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RNS
Cardiff Property PLC  -  CDFF   

Final Results

Released 07:00 30-Nov-2016

RNS Number : 4528Q
Cardiff Property PLC
30 November 2016
 

THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY

AND ITS SUBSIDIARIES

 

 

FOR RELEASE                           7.00 AM                                    30 November 2016

 

THE CARDIFF PROPERTY PLC

(The group, including Campmoss, specialises in property investment and development in the Thames Valley. The total portfolio under management, valued in excess of £39m, is primarily located to the west of London, close to Heathrow Airport and in Surrey and Berkshire.)

 

PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2016

 

 

 

Highlights:

 

 

 

2016

2015

 

 

 

 

 

 

Rental income

£'000

580

577

 

Profit before tax

£'000

2,673

2,586

 

Earnings per share

pence

195.3

191.3

 

Dividend per share -

paid and proposed

 

pence

 

14.0

 

13.5

 

 

Net assets per share

pence

1,876

1,684

 

Gearing

%

Nil

Nil

 

 

 

Richard Wollenberg, Chairman, commented:

 

"During the period prior to the UK European Referendum vote the Thames Valley commercial property market enjoyed increased activity. The leave vote brought about uncertainty with commentators predicting falls in rental levels and capital values. Despite this, activity in the investment and occupational markets has been higher than expected with office, retail and industrial rents in parts of the Thames Valley showing small increases."

 

 

For further information:

 

The Cardiff Property plc

Richard Wollenberg

01784 437444

Stockdale Securities

       Richard Johnson

020 7601 6100

       

 

 

THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY

AND ITS SUBSIDIARIES

 

(The group, including Campmoss, specialises in property investment and development in the Thames Valley. The total portfolio under management, valued in excess of £39m, is primarily located to the west of London, close to Heathrow Airport and in Surrey and Berkshire.)

 

 

PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2016

 

 

Chairman's Statement and Property Review

 

 

Dear Shareholder

 

During the period prior to the UK European Referendum vote the Thames Valley commercial property market enjoyed increased activity. The leave vote brought about uncertainty with commentators predicting falls in rental levels and capital values. Despite this, activity in the investment and occupational markets has been higher than expected with office, retail and industrial rents in parts of the Thames Valley showing small increases.

 

Institutional and private investors continue to remain active, assisted by low interest rates and the availability of funding. Enquiries from occupiers who wish to purchase their own freehold have noticeably increased.

 

Residential values in Surrey and Berkshire have in the main retained increases achieved over the last few years with those at the higher level experiencing some softening in demand.  Letting activity continues to indicate a stable market.

 

The group's development programme is primarily directed towards small retail units and 1, 2 and 3 bedroom apartments. Although residential investors have encountered tax and stamp duty changes, various government Help to Buy schemes continue to assist first time home buyers.

 

FINANCIAL

For the year to 30 September 2016 the group profit before tax was £2.67m (2015: £2.59m). This figure includes a revaluation increase of £0.25m (2015: £0.18m) for the group and a profit of £1.87m (2015: £1.92m) in respect of our after-tax profit share of Campmoss Property Company Limited, our 47.62% owned joint venture. 

 

Revenue for the year which represented gross rental income, excluding Campmoss, totalled £0.58m (2015: £0.58m).

 

The group's share of revenue from Campmoss was £2.54m (2015: £1.70m) represented by gross rental income of £1.23m (2015: £1.39m) and property sales, as referred to later in this report, of £1.31m (2015: £0.31m). These figures are not included in group revenue.

 

The profit after tax attributable to shareholders for the financial year, was £2.49m (2015: £2.49m) and the earnings per share was 195.3p (2015: 191.3p).

 

At the year-end, the group's commercial and residential portfolio was valued by Cushman & Wakefield LLP and Nevin & Wells totalling £4.88m (2015: £4.66m). This value excludes own use freehold property, which is included under property, plant and equipment in the balance sheet and held at valuation.

 

Property when completed and held for re-sale is held as stock at the lower of cost or net realisable value. At the year end this represented commercial property at The Windsor Business Centre.

 

 

Chairman's Statement and Property Review (continued)

 

The group's total property portfolio, including the Campmoss investment and development portfolio, was valued at £39.1m (2015: £37.5m). The company's share of the net assets of Campmoss was £13.03m (2015: £11.16m).

