REG - Town Centre Secs. - Half-year Results <Origin Href="QuoteRef">TOWNT.L</Origin> - Part 2
26/02/2018 07:05
- Part 2: For the preceding part double click ID:nRSZ8420Fa
4,462
Leasehold improvements - 3,759 3,759
At 31 December 2017 328,856 23,212 352,068
All investment properties measured at fair value in the consolidated balance
sheet are categorised as level 3 in the fair value hierarchy as defined in
IFRS13 as one or more inputs to the valuation are partly based on unobservable
market data. In arriving at their valuation for each property (as in prior
periods) both the independent valuers and the Property Director have used the
actual rent passing and have also formed an opinion as to the two key
unobservable inputs being the market rental for that property and the yield
(i.e. the discount rate) which a potential purchaser would apply in arriving
at the market value. Both these inputs are arrived at using market comparables
for the type, location and condition of the property.
(c) Fixtures, equipment and motor vehicles
Accumulated Net book
Cost depreciation value
£000 £000 £000
At 1 July 2016 4,373 2,222 2,151
Additions 586 - 586
Disposals (140) (103) (37)
Depreciation - 728 (728)
At 1 July 2017 4,819 2,847 1,972
Additions 130 - 130
Disposals (50) (41) (9)
Depreciation - 378 (378)
At 31 December 2017 4,899 3,184 1,715
7. Goodwill
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2017 2016 2017
£000 £000 £000
At start and end of period 4,024 4,024 4,024
Goodwill represents the difference between the fair value of the consideration
paid on the acquisitions of car park businesses and the fair value of the
assets and liabilities acquired as part of these business combinations.
8. Investments in joint ventures
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2017 2016 2017
£000 £000 £000
Interest in joint ventures
At start of period 27,852 25,093 25,093
Additions 6,994 750 4,250
Disposal of joint venture interest - - (1,800)
Dividends and other distributions received in the year (206) (321) (1,033)
Share of profits after tax 1,513 545 1,342
At end of period 36,153 26,067 27,852
Investments in joint ventures primary relates to the Group's interest in the
partnership capital of Merrion House LLP. The investment property held within
this partnership has been externally valued by CBRE at each reporting date.
9. Called up equity share capital
Authorised
164,879,000 (30 June 2017: 164,879,000) ordinary shares of 25p each.
Issued and fully paid Number of shares Nominal value
000 £000
At 1 July and 31 December 2017 53,162 13,290
10. Cash flows from operating activities
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2017 2016 2017
£000 £000 £000
Profit for the period 12,448 2,599 6,725
Adjustments for:
Depreciation 464 445 905
Profit on disposal of fixed assets - (8) (23)
Profit on disposal of investment properties (1,198) (65) (303)
Finance costs 3,859 3,766 7,639
Share of joint venture profits after tax (1,513) (545) (1,342)
Movement in revaluation of investment properties (5,269) 2,850 2,085
Movement in lease incentives (1,962) 153 145
Reversal of impairment of car parking assets (800) (1,000) (1,000)
Decrease in receivables 154 3,990 4,192
Increase/(decrease) in payables 2,205 (1,417) (864)
Cash generated from operations 8,388 10,768 18,159
11. Net asset value per share
Net asset value per share is calculated as the net assets of the Group
attributable to shareholders at each balance sheet date, divided by the number
of shares in issue at that date.
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2017 2016 2017
Net asset value (£'000) 199,289 188,470 191,078
Number of ordinary shares in issue 53,161,950 53,161,950 53,161,950
Net asset value per share (pence) 375p 355p 359p
12.Related party information
There have been no material changes in the related party transactions
described in the 2017 Accounts.
INDEPENDENT REVIEW REPORT TO TOWN CENTRE SECURITIES PLC
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 31
December 2017 which comprises the Consolidated Income Statement, Consolidated
Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated
Statement of Changes in Equity, Consolidated Cash Flow Statement and related
notes.
We have read the other information contained in the half-yearly financial
report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set of
financial statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of and has been
approved by the Directors. The Directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with International Financial Reporting Standards
(IFRSs) as adopted by the European Union. The condensed set of financial
statements included in this half-yearly financial report has been prepared in
accordance with International Accounting Standard 34, ''Interim Financial
Reporting'', as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Our report has been prepared in accordance with the terms of our engagement to
assist the Company in meeting its responsibilities in respect of half-yearly
financial reporting in accordance with the Disclosure and Transparency Rules
of the United Kingdom's Financial Conduct Authority and for no other purpose.
