REG - Panther Securities - Final Results <Origin Href="QuoteRef">PNS.L</Origin> - Part 2
27/04/2016 11:10
- Part 2: For the preceding part double click ID:nRSa5154Wa
30,243 102,571
Current liabilities
Trade and other payables 10,663 11,681
Short-term borrowings 69,637 1,140
Liabilities held for sale - 228
Current tax payable 365 111
80,665 13,160
Total liabilities 110,908 115,731
Total equity and liabilities 187,005 187,285
The accounts were approved by the Board of Directors and authorised for issue
on 27 April 2016. They were signed on its behalf by:
A.S. Perloff
Chairman
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2015
Share Share Capital Retained Total
capital premium redemption earnings
£'000 £'000 £'000 £'000 £'000
Balance at 1 January 2014 4,297 3,750 604 59,225 67,876
Total comprehensive income - - - 4,650 4,650
Dividends 75 942 - (2,071) (1,054)
Balance at 1 January 2015 4,372 4,692 604 61,804 71,472
Total comprehensive income - - - 6,852 6,852
Dividends 65 799 - (3,171) (2,307)
Balance at 31 December 2015 4,437 5,491 604 65,485 76,017
Within retained earnings are unrealised losses of £97,000 and deferred tax
credit of £17,000 (2014 - unrealised losses of £2,574,000 and a deferred tax
credit of £512,000) relating to fair value of available for sale investments
(shares).
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2015
31 December 2015 31 December 2014
£'000 £'000
Restated
Cash flows from operating activities
Profit from operating activities 7,373 6,373
Add: Depreciation charges for the year 135 116
Add: Loss on impairment of stock properties - 259
Rent paid treated as interest (520) (544)
Profit before working capital change 6,988 6,204
Increase in inventory 5 79
Increase in receivables 292 439
(Decrease)/ increase in payables (1,139) 2,517
Cash generated from operations 6,146 9,239
Interest paid (4,572) (4,457)
Income tax paid (95) (188)
Net cash generated from operating activities 1,479 4,594
Cash flows from investing activities
Purchase of plant and equipment (38) (89)
Purchase of investment properties (2,224) (3,171)
Purchase of available for sale investments (shares) - (63)
Proceeds from sale of investment property 4,019 1,193
Proceeds from sale of available for sale investments (shares) 244 -
Proceeds from sale of fixed assets - 29
Dividend income received 23 11
Interest income received 8 10
Net cash generated from/ (used in) investing activities 2,032 (2,080)
Cash flows from financing activities
Repayments of loans (3,152) (1,180)
Draw down of loan 1,000 1,197
Dividends paid (2,307) (1,054)
Net cash used in financing activities (4,459) (1,037)
Net (decrease)/ increase in cash and cash equivalents (948) 1,477
Cash and cash equivalents at the beginning of year 5,335 3,858
Cash and cash equivalents at the end of year* 4,387 5,335
Net cash used in financing activities
(4,459)
(1,037)
Net (decrease)/ increase in cash and cash equivalents
(948)
1,477
Cash and cash equivalents at the beginning of year
5,335
3,858
Cash and cash equivalents at the end of year*
4,387
5,335
* Of this balance £1,110,000 (2014: £247,000) is restricted by the Group's
lenders i.e. it can only be used for purchase of investment property
NOTES:
1. General information
While the financial information included in this preliminary announcement has
been prepared in accordance with the recognition and measurement principles of
International Financial Reporting Standards (IFRSs), this announcement does
not itself contain sufficient information to comply with IFRSs. The Group has
also published full financial statements that comply with IFRSs available on
its website and to be circulated shortly.
The financial information set out in the announcement does not constitute the
company's statutory accounts for the years ended 31 December 2015 or 2014.
The financial information for the year ended 31 December 2014 is derived from
the statutory accounts for that year, which were prepared under IFRSs, and
which have been delivered to the Registrar of Companies. The auditors
reported on those accounts, their report was unqualified and did not contain a
statement under either Section 498(2) or Section 498(3) of the Companies Act
2006 and did not include references to any matters to which the auditors drew
attention by way of emphasis.
The financial information for the year ended 31 December 2015 is derived from
the audited statutory accounts for the year ended 31 December 2015 on which
the auditors have given an unqualified report, that did not contain a
statement under section 498(2) or 498(3) of the Companies Act 2006 and did not
include references to any matters to which the auditors drew attention by way
of emphasis. The statutory accounts will be delivered to the Registrar of
Companies following the company's annual general meeting.
The accounting policies adopted in the preparation of this preliminary
announcement are consistent with those set out in the latest Group Annual
financial statements.
Going concern
The Group is strongly capitalised, has considerable liquidity together with a
number of long term contracts with its customers many of which are household
names. The Group also has strong diversity in terms of customer spread,
investment location and property sector.
The Directors believe the Group is very well placed to manage its business
risks successfully and have a good expectation that both the Company and the
Group have adequate resources to continue their operations. For these
reasons they continue to adopt the going concern basis in preparing the
financial statements.
