REG - Conygar Investmnt Co - Preliminary Results
23/11/2021 07:00
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RNS Number : 1969T Conygar Investment Company PLC(The) 23 November 2021
23 November 2021
THE CONYGAR INVESTMENT COMPANY PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
SUMMARY
· Net asset value increased by £25.3 million (28.5%) to £114.1
million (217.4p per share).
· Total cash deposits of £13.7 million (26.0p per share).
· No debt and no borrowings.
· £29.2 million surplus on valuation of the Group's investment
properties, comprising a £28.7 million uplift at The Island Quarter,
Nottingham, and £0.5 million uplift at Cross Hands, Carmarthenshire. The
combined surplus amounts to an increase of 55.6p per share before other net
operational and administrative costs. At The Island Quarter, the resulting
£70.5 million valuation equates to approximately £2 million per acre.
· Development progressing for the first phase of the mixed-use
development at The Island Quarter and resolution passed to grant planning
permission for a 700-bed student accommodation scheme.
· Detailed planning application submitted in January 2021 for the next
phase of The Island Quarter development which includes a hotel, to be managed
by Intercontinental Hotels Group, residential rental apartments and co-working
space.
· A further planning application was submitted in October 2021 for the
proposed waterfront development in Holyhead, Anglesey, supplementing the
outline consent previously granted in 2014, which includes a 250-berth marina,
259 townhouses and apartments and associated retail and public realm.
· Bought back 1.09 million shares (2.0% of ordinary share capital) at
an average price of 111.5p per share.
Group net assets summary
30 September 2021 30 September 2020
Per share Per share
£'m p £'m p
Properties 108.4 206.6 56.2 104.9
Cash 13.7 26.0 32.1 60.0
Provisions (7.3) (13.9) - -
Other (0.7) (1.3) 0.5 0.9
Net assets 114.1 217.4 88.8 165.8
Robert Ware, Chief Executive commented:
"The speed and effectiveness of the UK's vaccination programme has enabled a
quicker and stronger economic recovery than many commentators predicted. This
success has been mirrored in the real estate sector with commercial property
values increasing in the last year, on average by approximately 7%, driven by
higher transaction volumes and the hardening of yields across much of the
market. Our results have benefited from this economic bounce and reflect a
significant improvement to those reported in the previous year.
Although we are acutely aware that a sustained economic recovery remains far
from assured, and that the expectations within the real estate industry have
changed markedly over recent years, we are increasingly confident that our
property portfolio is well positioned to benefit both from the renewed market
optimism and significant post COVID-19 social changes."
Enquiries:
The Conygar Investment Company PLC
Robert Ware: 0207 258 8670
David Baldwin: 0207 258 8670
Liberum Capital Limited (nominated adviser and broker)
Richard Lindley: 0203 100 2222
Jamie Richards:
Edward Phillips:
Temple Bar Advisory (public relations)
Alex Child-Villiers: 07795 425580
Will Barker: 07827 960151
Chairman's & chief executive's statement
Results summary
We present the Group's results for the year ended 30 September 2021.
The Group's net asset value per share has increased by 51.6p (31%) in the year
to 217.4p as at 30 September 2021 (2020: 165.8p). The profit before tax, which
includes a £29.2 million unrealised surplus from the revaluation of our
investment properties, was £28.2 million (2020: loss of £8.2 million).
As at 30 September 2020, the Group's investment in The Island Quarter,
Nottingham, was reported at cost as the fair value at that date was not
readily determinable. However, the substantial progress made during the year
to corroborate the project's design, market comparables and development cash
flows, as well as the significant progress made on planning and the
commencement of development, has enabled this 36-acre site to be more reliably
valued by Knight Frank LLP as at 30 September 2021.
The resulting valuation of £70.5 million, which represents a £28.7 million
(69%) surplus over cost, provides support and justification for the direction
of travel taken to date as we start to unlock, for the benefit of all
stakeholders, the full potential of a project which will, in due course,
provide an exciting new destination as well as substantial investment and
employment opportunities for the city of Nottingham. Further details of the
basis and valuation sensitivities are set out in note 12.
Since acquiring The Island Quarter in 2016, we have made significant headway
in developing the concept and strategy and over the last year have submitted
three detailed planning applications for the early phase developments. Two of
these have subsequently been granted with the third, which includes two
hotels, residential apartments and co-working space, expected to be considered
by the planning committee at the end of 2021. The detailed applications
granted to date have enabled us to commence the construction of the first
phase, which includes a 21,500 square foot food and beverage-led building,
planned for completion by Easter 2022, and initiate the on-site preliminary
groundworks for a 700-bed student accommodation scheme which we hope to have
operational for the September 2023 university intake.
In addition, the valuation of our retail park at Cross Hands, Carmarthenshire,
has increased in the year by 7.6% from £16.5 million at 30 September 2020 to
£17.8 million at 30 September 2021, in line with the increase in capital
values reported across the retail warehousing sector.
Retailers with a predominantly out-of-town presence have been much better
protected from the rise of online retailing than those with a more traditional
high street focus where click-and-collect, larger car parking provisions and
the drive-to convenience have proved more desirable, as highlighted by their
higher footfall throughout the pandemic and quicker recovery post-lockdowns.
At our retail park in Cross Hands, from which over 70% of the Group's rental
income is currently derived, we have collected 97% of the rents receivable in
the year which reduces to 92% for the Group as a whole. Of the remainder, 2%
are expected to be received in full by the end of the calendar year, 1% are on
deferred payment terms to be settled in full by March 2022 and 5% have been
provided for in these financial statements.
This is a pleasing result, particularly given the volatility in the retail
sector throughout the pandemic, which confirms the strength and adaptability
for the vast majority of the Group's tenants.
During the year we have also made good progress on the rest of the portfolio,
the brief highlights of which are set out below.
At Holyhead Waterfront in Anglesey we have submitted a further application, to
supplement the outline consent granted in 2014, for a waterfront development
to include both residential apartments and a 250-berth marina, which we are
very hopeful will provide a catalyst for the regeneration of Holyhead.
Interest continues, from the renewables sector, in our 203-acre site at
Rhosgoch, Anglesey. However, growing concerns about the capacity for the UK's
existing nuclear capability to phase out gas power and meet the government's
net zero targets have reopened the possibility for at least one more large
scale nuclear project this parliament. Whilst exploratory talks continue
between the UK government and various operators, for a possible nuclear
capability on the Isle of Anglesey, we have not progressed the renewables
option for our sites at Rhosgoch and Parc Cybi as they, in addition to
Holyhead, would be ideally located to support the infrastructure required for
such a project.
