TIDMCRF
RNS Number : 0171M
Ciref PLC
17 May 2010
The following announcement replaces RNS No 9989L issued at 7:00am on 17 May 2010
in order to change the headline. The full unchanged text appears below.
Ciref Plc ("Ciref", "the Group" or "the Company")
INTERIM RESULTS FOR FIVE MONTHS ENDED 28 FEBRUARY 2010
SALIENT FEATURES
· Due to a change in financial year end from 30 September to 31 August, the
interim period is for the five months ended 28 February 2010 and is compared to
the six months ended 31 March 2009.
· Successful fund raising of circa GBP80million in three separate share
placements.
· Acquisition of a 21% shareholding in Wichford PLC, a property group listed
on the London Stock Exchange.
· Acquisition of a 13% strategic shareholding, in the Cromwell Group, a
property fund listed on the Australian Stock Exchange together with a seat on
the board.
· Acquisition of the remaining 50% of Byron Place Shopping Centre, Seaham,
was completed in March 2010.
· Net loss of GBP3.82m (March 2009: GBP26.17m loss) after an aggregate loss
on non-cash items of GBP7.23m.
· Profit from core operations increased by 62% to GBP3.41m (March 2009:
GBP2.10m).
· Net loss per share of 2.90p (March 2009: 35.89p).
· Earnings per share based on adjusted profit from core operations of 2.59p
(March 2009: 2.89p).
· Strong cash management, with 10p or 21.1% of NAV per share in cash.
· Proposed interim dividend of 1.14p per share (2009: 1.74p), consistent
with the Group's revised target dividend payment ratio.
Gavin Tipper, chairman, commented:
It is pleasing to report that the Group produced a profit from core operations
of GBP3.41m and substantially reduced the net loss per share over that for the
comparable period. In still challenging but more positive economic conditions
the Group performed well. The legacy issues relating to the demise of our
former joint venture partner Modus have been addressed and with a defensive
portfolio, un-geared investments in cash generative listed companies and a
significant cash balance, the Company is well set to take advantage of the
expected economic upturn.
For further information please contact:
Ciref Plc + 27
(0)21 683 3829
Gavin Tipper - Chairman
www.ciref.je
POWERSCOURT
Matthew Fletcher/Karen Le Cannu +44 (0)207 250 1446
www.powerscourtmedia.com
SINGER CAPITAL MARKETS LIMITED
Richard Savage +44 (0)203 205
7500
www.singercm.com
About Ciref Plc
1. Ciref is a property investment and development company
incorporated on 28 September 2005 under the laws of Jersey. It invests in
commercial real estate primarily in the UK, Europe and Australia, with a focus
on retail and commercial assets. Ciref's current investments are in the UK,
Europe, the Channel Islands, Australia and the British Virgin Islands and it
will continue to source value-enhancing opportunities in the these markets.
2. As at 28 February 2010 the Group owned 94 properties with a gross
rentable area of 329,000 m2 and listed property securities to the value of
GBP63m. The property portfolio includes:
- Four major shopping centres in the UK;
- A large integrated UK town centre redevelopment project;
- Well let, low risk stable income office and commercial properties spread
across the UK and Jersey
- Five German based portfolios which consist of inter alia, shopping
centres, supermarkets, petrol stations and a medical centre; and
- A supermarket and home depot centre in Switzerland;
3. The strategy of the Group comprises four distinct yet
complementary elements: stable income investments; major development projects;
value-enhancing projects and investments in property collective investment
vehicles. The resources of the Group are intended to be allocated across the
three major geographies and within the four property investment criteria with
the aim of providing shareholders with a balanced exposure to lower risk,
income-generating assets and assets that have the potential to provide a higher
capital return.
4. Ciref has an experienced board of eight non-executive directors.
Five of the directors are connected to the Investment Manager.
5. Further information on Ciref can be found at www.ciref.je
CHAIRMAN'S STATEMENT
The period was an active one for the Group and significantly a period which saw
continuing operating profitability and a substantial reduction in the net loss
per share. Some confidence is returning to world financial markets and property
values have started to recover from their cyclical lows.
Three share placements resulted in a threefold increase in the Company's equity
base with Ciref's majority shareholder Redefine Properties Limited ("Redefine")
increasing its shareholding in Ciref to over 70%.
The capital raised was used to broaden the investment asset base sectorally and
geographically, a strategically important step given the continued volatility in
the UK and European banking sectors.
Banks in the UK have continued to reduce their exposure to the property sector
and have adopted an aggressive stance in certain of their dealings. I am
pleased to report that the investment manager has taken a strong line against
this and has negotiated and rectified all covenant breaches (or potential
breaches) without accepting any onerous variations to loan terms. Where loans
have matured or are due to mature, extensions have been agreed on acceptable
terms.
The unrealised fair value adjustments on underlying investment assets were
significantly more positive than in the comparable period and a relatively small
net loss was booked compared to the significant reported loss at 31 March 2009.
The cumulative losses should begin to reverse as property values recover.
Long term UK interest rates declined marginally during the period with the
consequence that minor losses were incurred on the interest rate swaps the Group
holds to hedge its cash flow exposure to the loans on certain of its
investments.
Ciref was conservatively managed during the period with a strong emphasis on
preserving cash and remains financially sound.
Operations
At an operating level, the Company produced profit from core operations of
GBP3.41m which is 94% higher than that in the comparable (adjusted for 5 months)
period last year.
JSE Listing and Capital Raising
As set out in the circular to shareholders dated 7 April 2010, the Company
intends to list on the JSE Limited ("JSE") and undertake a capital raising.
At the EGM held on 30 April 2010, shareholders approved the changes to the
articles of association required by the JSE; and approved resolutions for the
proposed capital raising comprising an increase in the authorised share capital
of the Company, the authority to allot Ordinary Shares for cash and the
disapplication of pre-emption rights.
At the time of release of this report discussions are still taking place with
the regulatory authorities in South Africa over the proposed JSE listing.
Should these discussions not be concluded within a reasonable time frame, a
capital raising process may be undertaken prior to the JSE listing. A further
announcement in relation to this matter will be made in due course.
Investments in The Cromwell Group and Wichford P.L.C
I am pleased to report that the Company made substantial strategic investments
into The Cromwell Group ("Cromwell"), Australia and Wichford P.L.C ("Wichford"),
the London Stock Exchange listed property investment company. These investments
further diversify Ciref's geographical and sectoral spread. Both investments
are high yielding low risk companies with a major focus on government backed
income.
Further details are set out in the Investment Manager's review.
Dividends
The Board of Directors has resolved to declare a dividend on 13 May 2010 of
1.14p per share. This equates to 80% of core earnings for the period, and is
consistent with the Group's new dividend target payment ratio.
The dividend will be offered to shareholders as a scrip dividend, with the
ability to elect to receive a cash dividend alternative. Further details on the
terms of the scrip dividend will be set out in the Circular and Form of Election
which will be sent to shareholders in due course.
Director resignation
Mr Wolf Cesman tendered his resignation to the Board in May 2010, following his
resignation from the Redefine board. I would like to thank Mr Cesman for his
valued input and on behalf of the Board I wish him well for the future.
Prospects
Expectations in the UK markets are that property values should continue to
recover. Asset prices in Europe have stopped declining and while Europe focuses
on a number of key macro issues, the Group's investments are in Germany and
Switzerland where expectations for a recovery in property values are positive.
Once a general economic recovery is underway it is anticipated that interest
rates will rise and will continue to do so for an extended period until interest
rate levels are normalised. The Group will accordingly focus on interest rate
hedging strategies.
The Group will continue to be managed conservatively with a focus on protecting
existing assets. The market is presenting a number of attractive investment
opportunities and these will be assessed in accordance with Group strategy,
subject to available financing and maintaining sound financial health.
Gavin Tipper
Chairman
INVESTMENT MANAGER'S REVIEW
The Group owns investments in commercial and retail properties in the UK,
Switzerland, Germany, the Channel Islands, and the British Virgin Islands, which
provide sustainable occupancy rates and income flows, together with
opportunities for development and significant value enhancement. The Group also
has investments in listed property companies in the UK and Australia.
Ciref has an investment management agreement with Corovest Fund Managers Limited
("CFM"), a British Virgin Islands registered and regulated Fund Manager. Under
the agreement with the Group, CFM is responsible for the investment and
management of the Group's assets.
Group Strategy
Ciref is a hybrid property fund with exposure to a broad range of properties,
listed property securities and geographical areas.
The Group's strategy is to provide investors with strong investment returns and
a balanced exposure to lower risk income-generating assets and opportunities
that will provide a higher capital return.
In implementing its strategy, Ciref contemplates available opportunities and
future undertakings of those that will yield satisfactory returns at acceptable
risk levels. In making investments it seeks to achieve a reasonable level of
diversification across types of assets and geographies.
Ciref has historically selected property investments on the basis of four
criteria:
· Stable income investments that produce a stable, predictable and low risk
income stream but where there are opportunities to enhance the value of the
investments;
· Major development projects which provide opportunities for considerable
redevelopment and where major parts of the developments can be pre-let to
businesses with strong rental covenants. These are multi year projects which
generally require high levels of funding and which may be delayed in difficult
markets to reduce risk;
· Value enhancing projects which are smaller properties that can be converted
on a relatively low risk basis to provide premium commercial space;
· Investments in property securities which are acquired when their value is
considered superior to physical property. These investments are often of a
strategic nature where the shareholding can be used to unlock value in
underlying property assets or significant influence can be exerted through Board
representation or through management.
These criteria continue to be applied however the Group will increasingly look
at other property investments where opportunities arise as markets recover.
Investments outside the above criteria will only be made where risk adjusted
returns to shareholders are satisfactory and the Group has the reserves
necessary to extract an above market return from the investments.
Ciref's investments currently fall into three major geographies and are managed
and resources are allocated on that basis. Cognisance is taken of the levels of
investment in each category, by geography, and value concentration risk is
avoided or managed, where necessary.
Portfolio Details
The Group's portfolio consisted of twenty-seven investments at 28 February 2010
in a range of fixed and listed property assets located within the UK,
Switzerland, Germany, the Channel Islands, the British Virgin Islands and
Australia.
Details are set out below.