 

In view of the contracted sale of Worplesdon View, Guildford at £15.85m, the directors of Campmoss increased the value of this property at the half year to £13m. Further details of the contracted sale are included in the Campmoss section of this report.

 

The group's net assets as at the year-end were £23.84m (2015: £21.56m) equivalent to 1,876p per share (2015: 1,684p) an increase of 11.4% over the year (2015: 13.0%). The group, including Campmoss, has adequate financial facilities and resources to complete works in progress and the proposed development programme. Cash balances are held on short term deposit. At the year end the company had nil gearing (2015: nil). During the year, the company purchased and cancelled 9,037 ordinary shares at a total cost of £136,066.

 

Your directors are proposing the annual renewal of their authority to acquire shares and the approval of the Rule 9 Waiver. Both will be included in the resolutions being placed before shareholders at the Annual General Meeting and General Meeting respectively, both to be held on 19 January 2017. Full details of the Rule 9 Waiver are set out in the document accompanying this report and are also available on the company's website www.cardiff-property.com.

 

Current IFRS accounting recommends that deferred tax is chargeable on the difference between, the indexed cost of properties and quoted investments and their current market value. Campmoss has also adopted this policy as required under FRS 102. However current IFRS accounting does not require the same treatment in respect of the Group's unquoted investment in Campmoss Property our 47.62% owned joint venture. The investment in Campmoss is a substantial part of the company's net assets and for indicative purposes a disposal of this investment based on the value in the company's balance sheet at the year-end could generate a tax liability that would equate to £2.34m (2015: £2.16m) equivalent to 185p (2015: 169p) per share. This information is provided to shareholders as an additional, non-statutory disclosure.

 

Due to the withdrawal of UK GAAP accounting, the figures for Campmoss as at the half year were based on Financial Reporting Standard 101 (FRS 101). As Campmoss is not required to produce consolidated group accounts, FRS 102 must now instead be adopted.  There is no difference in the results for Campmoss under FRS 101 or FRS 102 and a reconciliation of the impact on the results from old UK GAAP is set out in note 29.

 

 

DIVIDEND

The directors recommend a final dividend of 10.4p per share (2015: 10p) making a total dividend for the year of 14p (2015: 13.5p) an increase of 3.7%. The final dividend will be paid on 16 February 2017 to shareholders on the register at 27 January 2017.

 

THE PROPERTY PORTFOLIO

The group continues to concentrate its property activities in the Thames Valley primarily to the west of London close to Heathrow Airport and in Surrey and Berkshire.

 

The Windsor Business Centre, Windsor, comprises 4 business units totalling 9,500 sq. ft. All 4 units are let. Following discussions with the local authority, planning has recently been granted to increase the office area within one of the units and discussions with the current tenant are in progress.

 

The office and retail investment at The White House, Egham, comprises 5 ground floor retail units with offices above. The retail and office space are fully occupied on medium term leases, three of the agreements include annual rental increases.

 

 

Chairman's Statement and Property Review (continued)

 

The Maidenhead Enterprise Centre, Maidenhead, comprises 6 business units totalling 14,000 sq. ft. Each unit comprises industrial use on the ground floor with offices above. One unit was let during the year and all are now occupied on either short or medium term leases. Two leases expire during the next 6 months and discussions are in hand with new tenants at increased rental levels.

 

At Heritage Court, Egham, adjacent to the company's offices, the building comprises 4 retail units, 3 of which are let on medium term leases. One lease is due to expire this year and negotiations are in progress with the existing tenant at an expected increased rent. 

 

 

The company occupies its own freehold office in Egham and retains a freehold residential property in Egham which is let on an Assured Shorthold Tenancy Agreement. A planning application has been submitted to extend the residential property.

 

The property at Cowbridge Road, Cardiff, comprises a 14,650 sq. ft. commercial property on two floors and let on a medium term lease to Royal Mail for use as a mail sorting centre.

 

At Tilehurst, Reading, discussions are taking place with the Local Planning Authority to achieve residential use on part of the site. The site is now owned by Thames Valley Retirement Homes Limited following the lapse of a joint venture option.

