REG - Wynnstay Properties - Interim Results (Replacement) <Origin Href="QuoteRef">WSP.L</Origin>
20/11/2015 07:01
For best results when printing this announcement, please click on the link
below:
http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20151119:nRSS2242Ga
RNS Number : 3739G
Wynnstay Properties PLC
20 November 2015
The 'Interim Results' announcement for Wynnstay Properties PLC released on 19
November at 07.00 under RNS No 2242G has been re-released to correct
formatting errors.
The announcement is unchanged and is reproduced in full below.
WYNNSTAY PROPERTIES PLC
INTERIM REPORT
SIX MONTHS ENDED 29TH SEPTEMBER 2015
WYNNSTAY PROPERTIES PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 29TH SEPTEMBER 2015
CHAIRMAN'S STATEMENT
I am delighted to report on your company's performance for the first half of
the financial year to 29th September 2015, which can be summarised as
follows:
2015 2014
Operatingincome (2.0)% £555,000 £562,000
Income beforeTaxation (7.1)% £405,000 £436,000
Earnings pershare (7.1)% 11.8p 12.7p
Net Asset value pershare 14.8% 535p 466p
Interim Dividend pershare 11.1% 5.0p 4.5p
Property income for the half-year increased over the same period last year to
£860,000 (2014 - £808,000), reflecting the contribution from the recent
acquisitions as well as rent increases from recently relet units. Operating
income at £555,000 (2014 - £562,000), and pre-tax profit of £405,000 (2013 -
£436,000) were slightly lower, compared to the same period last year, largely
due to the costs incurred on our recent acquisitions and in upgrading certain
vacant properties within the portfolio. The benefits of this expenditure
should flow through to rental income, profit and asset value later this
financial year and in the future.
The significant focus of the management and the Board over the past six months
has been on the completion of the acquisition of the Beaver Industrial Estate,
Liphook in Hampshire and on the refurbishment and marketing of the two vacant
units at Chessington, both of which I mentioned in my statement accompanying
last year's annual report.
We completed the off-market acquisition of the Liphook estate in late June
following a period of negotiation with the privately-owned vendor. It
attracted us for a number of reasons. We had been looking for some time to
acquire another complete industrial estate with opportunities for active
management and improvement similar to our estate at Aylesford and we consider
the Beaver Industrial Estate to be a very good fit for us in terms of size,
quality, tenant profile and location. The estate is very close to Liphook town
centre and adjacent to a substantial new housing development. It was
constructed in the 1980's and comprises 17 units of varying sizes. At the time
of purchase it was let to 9 tenants on 12 separate leases with 3 units being
vacant. Since June we have let one of the vacant units and are continuing to
market the two other units. The rental income at the time of purchase was just
over £172,000 p.a. and is now almost £186,000 p.a. following the recent
letting, and with an anticipated rent roll when fully let in the region of
£225,000 p.a. As reported previously the price paid was £2,600,000.
As mentioned in my statement at the end of last year the tenant of two of the
three units at our estate in Chessington vacated at the year-end in March
following the disposal of part of their business. We negotiated a
satisfactory cash settlement with them regarding dilapidations and over the
spring and summer have carried out an extensive refurbishment funded by the
settlement monies received. These works were completed, within budget, by our
contractors at the end of September. There is a shortage of smaller mixed-use
flexible space of this nature in the area following a change in planning
policy permitting the conversion of offices to residential use. This means
that the remaining commercial space potentially becomes more valuable. The two
refurbished units which now present well have been actively marketed over the
summer as the works progressed and the level of enquiries and viewings has
been encouraging. We have recently entered into negotiations with a potential
tenant for both units. I hope that we will have a positive outcome before the
year-end on which I can report to you next June.
We have also enjoyed a busy period of management activity at our estate at
Aylesford. The largest tenant has renewed the lease of its main premises,
comprising four units, for a further five years to 2020, whilst giving up a
fifth unit, which it leased a couple of years ago, that is now surplus to its
current requirements. This unit was immediatelyrelet, again for five years, to
a new tenant requiring space to operate as a sub-contractor to a larger
distribution business located nearby. The one unit at Aylesford that was
vacant at the year-end and to which I referred in June has now been relet,
again for five years, to another longstanding tenant of the estate who
required space to expand its business; and, at the same time, that tenant has
also agreed to extend the lease of its existing two units to 2020. Finally, to
complete the picture, another unit which became vacant on the departure of the
previous tenant has been relet for ten years, at a higher rent than we
previously received, to a new tenant. Thus all the units on the Aylesford
estate are fully let and we have the benefit of an increased rental income for
a longer period.