+--------------------------+----------+---------------------+-------------+----------+
| NAME |CATEGORY | USE TYPE |VALUE(GBPM) | % |
| | | | | OWNED |
+--------------------------+----------+---------------------+-------------+----------+
| DELAMERE PLACE, CREWE | SII/MDP | RETAIL CENTRE | 22.70** | 90.78 |
+--------------------------+----------+---------------------+-------------+----------+
| BIRCHWOOD SHOPPING | SII/MDP | RETAIL CENTRE | 30.00 | 33.30 |
| CENTRE, WARRINGTON | | | | |
+--------------------------+----------+---------------------+-------------+----------+
| WEST ORCHARDS SHOPPING | SII/MDP | RETAIL CENTRE | 45.00 | 81.07 |
| CENTRE, COVENTRY | | | | |
+--------------------------+----------+---------------------+-------------+----------+
| TYS OFFICE DEVELOPMENT, | MDP | OFFICES | 0.591 | 15.00 |
| BVI | | | | |
+--------------------------+----------+---------------------+-------------+----------+
| STREATHAM RETAIL PARADE | MDP | OFFICE, RETAIL & | 6.55 | 100.00 |
| & WENTWORTH HOUSE | | RESIDENTIAL | | |
+--------------------------+----------+---------------------+-------------+----------+
| BYRON PLACE SHOPPING | SII | RETAIL CENTRE | 16.10 |50.00*** |
| CENTRE, SEAHAM | | | | |
+--------------------------+----------+---------------------+-------------+----------+
| KWIK-FIT PORTFOLIO, UK | SII | MOTOR & ANCILLARY | 13.56 | 84.23 |
+--------------------------+----------+---------------------+-------------+----------+
| NEWINGTON HOUSE LTD, | SII | OFFICE | 10.15 | 76.73 |
| SOUTHWARK | | | | |
+--------------------------+----------+---------------------+-------------+----------+
| MALTHURST PORTFOLIO | SII | MOTOR & ANCILLARY | 23.93 | 84.00 |
+--------------------------+----------+---------------------+-------------+----------+
| 98-100 MAIN STREET, | SII | RETAIL | 1.15 | 71.43 |
| BANSTEAD | | | | |
+--------------------------+----------+---------------------+-------------+----------+
| 15-17 THE SQUARE, | VEP | RESIDENTIAL | 0.61 | 60.42 |
| PETERSFIELD | | | | |
+--------------------------+----------+---------------------+-------------+----------+
| 26 THE ESPLANADE, ST | SII | OFFICES | 23.70 | 50.00 |
| HELIER, JERSEY | | | | |
+--------------------------+----------+---------------------+-------------+----------+
| CO-OP SWITZERLAND | SII | SUPERMARKET & HOME | 16.702 | 80.46 |
| | | DEPOT | | |
+--------------------------+----------+---------------------+-------------+----------+
| DRINKGERN, LIDL & AACHEN | SII | RETAIL CENTRES | 19.613 | 92.71 |
| PORTFOLIO (GERMANY) | | | | |
+--------------------------+----------+---------------------+-------------+----------+
| INKSTONE PORTFOLIO | SII | RETAIL CENTRES | 9.493 | 55.17 |
| (GERMANY) | | | | |
+--------------------------+----------+---------------------+-------------+----------+
| BREMENVORDER PORTFOLIO | SII | RETAIL CENTRES | 4.093 | 92.71 |
| (GERMANY) | | | | |
+--------------------------+----------+---------------------+-------------+----------+
| PREMIUM PORTFOLIO | SII | RETAIL CENTRES | 29.743 | 92.71* |
| (GERMANY) | | | | |
+--------------------------+----------+---------------------+-------------+----------+
| LINDENHOF PORTFOLIO | SII | RETAIL CENTRE | 6.443 | 75.08 |
| (GERMANY) | | | | |
+--------------------------+----------+---------------------+-------------+----------+
| CHURCHILL COURT, CRAWLEY | SII/VEP | OFFICES | 20.70 | 50.00* |
+--------------------------+----------+---------------------+-------------+----------+
| PEARL HOUSE, SWANSEA | VEP | RETAIL & | 1.98 | 50.00 |
| | | RESIDENTIAL | | |
+--------------------------+----------+---------------------+-------------+----------+
| 7-11 HIGH STREET, | VEP | RETAIL & OFFICES, | 2.65 | 61.36 |
| REIGATE | | RESIDENTIAL | | |
+--------------------------+----------+---------------------+-------------+----------+
| REGAL WALK, MARGATE | VEP | RETAIL CENTRE | 10.00 | 25.00 |
+--------------------------+----------+---------------------+-------------+----------+
| STAFFORD REDEVELOPMENT | VEP | DEVELOPMENT | 1.40 | 84.23* |
| | | PROPERTY | | |
+--------------------------+----------+---------------------+-------------+----------+
| STOCKPORT REDEVELOPMENT | VEP | DEVELOPMENT | 0.93 | 84.23* |
| | | PROPERTY | | |
+--------------------------+----------+---------------------+-------------+----------+
| ALPHA PROPERTY FUND | PCIV | UNLISTED PROPERTY | 0.15 | 1.04 |
| | | COMPANY | | |
+--------------------------+----------+---------------------+-------------+----------+
| WICHFORD P.L.C. | PCIV | LISTED PROPERTY | 19.494 | 20.21 |
| | | COMPANY | | |
+--------------------------+----------+---------------------+-------------+----------+
| CROMWELL GROUP | PCIV | LISTED PROPERTY | 43.135 | 12.97 |
| | | COMPANY | | |
+--------------------------+----------+---------------------+-------------+----------+
* % ownership of the group which owns 50% of the property.
** Included at directors valuation, as held for redevelopment.
*** An additional 50% interest was acquired on 25 March 2010.
1 Functional currency is USD, converted at an interim closing rate of
1.43 USD:1 GBP
2 Functional currency is Swiss Franc (CHF), converted at an
interim closing rate of 1.63CHF:1 GBP
3 Functional currency is EURO, converted at an interim closing
rate of 1.12 EURO:1 GBP
4 Market value as at 28 February 2010
5 Market value as at 28 February 2010, functional currency is
AUD, converted at an interim closing rate of 1.70 AUD:1 GBP
Key:
MDP - Major Development Project
SII - Stable Income Investment
VEP - Value Enhancing Project
PCIV - Property Collective Investment Vehicle
The properties, where applicable, were valued by Colliers CRE, Savills, DTZ,
CBRE Richard Ellis, Dr Lübke GmbH and BNP Paribas Real Estate Jersey on 28
February 2010 for financial reporting purposes.
Market Overview
The UK economy continues to show signs of recovery with a consensus forecast of
GDP growth for the 2010/2011 fiscal year of 2%. Inflation has however risen
above the Bank of England's target rate and although this is expected to be a
short term spike, it may lead to earlier than expected rises in interest rates.
In the UK, capital growth is being driven by yield compression caused by
substantial equity flows and limited supply, particularly of prime assets. UK
institutions together with overseas investors (due to a weak currency) and REITS
are once again active buyers of property. The major UK based banks are however
starting the process of disposing of their distressed assets which should create
a significant supply pipeline for some time to come. Although this may depress
prices in the short term, it is considered a healthy sign that market conditions
are normalising.
Rental growth in the UK remains close to zero with negative growth in certain
segments still evident. Despite falling yields, this patchy rental growth and
relatively high void rates will limit upside potential until addressed through
ongoing economic recovery.
In Europe two divergent economies are emerging. The northern (German, French,
Swiss) economies are recovering from recession while the southern (Greece,
Spain, Portugal) economies are suffering from severe economic conditions caused
by the austerity measures required to bring their budget deficits under control.
Ciref's investment portfolio is concentrated in the better performing economies
and is primarily focussed on in a very defensive sector, being discount retail.
Over the last 12 months there has been a significant growth in the discount
retail sales sector with food discounters increasing market share by over 10%
since 2005.
In Australia, economic recovery is well established as evidenced by the actions
of its Central Bank which has increased interest rates by 150 basis points since
the low point of the cycle.
Acquisitions and Disposals
During the period under review the Company made a number of significant
acquisitions, in particular Cromwell and Wichford. The Company also acquired
the remaining 50% in Byron Place Shopping Centre in Seaham for GBP1m in March
2010.
Wichford
The Company acquired 204,272,000 shares or 19.2% of Wichford on 22 December 2009
for a consideration of GBP20.4m. This was subsequently increased by the
purchase on the market of 10.3m shares. Subsequent to the interim period an
additional 8.7m shares were purchased to bring the holding to 21% of Wichford.
The Company exercises significant influence over Wichford through its investment
manager, Corovest Fund Managers (UK) Limited's 99% owned subsidiary Wichford
Property Managers Limited. Wichford is a strategic investment and
consideration will be given to increasing the stake over time. The low risk
nature of Wichford's government backed income stream is an important factor in
Ciref's decision to hold the investment.
Cromwell
The Company acquired a strategic stake of 12.97% in the Cromwell Group,
Australia through a subscription in cash for 104,750,000 new stabled securities.
The subscription price payable was AUD 0.70 per new Cromwell stapled security.
The total consideration for the investment was GBP40.27m.
Cromwell is an Australian Property Trust which has stapled securities consisting
of units in an Australian Real Estate Investment Trust (Cromwell Diversified
Property Trust) which are contractually bound to shares in a successful
Australian property funds management business (Cromwell Corporation Limited).
Cromwell has a track record for developing high quality, high yielding
investment products and delivering strong returns to investors.
At 30 June 2009 Cromwell held an AUD 1.2 billion portfolio of Australian
commercial property. With a 99.8% occupancy level and a heavy weighting towards
government and blue-chip tenants, this portfolio provides a stable income stream
that contributes the majority of Cromwell's operating earnings.
Update on Aviva Transaction
As reported in the 2009 Annual Financial Statements, agreement has been reached
in principle with Aviva Commercial Finance Limited ("Aviva") in relation to the
restructuring of the senior debt facilities with respect to the Birchwood
Shopping Centre in Warrington, Delamere Place Shopping Centre in Crewe; West
Orchards Shopping Centre in Coventry, Byron Place Shopping Centre in Seaham and
The Grand Arcade Shopping Centre in Wigan. Legal documentation giving effect
to the agreement will be exchanged imminently. Completion will be conditional,
inter alia, on a satisfactory Company Voluntary Arrangement being implemented on
the vehicles owning the Grand Arcade Shopping Centre in Wigan. An EGM is
expected to be called by the end of June 2010 to obtain shareholders approval
for the transaction.
Update on Streatham
On 20 April 2010 Lambeth Planning Committee passed a resolution granting
planning permission for a mixed use scheme of 3,786 m2 retail space, 187 m2
community floor space, 840 m2 assembly/leisure use, together with 243 flats
located around a ground floor internal courtyard with 91 parking spaces. This
is a significant step forward in this major South London regeneration project.
Negotiations are at an advanced stage for Ciref to sell its property ownership
into the central development vehicle in exchange for the new retail element
which will be transferred on completion. The transaction is expected to be
earnings enhancing for Ciref.