 

CAMPMOSS PROPERTY COMPANY LIMITED AND SUBSIDIAIRES

During the year, the Campmoss group completed works to convert part of its office portfolio in Bracknell to residential use, finalised a number of residential and commercial property sales and negotiated several new commercial and residential lettings. Following detailed discussions with the respective planning authorities three residential planning applications were submitted on existing commercial properties. The group's' freehold investment portfolio includes office, retail and residential property in Bracknell, Burnham, Slough, Maidenhead, Woking and a care home in Worplesdon.

 

At Worplesdon View, Worplesdon, Guildford, the 78-bedroom care home is let to Barchester Healthcare Homes on a 35-year institutional lease with annualised RPI increases. During the first half of this year contracts were exchanged with the tenant for the freehold sale at a price of £15.85m. Rental income will be received until completion which is expected to take place by August 2017. Following completion of the sale Campmoss will continue to own an adjacent 2-acre site which, subject to planning, could be available for development.

 

At Gowring House, Bracknell conversion of the 3 upper floors to 18 residential units has been completed and similar works are now underway on the first and second floors to achieve a further 12 residential units. Sales of 15 apartments have now been completed of which 12 took place during the year. Of the 3 remaining apartments 2 are currently let. Works to the first and second floors are anticipated to complete early next year with the units being offered either for sale or letting. Three commercial units on the ground floor are all let on medium term leases.

 

At Westview, Market Street, Bracknell, adjacent to Gowring House the development of 8 retail units on ground and first floor has now been completed and all units have been let on medium to long term leases.

 

Adjacent to Westview (to be known as Alston House) demolition of the existing building was completed and planning permission granted to construct 10 new retail units on the ground and first floors. Following detailed discussions with the local authority a further planning application has been submitted for 12 residential units on the third and fourth floors. Commencement of any development will depend on the outcome of the planning application.

 

At the north-eastern end of Market Street Bracknell the company retains an investment in 12 retail units, 11 of which are currently let to local businesses on medium term leases. One unit was sub-divided during the year creating an additional unit which was subsequently let, one unit remains available.

 

 

Chairman's Statement and Property Review (continued)

 

At Brickfields Industrial Park, Bracknell 16 business units and an adjoining office unit are all let on short or medium term leases. One unit was sold on a long leasehold basis during the early part of the year making a total of 4 units now sold to owner occupiers. Subsequent to the year-end Campmoss Property Company Limited has exchanged contracts to sell the freehold at Brickfields, Bracknell for a consideration of £3.7m.  At 30 September 2016 Brickfields was valued at £3.1m.

 

At The Priory, Burnham, the 26,000 sq ft building comprises new office premises on 3 floors totalling 17,000 sq ft and an adjoining grade II Listed office building of 9,000 sq ft which is used as a Business Centre. The new building is let to 3 tenants on a medium-term lease whilst the Business Centre is partly let on short term leases expiring over the next 3 years. Further lettings at the Business Centre have recently been completed.

 

Planning applications have been submitted for the re-development of Britannia Wharf, Woking for either a care home or residential scheme. The building comprises four floors of offices totalling 27,743 sq ft. Following negotiations and expiry of leases, vacant possession of the whole building is anticipated in early 2017. Comprehensive proposals from a number of care home operators have been received and interest in the potential residential scheme has been considerable. The outcome of our planning applications is expected early next year.

 

Highway House and Clivemont House, Maidenhead are both vacant sites with planning permissions to develop individual office schemes. At Highway House a pre-letting continues to be sought prior to the commencement of any development.  At Clivemont House a planning application for residential use was submitted early in the year and discussions with the Local Authority are in progress.

 

At the year end the investment portfolio was valued by the directors of Campmoss, taking into account external advice where available and assessed at a current market value of £32.8m (2015: £29.95m). This figure includes property under development but excludes stock.

 

Total revenue for Campmoss for the year amounted to £5.3m (2015: £3.6m) representing gross rental income of £2.6m (2015: £2.9m) and sales of property of £2.7m (2015: £0.7m). At the year-end net borrowing amounted to £2.9m (2015: £5.8m) and gearing was 11% (2015: 24%).

