REG - Panther Securities - Final Results <Origin Href="QuoteRef">PNS.L</Origin> - Part 2
26/04/2017 07:06
- Part 2: For the preceding part double click ID:nRSZ3239Da
Dividend income received 103 23
Interest income received 6 8
Net cash generated from investing activities 773 2,032
Cash flows from financing activities
Repayments of loans (1,655) (3,152)
Loan arrangement fees and associated costs (442) -
Draw down of loan 2,000 1,000
Dividends paid (2,840) (2,307)
Net cash used in financing activities (2,937) (4,459)
Net increase/(decrease) in cash and cash equivalents 500 (948)
Cash and cash equivalents at the beginning of year* 4,387 5,335
Cash and cash equivalents at the end of year* 4,887 4,387
(2,937)
(4,459)
Net increase/(decrease) in cash and cash equivalents
500
(948)
Cash and cash equivalents at the beginning of year*
4,387
5,335
Cash and cash equivalents at the end of year*
4,887
4,387
* Of this balance £1,017,000 (2015: £1,110,000) 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 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 2016 or 2015.
The financial information for the year ended 31 December 2015 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 report
on those accounts was unqualified, 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 2016 is derived from
the audited statutory accounts for the year ended 31 December 2016 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. There is no material seasonality associated with the
Group's activities.
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:
2016£'000 2015£'000
Special dividend for the year ended 31 December 2015 of 10p per share 1,776 -
Final dividend for the year ended 31 December 2015 of 3p per share (2014: 9p per share) 532 1,574
Interim dividend for the year ended 31 December 2016 of 3p per share (2015: 9p per share) 532 1,597
2,840 3,171
The Directors recommend a payment of a final dividend, for the year ended 31
December 2016 of 9p per share (2015 - 3p), following the interim dividend paid
on 29 November 2016 of 3p per share. The final dividend of 9p per share will
be payable on 21 July 2017 to shareholders on the register at the close of
business on 7 July 2017 (Ex dividend on 6 July 2017).
The full ordinary dividend for the year ended 31 December 2016 is anticipated
to be 12p per share, being the 3p interim per share paid and the 9p per share
proposed.
3. (Loss)/earnings per ordinary share (basic and diluted)
The calculation of loss per ordinary share is based on the loss, after
excluding non-controlling interests, being a loss of £970,000 (2015 - a profit
of £6,815,000) and on 17,746,929 ordinary shares being the weighted average
number of ordinary shares in issue during the year (2015 - 17,617,112). There
are no potential ordinary shares in existence.
4. Investment property
Investment Properties
£'000
Fair value
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 1 January 2016 176,133
Additions 539
Acquisition of subsidiary 4,462
Disposals (5,335)
Transferred from stock properties 255
Fair value adjustment on property held on operating leases 117
Revaluation increase 318
At 31 December 2016 176,489
Carrying amount
At 31 December 2016 176,489
At 31 December 2015 176,133
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.
2016 2015
Bank loans £'000 £'000
Interest is charged as to: Rate Rate
Fixed/ Hedged
HSBC Bank plc* 35,000 7.01% 35,000 7.06%
HSBC Bank plc** 25,000 6.58% 25,000 6.63%
Unamortised loan arrangement fees (654) -
Floating element
HSBC Bank plc 9,997 9,497
Natwest Bank plc 576 731
69,919 70,228
Bank loans totalling £60,000,000 (2015 - £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 2016Fair value 2015Fair value
£'000 'years' £'000 £'000
Derivative Financial Liability
Interest rate swap 35,000 5.06% 21.69 (23,610) (18,541)
Interest rate swap 25,000 4.63% 4.92 (4,640) (4,371)
(28,250) (22,912)
Net fair value (loss)/gain on derivative financial assets (5,338) 1,563
* Fixed rate came into effect on 1 September 2008. Rate includes 1.95%
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 1.95% 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 March 2017 the Group took a surrender premium for a lease in Maldon,
receiving just under £2 million. This covered all the rent to the end of
lease and dilapidations. The lease had rent of £500,000 p.a. and ended on 11
August 2021.
In April 2017 the Group sold its entire holding in William Nash PLC an
unlisted property company, for £1,486,000 which was held at cost and shown at
the yearend on the Consolidated Statement of Financial Position within
"Available for sale investments" at a value of £627,000.
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 Unicorn
House, Station Close, Potters Bar, Hertfordshire, EN6 1TL 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
Alex Brearley
This information is provided by RNS
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