REG - Palace Capital PLC - Half Yearly Report <Origin Href="QuoteRef">PCA.L</Origin> - Part 2
27/11/2014 07:11
- Part 2: For the preceding part double click ID:nRSa1305Ya
cash flow from operating activities 1,771,813 (15,858) 1,297,372
5 INVESTMENT PROPERTIES
30 September2014(unaudited) 31 July 2013(unaudited) 31 March 2014(audited)
£ £ £
Opening balance 59,440,168 2,015,000 2,015,000
Arising on acquisition of subsidiary undertakings 32,099,924 - 39,670,168
Additions 1,008,360 - 750,000
Gains on revaluation of investment property portfolio 7,291,715 - 19,500,531
Disposals - - (2,495,531)
Closing balance 99,840,167 2,015,000 59,440,168
Investment properties are stated at fair value as determined by the Directors.
The Directors have decided that the fair value of the PIH portfolio assets at
acquisition was £32,099,924 and at 30 September 2014 was £33,470,000, as
supported by an independent valuation. The fair value of the Sequel portfolio
of assets amounted to £62,890,000 (31 March 2014 - £57,210,168) and the fair
value of the Hockenhull portfolio of assets amounted to £2,260,000 (31 March
2014 - £2,230,000). The fair value represents the amount at which the assets
could be exchanged between a knowledgeable, willing buyer and a knowledgeable,
willing seller in an arms length transaction at the date of valuation, in
accordance with International Valuation Standards.
Investment properties in the Sequel portfolio with a carrying value of
£62,890,000 are subject to a first charge to secure a bank loan amounting to
£17,332,359.
Investment properties in the PIH portfolio with a carrying value of
£33,470,000 are subject to a first charge to secure a bank loan amounting to
£15,900,000.
Investment properties in the Hockenhull portfolio with a carrying value of
£2,260,000 are subject to a first charge to secure a bank loan amounting to
£1,199,227.
Included in investment property values are the freehold interest of leasehold
properties amounting to £1,220,167.
6 TRADE AND OTHER RECEIVABLES
30 September2014(unaudited) 31 July2013(unaudited) 31 March 2014(audited)
£ £ £
Trade receivables 1,504,242 - 1,410,332
Other taxes 123,010 7,242 36,925
Other receivables 26,880 - 71,806
Prepayments and accrued income 717,238 13,665 957,727
2,371,370 20,907 2,476,790
Non- Current 497,681 - 539,995
Current 1,873,689 20,907 1,936,795
2,371,370 20,907 2,476,790
7 CURRENT TRADE AND OTHER PAYABLES
30 September2014(unaudited) 31 July2013(unaudited) 31 March 2014(audited)
£ £ £
Convertible loan notes - 85,000 -
Redeemable preference shares - 65,000 -
Trade creditors 683,049 15,794 338,812
Bank loans 400,000 - 1,199,959
Other creditors 122,104 - 46,103
Income tax 8,648 2,267 7,468
Other taxes 620,727 - 827,280
Accruals and deferred income 2,113,956 71,366 1,751,760
3,948,484 239,427 4,171,382
8 NON CURRENT LIABILITIES
30 September2014(unaudited) 31 July2013(unaudited) 31 March 2014(audited)
£ £ £
Convertible loan notes - 287,347 290,619
Loan notes - 277,500 -
Bank Loans 33,607,615 1,199,981 17,093,560
33,607,615 1,764,828 17,384,179
Non-current liabilities 30 September2014(unaudited) 31 July2013(unaudited) 31 March 2014(audited)
£ £ £
Bank Loans 34,031,586 1,199,981 17,332,360
Amortised borrowing costs (423,971) - (238,800)
33,607,615 1,199,981 17,093,560
Included within bank loans is an amount of £17,332,359 which is secured on the
Sequel portfolio of investment properties. Interest is charged at a rate of
3.75% above the 3 month Libor rate. The loan is repayable on 21 October 2016.
Loan arrangement fees amounting to £192,083 are spread over the term of the
loan and have been deducted from the bank loan balance.
Included within bank loans is an amount of £15,900,000 which is secured on the
PIH portfolio of investment properties. Interest is charged at a rate of
2.75% above the National Westminster Bank Plc base rate. An amount of
£100,000 is repayable quarterly with the remaining loan repayable, at the end
of the term of the loan, on 26 August 2019. Loan arrangement fees amounting
to £231,888 are spread over the term of the loan and have been deducted from
the bank loan balance.
Included within bank loans is an amount of £1,199,227 which is secured on the
Hockenhull portfolio of investment properties. Interest is charged at a rate
of 4% above the 1 month Libor rate with a minimum rate of 5% and is payable
monthly. The loan is repayable on 30 September 2017.
The convertible loan notes of £300,000 were provided by a pension scheme of
which Stanley Davis is a beneficiary at an interest rate of 4%. The loan was
repaid on 23 June 2014.
9 BUSINESS COMBINATIONS
On 26 August 2014 the group acquired 100% of the share capital of Property
Investment Holdings Limited for a consideration of £3,420,723. The
consideration was satisfied by issuing 1,103,459 ordinary 10p shares at an
issue price of £3.10.
Carrying value at acquisition date Adjustments Fair value at acquisition date
Investment properties 29,385,000 2,714,924 32,099,924
Tangible fixed assets 73 73
Receivables and prepayment 261,953 - 261,953
Cash at bank and in hand 268 - 268
Payables and other creditors (416,378) - (416,378)
Bank loans (28,525,117) - (28,525,117)
Deferred tax (401,342) 401,342 -
Net assets 304,457 3,116,266 3,420,723
Consideration 3,420,723
Goodwill on acquisition -
10 SHARE CAPITAL
30 September2014(unaudited) 31 July2013(unaudited) 31 March 2014(audited)
Ordinary 1p shares - 315,938 -
20,075,673 (2014 - 12,440,937) ordinary 10p shares 2,007,567 - 1,244,094
315,937 deferred 90p shares 284,344 - 284,344
Share capital 2,291,911 315,938 1,528,438
Redeemable £1 preference shares - 65,000 -
On 23 June 2014 79,665 warrants were exercised and as a result the company
issued 79,665 ordinary 10p shares at a price of £2.00.
On 26 August 2014 the company issued 7,555,071 ordinary 10p shares at a price
of £3.10. Issue costs amounting to £795,684 were incurred and have been
deducted from the share premium account.
This information is provided by RNS
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