 

QUOTED INVESTMENTS

The company retains a small portfolio of quoted retail bonds and equity investments comprising, The Renewables Infrastructure Group Limited, A2D Funding Plc, ImmuPharma plc, Galileo Resources plc and Aquila Services Group plc (formerly General Industries plc). I remain a director of Galileo Resources plc and Aquila Services Group plc. The value of the portfolio at the year-end exceeds the original cost.

 

RELATIONSHIP AGREEMENT

The company has entered into a written and legally binding relationship agreement with myself, its controlling shareholder, to address the requirements of LR9.2.2AR of the Listing Rules.

 

MANAGEMENT AND TEAM

Following the retirement of David Whitaker, our Finance Director, I would like to take this opportunity of welcoming Karen Chandler as Finance Director and Company Secretary. Karen together with the group's small management team and our joint venture partner have been extremely busy during the year and I thank them all for their efforts, achievements and support. The intensive day to day management of the group's portfolio remains essential in achieving continued success.

 

OUTLOOK

Progressing our residential programme together with exciting projects in Bracknell and Woking should provide for a busy year ahead. Completion of the contracted sale at Worplesdon and the successful achievement of further planning permissions will be important. The economic uncertainties surrounding Brexit will influence the market, and whilst our properties and most tenants are UK resident the precise impact of Brexit is uncertain. However, I look forward to reporting further progress at the half year stage.

 

 

Chairman's Statement and Property Review (continued)

 

Subsequent to the year-end Campmoss Property Company Limited has exchanged contracts to sell the freehold at Brickfields, Bracknell for a consideration of £3.7m.  At 30 September 2016 Brickfields was valued at £3.1m.

 

J. Richard Wollenberg

Chairman

29 November 2016

 

 

Consolidated Income Statement

FOR THE YEAR ENDED 30 SEPTEMBER 2016

 

 

 

2016

 

2015

 

 

 

£'000

 

£'000

 

 

 

 

 

 

Revenue

 

 

577

 

577

Cost of sales

 

 

(31)

 

(31)

 

 

 

              

 

              

Gross profit

 

 

546

 

546

Administrative expenses

 

 

(540)

 

(540)

Other operating income

 

 

406

 

406

 

 

 

              

 

              

Operating profit before gains on

   investment properties and other

   properties

 

 

 

 

412

 

 

 

412

Surplus on revaluation of investment properties

 

 

150

 

150

Surplus on revaluation of other properties

 

 

25

 

25

 

 

 

              

 

              

Operating profit

 

 

587

 

587

Financial income

 

 

77

 

77

Share of results of joint venture

 

 

1,976

 

1,922

 

 

 

              

 

              

Profit before taxation

 

 

2,640

 

2,586

Taxation

 

 

(96)

 

(96)

 

 

 

              

 

              

Profit for the financial year attributable to equity holders

 

 

 

2,544

 

 

2,490

 

 

 

              

 

              

 

 

Earnings per share on profit for the

 

 

 

 

 

   financial year - pence

 

 

 

 

 

Basic

 

 

195.5

 

191.3

Diluted

 

 

195.5

 

191.3

 

 

 

              

 

              

 

 

Dividends

 

 

 

 

 

Final 2015 paid 10p (2014: 9.55p)

 

 

128

 

126

Interim 2016 paid 3.6p (2015: 3.5p)

 

 

46

 

46

 

 

 

              

 

              

 

 

 

174

 

171

 

 

 

              

 

              

Final 2016 proposed 10.4p (2015: 10p)

 

 

132

 

128

 

 

 

              

 

              

These results relate entirely to continuing operations. There were no acquisitions or disposals in either year.

 

 

 

Consolidated Balance Sheet

AT 30 SEPTEMBER 2016

 

 

              2016

                2015    

 

 

£'000

£'000

£'000

£'000

Non-current assets

 

 

 

 

 

Freehold investment properties

 

 

4,880

 

4,660

Investment in joint venture

 

 

13,025

 

11,156

Property, plant and equipment

 

 

278

 

238

Other financial assets

 

 

842

 

744

Deferred tax asset

 

 

5

 

5

 

 

 

               

 

               

 

 

 

19,030

 

16,803

 

 

 

 

 

 

Current assets

 

 

 

 

 

Stock and work in progress

 

668

 

668

 

Trade and other receivables

 

1,594

 

132

 

Financial assets

 

