REG-Lon.&Assoc.Props PLC: Annual Financial Report <Origin Href="QuoteRef">LAS.L</Origin> - Part 7
28/04/2017 12:05
- Part 7: For the preceding part double click ID:nPRrS2637f
– – – 450,000
Shares allocated over which options have not yet been granted 550,000 – – – 550,000
Total shares allocated for issue to employees under the scheme 1,000,000 – – – 1,000,000
The Bisichi Mining PLC Unapproved Option Schemes
Details of the share option schemes in Bisichi are as follows:
Year of grant Subscription price per share Period within which options exercisable Number of shares for which options outstanding at 31 December 2015 Number of share options issued/exercised/ (cancelled) during year Number of shares for which options outstanding at 31 December 2016
2006 237.5p Oct 2009 – Oct 2016 325,000 (325,000) –
2010 202.5p Aug 2013 – Aug 2020 80,000 – 80,000
2015 87.0p Sep 2015 – Sep 2025 300,000 – 300,000
The exercise of options under the Unapproved Share Option Schemes, for certain
option issues, is subject to the satisfaction of objective performance
conditions specified by the remuneration committee, which will conform to
institutional shareholder guidelines and best practice provisions in force
from time to time. The performance conditions for the 2010 scheme, agreed by
members on 31 August 2010 respectively, requires growth in net assets over a
three year period to exceed the growth of the retail prices index by a scale
of percentages. There are no performance or service conditions attached to
2015 options which are outstanding at 31 December 2016 which vested in 2015.
2016 Number 2016 Weighted average exercise price 2015 Number 2015 Weighted average exercise price
Outstanding at 1 January 705,000 133.1p 598,000 167.1p
Granted during year – – 300,000 87.0p
Lapsed during the year (325,000) 237.5p (193,000) 34.0p
Outstanding at 31 December 380,000 111.5p 705,000 133.1p
Exercisable at 31 December 380,000 111.5p 705,000 133.1p
The 2016 share based payment charge of £109,000 relates to the remaining
grant date fair value in respect of the 300,000 share options granted to A R
Heller and G J Casey in 2015, with a corresponding entry to the share based
payment reserve. There were no vesting conditions attached to these share
options and therefore they should have been fully expensed in 2015, rather
than spread over the estimated life of the options. As the error is not
considered to be material to the current or prior year financial statements it
has been corrected in the current period.
27. Non–controlling interest (“NCI”)
2016 £’000 2015 £’000
As at 1 January 9,574 10,826
Share of profit/(loss) for the year 208 (147)
Share of gain/(loss) on available for sale investments 104 (94)
Dividends received (250) (250)
Shares issued 64 18
Shares cancelled – (64)
Exchange movement 689 (718)
Other changes in equity – 3
As at 31 December 10,389 9,574
The following subsidiaries had material NCI:
Bisichi Mining PLC
Black Wattle Colliery (Pty) Ltd
Summarised financial information for these subsidiaries is set out below. The
information is before inter–company eliminations with other companies in the
Group.
BISICHI MINING PLC 2016 £’000 2015 £’000
Revenue 22,791 25,654
Profit/(loss) for the year attributable to owners of the parent 479 (259)
(Loss)/profit for the year attributable to NCI (72) 4
Profit/(loss) for the year 407 (255)
Other comprehensive income/(expense) attributable to owners of the parent 1,186 (1,241)
Other comprehensive income/(expense) attributable to NCI 100 (87)
Other comprehensive income/(expense) for the year 1,286 (1,328)
Balance sheet
Non–current assets 24,649 20,480
Current assets 12,224 10,635
Total assets 36,873 31,115
Current liabilities (10,326) (6,501)
Non–current liabilities (9,541) (8,983)
Total liabilities (19,867) (15,484)
Net current assets at 31 December 17,006 15,631
Cash flows
From operating activities 2,941 1,979
From investing activities (1,570) (2,773)
From financing activities (969) (947)
Net cash flows 402 (1,741)
The non–controlling interest comprises of a 37.5% shareholding in Black
Wattle Colliery (Pty) Ltd, a coal mining company incorporated in South Africa.
