TIDMHCFT
RNS Number : 2551X
Highcroft Investments PLC
09 August 2018
9 August 2018
Highcroft Investments PLC
Interim Report for the six months ended 30 June 2018
Key Highlights:
*Gross rental income increased 9.1% to GBP2,442,000 (2017
GBP2,238,000)
*Net rental income increased 12% to GBP2,365,000 (2017
GBP2,119,000)
*No voids in our property portfolio (2017 none)
*Total earnings per share increased 7.1% to 55.8p (2017
52.1p)
*Net divestment from property GBP2,473,000 (2017 net investment
GBP7,801,000)
*Property valuation GBP75,805,000 (2017 GBP74,819,000) an
increase of 1.6% on a like-for-like basis
*Investment in property after the period end GBP4,925,000 net of
costs
*Net assets per share increased 2.2% to 1187p (June 2017 1097p,
December 2017 1161p)
*Net gearing GBP14,343,000/23% (June 2017 GBP18,627,000/33%,
December 2017 GBP17,496,000/29%)
*Interim property income distribution up 15.4% to 18.75p (2017
16.25p)
Dear Shareholder
I am pleased to report continued good trading results for the 6
months ended 30 June 2018. The board is happy with the progress of
its ongoing strategy of developing a high-quality income producing
property portfolio, based on carefully sourced quality tenants,
producing stable, secure income. This strategy has resulted in
property income growth of 9.1%, an earnings per share increase of
7.1% and an increase in net assets per share of 2.2%.
During the period we pursued our stated goals of reducing our
exposure to the High Street and disposing of our last residential
assets. The first half of 2018 has remained challenging as the
continued uncertainties surrounding Brexit affect both the
occupational and investor markets. Our portfolio has been affected
by only one CVA, where the tenant remains in occupation and the
rent on that property has been reduced by GBP20,000pa (0.4% of
gross rental income) whilst the lease term is unchanged.
Our ongoing confidence in the group's future is reflected in an
interim property income distribution of 18.75p per share - an
increase of 15.4% on 2017. This continues our long-standing policy
and record of raising the dividend by more than inflation.
Property portfolio
We sold two assets in the period, our retail and residential
investment in Cirencester and our block of flats in Marylebone,
which was in line with our stated strategy of selling our remaining
residential properties and reducing our exposure to the High
Street. The Cirencester property was sold for an amount of
GBP100,000 in excess of the December 2017 valuation and the
Marylebone property was sold to the tenants for an amount of
GBP98,000 below the December 2017 valuation, but GBP325,000 in
excess of their proposed enfranchisement value. After the period
end we reinvested the total proceeds of GBP2,475,000, together with
the proceeds of additional disposals of our equity investments,
into the freehold of a health and fitness club in Birmingham for a
net initial yield of 7.0%.
The external independent valuation of the property portfolio at
30 June 2018 showed a gain of 1.6% on a like-for-like basis for the
first half of the year. This gain exceeded the IPD performance of
the property market in general, which showed an increase of 1.4%
for the period.
Gross rental income has risen by 9.1%. This increase reflects
the benefit of a full period's income from the Nottingham and St
Austell properties bought in March and June 2017, offset by the
reduction in income from the disposal of our Cirencester asset and
the fact that 2017 included a backdated rent review and a lease
surrender premium. As was the case for 2017, we have no voids as at
30 June 2018. Property expenses for the six month period decreased
to GBP77,000 (2017 GBP119,000) due to the previous period including
significant professional fees associated with opposing the
leaseholders unsuccessful leasehold enfranchisement attempt at our
Marylebone property. This property was sold in the first half of
this year.
We reduced our equity portfolio by GBP0.5m in January 2018 in
line with our stated long-term strategy and we reduced it by a
further GBP0.8m in July 2018. These proceeds have been reinvested
into our property portfolio which we believe should generate a
higher risk-adjusted return for shareholders.