1,047

 

1,050

 

Cash and cash equivalents

 

2,198

 

3,579

 

 

 

               

 

5,507

               

 

5,429

 

 

 

               

 

               

Total assets

 

 

24,537

 

22,232

 

 

 

               

 

               

Current liabilities

 

 

 

 

 

Corporation tax

 

(103)

 

(99)

 

Trade and other payables

 

(461)

 

(516)

 

 

 

               

 

(564)

               

 

(615)

Non-current liabilities

 

 

 

 

 

Deferred tax liability

 

 

(134)

 

(60)

 

 

 

               

 

               

Total liabilities

 

 

(698)

 

(675)

 

 

 

               

 

               

Net assets

 

 

23,839

 

21,557

 

 

 

                

 

                

Equity

 

 

 

 

 

Called up share capital

 

 

254

 

256

Share premium account

 

 

5,076

 

5,076

Other reserves

 

 

2,699

 

2,544

Investment property revaluation reserve

 

 

3,749

 

2,158

Retained earnings

 

 

12,091

 

11,523

 

 

 

                

 

                

Shareholders' funds attributable to equity holders

 

 

 

23,839

 

 

21,557

 

 

 

                

 

                

 

 

 

 

 

 

Net assets per share

 

 

1,876p

 

1,684p

 

 

 

                

 

                

 

 

 

 

 

 

 

 

Consolidated Cash Flow Statement

FOR THE YEAR ENDED 30 SEPTEMBER 2016

 

 

 

2016

2015

 

 

£'000

£'000

 

 

 

 

Cash flows from operating activities

 

 

 

   Profit for the year

 

2,494

2,490

   Adjustments for:

 

 

 

      Depreciation

 

2

1

      Financial income

 

(79)

(77)

      Share of profit of joint venture

 

(1,869)

(1,922)

      Surplus on revaluation of investment properties

 

(220)

(150)

      Surplus on revaluation of other properties

 

(25)

(25)

      Taxation

 

179

96

 

 

                

                

Cash flows from operations before changes in working capital

 

482

413

   Decrease in trade and other receivables

 

38

632

   Increase in trade and other payables

 

(57)

19

 

 

                

                

Cash generated from operations

 

463

1,064

   Tax paid

 

(97)

(96)

 

 

                

                

Net cash flows from operating activities

 

366

968

 

 

                

                

 

 

 

 

Cash flows from investing activities

 

 

 

   Interest received

 

77

77

   Acquisition of investments and property, plant and equipment

 

(17)

(1)

   Held to maturity deposits

 

3

1,154

 

 

                

                

Net cash flows from investing activities

 

63

1,230

 

 

                

                

 

 

 

 

Cash flows from financing activities

 

 

 

   Purchase of own shares

 

(136)

(305)

   Dividends paid

 

(174)

(171)

 Loan to Joint Venture

 

(1,600)

-

 

 

                

                

Net cash flows from financing activities

 

(1,810)

(476)

 

 

                

                

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

 

(1,381)

1,722

   Cash and cash equivalents at beginning of year

 

3,579

1,857

 

 

                

                

Cash and cash equivalents at end of year

 

2,198

3,579

 

 

                

                

 

 

Consolidated statement of comprehensive income and expense

FOR THE YEAR ENDED 30 SEPTEMBER 2016

 

 

Consolidated statement of comprehensive income and expense

 

 

 

 

 

 

 

2016

2015

 

 

£'000

£'000

 

 

 

 

Profit for the financial year

 

2,494

2,490

 

 

                

                

Other items recognised directly in equity

 

 

 

Net change in fair value of available for sale financial assets

 

98

19

 

 

                

                

Total comprehensive income and expense for the year

  attributable to the equity holders of the parent company

 

 

2,592

 

2,509

 

 

                

                

 

 

 

Consolidated statement of changes in equity

FOR THE YEAR ENDED 30 SEPTEMBER 2016

 

 

Consolidated statement of changes in equity

 

 

 

 

 

 

Share
capital

 

 

    £'000

Share
premium
account

 

£'000

Other
reserves

 

 

£'000

Investment
property
revaluation
reserve

    £'000

Retained
earnings

 

 

£'000

Total
equity

 

 

