REG - Wynnstay Properties - Replacement - Half Yearly Report <Origin Href="QuoteRef">WSP.L</Origin>
RNS Number : 4619XWynnstay Properties PLC19 November 2014The following amendment has been made to the Half Yearly Report announcement released on 19 November 2014 at 12.35 under RNS No 4581X.
The register date for the dividend is 28 November 2014 and not the 27 November 2014 as released earlier.
All other details remain unchanged.
The full amended text is shown below.
Wynnstay Properties PLC
Interim Results for the six months ended 29th September 2014
Chairman's Statement
I am delighted to report the results of your company's performance for the first half of the financial year to 29th September 2014, which can be summarised as follows
2014
2013
Operating income before movement in fair value of
investment properties:
(2.9)%
562,000
579,000
Income before Taxation
(17.4)%
436,000
528,000
Earnings per share
(17.5)%
12.7p
15.4p
Net Asset value per share
4.5%
466p
446p
Interim Dividend per share
7.1%
4.5p
4.20p
Property income and operating income for the half-year were only slightly lower than in the same period last year at 808,000 (2013 - 821,000) and 562,000 (2013 - 579,000) respectively. Our pre-tax profit of 436,000 (2013 - 528,000) was reduced over the same period last year due largely to the higher financing costs under the terms of our new borrowing facility which includes the higher margins now commonly imposed by lenders in current conditions and which I have described in previous statements.
The portfolio is currently 100% let and, in a busy half year on the management side, we have attracted a new tenant to our industrial estate at Aylesford: agreed a new five year lease with the existing tenant of one of the retail units at Colchester and completed a five year lease extension until 2021 with Superdrug on our retail property in Gosport. Additionally lease extensions have been negotiated with two of the existing business tenants at St Neots and we have completed the removal of a tenant break option at one of the industrial units at Basingstoke where the lease will now run until 2020.
The pace of management activity is likely to quicken over the next eight months as a number of leases come to an end and we are already in discussions with the tenants as to their intentions. Where we know that tenants are vacating, we are preparing and negotiating dilapidations claims and engaging agents to undertake advance marketing as well as discussing with adjacent tenants whether they may want to expand or relocate. I hope that by the time I write to you in June next year, we will have either resolved, or have much greater certainty about, the future occupation of these parts of the portfolio. In doing so, our objective remains to continue to improve the lease profile of the portfolio and secure continuity and increases of income while minimising, as far as possible, the costs associated with vacant properties.
Despite the concerns that I have conveyed to you over recent years about economic conditions causing problems for our tenants, it is pleasing to note that we did not suffer any material bad debts in this period and that, at the time of writing, we have collected 99% of the rental income due for the current quarter commencing 29 September 2014.
I have already reported to you in my statement in June on our latest acquisition of five trade counter units in Ipswich. We continue to seek out further suitable acquisitions and have bid for several properties in what has become a highly competitive sector of the investment market. We are only willing to invest where we can see medium and longer-term benefit for shareholders and various opportunities remain under consideration.
When I wrote to you in June, I noted that although we did not recommend payment of an increased final dividend for last year, we would consider increasing the interim dividend in December 2014 assuming favourable conditions at the end of the half-year with a view to aligning further the overall balance between the interim and final dividends. 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 4.5p per share (2013 - 4.2p). The interim dividend will be paid on 19th December 2014 to those Shareholders on the register on 28th November 2014. However, this should not be taken as any indication that the final dividend will also be increased.
We continue to receive reports concerning unsolicited approaches to shareholders over the telephone in relation to their investments in which the caller mentions their holding in Wynnstay, and there are frequent reports in the press of scams involving such approaches. 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 Thursday 16th July 2015 at 12 noon. As always, I urge shareholders to see if they can make arrangements to be in London on that day to participate in the meeting and meet the Board and fellow shareholders. It provides an important opportunity to discuss Wynnstay's performance and future, formally and informally, as well as to socialise with other shareholders. Whilst we benefit from high levels of participation through proxy voting at our annual meetings, it is always good to see and talk to shareholders in person.
Finally, on behalf of the Board, I wish all shareholders a Happy Christmas and our good wishes for 2015.