No person is entitled to rely on this report unless such a person is a person
entitled to rely upon this report by virtue of and for the purpose of our
terms of engagement or has been expressly authorised to do so by our prior
written consent. Save as above, we do not accept responsibility for this
report to any other person or for any other purpose and we hereby expressly
disclaim any and all such liability.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, ''Review of Interim Financial Information
Performed by the Independent Auditor of the Entity'', issued by the Financial
Reporting Council for use in the United Kingdom. A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on Auditing (UK)
and consequently does not enable us to obtain assurance that we would become
aware of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 31 December 2017 is not prepared, in
all material respects, in accordance with International Accounting Standard
34, as adopted by the European Union, and the Disclosure and Transparency
Rules of the United Kingdom's Financial Conduct Authority.
BDO LLP
Chartered Accountants
United Kingdom
26 February 2018
BDO LLP is a limited liability partnership registered in England and Wales
(with registered number OC305127).
This information is provided by RNS
The company news service from the London Stock Exchange
- Part 2: For the preceding part double click ID:nRSZ8420Fa
1,962 - - 1,962
Valuation at 31 December 2017 270,596 22,609 35,651 328,856
(b) Freehold and leasehold properties - car park activities
Freehold Leasehold Total
£000 £000 £000
Valuation at 1 July 2016 2,000 19,075 21,075
Additions - 498 498
Depreciation - (178) (178)
Surplus on revaluation - 100 100
Reversal of impairment - 1,000 1,000
Valuation at 1 July 2017 2,000 20,495 22,495
Additions - 2 2
Depreciation - (85) (85)
Reversal of impairment 500 300 800
Valuation at 31 December 2017 2,500 20,712 23,212
The fair value of the Group's investment properties and freehold and leasehold
properties has been determined principally by independent, appropriately
qualified external valuers CBRE and Jones Lang LaSalle. The remainder of the
Group's properties have been valued by the Property Director.
Valuations are performed bi-annually and are performed consistently across the
Group's whole portfolio of properties. At each reporting date appropriately
qualified employees verify all significant inputs and review computational
outputs. The external valuers submit and present summary reports to the
Property Director and the Board on the outcome of each valuation round.
Valuations take into account tenure, lease terms and structural condition. The
inputs underlying the valuations include market rents or business
profitability, incentives offered to tenants, forecast growth rates, market
yields and discount rates and selling costs including stamp duty.
The development properties principally comprise land in Leeds and Manchester.
These assets have been valued taking into account the income from car parking
and the Property Director's assessment of their realisable value in their
existing state and condition based on market evidence of comparable
transactions.
Property valuations can be reconciled to the carrying value of the properties
in the balance sheet as follows:
Investment Freehold and Leasehold
Properties Properties
Total
£000 £000 £000
Externally valued by CB Richard Ellis 200,125 - 200,125
Externally valued by Jones Lang LaSalle 126,645 16,150 142,795
Investment and development properties valued by the Property Director
927 - 927
Finance lease obligations capitalised 1,159 3,303 4,462
Leasehold improvements - 3,759 3,759
At 31 December 2017 328,856 23,212 352,068
All investment properties measured at fair value in the consolidated balance
sheet are categorised as level 3 in the fair value hierarchy as defined in
IFRS13 as one or more inputs to the valuation are partly based on unobservable
market data. In arriving at their valuation for each property (as in prior
periods) both the independent valuers and the Property Director have used the
actual rent passing and have also formed an opinion as to the two key
unobservable inputs being the market rental for that property and the yield
(i.e. the discount rate) which a potential purchaser would apply in arriving
at the market value. Both these inputs are arrived at using market comparables
for the type, location and condition of the property.