Financial
Earnings per share increased to 55.8p (2017 52.1p) due primarily
to the combination of increased net rental income of GBP246,000,
and an increase in unrealised property valuation gains of
GBP144,000.
At 30 June 2018 the cash position was GBP5,057,000 (2017
GBP657,000) while our medium-term loans totalled GBP19,400,000
(2017 GBP19,400,000) resulting in a net gearing level of 23% (2017
33%). Immediately after the period end this surplus cash has been
invested into our new property asset in Birmingham which was
purchased for GBP4,925,000 net of costs. The medium-term loans are
at fixed rates with a weighted average of 3.64%.
Dividend
I am pleased to report an interim property income distribution
of 18.75p (2017 16.25p) per share, payable on 12 October 2018 to
shareholders on the register at 14 September 2018 (with an
ex-dividend date of 13 September 2018).
Outlook
We will continue with our stated strategy of investing in larger
properties to drive investor returns and are pleased with the
Birmingham acquisition that we completed in July.
Whilst the ongoing retail environment is likely to remain
challenging we believe that our historic asset selection criteria
have helped to ensure that our current portfolio and tenant line-up
create a strong base from which to continue to generate shareholder
value.
We expect the full year results to continue to reflect the
benefits of our strategy.
Charles Butler
Chairman
9 August 2018
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
For further information, contact:
Highcroft Investments PLC
Charles Butler/Roberta Miles +44 (0)1865 840023
Panmure Gordon (UK) Limited
Fabien Holler /Andrew Potts +44 (0)20 7886 2500
Condensed consolidated interim statement of comprehensive income
(unaudited)
for the six months ended 30 June 2018
Unaudited Unaudited Audited
First half 2018 First half 2017 Full year 2017
---- ---------------------------- ---------------------------- ----------------------------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Continuing operations
---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Gross rental income 2,442 - 2,442 2,238 - 2,238 4,765 - 4,765
---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Property operating
expenses (77) - (77) (119) - (119) (259) - (259)
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net rental income 2,365 - 2,365 2,119 - 2,119 4,506 - 4,506
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net (loss)/gain
on disposal of
investment property (42) - (42) 1 - 1 1 - 1
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Valuation gains
on investment
property - 1,865 1,865 - 1,337 1,337 - 3,365 3,365
---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Valuation losses
on investment
property - (700) (700) - (316) (316) - (77) (77)
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net valuation gains
on investment
property - 1,165 1,165 - 1,021 1,021 - 3,288 3,288
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Dividend income 27 - 27 38 - 38 92 - 92
---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Gains on investments 6 85 91 19 137 156 - 230 230
---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Losses on investments (12) (46) (58) (1) (68) (69) - (91) (91)
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net investment
income 21 39 60 56 69 125 92 139 231
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Administrative
expenses (368) - (368) (339) - (339) (663) - (663)
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Operating profit
before net financing
costs 1,976 1,204 3,180 1,837 1,090 2,927 3,936 3,427 7,363
---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Finance income 3 - 3 1 - 1 2 - 2
---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Finance expenses (350) - (350) (295) - (295) (651) - (651)
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net finance costs (347) - (347) (294) - (294) (649) - (649)
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Profit before tax 1,629 1,204 2,833 1,543 1,090 2,633 3,287 3,427 6,714
---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Income tax credit 4 52 - 52 64 (4) 60 61 60 121
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total profit and
comprehensive income
for the financial
period 1,681 1,204 2,885 1,607 1,086 2,693 3,348 3,487 6,835
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Basic and diluted
earnings
per share 6 55.8p 52.1p 132.3p
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Condensed consolidated interim statement of financial position