As previously reported, we exchanged a conditional contract in 2019 to sell
our industrial property in Selly Oak, Birmingham, to a specialist provider of
student accommodation. The conditionality within the agreement requires, in
addition to other matters, the granting of a permission on the site for a
student accommodation scheme which was duly obtained, subject to agreeing the
section 106, in September 2021. This we hope will be the catalyst for the
completion of the property's sale in the coming months.
Elsewhere, we are completing the construction of a spine road and associated
drainage at Haverfordwest in Pembrokeshire to open up the site for future
development and have sold two of our smaller development sites at King's Lynn,
Norfolk and Fishguard Lorry Stop in Pembrokeshire.
Cash flow
The net cash outflow in the year was £18.5 million, including £16.9 million
incurred to progress our property developments. As at 30 September 2021, the
Group has available cash deposits of £13.7 million, much of which is
allocated to the implementation of essential infrastructure and completion of
the first phase development at Nottingham. However, in order to further
progress our pipeline of development projects, in particular The Island
Quarter, we will need to raise substantial amounts either as debt, through
asset sales or from joint ventures and we are in advanced discussions on a
number of fronts in that regard.
Dividend
The Board recommends that no dividend is declared in respect of the year ended
30 September 2021. More information on the Group's dividend policy can be
found within the strategic report.
Share buy back
During the year, the Group acquired 1,092,000 ordinary shares, representing
2.0% of its ordinary share capital, at a cost of £1.22 million which equates
to an average price of 111.5p per share. As a result of the buy backs, net
asset value per share has been enhanced by 1.1p per share. The Group will seek
to renew the buy back authority of 14.99% of the issued share capital of the
Company at the forthcoming AGM. We consider the buy back authority to be a
useful capital management tool and will continue to use it when we believe the
stock market value differs too widely from our view of the intrinsic value of
the Company.
Board change
We are pleased to welcome David Baldwin to the Board. David was appointed as
Finance Director on 10 May 2021 having been with the Company for five years as
Financial Controller and also, since 6 April 2020, as Company Secretary.
Outlook
The speed and effectiveness of the UK's vaccination programme has enabled a
quicker and stronger economic recovery than many commentators predicted. This
success has been mirrored in the real estate sector with commercial property
values increasing in the last year, on average by approximately 7%, driven by
higher transaction volumes and the hardening of yields across much of the
market. Our results have benefited from this economic bounce and reflect a
significant improvement to those reported in the previous year.
Although we are acutely aware that a sustained economic recovery remains far
from assured, and that the expectations within the real estate industry have
changed markedly over recent years, we are increasingly confident that our
property portfolio is well positioned to benefit both from the renewed market
optimism and significant post COVID-19 social changes.
N J
Hamway
R T E Ware
Chairman
Chief Executive
Strategic report
The Group's strategic report provides a review of the business for the
financial year, discusses the Group's financial position at the year end and
explains the principal risks and uncertainties facing the business and how we
manage those risks. We also outline the Group's strategy and business model.
Strategy and business model
The Conygar Investment Company PLC ("Conygar") is an AIM quoted property
investment and development group dealing primarily in UK property. Our aim is
to invest in property assets and companies where we can add significant value
using our property management, development and transaction structuring skills.
The business operates three major strands, being property investment, property
development and investment in companies which trade or invest in property or
hold substantial property assets and we are prepared to use modest levels of
gearing to enhance returns. Assets are recycled to release capital as
opportunities present themselves and we will continue to buy back shares where
appropriate. The Group is content to hold cash and adopt a patient strategy
unless there is a compelling reason to invest.
Position of the Group at the year end
The Group net assets as at 30 September 2021 may be summarised as follows:
Per share
£'m p
Properties 108.4 206.6
Cash 13.7 26.0
Provisions (7.3) (13.9)
Other (0.7) (1.3)
Net assets 114.1 217.4
Good progress has been made on our investment properties and development
projects since we last reported, the details of which are set out below. The
Group's balance sheet remains both liquid and robust with cash deposits at 30
September 2021 of £13.7 million and no borrowings. We have utilised part of
the Group's cash deposits to commence the infrastructure works and
construction of the first phase of the Island Quarter development in
Nottingham. However, the continuation of future phases requires us to seek
either debt funding, joint venture partners or to sell assets to take best
advantage of the opportunities presented by this significant development and
discussions are ongoing in this regard.
Key performance indicators
The key measures considered when monitoring progress towards the Board's
objective of providing attractive shareholder returns include the headway made
during the year on its development and investment property portfolio, the
movements in net asset value per share and levels of uncommitted cash, each of
which are considered below.
Investment properties and development projects
Nottingham, Nottinghamshire
The Group acquired the 36-acre Island Quarter site in Nottingham city centre
in December 2016 for £13.5 million. The Island Quarter is an exciting
mixed-use development comprising new homes, grade A office space, hotels and
student accommodation.
During 2021, construction began on the first phase, comprising a 21,500 square
foot food and beverage-led building with a canal-side setting surrounded by
new high quality public realm. This is scheduled to open at Easter 2022 and
will, we believe, open up this previously underused canal-side part of the
city and bring local residents back to The Island Quarter.
In January 2021, a detailed planning application was submitted for the first
major phase of the site, which includes two hotels to be managed by The
Intercontinental Hotels Group, 247 residential rental apartments, 32,000
square feet of co-working space, as well as food and beverage areas.
Amendments were made to the original application, such that it is now hoped
the permission will be granted by the end of the year.
In May 2021, a detailed planning application was submitted for a 700-bed
student accommodation scheme which was granted in September 2021, subject to
agreeing the section 106.
We are progressing the designs for subsequent phases of The Island Quarter and
are in discussions with a variety of commercial occupiers and potential
investors and hope to make announcements on that front later in the year.
Cross Hands, Carmarthenshire
Following the completion of the lettings in the year to Burger King, Snap
Fitness and One Below the retail park at Cross Hands is now fully occupied,
producing an annual rent roll of £1.38 million, which given the economic and
social backdrop over the last 12 months is a very pleasing result. The
strength and diversity of the tenant base was emphasised during the pandemic
with the park, which comprises a number of leading brands including Lidl,
B&M Retail, Costa Coffee, Iceland Foods, Dominos Pizza and Pets At Home,
continuing to trade well.
Holyhead Waterfront, Anglesey
After a period of successful stakeholder and community engagement, we
submitted a further detailed application in October 2021 for the proposed
waterfront development, which supplements the outline consent granted in 2014.
The application includes a 250-berth marina, 259 townhouses and apartments,
marine commercial and additional A1/A3 retail units together with substantial
areas of improved public realm.
A further £0.7 million of costs in connection with the detailed design and
reserved matters application were expensed in the year to retain the carrying
value of the property, in line with the prior year, at its estimated net
realisable value of £5.0 million.
Selly Oak, Birmingham
Selly Oak comprises two industrial units, let to University Hospitals
Birmingham NHS Foundation Trust and Revolution Gymnastics Limited. Contracts
were exchanged in 2019 for the sale of the property, on a subject to planning
basis, to a specialist provider of student accommodation.