Philip G.H. Collins
Chairman
19th November 2014
For further information please contact:
Wynnstay Properties Plc
Toby Parker, Finance Director
020 7554 8766
Charles Stanley Securities - Nominated Adviser
020 7149 6000
Dugald J. Carlean / Carl Holmes
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 29TH SEPTEMBER 2014
Six months ended
Year ended
29th September
29th September
25th March
2014
2013
2014
'000
'000
'000
Property Income
808
821
1,609
Property Costs
(31)
(44)
(79)
Administrative Costs
(214)
(197)
(443)
562
579
1,087
Movement in fair value of:
Investment Properties
170
Profit on Sale of Investment Property
52
Operating Income
562
579
1,309
Investment Income
0
1
Finance Costs
(126)
(51)
(129)
Income before Taxation
436
528
1,181
Taxation
(91)
(111)
(235)
Income after Taxation
345
417
946
The company has no other items of comprehensive income
UNAUDITED STATEMENT OF FINANCIAL POSITION AT 29TH SEPTEMBER 2014
29th September
29th September
25th March
2014
2013
2014
'000
'000
'000
Non Current Assets
Investment Properties
19,595
18,645
18,515
Investments
3
3
3
19,598
18,648
18,518
Current Assets
Accounts Receivable
226
310
267
Cash and Cash Equivalents
683
387
776
909
696
1,043
Current Liabilities
Accounts Payable
(503)
(775)
(876)
Bank Loans Payable
-
(5,996)
-
Income Taxes Payable
(330)
(490)
(235)
(833)
(7,260)
(1,111)
Net Current Assets
75
(6,564)
(68)
Total Assets Less Current Liabilities
19,672
12,084
18,450
Non-Current Liabilities
Bank Loans Payable
(7,034)
-
(5,951)
Net Assets
12,639
12,084
12,499
Capital and Reserves
Share Capital
789
789
789
Treasury Shares
(1,570)
(1,570)
(1,570)
Share Premium Account
1,135
1,135
1,135
Capital Redemption Reserve
205
205
205
Retained Earnings
12,080
11,525
11,940
12,639
12,084
12,499
UNAUDITED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 29TH SEPTEMBER 2014
SIX MONTHS ENDED 29 SEPTEMBER 2014
Share Capital
Capital Redemption Reserve
Share Premium Account
Treasury Shares
Retained Earnings
Total
000
000
000
000
000
000
Balance at 26 March 2014
789
205
1,135
(1,570)
11,940
12,499
Total comprehensive income for the period
-
-
-
-
345
345
Dividends
-
-
-
-
(206)
(206)
Balance at 29 September 2014
789
205
1,135
(1,570)
12,079
12,638
SIX MONTHS ENDED 29 SEPTEMBER 2013
Share Capital
Capital Redemption Reserve
Share Premium Account
Treasury Shares
Retained Earnings
Total
000
000
000
000
000
000
Balance at 26 March 2013
789
205
1,135
(1,570)
11,314
11,873
Total comprehensive income for the period
-
-
-
-
417
417
Dividends
-
-
-
-
(206)
(206)
Balance at 29 September 2013
789
205
1,135
(1,570)
11,524
12,083
YEAR ENDED 25 MARCH 2014
Share Capital
Capital Redemption Reserve
Share Premium Account
Treasury Shares
Retained Earnings
Total
000
000
000
000
000
000
Balance at 26 March 2013
789
205
1,135
(1,570)
11,314
11,873
Total comprehensive income for the year
-
-
-
-
946
946
Dividends
-
-
-
-
(320)
(320)
Balance at 25 March 2014
789
205
1,135
(1,570)
11,940
12,499
Six months ended
Year ended
29 September
25 March
2014
2013
2014
'000
'000
'000
Cashflow from operating activities
Income before taxation
436
528
1,181
Adjusted for:
Amortisation of deferred finance costs
3
(Increase)/Decrease in fair value of investment properties
-
-
(170)
Interest income
-
-
(1)
Interest expense
126
51
129
Profit on disposal of investment properties
-
(52)
Changes in:
Trade and other receivables
41
(119)
(93)
Trade and other payables
(373)
(46)
31
Income taxes paid
(105)
(380)
Interest paid
(105)
51
(129)
Net cash from operating activities
125
361
519
Cashflow from investing activities
Interest and other income received
-
-
1
Purchase of investment properties
(1,080)
(945)
(945)
Sale of investment properties
-
352
Net cash from investing activities
(1,080)
(945)
(592)
Cashflow from financing activities
Dividends paid
(206)
(206)
(320)
Repayments on bank loans
-
(5,998)
Drawdown on bank loans
1,083
600
6,596
Net cash used in financing activities
877
393
278
Net (decrease)/ increase in cash and cash equivalents
(78)
(191)
205
Cash and cash equivalents at beginning of period
776
571
571
Cash and cash equivalents at end of period
683
380
776
NOTES
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 2014 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 2014 and 29th September 2013 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 2014 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
Per share
Amount absorbed
Period
Date
(pence)
'000
6 months to 29th September 2014
19th Dec 2014
4.50
122
6 months to 29th September 2013
13th Dec 2013
4.20
114
Year ended 25th March 2014
16th July 2014
7.6
206
3. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing income after taxation attributable to Ordinary Shareholders of 345,000 (2013: 417,000) by the weighted average number of 2,711,617 ordinary shares in issue during the period (2013: 2,711,617). There are no instruments in issue that would have the effect of diluting earnings per share.
This information is provided by RNSThe company news service from the London Stock ExchangeENDIR UKOORSNAAAAA
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