(unaudited)
as at 30 June 2018
Unaudited Unaudited Audited
30 June 30 June 31 December
2018 2017 2017
Note GBP'000 GBP'000 GBP'000
-------------------------------------- ---- --------- --------- ------------
Assets
---- --------- --------- ------------
Investment property 7 75,805 74,819 76,315
---- --------- --------- ------------
Equity investments 8 1,651 2,079 2,131
-------------------------------------- ---- --------- --------- ------------
Total non-current assets 77,456 76,898 78,466
-------------------------------------- ---- --------- --------- ------------
Current assets
---- --------- --------- ------------
Investment property - - 798
---- --------- --------- ------------
Trade and other receivables 441 831 537
---- --------- --------- ------------
Cash at bank and in hand 5,057 657 1,904
-------------------------------------- ---- --------- --------- ------------
Total current assets 5,498 1,488 3,239
-------------------------------------- ---- --------- --------- ------------
Total assets 82,954 78,386 81,685
-------------------------------------- ---- --------- --------- ------------
Liabilities
---- --------- --------- ------------
Current liabilities
---- --------- --------- ------------
Trade and other payables 2,055 1,996 2,054
-------------------------------------- ---- --------- --------- ------------
Total current liabilities 2,055 1,996 2,054
-------------------------------------- ---- --------- --------- ------------
Non-current liabilities
---- --------- --------- ------------
Interest-bearing loans and borrowings 9 19,400 19,400 19,400
---- --------- --------- ------------
Deferred tax liabilities 187 315 254
-------------------------------------- ---- --------- --------- ------------
Total non-current liabilities 19,587 19,715 19,654
-------------------------------------- ---- --------- --------- ------------
Total liabilities 21,642 21,711 21,708
-------------------------------------- ---- --------- --------- ------------
Net assets 61,312 56,675 59,977
-------------------------------------- ---- --------- --------- ------------
Equity
---- --------- --------- ------------
Issued share capital 1,292 1,292 1,292
---- --------- --------- ------------
Revaluation reserve - property 19,690 15,855 18,015
---- --------- --------- ------------
Revaluation reserve - other 209 423 538
---- --------- --------- ------------
Capital redemption reserve 95 95 95
---- --------- --------- ------------
Realised capital reserve 26,188 26,611 26,611
---- --------- --------- ------------
Retained earnings 13,838 12,399 13,426
-------------------------------------- ---- --------- --------- ------------
Total equity 61,312 56,675 59,977
-------------------------------------- ---- --------- --------- ------------
Condensed consolidated interim statement of changes in
equity
for the six months ended 30 June 2018
First half 2018 - Unaudited
Revaluation
reserves
-------- ----------- -------- --------- --------
Capital Realised Retained
Equity Property Other redemption capital earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------- -------- -------- -------- ----------- -------- --------- --------
At 1 January 2018 1,292 18,015 538 95 26,611 13,426 59,977
---------------------------------- -------- -------- -------- ----------- -------- --------- --------
Transactions with owners:
Dividends - - - - - (1,550) (1,550)
-------- -------- -------- ----------- -------- --------- --------
Reserve transfers:
-------- -------- -------- ----------- -------- --------- --------
Non-distributable items
recognised in income
statement:
-------- -------- -------- ----------- -------- --------- --------
Revaluation gains - 1,165 39 - - (1,204) -
-------- -------- -------- ----------- -------- --------- --------
Tax on revaluation gains/(losses) - - - - - - -
-------- -------- -------- ----------- -------- --------- --------
Realised losses - - - - (46) 46 -
-------- -------- -------- ----------- -------- --------- --------
Surplus attributable
to assets sold - 745 (368) - (377) - -
-------- -------- -------- ----------- -------- --------- --------
Excess of cost over
revalued amount taken
to retained earnings - (235) - - - 235 -
---------------------------------- -------- -------- -------- ----------- -------- --------- --------
- 1,675 (329) - (423) (923) -
---------------------------------- -------- -------- -------- ----------- -------- --------- --------
Profit and total comprehensive
income for the period - - - - - 2,885 2,885
---------------------------------- -------- -------- -------- ----------- -------- --------- --------
