REG - Panther Securities - Interim Results <Origin Href="QuoteRef">PNS.L</Origin> - Part 2
26/09/2017 14:01
- Part 2: For the preceding part double click ID:nRSZ8668Ra
Cost of sales from rental income 1,784 1,694 3,066
Cost of sales from trading (MRG Systems Ltd) 281 343 577
2,065 2,037 3,643
3. Income tax expense
The charge for taxation comprises the following:
30 June 30 June 31 December
2017 2016 2016
£'000 £'000 £'000
Unaudited Unaudited Audited
Current period UK corporation tax 765 161 448
Prior period UK corporation tax 53 - (188)
818 161 260
Current period deferred tax 147 (1,908) (1,255)
Income tax expense/(credit) for the period 965 (1,747) (995)
The taxation charge is calculated by applying the Directors' best estimate of
the annual effective tax rate to the profit for the period.
4. Dividends
Amounts recognised as distributions to equity holders in the period:
30 June 30 June 31 December
2017 2016 2016
£'000 £'000 £'000
Unaudited Unaudited Audited
Special dividend for the year ended 31 December 2015 of 10p per share - 1,775 1,776
Final dividend for the year ended 31 December 2015 of 3p per share - 532 532
Interim dividend for the year ended 31 December 2016 of 3p per share - - 532
Final dividend for the year ended 31 December 2016 of 9p per share 1,215* - -
1,215 2,307 2,840
The final dividend of 9p per share for the year ended 31 December 2016 was not
paid at the period end but declared (being accrued in these accounts) and was
paid on 21 July 2017.
*Andrew Perloff waived his personal entitlement to the Group's final dividend
for the year ended 31 December 2016 on his personal shareholding of 4,244,360
resulting in a reduction in the dividend liability of £382,000 (at the period
end).
The Directors have declared an interim dividend of 5p per share to be paid on
29 November 2017 to shareholders on the register at 10 November 2017
(ex-dividend 9 November 2017).
5. Earnings per ordinary share (basic and diluted)
The calculation of basic and diluted earnings per ordinary share is based on
earnings, after excluding non-controlling interests, being a profit of
£5,781,000 (30 June 2016 - loss of £4,896,000 and 31 December 2016 - loss of
£970,000).
The basic earnings per share is based on the weighted average of the ordinary
shares in existence throughout the period, being 17,746,929 to 30 June 2017
(17,746,929 to 31 December 2016 and also to 30 June 2016). There are no
potential shares in existence for any period therefore diluted and basic
earnings per share are equal.
After the period end Panther Securities PLC bought 63,460 ordinary shares that
it currently holds in treasury.
6. Investment Properties
30 June 30 June 31 December
2017 2016 2016
£'000 £'000 £'000
Unaudited Unaudited Audited
Fair value of investment properties
At 1 January 176,489 176,133 176,133
Additions 136 89 539
Acquisition of subsidiary - 4,462 4,462
Transfer from stock property 164 - 255
Fair value adjustment on property held on operating leases - - 117
Disposals (20) (5,324) (5,335)
Revaluation increase - 263 318
176,769 175,623 176,489
The directors consider that the fair value of the investment properties has
not materially changed since it was last valued by the directors at the 31
December 2016 Statement of Financial Position date.
7. 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.
30 June 30 June 31 December
2017 2016 2016
£'000 £'000 £'000
Bank loans Unaudited Rate Unaudited Rate Audited Rate
Interest is charged as to:
Fixed/ Hedged
HSBC Bank plc* 35,000 7.01% 35,000 7.03% 35,000 7.01%
HSBC Bank plc** 25,000 6.58% 25,000 6.60% 25,000 6.58%
Unamortised loan arrangement fees (572) (704) (654)
Floating element
HSBC Bank plc 9,997 11,497 9,997
Natwest Bank plc 497 655 576
69,922 71,448 69,919
Bank loans totalling £60,000,000 (2016 - £60,000,000) are fixed using interest
rate swaps removing the Group's exposure to interest rate risk. Other
borrowings are arranged at floating rates, thus exposing the Group to cash
flow interest rate risk.
The derivative financial assets and liabilities are designated as held for
trading.
Hedged amount Rate (without margin) Duration of contract remaining 30 June 2017Fair value 30 June 2016Fair value 31 December 2016Fair value
£'000 years £'000 £'000 £'000
Unaudited Unaudited Audited
Derivative Financial Liability
Interest rate swap 35,000 5.06% 21.19 (21,881) (25,530) (23,610)
Interest rate swap 25,000 4.63% 4.42 (3,915) (5,365) (4,640)
(25,796) (30,895) (28,250)
Movement in derivative financial liabilities 2,454 (7,983) (5,338)
* Fixed rate came into effect on 1 September 2008. The rate includes 1.95%
margin (previously 2%). The contract includes mutual breaks, the next one
being on 23 December 2019 (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
includes a 1.95% margin (previously 2%). This contract includes a mutual
break on the fifth anniversary and its duration is until 1 December 2021.
Interest rate derivatives are shown at fair value in the statement of
financial position, with charges in fair value taken to the income statement.
Interest rate swaps are classified as level 2 in the fair value hierarchy
specified in IFRS 13.
The vast majority of the derivative financial liabilities are due in over one
year and therefore they have been disclosed as all due in over one year.
The above fair values are based on quotations from the Group's banks and
Directors' valuation.
Treasury management
The long-term funding of the Group is maintained by three main methods, all
with their own benefits. The Group has equity finance, has surplus profits
and cash flow which can be utilised, and also has loan facilities with
financial institutions. The various available sources provide the Group with
more flexibility in matching the suitable type of financing to the business
activity and ensure long-term capital requirements are satisfied.
8. Net asset value per share
30 June 30 June 31 December
2017 2016 2016
£'000 £'000 £'000
Unaudited Unaudited Audited
Basic and diluted 433p 388p 407p
9. Copies of this report are to be sent to all shareholders and are
available from the Company's registered office at Unicorn House, Station
Close, Potters Bar, EN6 1TL and will also be available for download from our
website www.pantherplc.com.
This information is provided by RNS
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