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Stewart & Wight PLC  -  STE   

Final Results

Released 07:00 07-Jun-2017

RNS Number : 3388H
Stewart & Wight PLC
07 June 2017
 

                                    STEWART & WIGHT PLC

                                                -

                                    CHAIRMAN'S STATEMENT

 

A satisfactory year.  I am pleased to report that the Company made a net profit of £555,723

after tax and expenses for the year ended 31 March 2017.  Gross rental income rose to £938,342 compared with £901,717 in the previous year.  Administrative expenses were £95,708 as against £98,206 previously.  Financial expenses rose to £54,026 (£27,276) due to increased borrowing as mentioned below.

 

The properties owned by the Company as at 31 March 2017 were valued professionally at £13,605,000.  The value of the properties owned throughout the year (excluding those purchased or sold) decreased by 1.45 per cent.  During the year the Company sold its two properties in South Shields which in aggregate led to a slight gain over their previous valuation.  The property in Woodbridge which the Company purchased in 2015 and let to Joules was sold at a significant gain.  During the year the Company purchased three new properties in Truro, Barnstaple and Middlesbrough respectively.  The Board considers that they will prove to be valuable additions to the Company's portfolio of properties.  All the Company's tenants are up-to-date with their rents and there are no vacancies.

 

In order to finance the purchase of the properties mentioned above, the Company has taken a further loan of £1 million from Barclays Bank.  In addition, the Company has also been taking bridging finance from a related party at an interest rate of 4% per annum.  The Board continues to search for property investments to add to the Company's portfolio and will borrow further when, and if, appropriate.

 

An interim dividend of 10 pence per ordinary share was paid in April 2017 and the Board has decided to recommend a final dividend of 14.5p per share payable on 18 October 2017 to shareholders registered at close of business on 22 September 2017.  This represents a total dividend of 24.5p per share compared with 24p last year. 

 

The net asset value of each ordinary share was £7.25 per share as at 31 March 2017 compared with £7.13 at 31 March 2016.

 

The Board has chosen the same venue as last year for this year's Annual General Meeting which will be held at Stanmore Golf Club, 29 Gordon Avenue, Stanmore on 6 September 2017.

 

In conclusion, I would like to thank my co-directors and the Company's advisers for their continued help and assistance.

 

 

MICHAEL CONN

Chairman

6 June 2017



 

 

Stewart & Wight PLC

Statement of comprehensive income (audited)

for the year ended 31 March 2017

 

 


Year to 31 March

2017

£

Year to 31 March

2016

£

Gross rental income

938,342

901,717

Property operating expenses

(44,278)

(86,862)

Net rental income

894,064

814,855

Profit/(Loss) on disposal of investment property

60,327

(62,299)

Valuation gains on investment properties

598,052

1,265,053

Valuation losses on investment properties

(697,039)

(170,000)

Administrative expenses

(95,708)

(98,206)

Net operating profit before financing

                759,696

1,749,403

Financial expenses

(54,026)

(27,276)

Profit before taxation

705,670

1,722,127

Taxation

149,947

138,788

Profit and total comprehensive income

555,723

1,583,339

Basic earnings per share

35.44p

100.96p

 

 

 

Stewart & Wight PLC

Balance sheet (audited)

as at 31 March 2017


31 March 2017

£

31 March 2016

£

Assets  

Non-current assets



Investment property

13,605,000

12,205,000

Total non current assets

13,605,000

12,205,000

Current assets



Trade and other receivables

14,675

-

Cash and cash equivalents

129,520

418,710

Total current assets

144,195

418,710

Total assets

13,749,195

12,623,710

Liabilities



Current liabilities



Interest bearing loan and borrowings

117,332

50,000

Current tax

148,866

137,707

Trade and other payables

318,328

326,522

Total current liabilities

584,526

514,229

Non-current liabilities



Interest bearing loans and borrowings

1,800,835

925,000

Total non-current liabilities

1,868,167

925,000

Total liabilities

2,385,361

1,439,229

Net assets

11,363,834

11,184,481

 

Equity



Called up share capital

89,866

89,866

Other reserve

25,670

25,670

Share premium reserve

246,000

246,000

Retained earnings

11,002,298

10,822,945

Total equity

11,363,834

11,184,481

 

 

 

Stewart & Wight PLC

Statement of Changes in Shareholders' Equity (audited)

from 1 April 2015 to 31 March 2017







Retained earnings

Other reserves

Share capital

Total


£

£

£

£

At 1 April 2015

9,600,292

271,670

89,866

9,961,828

Total comprehensive income

1,583,339

-

-

1,583,339

Dividends to shareholders

(360,686)

-

-

(360,686)

As at 31 March 2016 and 1 April 2016

10,822,945

271,670

89,866

11,184,481






Total comprehensive income

555,723

-

-

555,723

Dividends to shareholders

   (376,370)

-

-

(376,370)

As at 31 March 2017

11,002,298

271,670

89,866

11,363,834






Shareholders' funds include non-equity shareholders' funds of £11,456 (2016: £11,456). These relate to deferred ordinary shares of 328p each and have attached to them the right to a return of capital on winding up; they do not confer any voting, dividend or redemption rights. The company has the right to purchase all of the deferred shares in issue for an aggregate consideration of £1.00.

