REG - KCR Residential REIT - Interim Results
31/03/2025 09:15
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RNS Number : 9021C KCR Residential REIT PLC 31 March 2025
31 March 2025
KCR Residential REIT plc
("KCR" or the "Company")
Interim Results
KCR Residential REIT plc, the residential REIT group, is pleased to announce
its unaudited consolidated results for the six months to 31 December 2024.
The half year to 31 December 2024 has seen continued growth in core rental
income offset by a reduction in transactional income within the retirement
business. Overall the operating environment has remained challenging with
sustained higher interest rates and continuing cost of living pressure.
Ongoing inflationary pressure has continued to make cost reductions within the
business difficult to achieve, however costs continue to be tightly
controlled.
An additional flat within Heathside was acquired during the half year.
Refurbishment works have now been completed and the flat is in the process of
being let.
The Group's primary short-term focus is to optimise the performance from the
existing assets whilst controlling costs to achieve a cash neutral position.
Progress continues to be made to transition the business. The strategy, as
outlined in last year's Annual Report, remains unchanged, to:
· improve the rental revenue from the existing properties;
· progressively upgrade the overall portfolio quality;
· explore the development opportunity within the portfolio; and
· focus on controlling and reducing costs where possible.
The Hodge Bank facilities fixed rates have now expired and these facilities
are in the process of being refinanced. Current fixed rates in the market are
substantially above the legacy 3.50% that was previously in place. Finance
costs are expected to be around £200k per annum higher as a result of the
impact of the higher interest rates.
The impact of ongoing cost pressure and increased finance costs will continue
to keep the business cash constrained and make achieving a cash neutral
position more challenging.
Operational highlights
· revenue for the half year increased 0.5% to £950k (2023: £946k), with
revenue growth in core rental revenues largely offset by a reduction in
transactional income within the retirement portfolio;
· portfolio level occupancy has remained strong over the half year with
rental increases continuing to be achieved at renewals / re-letting. Under the
Cristal Apartments operating model there is now more volatility in occupancy
levels within the properties operated on this basis, however higher overall
rental revenue and gross profit is being generated notwithstanding this; and
· positive operating cashflow from operations was generated for the first
time with net cash from operations of £32k (2023: deficiency £119k) Whilst
the business remains cash negative, focus continues to be on reducing the cash
burn within the business. After allowing for financing charges, net cash used
in operating activities reduced by 37% to £261k (2024: £412k).
The ongoing focus on improving operational performance and controlling costs
continues to minimise Group cash burn. Further improvements in operational
performance over the next 12 months are expected to be offset by the increased
finance costs that will be incurred during the second half of the 2025
financial year.
This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.
For further information please contact:
KCR Residential REIT plc info@kcrreit.com (mailto:info@kcrreit.com)
Russell Naylor, Executive Director Tel: +44 (0)7749 963 033
Cairn Financial Advisers LLP (Nomad) Tel: +44 (0)20 7213 0880
Emily Staples / Louise O'Driscoll
Zeus Capital Limited (Broker) Tel: +44 (0)20 7614 5000
Louisa Waddell
Chairman's Statement
KCR Residential REIT Plc ("KCR" or the "Company") and its subsidiaries
(together the "Group") operate in the private rented residential investment
market. The Company acquires properties that are rented to private tenants and
also owns and operates a freehold portfolio of retirement living accommodation
where most of the properties have been sold on long leases.
The half year to 31 December 2024 has seen continued growth in core rental
income offset by a reduction in transactional income within the retirement
business. Overall the operating environment has remained challenging with
sustained higher interest rates and continuing cost of living pressure.
Ongoing inflationary pressure has continued to make cost reductions within the
business difficult to achieve, however costs continue to be tightly
controlled.
The increase in cost of sales relates primarily to the operation of the
Deanery Court property with cost increases mainly flowing from increases
related to energy (electricity and gas) and cleaning costs. As current energy
contracts expire, we expect reductions in energy costs to be achievable.
Fundamentals for UK residential property remain sound notwithstanding the
prevailing higher interest rate environment. The Group continues to look for
acquisitions on a disciplined basis however tightness in debt markets, more
restrictive terms and conditions and higher debt costs have made it
challenging to support both the investment and capital raising that would be
required to support a substantive transaction.
An additional flat within Heathside was acquired during the half year.