(c) Fixtures, equipment and motor vehicles
Accumulated Net book
Cost depreciation value
£000 £000 £000
At 1 July 2016 4,373 2,222 2,151
Additions 586 - 586
Disposals (140) (103) (37)
Depreciation - 728 (728)
At 1 July 2017 4,819 2,847 1,972
Additions 130 - 130
Disposals (50) (41) (9)
Depreciation - 378 (378)
At 31 December 2017 4,899 3,184 1,715
7. Goodwill
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2017 2016 2017
£000 £000 £000
At start and end of period 4,024 4,024 4,024
Goodwill represents the difference between the fair value of the consideration
paid on the acquisitions of car park businesses and the fair value of the
assets and liabilities acquired as part of these business combinations.
8. Investments in joint ventures
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2017 2016 2017
£000 £000 £000
Interest in joint ventures
At start of period 27,852 25,093 25,093
Additions 6,994 750 4,250
Disposal of joint venture interest - - (1,800)
Dividends and other distributions received in the year (206) (321) (1,033)
Share of profits after tax 1,513 545 1,342
At end of period 36,153 26,067 27,852
Investments in joint ventures primary relates to the Group's interest in the
partnership capital of Merrion House LLP. The investment property held within
this partnership has been externally valued by CBRE at each reporting date.
9. Called up equity share capital
Authorised
164,879,000 (30 June 2017: 164,879,000) ordinary shares of 25p each.
Issued and fully paid Number of shares Nominal
value
000 £000
At 1 July and 31 December 2017 53,162 13,290
10. Cash flows from operating activities
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2017 2016 2017
£000 £000 £000
Profit for the period 12,448 2,599 6,725
Adjustments for:
Depreciation 464 445 905
Profit on disposal of fixed assets - (8) (23)
Profit on disposal of investment properties (1,198) (65) (303)
Finance costs 3,859 3,766 7,639
Share of joint venture profits after tax (1,513) (545) (1,342)
Movement in revaluation of investment properties (5,269) 2,850 2,085
Movement in lease incentives (1,962) 153 145
Reversal of impairment of car parking assets (800) (1,000) (1,000)
Decrease in receivables 154 3,990 4,192
Increase/(decrease) in payables 2,205 (1,417) (864)
Cash generated from operations 8,388 10,768 18,159
11. Net asset value per share
Net asset value per share is calculated as the net assets of the Group
attributable to shareholders at each balance sheet date, divided by the number
of shares in issue at that date.
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2017 2016 2017
Net asset value (£'000) 199,289 188,470 191,078
Number of ordinary shares in issue 53,161,950 53,161,950 53,161,950
Net asset value per share (pence) 375p 355p 359p
12. Related party information
There have been no material changes in the related party transactions
described in the 2017 Accounts.
INDEPENDENT REVIEW REPORT TO TOWN CENTRE SECURITIES PLC
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 31
December 2017 which comprises the Consolidated Income Statement, Consolidated
Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated
Statement of Changes in Equity, Consolidated Cash Flow Statement and related
notes.
We have read the other information contained in the half-yearly financial
report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set of
financial statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of and has been
approved by the Directors. The Directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with International Financial Reporting Standards
(IFRSs) as adopted by the European Union. The condensed set of financial
statements included in this half-yearly financial report has been prepared in
accordance with International Accounting Standard 34, ''Interim Financial
Reporting'', as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Our report has been prepared in accordance with the terms of our engagement to
assist the Company in meeting its responsibilities in respect of half-yearly
financial reporting in accordance with the Disclosure and Transparency Rules
of the United Kingdom's Financial Conduct Authority and for no other purpose.
No person is entitled to rely on this report unless such a person is a person
entitled to rely upon this report by virtue of and for the purpose of our
terms of engagement or has been expressly authorised to do so by our prior
written consent. Save as above, we do not accept responsibility for this
report to any other person or for any other purpose and we hereby expressly
disclaim any and all such liability.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, ''Review of Interim Financial Information
Performed by the Independent Auditor of the Entity'', issued by the Financial
Reporting Council for use in the United Kingdom. A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on Auditing (UK)
and consequently does not enable us to obtain assurance that we would become
aware of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 31 December 2017 is not prepared, in
all material respects, in accordance with International Accounting Standard
34, as adopted by the European Union, and the Disclosure and Transparency
Rules of the United Kingdom's Financial Conduct Authority.
BDO LLP
Chartered Accountants
United Kingdom
26 February 2018
BDO LLP is a limited liability partnership registered in England and Wales
(with registered number OC305127).
This information is provided by RNS
The company news service from the London Stock Exchange
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