1st May 2007 07:02
Liberty International PLC01 May 2007 1 May 2007 LIBERTY INTERNATIONAL PLC QUARTERLY REPORT FOR THE PERIOD ENDED 31 MARCH 2007 Attached is the quarterly report for the period ended 31 March 2007: Highlights Commentary Summary of Investment and Development Properties Unaudited Financial Information Sir Robert Finch, Chairman of Liberty International, commented: "Liberty International has had an active and successful first quarter of 2007.The results for the first quarter show continued growth in like-for-like netrental income, an increase in underlying profit before tax from £28 million to£36 million and a 4 per cent increase for the quarter in net asset value pershare to 1376p. This is the equivalent of 1476p when adjusted for notionalacquisition costs deducted by the valuers in accordance with their rules toarrive at market values. Our financial position is exceptionally strong with a36 per cent debt to assets ratio. These results confirm the merit of our focus on prime retail assets whosecharacteristics are steady long-term rental growth in well-establishedcompetitive locations and whose values are less cyclically volatile than manyother property classes. Furthermore, our published net asset value does notrecognise the value of the business as a whole, including for example the longlead times needed for major new developments and the skill, expertise andexperience found within Liberty International to create and then activelycontrol and manage such developments". 1 May 2007 Background on Liberty InternationalLiberty International PLC is the UK's third largest listed property company anda constituent of the FTSE-100 Index of the UK's leading listed companies.Liberty International owns Capital Shopping Centres ("CSC"), the premier UKregional shopping centre business, and Capital & Counties, a retail andcommercial property investment and development company concentrating on CentralLondon, non-shopping centre retail in the UK and California, USA. This press release includes statements that are forward-looking in nature.Forward-looking statements involve known and unknown risks, uncertainties andother factors which may cause the actual results, performance or achievements ofLiberty International PLC to be materially different from any future results,performance or achievements expressed or implied by such forward-lookingstatements. Any information contained in this press release on the price atwhich shares or other securities in Liberty International PLC have been boughtor sold in the past, or on the yield on such shares or other securities, shouldnot be relied upon as a guide to future performance. A conference call with analysts and investors will take place at 9.00 a.m. on 1May 2007. Enquiries: Liberty International PLC:Sir Robert Finch Chairman +44 (0)20 7960 1273 David Fischel Chief Executive +44 (0)20 7960 1207 Aidan Smith Finance Director +44 (0)20 7960 1210 Public relations:UK: Michael Sandler, Hudson Sandler +44 (0)20 7796 4133 SA: Matthew Gregorowski, College Hill Associates +44 (0)20 7457 2020 Nicholas Williams, College Hill Associates +27 (0)11 447 3030 LIBERTY INTERNATIONAL PLC QUARTERLY REPORT FOR THE PERIOD ENDED 31 MARCH 2007 - HIGHLIGHTS ------------------------------------------------------------------------------- Quarter ended Quarter ended Year 31 March 31 March ended 2007 2006 31 December 2006 ------------------------------------------------------------------------------- Net rental income +14% £91m £80m £341m Profit before tax (underlying)* +29% £36m £28m £122m Profit before tax £293m £903mProfit for the periodattributable to equityshareholders £273m £1,564m Gain on revaluation and sale ofinvestment properties £156m £587m Total properties £8,116m £8,232mNet debt £3,043m £3,063mNet assets (diluted, adjusted) £5,190m £5,002m Adjusted earnings per share +56% 9.8p 6.4p 33.9pNet assets per share +4% 1376p 1327p(diluted, adjusted**) (for the quarter) *Profit before tax (underlying) is before property trading, valuation andexceptional items **Net assets per share (diluted, adjusted) would increase by 100p per share to1476p at 31 March 2007 (31 December 2006 - by 98p to 1425p) if adjusted for notional acquisition costs amounting to £377 million (31 December 