At 30 June 2018 1,292 19,690 209 95 26,188 13,838 61,312
---------------------------------- -------- -------- -------- ----------- -------- --------- --------
First half 2017 - Unaudited
Revaluation
reserves
-------- ----------- -------- --------- --------
Capital Realised Retained
Equity Property Other redemption capital earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- -------- -------- -------- ----------- -------- --------- --------
At 1 January 2017 1,292 14,276 659 95 27,020 11,983 55,325
------------------------------- -------- -------- -------- ----------- -------- --------- --------
Transactions with owners:
Dividends - - - - - (1,343) (1,343)
-------- -------- -------- ----------- -------- --------- --------
Reserve transfers:
-------- -------- -------- ----------- -------- --------- --------
Non-distributable items
recognised in income
statement:
-------- -------- -------- ----------- -------- --------- --------
Revaluation gains - 1,021 69 - - (1,090) -
-------- -------- -------- ----------- -------- --------- --------
Tax on revaluation gains - - - - - - -
-------- -------- -------- ----------- -------- --------- --------
Realised gains - - - - 16 (16) -
-------- -------- -------- ----------- -------- --------- --------
Surplus attributable
to assets sold - 734 (309) - (425) - -
-------- -------- -------- ----------- -------- --------- --------
Excess of cost over
revalued amount taken
to retained earnings - (176) 4 - - 172 -
------------------------------- -------- -------- -------- ----------- -------- --------- --------
- 1,579 (236) - (409) (934) -
------------------------------- -------- -------- -------- ----------- -------- --------- --------
Profit and total comprehensive
income for the period - - - - - 2,693 2,693
------------------------------- -------- -------- -------- ----------- -------- --------- --------
At 30 June 2017 1,292 15,855 423 95 26,611 12,399 56,675
------------------------------- -------- -------- -------- ----------- -------- --------- --------
Condensed consolidated interim statement of changes in equity
(continued)
for the six months ended 30 June 2018
Full year 2017 - Audited
Revaluation
reserves
-------- ----------- -------- --------- --------
Capital Realised Retained
Equity Property Other redemption capital earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- -------- ---------- --------- ----------- -------- --------- --------
At 1 January 2017 1,292 14,276 659 95 27,020 11,983 55,325
------------------------------- -------- ---------- --------- ----------- -------- --------- --------
Transactions with owners:
Dividends - - - - - (2,183) (2,183)
-------- ---------- --------- ----------- -------- --------- --------
Reserve transfers:
-------- ---------- --------- ----------- -------- --------- --------
Non-distributable items
recognised in income
statement:
-------- ---------- --------- ----------- -------- --------- --------
Revaluation gains - 3,288 124 - - (3,412) -
-------- ---------- --------- ----------- -------- --------- --------
Tax on revaluation gains - - 64 - - (64) -
-------- ---------- --------- ----------- -------- --------- --------
Realised gains - - - - 16 (16) -
-------- ---------- --------- ----------- -------- --------- --------
Surplus attributable
to assets sold - 734 (309) - (425) - -
-------- ---------- --------- ----------- -------- --------- --------
Excess of cost over
revalued amount taken
to retained earnings - (283) - - - 283 -
------------------------------- -------- ---------- --------- ----------- -------- --------- --------
- 3,739 (121) - (409) (3,209) -
------------------------------- -------- ---------- --------- ----------- -------- --------- --------
Profit and total comprehensive
income for the period - - - - - 6835 6,835
------------------------------- -------- ---------- --------- ----------- -------- --------- --------
At 31 December 2017 1,292 18,015 538 95 26,611 13,426 59,977
------------------------------- -------- ---------- --------- ----------- -------- --------- --------
Condensed consolidated interim statement of cashflows
for the six months ended 30 June 2018
Unaudited Unaudited
First First Audited
half half Full year
2018 2017 2017
GBP'000 GBP'000 GBP'000
---------------------------------------------------------- --------- --------- ----------
Operating activities
--------- --------- ----------
Profit before tax for the period 2,833 2,633 6,714
--------- --------- ----------
Adjustments for:
--------- --------- ----------