 

 

 

Stewart & Wight PLC

Cash flow statement (audited)

for the year ended 31 March 2017


Year to 31 March

2017

£

Year to 31 March

2016

£

Operating activities



Profit for the period

555,723

1,583,339

Adjustments for:



Net valuation gains on investment property

98,987

(1,095,053)

(Profit)/loss on disposal of investment property

(60,327)

62,299

Interest expense

54,026

27,276

Taxation

149,947

138,788

Operating profit before changes in working capital and provisions

798,356

716,649

Change in receivables

(14,675)

-

Change in payables

(8,194)

6,086

Cash generated from operations

775,487

722,735

Net interest paid

(54,026)

(27,276)

Tax paid

(138,788)

(32,245)

Cash flow from operating activities

582,673

663,214

Investing activities



Purchase of investment property

(2,638,987)

(1,664,947)

Sale of  investment property

1,200,327

687,701

Sale of investment



Cash used in investing activities

(1,438,660)

(977,246)

Financing activities



Cash inflow from loans

1,010,000

2,020,000

Cash outflow from loan repayments

(66,833)

(1,045,000)

Dividend paid

(376,370)

(360,686)

Cash flow from financing activities

566,797

614,314

Net (decrease)/increase in cash and cash equivalents

(289,190)

300,282

Cash and cash equivalents at 1 April 2016

418,710

118,428

Cash and cash equivalents at 31 March 2017

129,520

418,710

 

 

 

Stewart & Wight PLC

Notes to the accounts

 

1.  This preliminary announcement was approved for issue by a duly appointed and authorised committee of the Board of Directors on 6 June 2017.

 

2.  Basis of preparation

While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) as endorsed for the use in the European Union, this announcement does not itself contain sufficient information to comply with IFRS.

 

3

Taxation

Year to 31 March

2017

£

Year to 31 March

2016

£

 


Current tax

148,866

138,788

 


Adjustment in respect of previous year

1,081

-

 



149,947

138,788

 





 

 

 

 

 

 

There is a potential deferred tax asset of £520,027 (2016: £487,000) in respect of capital losses and the revaluation of properties. In accordance with the deferred tax accounting policy, the deferred tax asset is not being recognised on the basis that it is not probable that taxable capital gains will be available against which these deductible temporary timing differences can be utilised.

 

 



 

4

Earnings per share



 


The calculation of profit per share is based on the profit for the period of £555,723 (2016: £1,583,339) and on 1,568,209 shares (2016: 1,568,209) which is the weighted average number of shares in issue during the year ended 31 March 2017.



 





 





 

5

Dividends

Year to 31 March 2017

£

Year to 31 March 2016

£

 


The following dividends have been paid by the Company



 


Ordinary shares - final dividend paid

376,370

360,686

 



376,370

360,686

 


 

Dividends of 24p per ordinary share were paid in the year. The proposed dividend for the year ended 31 March 2017 is 14.5 pence per ordinary share and is subject to approval by the shareholders at the annual general meeting and has not been included in these financial statements. The total dividend proposed amounts to £227,390. An interim dividend was paid after the year end of 10 pence per ordinary share amounting to £156,821 and has not been included in these accounts.



 





 


 



 

6

Investment Property

31 March 2017

£

31 March 2016

£

 


Valuation at 1 April 2016

12,205,000

10,195,000

 


Additions

2,638,987

1,664,947

 



Disposals

(1,140,000)

(750,000)

 



(Deficit)/surplus on revaluation

(98,987)

1,095,053

 



As at 31 March 2017

13,605,000

12,205,000

 



 

 

Boddy & Edwards, independent chartered surveyors, carried out an independent valuation of the properties at a fair value amounting to £13,605,000 at 31 March 2017. The valuation was made in accordance with the appraisal and valuation manual of the Royal Institution of Chartered Surveyors with key basis including location, rental growth and length of lease. This has been reflected in these accounts.



 






 


7

Final and interim ordinary dividend



 



A final ordinary dividend of 14.5 pence per ordinary share will be paid on 18 October 2017 to shareholders registered at the close of business on 22 September 2017. An interim dividend was paid on 4 April 2017 of 10 pence per ordinary share.








 


8.

Share capital

 

The aggregate issued share capital of the company remained £89,866 being 1,568,209 ordinary shares of 5p each and 3,489 deferred ordinary shares of 328p each.



 


 

 

 

 



 


9

Accounting policies



 



The accounting policies have been consistently applied and are consistent with the most recently published full accounts.

 



 






 


10

Limitation



 



The above does not constitute full accounts within the meaning of section 434 of the Companies Act 2006. It is an extract from the full accounts for the year ended 31 March 2017 which are audited. The auditor's report on those financial statements is unqualified and does not contain any statement under section 498(2) or (3) of the Companies Act 2006. The accounts will be posted to all shareholders on or before 6 August 2017 and subsequently filed at Companies House.








 






 


11

The Annual General Meeting will be held on 6 September 2017



 






 






 


12

The registered office of the company is at 845 Finchley Road, London NW11 8NA. The incorporation number of the company is 57142



 






 


 

 

 

For enquiries about buying and selling shares in Stewart and Wight Plc please contact Mr

Lawrence Marshom ,Walker Crips Stockbrokers Limited, Finsbury Tower,103-105 Bunhill Row,

London ,EC1Y 8LZ.Telephone:44 (0)20 3100 8660

 

Registered office - 845 Finchley Road, London, NW11 8NA, Registered in England No, 57142


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