2006 - £370 million). LIBERTY INTERNATIONAL PLC COMMENTARY Liberty International has had an exceptionally productive first three monthssince becoming a UK Real Estate Investment Trust (''REIT'') on 1 January 2007. With the benefit of increased asset management flexibility provided by REITstatus, we have recorded the following significant corporate transactions in thefirst quarter of 2007: •Formation of a strategic partnership with GIC Real Estate realising £426 million. •Formation of The Great Capital Partnership, a £460 million joint venture with Great Portland Estates. £€128 million acquisition of the Royal Opera House retail units in Covent Garden. Details of these transactions are shown in the paragraph "Transactions in thequarter" below. The financial information contained within this report has included both theacquisition of the Royal Opera House retail units and the partnership with GICReal Estate together with the related disposal of 40 per cent of the group'sinterest in the MetroCentre, Gateshead. The cash element of the settlement inrespect of the GIC partnership amounting to £212 million was received after theend of the quarter and therefore is shown as a receivable at 31 March 2007. The impact of the formation of The Great Capital Partnership, which has alsocompleted since the quarter end, has not been incorporated into the financialresults for the period due to the conditionality of the contract as at 31 March2007. Results for the quarter ended 31 March 2007 The Income Statement for the quarter shows continuing underlying growth, with an11.4 per cent like-for-like net rental income growth in the group's UK regionalshopping centres (5.8 per cent excluding a one-off £3 million surrenderpremium), a 29 per cent increase in underlying profit before tax from £28million to £36 million, and a 56 per cent increase in underlying earnings pershare reflecting in addition the benefit of tax savings from conversion to REITstatus. Occupancy remained at a high level of 98.4 per cent in established UK regionalshopping centres, 97.9 per cent overall including recently completeddevelopments (31 December 2006 - 98.6 per cent and 97.7 per cent respectively).In particular Manchester Arndale, where the major 550,000 sq. ft. NorthernExtension completed in Autumn 2006, is now 94 per cent committed by rentalvalue. Gains on revaluation and sale of investment properties amounted to £156 million,including £16 million from the partial disposal of MetroCentre, Gateshead, abovethe book value at 31 December 2006. Like-for-like gains on revaluation of investment properties are summarised asfollows: ------------------------------------------------------------------------------- Quarter ended Year ended 31 March 31 December 2006 2007 ------------------------------------------------------------------------------- UK regional shopping centres + 1.9% + 7.9% UK non-shopping centre properties + 1.6% + 13.9% USA + 1.5% + 5.8% ------------------------------------------------------------------------------- Of the revaluation gain on UK regional shopping centres, 75 per cent isestimated to have arisen as a result of yield shift, and 25 per cent fromunderlying rental growth. Reflecting the rise in long-term interest rates in the period, with for examplethe ten year UK interest rate swap rising from 5.11 per cent at 31 December 2006to 5.35 per cent at 31 March 2007, we recorded a surplus of £109 million onrevaluation of the derivative financial instruments used to fix our long-termdebt. Transactions in the quarter • Strategic partnership with GIC Real Estate realising £426 million. Our wholly owned subsidiary, Capital Shopping Centres (''CSC''), entered into an agreement with GIC Real Estate (''GIC RE'') for GIC RE to acquire a 40 per cent share in CSC's interest in the MetroCentre, Gateshead for a gross consideration of £426 million. We are delighted to welcome GIC RE, the real estate investment arm of the Government of Singapore Investment Corporation and one of the world's leading global real estate investors, as a strategic long-term partner in this flagship asset. CSC will continue to manage the MetroCentre. The transaction, which has completed since the end of the quarter, releases capital to enable Liberty