Net valuation gains on investment property (1,165) (1,021) (3,288)
--------- --------- ----------
Net loss/(gain) on disposal of investment property 42 (1) (1)
--------- --------- ----------
Net gains on investments (33) (87) (139)
--------- --------- ----------
Finance income (3) (1) (2)
--------- --------- ----------
Finance expense 350 295 651
--------- --------- ----------
Operating cash flow before changes in working
capital and provisions 2,024 1,818 3,935
--------- --------- ----------
Decrease/(increase) in trade and other receivables 96 (200) 94
--------- --------- ----------
(Decrease)/increase in trade and other payables (14) 129 196
---------------------------------------------------------- --------- --------- ----------
Cash generated from operations 2,106 1,747 4,225
--------- --------- ----------
Finance income 3 1 2
--------- --------- ----------
Finance expense (350) (295) (651)
--------- --------- ----------
Income tax paid - - (8)
---------------------------------------------------------- --------- --------- ----------
Net cash flows from operating activities 1,759 1,453 3,568
---------------------------------------------------------- --------- --------- ----------
Investing activities
--------- --------- ----------
Purchase of fixed assets - investment property - (10,058) (10,086)
--------- --------- ----------
Sale of fixed assets - investment property 2,431 2,258 2,259
--------- --------- ----------
- equity investments 513 477 477
---------------------------------------------------------- --------- --------- ----------
Net cash flows from investing activities 2,944 (7,323) (7,350)
---------------------------------------------------------- --------- --------- ----------
Financing activities
--------- --------- ----------
Dividends paid (1,550) (1,343) (2,183)
--------- --------- ----------
New bank borrowings - 4,500 4,500
--------- --------- ----------
Net cash flows from financing activities (1,550) 3,157 2,317
---------------------------------------------------------- --------- --------- ----------
Net (decrease)/increase in cash and cash equivalents 3,153 (2,712) (1,465)
--------- --------- ----------
Cash and cash equivalents at 1 January 1,904 3,369 3,369
---------------------------------------------------------- --------- --------- ----------
Cash and cash equivalents at period end 5,057 657 1,904
---------------------------------------------------------- --------- --------- ----------
Notes (Unaudited)
for the six months ended 30 June 2018
1. Nature of operations and general information
Highcroft Investments PLC ('Highcroft') and its subsidiaries'
(together 'the group') principal activity is investment in
property. It is incorporated and domiciled in Great Britain. The
address of Highcroft's registered office, which is also its
principal place of business, is Thomas House, Langford Locks,
Kidlington, OX5 1HR. Highcroft's condensed consolidated interim
financial statements are presented in Pounds Sterling (GBP), which
is also the functional currency of the group. These condensed
consolidated interim financial statements have been approved for
issue by the directors on 9 August 2018. The financial information
for the period ended 30 June 2018 set out in this interim report
does not constitute statutory accounts as defined in Section 404 of
the Companies Act 2006. The group's statutory financial statements
for the year ended 31 December 2017 have been filed with the
Registrar of Companies. The auditor's report on those financial
statements was unqualified and did not contain statements under
Section 498(2) or Section 498(5) of the Companies Act 2006.
2. Basis of preparation
These condensed consolidated interim financial statements are
for the six months ended 30 June 2018. They have been prepared in
accordance with IAS 34, Interim Financial Reporting. 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 for the year ended 31 December
2017.
These condensed consolidated interim financial statements have
been prepared under the historical cost convention, as modified by
the revaluation of investment properties and the measurement of
equity investments at fair value. These condensed consolidated
interim financial statements have been prepared in accordance with
the accounting policies adopted in the last annual financial
statements for the year to 31 December 2017.
The accounting policies have been applied consistently
throughout the group for the purposes of preparation of these
condensed consolidated interim financial statements.
The financial statements are drawn up on a going concern basis.