Elsewhere in the portfolio, during the first-half of the year we have
negotiated new leases, lease extensions or lease variations which should
enhance investment value on units at Basingstoke, Colchester, Norwich and St
Neots. At the time of writing, we have collected over 99% of the rental income
due for the current quarter commencing 29 September 2015.
During the second half of the year, we will concentrate on the assimilation of
the Liphook estate into the portfolio and on continuing to explore
opportunities to add value to the existing portfolio, such as by change of
use, by the acquisition of neighbouring land or properties and by further
development of existing sites. We continue to seek suitable further
acquisitions although, in contrast to recent years, we have not made any firm
offers as those properties that were available did not meet our criteria.
You will recall that last year we were able to increase both the interim and
the final dividends, with the total dividend for the year increasing by 4.2%.
The larger proportion of the increase was paid on the interim dividend with a
view to aligning further the overall balance between the interim and final
payments. In the light of the satisfactory performance reported above, I am
pleased to say that the Directors have decided to pay an increased interim
dividend of 5.00p per share (2014 - 4.5p). The interim dividend will be paid
on 18th December 2015 to those Shareholders on the register on 27th November
2015. However, this increase should not be taken as any indication that the
final dividend will also be increased.
Advances in communications and technology bring great benefits. But they also
provide opportunities for unscrupulous criminals to seek access to personal
information in order to steal an individual's financial assets. There have
been several recent cases reported in the press. One form of this fraud is
unsolicited telephone approaches to shareholders about their investments in
which the caller mentions individual holdings, such as Wynnstay Properties.
There is nothing that we can do to deter or stop these approaches and I would
urge all shareholders to be vigilant. On Wynnstay's website
(www.wynnstayproperties.co.uk), shareholders will also find a warning and a
link to other information about unsolicited approaches regarding shares on the
Financial Conduct Authority's website.
Our Annual General Meeting next year will again be held at the Royal
Automobile Club, 89 Pall Mall, London SW1 on Wednesday 13th July 2016 at 12
noon. I encourage shareholders to make plans to attend the meeting and meet
the Board and fellow shareholders. The meeting provides an important forum to
learn more about Wynnstay's activities and plans, its performance and its
future, formally and informally, as well as to socialise with other
shareholders. We benefit consistently from high levels of participation in
formal voting at our meeting through proxies lodged by shareholders who are
unable to attend, but it is always encouraging to have the opportunity to meet
and talk to shareholders in person.
Finally, on behalf of the Board, I wish all shareholders a very Happy
Christmas and good health and happiness in 2016.
19th November 2015
Philip G.H. Collins
Chairman
1. ACCOUNTING POLICIES
Wynnstay Properties PLC is a public limited company incorporated and domiciled
in England and Wales. The principal activity of the Company is property
investment, development and management. The Company's ordinary shares are
traded on the Alternative Investment Market.
Basis of Preparation
These unaudited condensed interim financial statements have been prepared in
accordance with International Financial Reporting Standard (IFRS) IAS 34
Interim Financial Reporting. They do not constitute statutory accounts within
the meaning of section 435 of the Companies Act 2006.
The unaudited condensed interim financial statements should be read in
conjunction with the financial statements of the Company as at and for the
year ended 25th March 2015 which were prepared in accordance with IFRS as
adopted by the European Union and those parts of the Companies Act 2006
applicable to companies reporting under IFRS, and have been reported on by the
Company's auditors. The financial information for the interim periods ended
29th September 2015 and 29th September 2014 has not been audited and the
auditors have not reported on or reviewed these interim financial statements.
The information for the year ended 25th March 2014 has been extracted from the
latest published audited financial statements.
Key Sources of Estimation Uncertainty
The preparation of the financial statements requires management to make
judgements, estimates and assumptions that may affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expenses.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period. The key sources
of estimation uncertainty that have a significant risk of causing material
adjustment to the carrying amounts of assets and liabilities within the next
financial year are those relating to the fair value of investment properties.