Capital Raising
The Company undertook three placements during the period under review:
· On 21 December 2009 a total of GBP38m before expenses was raised through
the placement of 84,444,444 shares at 45p per share;
· On 24 December 2009, 23,000,000 shares were placed at 52p per share; and
· On 3 February 2010 57,079,659 shares were placed at 52p per share.
The capital raised through the placings was used to, inter alia:
· Acquire the Wichford shares;
· Acquire the Cromwell shares;
· Provide capital to complete the Aviva transaction; and
· Provide additional working and investment capital.
Following the share placements, Redefine's shareholding in Ciref increased to
70.7%
Strategy
Having survived the severe recession in the UK and Europe through a conservative
and defensive management strategy, the Group is now placed for significant
growth. With the support of its major shareholders and the utilisation of new
capital to take advantage of a number of opportunities, significant capital
growth in assets owned and investment returns are expected.
FINANCIAL REVIEW
Interim period
During the interim period the Board changed the Company's dividend policy from
one linked to net asset value to one related to the distributable core earnings
in any given financial period. Due to the nature of the Group's investments the
consolidated statement of comprehensive income includes various unrealised
revaluation items and one-off impairments. Core earnings which exclude these
items reflect a more reliable measurement and form the base for dividend
distributions. The Company intends to pay out not less than 80 per cent of such
earnings in dividends. In light of the stated policy and for unambiguous
financial presentation, a reconciliation between the loss attributable to the
equity holders of Ciref of GBP3.8m prepared in conformity with IFRS for the 2010
interim period, and core earnings is presented below. The 2010 interim results
reflect core earnings of 2.59p per share.
+----------------------------------------+-----+----------+----------+-----------+
| | | Group |
+----------------------------------------+-----+---------------------------------+
| | | 28 | | 31 |
| | | February | | March |
+----------------------------------------+-----+----------+----------+-----------+
| | | 2010 | | 2009 |
+----------------------------------------+-----+----------+----------+-----------+
| | | GBP'000 | | GBP'000 |
+----------------------------------------+-----+----------+----------+-----------+
| | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Loss for the period as per condensed | | (4,162) | | (32,608) |
| statement of comprehensive income | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Non-controlling interests | | 344 | | 6,442 |
+----------------------------------------+-----+----------+----------+-----------+
| | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Attributable to Equity holders of | | (3,818) | | (26,166) |
| Ciref | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Adjusted for: | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Unrealised items | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Net fair value losses on investment | | 2,497 | | 5,605 |
| property | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Gross | | 2,583 | | 6,549 |
+----------------------------------------+-----+----------+----------+-----------+
| Non-controlling interests | | (86) | | (944) |
+----------------------------------------+-----+----------+----------+-----------+
| | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Movement in the fair value of | | (45) | | 4,340 |
| derivatives | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Gross | | (77) | | 5,058 |
+----------------------------------------+-----+----------+----------+-----------+
| Non-controlling interests | | 32 | | (718) |
+----------------------------------------+-----+----------+----------+-----------+
| | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Fair value losses on Investment | | | | |
| Property and derivatives | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| included in equity accounted losses 1 | | 4,720 | | 11,137 |
+----------------------------------------+-----+----------+----------+-----------+
| Gross | | 4,966 | | 12,635 |
+----------------------------------------+-----+----------+----------+-----------+
| Non-controlling interests | | (246) | | (1,498) |
+----------------------------------------+-----+----------+----------+-----------+
| | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Revaluation of foreign investments 2 | | (2,753) | | - |
+----------------------------------------+-----+----------+----------+-----------+
| Gross | | (2,753) | | - |
+----------------------------------------+-----+----------+----------+-----------+
| Non-controlling interests | | - | | - |
+----------------------------------------+-----+----------+----------+-----------+
| | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Realised items | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Impairment of investments and | | 2,685 | | 7,189 |
| acquisition costs 3 | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Gross | | 2,685 | | 10,071 |
+----------------------------------------+-----+----------+----------+-----------+
| Non-controlling interests | | - | | (2,882) |
+----------------------------------------+-----+----------+----------+-----------+
| | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Amortisation of intangibles | | 128 | | |
| | | | | - |
+----------------------------------------+-----+----------+----------+-----------+
| Gross | | 157 | | |
| | | | | - |
+----------------------------------------+-----+----------+----------+-----------+
| Non-controlling interests | | (29) | | |
| | | | | - |
+----------------------------------------+-----+----------+----------+-----------+
| | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Core earnings | | 3,414 | | 2,104 |
+----------------------------------------+-----+----------+----------+-----------+
| | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Core earnings per share | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Core earnings | | 3,414 | | 2,104 |
+----------------------------------------+-----+----------+----------+-----------+
| Weighted average number of ordinary | | 131,873 | | 72,908 |
| shares | | | | |
+----------------------------------------+-----+----------+----------+-----------+
| Core earnings per share | | 2.59p | | 2.89p |
+----------------------------------------+-----+----------+----------+-----------+
1 Includes GBP1,857k impairment of the equity accounted investment in Wichford
P.L.C. The investment was acquired at a market price of 10p per share, the
market price as at 28 February was 9.08p.
2 Foreign exchange gain on investment in Cromwelll
3 Acquisition costs relating to the Cromwell investment and impairment of
investment in Streatham
Statement of Directors Responsibilities
in respect of the condensed consolidated interim financial information
Each of the directors confirms that, to the best of each person's knowledge and
belief the condensed consolidated interim financial information comprising the
condensed statement of comprehensive income, the condensed statement of
financial position, the condensed statement of changes in equity, the condensed
statement of cash flows and related notes have been prepared in accordance with
IAS 34 Interim Financial Reporting as adopted by the EU.
Auditors' Independent review report to Ciref Plc
We have been engaged by the Company to review the condensed set of financial
statements in the interim financial report for the five months ended 28 February
2010 which comprises the condensed consolidated statement of comprehensive
income, the condensed consolidated statement of financial position, the
condensed consolidated statement of cash-flows, the condensed consolidated
statement of changes in equity and the related explanatory notes.
We have read the other information contained in the interim financial report and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
This report is made solely to the company in accordance with the terms of our
engagement letter. Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company for our review work, for
this report, or for the conclusions we have reached.
Directors' Responsibility
The interim financial report is the responsibility of, and has been approved by,
the Directors.
As disclosed in Note 1, the annual financial statements of the Group are
prepared in accordance with IFRSs. The Directors are responsible for ensuring
that the condensed set of financial statements included in this interim
financial report has been prepared in accordance with IAS 34 Interim Financial
Reporting as adopted by the EU.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the interim financial report based on our review.
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 Auditing
Practices Board. 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 Ireland) 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 interim report for the
five months ended 28 February 2010 is not prepared, in all material respects, in
accordance with IAS 34 as adopted by the EU.
Ciref Plc
Condensed Consolidated Statement of Comprehensive Income
For the 5 months ended 28 February 2010
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| | | 5 Months | | 6 | | Year |
| | | Ended | | Months | | Ended |
| | | 28 | | Ended | | 30 |
| | | February | | 31 | | September |
| | | 2010 | | March | | 2009 |
| | | | | 2009 | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| | | Total | | Total | | Total |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| | Notes | GBP'000 | | GBP'000 | | GBP'000 |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Revenue | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Gross rental income | | 5,690 | | 4,758 | | 10,198 |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Investment income | 7 | 99 | | 5 | | 10 |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Other income | 5 | 163 | | 500 | | 2,188 |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Total revenue | | 5,952 | | 5,263 | | 12,396 |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Expenses | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Administrative expenses | | (166) | | (209) | | (425) |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Operating expenses | | (2,672) | | (1,500) | | (3,297) |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Net operating income | | 3,114 | | 3,554 | | 8,674 |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Net fair value losses on | 10 | (2,583) | | (6,549) | | (16,831) |
| investment property | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Amortisation of intangible | | (157) | | - | | (188) |
| assets | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Losses from financial assets | 6 | (1,284) | | (5,456) | | (202) |
| and liabilities | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Equity accounted losses | 12,13 | (1,448) | | (9,487) | | (10,658) |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Impairment of loans to joint | | (762) | | (12,223) | | (23,773) |
| ventures | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Loss from operations | | (3,120) | | (30,161) | | (42,978) |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Interest income | 7 | 1,497 | | 2,258 | | 4,225 |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Interest expense | 8 | (5,283) | | (4,694) | | (9,210) |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Foreign exchange gain/(loss) | 11 | 2,759 | | - | | 37 |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Loss for the period before tax | | (4,147) | | (32,597) | | (47,926) |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Taxation | | (15) | | (11) | | (38) |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Loss for the period after tax | | (4,162) | | (32,608) | | (47,964) |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Other comprehensive (loss)/ | | | | | | |
| income | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Foreign currency translation | | (74) | | 2,572 | | 3,329 |
| on foreign operations | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Other comprehensive | | (74) | | 2,572 | | 3,329 |
| (loss)/income for the period, | | | | | | |
| net of tax | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Total comprehensive | | (4,236) | | (30,036) | | (44,635) |
| (loss)/income for the period | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Loss attributable to: | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Equity holders of the parent | | (3,818) | | (26,166) | | (39,707) |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Non-controlling interest | | (344) | | (6,442) | | (8,257) |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| | | (4,162) | | (32,608) | | (47,964) |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Total comprehensive | | | | | | |
| (loss)/income attributable to: | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Equity holders of the parent | | (3,884) | | (23,810) | | (37,378) |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Non-controlling interest | | (352) | | (6,226) | | (7,257) |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| | | (4,236) | | (30,036) | | (44,635) |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
| Basic and fully diluted loss | 16 | (2.90) | | (35.89) | | (54.20) |
| per share (pence) | | | | | | |
+--------------------------------+--------+-----------+----------+-----------+----------+-----------+
Ciref Plc
Condensed Consolidated Statement of Financial Position
As at 28 February 2010
+---------------------------------+-------+-------------+------------+------------+
| | | 28 | 31 March | 30 |
| | | February | | September |
+---------------------------------+-------+-------------+------------+------------+
| | | 2010 | 2009 | 2009 |
+---------------------------------+-------+-------------+------------+------------+
| |Notes | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------+-------+-------------+------------+------------+
| | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Assets | | | | |
+---------------------------------+-------+-------------+------------+------------+
| | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Non-current assets | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Investment property | 10 | 182,786 | 169,379 | 186,021 |
+---------------------------------+-------+-------------+------------+------------+
| Long-term receivables | | 41,789 | 48,136 | 39,210 |
+---------------------------------+-------+-------------+------------+------------+
| Investments designated at fair | 11 | 43,381 | 579 | 290 |
| value | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Intangible assets | | 7,172 | - | 7,329 |
+---------------------------------+-------+-------------+------------+------------+
| Investments in joint ventures | 12 | 2,554 | 6,154 | 5,008 |
+---------------------------------+-------+-------------+------------+------------+
| Investments in associates | 13 | 21,525 | 2,154 | - |
+---------------------------------+-------+-------------+------------+------------+
| | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Total non-current assets | | 299,207 | 226,402 | 237,858 |
+---------------------------------+-------+-------------+------------+------------+
| | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Current assets | | | | |
+---------------------------------+-------+-------------+------------+------------+
| | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Trade and other receivables | | 9,813 | 13,672 | 11,533 |
+---------------------------------+-------+-------------+------------+------------+
| Cash and cash equivalents | | 24,387 | 13,227 | 15,532 |
+---------------------------------+-------+-------------+------------+------------+
| | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Total assets | | 333,407 | 253,301 | 264,923 |
+---------------------------------+-------+-------------+------------+------------+
| | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Equity and liabilities | | | | |
+---------------------------------+-------+-------------+------------+------------+
| | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Capital and reserves | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Share capital | 14 | 2,385 | 737 | 739 |
+---------------------------------+-------+-------------+------------+------------+
| Share premium | | 179,893 | 104,031 | 104,127 |
+---------------------------------+-------+-------------+------------+------------+
| Treasury shares | | - | (61) | (61) |
+---------------------------------+-------+-------------+------------+------------+
| Retained earnings | | (74,511) | (54,896) | (69,717) |
+---------------------------------+-------+-------------+------------+------------+
| Non-distributable reserve | | 7,944 | 7,134 | 8,010 |
+---------------------------------+-------+-------------+------------+------------+
| Total equity attributable to | | 115,711 | 56,945 | 43,098 |
| equity shareholders | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Non-controlling interest | | 2,561 | 4,390 | 2,512 |
+---------------------------------+-------+-------------+------------+------------+
| Total equity | | 118,272 | 61,335 | 45,610 |
+---------------------------------+-------+-------------+------------+------------+
| | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Non-current liabilities | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Loans and borrowings | 15 | 161,444 | 178,141 | 195,523 |
+---------------------------------+-------+-------------+------------+------------+
| | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Current liabilities | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Loans and borrowings | 15 | 43,028 | 3,546 | 10,790 |
+---------------------------------+-------+-------------+------------+------------+
| Trade and other payables | | 10,663 | 10,279 | 13,000 |
+---------------------------------+-------+-------------+------------+------------+
| | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Total current liabilities | | 53,691 | 13,825 | 23,790 |
+---------------------------------+-------+-------------+------------+------------+
| Total liabilities | | 215,135 | 191,966 | 219,313 |
+---------------------------------+-------+-------------+------------+------------+
| Total equity and liabilities | | 333,407 | 253,301 | 264,923 |
+---------------------------------+-------+-------------+------------+------------+
| Net asset value per share | | 48.52 | 77.42 | 58.43 |
| (pence) | | | | |
+---------------------------------+-------+-------------+------------+------------+
| Number of ordinary shares in | | 238,483,821 | 73,556,610 | 73,760,277 |
| issue | | | | |
+---------------------------------+-------+-------------+------------+------------+
Ciref Plc
Condensed Consolidated Statement of Changes in Equity
For the 5 months ended 28 February 2010
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| | Share | Share | Treasury | Retained | Non-distributable | Total | Non-controlling | Total |
| | capital | premium | shares | earnings | reserve* | equity | interest | equity |
| | | | | | | attributable | | |
| | | | | | | to equity | | |
| | | | | | | shareholders | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Group | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Balance at 1 | 727 | 103,294 | - | (26,816) | 1,769 | 78,974 | 9,588 | 88,562 |
| October 2008 | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Total comprehensive | - | - | - | (26,166) | 2,356 | (23,810) | (6,226) | (30,036) |
| (loss)/income for | | | | | | | | |
| the period | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Shares issued | 4 | 261 | - | - | - | 265 | - | 265 |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Arising on | - | - | - | - | 3,009 | 3,009 | 694 | 3,703 |
| reclassification | | | | | | | | |
| from joint venture | | | | | | | | |
| to subsidiary | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Shares taken into | - | - | (380) | - | - | (380) | - | (380) |
| treasury | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Shares issued from | - | - | 319 | - | - | 319 | - | 319 |
| treasury | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Dividend paid to | 6 | 476 | - | (1,824) | - | (1,342) | - | (1,342) |
| equity stakeholders | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Dividend paid to | - | - | - | - | - | - | (20) | (20) |
| non-controlling | | | | | | | | |
| interests | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Dilution of | - | - | - | (90) | - | (90) | 75 | (15) |
| non-controlling | | | | | | | | |
| interest | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Increase in | - | - | - | - | - | - | 279 | 279 |
| non-controlling | | | | | | | | |
| shareholder loans | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Balance at 31 March | 737 | 104,031 | (61) | (54,896) | 7,134 | 56,945 | 4,390 | 61,335 |
| 2009 | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Total comprehensive | - | - | - | (13,541) | (27) | (13,568) | (1,031) | (14,599) |
| loss for the period | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Dividend paid to | 2 | 96 | - | (1,280) | - | (1,182) | - | (1,182) |
| equity stakeholders | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Dividends paid to | - | - | - | - | - | - | (11) | (11) |
| non-controlling | | | | | | | | |
| interests | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Arising on | - | - | - | - | 903 | 903 | (669) | 234 |
| reclassification | | | | | | | | |
| from joint venture | | | | | | | | |
| to subsidiary | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Dilution of | - | - | - | - | - | - | 15 | 15 |
| non-controlling | | | | | | | | |
| interest | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Decrease in | - | - | - | - | - | - | (182) | (182) |
| non-controlling | | | | | | | | |
| shareholders loans | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Balance at 30 | 739 | 104,127 | (61) | (69,717) | 8,010 | 43,098 | 2,512 | 45,610 |
| September 2009 | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Total comprehensive | - | - | - | (3,818) | (66) | (3,884) | (352) | (4,236) |
| loss for the period | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Shares issued | 1,644 | 77,996 | - | - | - | 79,640 | - | 79,640 |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Share issue costs | - | (2,264) | - | - | - | (2,264) | - | (2,264) |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Dividend paid to | 2 | 34 | 61 | (966) | - | (869) | - | (869) |
| equity stakeholders | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Dividends paid to | - | - | - | - | - | - | (14) | (14) |
| non-controlling | | | | | | | | |
| interests | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Dilution of | - | - | - | (10) | - | (10) | 10 | - |
| non-controlling | | | | | | | | |
| interest | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Increase in | - | - | - | - | - | - | 405 | 405 |
| non-controlling | | | | | | | | |
| shareholder loans | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
| Balance at 28 | 2,385 | 179,893 | - | (74,511) | 7,944 | 115,711 | 2,561 | 118,272 |
| February 2010 | | | | | | | | |
+---------------------+---------+---------+----------+-----------+-------------------+--------------+-----------------+----------+
* GBP4,032k relates to foreign currency translation reserve, see consolidated
financial statements as at 30 September 2009 for further details.
Ciref Plc
Condensed Consolidated Statement of Cash Flows
For the 5 months ended 28 February 2010
+----------------------------------+-------+----------+-----------+-----------+
| | | 28 | 31 | 30 |
| | | February | March | September |
| | | 2010 | 2009 | 2009 |
+----------------------------------+-------+----------+-----------+-----------+
| |Notes | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------+-------+----------+-----------+-----------+
| Cash flows from operating | | | | |
| activities | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Loss for the period before tax | | (4,147) | (32,597) | (47,926) |
+----------------------------------+-------+----------+-----------+-----------+
| Adjusted for: | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Negative goodwill | | - | - | (1,580) |
+----------------------------------+-------+----------+-----------+-----------+
| Amortisation of intangible | | 157 | | 188 |
| assets | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Net fair value losses on | 10 | 2,583 | 6,549 | 16,831 |
| investment property | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Exchange rate (gains)/losses | | (2,759) | 21 | (37) |
+----------------------------------+-------+----------+-----------+-----------+
| Losses from financial assets and | 6 | 1,284 | 5,456 | 202 |
| liabilities | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Equity accounted losses | | 1,448 | 9,487 | 10,658 |
+----------------------------------+-------+----------+-----------+-----------+
| Impairment of loans to joint | | 762 | 12,223 | 23,773 |
| ventures | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Investment income | 7 | (99) | (5) | (10) |
+----------------------------------+-------+----------+-----------+-----------+
| Finance income | 7 | (1,497) | (2,258) | (4,225) |
+----------------------------------+-------+----------+-----------+-----------+
| Finance expense | 8 | 5,283 | 4,694 | 9,210 |
+----------------------------------+-------+----------+-----------+-----------+
| | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Cash generated by operations | | 3,015 | 3,570 | 7,084 |
+----------------------------------+-------+----------+-----------+-----------+
| Changes in working capital | | (938) | (1,015) | (1,300) |
+----------------------------------+-------+----------+-----------+-----------+
| Cash generated by operations | | 2,077 | 2,555 | 5,784 |
+----------------------------------+-------+----------+-----------+-----------+
| | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Interest paid | | (5,849) | (4,231) | (8,762) |
+----------------------------------+-------+----------+-----------+-----------+
| Taxation paid | | (15) | (11) | (38) |
+----------------------------------+-------+----------+-----------+-----------+
| | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Net cash utilised in operating | | (3,787) | (1,687) | (3,016) |
| activities | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Cash flows from investing | | | | |
| activities | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Dividend income | | - | 302 | 750 |
+----------------------------------+-------+----------+-----------+-----------+
| Interest income | | 1,444 | 2,346 | 4,193 |
+----------------------------------+-------+----------+-----------+-----------+
| Purchase of investment | 10 | (112) | (16) | (7,576) |
| properties | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Investment in associates and | | (21,560) | (1,716) | (4,180) |
| joint ventures | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Acquisition of subsidiaries | | - | 213 | 734 |
+----------------------------------+-------+----------+-----------+-----------+
| Increase in loans to joint | | (3,261) | (352) | (1,274) |
| ventures & associates | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Sale of investments in | | - | - | 8,089 |
| associates and joint ventures | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Increase in loans to related | | 626 | (871) | (879) |
| parties | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Purchases of financial assets | | (40,267) | - | - |
+----------------------------------+-------+----------+-----------+-----------+
| Proceeds on sale of financial | | - | - | 532 |
| assets | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Net cash (utilised in)/generated | | (63,130) | (94) | 389 |
| by investing activities | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Cash flows from financing | | | | |
| activities | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Repayment of borrowings | | (1,056) | (1,436) | (2,503) |
+----------------------------------+-------+----------+-----------+-----------+
| Proceeds from borrowings | | - | - | 5,375 |
+----------------------------------+-------+----------+-----------+-----------+
| Dividends paid to equity | | (869) | (1,342) | (2,524) |
| shareholders | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Dividends paid to | | (14) | (20) | (31) |
| non-controlling interests | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Proceeds from issue of share | | 77,377 | - | - |
| capital | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Treasury shares sold | | - | (380) | (380) |
+----------------------------------+-------+----------+-----------+-----------+
| | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Net cash generated/(utilised) | | 75,438 | (3,178) | (63) |
| from financing activities | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Net increase/(decrease) in cash | | 8,521 | (4,959) | (2,690) |
+----------------------------------+-------+----------+-----------+-----------+
| | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Effect of exchange rate | | 334 | 246 | 282 |
| fluctuations on cash held | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Net cash at beginning of period | | 15,532 | 17,940 | 17,940 |
+----------------------------------+-------+----------+-----------+-----------+
| | | | | |
+----------------------------------+-------+----------+-----------+-----------+
| Net cash at end of period | | 24,387 | 13,227 | 15,532 |
+----------------------------------+-------+----------+-----------+-----------+
Ciref Plc
Notes to the Condensed Consolidated Financial Statements
For the 5 months ended 28 February 2010
1. Basis of preparation
The unaudited condensed consolidated interim financial statements of the Company
for the five months ended 28 February 2010 consolidate the Company and its
subsidiaries (together referred to as the "Group"). They are presented in pound
sterling which represents the functional currency of the Company and are rounded
to the nearest thousand. The report is prepared on the historical cost basis
except for the following assets and liabilities which are stated at fair value:
investment properties and financial instruments at fair value through profit or
loss.