The directors have a reasonable expectation that the group has
adequate resources to continue in operational existence for the
foreseeable future, and consider that there are no material
uncertainties that lead to significant doubt upon the group's
ability to continue as a going concern. Cash flow forecasts are
prepared annually as part of the planning and budgeting process and
are monitored and reworked regularly. The group has fixed-term
non-amortising borrowing and has additional headroom available. In
addition, the group has relatively liquid assets in the form of
listed equity investments on which it can draw if necessary.
3. Segment reporting
Prior to 1 January 2018 the group had two main business segments
- property and financial assets. As was reported in the 2017 annual
report the financial assets comprise less than 3% of the total
assets of the group and the decision was made to combine all
activities into one segment with effect from 1 January 2018.
In 2018 the largest tenant represented 10% (2017 9%) and the
second largest tenant represented 8% (2017 7%) of gross commercial
property income for the period.
4. Income tax (credit)/expense
First First
half half Full year
2018 2017 2017
GBP'000 GBP'000 GBP'000
=================== ======== ======== =========
Current tax:
-------- -------- ---------
On revenue profits (52) (64) (61)
-------- -------- ---------
On capital profits - 4 3
-------- -------- ---------
(52) (60) (58)
-------- -------- ---------
Deferred tax - - (63)
=================== ======== ======== =========
(52) (60) (121)
=================== ======== ======== =========
The taxation charge has been based on the estimated effective
tax rate for the full year. As a Real Estate Investment Trust the
group does not pay corporation tax on its profits and gains from
its property activities.
5. Dividends
On 9 August 2018, the directors declared a property income
distribution of 18.75p per share (2017 16.25p per share) payable on
12 October 2018 to shareholders registered at 14 September
2018.
The following property income distributions have been paid by
the company:
First First
half half Full year
2018 2017 2017
GBP'000 GBP'000 GBP'000
=========================================== ======== ======== =========
2017 final: 30.0p per ordinary share (2016
final 26.0p) 1,550 1,343 1,343
-------- -------- ---------
2017 interim: 16.25p per ordinary share - - 840
=========================================== ======== ======== =========
1,550 1,343 2,183
=========================================== ======== ======== =========
6. Earnings per share
The calculation of earnings per share is based on the profit for
the period of GBP2,885,000 (2017 GBP2,693,000) and on 5,167,240
shares (2017 5,167,240) which is the weighted average number of
shares in issue during the period ended 30 June 2018 and throughout
the period since 1 January 2017.
In order to draw attention to the impact of valuation gains and
losses which are included in the income statement but not available
for distribution under the company's articles of association, an
adjusted earnings per share based on the profit available for
distribution of GBP1,681,000 (2017 GBP1,607,000) has been
calculated.
First First
half half Full year
2018 2017 2017
GBP'000 GBP'000 GBP'000
=========================================== ======== ======== =========
Earnings:
-------- -------- ---------
Basic earnings 2,885 2,693 6,835
-------- -------- ---------
Adjustments for:
-------- -------- ---------
Net valuation gains on investment property (1,165) (1,021) (3,288)
-------- -------- ---------
Gains and losses on investments (39) (69) (139)
-------- -------- ---------
Income tax on gains and losses - 4 (60)
=========================================== ======== ======== =========
Adjusted earnings 1,681 1,607 3,348
=========================================== ======== ======== =========
Per share amount:
-------- -------- ---------
Basic earnings per share 55.8p 52.1p 132.3p
-------- -------- ---------
Adjustments for:
-------- -------- ---------
Net valuation gains on investment property (22.5p) (19.8p) (63.6p)
-------- -------- ---------
Gains and losses on investments (0.8p) (1.3p) (2.7p)
-------- -------- ---------
Income tax on gains and losses - 0.1p (1.2p)
=========================================== ======== ======== =========
Adjusted earnings per share 32.5p 31.1p 64.8p
=========================================== ======== ======== =========
7. Investment property
First First
half half Full year
2018 2017 2017
GBP'000 GBP'000 GBP'000
============================================= ======== ======== =========
Valuation at 1 January 77,113 65,997 65,997
-------- -------- ---------
Additions - 10,058 10,086
-------- -------- ---------
Disposals (2,473) (2,257) (2,258)
-------- -------- ---------
Gain on revaluation 1,165 1,021 3,288
============================================= ======== ======== =========
Valuation at period end 75,805 74,819 77,113
============================================= ======== ======== =========
Less property categorised as a current asset - - (798)
============================================= ======== ======== =========
Property categorised as fixed asset 75,805 74,819 76,315
============================================= ======== ======== =========
The directors have used an external independent valuation of
properties at 30 June 2018 which has been carried out consistently
with the annual valuation.