Refurbishment works have now been completed and the flat is in the process of
being let.
The Group's primary short-term focus is to optimise the performance from the
existing assets whilst controlling costs to achieve a cash neutral position.
Progress continues to be made to transition the business. The strategy, as
outlined in last year's Annual Report, remains unchanged, to:
· improve the rental revenue from the existing properties;
· progressively upgrade the overall portfolio quality;
· explore the development opportunity within the portfolio; and
· focus on controlling and reducing costs where possible.
Lease expiries and tenant churn continue to be actively managed to optimise
rentals achieved. We expect to continue to achieve incremental revenue growth
over the balance of the financial year.
Inflationary pressure continues to result in ongoing cost pressure, and we
remain actively focussed on managing the cost base to limit the impact of cost
increases on the business. Where possible we will continue to explore avenues
to achieve cost savings by streamlining processes within the day-to-day
operation of the business.
The increase in Administration expenses during the half year was driven by
repairs and maintenance at the Ladbroke Grove properties and general
inflationary price increases from most suppliers to the Group.
The Hodge Bank facilities fixed rates have now expired and these facilities
are in the process of being refinanced. Current fixed rates in the market are
substantially above the legacy 3.50% that was previously in place. Finance
costs are expected to be around £200k per annum higher as a result of the
impact of the higher interest rates.
The impact of ongoing cost pressure and increased finance costs will continue
to keep the business cash constrained and make achieving a cash neutral
position more challenging.
We are pleased to report on the progress of the Group in the six-month period
to 31 December 2024.
Growth in core rental revenue for the half year slowed as a result of a softer
December quarter at the Deanery Court property and with some vacancies within
the Ladbroke Grove portfolio whilst repairs and maintenance works were
completed. The Ladbroke Grove flats have since all been re-let and this
property is now 100% occupied again.
A reduction in transactional income within the retirement portfolio offset the
growth in core rental revenue resulting in a flat overall outcome for the half
year. Active management of lease expiries to optimise core rental increases is
ongoing.
Of the existing Group assets, the Deanery Court property is considered to
offer the most upside for further performance improvement.
The focus here is on improving overall average occupancy and achieving cost
reductions in the operation of the Cristal Apartments model to deliver
improvement in the net contribution from this property.
Ongoing active management and focus on achieving rent increases at all other
properties is expected to also deliver incremental revenue gains, however
these will have a less material impact on overall performance outcomes than
improvements at Deanery Court.
Operational highlights
· revenue for the half year increased 0.5% to £950k (2023: £946k), with
revenue growth in core rental revenues largely offset by a reduction in
transactional income within the retirement portfolio;
· portfolio level occupancy has remained strong over the half year with
rental increases continuing to be achieved at renewals / re-letting. Under the
Cristal Apartments operating model there is now more volatility in occupancy
levels within the properties operated on this basis, however higher overall
rental revenue and gross profit is being generated notwithstanding this; and
· positive operating cashflow from operations was generated for the first
time with net cash from operations of £32k (2023: deficiency £119k) Whilst
the business remains cash negative, focus continues to be on reducing the cash
burn within the business. After allowing for financing charges, net cash used
in operating activities reduced by 37% to £261k (2024: £412k).
The ongoing focus on improving operational performance and controlling costs
continues to minimise Group cash burn. Further improvements in operational
performance over the next 12 months are expected to be offset by the increased
finance costs that will be incurred during the second half of the 2025
financial year.
Property Portfolio
Property transactions during the half year
An additional flat was acquired within Heathside during the half year. Full
refurbishment of this flat completed during February 2025 and it is in the
process of being let on an AST basis. The ongoing strategy of acquiring,
refurbishing and re-letting flats within Heathside has proven astute.
One of the legacy un-refurbished flats at Heathside is also in the process of
a full refurbishment which is expected to be completed by the end of March
2025. Post refurbishment this flat will be let on an assured shorthold tenancy
("AST") basis.
Eleven flats are now owned within Heathside
which is assisting in delivering rental growth for the portfolio.
We continue to look for additional
opportunities to make follow on acquisitions of flats within Heathside.
As outlined above, tightness in debt markets, tighter terms and
conditions and higher debt costs make it
challenging to support both the investment
and capital raising that would be required to support
any substantive acquisitions.