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of policies
and reported amounts of assets and liabilities, income and expenses. Actual
results may differ materially from these estimates. In preparing these interim
financial statements, the significant judgements made by management in applying
the Company's accounting policies and the key sources of estimation uncertainty
were the same as those that applied to the Consolidated Financial Statements as
at and for the year ended 30 September 2009, except as noted in Note 2.
These condensed consolidated financial statements have been prepared on a going
concern basis as the Directors consider this the most appropriate basis. A
summary of the Directors' consideration in this regard can be found in the Going
Concern section below.
The Group changed its reporting date from 30 September to 31 August. The results
reflect the reporting period from 1 October 2009 to 28 February 2010,
comparative information has not been restated and reflects the period 1 October
2008 to 31 March 2009.
The consolidated financial statements of the Group as at and for the year ended
30 September 2009 are available upon request from the Company's Registered
Office at Channel House, Green Street, St, Helier, Jersey JE2 4UH or at
www.ciref.je.
Statement of compliance
These condensed consolidated interim financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by EU. They do not
include all of the information required for full annual financial statements,
and should be read in conjunction with the consolidated financial statements of
the Group as at and for the year ended 30 September 2009. Comparative
information has been regrouped on a basis consistent with the current period.
Both interim figures for the five months ended 28 February 2010 and the
comparative amounts for the six months ended 31 March 2009 are unaudited. The
figures for the five months to 28 February 2010 have however been reviewed by
the Auditors. The summary financial statements for the year ended 30 September
2009, as presented in the interim financial statements, represent an abbreviated
version of the Group's full accounts for that year, on which independent
auditors issued an unqualified audit report. The financial information presented
herein does not amount to statutory financial statements.
The condensed consolidated interim financial statements were approved by the
Board of Directors on 14 May 2010.
2. Accounting policies
Except as described below, the accounting policies applied by the Group in these
condensed consolidated interim financial statements are the same as those
applied by the Group in its audited financial statements as at and for the year
ended 30 September 2009.
The following new standards and amendments to standards are mandatory for the
Group for the first time for the financial period beginning 1 October 2009.
(i) Determination and presentation of operating segments
As of 1 October 2009 the Group determines and presents operating segments based
on the information that internally is provided to the Board of Directors
(considered to be the chief operating decision maker). This change in accounting
policy is due to the adoption of IFRS 8 Operating Segments. Previously operating
segments were determined and presented in accordance with IAS 14 Segment
Reporting. The new accounting policy in respect of segment operating disclosures
is presented as follows:
Comparative segment information has been re-presented in conformity with the
transitional requirements of IFRS 8. Since the change in accounting policy only
impacts presentation and disclosure aspects, there is no impact on earnings per
share.
An operating segment is a component of the Group that engages in business
activities from which it may earn revenues and incur expenses, including
revenues and expenses that relate to the transactions with any of the Group's
other components. An operating segment's operating results are reviewed
regularly by the Chief Operating Decision Maker (defined to be the Board of
Directors) to make decisions about resources to be allocated to the segment and
assess its performance, and for which discrete financial information is
available. See note 9 for further details.
(ii) Presentation of financial statements
The Group applied revised IAS 1Presentation of Financial Statements (2007),
which became effective for the years beginning on or after 1 January 2009. As a
result the Group presents in a new primary statement called the consolidated
statement of changes in equity all owner changes in equity whereas all non owner
changes in equity are presented in the new consolidated statement of
comprehensive income. This presentation has been applied in the condensed
interim financial statements as of and for the five months period ended on 28
February 2010.
Comparative information has been re-presented so that it is in conformity with
the revised standard. Since the change in accounting policy only impacts
presentation aspects, there is no impact on earnings per share.
(iii) Investments in associates
The Group applied revised IAS 28 "Investments in Associates", effective for
periods beginning on or after 1 January 2009. The amendments to IAS 28 clarified
that (i) an investment in an associate is treated as a single asset for the
purposes of impairment testing, (ii) any impairment loss is not allocated to
specific assets included within the investment, for example, goodwill and (iii)
reversals of impairment are recorded as an adjustment to the investment balance
to the extent that the recoverable amount of the associate increases.
(iv) Investment property
The Group applied revised IAS 40 "Investment Property", effective for periods
beginning on or after 1 January 2009. Following this amendment, property that is
under construction or development for future use as investment property is
within the scope of IAS 40 (previously under the scope of IAS 16 Property and
equipment). Where the fair value model is applied, such property is, therefore,
measured at fair value. However, where fair value of investment property under
redevelopment is not reliably measurable, the property is measured at cost.
3. Significant accounting judgements, estimates and assumptions
Investment property valuation
The property valuations continue to be prepared in a period of market
uncertainty. The current turmoil in the world's financial markets has resulted
in commercial and residential properties selling in much reduced quantities with
virtually little or no market activity in some areas. Many vendors are choosing
not to go to the market until conditions improve. Many purchasers are choosing
not to buy now in the expectation that market conditions will continue to
deteriorate and they will be able to purchase more favourably in the future.
Other transactions are failing due to the current difficulty in funding
acquisitions. The lack of market activity and the resulting lack of market
evidence means that it is generally not possible to value with as high a degree
of certainty as would be the case in a more stable market with a good level of
market evidence.
The best evidence of fair value is current prices in an active market for
similar lease and other contracts. In the absence of such information, the Group
determines the amount within a range of reasonable estimates. The Group
considers information from a variety of sources including:
* independent valuers;
* current prices in an active market for properties of a different nature,
condition or location, adjusted for those differences;
* recent prices from similar properties in less active markets, with adjustments
to reflect any changes in economic conditions;
* discounted cash flow projections based on reliable estimates of future cash
flows, derived from the terms of any existing leases and from external evidence
such as current market rents for similar properties in the same location and
condition, and using discount rates that reflect current market assessments.
*
Funding/going concern
The financing facilities in nine of the Group's subsidiary and joint venture
entities have either expired or are due to expire in the next twelve months. In
the case of the facilities which have expired, the Group is at an advanced stage
of negotiations with the providers (refer Aviva transaction in the investment
management review) and the Board is confident the facilities will be extended,
or that alternative facilities will be obtained, on terms which are reasonable
to the Group. Based on preliminary discussions with the relevant institutions,
the Board is confident that facilities which will expire in the next twelve
months will be successfully renegotiated or replaced.
In assessing the Group's ability to renegotiate facilities, the Board took
account of the existing cash reserves and the Group's ability to inject further
equity into investments where necessary.
If all of the facilities were not successfully renegotiated, the going concern
status of the Group or Company would not be affected. The Board does not
believe that there is a risk of not achieving a favourable outcome to the
refinancing.
4. Taxation
The Group is exempt from all forms of taxation in Jersey, including income,
capital gains and withholding taxes. In jurisdictions other than Jersey, foreign
taxes will, in some cases, be withheld at source on dividends and interest
received by the Group. Other than Germany and Switzerland capital gains derived
by the Group in such jurisdictions generally will be exempt from foreign income
or withholding taxes at source.
Income tax expense
The Group invests in UK property and therefore is liable to income tax in the UK
on the net rental profits. The current rate of UK income tax for a non-resident
company is 20%. Based on current UK law, certain joint ventures in the Group
will be subject to UK capital gains tax, or corporation tax on capital gains, on
the realisation of UK investment property gains.
The Group invests in Swiss property and therefore is liable to cantonal and
federal taxes in Switzerland. The rates depend largely on the canton in which
the property is situated and the property values. The effective rate of tax
ranges from 22% to 25%.
The Group also invests in German properties held either in corporates or
partnerships. The effective rate of tax ranges from 18.463% to 25% and the rate
of capital gains tax on any future disposal ranges from 15.825% to 20%.
Provision has been made for deferred capital gains tax in UK joint ventures,
where taxable temporary differences arise.