Investment Properties
All the Company's investment properties are revalued annually and stated at
fair value at 25th March. The aggregate of any resulting surpluses or deficits
are recognised through the statement of comprehensive income.
Depreciation
In accordance with IAS 40, freehold and leasehold investment properties are
included at the reporting date at fair value, and are not depreciated.
Depreciation of other plant and equipment is on a straight line basis
calculated at annual rates estimated to write off each asset over its useful
life of 5 years.
Disposal of Investments
The gains and losses on the disposal of investment properties and other
investments are included in the statement of comprehensive income in the year
of disposal.
Property Income
Property income represents the value of accrued charges under operating leases
for rental of the Company's properties. Revenue is measured at the fair value
of the consideration received. All income is derived in the United Kingdom.
Taxation
The tax expense represents the sum of the tax currently payable and deferred
tax. Current tax is the expected tax payable on the taxable income for the
year based on the tax rate enacted or substantially enacted at the reporting
date, and any adjustment to tax payable in respect of prior years. Taxable
profit differs from income before tax as reported in the income statement
because it excludes items of income or expense that are deductible in other
years, and it further excludes items that are never taxable or deductible.
Deferred taxation is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation
of taxable profits, and is accounted for using the financial position
liability method. Deferred tax liabilities are recognised for all taxable
temporary differences (including unrealised gains on revaluation of investment
properties) and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which deductible
temporary differences can be utilised. The Company provides for deferred tax
on investment properties by reference to the tax that would be due on the sale
of the investment properties.
Deferred tax is calculated at the rates that are expected to apply in the
period when the liability is settled, or the asset is realised. Deferred tax
is charged or credited in the statement of comprehensive income, including
deferred tax on the revaluation of the asset.
Investments
Quoted investments are recognised as held at fair value, and are measured at
subsequent reporting dates at fair value, which is either at the bid price, or
the latest traded price, depending on the convention of the exchange on which
the investment is quoted. Changes in fair value are recognised in profit or
loss.
Trade and other accounts receivable
Trade and other receivables are initially measured at fair value as reduced by
appropriate allowances for estimated irrecoverable amounts. All receivables do
not carry any interest and are short term in nature.
Cash and cash equivalents
Cash comprises cash at bank and on demand deposits. Cash equivalents are short
term (less than three months from inception), repayable on demand and which
are subject to an insignificant risk of change in value.
Trade and other accounts payable
Trade and other payables are initially measured at fair value. All trade and
other accounts payable are not interest bearing.
Comparative information
The information for the year ended 25 March 2015 has been extracted from the
latest published audited financial statements.
Pensions
Pension contribution towards employees' pension plans are charged to the
statement of comprehensive income as incurred. The pension scheme is a defined
contribution scheme.
2.DIVIDENDS Payment Pershare Amountabsorbed
Period Date (pence) £'000
6 months to 29th September2015 18th Dec2015 5.00 137
6 months to 29th September2014 19th Dec2014 4.50 122
Year ended 25th March2015 17th July2015 7.8 211
3. EARNINGS PERSHARE
Basic earnings per share are calculated by dividing income after taxation
attributable to Ordinary Shareholders of £321,000 (2014: £345,000) by the
weighted average number of 2,711,617 ordinary shares in issue during the
period (2014: 2,711,617). There are no instruments in issue that would have
the effect of diluting earnings per share.