Existing Portfolio
KCR continues to focus on improving performance from its existing portfolio.
The investment over recent years in improving the quality of the portfolio has
continued to deliver revenue growth and we reasonably expect to continue to
drive further growth from the existing assets over the course of the current
financial year.
In conjunction with incremental revenue growth, we are actively looking for
avenues to reduce the costs associated with the properties and the operation
of the Cristal Apartments model. Deanery Court and Coleherne Road both offer
opportunities for cost savings to be achieved to enhance the net contribution
from both properties.
As outlined above, Deanery Court is considered to offer the most material
incremental revenue upside and this is a key focus over the balance of
calendar year 2025.
We are continuing to progress our preferred planning outcome for the Ladbroke
Grove properties and are considering testing the market with the completion of
more substantive refurbishment works, as flats become vacant to test market
acceptance of a repositioned product.
As we have outlined previously, the tired condition of this property is
resulting in increasing repairs and maintenance expenditure which is expected
to continue, pending a more holistic refurbishment works programme.
Repositioning of the rental product on offer by materially enhancing the
quality and presentation of the flats is considered to have potential to drive
a material uplift in achievable rentals and capital values.
KCR has two operating lines, clearly identifiable by brand, property quality
and letting strategy.
1. Cristal Apartments. Residential apartments, finished to a high modern
specification, fully furnished and let on a Walk in Walk Out (WIWO) basis
(utilities subject to fair usage caps, internet, furniture and TV licence
included) for a frictionless and flexible letting experience. Rental contracts
offer flexible terms; and
2. Osprey Retirement Living. 4* retirement living property rented on
flexible letting packages customised to suit tenant needs. All rentals are on
assured shorthold tenancies for a minimum period of six months.
1. Cristal Apartments (WIWO letting strategy)
The Coleherne Road and Deanery Court properties are both branded and operated
under the Cristal Apartments brand. Both have delivered substantially improved
performance following the repositioning of the rental product offered and
conversion to the Cristal Apartments operating model.
Coleherne Road - this property comprises ten studio and one-bedroom flats. The
property has been repositioned to a materially higher standard and a full
refurbishment programme has been completed.
Ladbroke Grove - this portfolio comprises 16 studio, one and two bedroom flats
in three buildings which are 100% occupied. The flats are being lightly
refurbished as tenants vacate and then re-let in the private rental market.
The overall tired condition of the property is reflected in ongoing repairs
and maintenance expenditure. Planning works continue to be progressed and
options for the property evaluated. Once planning outcomes are known we will
finalise the approach with this property (progressive holistic refurbishment
on a flat-by-flat basis or more substantive works if planning approvals are
achieved).
Deanery Court (Southampton) - this property comprises 27 two-bedroom
residential apartments and has been converted to the Cristal Apartments
operating model. A light refurbishment programme was completed as part of the
conversion process.
2. Osprey retirement living (4* retirement apartments)
The Osprey portfolio consists of 153 flats and 13 houses let on long leases in
six locations, together with an estate consisting of 30 freehold cottages in
Marlborough where Osprey delivers estate management and sales services.
The key asset in the portfolio is the freehold block at Heathside, Golders
Green comprising 37 one and two bedroom apartments with 11 (ten as at 31
December 2023) of the apartments owned by the Group and 26 held on a long
leasehold basis. The strategy to selectively acquire long leasehold apartments
within the block, refurbish them to a high standard and let them on an assured
tenancy basis has been successful and has delivered strong rental returns for
the Group.
Financial Performance
The half year to 31 December 2024 reflects incremental revenue growth in core
rentals with a flat overall outcome following weakness in transactional income
within the retirement portfolio.
The increased cost of sales during the first half of the financial year
primarily related to the Deanery Court property with cost increases relating
mainly to energy and cleaning costs. Administrative expenses also increased
against the prior half year driven by repairs and maintenance at the Ladbroke
Grove properties and general inflationary price increases from most suppliers
to the Group.
· Revenue for the half year increased 0.5% to £950k (2023: £946k)
· Gross profit as a percentage of revenue reduced to 76.10% (2023: 80.44%)
reflecting the impact of higher energy and cleaning costs associated with the
Cristal Apartments operating model. In absolute terms overall gross profit
decreased by 5.01% to £723k (2023: £761k).