5. Other income
+----------------------------------------+----------+---------+-----------+
| | 5 months | 6 | Year |
| | ended | months | ended |
| | | ended | |
+----------------------------------------+----------+---------+-----------+
| | 28 | 31 | 30 |
| | February | March | September |
+----------------------------------------+----------+---------+-----------+
| | 2010 | 2009 | 2009 |
+----------------------------------------+----------+---------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------+----------+---------+-----------+
| | | | |
+----------------------------------------+----------+---------+-----------+
| Fee income | - | | 71 |
| | | - | |
+----------------------------------------+----------+---------+-----------+
| Negative goodwill | - | | 1,580 |
| | | - | |
+----------------------------------------+----------+---------+-----------+
| Other property income | 163 | 500 | 537 |
+----------------------------------------+----------+---------+-----------+
| | | | |
+----------------------------------------+----------+---------+-----------+
| | 163 | 500 | 2,188 |
+----------------------------------------+----------+---------+-----------+
6. Losses from financial assets and liabilities
+---------------------------------------------+----------+---------------------------------------------+-----------+-----------+
| | 5 months ended | 6 months | Year |
| | | ended | ended |
+---------------------------------------------+--------------------------------------------------------+-----------+-----------+
| | 28 February | 31 March | 30 |
| | | | September |
+---------------------------------------------+--------------------------------------------------------+-----------+-----------+
| | 2010 | 2009 | 2009 |
+---------------------------------------------+--------------------------------------------------------+-----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------------------+--------------------------------------------------------+-----------+-----------+
| | | | |
+--------------------------------------------------------+---------------------------------------------+-----------+-----------+
| | | | |
+--------------------------------------------------------+---------------------------------------------+-----------+-----------+
| Equity investments - realised | 72 | (9,673) | 3,719 |
+--------------------------------------------------------+---------------------------------------------+-----------+-----------+
| - unrealised | - | (398) | 546 |
+--------------------------------------------------------+---------------------------------------------+-----------+-----------+
| Derivative financial instruments | 77 | (5,058) | (4,467) |
+--------------------------------------------------------+---------------------------------------------+-----------+-----------+
| Impairment of loans and receivables | (1,433) | - | - |
+--------------------------------------------------------+---------------------------------------------+-----------+-----------+
| | | | |
+--------------------------------------------------------+---------------------------------------------+-----------+-----------+
| | | | |
| Net loss from financial assets and liabilities | | | |
+ +---------------------------------------------+-----------+-----------+
| | (1,284) | (15,129) | (202) |
+--------------------------------------------------------+---------------------------------------------+-----------+-----------+
| | | | | |
+---------------------------------------------+----------+---------------------------------------------+-----------+-----------+
7. Finance income
+-------------------------------------+----------+---------+------------+
| | 5 | 6 | Year ended |
| | months | months | |
| | ended | ended | |
+-------------------------------------+----------+---------+------------+
| | 28 | 31 | 30 |
| | February | March | September |
+-------------------------------------+----------+---------+------------+
| | 2010 | 2009 | 2009 |
+-------------------------------------+----------+---------+------------+
| | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------+----------+---------+------------+
| | | | |
+-------------------------------------+----------+---------+------------+
| Interest income: | | |
+------------------------------------------------+---------+------------+
| Interest income on bank deposits | 158 | 621 | 1,012 |
+-------------------------------------+----------+---------+------------+
| Interest received from mezzanine | 1,339 | 1,637 | 3,213 |
| financing | | | |
+-------------------------------------+----------+---------+------------+
| Total interest income | 1,497 | 2,258 | 4,225 |
+-------------------------------------+----------+---------+------------+
| | | | |
+-------------------------------------+----------+---------+------------+
| Dividend income: | | |
+------------------------------------------------+---------+------------+
| | | | |
+-------------------------------------+----------+---------+------------+
| Dividends received from equity | | | |
| securities designated at fair value | | | |
+-------------------------------------+----------+---------+------------+
| through profit or loss | 99 | 302 | 750 |
+-------------------------------------+----------+---------+------------+
| Total investment income | 99 | 302 | 750 |
+-------------------------------------+----------+---------+------------+
| | | | |
+-------------------------------------+----------+---------+------------+
| Total finance income | 1,596 | 2,560 | 4,975 |
+-------------------------------------+----------+---------+------------+
8. Interest expense
+-------------------------------------+----------+---------+------------+
| | 5 | 6 | Year ended |
| | months | months | |
| | ended | ended | |
+-------------------------------------+----------+---------+------------+
| | 28 | 31 | 30 |
| | February | March | September |
+-------------------------------------+----------+---------+------------+
| | 2010 | 2009 | 2009 |
+-------------------------------------+----------+---------+------------+
| | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------+----------+---------+------------+
| | | | |
+-------------------------------------+----------+---------+------------+
| The following table details the | | | |
| interest expense at amortised cost | | | |
| incurred by the Group during the | | | |
| period: | | | |
+-------------------------------------+----------+---------+------------+
| | | | |
+-------------------------------------+----------+---------+------------+
| Interest expense on financial | 4,136 | 3,724 | 7,374 |
| liabilities | | | |
+-------------------------------------+----------+---------+------------+
| Interest paid on mezzanine | 1,147 | 970 | 2,129 |
| financing | | | |
+-------------------------------------+----------+---------+------------+
| Interest capitalised to investment | - | - | (293) |
| property | | | |
+-------------------------------------+----------+---------+------------+
| | | | |
+-------------------------------------+----------+---------+------------+
| Total interest expense | 5,283 | 4,694 | 9,210 |
+-------------------------------------+----------+---------+------------+
9. Segment reporting
The Group's identified reportable segments are the geographical locations in
which it operates, which are generally managed by separate management teams. As
required by IFRS 8, Operating Segments, the segmental analysis below follows the
information provided to the Board of Directors.
The business activity of the Group is property investment which the Board
considers to be the only business segment as presented previously in the Annual
Report. However the Board manages the Group by looking at the UK, Continental
Europe and the investment in the Australian property fund separately and so
there are three reportable segments.
The following summary describes the operations in each of the Group's reportable
segments:
· UK - Includes all UK properties together with all associated legal
entities.
· Continental Europe - includes all non-UK properties together with all
associated legal entities
· Australia - includes investment in Australian property fund.
The relevant revenue, assets and capital expenditure are set out below:
i) Information about reportable segments
+-------------------------------------+-------------+-------------+-------------+-----------+
| | Investments | Investments | Investments | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| | UK | Europe | Australia | Total |
+-------------------------------------+-------------+-------------+-------------+-----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------+-------------+-------------+-------------+-----------+
| | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| At 28 February 2010 | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Rental income | 3,842 | 1,848 | - | 5,690 |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Net fair value losses on investment | (279) | (2,304) | - | (2,583) |
| property | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Interest income | 1,190 | - | - | 1,190 |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Interest expense | (4,292) | (937) | - | (5,229) |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Equity accounted losses | (759) | (711) | - | (1,470) |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Foreign exchange gain on | - | - | 2,753 | 2,753 |
| investments held | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Investment property | 128,542 | 56,244 | - | 187,786 |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Investments designated at fair | 361 | - | 43,020 | 43,381 |
| value | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Investment in associates | 21,525 | - | - | 21,525 |
+-------------------------------------+-------------+-------------+-------------+-----------+
| | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| At 31 March 2009 | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Rental income | 2,950 | 1,808 | - | 4,758 |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Net fair value gains/(losses) on | (2,062) | (4,487) | - | (6,549) |
| investment property | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Interest income | 1,948 | - | - | 1,948 |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Interest expense | (3,670) | (1,000) | - | (4,670) |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Equity accounted losses | (4,925) | (3,035) | - | (7,960) |
+-------------------------------------+-------------+-------------+-------------+-----------+
| | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Investment property | 116,189 | 53,190 | - | 169,379 |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Investments designated at fair | 579 | - | - | 579 |
| value | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Investment in associates | 2,154 | - | - | 2,154 |
+-------------------------------------+-------------+-------------+-------------+-----------+
| | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| At 30 September 2009 | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Rental income | 6,453 | 3,745 | - | 10,198 |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Net fair value gains/(losses) on | (12,105) | (4,726) | - | (16,831) |
| investment property | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Interest income | 3,320 | - | - | 3,320 |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Interest expense | (7,112) | (2,052) | - | (9,164) |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Equity accounted losses | (8,387) | (2,368) | - | (10,755) |
+-------------------------------------+-------------+-------------+-------------+-----------+
| | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Investment property | 126,758 | 59,263 | - | 186,021 |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Investments designated at fair | 290 | - | - | 290 |
| value | | | | |
+-------------------------------------+-------------+-------------+-------------+-----------+
| Investment in associates | | - | - | - |
+-------------------------------------+-------------+-------------+-------------+-----------+
ii) Reconciliation of reportable segment profit or loss
+----------------------------------------+----------+-----------+-----------+
| | 28 | 31 | 30 |
| | February | March | September |
+----------------------------------------+----------+-----------+-----------+
| | 2010 | 2009 | 2009 |
+----------------------------------------+----------+-----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Rental income | | | |
+----------------------------------------+----------+-----------+-----------+
| Total rental income for reported | 5,690 | 4,758 | 10,198 |
| segments | | | |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Profit or loss | | | |
+----------------------------------------+----------+-----------+-----------+
| Net fair value losses on investment | (2,583) | (6,549) | (16,831) |
| property | | | |
+----------------------------------------+----------+-----------+-----------+
| Interest income | 1,190 | 1,948 | 3,320 |
+----------------------------------------+----------+-----------+-----------+
| Interest expense | (5,229) | (4,670) | (9,164) |
+----------------------------------------+----------+-----------+-----------+
| Equity accounted losses | (1,470) | (7,960) | (10,755) |
+----------------------------------------+----------+-----------+-----------+
| Foreign exchange gain | 2,753 | - | - |
+----------------------------------------+----------+-----------+-----------+
| Total gain/(loss) per reportable | 351 | (12,473) | (23,232) |
| segments | | | |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Other profit or loss - unallocated | | | |
| amounts | | | |
+----------------------------------------+----------+-----------+-----------+
| Investment income | 99 | 302 | 750 |
+----------------------------------------+----------+-----------+-----------+
| Other income | 163 | 500 | 2,188 |
+----------------------------------------+----------+-----------+-----------+
| Administrative expenses | (166) | (209) | (425) |
+----------------------------------------+----------+-----------+-----------+
| Property operating expenses | (2,672) | (1,500) | (3,297) |
+----------------------------------------+----------+-----------+-----------+
| Amortisation of intangible assets | (157) | - | (188) |
+----------------------------------------+----------+-----------+-----------+
| Losses from financial assets and | (1,284) | (5,456) | (202) |
| liabilities | | | |
+----------------------------------------+----------+-----------+-----------+
| Equity accounted gains/(losses) | 22 | (1,824) | (643) |
+----------------------------------------+----------+-----------+-----------+
| Impairment of loans to joint ventures | (762) | (12,223) | (23,773) |
+----------------------------------------+----------+-----------+-----------+
| Interest income | 307 | 310 | 905 |
+----------------------------------------+----------+-----------+-----------+
| Interest expense | (54) | (24) | (46) |
+----------------------------------------+----------+-----------+-----------+
| Foreign exchange gain | 6 | - | 37 |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Consolidated loss before income tax | (4,147) | (32,597) | (47,926) |
+----------------------------------------+----------+-----------+-----------+
10. Investment property
The book cost of properties as at 28 February 2010 was GBP190,799,975 (March
2009: GBP163,956,283). The carrying amount of investment property (excluding
property held for development) is the fair value of the property as determined
by a registered independent appraiser having an appropriate recognised
professional qualification and recent experience in the location and category of
the property being valued. Fair values were determined having regard to recent
market transactions for similar properties in the same location as the Group's
investment property. The valuers have also considered the rental status of each
property and current market yields. The Group is also exposed to the risks
associated with investment property held within joint venture and associate
entities, which are equity accounted.
