REG - Panther Securities - Trading Update & Declaration of Special Dividend

Panther SecuritiesAnnouncement

16/01/2023 07:00

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RNS Number : 7513M  Panther Securities PLC  16 January 2023

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 which forms part of domestic UK law pursuant to the European
Union (Withdrawal) Act 2018 ("UK MAR"). With the publication of this
announcement via a Regulatory Information Service, this inside information is
now considered to be in the public domain.

 

16 January 2023

 

Panther Securities PLC

(the "Company" or the "Group")

Trading update and declaration of a special dividend

Trading update for 2022

The year ended 31 December 2022 has been a strong year for the Group.

When we finalise the results for the year, we expect to see a strong increase
in the Group's net asset values, with the fixed interest rate derivatives
liability reducing significantly (and becoming an asset), with the improvement
being circa £19 million.  The Group also expects to see slight improvements
to the value of its investment properties, as well as increased revenues.
The Group is also pleased with its main purchases in 2022 - including two
sizeable industrial investments which cost a combined circa £8.2 million and
have a current rental return of £885,000 p.a.

The main improvement to the balance sheet for the Company in 2022 is the
complete removal of the liabilities on the Group's two financial derivatives,
which now sit as assets on the balance sheet. The first is at a fixed rate of
2.01% on £25 million with circa nine years to run.  The second is at a fixed
rate of 5.06% (dropping to 3.40% on 1 September 2023 for the remainder of its
term) on £35 million with circa 15.5 years to run.  The Board expects these
to be good long term hedges given the current market consensus on future
interest rates.

The Group's loan to value with its lenders is under 40% and its actual
interest cover is approaching three times on its charged portfolio.  The
Group also benefits by having an uncharged portfolio with a conservative value
of approximately £10 million.  With 97% of the Group's loan interest fixed
on long term rates we do not believe we need to be concerned about potential
rises in interest rates.  The Board considers that this puts the Company in a
strong position for the discussions, that we plan to start later in 2023 on
our refinance which we need to agree by July 2024, as many lenders will
currently be concerned about interest cover which is not an issue for the
Group.

In summary, the business is financially comfortable but we appreciate that
there is a cost of living crisis. As such whilst we are in a strong position,
the Board feels the appropriate response is to return additional funds to our
shareholders.

The financial information in this announcement remains subject to audit.

Special dividend

In recognition of the progress made to date, the Board is pleased to confirm
that the Company will pay an additional special interim dividend for the year
ended 31 December 2023 of 10p per share.

The dividend timetable is set out below:

 Ex-Dividend Date:  26 January 2023
 Record Date:       27 January 2023
 Payment Date:      10 February 2023

 

For the year ended 31 December 2022, the Company still expects to recommend an
additional 6p per share final dividend, to be paid following shareholders'
approval at the Company's annual general meeting, expected to take place in
June 2023.  A 6p per share interim dividend was already paid in October 2022.

For further information:

Panther Securities
plc:
Tel: 01707 667 300

Andrew Perloff / Simon Peters

Allenby Capital Limited (Nomad and Joint
Broker)                             Tel: 020 3328
5656

David Worlidge/ Alex Brearley

 

 

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