4. UNAUDITED STATEMENT OF FINANCIAL POSITION
Six months ended Year ended
29thSeptember2015£'000 29thSeptember2014£'000 25thMarch2015£'000
PropertyIncome 860 808 1,663
PropertyCosts (84) (31) (87)
AdministrativeCosts (221) (214) (414)
555 562 1,162
Movement in fair value of: InvestmentProperties 1,530
Profit on Sale of InvestmentProperty
OperatingIncome 555 562 2,692
Investment Income 2 2
FinanceCosts (152) (126) (265)
Income beforeTaxation 405 436 2,429
Taxation (84) (91) (210)
Income afterTaxation 321 345 2,219
The company has no other items of comprehensiveincome
5. UNAUDITED STATEMENT OF COMPREHENSIVE INCOME
29th September2015 29th September2014 25th March2015
£'000 £'000 £'000
Non CurrentAssetsInvestmentProperties 24,495 19,595 21,780
Investments 3 3 3
24,498 19,598 21,783
CurrentAssetsAccounts Receivable 273 226 489
Cash and Cash Equivalents 920 683 1,050
1,192 909 1,539
CurrentLiabilitiesAccounts Payable (902) (503)
Income Taxes Payable (309) (330) (223)
(1,212) (833) (1,309)
Net CurrentLiabilities (19) 75 230
Total Assets Less CurrentLiabilities 24,479 19,672 22,013
Non-CurrentLiabilitiesBank Loans Payable (9,967) (7,034) (7,621)
NetAssets 14,511 12,639 14,392
Capital andReserves
ShareCapital 789 789 789
TreasuryShares (1,570) (1,570) (1,570)
Share PremiumAccount 1,135 1,135 1,135
Capital Redemption Reserve 205 205 205
Retained Earnings 13,952 12,080 13,833
14,511 12,639 14,392
6. UNAUDITED STATEMENT OF CASHFLOW
Six months ended Year ended
29th September2015£'000 29th September2014£'000 25March2015£'000
Cashflow from operatingactivities
Income before taxation Adjusted for:Amortisation of deferred finance costs (Increase)/Decrease in fair value of investmentproperties 405 - 436 - 2,429 (1,530)
Interest income (2) - (2)
Interest expenseProfit on disposal of investmentproperties Changes in:Trade and otherreceivables 147- 191 126- 41 267- (222)
Trade and otherpayables (146) (373) 210
Income taxes paid - (235)
Interest paid (150) (105) (253)
Net cash from operatingactivities 445 125 664
Cashflow from investingactivitiesInterest and other incomereceived 2 - -
Purchase of investmentproperties (2,705) (1,080) 2
Sale of investmentproperties - - (1,735)
Net cash from investingactivities (2,703) (1,080) (1,733)
Cashflow from financingactivities Dividendspaid (212) (206) (328)
Repayments on bank loans Drawdown on bank loans 2,340 1,083 1,670
Net cash used in financingactivities 2,129 877 1,342
Net (decrease)/ increase in cash and cashequivalents (128) (78) 273
Cash and cash equivalents at beginning of period 1,049 776 776
Cash and cash equivalents at end of period 920 683 1,049
7. UNAUDITED STATEMENT OF CHANGES IN EQUITY
SIX MONTHS ENDED 29 SEPTEMBER2015
Share Capital Capital RedemptionReserve Share Premium Account Treasury Shares Retained Earnings Total
£000 £000 £000 £000 £000 £000
Balance at 26 March2015 789 205 1,135 (1,570) 13,833 14,392
Total comprehensive income for theperiod - - - - 321 321
Dividends - - - - (212) (212)
Balance at 29 September2015 789 205 1,135 (1,570) 13,952 14,511
SIX MONTHS ENDED 29 SEPTEMBER2014
Share Capital Capital RedemptionReserve Share Premium Account Treasury Shares Retained Earnings Total
£000 £000 £000 £000 £000 £000
Balance at 26 March2014 789 205 1,135 (1,570) 11,940 12,499
Total comprehensive income for theperiod - - - - 345 345
Dividends - - - - (206) (206)
Balance at 29 September2014 789 205 1F,135 (1,570) 11,524 12,639
YEAR ENDED 25 MARCH2015
Share Capital Capital RedemptionReserve Share Premium Account Treasury Shares Retained Earnings Total
£000 £000 £000 £000 £000 £000
Balance at 26 March2014 789 205 1,135 (1,570) 11,940 12,499
Total comprehensive income for theyear - - - - 2,219 2,219
Dividends - note2 - - - - (328) (328)
Balance at 25 March2015 789 205 1,135 (1,570) 13,833 14,392
Wynnstay Properties PLC
Hamilton House Mabledon Place London WC1H 9BB
Tel: +44 (0)20 7554 8766
E-mail: info@wynnstayproperties.co.uk
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Wynnstay Properties
See all newsREG - Wynnstay Properties - Director Dealing
AnnouncementREG - Wynnstay Properties - Acquisition
AnnouncementREG - Wynnstay Properties - Interim Results for six months ended 29 Sept 2023
AnnouncementREG - Wynnstay Properties - Director Dealing
AnnouncementREG - Wynnstay Properties - Board Changes
Announcement