The purchaser submitted an application at the start of the year for a 523
student accommodation scheme for which a resolution to grant planning
permission, subject to agreeing the section 106, was confirmed by the local
authority in September 2021. A further update on the sale is expected in the
coming months once the terms of the section 106 have been finalised.
Haverfordwest, Pembrokeshire
At Haverfordwest in Pembrokeshire, where we have outline consent for 729
residential units and 90,000 square feet of implemented A1 retail, we are
constructing a 300 metre spine road and associated infrastructure, to be
completed by the end of the year, which will enable either the sale or
development of the site on a plot by plot basis.
In addition, an application has been submitted to Pembrokeshire County
Council, with a planning officer's recommendation for approval, to reduce the
costs payable under the existing section 106 agreement. We are hopeful of a
positive outcome, but await confirmation of the hearing date from the planning
committee.
Parc Cybi business park, Anglesey and Rhosgoch, Anglesey
We hold substantial plots of land at Parc Cybi business park and Rhosgoch in
Anglesey for which there has been continued interest during the year from
operators in the renewables sector. However, whilst discussions are ongoing
between the UK government and various operators, for the possible reopening of
a nuclear capability in Anglesey, we have not pursued the renewables option.
King's Lynn, Norfolk and Fishguard Lorry Stop, Pembrokeshire
During the year the Group's development sites at King's Lynn and Fishguard
Lorry Stop were sold for total net proceeds of £1.0 million, resulting in a
combined net profit of £0.4 million.
Summary of investment properties
2021 2020
£'m £'m
Nottingham - (1) 70.50 19.76
Cross Hands - (2) 17.75 16.50
Total 88.25 36.26
(1) The Group's investment in Nottingham was valued by Knight Frank LLP in
their capacity as external valuers as at 30 September 2021. In accordance with
IAS 40, as this project was not sufficiently advanced, such that the fair
value could be readily determined at 30 September 2020, the investment in
Nottingham was reported at cost in the prior year.
(2) The Group's investment in Cross Hands was independently valued by Knight
Frank LLP in both the current and prior years.
Summary of development projects
We remain confident that there is significant upside in these projects, but
this will only become evident over the medium term.
2021 2020
£'m £'m
Haverfordwest 8.62 7.78
Holyhead Waterfront 5.00 5.00
Selly Oak 3.57 3.57
Rhosgoch 2.50 2.50
Parc Cybi 0.50 0.50
King's Lynn (1) - 0.53
Fishguard Lorry Stop (1) - 0.07
Total 20.19 19.95
(1) As set out in the strategic report, the Group's development sites at
King's Lynn and Fishguard Lorry Stop were sold in the year.
Financial review
Net asset value
The net asset value increased by £25.3 million (51.6p per share) to £114.1
million at 30 September 2021. The primary movements in the year were
revaluation surpluses for the investment properties at Nottingham and Cross
Hands of £28.7 million and £0.5 million respectively, net rental income of
£1.3 million plus £0.4 million from the sale of our development sites at
King's Lynn and Fishguard Lorry Stop. This has been offset by £0.7 million of
development costs written off, £2.1 million of administrative costs, a £1.7m
provision for deferred tax on unrealised chargeable gains and £1.2 million
spent purchasing our own shares.
Cash flow and financing
At 30 September 2021, the Group had cash deposits of £13.7 million and no
debt (2020: cash of £32.1 million and no debt).
During the year, the Group used £1.8 million of cash in its operating
activities (2020: used £6.3 million).
The primary cash outflows in the year were capital costs of £16.9 million and
£1.2 million to buy back shares. Capital expenditure includes the
construction costs and associated professional fees for the ongoing
infrastructure works, first phase development and student block preliminary
works at The Island Quarter, completion of the Burger King unit at Cross
Hands, construction of a spine road on the residential site at Haverfordwest
and statutory fees to advance the proposed development at Holyhead Waterfront.
The cash outflows were partly offset by cash proceeds of £1.0 million from
the sales of King's Lynn and Fishguard Lorry Stop, resulting in a net cash
outflow in the year of £18.5 million (2020: cash outflow of £7.8 million).
Net income from property activities
2021 2020
£'m £'m
Rental and other income 1.6 1.7
Direct property costs (0.3) (0.2)
1.3 1.5
Proceeds from property sales 1.0 3.7
Cost of property sales (0.6) (3.5)
Total net income arising from property activities 1.7 1.7
Administrative expenses
The administrative expenses for the year ended 30 September 2021 were £2.1
million (2020: £2.6 million). The major items were salary costs of £1.4
million (2020: £1.9 million), head office running costs and various costs
arising as a result of the Group being listed on AIM.
Taxation
Current tax is payable, at a rate of 19% on net rental income and profits from
the sale of development properties after deduction of finance costs and
administrative expenses.
Deferred tax is calculated at a rate of 25%, being the rate that has been
enacted or substantively enacted by the balance sheet date and which is
expected to apply when the tax liability, resulting from unrealised chargeable
gains arising on revaluation of the Group's investment properties, is
projected to be settled.
Capital management
Capital risk management
The Board's primary objective when managing capital is to preserve the Group's
ability to continue as a going concern, in order to safeguard its equity and
provide returns for shareholders and benefits for other stakeholders whilst
maintaining an optimal capital structure to reduce the cost of capital.
The Group does not currently have any borrowings, but may utilise borrowing in
the future to fund development projects. When doing so the Group will seek to
ensure that it can stay within agreed covenants with its lenders.
Treasury policies
The objective of the Group's treasury policies is to manage the Group's
financial risk, secure cost effective funding for the Group's operations and
to minimise the adverse effects of fluctuations in the financial markets on
the value of the Group's financial assets and liabilities, reported
profitability and cash flows.
The Group finances its activities with a combination of cash and short term
deposits. Other financial assets and liabilities, such as trade receivables
and trade payables, arise directly from the Group's operations. The Group may
also finance its activities with bank loans and enter into derivative
transactions to manage the interest rate risk arising from its operations and
sources of finance. Throughout the year, and as at the balance sheet date, no
group undertakings were party to any bank loans or derivative instruments.
The management of cash is monitored weekly with summary cash statements
produced on a monthly basis and discussed regularly in management and board
meetings. The approach is to provide sufficient liquidity to meet the
requirements of the business in terms of funding developments and potential
acquisitions. Surplus funds are invested with a broad range of institutions.
At any point in time, at least half of the Group's cash is held on instant
access or short term deposit of less than 30 days.
Dividend policy
The Board recommends that no dividend is paid in respect of the year ended 30
September 2021 (2020: £nil).
Our dividend policy is consistent with the overall strategy of the business:
namely to invest in property assets and companies where we can add significant
value using our property management, development and transaction structuring
skills.