· An Operating profit before separately disclosed items of £798k (2023:
£97k).
· Operating profit £714k (2023: £3k loss) after refurbishment costs of
£84k (2023: £99k).
· Profit for the period was £433k (2023: £291k loss) and profit per share
was £1.04 (2023: 0.70p loss per share).
The value of KCR's property portfolio was up on the comparative period at
£26.2m (2023: £25.8m), reflecting the impact of revaluation movements at the
last balance sheet date and at the interim reporting date. The Group's current
assets increased to £0.9m (2023: £0.7m) with an increase in trade and other
receivables largely offsetting a reduction in cash used to fund the
acquisition of an additional flat, operating losses and support ongoing
refurbishment work programmes. Secured bank borrowings increased to £13.9m
against the prior half (2023: £13.3m) reflecting the increased funding taken
out during the June 2024 half year.
Total assets increased to £27.14m (2023: £26.93m) with the reduction in
current assets and a positive movement in the property portfolio. Net assets
per share decreased to 30.61p (2023: 31.72p).
The Group continues to be cashflow negative, however it is continuing to work
towards achieving a cash neutral position by improving operating performance
from the existing portfolio. Costs continue to be actively managed as we work
towards building a stable platform that can be scaled up. At 31 December 2024,
the Group had cash balances totalling £0.47m (2023: £0.53m).
Through the period the Company remained a REIT and has complied with REIT
rules.
KCR RESIDENTIAL REIT PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2024 (unaudited)
Six months ended 31 December 2024 Six months ended 31 December 2023 Year ended 30 June 2024 (audited)
Notes £ £ £
Revenue 2 950,103 946,004 1,796,106
Cost of sales (227,253) (185,001) (346,194)
Gross profit 722,850 761,003 1,449,912
Administrative expenses (710,331) (668,350) (1,325,589)
Other operating income - 3,880 -
Fair value through profit and loss - revaluation of investment properties
785,000 - (679,000)
Operating profit/(loss) before separately disclosed items 797,519 96,533 (554,677)
Costs associated with refurbishment of investment properties
3 (83,990) (99,371) (67,867)
Operating profit/(loss) 713,529 (2,838) (622,544)
Finance costs (293,182) (293,119) (584,840)
Finance income 12,249 4,869 21,309
Profit/(loss) before taxation 432,596 (291,088) (1,186,075)
Taxation - - -
Profit/(loss) for the period/year 432,596 (291,088) (1,186,075)
Total comprehensive income/(expense) for the period/year 432,596 (291,088) (1,186,075)
Profit/(loss) per share expressed in pence per share 4 1.04 (0.70) (2.85)
Basic 1.04 (0.70) (2.85)
Diluted
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2024 (unaudited)
31 December 2024 31 30 June 2024 (audited)
December 2023
Notes £ £ £
Non-current assets
Property, plant and equipment 129,490 205,864 167,676
Investment properties 5 26,151,300 25,835,300 25,156,300
Other long-term financial assets - 155,000 -
26,280,790 26,196,164 25,323,976
Current assets
Trade and other receivables 383,282 199,374 455,545
Cash and cash equivalents 472,652 532,332 931,595
855,934 731,706 1,387,140
Total assets 27,136,724 26,927,870 26,711,116
Equity
Shareholders' equity
Share capital 6 4,166,963 4,166,963 4,166,963
Share premium 14,941,898 14,941,898 14,941,898
Capital redemption reserve 344,424 344,424 344,424
Retained earnings (6,697,563) (6,235,172) (7,130,159)
Total equity 12,755,722 13,218,113 12,323,126
Non-current liabilities
Interest bearing loans and borrowings 13,904,324 13,274,574 13,904,324
Current liabilities
Trade and other payables 476,678 435,183 483,666
476,678 435,183 483,666
Total liabilities 14,381,002 13,709,757 14,387,990
Total equity and liabilities 27,136,724 26,927,870 26,711,116
Net asset value per share (pence) 30.61 31.72 29.57
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2024 (unaudited)
Share capital Share premium Capital redemption reserve Retained earnings Total equity
£ £ £ £ £
Balance at 1 July 2023 4,166,963 14,941,898 344,424 (5,944,084) 13,509,201
Changes in equity
Total comprehensive expense - - - (291,088) (291,088)
Balance at 31 December 2023 4,166,963 14,941,898 344,424 (6,235,172) 13,218,113
Changes in equity
Total comprehensive expense - - - (894,987) (894,987)
4,166,963 14,941,898 344,424 (7,130,159) 12,323,126