Summarised financial information reflecting 100% of the underlying
subsidiary’s relevant figures, is set out below.
Black Wattle Colliery (Pty) Limited (“Black Wattle”) 2016 £’000 2015 £’000
Revenue 21,703 24,608
Expenses (22,185) (24,582)
(Loss)/profit for the year (482) 26
Total comprehensive (expense)/income for the year (482) 26
Balance sheet
Non–current assets 8,516 5,355
Current assets 8,600 5,932
Current liabilities (12,151) (7,156)
Non–current liabilities (2,635) (1,988)
Net assets at 31 December 2,330 2,143
The non–controlling interest relates to the disposal of a 37.5% shareholding
in Black Wattle in 2010. The total issued share capital in Black Wattle
Colliery (Pty) Ltd was increased from 136 shares to 1,000 shares at par of
ZAR1 (South African Rand) through the following shares issue:
– a subscription for 489 ordinary shares at par by Bisichi Mining
(Exploration) Limited increasing the number of shares held from 136 ordinary
shares to a total of 675 ordinary shares;
– a subscription for 110 ordinary shares at par by Vunani Mining (Pty) Ltd;
– a subscription for 265 “A” shares at par by Vunani Mining (Pty) Ltd
Bisichi Mining (Exploration) Limited is a wholly owned subsidiary of Bisichi
Mining PLC incorporated in England and Wales.
Vunani Mining (Pty) Ltd is a South African Black Economic Empowerment company
and minority shareholder in Black Wattle.
The “A” shares rank pari passu with the ordinary shares save that they
will have no dividend rights until such time as the dividends paid by Black
Wattle Colliery (Pty) Ltd on the ordinary shares subsequent to 30 October 2008
will equate to ZAR832,075,000.
A non–controlling interest of 15% in Black Wattle is recognised for all
profits distributable to the 110 ordinary shares held by Vunani Mining (Pty)
Ltd from the date of issue of the shares (18 October 2010). An additional
non–controlling interest will be recognised for all profits distributable to
the 265 “A” shares held by Vunani Mining (Pty) Ltd after such time as the
profits available for distribution, in Black Wattle Colliery (Pty) Ltd, before
any payment of dividends after 30 October 2008, exceeds ZAR832,075,000.
28. Related party transactions
Cost recharged to (by) related party £’000 Amounts owed by (to) related party £’000 Advanced to (by) related party £’000
Related party:
Langney Shopping Centre Unit Trust
Current account 19 (i) – –
Loan account – – (128)
Simon Heller Charitable Trust
Current account (63) – –
Loan account – (700) –
Directors and key management
M A Heller and J A Heller 6 (i) 6 –
H D Goldring (Delmore Asset Management Limited) (30) (ii) (15) –
C A Parritt (19) (ii) (18) –
R Priest (A & M Europe LLP) (34) (ii) (34) –
Ezimbokodweni Mining (pty) Limited 114 1,350 –
Totals at 31 December 2016 (7) 589 (128)
Totals at 31 December 2015 53 340 (208)
Nature of costs recharged – (i) Property management fees (ii) Consultancy
fees.
Langney Shopping Centre Unit Trust (joint venture)
Langney Shopping Centre Unit Trust (Langney) was owned 12.5 per cent by the
Company and 12.5 per cent by Bisichi Mining PLC. The remaining 75 per cent is
owned by Columbus Capital Management LLP. This investment was sold in March
2016.
The Company provided property management services to Langney.
Ezimbokodweni Mining (PTY) Limited (Joint Venture)
Ezimbokodweni Mining is a Bisichi joint venture and is treated as a
non-current asset investment. It is a prospective coal production company
based in South Africa. Ezimbokodweni Mining (Pty) Limited is a joint venture
and a loan to the joint venture is treated as part of the net investment in
the joint venture. Further details on the net investment in Ezimbokodweni can
be found in note 12.
Directors
London & Associated Properties PLC provides office premises, property
management, general management, accounting and administration services for a
number of private property companies in which Sir Michael Heller and J A
Heller have an interest. Under an agreement with Sir Michael Heller no charge
is made for these services on the basis that he reduces by an equivalent
amount the charge for his services to London & Associated Properties PLC. The
board estimates that the value of these services, if supplied to a third
party, would have been £300,000 for the year (2015: £300,000).