2. Dividends
Amounts recognised as distributions to equity holders in the period:
2015£'000 2014£'000
Final dividend for the year ended 31 December 2014 of 9p per share (2013: 9p per share) 1,574 1,546
Interim dividend for the year ended 31 December 2015 of 9p per share (2014: 3p per share) 1,597 525
3,171 2,071
The Directors recommend a payment of a final dividend, for the year ended 31
December 2015 of 3p per share (2014 - 9p), following the interim dividend paid
on 27 November 2015 of 9p per share. The final dividend of 3p per share will
be payable on 5 September 2016 to shareholders on the register at the close of
business on 19 August 2016 (Ex dividend on 18 August 2016).
Further to the above ordinary dividends a special dividend of 10p per share
was paid on 31 March 2016. The special dividend was in relation to the year
ended 31 December 2015.
The full ordinary dividend for the year ended 31 December 2015 is anticipated
to be 12p per share, plus 10p per share special dividend, being a total of 22p
per share.
3. Earnings per ordinary share (basic and diluted)
The calculation of profit per ordinary share is based on profit, after
excluding non-controlling interests, being a profit of £6,815,000 (2014 -
£4,650,000) and on 17,617,112 ordinary shares being the weighted average
number of ordinary shares in issue during the year (2014 - 17,336,791). There
are no potential ordinary shares in existence.
4. Investment property
Investment Properties
£'000
Fair value
At 1 January 2014 158,184
Additions 3,171
Disposals (1,250)
Transferred from stock properties 200
Fair value adjustment on property held on operating leases (3)
Revaluation increase 13,110
At 1 January 2015 173,412
Additions 2,224
Disposals (2,945)
Fair value adjustment on property held on operating leases (417)
Revaluation increase 3,859
At 31 December 2015 176,133
Carrying amount
At 31 December 2015 176,133
At 31 December 2014 173,412
5. Derivative financial instruments
The main risks arising from the Group's financial instruments are those
related to interest rate movements. Whilst there are no formal procedures for
managing exposure to interest rate fluctuations, the Board continually reviews
the situation and makes decisions accordingly. Hence, the Company will, as far
as possible, enter into fixed interest rate swap arrangements. The purpose of
such transactions is to manage the interest rate risks arising from the
Group's operations and its sources of finance.
2015 2014
Bank loans £'000 £'000
Interest is charged as to: Rate Rate
Fixed/ Hedged
HSBC Bank plc* 35,000 7.06% 35,000 7.06%
HSBC Bank plc** 25,000 6.63% 25,000 6.63%
Unamortised loan arrangement fees - (182)
Floating element
HSBC Bank plc 9,497 11,497
Natwest Bank plc 731 883
70,228 72,198
Bank loans totalling £60,000,000 (2014 - £60,000,000) are fixed using interest
rate swaps removing the Group exposure to fair value interest rate risk. Other
borrowings are arranged at floating rates, thus exposing the Group to cash
flow interest rate risk.
Financial instruments for Group and Company
The derivative financial assets and liabilities are designated as held for
trading.
Hedged amount Average rate Duration of contract remaining 2015Fair value 2014Fair value
£'000 'years' £'000 £'000
Derivative Financial Liability
Interest rate swap 35,000 5.06% 22.69 (18,541) (19,282)
Interest rate swap 25,000 4.63% 5.92 (4,371) (5,193)
(22,912) (24,475)
Net fair value gain/ (loss) on derivative financial assets 1,563 (9,813)
* Fixed rate came into effect on 1 September 2008. Rate includes 2% margin.
The contract includes mutual breaks, the first potential one was on 23
November 2014 (and every 5 years thereafter).
** This arrangement came into effect on 1 December 2011 when HSBC exercised an
option to enter the Group into this interest swap arrangement. The rate shown
includes a 2% margin. This contract includes a mutual break on the fifth
anniversary and its duration is until 1 December 2021.
6. Events after the reporting date
In January 2016 the Group completed the sale on a conditional contract for the
upper parts of Old Inn House, Sutton for £3,900,000 (before costs).
In March 2016 the group disposed of a property in Southend for £1,050,000
(before costs).
In March 2016 the Group purchased Lord Street Properties (Southport) Ltd for
£4,500,000 (including costs).
In March 2016, JE Beale PLC (a subsidiary of Beale Ltd) ("Beale"), entered and
had approved a landlords only Creditors Voluntary Arrangement ("CVA"), which
affected two of Panther's property investments. Beale have the right to exit
these stores in 10 months, and will pay a third of the rent in the meantime,
the pre-CVA combined rent being £350,000. This process however does put Beale
into a stronger financial position, which make rental streams on other
investment properties owned by Panther, where Beale is a tenant, more secure.
On 19 April 2016 the Group renewed its £75,000,000 loan facility by entering
into a new 5 year term loan with HSBC and Santander. The Group has the option
to draw down an additional £10,000,000 under the same agreement subject to the
banks credit approval process.
Copies of the full set of Report and Accounts will be posted to shareholders
shortly, will be available from the Company's registered office at Deneway
House, 88-94 Darkes Lane, Potters Bar, Hertfordshire, EN6 1AQ and are
available for download on the Group's website www.pantherplc.com.
Panther Securities PLC +44 (0) 1707 667 300
Andrew Perloff, Chairman
Simon Peters, Finance Director
Allenby Capital Limited +44 (0) 20 3328 5656
David Worlidge
Virginia Bull
This information is provided by RNS
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