Balance at 30 June 2024
Changes in equity
Total comprehensive income - - - 432,596 432,596
4,166,963 14,941,898 344,424 (6,697,563) 12,755,722
Balance at 31 December 2024
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2024 (unaudited)
Six months Six months Year
ended ended ended
31 December 2024 31 December 30 June 2024
2023 (audited)
£ £ £
Cash flows from operating activities
Profit/(loss) for the period/year from continuing operations 432,596 (1,186,075)
(291,088)
Adjustments for
Depreciation charges 38,187 38,247 76,435
Revaluation of investment properties (785,000) - 679,000
Finance costs 293,182 293,119 584,840
Finance income (12,249) (4,869) (21,309)
Decrease/(increase) in trade and other receivables 72,263 (133,804) (234,975)
(Decrease)/increase in trade and other payables (6,989) (20,979) 27,504
Cash from / (used in) operations 31,990 (119,374) (74,580)
Interest paid (293,182) (293,119) (584,840)
Net cash used in operating activities (261,192) (412,493) (659,420)
Cash flows from investing activities
Purchase of property, plant & equipment - (40,892) (40,892)
Purchase of investment properties (including capital expenditure on current
properties)
(210,000) - -
Interest received 12,249 4,869 21,309
Net cash used in investing activities (197,751) (36,023) (19,583)
Cash flows from financing activities
Loan repayments in period/year - - (2,375,000)
Proceeds from new loans in year - - 3,004,750
Net cash generated from financing activities - - 629,750
Decrease in cash and cash equivalents (458,943) (448,516) (49,253)
Cash and cash equivalents at beginning of period/year 931,595 980,848 980,848
Cash and cash equivalents at end of period/year 472,652 532,332 931,595
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2024 (unaudited)
1. Basis of preparation
The Company is registered in England and Wales. The consolidated interim
financial statements for the six months ended 31 December 2024 comprise those
of the Company and subsidiaries. The Group is primarily involved in UK
property ownership and letting.
Statement of compliance
This consolidated interim financial report has been prepared in accordance
with the recognition and measurement principles of UK adopted International
Accounting Standards. AIM-quoted companies are not required to comply with IAS
34 Interim Financial Reporting and the Group has taken advantage of this
exemption. Selected explanatory notes are included to explain events and
transactions that are significant to an understanding of the changes in
financial performance and position of the Group since the last annual
consolidated financial statements for the year ended 30 June 2024. This
consolidated interim financial report does not include all the information
required for full annual financial statements prepared in accordance with
International Financial Reporting Standards. The financial statements are
unaudited and do not constitute statutory accounts as defined in section
434(3) of the Companies Act 2006.
A copy of the audited annual report for the year ended 30 June 2024 has been
delivered to the Registrar of Companies. The auditor's report on these
accounts was unqualified and did not contain statements under s498(2) or
s498(3) of the Companies Act 2006.
This consolidated interim financial report was approved by the Board of
Directors on 31 March 2025.
Significant accounting policies
The accounting policies applied by the Group in this consolidated interim
financial report are the same as those applied by the Group in its
consolidated financial statements for the year ended 30 June 2024.
Basis of consolidation
The interim financial statements include the financial statements of the
Company and its subsidiary undertakings. The subsidiaries included within
the consolidated financial statements, from their effective date of
acquisition, are K&C (Newbury) Limited, K&C (Coleherne) Limited,
K&C (Osprey) Limited, KCR (Kite) Limited and KCR (Southampton) Limited.
Going Concern
The Directors have adopted the going-concern basis in preparing the interim
financial statements.
The Directors have concluded that it remains appropriate to prepare these
interim financial statements on a going concern basis.
2. Operating segments
The Group is involved in UK property ownership and letting and is considered
to operate in a single geographical and business segment.