8. Equity investments
First First
half half Full year
2018 2017 2017
GBP'000 GBP'000 GBP'000
========================================= ======== ======== =========
Valuation at 1 January 2,131 2,469 2,469
-------- -------- ---------
Additions - - -
-------- -------- ---------
Disposals (519) (459) (459)
-------- -------- ---------
Surplus on revaluation in excess of cost 39 72 124
-------- -------- ---------
Revaluation decrease below cost (-) (3) (3)
-------- -------- ---------
Revaluation increase still below cost - - -
========================================= ======== ======== =========
Valuation at period end 1,651 2,079 2,131
========================================= ======== ======== =========
9. Interest bearing loans
First First
half half Full year
2018 2017 2017
GBP'000 GBP'000 GBP'000
============================================ ======== ======== =========
Medium term loans 19,400 19,400 19,400
============================================ ======== ======== =========
The medium term bank loans comprise amounts
falling due as follows:
-------- -------- ---------
Between two and five years 11,500 11,500 4,000
============================================ ======== ======== =========
Over five years 7,900 7,900 15,400
============================================ ======== ======== =========
The debt is secured on certain assets within the group's
property portfolio.
10. Related party transactions
Kingerlee Holdings Limited owns, through its wholly owned
subsidiaries, 27.2% (2017 27.2%) of the company's shares and D H
Kingerlee is a director of both the company and Kingerlee Holdings
Limited.
During the period, the group made purchases from Kingerlee
Limited, a subsidiary of Kingerlee Holdings Limited, being a
service charge in relation to services at Thomas House, Kidlington
of GBP7,000 (2017 GBP7,000) and a recharge of costs of GBPnil (2017
GBP180). The amount owed at 30 June 2018 was GBPnil (2017 GBPnil).
All transactions were undertaken on an arm's length basis.
11. Net assets per share
First First
half half Full year
2018 2017 2017
=========================== ============= ============= =============
Net assets GBP61,312,000 GBP56,675,000 GBP59,977,000
------------- ------------- -------------
Ordinary shares in issue 5,167,240 5,167,240 5,167,240
------------- ------------- -------------
Basic net assets per share 1187p 1097p 1161p
=========================== ============= ============= =============
12. Events after the balance sheet date
On 23 July 2018 the Company completed the purchase of the
freehold interest of a health and fitness club investment in
Birmingham for a purchase price of GBP4,925,000 net of costs. The
contracts were exchanged on 26 June 2018. In July a further
GBP822,000 was released from the equity portfolio in order to help
fund the Birmingham acquisition.
Statement of directors' responsibilities
The directors confirm that, to the best of their knowledge, this
condensed consolidated set of half-year financial statements has
been prepared in accordance with IAS 34. The half-year management
report includes a fair review of the information required by 4.2.7
and 4.2.8 of the Disclosure and Transparency Rules of the United
Kingdom's Financial Conduct Authority, namely:
-- an indication of the important events that have occurred
during the first six months of the financial year ending 31
December 2018 and their impact on the condensed consolidated set of
half-year financial statements, and a description of the principal
risks and uncertainties for the remaining six months of the
financial year; and
-- disclosure of material related party transactions in the
first six months of the financial year, and any material changes in
the related party transactions described in the last annual
report.
A list of current directors is maintained on the Highcroft
Investments PLC website: www.highcroftplc.com.
By order of the board
Charles Butler
Chairman
9 August 2018
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