£'000

At 1 October 2014

262

5,076

2,494

577

11,115

9,524

Profit for the year

-

-

-

-

2,490

2,490

Other comprehensive income - revaluation of investments

-

-

19

-

-

19

 

Transactions with equity holders

 

 

 

 

 

 

Dividends

-

-

-

-

(171)

(171)

Purchase of own shares

(6)

-

6

-

(305)

(305)

 

                

                

                

                

                

                

Total transactions with equity holders

(6)

-

6

-

(476)

(476)

 

                

                

                

                

                

                

Realisation of investment reserve

-

-

-

(41)

41

-

Transfer on revaluation of investment properties

 

-

 

-

 

-

 

1,622

 

(1,622)

 

-

Transfer on revaluation of other properties

 

-

 

-

 

25

 

-

 

(25)

 

-

 

                

                

                

                

                

                

At 30 September 2015

256

5,076

2,544

2,158

11,523

21,557

Profit for the year

-

-

-

-

2,494

2,494

Other comprehensive income - revaluation of investments

-

-

98

-

-

98

 

 

 

 

 

 

 

 

Transactions with equity holders

 

 

 

 

 

 

Dividends

-

-

-

-

(174)

(174)

Purchase of own shares

(2)

-

2

-

(136)

(136)

 

                

                

                

                

                

                

Total transactions with equity holders

(2)

-

2

-

(310)

(310)

 

                

                

                

                

                

                

Realisation of investment reserve

-

-

-

(41)

41

-

Transfer on revaluation of investment properties

 

-

 

-

 

-

 

1,632

 

(1,632)

 

-

Transfer on revaluation of other properties

 

-

 

-

 

25

 

-

 

(25)

 

-

 

                

                

                

                

                

                

At 30 September 2016

254

5,076

2,669

3,749

12,091

23,839

 

                

                

                

                

                

                

 

 

Notes to the Financial Statements

FOR THE YEAR ENDED 30 SEPTEMBER 2016

 

1.     Basis of preparation

 

The consolidated results for the year ended 30 September 2016 and 2015 are prepared by the group under applicable International Financial Reporting Standards adopted by the EU ("adopted IFRS") and applicable law.

 

The financial information set out above does not constitute the company's statutory financial statements for the years ended 30 September 2016 or 30 September 2015 but is derived from those financial statements. Statutory financial statements for 2015 have been delivered to the Registrar of Companies and those for 2016 will be delivered in due course. The auditor has reported on those financial statements; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the financial statements for 2015 nor 2016.

 

Going concern

 

The group has sufficient financial resources to enable it to continue to trade and to complete the current maintenance and development programme. As a consequence, the directors believe that the group is well placed to manage its business risks successfully.

After making enquiries, the directors have a reasonable expectation that the company and the group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.

 

New, revised or changes to existing financial reporting standards

 

Subject to the adoption of the IFRS's available for application noted below, this announcement is prepared on the basis of the accounting policies as set out in the most recently published set of annual financial statements.

 

IFRS

The following accounting standards and interpretations, issued by the IASB and endorsed by the EU or International Financial Reporting Interpretations Committee (IFRIC), are effective for the first time in the current financial year and have been adopted by the group with no significant impact on the consolidated results or financial position:

■    IFRS 14 Regulatory Deferral Accounts

■    Accounting for Acquisitions of Interests in Joint Operations - Amendments to IFRS 11

■    Clarification of Acceptable Methods of Depreciation and Amortisation - Amendments to IAS 16 and IAS 38.

■    Agriculture: Bearer Plants - Amendments to IAS 16 and IAS 41

■    Equity Method in Separate Financial Statements - Amendments to IAS 27

■    Sale or Contribution of Assets between an Investor and its Associate or Joint Venture - Amendments to IFRS 10 and IAS 28

■    Annual Improvements to IFRSs - 2012-2014 Cycle

■    Investment entities: Applying the Consolidation Exception - Amendments to IFRS 10, IFRS 12 and IAS 28

■    Disclosure Initiative - Amendments to IAS 1

■    IFRS 15 - Revenue from Contracts with Customers.