The companies for which services are provided are: Barmik Properties Limited,
Cawgate Limited, Clerewell Limited, Cloathgate Limited, Ken–Crav Investments
Limited, London & South Yorkshire Securities Limited, Metroc Limited, Penrith
Retail Limited, Shop.com Limited, South Yorkshire Property Trust Limited,
Wasdon Investments Limited, Wasdon (Dover) Limited, and Wasdon (Leeds)
Limited.
In addition the Company received management fees of £10,000 (2015: £10,000)
for work done for two charitable foundations, the Michael & Morven Heller
Charitable Foundation and the Simon Heller Charitable Trust.
The Simon Heller Trust has placed on deposit with LAP £700,000 at an interest
rate of 9% which is refundable on demand.
Delmore Holdings Limited (Delmore) is a Company in which H D Goldring is a
majority shareholder and director. Delmore provides consultancy services to
the Company on an invoiced fee basis.
Alvarez & Marsal Real Estate Advisory Services LLP (A&M) is a company in which
R Priest was a director. A&M provided consultancy services to the Company on
an invoiced fee basis.
In 2012 a loan of £116,000 was made by Bisichi to one of the Bisichi
directors - A R Heller. The loan amount outstanding at the year end was
£71,000 (2015: £86,000) and a repayment of £15,000 (2015: £15,000) was
made during the year. Interest is payable on the loan at a rate of 6.14
percent. There is no fixed repayment date for the loan.
The directors are considered to be the only key management personnel and their
remuneration including employer’s national insurance for the year were
£1,103,000 (2015: £1,341,000). All other disclosures required including
interest in share options in respect of those directors are included within
the remuneration report.
29. Employees
The average number of employees, including directors, of the Group during the
year was as follows:
2016 2015
Production 185 191
Administration 46 44
231 235
Staff costs during the year were as follows:
2016 £’000 2015 £’000
Salaries and other costs 6,396 6,459
Social security costs 332 361
Pension costs 335 368
Share based payments 110 31
7,173 7,219
30. Capital Commitments
2016 £’000 2015 £’000
Commitments for capital expenditure approved but for which contracts have not been placed at the year end – 306
Commitments for capital expenditure approved and contracted for at the year end 762 –
Share of commitment of capital expenditure in joint venture 1,489 1,102
All the above relates to Bisichi Mining PLC.
31. Operating and finance leases
Operating leases on land and buildings
At 31 December 2016 the Group had commitments under non–cancellable
operating leases on land and buildings expiring as follows:
2016 £’000 2015 £’000
After five years 1,680 1,920
Operating lease payments represent rentals payable by the Group for its office
premises.
The leases are for an average term of ten years and rentals are fixed for an
average of five years.
Present value of head leases on properties
Minimum lease payments Present value of minimum lease payments
2016 £’000 2015 £’000 2016 £’000 2015 £’000
Within one year 305 306 305 306
Second to fifth year 1,222 1,225 1,130 1,139
After five years 29,734 30,142 3,332 3,339
31,261 31,673 4,767 4,784
Future finance charges on finance leases (26,494) (26,889) – –
Present value of finance lease liabilities 4,767 4,784 4,767 4,784
Finance lease liabilities are in respect of leased investment property. Many
leases provide for contingent rent in addition to the rents above, usually a
proportion of rental income.
Finance lease liabilities are effectively secured as the rights to the leased
asset revert to the lessor in the event of default.
Future aggregate minimum rentals receivable
The Group leases out its investment properties to tenants under operating
leases. The future aggregate minimum rentals receivable under
non–cancellable operating leases are as follows:
2016 £’000 2015 £’000
Within one year 6,684 6,491
Second to fifth year 20,104 20,207
After five years 36,736 35,622
63,524 62,320
32. Contingent liabilities and events after the reporting period
There were no contingent liabilities at 31 December 2016 (2015: £Nil), except
as disclosed in Note 23.