International to continue to expand its overall business which currently includes a £1 billion development programme. • Formation of a £460 million Central London joint venture with Great Portland Estates. Our wholly owned subsidiary, Capital and Counties, announced the formation of The Great Capital Partnership, a 50:50 joint venture with Great Portland Estates plc (''GPE''), to own, manage and develop a number of Central London properties and to broaden both parties' exposure in Central London. The Great Capital Partnership has a starting value of around £460 million, with Capital & Counties contributing £299 million of investment properties and GPE contributing £162 million and making a balancing payment of £68 million in cash to Capital & Counties. The transaction has completed since the end of the quarter. GPE will be responsible for asset management of the partnership properties. We are delighted to have created this relationship with GPE which will enable us to increase our involvement in London in partnership with a first class team. • £128 million acquisition of the Royal Opera House retail units in Covent Garden. Capital and Counties acquired in the quarter the retail element of the Royal Opera House block in London's Covent Garden for £127.5 million increasing the aggregate value of our interests in Covent Garden, which are wholly owned and directly managed, to over £620 million. This purchase is of strategic importance to our long-term plans for Covent Garden. The retail units in the Royal Opera House block are amongst the most prime in Covent Garden and the acquisition expands our ownership to encompass the northern side of the Market and James Street which serves as the "front door" to the Covent Garden Market itself. Financial position and summary The net proceeds of the transactions referred to above, combined with the £335million of equity capital raised by way of a share placing in November 2006,represent a substantial strengthening of the group's financial position in thelast six months. Liberty International's financial ratios, which include a debtto assets ratio of 36 per cent (31 December 2006 - 36 per cent), are robust andwe are well placed to continue with the measured expansion of our business andto respond to the challenges which lie ahead. These results confirm the merit of our focus on prime retail assets whosecharacteristics are steady long-term rental growth in well-establishedcompetitive locations and whose values are less cyclically volatile than manyother property classes. Furthermore, our published net asset value does notrecognise the value of the business as a whole, including for example the longlead times needed for major new developments and the skill, expertise andexperience found within Liberty International to create and then activelycontrol and manage such developments. 1 May 2007 SUMMARY OF INVESTMENT AND DEVELOPMENT PROPERTIES ----------------------------------------------------------------------------------------------------- Fair value Revaluation surplus Net rental income -------------------------- ----------------------- ----------------- 31 December 31 March £m Increase 31 March 31 March 2006 2007 2006 2007 £m £m £m £m Increase ----------------------------------------------------------------------------------------------------- UK regionalshopping centres Lakeside,Thurrock 1,289.0 1,322.7 31.2 2.4%Braehead,Glasgow 742.0 742.8 0.7 0.1%MetroCentre,Gateshead(60%) 611.5 635.6 23.6 3.8%The Harlequin,Watford 521.7 529.2 7.5 1.4%VictoriaCentre,Nottingham 438.3 447.7 9.3 2.1%Chapelfield,Norwich 345.3 345.4 4.4 1.3%CribbsCauseway,Bristol 314.5 316.8 2.3 0.7%The Potteries,Stoke-on-Trent 306.3 306.3 (0.2) (0.1)%The Glades,Bromley 281.4 284.1 2.1 0.7%The Chimes,Uxbridge 271.8 283.8 12.0 4.4%Eldon Square,Newcastle uponTyne 240.4 242.6 3.1 1.3% ------- ------- ------- ----------------- Like-for-likeincome 5,362.2 5,457.0 96.0 1.8% 54.0 60.1 11.4% Arndale,Manchester 439.6 456.2 16.5 3.8%St. David's,Cardiff 104.2 104.7 0.3 0.3%Xscape,Braehead 36.4 38.0 1.5 4.2% -------- ------- ------- ----------------- Like-for-likecapital 5,942.4 6,055.9 114.3 1.9% 57.3 66.2 15.5% Redevelopmentsand developments 192.7 202.2 (4.1) (1.9)% 1.4 1.0Disposals(MetroCentre(40%)) 407.7 - - - 4.6 4.6 -------- ------- ------- ----------------- Total UK regionalshopping centres 6,542.8 6,258.1 110.2 1.8% 63.3 71.8 13.4% -------- -------- ------- ----------------- UK non-shoppingcentre propertiesLike-for-likeincome 700.7 719.3 15.8 2.2% 8.4 8.4 - %Like-for-likeother 466.7 471.2 2.6 0.6% 0.4 4.9 ------- ------- ------- ----------------- Like-for-likecapital 1,167.4 1,190.5 18.4 1.6% 8.8 13.3 Acquisitions - 127.5 (5.4) (4.1)% - 0.1Redevelopments 123.3 138.5 11.2 8.8% 0.9 1.1Disposals - - - - 2.1 - ------- ------- ------- ---------------- Total UKnon-shoppingcentreproperties 1,290.7 1,456.5 24.2 1.7% 11.8 14.5 23.2% ------- ------- ------- ----------------- US properties*Like-for-likeincome 278.3 281.9 3.6 1.2% 4.8 4.3 1.3%Like-for-likeother 69.8 71.9 2.0 2.9% 0.3 0.7 ------- ------- ------- ----------------Like-for-likecapital 348.1 353.8 5.6 1.5% 5.1 5.0Disposals 5.5 - 0.2 0.1 - ------- ------- ------- ----------------Total USproperties 353.6 353.8 5.8 1.6% 5.2 5.0 ------- ------- ------- ----------------Totalinvestmentproperties 8,187.1 8,068.4 140.2 1.8% 80.3 91.3 13.7% ------- ------- ------- ----------------- *Like-for-like % increases are in local currency SUMMARY OF INVESTMENT AND DEVELOPMENT PROPERTIES (Continued) Property analysis by use and type-------------------------------------------------------------------------------- Fair Value Revaluation surplus-------------------------------------------------------------------------------- 31 December 31 March 2006 2007 % of total £m £m properties Increase-------------------------------------------------------------------------------- Regional shopping centres and other retailUK regional shopping centres 6,542.8 6,258.1 77.6% 1.8%UK other retail 776.0 913.5 11.3% 0.1%US regional shopping centres 121.6 124.3 1.5% 1.7%US other retail 132.2 128.5 1.6% 1.5% ------------------ ------- Total regional shoppingcentres and other retail 7,572.6 7,424.4 92.0% 1.6% ------------------ ------- OfficeUK business space 514.7 543.0 6.8% 4.4%US business space 65.8 66.7 0.8% 1.7% ------------------ -------Total office 580.5 609.7 7.6% 4.1% ------------------ ------- ResidentialUS residential 34.0 34.3 0.4% 0.8% ------------------ ------- ------------------ -------Total investment properties 8,187.1 8,068.4 100% 1.8% ------------------ ------- Analysis of UK non-shopping centres and US properties by location and type ------------------------------------------------------------------------------- Revaluation surplus Net rental income ------------------- ----------------- 31 December 31 March 31 March 31 March 31 March 2006 2007 2007 2006 2007 £m £m £m Increase £m £m ----------------------------------------------------------- ----------------- UK non-shopping centrepropertiesCapco Covent Garden 492.3 624.8 (2.4) (0.4)% 0.8 5.2Capco London 330.3 342.0 10.7 3.2% 4.3 4.2Capco Opportunities 273.1 295.1 17.7 6.4% 4.8 3.1Capco Urban 195.0 194.6 (1.8) (0.9)% 1.9 2.0 ----------------------------- ---------------- Total UK non-shoppingcentre properties 1,290.7 1,456.5 24.2 1.7% 11.8 14.5 ----------------------------- ---------------- US propertiesUS retail 253.8 252.8 4.4 1.6% 4.2 3.7US business space 65.8 66.7 1.1 1.7% 1.0 1.0US residential 34.0 34.3 0.3 0.8% - 0.3 ----------------------------- ---------------Total US properties 353.6 353.8 5.8 1.6% 5.2 5.0 ----------------------------- --------------- 1,644.3 1,810.3 30.0 1.7% 17.0 19.5 ----------------------------- --------------- SUMMARY OF INVESTMENT AND DEVELOPMENT PROPERTIES (Continued) UK investment property valuation data------------------------------------------------------------------------------------- Nominal equivalent yield Fair Value ------------------------ Passing Net rental ERV rent income 31 March 31 December 31 March 31 March 31 March 31 March 2007 2006 2007 2007 2007 2007 £m £m £m £m------------------------------------------------------------------------------------- UK regional shoppingcentresLakeside, Thurrock 1,322.7 4.65% 4.55%Braehead, Glasgow 742.8 4.81% 4.81%MetroCentre, Gateshead 635.6 4.75% 4.62%The Harlequin, Watford 529.2 4.75% 4.70%Arndale, Manchester 456.2 4.96% 4.86%Victoria Centre, 447.7 4.95% 4.85%NottinghamChapelfield, Norwich 345.4 5.00% 4.95%Cribbs Causeway, Bristol 