In previous years we have used the surplus cash flow from the then much larger
investment property portfolio to enhance these properties by refurbishment,
re-letting and extending tenancies, fund the operations of the business,
create a medium term pipeline of development opportunities, pay a modest
dividend and buy back shares where appropriate.
The Board will continue to review the dividend policy each year. Our focus is,
and will primarily continue to be, growth in net asset value per share.
Share buy backs
During the year, the Group acquired 1,092,000 ordinary shares at an average
price of 111.5p, costing £1.2 million, which represented 2.04% of its
ordinary share capital. As a result of the share buy backs, the net asset
value per share has been enhanced by approximately 1.1p per share. The Group
will seek to renew the buy back authority of 14.99% of the issued share
capital of the Company at the forthcoming AGM. We consider it to be a vital
capital management tool and believe it is prudent to have maximum flexibility
given the level of uncertainty we see in the wider economy.
Principal risks and uncertainties
Managing risk is an integral element of the Group's management activities and
a considerable amount of time is spent assessing and managing risks to the
business. Responsibility for risk management rests with the Board, with
external advisers used where necessary.
Strategic risks
Strategic risks are risks arising from an inappropriate strategy or through
flawed execution of a strategy. By definition, strategic risks tend to be
longer term than most other risks and, as has been amply demonstrated in the
last few years, the economic and wider environment can alter quickly and
significantly. Strategic risks identified include global or national events,
regulatory and legal changes, market or sector changes and key staff
retention.
The Board continually monitors and discusses the potential impact that changes
to the environment in which we operate can have upon the Group. We are
confident we have sufficiently high calibre Directors and managers to manage
strategic risks.
We are content that the Group has the right approach toward strategy and our
strong balance sheet is good evidence of that.
Operational risks
Operational risks are essentially those risks that might arise from inadequate
internal systems, processes, resources or incorrect decision making. Clearly,
it is not possible to eliminate operational risk. However, by ensuring we have
the right calibre of staff and external support in place we look to minimise
such risks, as most operational risks arise from people-related issues. Our
Executive Directors are very closely involved in the day-to-day running of the
business to ensure sound management judgement is applied.
Market risks
Market risks primarily arise from the possibility that the Group is exposed to
fluctuations in the values of, or income from, its cash deposits, investment
properties and development projects. This is a key risk to the principal
activities of the Group and the exposures are continuously monitored through
timely financial and management reporting and analysis of available market
intelligence.
Where necessary, management takes appropriate action to mitigate any adverse
impact arising from identified risks and market risks continue to be monitored
closely.
Continuing low interest rates have historically made our liquidity position a
drag on income, but it is likely to be helpful as we take on debt in the
coming years to finance our developments. However, the Group is currently not
party to any debt facilities and the management team have adapted admirably
during the COVID-19 pandemic to advance the development portfolio.
Estimation and judgement risks
To be able to prepare accounts according to generally accepted accounting
principles, management must make estimates and assumptions that affect the
asset and liability items and revenue and expense amounts recorded in the
accounts. These estimates are based on historical experience and various other
assumptions that management and the Board believe are reasonable under the
circumstances. The results of these considerations form the basis for making
judgements about the carrying value of assets and liabilities that are not
readily available from other sources.
The key sources of estimation uncertainty that have a significant risk of
causing material adjustment to the carrying amounts of assets and liabilities
within the next financial year are the following:
Investment properties
The fair values of investment properties are based upon open market value and
calculated, where applicable, using a third party valuation provided by an
external valuer. Where it is not possible to reliably measure fair value, cost
is used instead.
Development properties
The net realisable value of properties held for development requires an
assessment of fair value of the underlying assets using property appraisal
techniques and other valuation methods. Such estimates are inherently
subjective and actual values can only be determined in a sales transaction.
Financial assets
The interest rate profile of the Group's cash at the balance sheet date was as
follows:
30 Sep 21 30 Sep 20
£'000 £'000
Fixed rate term deposit - 10,009
Floating rate 13,657 22,117
13,657 32,126
Fixed and floating rate financial assets comprise cash and short term deposits
held with banks whose credit ratings are acceptable to the Board.
Credit risk
Credit risk is the risk of financial loss to the Group if a counterparty fails
to meet its contractual obligations. The Group's principal financial assets
include its financial interest in property assets, cash deposits and trade and
other receivables. The carrying amount of financial assets recorded in the
financial statements represents the Group's maximum exposure to credit risk
without taking account of the value of any collateral obtained.
In the event of default by an occupational tenant, the Group will suffer a
rental shortfall and incur additional costs. The Directors continually monitor
tenant arrears in order to anticipate, and minimise the impact of, defaults by
occupational tenants and if necessary, where circumstances allow, will apply
rigorous credit control procedures to facilitate the recovery of trade
receivables.
Under IFRS 9, the Group is required to provide for any expected credit losses
arising from trade receivables. For all assured shorthold tenancies, credit
checks are performed prior to acceptance of the tenant. Regulated tenants are
incentivised through the benefit of their tenancy agreement to avoid default
on their rent and rent deposits are held in respect of two leases. Taking
these factors into account, the risk to the Group of individual tenant default
and the credit risk of trade receivables are considered low, albeit the risk
has increased as a result of the impact of COVID-19, as is borne out by the
level of trade receivables written off in the current and prior years.
The Directors have provided for rental and other arrears due from various
tenants impacted by, amongst other factors, the COVID-19 pandemic which amount
to £118,000 at 30 September 2021 and which remain outstanding at the date of
signing these financial statements. The table below sets out the movement in
the bad debt provision during the year. The impaired receivables are based on
a review of expected credit losses. Impaired receivables and receivables not
considered to be impaired are not material to the financial statements and,
therefore, no further analysis is provided.
Provision for bad debts 30 Sep 21 30 Sep 20
£'000 £'000
At the start of the year 49 -
Provided in the year 69 49
At the end of the year 118 49
The credit risk on cash deposits is managed through the Company's policies of
monitoring counterparty exposure and the use of counterparties of good
financial standing. At 30 September 2021, the credit exposure from cash held
with banks was £13.7 million which represents 12.0% of the Group's net
assets. All cash deposits at the balance sheet date are placed with banks,
whose credit ratings are acceptable to the Board, on instant access accounts.
Should the credit quality or the financial position of the banks currently
utilised significantly deteriorate, cash deposits would be moved to
alternative banks.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its
financial obligations as they fall due. The Group seeks to manage its
liquidity risk by ensuring that sufficient cash is available to meet its
foreseeable needs. The Group has cash deposits at the balance sheet date of
£13.7 million. However, we will need to raise substantial amounts either as
debt, or through joint ventures or asset sales, in order to significantly
progress The Island Quarter development in Nottingham.