Bank guarantees have been issued by the bankers of Black Wattle Colliery (Pty)
Limited on behalf of the Company to third parties. The guarantees are secured
against the assets of the Company and have been issued in respect of the
following:
2016 £’000 2015 £’000
Rail siding & transportation 63 47
Rehabilitation of mining land 1,364 1,009
Water & electricity 57 42
1,484 1,098
33. Company financial statements
Company balance sheet at 31 December 2016
Notes 2016 £’000 2015 £’000
Fixed assets
Tangible assets 33.3 27,383 28,468
Other investments:
Associated company – Bisichi Mining PLC 33.4 489 489
Subsidiaries and others including Dragon Retail Properties Limited 33.4 42,492 57,472
42,981 57,961
70,364 86,429
Current assets
Assets held for sale 33.5 – 964
Debtors 33.6 1,130 1,084
Deferred tax due after more than one year 33.10 2,082 3,055
Investments 33.7 19 20
Bank balances 2,625 2,233
5,856 7,356
Creditors
Amounts falling due within one year 33.8 (34,790) (53,769)
Borrowings 33.9 (750) –
Net current liabilities (29,684) (46,413)
Total assets less current liabilities 40,680 40,016
Creditors
Amounts falling due after more than one year 33.9 (17,491) (18,228)
Net assets 23,189 21,788
Capital and reserves
Share capital 33.11 8,554 8,554
Share premium account 4,866 4,866
Capital redemption reserve 47 47
Treasury shares 33.11 (145) (482)
Retained earnings 9,867 8,803
Shareholders’ funds 23,189 21,788
These financial statements were approved by the board of directors and
authorised for issue on 27 April 2017 and signed on its behalf by:
Sir Michael
Heller Anil
Thapar Company Registration No. 341829
Director
Director
Company statement of changes in equity for the year ended 31 December 2016
Share capital £’000 Share premium £’000 Capital redemption reserve £’000 Treasury shares £’000 Retained earnings excluding treasury shares £’000 Total equity £’000
Balance at 1 January 2015 8,554 4,866 47 (883) 13,366 25,950
Loss for year – – – – (4,144) (4,144)
Total comprehensive income – – – – (4,144) (4,144)
Transactions with owners:
Dividends – equity holders – – – – (133) (133)
Acquisition of own shares – – – (111) – (111)
Disposal of own shares – – – 226 – 226
Loss on transfer of own shares – – – 286 (286) –
Transactions with owners – – – 401 (419) (18)
Balance at 31 December 2015 8,554 4,866 47 (482) 8,803 21,788
Profit for year – – – – 1,418 1,418
Total comprehensive income – – – – 1,418 1,418
Transaction with owners:
Dividends – equity holders – – – – (136) (136)
Disposal of own shares – – – 119 – 119
Loss on transfer of own shares – – – 218 (218) –
Transactions with owners – – – 337 (354) (17)
Balance at 31 December 2016 8,554 4,866 47 (145) 9,867 23,189
£7.9 million (2015: £5.7 million) of retained earnings (excluding treasury
shares) is distributable.
33.1. COMPANY
Accounting policies
The following are the main accounting policies of the Company:
Basis of preparation
The financial statements have been prepared on a going concern basis and in
accordance with Financial Reporting Standard 101 ’Reduced Disclosure
Framework’ (FRS 101) and Companies Act 2006. The financial statements are
prepared under the historical cost convention as modified to include the
revaluation of freehold and leasehold properties and fair value adjustments in
respect of current asset investments and interest rate hedges.
The results of the Company are included in the consolidated financial
statements. No profit or loss is presented by the Company as permitted by
Section 408 of the Companies Act 2006.
In these financial statements, the company has applied the exemptions
available under FRS 101 in respect of the following disclosures:
• Cash Flow Statement and related notes;
• Comparative period reconciliations for share capital, tangible fixed
assets and intangible assets;
• Disclosures in respect of transactions with wholly owned subsidiaries;
• Disclosures in respect of capital management;
• The effects of new but not yet effective IFRSs;
• Disclosures in respect of the compensation of Key Management Personnel.
As the consolidated financial statements include the equivalent disclosures,
the Company has also taken the exemptions under FRS 101 available in respect
of the following disclosures:
• IFRS 2 Share Based Payments in respect of group settled share based
payments;
• The disclosures required by IFRS 7 and IFRS 13 regarding financial
instrument disclosures have not been provided apart from those which are
relevant for the financial instruments which are held at fair value and are
not either held as part of trading portfolio or derivatives.