Investment property comprises a number of commercial and retail properties that
are leased to third parties. All investment properties are income generating, as
is the investment property held for development of GBP22,742,989 (2009:
GBP27,697,989) which was acquired during the year ended 30 September 2009. Its
fair value is represented by the existing rental value plus a directors
valuation of the potential development value, taking into account the net
present value of cash flows from the intended development.
Property operating expenses in the income statement relate solely to income
generating properties
+--------------+----------+---------+-----------+
| | 5 | 6 | Year |
| | months | months | ended |
| | ended | ended | |
+--------------+----------+---------+-----------+
| | 28 | 31 | 30 |
| | February | March | September |
+--------------+----------+---------+-----------+
| | 2010 | 2009 | 2009 |
+--------------+----------+---------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------+----------+---------+-----------+
| | | | |
+--------------+----------+---------+-----------+
| Opening | 186,021 | 106,636 | 106,636 |
| balance | | | |
+--------------+----------+---------+-----------+
| Properties | - | | 6,717 |
| acquired | | - | |
| during the | | | |
| period | | | |
+--------------+----------+---------+-----------+
| Capitalised | - | | 293 |
| interest | | - | |
+--------------+----------+---------+-----------+
| Capitalised | 112 | 16 | 566 |
| expenditure | | | |
+--------------+----------+---------+-----------+
| Impact | - | 60,579 | 80,600 |
| of | | | |
| acquisition | | | |
| of | | | |
| subsidiaries | | | |
+--------------+----------+---------+-----------+
| Foreign | (764) | 8,697 | 8,040 |
| exchange | | | |
| movement | | | |
| in | | | |
| foreign | | | |
| operations | | | |
+--------------+----------+---------+-----------+
| Net | (2,583) | (6,549) | (16,831) |
| fair | | | |
| value | | | |
| losses | | | |
| on | | | |
| investment | | | |
| property | | | |
+--------------+----------+---------+-----------+
| | | | |
+--------------+----------+---------+-----------+
| Closing | 182,786 | 169,379 | 186,021 |
| balance | | | |
+--------------+----------+---------+-----------+
11. Investments designated at fair value
+------------------------------------+----------+---------+-----------+
| | 5 months | 6 | Year |
| | ended | months | ended |
| | | ended | |
+------------------------------------+----------+---------+-----------+
| | 28 | 31 | 30 |
| | February | March | September |
+------------------------------------+----------+---------+-----------+
| | 2010 | 2009 | 2009 |
+------------------------------------+----------+---------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------+----------+---------+-----------+
| | | | |
+------------------------------------+----------+---------+-----------+
| Opening balance | 290 | 735 | 735 |
+------------------------------------+----------+---------+-----------+
| Acquisitions during the period | 40,267 | 173 | 337 |
+------------------------------------+----------+---------+-----------+
| Disposals during the period | - | - | (420) |
+------------------------------------+----------+---------+-----------+
| Fair value adjustments | 2,824 | (329) | (362) |
+------------------------------------+----------+---------+-----------+
| | | | |
+------------------------------------+----------+---------+-----------+
| Closing balance | 43,381 | 579 | 290 |
+------------------------------------+----------+---------+-----------+
During December 2009, the Company acquired 104,750,000 stapled securities in the
Cromwell Group, at 70 Australian cents per share. The purchase price translated
to GBP40.267million. On 28 February 2010, the securities traded at 70 Australian
cents per share on the Australian Stock Exchange. Included in the fair value
adjustment above is a foreign exchange movement of GBP2.76m on this investment.
12. Investment in joint ventures
+------------------------------------+----------+---------+-----------+
| | 5 months | 6 | Year |
| | ended | months | ended |
| | | ended | |
+------------------------------------+----------+---------+-----------+
| | 28 | 31 | 30 |
| | February | March | September |
+------------------------------------+----------+---------+-----------+
| | 2010 | 2009 | 2009 |
+------------------------------------+----------+---------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------+----------+---------+-----------+
| | | | |
+------------------------------------+----------+---------+-----------+
| Balance at 1 October | 5,008 | 13,003 | 13,003 |
+------------------------------------+----------+---------+-----------+
| Reclassification on acquisition of | - | - | (1,807) |
| minority | | | |
+------------------------------------+----------+---------+-----------+
| Increase in investment | 217 | 1,240 | 2,176 |
+------------------------------------+----------+---------+-----------+
| Impairment of investment | - | (3,548) | (4,389) |
+------------------------------------+----------+---------+-----------+
| Equity accounted loss | (2,278) | (5,073) | (4,546) |
+------------------------------------+----------+---------+-----------+
| Change in fair value due to | (393) | 532 | 571 |
| foreign currency translation | | | |
+------------------------------------+----------+---------+-----------+
| | | | |
+------------------------------------+----------+---------+-----------+
| Closing balance | 2,554 | 6,154 | 5,008 |
+------------------------------------+----------+---------+-----------+
13. Investments in associates
+------------------------------------+----------+---------+-----------+
| | 5 months | 6 | Year |
| | ended | months | ended |
| | | ended | |
+------------------------------------+----------+---------+-----------+
| | 28 | 31 | 30 |
| | February | March | September |
+------------------------------------+----------+---------+-----------+
| | 2010 | 2009 | 2009 |
+------------------------------------+----------+---------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------+----------+---------+-----------+
| | | | |
+------------------------------------+----------+---------+-----------+
| Opening balance | - | 6,859 | 6,859 |
+------------------------------------+----------+---------+-----------+
| Investment at cost including | 21,343 | - | 3,005 |
| goodwill | | | |
+------------------------------------+----------+---------+-----------+
| Disposal | - | - | (3,014) |
+------------------------------------+----------+---------+-----------+
| Change in fair value due to | (1) | 6 | 2 |
| foreign currency translation | | | |
+------------------------------------+----------+---------+-----------+
| Equity accounted profit/(loss) | 830 | (4,414) | (6,112) |
+------------------------------------+----------+---------+-----------+
| Distribution received from | (647) | (297) | (740) |
| associates | | | |
+------------------------------------+----------+---------+-----------+
| | | | |
+------------------------------------+----------+---------+-----------+
| Closing balance | 21,525 | 2,154 | - |
+------------------------------------+----------+---------+-----------+
During the interim period the Group acquired a 20.2% shareholding in Wichford
Plc at an average price of 9.95p per share. The investment was initially
recognised as an investment in an associate and was tested for impairment. An
impairment loss of GBP1,857,451 was recognised and has been included in equity
accounted profit for the period. On 28 February 2010 the market value of
Wichford Plc was 9.08p per share.
14. Capital and reserves
+-----------------------------------------+----------+---------+-----------+
| | 5 months | 6 | Year |
| | ended | months | ended |
| | | ended | |
+-----------------------------------------+----------+---------+-----------+
| | 28 | 31 | 30 |
| | February | March | September |
+-----------------------------------------+----------+---------+-----------+
| | 2010 | 2009 | 2009 |
+-----------------------------------------+----------+---------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------------+----------+---------+-----------+
| Authorised | | | |
+-----------------------------------------+----------+---------+-----------+
| 500,000,000 ordinary shares of GBP0.01 | 5,000 | 5,000 | 5,000 |
| each | | | |
+-----------------------------------------+----------+---------+-----------+
| | | | |
+-----------------------------------------+----------+---------+-----------+
| Issued | | | |
+-----------------------------------------+----------+---------+-----------+
| 238,483,821 ordinary shares of GBP0.01 | 2,385 | 736 | 739 |
| each (2009:73,556,610 of GBP0.01 each) | | | |
+-----------------------------------------+----------+---------+-----------+
| | 2,385 | 736 | 739 |
+-----------------------------------------+----------+---------+-----------+
| | | | |
+-----------------------------------------+----------+---------+-----------+
| In issue at beginning of period | 73,760 | 72,686 | 72,686 |
+-----------------------------------------+----------+---------+-----------+
| Shares issued | 164,524 | 405 | 405 |
+-----------------------------------------+----------+---------+-----------+
| Shares issued as scrip dividend | 92 | 574 | 777 |
+-----------------------------------------+----------+---------+-----------+
| Gross shares at the end of the period | 238,376 | 73,665 | 73,868 |
+-----------------------------------------+----------+---------+-----------+
| Shares taken to treasury | - | (536) | (536) |
+-----------------------------------------+----------+---------+-----------+
| Treasury shares issued | 108 | 428 | 428 |
+-----------------------------------------+----------+---------+-----------+
| Net shares in issue at the end of the | 238,484 | 73,557 | 73,760 |
| period | | | |
+-----------------------------------------+----------+---------+-----------+
On 21 December 2009 the Company issued 84,444,444 shares for a total cash
consideration of GBP38million.
On 24 December 2009 the Company issued 23,000,000 shares for a total cash
consideration of GBP11.96million.
On 3 February 2010 the Company issued 57,079,659 shares for a total cash
consideration of GBP29.68million.
Distributions
On 11 February 2009 the Company distributed the 2009 final dividend of 1.31p per
share (2009: 2.51p per share). The dividend was settled through GBP869,509 in
cash and by issuing 199,441 shares at a premium of 48.5p per share. 107,500 of
the shares were issued from treasury and 91,941 new shares were issued.
15. Loans and borrowing
This note provides information about the contractual terms of the Group's loans
and borrowings, which are measured at amortised cost.