Section 172 statement
Directors' duty to promote the success of the Company under Section 172
Companies Act 2006
The strategic report is required to include a statement that describes how the
Directors have had regard to the matters set out in section 172(1) (a) to (f)
of the Companies Act 2006 when performing their duty under section 172. Some
of the matters identified in Section 172(1) are already covered by similar
provisions in the QCA Code and have thus been previously reported by the
Company in the corporate governance statement, the corporate governance report
and the QCA statement of compliance on our website. In order to avoid
unnecessary duplication, the relevant parts of those documents are identified
below and are to be treated as expressly incorporated by reference into this
strategic report. Under section 172 (1) of the Companies Act 2006, each
individual Director must act in the way he considers, in good faith, would be
the most likely to promote the success of the Company for the benefit of its
members as a whole, and in doing so have regard (amongst other matters) to six
matters detailed in the section. In discharging their duties, the Directors
seek to promote the success of Conygar for the benefit of members as a whole
and have regard to all the matters set out in Section 172(1), where applicable
and relevant to the business, taking account of its size and structure and the
nature and scale of its activities in the commercial property market. The
following paragraphs address each of the six matters in Section 172(1) (a) to
(f).
(a) The likely consequences of any decision in the long term: The commercial
property market is cyclical by nature. Investing in commercial property is a
long term business. The decisions taken must have regard to long term
consequences in terms of success or failure and managing risks and
uncertainties. The Directors cannot expect that every decision they take will
prove, with the benefit of hindsight, to be the best one - external factors
may affect the market and thus change conditions in the future, after a
decision has been taken. However, the Group's investment decisions are
undertaken by a Board with a wide range of experience, over many years, in
both the property and finance sectors.
(b) The interests of the Company's employees: The Company has five full time
employees, including the Chief Executive, two Property Directors and the
Finance Director. These Executive Directors sit on the Board with the
Non-Executive Directors.
(c) The need to foster the Company's business relationships with suppliers,
customers and others: The Directors have regularly reported in the Company's
annual reports on the constructive relationships that Conygar seeks to build
with its tenants and the mutual benefits that this brings to both parties; and
this reporting has been extended over the past two years following Principle 3
of the QCA Code to include suppliers and others. This is therefore addressed
under Principle 3 in the QCA compliance statement. In recent years, it has
been vital to foster our business relationships with tenants given external
factors affecting business and the economy, such as political uncertainty and
the continuing impact of the COVID-19 pandemic.
(d) The impact of the Company's operations on the community and the
environment: This is also addressed under Principle 3 of the QCA Code in the
QCA compliance statement. Due to its size and structure and the nature and
scale of its activities, the Board considers that the impact of Conygar's
operations as a landlord on the community and the environment is low.
Conygar's assets are used by its tenants for their own operations rather than
by Conygar itself. In the past year, the Company has not been made aware of
any tenant operations that have had a significant impact on the community or
the environment. In relation to planned developments, Conygar seeks to ensure
that designs and construction comply with all relevant environmental standards
and with local planning requirements and building regulations so as not to
adversely affect the community or the environment.
(e) The desirability of the Company maintaining a reputation for high
standards of business conduct: This is addressed under Principle 8 of the QCA
Code in the corporate governance statement and in the QCA compliance
statement. The Board considers that maintaining Conygar's reputation for high
standards of business conduct is not just desirable - it is a valuable asset
in the competitive commercial property market.
(f) The need to act fairly as between members of the Company: The Company has
only one class of shares, thus all shareholders have equal rights and,
regardless of the size of their holding, every shareholder is, and always has
been, treated equally and fairly. Relations with shareholders are further
addressed under Principles 2, 3 and 10 of the QCA Code in the corporate
governance report and the QCA compliance statement. We have been reviewing how
we communicate with shareholders and are in the process of encouraging
shareholders to adopt electronic communications and proxy voting in place of
paper documents where this suits them, as well as to raise questions in
writing if they are unable to attend AGMs.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 September 2021
Note Year ended Year ended
30 Sep 21 30 Sep 20
£'000 £'000
Rental income 1,592 1,675
Proceeds on sale of development and trading properties 1,050 -
Revenue 2,642 1,675
Direct costs of rental income 288 233
Costs on sale of development and trading properties 620 -
Development costs written 14 675 5,611
off
Direct costs 1,583 5,844
Gross profit / (loss) 1,059 (4,169)
Surplus / (deficit) on revaluation of 11 459 (1,722)
investment property
Surplus on revaluation of investment
properties under construction 12 28,718 -
Profit on sale of investment property - 167
Administrative expenses (2,058) (2,623)
Operating profit / 3 28,178 (8,347)
(loss)
Finance costs 6 (2) (5)
Finance 6 34 187
income
Profit / (loss) before taxation 28,210 (8,165)
Taxation 8 (1,685) 210
Profit / (loss) and total comprehensive 26,525 (7,955)
income / (charge) for the year
Basic and diluted profit / (loss) per 10 49.99p (14.73)p
share
All amounts are attributable to equity shareholders of the Company.
All of the activities of the Group are classed as continuing.