 

None of these standards and interpretations, when applied, are expected to have a material impact upon the consolidated results of financial position of the group (other than in relation to disclosures or presentation), except for IFRS16 "Leases".  This standard requires lessees to recognise a lease liability reflecting future lease payments and a "right-of-use asset" for virtually all lease contracts. For lessors, the accounting stays almost the same. However, as the IASB has updated the guidance on the definition of a lease (as well as the guidance on the combination and separation of contracts), lessors will also be affected by the new standard. At the very least, the new accounting model for lessees is expected to impact negotiation between lessors and lessees. The group has not yet assessed the full impact of this standard.

 

 

 

Notes to the Financial Statements

FOR THE YEAR ENDED 30 SEPTEMBER 2016 (continued)

 

2.     Segmental analysis

 

The group manages its operations in two segments, being property and other investment and property development. The results of these segments are regularly reviewed by the board as a basis for the allocation of resources, in conjunction with individual site investment appraisals, and to assess their performance. Information regarding the results and net operating assets for each reportable segment are set out below:

 

2016

2015

 

£'000

£'000

Revenue (wholly in the United Kingdom):

 

 

   Property and other investment being gross rents receivable

580

577

   Property development being sales of development properties

-

-

 

              

              

 

580

577

 

              

              

Profit before taxation:

 

 

   Property and other investment

2,511

2,455

   Property development

162

131

 

              

              

 

2,673

2,586

 

              

              

Net operating assets:

 

 

   Assets

 

 

      Property and other investment

23,783

21,472

      Property development

4,033

3,919

      Eliminations

(3,279)

(3,159)

 

                

                

Total assets

24,537

22,232

 

                

                

   Liabilities

 

 

      Property and other investment

(3,760)

(3,602)

      Property development

(217)

(232)

      Eliminations

3,279

3,159

 

                

                

Total liabilities

(698)

(675)

 

                

                

Net operating assets

23,839

21,557

 

                

                

Of the group's share of the profit in its joint venture of £1,869,000 (2015: £1,922,000), £450,000 (2015: £167,000) relates to property development and £1,419,000 (2015: £1,755,000) relates to property investment. The interest income of £4,000 (2015: £2,000) relates entirely to property investment. Of the income tax expense of £395,000 (2015: £187,000), £282,000 (2015: £146,000) relates to property investment and £113,000 (2015: £41,000) to property development. Due to the reportable segments being accounted for in separate legal entities it is possible to directly allocate the group results and net assets to the reportable segments.

 

3. Earnings per share

 

Earnings per share has been calculated in accordance with IAS 33 - Earnings Per Share using the profit after tax for the financial year of £2,494,000 (2015: £2,490,000) and the weighted average number of shares as follows:

 

Weighted average

number of shares

 

2016

 2015

 

 

 

Basic and diluted basis

1,276,736

1,301,461

 

                 

                

 

 

Financial Calendar

 

 

2016

30 November

Final results for 2016 announced

2017

19 January

Annual General Meeting/General Meeting

 

26 January

Ex-dividend date for the final dividend

 

27 January

Record date for the final dividend

 

16 February

Final dividend to be paid

 

May

Interim results for 2016 to be announced

 

July

Interim dividend for 2016 to be paid

 

30 September

Year end

 

 

 

 

Directors and Advisers

 

 

Directors

Auditor

J Richard Wollenberg

KPMG LLP

Chairman and chief executive

 

 

 

Karen L Chandler FCA

 

Finance director

Stockbrokers and financial advisers

 

Stockdale Securities Ltd

Nigel D Jamieson BSc, FCSI

 

Independent non-executive director

 

 

 

Secretary

Bankers

Karen L Chandler FCA

HSBC Bank Plc

 

 

 

 

Non-executive director of wholly owned subsidiary

Solicitors

First Choice Estates plc

Blake Morgan LLP

Derek M Joseph BCom, FCIS

 

 

 

 

 

Head office

Registrar and transfer office

56 Station Road

Neville Registrars Ltd

Egham

Neville House

Surrey TW20 9LF

18 Laurel Lane

Telephone: 01784 437444

Halesowen

Fax: 01784 439157

B63 3DA

E-mail: webmaster@cardiff-property.com

Telephone: 0121 585 1131

Web: www.cardiff-property.com

 

 

 

 

 

Registered office

Registered number

3 Assembly Square

227050

Britannia Quay

 

Cardiff Bay

 

CF10 4AX

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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