Key judgements and estimates
The preparation of the financial statements requires management to make
assumptions and estimates that may affect the reported amounts of assets and
liabilities and the reported income and expenses, further details of which are
set out below. Although management believes that the assumptions and estimates
used are reasonable, the actual results may differ from those estimates.
Further details of the estimates are contained in the Directors’ Report and
in the Group accounting policies.
Investments in subsidiaries, associated undertakings and joint ventures
Investments in subsidiaries, associated undertakings and joint ventures are
held at cost less accumulated impairment losses.
Fair value measurements of investment properties and investments
An assessment of the fair value of certain assets and liabilities, in
particular investment properties, is required to be performed. In such
instances, fair value measurements are estimated based on the amounts for
which the assets and liabilities could be exchanged between market
participants. To the extent possible, the assumptions and inputs used take
into account externally verifiable inputs. However, such information is by
nature subject to uncertainty. The directors note that the fair value
measurement of the investment properties may be considered to be less
judgemental where external valuers have been used and as a result of the
nature of the underlying assets.
The following accounting policies are consistent with those of the Group and
are disclosed on page 62 to 68 of the Group financial statements.
• Revenue
• Property operating expenses
• Employee benefits
• Financial instruments
• Investment properties
• Other assets and depreciation
• Assets held for sale
• Income taxes
• Leases
33.2. RESULT FOR THE FINANCIAL YEAR
The Company’s result for the year was a profit of £1,418,000 (2015 loss:
£4,144,000). In accordance with the exemption conferred by Section 408 of the
Companies Act 2006, the Company has not presented its own profit and loss
account.
33.3. Tangible assets
Investment Properties Office
Total £’000 Freehold £’000 Leasehold over 50 years £’000 Leasehold under 50 years £’000 equipment and motor vehicles £’000
Cost or valuation at 1 January 2016 28,769 8,460 18,216 1,644 449
Additions 31 28 – – 3
Disposals (105) – – – (105)
Decrease in present value of head leases (4) – (2) (2) –
(Decrease)/increase on revaluation (1,073) 397 (1,470) – –
Cost or valuation at 31 December 2016 27,618 8,885 16,744 1,642 347
Representing assets stated at:
Valuation 27,271 8,885 16,744 1,642 –
Cost 347 – – – 347
27,618 8,885 16,744 1,642 347
Depreciation at 1 January 2016 301 – – – 301
Charge for the year 25 – – – 25
Disposals (91) – – – (91)
Depreciation at 31 December 2016 235 – – – 235
Net book value at 1 January 2016 28,468 8,460 18,216 1,644 148
Net book value at 31 December 2016 27,383 8,885 16,744 1,642 112
The freehold and leasehold properties, excluding the present value of head
leases and directors’ valuations, were valued as at 31 December 2016 by
professional firms of chartered surveyors. The valuations were made at fair
value. The directors’ property valuations were made at fair value.
2016 £’000 2015 £’000
Allsop LLP 20,860 21,905
Directors’ valuation 1,825 1,825
22,685 23,730
Add: Present value of headleases 4,586 4,590
27,271 28,320
The historical cost of investment properties was as follows:
Freehold £’000 Leasehold over 50 years £’000 Leasehold under 50 years £’000
Cost at 1 January 2016 4,861 13,966 1,939
Additions 28 – –
Cost at 31 December 2016 4,889 13,966 1,939
Long leasehold properties are held on leases with an unexpired term of more
than fifty years at the balance sheet date.
33.4. Other investments
Cost Total £’000 Shares in subsidiary companies £’000 Shares in joint ventures £’000 Shares in associate £’000
At 1 January 2016 57,961 57,308 164 489
Impairment provision (14,980) (14,980) – –
At 31 December 2016 42,981 42,328 164 489
Subsidiary companies
Details of the Company’s subsidiaries are set out in Note 15. As stated on
page 78, under IFRS 10 Bisichi Mining Plc and its subsidiaries and Dragon
Retail Properties Limited are accounted for as subsidiaries of the Company.