CONSOLIDATED Statement of Changes in Equity
for the year ended 30 September 2021
Attributable to the equity holders of the Company
Capital
Share redemption Treasury Retained Total
capital reserve shares earnings equity
Group £'000 £'000 £'000 £'000 £'000
Changes in equity for the year ended 30 September 2020
2,826 3,727 - 94,177 100,730
At 1 October 2019
Adjustment on implementation
of IFRS 16 - - - 23 23
2,826 3,727 - 94,200 100,753
Loss for the year - - - (7,955) (7,955)
Total comprehensive
charge for the year - - - (7,955) (7,955)
Purchase of own shares - - (3,965) - (3,965)
Cancellation of treasury shares (146) 146 3,965 (3,965) -
At 30 September 2020 2,680 3,873 - 82,280 88,833
Changes in equity for the year ended 30 September 2021
At 1 October 2020 2,680 3,873 - 82,280 88,833
Profit for the year - - - 26,525 26,525
Total comprehensive - - - 26,525 26,525
income for the year
Purchase of own shares - - (1,217) - (1,217)
Cancellation of treasury shares (55) 55 1,217 (1,217) -
At 30 September 2021 2,625 3,928 - 107,588 114,141
CONSOLIDATED BALANCE SHEET
at 30 September 2021
Note 30 Sep 2021 £'000 30 Sep 2020
£'000
Non-current assets
Investment properties 11 17,750 16,500
Investment properties under construction 12 70,500 19,761
Right of use asset 7 53 146
Deferred tax asset 8 2,935 -
91,238 36,407
Current assets
Development and trading 14 20,192 19,952
properties
Trade and other 15 2,661 1,655
receivables
Tax asset 28 31
Cash and cash equivalents 13,657 32,126
36,538 53,764
Total assets 127,776 90,171
Current liabilities
Trade and other 16 3,367 1,215
payables
Provision for liabilities and charges 17 5,614 -
Lease liability for right of use asset 7 34 89
9,015 1,304
Non-current liabilities
Deferred tax liability 8 4,620 -
Lease liability for right of use asset 7 - 34
4,620 34
Total liabilities 13,635 1,338
Net assets 114,141 88,833
Equity
Called up share 18 2,625 2,680
capital
Capital redemption reserve 3,928 3,873
Retained earnings 107,588 82,280
Total equity 114,141 88,833
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30 September 2021
Year ended 30 Sep 21 £'000 Year ended
30 Sep 20
£'000
Cash flows from operating activities
Operating profit / (loss) 28,178 (8,347)
Development costs written off 675 5,611
(Surplus) / deficit on revaluation of investment properties (29,177) 1,722
Profit on sale of investment property - (167)
Profit on sale of development and trading properties (430) -
Depreciation of right of use assets 93 93
Cash flows from operations before changes in working capital (661) (1,088)
Increase in trade and other receivables (1,006) (107)
Additions to development and trading properties (1,438) (4,901)
Net proceeds from sale of development and trading properties 1,025 -
Increase / (decrease) in trade and other payables 287 (253)
(1,793) (6,349)
Cash flows used in operations
Tax received 3 38
Cash flows used in operating activities (1,790) (6,311)
Cash flows from investing activities
Additions to investment properties (15,496) (1,369)
Proceeds from sale of an investment property - 3,673
Finance income 34 187
Cash flows (used in) / generated from investing activities (15,462) 2,491
Cash flows from financing activities
Purchase of own shares (1,217) (3,965)
Cash flows used in financing activities (1,217) (3,965)
Net decrease in cash and cash equivalents (18,469) (7,785)
Cash and cash equivalents at 1 October 32,126 39,911
Cash and cash equivalents at 30 September 13,657 32,126
NOTES TO THE ACCOUNTS
for the year ended 30 September 2021
1. The financial information set out in this announcement is abridged and
does not constitute statutory accounts for the year ended 30 September 2021
but is derived from the financial statements. The auditors have reported on
the statutory accounts for the year ended 30 September 2021, their report was
unqualified and did not contain statements under sections 498(2) or (3) of the
Companies Act 2006, and these will be delivered to the registrar of companies
following the Company's Annual General Meeting. The financial information has
been prepared using the recognition and measurement principle of IFRS.
2. The comparative financial information for the year ended 30 September
2020 was derived from information extracted from the annual report and
accounts for that period, which was prepared under IFRS and which has been
filed with the UK registrar of companies. The auditors have reported on those
accounts, their report was unqualified and did not contain statements under
section 498 (2) or (3) of the Companies Act 2006.
3. Operating PROFIT / (Loss)
Operating profit / (loss) is stated after charging:
Year ended Year ended
30 Sep 21 30 Sep 20
£'000 £'000
Audit of the Company's consolidated and individual financial statements 47 39
Audit of subsidiaries, pursuant to legislation 24 15
Fees payable to the Company's auditor for tax services - 13
Amortisation of right of use asset 93 93
4. PARTICULARS OF EMPLOYEES
The aggregate payroll costs were: Year ended Year ended
30 Sep 21 30 Sep 20
£'000 £'000
Wages and salaries 1,247 1,673
Social security costs 161 215
1,408 1,888
The average monthly number of persons, including Executive Directors, employed
by the Company during the year was seven (2020: seven).
5. DIRECTORS' EMOLUMENTS
Year ended Year ended
30 Sep 21 30 Sep 20
£'000 £'000
Basic salary and total emoluments 929 1,329
Emoluments of the highest paid Director 400 455
The Board, being the key management personnel, comprises the
only persons having authority and responsibility for planning, directing and
controlling the activities of the Group.
6. FINANCE INCOME AND COST
Year ended Year ended
30 Sep 21 30 Sep 20
£'000 £'000
Bank interest receivable 34 187
Interest cost under IFRS 16
2 5
7. LEASES
Group as lessor:
The Group receives income from investment properties and existing
tenants located at several development sites. At 30 September 2021, the
minimum lease payments receivable under non-cancellable operating leases were
as follows:
30 Sep 21 30 Sep 20
£'000 £'000
Less than one year 1,385 1,223
Between one and five years 5,873 5,254
Over five years 6,249 6,668
13,507 13,145
The amounts above represent total rental income up to the next
tenant only break date for each lease.
Group as lessee:
The Group is party to a lease which terminates on 28 April 2022.
IFRS 16 requires lessees to record all leases on the balance
sheet as liabilities along with an asset reflecting the right of use of the
asset over the lease term.
At the start of the prior year, the lease liability was
calculated as the present value of the remaining lease payments, discounted at
an incremental borrowing rate of 2.7%. The right of use asset was measured at
the amount equal to the lease liability adjusted for rent prepaid on the date
of implementation. Depreciation of the right of use asset is on a straight
line basis over the lease term.
The modified retrospective approach was adopted for transition
purposes such that comparatives were not restated and the difference between
the right of use asset and lease liability at the start of the prior year was
recognised within the Group's opening retained earnings.
Year ended Year ended
30 Sep 21 30 Sep 20
Right of use asset £'000 £'000
At the start of the year 146 239
Depreciation (93) (93)
At the end of the year 53 146
Lease liability £'000 £'000
At the start of the year 123 217
Lease payments (91) (99)
Interest on lease liability 2 5
At the end of the year 34 123
Lease liability maturity analysis 30 Sep 21 30 Sep 20
Gross lease payments £'000 £'000
due:
Within one year 34 91
Within two to five years - 34
Total gross lease payments 34 125
Less future financing charges - (2)
At end of the year 34 123
Current 34 89
Non-current - 34
8. TAX
Year ended Year ended
30 Sep 21 30 Sep 20
£'000 £'000
Current tax charge / (credit) - (210)
Deferred tax charge 1,685 -
Total tax charge / (credit) 1,685 (210)
The tax assessed on the profit for the year differs from the standard rate of
tax in the UK of 19% (2020: 19%). The differences are explained below:
Year ended Year ended
30 Sep 21 30 Sep 20
£'000 £'000
Profit / (loss) before tax 28,210 (8,165)
Profit / (loss) before tax multiplied by the standard rate of UK tax 5,360 (1,551)
Effects of:
Investment property revaluation not taxable (5,543) 327
Movement in tax losses carried forward 186 1,244
Expenses not deductible for tax purposes 10 31
Capital allowances utilised (13) (65)
Impact of differing tax rates for offshore entities - 14
Overprovision of prior year tax - (210)
Deferred tax charge 1,685 -
Total tax charge / (credit) for the year 1,685 (210)
Deferred tax asset
Year ended Year ended
30 Sep 21 30 Sep 20
£'000 £'000
Deferred tax asset at the start of the year - -
Deferred tax credit for the year 2,935 -
Deferred tax asset at the end of the year 2,935 -
The Group has recognised a deferred tax asset for tax losses, held by group
undertakings, where the Directors believe it is probable that this asset will
be recovered.
