (decrease)/increase in cash and cash equivalents (4,285,563) 1,043,958 17,780,596
Cash and cash equivalents at the beginning of the period 25,303,400 7,522,804 7,522,804
Cash and cash equivalents at the end of the period 21,017,837 8,566,762 25,303,400
Notes to the condensed consolidated interim financial statements
for the 6 months ended 30 September 2022
1 General information
These condensed consolidated interim financial statements are for Circle
Property Plc ("the Company") and its subsidiary undertakings (together
referred to as the "Group").
The Company's shares are admitted to trading on AIM, a market operated by the
London Stock Exchange plc. The Company is domiciled and registered in Jersey,
Channel Islands. The address of its registered office is 3rd Floor, IFC5,
Castle Street, St Helier, Jersey, JE2 3BY.
The nature of the Company's operations and its principal activities are that
of property investment in the UK.
2 Principal accounting policies
Basis of preparation
The condensed consolidated interim financial statements are prepared under the
historical cost convention, on a basis other than going concern basis and in
accordance with International Financial Reporting Standards and IFRIC
interpretations adopted for use in the UK ("IFRS") and with those parts of the
Companies (Jersey) Law, 1991 applicable to companies preparing their accounts
under IFRS.
The condensed consolidated interim financial statements contained in this
document do not constitute statutory accounts under Companies (Jersey) Law
1991. In the opinion of the directors, the condensed consolidated interim
financial statements for this period fairly presents the financial position,
result of operations and cash flows for this period.
The condensed consolidated interim financial statements have not been audited,
nor have they been reviewed by the Company's auditors in accordance with the
International Standard on Review Engagements 2410 issued by the Auditing
Practices Board.
Statutory financial statements for the year ended 31 March 2022 were approved
by the Board of Directors on 15 July 2022. The report of the auditors on those
financial statements was unqualified, however, the report included an emphasis
of matter on the non-going concern basis preparation of the Company.
Statement of compliance
The Interim Report includes the consolidated interim financial statements
which have been prepared in accordance with International Accounting Standard
34 'Interim Financial Reporting'. The condensed interim financial statements
should be read in conjunction with the annual financial statements for the
year ended 31 March 2022, which have been prepared in accordance with IFRS as
adopted by the United Kingdom and applicable law.
Going concern
In February 2022, the Group provided an update on its future strategy whereby
it would make targeted property sales, whilst investing in and actively
managing the remainder of the property portfolio, over an extended period of
two to three years. The proceeds of the future disposals were to be utilised
to continue to reduce borrowings with the remaining proceeds to be returned to
shareholders in an orderly and efficient manner.
Due to the Group's intention to pursue this revised strategy, the interim
financial statements have been prepared on a basis other than going concern.
In preparing the financial statements on an alternate basis, the Board has
continued to apply the requirements of IFRS taking into account that the Group
is not intended to continue as a going concern in the foreseeable future.
This has resulted in a reclassification of investment properties and
associated lease incentive assets that are expected to be disposed of in the
period ending 30 September 2023 as current assets in accordance with IAS 1.
There has been no impact on the measurement of assets and liabilities as at
30 September 2022. No additional provisions have been recognised as at 30
September 2022 in relation to the costs expected to be incurred in winding
down the Group's operations.
The remainder of the property portfolio continues to be actively managed with
strong rental collections and the timely recovery of any arrears. In assessing
the Group's ability to continue operating, the Group's cash forecasts have
been modelled based on the circumstances of each tenant on an individual basis
and all envisaged development expenditure has been accounted for. Rental
collections continue to be monitored on a monthly basis with payment plans
agreed for the collection of overdue amounts.
New Standards adopted at 1 January 2022
There are no accounting pronouncements which have become effective from 1
January 2022 that have a significant impact on the Group's interim condensed
consolidated financial statements.
Significant accounting policies
The accounting policies applied by the Group in these half-yearly results are
the same as those applied by the Group in its consolidated financial
information in its 2022 Annual Report and Accounts.
Areas of estimates and judgement
In preparing these condensed consolidated interim financial statements,
management has made judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets and
liabilities, income, and expenses. Actual results may differ from these
estimates.
The judgements, estimates and assumptions applied in the Group's consolidated
interim financial statements, including the key sources of estimation
uncertainty, were the same as those applied in the Group's last annual
financial statements for the year ended 31 March 2022.
3 Operating segments
During the period the Group operated in one geographical segment, which is the
United Kingdom, and one reporting segment, which is investment in commercial
property. Therefore, no segmental reporting is required.