316.8 4.74% 4.72%The Potteries, 306.3 5.00% 5.00%Stoke-on-TrentThe Glades, Bromley 284.1 4.95% 4.95%The Chimes, Uxbridge 283.8 5.00% 4.90%Eldon Square, Newcastleupon Tyne 242.6 5.20% 5.10% St. David's, Cardiff 104.7 5.00% 5.00%Xscape, Braehead 38.0 6.04% 5.87% -------Like-for-like capital 6,055.9 4.83% 4.78% 237.9 66.2 299.5Other 202.2 4.8 5.6 5.1 ------- -------------------------Total UK regional shopping centres 6,258.1 4.83% 4.78% 242.7 71.8 304.6 ------- ------------------------- UK non-shopping centrepropertiesCapco Covent Garden 497.1 4.56% 4.54%Capco London 313.6 5.01% 5.04%Capco Opportunities 216.9 5.80% 5.82%Capco Urban 162.9 5.15% 5.19% -------Like-for-like capital 1,190.5 4.99% 5.00% 51.4 13.3 65.8Other 266.0 5.4 1.2 10.6 ------- ------------------------Total UK non-shoppingcentre properties 1,456.5 5.11% 5.03% 56.8 14.5 76.4 ------- ------------------------ INCOME STATEMENT (Unaudited) -------------------------------------------------------------------------------- Three Three months months Year ended ended ended 31 March 31 March 31 December 2007 2006 2006 Notes £m £m £m-------------------------------------------------------------------------------- UK shopping centres 71.8 63.3 272.0Other commercial properties 19.5 17.0 68.6--------------------------------------------------------------------------------Net rental income 91.3 80.3 340.6 Other income 0.4 0.1 2.0-------------------------------------------------------------------------------- 91.7 80.4 342.6Administration expenses (7.4) (8.5) (34.2)--------------------------------------------------------------------------------Operating profit (underlying)* 84.3 71.9 308.4--------------------------------------------------------------------------------Interest payable 2 (49.7) (44.7) (190.0)Interest receivable 1.3 0.8 3.9--------------------------------------------------------------------------------Net finance costs (underlying) (48.4) (43.9) (186.1)-------------------------------------------------------------------------------- Profit before tax (underlying)* 35.9 28.0 122.3 --------------------------------------------------------------------------------Tax on profit (underlying) (0.5) (7.0) (7.4)--------------------------------------------------------------------------------Profit for the period (underlying)* 35.4 21.0 114.9--------------------------------------------------------------------------------Adjusted earnings per share 7 9.8p 6.4p 33.9p-------------------------------------------------------------------------------- Profit before tax (underlying)* 35.9 122.3 Property trading profits - 32.8Gains on revaluation and sale ofinvestment properties 156.3 586.5 Movement in fair value of derivativefinancial instruments 109.2 163.5Exceptional finance costs (8.3) (2.0)-------------------------------------------------------------------------------- Profit before tax 293.1 903.1Tax (20.4) 661.0--------------------------------------------------------------------------------Profit for the period attributableto equity shareholders 272.7 1,564.1-------------------------------------------------------------------------------- * before property trading, valuation and exceptional items CONSOLIDATED BALANCE SHEET (Unaudited) -------------------------------------------------------------------------------- As at 31 As at 31 March December 2007 2006 Notes £m £m--------------------------------------------------------------------------------Non-current assetsInvestment and development property 3 8,068.4 8,187.1Plant and equipment 0.9 0.9Investments 7.5 -Trade and other receivables 5 101.0 81.4 ------------------------------------------------------------------------------- 8,177.8 8,269.4-------------------------------------------------------------------------------- Current assetsTrading properties 4 47.7 45.2Trade and other receivables 5 311.5 113.8Cash and cash equivalents 60.5 321.8-------------------------------------------------------------------------------- 419.7 480.8--------------------------------------------------------------------------------Total assets 8,597.5 8,750.2-------------------------------------------------------------------------------- Current liabilitiesTrade and other payables (230.1) (319.5)Tax liabilities (0.2) (2.1)Borrowings, including finance leases 6 (152.8) (43.5)Derivative financial instruments (2.0) (4.6)-------------------------------------------------------------------------------- (385.1) (369.7)-------------------------------------------------------------------------------- Non-current liabilitiesBorrowings, including finance leases 6 (2,951.1) (3,341.3)Derivative financial instruments (43.0) (128.9)Deferred tax provision (62.3) (40.8)Other provisions (3.7) (4.9)Other payables (143.8) (132.2)-------------------------------------------------------------------------------- (3,203.9) (3,648.1)-------------------------------------------------------------------------------- Total liabilities (3,589.0) (4,017.8)--------------------------------------------------------------------------------Net assets 5,008.5 4,732.4-------------------------------------------------------------------------------- EquityCalled up share capital and reserves 8 5,008.5 4,732.4-------------------------------------------------------------------------------- Diluted, adjusted net assets per share 7 1376p 1327pBasic net assets per share 7 1384p 1308p-------------------------------------------------------------------------------- NOTES 1 Basis of preparation The Quarterly Report is unaudited and does not constitute statutory accountswithin the meaning of s240 of the Companies Act 1985. The auditor's opinion onthe statutory accounts for the year ended 2006, which were prepared inaccordance with International Financial Reporting Standards as adopted by theEuropean Union ("IFRS"), IFRIC interpretations and with those parts of theCompanies Act, 1985 applicable to companies reporting under IFRS, wasunqualified and did not contain a statement made under s237 (2) or s237(3) ofthe Companies Act 1985. The financial information has been prepared using the accounting policies setout on pages 42 and 43 of the Group's Annual report for 2006. 2 Finance costs ------------------------------------------------------------------------------- Three Three months months 31 Year ended 31 March ended 31 March ended December 2007 2006 2006 £m £m £m ------------------------------------------------------------------------------- Gross interest payable -recurring 52.8 47.2 198.6Interest capitalised ondevelopments (3.1) (2.5) (8.6) ------------------------------------------------------------------------------- Interest payable 49.7 44.7 190.0 ------------------------------------------------------------------------------- 3 Investment and development property-------------------------------------------------------------------------------- UK Other shopping commercial centres properties Total £m £m £m-------------------------------------------------------------------------------At 31 December 2006 6,542.8 1,644.3 8,187.1Additions 17.6 142.8 160.4Disposals (412.5) (5.6) (418.1)Foreign exchange fluctuations - (1.2) (1.2)Surplus on valuation 110.2 30.0 140.2--------------------------------------------------------------------------------At 31 March 2007 6,258.1 1,810.3 8,068.4-------------------------------------------------------------------------------- The group's interests in investment and development properties were valued as at31 December 2006 and 31 March 2007 by independent external valuers in accordancewith the Appraisal and Valuation Manual of RICS on the basis of market value.Market value represents the figure that would appear in a hypothetical contractof sale between a willing buyer and a willing seller. 4 Trading properties The estimated replacement cost of trading properties based on market valueamounted to £52.6 million (31 December 2006 - £49.9 million). 5 Trade and other receivables-------------------------------------------------------------------------------- As at 31 As at 31 March December 2007 2006 £m £m -------------------------------------------------------------------------------- Amounts falling due within one year:Rents receivable 21.1 26.1Derivative financial instruments 10.9 7.0Other receivables* 236.6 42.3Prepayments and accrued income 42.9 38.4-------------------------------------------------------------------------------- 311.5 113.8-------------------------------------------------------------------------------- Amounts falling due after more than oneyear:Derivative financial instruments 32.0 14.0Other receivables 12.8 12.2Prepayments and accrued income 56.2 55.2-------------------------------------------------------------------------------- 101.0 81.4--------------------------------------------------------------------------------*31 March 2007 includes £212.2 million receivable in respect of the partdisposal of MetroCentre, Gateshead. 