Revenue analysed by class of business:
Six months ended Six months ended Year ended 30 June
31 December 2024 31 December 2023 2024 (audited)
£ £ £
Rental income 835,764 816,009 1,568,175
Management fees 57,517 56,550 113,792
Resale commission 32,100 32,100 42,740
Ground rents 10,175 10,345 12,895
Leasehold extension income 9,462 31,000 51,935
Other income 5,085 - 6,569
950,103 946,004 1,796,106
3. Operating loss
The operating loss is stated after charging:
Six months ended Six months ended Year ended 30 June
31 December 2024 31 December 2023 2024 (audited)
£ £ £
Costs of refurbishment of investment properties 83,990 99,371 67,867
Depreciation of property, plant and equipment 38,187 38,247 76,435
Directors' remuneration 66,500 66,500 193,000
During the six months ended 31 December 2024, the Group incurred costs of
£83,990 (£99,371 - December 2023) (£67,867 - June 2024) relating to major
refurbishment of properties at Coleherne Road, London, Ladbroke Grove, London
and Heathside, London.
During the six month period, the Company paid Naylor Partners, a business
owned by Russell Naylor, fees of £24,000 (December 2023 - £24,000).
The directors are considered to be key management personnel.
4. Basic and diluted profit per share
Basic
The calculation of profit per share for the six months to 31 December 2024 is
based on the profit for the period attributable to ordinary shareholders of
£432,596 divided by a weighted average number of ordinary shares in issue.
The weighted average number of shares used for the six months ended 31
December 2024 was 41,669,631 (June 2024 - 41,669,631) (December 2023 -
41,669,631).
Diluted
The calculation of profit per share for the six months to 31 December 2024 is
based on the profit for the period attributable to ordinary shareholders of
£432,596 divided by a weighted average number of ordinary shares in issue,
adjusted for dilutive share options. As no share options existed in the 6
months ended 31 December 2024, there is no dilution to the profit per share.
The weighted average number of shares used for the six months ended 31
December 2024 was 41,669,631 (June 2024 - 41,669,631) (December 2023 -
41,669,631).
5. Investment properties
Six months ended 31 December 2024 Six months ended 31 December 2023 Year ended 30 June
2024 (audited)
£ £ £
At start of period/year 25,156,300 25,835,300 25,835,300
Additions 210,000 - -
Revaluations 785,000 - (679,000)
At end of period/year 26,151,300 25,835,300 25,156,300
Investment properties were valued by professionally qualified independent
external valuers at the date of acquisition and were recorded at the values
that were attributed to the properties at acquisition date. The investment
properties were independently valued in May 2024, July 2024 and March 2025.
All material properties were subject to full valuations. The properties were
valued by the Directors as at 31 December 2024 with reference to independent
valuations completed in May 2024, July 2024 and March 2025. A number of low
value properties (less than 8% of the total investment property value) within
the Osprey portfolio were valued by the Directors with reference to
independent valuations completed in August 2023 and the market commentary
contained within the independent external valuations performed in May 2024.
Fair value is based on current prices in an active market for similar
properties in the same location and condition. The current price is the
estimated amount for which a property could be exchanged between a willing
buyer and willing seller in an arm's length transaction after proper marketing
wherein the parties had each acted knowledgeably, prudently and without
compulsion.
Valuations are based on a market approach which provides an indicative value
by comparing the property with other similar properties for which price
information is available. Comparisons have been adjusted to reflect
differences in age, size, condition, location and any other relevant factors.
The fair value for investment properties has been categorised as a Level 3
inputs under IFRS 13.
The valuation technique used in measuring the fair value, as well as the
significant inputs and significant unobservable inputs are summarised in the
following table -
Fair Value Hierarchy Valuation Technique Significant Inputs Used Significant Unobservable Inputs
Level 3 Income capitalisation and or capital value on a per square foot basis Adopted gross yield 4.00% - 7.60%
Adopted rate per square foot
£265-£1,464
6. Share capital
Allotted, issued and fully paid: 31 December 2024 31 30 June
December 2023 2024 (audited)
Number: Class: Nominal value: £ £ £
41,669,631 Ordinary £0.10 4,166,963 4,166,963 4,166,963
4,166,963 4,166,963 4,166,963
At 1 July 2024, the Company had 41,669,631 Ordinary shares of £0.10 each in
issue. The Ordinary shares carry no rights to fixed income.
7. Related Party Transactions
Details of remuneration and fees paid to directors are disclosed at note 3 of
these interim financial statements.
8. Post Balance Sheet Events
There are no post balance sheet events to disclose.
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