4 Revenue 6 months to 6 months to 12 months to
30 September
30 September
31 March
2022
2021
2022
(unaudited) (unaudited) (audited)
£ £ £
Rental income 2,223,900 3,337,533 6,904,275
Lease incentive adjustment 192,743 (104,390) 553,961
2,416,643 3,233,143 7,458,236
Insurance recovery 65,373 100,268 125,279
Service charge income 334,489 798,241 1,324,494
Other income 18,306 85,000 132,000
418,168 983,509 1,581,773
2,834,811 4,216,652 9,040,009
5 Property expenses 6 months to 6 months to 12 months to
30 September
30 September
31 March
2022
2021
2022
(unaudited) (unaudited) (audited)
£ £ £
Property expenses 15,119 33,292 78,485
Property service charges 184,358 221,610 393,323
Property repairs and maintenance costs - 28,753 28,753
Property insurance 60,305 75,048 146,483
Property rates 49,401 62,119 111,387
Recoverable service charge costs 334,489 798,241 1,324,494
643,672 1,219,063 2,082,925
6 Administrative expenses 6 months to 6 months to 12 months to
30 September
30 September
31 March
2022
2021
2022
(unaudited) (unaudited) (audited)
£ £ £
Staff costs 515,224 506,001 2,167,519
Administration fees 150,563 153,200 308,302
Legal and professional fees 185,592 176,914 589,238
Audit fees 41,647 33,500 75,630
Accountancy fees 1,950 2,445 6,424
Rent, rates and other office costs 7,689 9,113 10,786
Other overheads 52,577 36,991 72,941
Depreciation of tangible fixed assets 9,241 7,785 16,715
Amortisation of right of use assets 13,769 18,700 30,196
Waiver of rental arrears - - 200,000
Provision for doubtful debts - - 105,993
978,252 944,649 3,583,744
7 Finance income 6 months to 6 months to 12 months to
30 September
30 September
31 March
2022
2021
2022
(unaudited) (unaudited) (audited)
£ £ £
Bank interest 43,883 26 192
43,883 26 192
8 Finance costs 6 months to 6 months to 12 months to
30 September
30 September
31 March
2022
2021
2022
(unaudited) (unaudited) (audited)
£ £ £
Loan interest 153,185 643,284 1,209,950
Loan commitment fees 25,100 17,739 71,949
Amortisation of lending costs 175,119 101,972 202,197
Interest on long-term incentive payment 88,555 - 5,111
Interest on lease liabilities 2,232 (2,061) (300)
444,191 760,934 1,488,907
9 Taxation 6 months to 6 months to 12 months to
30 September
30 September
31 March
2022
2021
2022
(unaudited) (unaudited) (audited)
£ £ £
Current tax 93,729 159,356 99,459
Deferred tax (credit) / charge (540,112) (2,794) 433,958
Impairment of deferred tax asset - - 891,920
(446,383) 156,562 1,425,337
Basic earnings per share has been calculated on profit after tax attributable
to ordinary shareholders for the period (as shown on the condensed
consolidated statement of comprehensive income) and the weighted average
number of ordinary shares in issue during the period.
6 months to 6 months to 12 months to
30 September
30 September
31 March
2022
2021
2022
(unaudited) (unaudited) (audited)
£ £ £
(Loss)/profit for the period (1,615,536) 434,112 4,367,917
Weighted average number of shares (excluding treasury shares) 28,296,762 28,296,762 28,296,792
(Loss)/earnings per ordinary share: (0.06) 0.02 0.15
10 Diluted earnings per share 6 months to 6 months to 12 months to
30 September
30 September
31 March
2022
2021
2022
(unaudited) (unaudited) (audited)
£ £ £
(Loss)/profit for the period (1,615,536) 434,112 4,367,917
Weighted average number of shares 29,183,396 29,322,398 29,183,396
Profit/(loss) per ordinary share: (0.06) 0.01 0.15
11 Investment properties 30 September 2022 30 September 2021 31 March 2022
(unaudited) (unaudited) (audited)
£ £ £
Opening fair value per valuation report 75,700,000 132,150,000 132,150,000
Cost of refurbishment of investment properties 1,281,530 1,342,369 2,296,994
Disposal of investment properties (19,350,000) (2,837,175) (58,938,675)
(Loss)/gain on revaluation of investment properties (1,074,273) (1,300,804) 1,837,721
Lease incentive amortisation 192,743 (104,390) 553,960
Reclassification of assets held for sale (6,400,000) (19,250,000) (2,200,000)
Fair value of investment properties per valuation report 50,350,000 110,000,000 75,700,000
Unamortised lease incentives (2,525,094) (10,756,461) (3,306,330)
Carrying value 47,824,906 99,243,539 72,393,670
Following the amendment of the basis of preparation of the financial
statements, investment properties and the unamortised lease incentives thereon
have been recognised as current and non-current assets dependent on the
anticipated disposal date. At 30 September 2022, £29.25 million of the total
value of the investment property of £50.35 million has been recognised as a
current asset and £21.1 million has been recognised as a non-current asset.
At 30 September 2022, both K3, Kents Hill Park and Elizabeth House, are
classified as held for sale given the properties meets IFRS 5 criteria (2021:
720 Aztec West).
The fair value of the Group's investment properties at 30 September 2022 has
been arrived at on the basis of valuation carried out by Savills (UK) Limited.
The valuation was carried out in accordance with the Practice Statements
contained in the Appraisal and Valuation Standards as published by the RICS.
In forming their opinion of the fair value, the independent valuer's had
regard to the current best use of the property, its investment attributes, and
recent comparable transactions. The valuation was carried out using the "All
Risks Yield" method taking into consideration both sales and rental evidence
and formulating the opinion of market value taking into account the
properties' locations, specifications, and specific characteristics.