6 Borrowings, including finance leases-------------------------------------------------------------------------------- As at 31 As at 31 March December 2007 2006 £m £m--------------------------------------------------------------------------------Amounts falling due within one year 152.8 43.5Amounts falling due after more than one year 2,951.1 3,341.3--------------------------------------------------------------------------------Total borrowings, including finance leases 3,103.9 3,384.8Cash and cash equivalents (60.5) (321.8)-------------------------------------------------------------------------------- Net borrowings 3,043.4 3,063.0--------------------------------------------------------------------------------See below for details of interest rate hedging arrangements Fair value of financial instruments-------------------------------------------------------------------------------- As at 31 March 2007 As at 31 December 2006 ------------------- ---------------------- Balance Balance sheet value Fair value sheet value Fair value £m £m £m £m ------------------------------------------------------------------------------ Debentures and other fixedrate loansSterlingC&C 5.562% debenture 2027 225.8 345.0 225.8 348.8CSC 6.875% unsecuredbonds 2013 26.6 26.2 26.5 25.4CSC 5.75% unsecuredbonds 2009 41.4 40.4 41.3 42.0US dollarsFixed rate loans 158.1 159.8 164.0 169.1-------------------------------------------------------------------------------- 451.9 571.4 457.6 585.3Floating rate and otherloans 2,542.5 2,542.5 2,818.5 2,818.5-------------------------------------------------------------------------------- 2,994.4 3,113.9 3,276.1 3,403.8Convertible bonds -fixed rate 109.5 174.4 108.7 195.4-------------------------------------------------------------------------------- Total borrowings 3,103.9 3,288.3 3,384.8 3,599.2------------------------------------------------------------------------------- The adjustment in respect of the above, after credit for tax relief, to thediluted net assets per share (which does not require adjustment for the fairvalue of convertible bonds) would amount to 22p per share (31 December 2006 -24p). All other financial assets and liabilities included in the balance sheet arestated at fair values. Derivative financial instruments-------------------------------------------------------------------------------- As at As at 31 March 31 December 2007 2006 £m £m-------------------------------------------------------------------------------- Non current assets (note 5) 32.0 14.0Current assets (note 5) 10.9 7.0Current liabilities (2.0) (4.6)Non-current liabilities (43.0) (128.9)-------------------------------------------------------------------------------- (2.1) (112.5)-------------------------------------------------------------------------------- Interest rate swaps-------------------------------------------------------------------------------- Notional principal Average contracted rate -------------------------------------------------------------------------------- 31 March 31 December 31 March 31 December 2007 2006 2007 2006 £m £m % % Effective after:1 year 2,642 3,055 5.31 5.315 years 2,818 3,153 5.10 5.1610 years 2,350 2,075 4.68 4.7515 years 2,025 1,750 4.57 4.6320 years 2,025 1,750 4.57 4.6325 years 1,550 1,275 4.38 4.43-------------------------------------------------------------------------------- 7 Per share details (a) Earnings per share-------------------------------------------------------------------------------- Three Three Year months months ended ended ended 31 December 31 March 31 March 2006 2007 2006 £m £m £m -------------------------------------------------------------------------------- Earnings used for calculation of underlyingearnings per share 35.4 21.0 114.9Property trading profits - 0.4 (0.3)-------------------------------------------------------------------------------- Earnings used for calculation of adjustedearnings per share 35.4 21.4 114.6-------------------------------------------------------------------------------- -------------------------------------------------------------------------------- As at 31 As at 31 As at 31 March March December 2007 2006 2006 Number Number Number millions millions millions-------------------------------------------------------------------------------- Weighted average sharesin issue 362.8 337.8 340.0Weighted averagesshares held by ESOP (1.1) (2.4) (1.5)--------------------------------------------------------------------------------Weighted average shares used forcalculation of underlying andadjusted earnings per share 361.7 335.4 338.5-------------------------------------------------------------------------------- (b) Net assets per share ------------------------------------------------------------------------------- As at 31 As at 31 March December 2007 2006 £m £m ------------------------------------------------------------------------------- Basic net asset value 5,008.5 4,732.4Fair value of derivativefinancial instruments (net of tax) (9.8) 80.4Deferred tax on revaluation surpluses 34.1 32.1Deferred tax on capital allowances 31.3 31.8Unrecognised surplus ontrading properties (net of tax) 4.9 4.7-------------------------------------------------------------------------------- 5,069.0 4,881.4Effect of dilution:On conversion of bonds 109.5 108.7On exercise of options 11.6 12.3--------------------------------------------------------------------------------Diluted net asset value 5,190.1 5,002.4-------------------------------------------------------------------------------- ------------------------------------------------------------------------------- As at 31 As at 31 March 2007 December 2006 Number Number millions millions ------------------------------------------------------------------------------- Shares in issue, excludingthose held by ESOP trust andtreated as cancelled 361.8 361.7Effect of dilution:On conversion of bonds 13.9 13.9On exercise of options 1.4 1.5-------------------------------------------------------------------------------- Diluted shares in issue 377.1 377.1-------------------------------------------------------------------------------- (c) Convertible debt 3.95 per cent convertible bonds due 2010 At 31 March 2007 and 31 December 2006 3.95 per cent convertible bonds with anominal value of £111.3 million were in issue. The holders of the 3.95 per cent bonds have the option to convert their bondsinto ordinary shares at any time on or up to 23 September 2010 at 800p perordinary share. The 3.95 per cent bonds may be redeemed at par at the company'soption after 14 October 2008. 8 Summary of changes in equity ------------------------------------------------------------------------------- Three months Year ended 31 ended 31 March 2007 December 2006 £m £m -------------------------------------------------------------------------------Opening equityshareholders'funds 4,732.4 2,933.1Issue of shares 1.1 342.4Cancellationof shares - (1.0)-------------------------------------------------------------------------------- 4,733.5 3,274.5 ------------------------------------------------------------------------------- Underlying profit for theperiod 35.4 114.9Trading, valuation andexceptional items and related tax 237.3 1,449.2-------------------------------------------------------------------------------- Profit for the period 272.7 1,564.1Actuarial gains on defined benefit pension schemes - 0.7Tax on items taken directly to equity - (4.9)Net exchange translation differencesand other movements 2.3 (4.6)-------------------------------------------------------------------------------- Total recognised income and expense for the period 275.0 1,555.3-------------------------------------------------------------------------------- 5,008.5 4,829.8Dividends paid - (97.4)-------------------------------------------------------------------------------- Closing equity shareholders'funds 5,008.5 4,732.4 ------------------------------------------------------------------------------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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