Impairment reflects reduction in value of investment due to receipt of
dividend of £15 million from a subsidiary.
In the opinion of the directors the value of the investment in subsidiaries is
not less than the amount shown in these financial statements.
Details of the joint ventures are set out in Notes 12 and 13.
33.5. ASSETS HELD FOR SALE
2016 £’000 2015 £’000
Investment in Langney Shopping Centre Unit Trust
At 1 January 964 –
Transfer from investment in joint venture (note 12) – 964
Disposal (964) –
At 31 December – 964
On 11 March 2016, the Company disposed of its investment in Langney Shopping
Centre Unit Trust, an unlisted property unit trust incorporated in Jersey. The
company owned 12.5% of the units of the trust. The net proceeds from the sale
were £1,168,000 (including dividend).
33.6. Debtors
2016 £’000 2015 £’000
Trade debtors 343 315
Amounts due from associate and joint ventures 35 123
Amounts due from associate and joint ventures 150 –
Other debtors 173 159
Prepayments and accrued income 429 487
1,130 1,084
33.7. Investments
2016 £’000 2015 £’000
Market value of the listed investment portfolio 19 20
Unrealised gain/(deficit) of market value over cost 1 (3)
Listed investment portfolio at cost 18 23
All investments are listed on the London Stock Exchange.
33.8. Creditors: amounts falling due within one year
2016 £’000 2015 £’000
Amounts owed to subsidiary companies 28,750 47,511
Amounts owed to joint ventures 2,190 2,215
Other taxation and social security costs 388 314
Other creditors 1,323 1,364
Accruals and deferred income 2,139 2,365
34,790 53,769
33.9. Creditors: amounts falling due after more than one year
2016 £’000 2015 £’000
Present value of head leases on properties 4,586 4,590
Term Debenture stocks:
£3.75 million First Mortgage Debenture Stock 2018 at 11.6 per cent 3,000 3,750
£10 million First Mortgage Debenture Stock 2022 at 8.109 per cent* 9,905 9,888
12,905 13,638
17,491 18,228
*The £10 million debenture is shown after deduction of un–amortised issue
costs.
Details of terms and security of overdrafts, loans and loan renewal and
debentures are set out in note 21.
Repayment of borrowings:
Debentures:
Repayable within one year 750 –
Repayable between two and five years 3,000 3,750
Repayable in more than five years 9,905 9,888
13,655 13,638
33.10. deferred tax ASSET
2016 £’000 2015 £’000
Deferred Taxation
Balance at 1 January 3,055 4,699
Transfer to profit and loss account (973) (1,644)
Balance at 31 December 2,082 3,055
The deferred tax balance comprises the following:
Accelerated capital allowances (823) (868)
Short–term timing differences (124) (131)
Revaluation of investment properties 100 217
Loss relief 2,929 3,837
Deferred tax asset provision at end of period 2,082 3,055
33.11. Share capital
Details of share capital, treasury shares and share options are set out in
Note 26.
33.12. Related party transactions
Cost recharged to (by) related party £’000 Amounts owed by (to) related party £’000 Advanced to (by) related party £’000
Related party:
Dragon Retail Properties Limited
Current account (101) (i) (190) 30
Loan account – (2,000) –
Langney Shopping Centre Unit Trust
Current account 19 – –
Loan account – – (64)
Bisichi Mining PLC
Current account 138 (ii) 35 –
Simon Heller Charitable Trust
Current account (63) – –
Loan account – (700) –
Directors and key management
M A Heller and J A Heller 6 (i) 6 –
H D Goldring (Delmore Asset Management Limited) (30) (iii) (15) –
C A Parritt (19) (iii) (18) –
R Priest (A & M Europe LLP) (34) (iii) (34) –
Totals at 31 December 2016 (84) (2,916) (34)
Totals at 31 December 2015 (97) (2,788) (22)
Nature of costs recharged – (i) Management fees (ii) Property management
fees (iii) Consultancy fees
During the period, the Company entered into transactions, in the ordinary
course of business, with other related parties. The company has taken
advantage of the exemption under paragraph 8(k) of FRS101 not to disclose
transactions with wholly owned subsidiaries.