At 30 September 2022, the fair value of the Group's investment properties per
the valuation report amounted to £50.35 million (2021: £110 million). The
difference between the fair value of the investment properties per the
valuation report and the fair value per the balance sheet of £2,525,094
(2021: £10,756,461) relates to unamortised lease incentives which are
recorded in the financial statements within non-current and current assets.
The Group had pledged all of its investment properties to secure banking
facilities granted to the Group as detailed in note 14. On 22 June 2022 the
banking facilities were repaid and the security released.
12 Assets held for sale 30 September 2022 30 September 2021 31 March 2022
(unaudited) (unaudited) (audited)
£ £ £
Opening balance 2,200,000 - -
Reclassification of K3, Kents Hill Park 2,900,000 - -
Reclassification of Elizabeth House, London Road 3,500,000 - -
Reclassification of One Castle Park, Bristol - 19,250,000 -
Reclassification of 720 Aztec West - - 2,200,000
Disposal of 720 Aztec West (2,200,000) - -
Gain on revaluation of assets held for sale - 750,000 -
Closing balance 6,400,000 20,000,000 2,200,000
On 11 August 2022, the Group exchanged contracts on the sale of Elizabeth
House, London Road to Map Commercial Properties Limited for a consideration of
£3.5 million. Completion took place on 6 October 2022.
On 19 August 2022, the Group exchanged contracts on the sale of Kents Hill,
Milton Keynes (buildings K1, K2 and K3) to Corum XL, for a consideration of
£17.23 million. The sale of buildings K1 and K2 completed simultaneously on
exchange at a sale price of £12.73 million. Completion of the sale of
building K3, at a sale price of £4.5 million, is expected to take place prior
to the end of the calendar year, following the completion of the refurbishment
currently underway.
13 Lease incentives and receivables 30 September 2022 30 September 2021 31 March 2022
(unaudited) (unaudited) (audited)
£ £ £
Non-current
Lease incentives 771,372 9,966,711 1,350,524
Current
Lease incentives 1,753,721 789,750 1,955,807
Amounts due from property agents 15,369 51,586 77,491
Tenant deposits 225,351 272,662 225,351
VAT 125,442 - -
Amounts due from tenants 1,257,606 1,379,759 1,426,867
Provision for doubtful debts (105,993) - (105,993)
Other receivables 587,964 237,423 279,267
3,859,460 2,731,180 3,858,790
14 Loan borrowings 30 September 2022 30 September 2021 31 March 2022
(unaudited) (unaudited) (audited)
£ £ £
Brought forward 21,305,537 61,922,684 61,922,684
Loan repayments (21,480,656) (1,775,000) (40,819,344)
Amortisation of lending costs 175,119 101,972 202,197
Total borrowings - 60,249,656 21,305,537
The Group was party to a revolving facility, with NatWest and HSBC. The
facility was a £60 million revolving facility with an accordion option of up
to £40 million. The facility had a four year term, repayable on 13 February
2023.
The facility was secured by a first and only legal charge over the Group's
investment properties, an assignment of rental income, charges over specified
bank accounts of the Group and a floating charge granted over all assets of
the Group.
The revolving facility was fully repaid by the Group on 22 June 2022.
15 Trade and other payables 30 September 2022 30 September 2021 31 March 2022
(unaudited) (unaudited) (audited)
£ £ £
Non-current
Long-term incentive payment 1,247,814 - 1,055,871
Current
Trade payables 16,246 47,200 166,312
Property improvement costs 19,443 285,314 235,423
Wages and salaries 27,755 26,223 352,723
Deferred income 896,120 1,752,940 1,210,499
Rental deposit accounts 225,351 272,662 225,351
Finance costs - 279,467 223,458
VAT - 195,485 25,307
Valuation fee 9,600 13,200 24,000
Audit fees 39,000 33,500 75,630
Administration fees - - 66
Current taxation 186,088 633,035 92,359
1,419,603 3,539,026 2,631,128
16 Subsequent events
On 6 October 2022, the Group completed the sale of Elizabeth House, Staines
for a consideration of £3.5 million.
On 11 October 2022, John Arnold and Edward Olins exercised their rights to
acquire, for nil consideration, 466,649 and 419,984 ordinary shares of no par
value ("Ordinary Shares") respectively. The issue of 886,633 Ordinary Shares
was satisfied by 255,034 Ordinary Shares which were held in treasury and the
issue of a further 631,599 new Ordinary Shares. Following the exercise, the
Company had a total of 29,183,395 Ordinary Shares in issue.
On 14 October 2022, John Arnold was issued a further 32,160 Ordinary Shares in
respect of the accrued dividend attributable to his Long Term Incentive Plan
shares issued on 11 October 2022. Edward Olins chose to receive the accrued
dividend in cash. Following the issue, the Company has a total of 29,215,555
Ordinary Shares in issue.
On 23 November 2022, the Group exchanged contracts for the sale of Somerset
House, Birmingham for a consideration of £15.18 million. Completion is
expected to take place by the end of February 2023.
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