Terms and debt repayment schedule
15.1 Secured
The terms and conditions of outstanding loans were as follows:
+-----------------------+----------+----------+----------+----------+---------+-----------+
| | | | | 5 | 6 | Year |
| | | | | months | months | ended |
| | | | | ended | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| | | | | 28 | 31 | 30 |
| | | | | February | March | September |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| | | | | 2010 | 2009 | 2009 |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| | | | | GBP'000 | GBP'000 | GBP'000 |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| | | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| | Loan | | Year | | | |
| | | | of | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Property |interest |Currency |maturity | | | |
| | rate | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| | | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Gibson Properties | 6.37%* | GBP | 2029 | 11,265 | 11,348 | 11,331 |
| Limited | | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Newington House | LIBOR + | GBP | 2010 | 6,779 | 6,936 | 6,859 |
| Limited | 1.25% | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Ciref Reigate | Base + | GBP | 2010 | 2,980 | 2,980 | 2,980 |
| Limited | 1.35% | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Kalihora Holdings | 2.87%* | GBP | 2010 | 12,101 | 12,317 | 12,037 |
| Limited | | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Ciref Streatham | LIBOR + | GBP | 2009** | 3,078 | 3,078 | 3,078 |
| Limited | 1.25% | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Ciref Malthurst | LIBOR + | GBP | 2014 | 18,000 | 18,750 | 18,250 |
| Limited | 0.95% | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Tritam Investments | 6.49%* | GBP | 2008** | 17,150 | - | 17,150 |
| Limited | | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Ciref Coventry | 6.29%* | GBP | 2027 | 56,284 | 56,476 | 56,384 |
| Limited | | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Ciref Berlin 1 | EURIBOR | EUR | 2014 | 16,910 | 17,708 | 17,439 |
| Limited | +1.2% | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Ciref German | EURIBOR | EUR | 2014 | 3,559 | 3,716 | 3,663 |
| Portfolio Limited | +1.2% | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Inkstone | 5.75%* | | 2011 | 3,742 | 3,947 | 3.867 |
| Grundstucksverwaltung | | EUR | | | | |
| Limited & Co. KG | | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Inkstone Zwei | 5.91%* | EUR | 2011 | 4,184 | 4,419 | 4,317 |
| Grundstucksverwaltung | | | | | | |
| Limited & Co. KG | | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| CEL Portfolio | 4.95%* | EUR | 2014 | 4,553 | - | 4,663 |
| Limited & Co. KG | | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| | | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Total bank loans | | | | 160,585 | 141,675 | 162,018 |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| | | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Loans secured by | 7.00%* | GBP | 2012 | 5,915 | 5,915 | 5,915 |
| cash deposits | | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Corovest Mezzanine | 7.10%* | GBP | 2011 | 32,225 | 28,000 | 32,225 |
| Capital Limited | - 10% | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| CEL Portfolio | 0%* | EUR | 2029 | 695 | - | 712 |
| Limited & Co. KG | | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| | | | | | | |
+-----------------------+----------+----------+----------+----------+---------+-----------+
| Total secured loans | | | | 199,420 | 175,590 | 200,870 |
+-----------------------+----------+----------+----------+----------+---------+-----------+
All bank loans are secured over investment property, and bear interest at the
specified interest rates.
* Fixed rates
** Please see note on funding/going concern for further details. These loans
have been classified as current liabilities until their renewal.
15.2 Unsecured
+------------------------------------------+--+----------+--+----------+-----------+
| | 5 months | 6 months | Year |
| | ended | | ended |
+------------------------------------------+-------------+-------------+-----------+
| | 28 February | 31 March | 30 |
| | | | September |
+------------------------------------------+-------------+-------------+-----------+
| | 2010 | 2009 | 2009 |
+------------------------------------------+-------------+-------------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------+-------------+-------------+-----------+
| | | | |
+------------------------------------------+-------------+-------------+-----------+
| Non-controlling shareholder loans | 627 | 657 | 633 |
+------------------------------------------+-------------+-------------+-----------+
| Derivatives (Refer to Note 17) | 4,425 | 5,440 | 4,810 |
+------------------------------------------+-------------+-------------+-----------+
| | | | |
+------------------------------------------+-------------+-------------+-----------+
| Total unsecured loans | 5,052 | 6,097 | 5,443 |
+------------------------------------------+-------------+-------------+-----------+
| | | | |
+---------------------------------------------+-------------+----------+-----------+
| The shareholder loans are unsecured, bear interest at between 5.5% | |
| and 7.5% and mature in September 2015. | |
+----------------------------------------------------------------------+-----------+
| | | | | | |
+------------------------------------------+--+----------+--+----------+-----------+
15. Loans and borrowing (continued)
15.2 Unsecured
+----------------------------------------+----------+----------+-----------+
| | 5 | 6 months | Year |
| | months | | ended |
| | ended | | |
+----------------------------------------+----------+----------+-----------+
| | 28 | 31 March | 30 |
| | February | | September |
+----------------------------------------+----------+----------+-----------+
| | 2010 | 2009 | 2009 |
+----------------------------------------+----------+----------+-----------+
| Non-current liabilities | | | |
+----------------------------------------+----------+----------+-----------+
| Secured bank loans | 156,392 | 172,044 | 190,080 |
+----------------------------------------+----------+----------+-----------+
| Non-controlling shareholder loans | 627 | 657 | 633 |
+----------------------------------------+----------+----------+-----------+
| Derivatives | 4,425 | 5,440 | 4,810 |
+----------------------------------------+----------+----------+-----------+
| Total non-current loans and borrowings | 161,444 | 178,141 | 195,523 |
+----------------------------------------+----------+----------+-----------+
| The maturity of non-current borrowings | | | |
| are as follows: | | | |
+----------------------------------------+----------+----------+-----------+
| | | | |
+----------------------------------------+----------+----------+-----------+
| Between 1 year and 5 years | 90,801 | 65,774 | 110,952 |
+----------------------------------------+----------+----------+-----------+
| More than 5 years | 70,643 | 112,367 | 84,571 |
+----------------------------------------+----------+----------+-----------+
| | | | |
+----------------------------------------+----------+----------+-----------+
| | 161,444 | 178,141 | 195,523 |
+----------------------------------------+----------+----------+-----------+
| Current liabilities | | | |
+----------------------------------------+----------+----------+-----------+
| Current portion of secured bank loans | 43,028 | 3,546 | 10,790 |
+----------------------------------------+----------+----------+-----------+
| Total current loans and borrowings | 43,028 | 3,546 | 10,790 |
+----------------------------------------+----------+----------+-----------+
| Total loans and borrowings | 204,472 | 181,687 | 206,313 |
+----------------------------------------+----------+----------+-----------+
Exposure to credit, interest rate and currency risks arise in the normal course
of the Group's business. Derivative financial instruments are used to reduce
exposure to fluctuations in interest rates (Refer note 17).
16. Basic and fully diluted earnings/(loss) per share
+----------------------------------------+----------+-----------+-----------+
| | 5 | 6 | Year |
| | months | months | ended |
| | ended | ended | |
+----------------------------------------+----------+-----------+-----------+
| | 28 | 31 | 30 |
| | February | March | September |
+----------------------------------------+----------+-----------+-----------+
| | 2010 | 2009 | 2009 |
+----------------------------------------+----------+-----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Net loss attributable to shareholders | (3,818) | (26,166) | (39,707) |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Weighted average number of ordinary | 131,873 | 72,908 | 73,261 |
| shares | | | |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Number of ordinary shares ('000) | | | |
+----------------------------------------+----------+-----------+-----------+
| Issued | 238,484 | 73,664 | 73,868 |
+----------------------------------------+----------+-----------+-----------+
| Treasury | - | (107) | (108) |
+----------------------------------------+----------+-----------+-----------+
| Net in issue | 238,484 | 73,557 | 73,760 |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| - Weighted average | 131,873 | 72,908 | 73,261 |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Loss per share (pence) | | | |
+----------------------------------------+----------+-----------+-----------+
| - Basic and diluted | (2.90) | (35.89) | (54.20) |
+----------------------------------------+----------+-----------+-----------+
The company has no instruments in issue that would dilute earnings per share,
therefore diluted earnings per share is equal to basic earnings per share.
17 Interest rate risk
The Group uses interest rate swaps to hedge exposure to the variability in cash
flows on floating rate debt, such as secured bank loans, caused by the movements
in the market rates of interest. The table below represent details regarding
the interest rate swaps within the Group:
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| | | | | | Fair Value |
+--------------------+---------+----------+----------+----------+---------------------------------+
| Company | Nominal | Fixed |Currency | Year | 28 | 31 | 30 |
| | | interest | | of | February | March | September |
| | | | |maturity | | | |
+--------------------+---------+----------+ + +----------+----------+-----------+
| | loan | rate | | | 2010 | 2009 | 2009 |
| | hedged | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| | GBP'000 | | | | GBP'000 | GBP'000 | GBP'000 |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| Subsidiaries | | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| Ciref Malthurst | 18,000 | 5.17% | GBP | 2022 | (2,241) | (3,093) | (2,550) |
| Limited | | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| Ciref Reigate | 2,000 | 4.81% | GBP | 2010 | (86) | (137) | (103) |
| Limited | | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| Newington House | 7,119 | 4.69% | GBP | 2010 | (195) | (319) | (303) |
| Limited | | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| Ciref Berlin 1 | 8,969 | 4.61% | EUR | 2014 | (916) | (934) | (906) |
| Limited | | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| Ciref Berlin 1 | 7,975 | 4.20% | EUR | 2014 | (683) | (662) | (656) |
| Limited | | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| Ciref German | 3,552 | 4.20% | EUR | 2014 | (304) | (295) | (292) |
| Portfolio Limited | | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| | 47,615 | | | | (4,425) | (5,440) | (4,810) |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| Held in joint | | | | | | | |
| ventures | | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| Ciref Jersey | 18,500 | 5.48% | GBP | 2027 | (3,486) | (4,441) | (3,338) |
| Limited | | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| Ciref Jersey | 1,800 | 4.80% | GBP | 2027 | (191) | (302) | (240) |
| Limited | | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| Premium Portfolio | 5,735 | 4.13% | EUR | 2014 | (475) | (417) | (438) |
| Limited & Co. KG | | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| Premium Portfolio | 18,810 | 4.23% | EUR | 2014 | (1,642) | (1,472) | (1,532) |
| Limited & Co. KG | | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| Churchill Court | 14,638 | 5.08% | GBP | 2018 | (1,625) | (2,250) | (2,085)) |
| Limited | | | | | | | |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
| | 59,483 | | | | (7,419) | (8,882) | (7,633) |
+--------------------+---------+----------+----------+----------+----------+----------+-----------+
18 Related party transactions
The Company acquired 204,272,000 shares in Wichford P.L.C. on 22 December 2009
from Redefine Properties Limited, the Company's major shareholder, for a
consideration of GBP20.4m. The transaction was negotiated on an arms length
basis at 10p per share.
19 Post balance sheet events
The Board of Directors has resolved to declare a dividend of 1.14p per share.
The dividend will be offered to shareholders as a scrip dividend, with the
ability to elect to receive a cash dividend alternative. Further details on the
terms of the scrip dividend will be set out in the Circular and Form of Election
which will be sent to shareholders in due course.
As set out in the circular to shareholders dated 7 April 2010, the Company
intends to list on the JSE Limited ("JSE") and undertake a capital raising. At
the EGM held on 30 April 2010, shareholders approved the changes to the articles
of association required by the JSE; and approved resolutions for the proposed
capital raising comprising an increase in the authorised share capital of the
Company, the authority to allot Ordinary Shares for cash and the disapplication
of pre-emption rights.
At the time of release of this report discussions are still taking place with
the regulatory authorities in South Africa over the proposed JSE listing. Should
these discussions not be concluded within a reasonable time frame, a capital
raising process may be undertaken prior to the JSE listing. A further
announcement in relation to this matter will be made in due course.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UBSBRRWAVARR
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