As at 30 September 2021, the Group has further unused losses of £20.1 million
(2020: £41.0 million) for which no deferred tax asset has been recognised in
the consolidated balance sheet.
Deferred tax liability - in respect of
chargeable gains on investment properties Year ended Year ended
30 Sep 21 30 Sep 20
£'000 £'000
Deferred tax liability at the start of the year - -
Deferred tax charge for the year 4,620 -
Deferred tax liability at the end of the year 4,620 -
The Directors have assessed the potential deferred tax liability of the Group
as at 30 September 2021 in respect of chargeable gains that would be payable
if the investment properties were sold at their financial year end valuations.
Based on the unrealised chargeable gains of £18,478,000 (2020: £nil) a
deferred tax liability of £4,620,000 has been recognised.
The deferred tax asset and liability have been calculated at a corporation tax
rate of 25% being the rate that has been enacted or substantively enacted by
the balance sheet date and which is expected to apply when the liability is
settled and the asset realised.
9. DIVIDENDS
No dividend will be paid in respect of the year ended 30
September 2021 (2020: nil).
10. PROFIT / (LOSS) PER SHARE
Profit per share is calculated as the profit attributable
to ordinary shareholders of the Company for the year of £26,525,000 (2020:
loss of £7,955,000) divided by the weighted average number of shares in issue
throughout the year of 53,064,275 (2020: 54,007,994). There are no diluting
amounts in either the current or prior years.
11. INVESTMENT PROPERTIES
Freehold investment properties
30 Sep 21 30 Sep 20
£'000 £'000
At the start of the year 16,500 21,429
Additions 791 305
Disposals - (3,512)
Revaluation surplus / (deficit) 459 (1,722)
At the end of the year 17,750 16,500
As at 30 September 2021, Cross Hands was valued by Knight Frank LLP in their
capacity as external valuers. The valuation was prepared on a fixed fee basis,
independent of the property value and undertaken in accordance with RICS
Valuation - Global Standards on the basis of fair value, supported by
reference to market evidence of transaction prices for similar properties. It
assumes a willing buyer and a willing seller in an arm's length transaction
and reflects usual deductions in respect of purchaser's costs and SDLT as
applicable at the valuation date. The independent valuer makes various
assumptions including future rental income, anticipated void costs and the
appropriate discount rate or yield.
The fair value of Cross Hands has been determined using an income
capitalisation technique whereby contracted rent and market rental values are
capitalised with a market capitalisation rate. This technique is consistent
with the principles in IFRS 13 and uses significant unobservable inputs, such
that the fair value has been classified in all periods as Level 3 in the fair
value hierarchy as defined in IFRS 13. For Cross Hands, the key unobservable
inputs are the net initial yields and expiry void periods. Net initial yields
have been estimated for the individual units at between 5.0% and 9.5% and
expiry void periods are projected at between 6 and 12 months. The principal
sensitivity of measurement to variations in the significant unobservable
outputs is that decreases in net initial yields and void periods will increase
the fair value.
The historical cost of the Group's investment properties as at 30 September
2021 was £14,242,000 (2020: £13,451,000).
The Group's revenue for the year includes £1,552,000 derived from properties
leased out under operating leases (2020: £1,635,000).
12. INVESTMENT PROPERTIES UNDER CONSTRUCTION
Freehold land and buildings
30 Sep 21 30 Sep 20
£'000 £'000
At the start of the year 19,761 -
Additions 16,407 -
Revaluation surplus 28,718 -
Introductory fee provision (note 17) 5,614 -
Transfer from trading properties - 19,761
At the end of the year 70,500 19,761
Investment properties under construction comprise the freehold land and
buildings at The Island Quarter in Nottingham which are held for current or
future development as investment properties and reported in the balance sheet
at fair value as at 30 September 2021 and cost as at 30 September 2020.
The fair value of this property rests in the ongoing and planned developments
which, as at 30 September 2020, was difficult to estimate pending confirmation
of designs and planning permissions, and hence, in accordance with IAS 40, was
measured at cost until either the fair value became readily determinable or
construction was complete.
However, the substantial progress made during the year to corroborate the
design, market comparables and projected cash flows as well as the significant
progress made on planning and the commencement of the development has enabled
The Island Quarter to be valued as at 30 September 2021 by Knight Frank LLP in
their capacity as external valuers.
The valuations of the Group's investment properties are inherently subjective
as they are based on the valuers' assumptions which may not prove to be
accurate and which, as a result, are subject to material uncertainty. This is
particularly true for The Island Quarter given its scale, lack of comparable
evidence and the early stage position of this substantial development where
relatively small changes to the underlying assumptions of key parameters, such
as rental levels, net initial yields, construction costs, finance costs and
void periods can have a significant impact both positively and negatively on
the resulting valuation.
In preparing their valuation, Knight Frank have utilised market and site
specific data, their own extensive knowledge of the real estate sector,
professional judgement and other market observations as well as information
provided by the Company's Executive Directors. The resulting models and
assumptions therein have also been reviewed for overall reasonableness by the
Conygar Board. Inevitably in a complex model like this, and as noted above,
variations in assumptions can lead to widely differing values. The Board have
considered the valuation in the context of their experience and believe the
value of approximately £2 million per acre is justifiable.
The valuation was prepared on a fixed fee basis, independent of the property
value and undertaken in accordance with RICS Valuation - Global Standards on
the basis of fair value, supported by reference to market evidence of
transaction prices for similar properties. It assumes a willing buyer and a
willing seller in an arm's length transaction and reflects usual deductions in
respect of purchaser's costs and SDLT as applicable at the valuation date. The
independent valuer makes various assumptions including future rental income,
anticipated void costs and the appropriate discount rate or yield.
The fair value of Nottingham has been determined using an income
capitalisation technique whereby contracted rent and market rental values are
capitalised with a market capitalisation rate. This technique is consistent
with the principles in IFRS 13 and uses significant unobservable inputs, such
that the fair value has been classified in all periods as Level 3 in the fair
value hierarchy as defined in IFRS 13. For Nottingham, the key unobservable
inputs are the net initial yields, construction costs, rental income rates and
expiry void periods. Net initial yields have been estimated for the individual
units at between 4.35% and 7.0%. The principal sensitivity of measurement to
variations in the significant unobservable outputs is that decreases in net
initial yields, construction costs and void periods will increase the fair
value whereas reductions to rental income rates would decrease the fair value.