Dragon Retail Properties Limited – ‘Dragon’ is owned equally by the
Company and Bisichi Mining PLC. During 2012 Dragon lent the company £2
million at 6.875 per cent annual interest.
Langney Shopping Centre Unit Trust – ‘Langney’ is an unlisted property
unit trust incorporated in Jersey. It was owned 12.5 per cent by the Company
and 12.5 per cent by Bisichi Mining PLC until March 2016.
Bisichi Mining PLC – The company has 41.52 per cent ownership of
‘Bisichi’.
Other details of related party transactions are given in note 28.
33.13. Capital commitments
There were no capital commitments at 31 December 2016 (2015: £Nil).
33.14. OPERATING AND FINANCE LEASES
At 31 December 2015 the Company had commitments under non–cancellable
operating leases on land and buildings as follows:
2016 £’000 2015 £’000
Expiring in more than five years 1,680 1,920
In addition, the Company has an annual commitment to pay ground rents on its
leasehold investment properties which amount to £246,000 (2015: £246,000).
Present value of head leases on properties
Minimum lease payments Present value of minimum lease payments
2016 £’000 2015 £’000 2016 £’000 2015 £’000
Within one year 294 294 294 294
Second to fifth year 1,177 1,177 1,094 1,094
After five years 28,298 28,593 3,198 3,202
29,769 30,064 4,586 4,590
Future finance charges on finance leases (25,183) (25,474) – –
Present value of finance lease liabilities 4,586 4,590 4,586 4,590
Finance lease liabilities are in respect of leased investment property. A few
leases provide for contingent rent in addition to the rents above, usually a
proportion of rental income.
Finance lease liabilities are effectively secured as the rights to the leased
asset revert to the lessor in the event of default.
Future aggregate minimum rentals receivable
The Company leases out its investment properties to tenants under operating
leases. The future aggregate minimum rentals receivable under
non–cancellable operating leases are as follows:
2016 £’000 2015 £’000
Within one year 1,661 1,603
Second to fifth year 4,446 3,961
After five years 2,393 2,316
8,500 7,880
33.15. Contingent liabilities and post balance sheet events
There were no contingent liabilities at 31 December 2016 (2015: £Nil).
Five year financial summary
2016 £m 2015 £m 2014 £m 2013 £m 2012* £m
Portfolio size
Investment properties–LAP^ 89 89 89 87 205
Investment properties–joint ventures – 19 20 16 27
Investment properties–Dragon Retail Properties 3 3 3 3 –
Investment properties–Bisichi Mining^ 13 13 12 12 12
105 124 124 118 244
Portfolio activity £M £M £M £M £M
Acquisitions – 1.00 0.68 – –
Disposals – (0.40) – (9.47) –
Capital Expenditure 0.16 0.36 – – 0.97
0.16 0.96 0.68 (9.47) 0.97
Consolidated income statement £m £m £m £m £m
Group income 29.70 32.67 33.53 43.29 15.17
(Loss)/profit before tax (0.97) (2.09) (2.69) 1.14 7.62
Taxation (1.18) 0.04 (3.70) 2.55 (0.35)
(Loss)/profit attributable to shareholders (2.36) (1.90) (7.14) 3.47 7.27
Earnings/(loss) per share – basic and diluted (2.77)p (2.24)p (8.45)p 4.12p 8.65p
Dividend per share 0.165p 0.160p 0.156p 0.125p –
Consolidated balance sheet £m £m £m £m £m
Shareholders’ funds attributable to equity shareholders 38.24 40.08 42.55 49.73 46.46
Net borrowings 62.22 62.39 59.71 53.96 131.27
Net assets per share – basic 44.83p 47.26p 50.35p 59.00p 55.30p
– fully diluted 44.83p 47.26p 50.35p 59.00p 55.29p
Consolidated cash flow statement £m £m £m £m £m
Cash generated from operations 5.59 4.37 2.96 12.23 12.72
Capital investment and financial investment (0.18) (2.77) 100.42 4.35 (0.87)
Notes:
* Original LAP group – pre IFRS 10 amendments
^ Excluding the present value of head leases
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