The historical cost of the Group's investment properties under construction as
at 30 September 2021 was £36,168,000 (2020: £19,761,000).
13. INVESTMENT IN SUBSIDIARY UNDERTAKINGS
The companies listed below are the subsidiary undertakings of
the Group at 30 September 2021, all of which are wholly owned.
Country of % of
Company name Principal activity Registration equity held
Conygar Holdings Ltd** Holding Company England 100%
Conygar Haverfordwest Ltd** Property trading and development England 100%*
Conygar Holyhead Ltd** Property trading and development England 100%*
Conygar Nottingham Ltd** Property investment England 100%*
Nohu Limited** Property investment England 100%*
Parc Cybi Management Management Company England 100%
Company Limited**
Conygar Developments Ltd** Dormant England 100%*
Conygar Wales PLC** Dormant England 100%*
The Island Quarter Student Property Dormant England 100%*
Company Ltd**
The Island Quarter Student Operating Company Ltd** Dormant England 100%*
The Island Quarter Propco 1 Ltd** Dormant England 100%*
The Island Quarter Dormant England 100%*
Management Company Ltd**
Lamont Property Holdings Ltd*** Holding Company Jersey 100%*
Conygar Ashby Ltd*** Property investment Jersey 100%*
Conygar Cross Hands Ltd*** Property investment Jersey 100%*
* Indirectly owned.
** Subsidiaries with the same registered office as the
Company.
*** Subsidiaries incorporated in Jersey with a registered office at 3(rd)
Floor, 44 Esplanade, St Helier, Jersey JE4 9WG.
14. DEVELOPMENT AND TRADING PROPERTIES
30 Sep 21 30 Sep 20
£'000 £'000
At the start of the year 19,952 39,999
Additions 1,510 5,325
Disposals (595) -
Transfer to investment properties
under construction
- (19,761)
Development costs written off (675) (5,611)
At the end of the year 20,192 19,952
Development and trading properties are reported in the balance sheet at the
lower of cost and net realisable value. The net realisable value of properties
held for development requires an assessment of the underlying assets using
property appraisal techniques and other valuation methods. Such estimates are
inherently subjective as they are made on assumptions which may not prove to
be accurate and which can only be determined in a sales transaction.
15. TRADE AND OTHER RECEIVABLES
30 Sep 21 30 Sep 20
£'000 £'000
Trade receivables 127 107
Other receivables 1,229 613
Prepayments and accrued income 1,305 935
2,661 1,655
Trade and other receivables are measured on initial recognition at fair value,
and are subsequently measured at amortised cost using the effective interest
rate method, less any impairment. Impairment is calculated using an expected
credit loss model.
16. TRADE AND OTHER PAYABLES
30 Sep 21 30 Sep 20
£'000 £'000
Social security and payroll taxes 55 56
Trade payables 2,300 611
Accruals and deferred income 1,012 548
3,367 1,215
Trade and other payables are recognised initially at fair value, and are
subsequently measured at amortised cost using the effective interest rate
method.
17. PROVISION FOR LIABILITIES AND CHARGES
30 Sep 21 30 Sep 20
£'000 £'000
Services and introduction fee 5,614 -
The Group is party to a services agreement and introduction fee agreement in
connection with its investment property at Nottingham. The fee payable, under
the terms of each agreement, in connection with introductory and other
services, is to be calculated on the earlier of the date of sale of the
property or 22 December 2021 with settlement to follow, subject to agreement
between each party, 31 business days after the fee calculation has been
finalised. The provision as at 30 September 2021 has been calculated by
reference to the open market value of the property at the balance sheet date
after allowing for a priority return and applicable costs.
18. SHARE CAPITAL
Authorised share capital: 30 Sep 21 30 Sep 20
£ £
140,000,000 (2020: 140,000,000) Ordinary shares of 5p each 7,000,000 7,000,000
Allotted and called up:
No £'000
As at 30 September 2019 56,522,435 2,826
Cancellation of treasury shares (2,930,845) (146)
As at 30 September 2020 53,591,590 2,680
Cancellation of treasury shares (1,092,000) (55)
As at 30 September 2021 52,499,590 2,625
In December 2010, the Group began a share buyback programme and during the
year ended 30 September 2021 purchased 1,092,000 (2020: 2,930,845) shares on
the open market at a cost of £1,217,000 (2020: £3,965,000). On 16 September
2021, 1,092,000 ordinary shares of 5p each were transferred out of treasury
and cancelled (2020: 2,930,845 ordinary shares of 5p each).
19. CAPITAL COMMITMENTS
As at 30 September 2021, the Group had contracted capital commitments, not
provided for in the financial statements, of £12,800,000 (2020: £326,000)
relating to the construction, development or enhancement of the Group's
investment and trading properties.
20. FINANCIAL INSTRUMENTS
The following tables set out the Group's financial assets and
liabilities, all of which are due within one year. The tables have been drawn
up based on the undiscounted cash flows of financial liabilities, based on the
earliest date on which the Group can be required to pay.
Financial assets:
30 Sep 21 30 Sep 20
£'000 £'000
Cash and cash equivalents 13,657 32,126
Trade receivables 127 107
Other receivables (excluding VAT) 253 232
14,037 32,465
Financial liabilities:
30 Sep 21 30 Sep 20
£'000 £'000
Trade payables and other accrued expenses 3,175 993
23. EVENTS AFTER THE BALANCE SHEET DATE
There are no significant events since the balance sheet date that require
disclosure in the financial statements.
The report and accounts for the year ended 30 September 2021 will be posted to
shareholders shortly and copies may be obtained free of charge for at least
one month following their posting by writing to the Company Secretary, The
Conygar Investment Company PLC, 1 Duchess Street, London W1W 6AN. They are
also available on the website www.conygar.com (http://www.conygar.com) .
The Company's Annual General Meeting (the "AGM") will be held at 4:00pm on
Monday, 20 December 2021 at the offices of Gowling WLG (UK) LLP, 4 More London
Riverside, London, SE1 2AU.
The Directors of Conygar accept responsibility for the information contained
in this announcement. To the best of the knowledge and belief of the Directors
of Conygar (who have taken all reasonable care to ensure that such is the
case) the information contained in this announcement is in accordance with the
facts and does not omit anything likely to affect the import of such
information.
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit)
Regulations 2019. Upon the publication of this announcement via the Regulatory
Information Service, this inside information is now considered to be in the
public domain.
This announcement is being made on behalf of the Company by David Baldwin,
Finance Director.
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AnnouncementREG - Conygar Investmnt Co - TR-1: Notification of Major Holdings
AnnouncementREG - Conygar Investmnt Co - Director/PDMR Shareholding
AnnouncementREG - Conygar Investmnt Co - Sale of Holyhead Waterfront and Parc Cybi
AnnouncementREG - Conygar Investmnt Co - Debt facility restructuring
Announcement