21st Feb 2007 07:01
Terrace Hill Group PLC21 February 2007 21 February 2007 Terrace Hill Group PLC ('Terrace Hill' or 'the group') Preliminary Announcement of Results for the year to 31 October 2006 Terrace Hill Group PLC, the AIM listed property group, announces its results forthe year ended 31 October 2006. Highlights • Adjusted diluted NAV (ADNAV) increased 62.8% to 89.0p per share (2005: 54.6p per share) • Total shareholders return (TSR) for the year was 95.0%, and on an internal rate of return (IRR) basis the TSR since October 2002 was 57.7% per annum • Final dividend of 1.1p per share being recommended - total dividend for the year 1.8p per share - up 50.0% • First external development fund launched - 10 schemes in joint ventures with a total end value of £256 million • at.home Nationwide residential portfolio purchased in partnership for £272.6 million - areas identified for improved performance within the portfolio • Series of financial development joint ventures formed providing greatly enhanced returns on equity • Housebuilding subsidiary created with highly experienced management - landbank capable of developing at least 1,200 units • Total completed value of commercial development and investment programme is £1.072 billion (2005: £820 million) • Increased fee income to £2.3 million (2005: £1.3 million), largely generated from development management fees from joint ventures and the new development fund • Financial results demonstrate excellent year for the group - current trading continuing trend Chairman's Statement In 1986 I formed Terrace Hill as a small property company in central London. Nowin our 20th year of successful trading, I am pleased to announce another set ofexcellent results for the year to 31 October 2006. Our adjusted diluted netasset value (ADNAV) has increased by an exceptional 62.8% to 89.0p per share(2005: 54.6p per share) in the year showing impressive returns on shareholders'capital employed in the business. The triple net asset value (TNAV), which iscalculated by deducting from ADNAV the deferred tax on the revaluation of theinvestment properties and contingent tax liability on the gains from tradingproperties, has increased by 50.9% to 73.6p per share (2005: 48.8p per share).This significantly exceeded our target of growing the value of the business by20-25% per annum. Our average growth in TNAV since 2003 has been 27.2% perannum. Profits before tax are £4.7 million (2005: £4.2 million). It is the nature ofour business that accounting profits vary from year to year depending on thetiming of disposals and for this reason we focus on the growth of our ADNAV as amore appropriate reflection of the performance of the company. These excellent results enable the continuation of our progressive dividendpolicy and the board is recommending a final dividend of 1.1p per share to bepaid on 30 March 2007. Taken with the interim dividend of 0.7p per share paid inAugust 2006 the total dividend in respect of the year to 31 October 2006 will be1.8p per share, an increase of 50.0% over last year's figure. We intend tomaintain a progressive dividend policy. Our total shareholder return (TSR) for the year was 95.0%, and on an internalrate of return (IRR) basis the TSR since October 2002 has been 57.7% per annum.TSR is the growth in the ordinary share price as quoted on the London StockExchange plus dividends received for the period expressed as a percentage of theshare price at the beginning of the period. We remain focused on UK property development and investment with a strongregional presence, through our four offices, exploiting opportunities that arisein local markets. Using our detailed and in depth local knowledge we createvalue by a combination of our development skills, efficient and flexiblefinancing and vigorous asset management. Above all we apply extreme care and attention to detail at every level of ourbusiness with skilled management and exceptional teamwork, acting nimbly toallocate and reallocate capital across sectors and types of property. A selection of operational highlights for the year include the launch of ourfirst external development fund, the purchase of the at.home Nationwideresidential portfolio, in partnership, for just over £272.6 million and theformation of a series of financial development joint ventures providing greatlyenhanced returns on equity. This is in addition to the ongoing success of ourcore commercial development programme where significant progress has been madein terms of new lettings, sales of mature assets and the acquisition of newsites. The total completed value of our current commercial development andinvestment programme is £1.072 billion (2005: £820 million). The underlying strength of the UK property market appears to remain robust. Inthe commercial market we foresee some levelling off of investment yields butfurther growth in rental values in selected sectors and locations, particularlyoffices. The market's anticipated reduction in total returns from commercialinvestment property, as a result of lower capital growth, has encouraged anumber of investors to seek out the higher returns achievable from commercialdevelopment. These investors do not possess the requisite development skills tocarry out projects on their own and look to form joint ventures with partnerswho have a proven track record in carrying out successful developments. This has increased the appetite for joint venture development opportunities andhas allowed us to command increasingly attractive financial returns from ourpartnerships. In the residential market, most commentators are predicting further growthduring the year ahead. Within our fledgling Scottish housebuilding business, we now have a fullmanagement team employed in a wholly-owned subsidiary. We continue to acquiresites judiciously and to complement the existing landbank, which now has thecapacity for over 1,200 units. It had previously been our intention to demergethis business as a separate AIM listed company early in 2007. However, we nowbelieve more value will accrue to shareholders by delaying the demerger andgrowing the business further within Terrace Hill. We intend to continue to addto the landbank and build a strong trading track record, both of which willundoubtedly increase the value on the demerger of the business. It has been our stated aim to increase our fee income. In the year to October2006 this amounted to £2.3 million (2005: £1.3 million) and has largely beengenerated from development management fees from our joint ventures and the newdevelopment fund. These are paid during the development process, independent ofthe financial performance of the project. We expect this income to growsignificantly through 2007 and beyond as our commercial development programmeexpands and we increase our joint venture opportunities. The most important factor in our success is the dedication, professionalism andentrepreneurial flair of our personnel and during the year we introduced a LongTerm Incentive Plan (LTIP) to provide further incentive to management. Wecontinue to strengthen our team, and we are pleased to welcome Nicky Wilden asour new corporate Finance Director, who comes with an enviable track record ofcorporate and structured finance in the property sector. We have great confidence in our continuing ability to deliver enhanced returnsto our shareholders. Robert F M AdairChairman21 February 2007 Review of operations Business modelOur business model is based on utilising the local knowledge of our regionaloffices to exploit opportunities arising in local markets across the UK. Thisregional strength coupled with astute financial structures helps us keep aheadof our competitors and generate above average risk weighted returns for ourshareholders. Commercial developmentThe geographic diversification provided to us by our regional offices, alongwith sector selection, is important. We have a total current and pendingcommercial development programme of £1.053 billion, by end value. Of this £915.7million (86.9%) is in the office sector which is currently showing the highestrates of rental growth and occupier demand of all the sectors. Our exposure toretail development, totalling £91.5 million (8.7%), is virtually all in theretail warehouse sector where work does not commence until schemes aresubstantially pre-let. In the industrial and distribution sectors (£46.2million, 4.4%), we aim to operate in regions where there is strong supply/demandimbalance sustaining values, for example in the South East for industrial andWest Midlands for distribution. The outlook for commercial development remains strong with good occupier demandin selected sectors. Of the developments on site at our year end, 40.2% by valuewas pre-let or under offer to occupiers. We carry out most of our developments in joint ventures where our returns areenhanced through performance related profit shares and also developmentmanagement fees, which are independent of the financial performance of thedevelopments. An example of this is the Terrace Hill Development Partnership(THDP) which closed in April 2006. We expect our internal rate of return (IRR)to be in the region of 153% per annum from this fund, including developmentmanagement fees in excess of £1 million. At the year end we held ten schemes in joint ventures with a total end value of£256 million. I set out below a selection of some of the achievements during the year in ourcommercial development programme. • Temple Circus, Bristol was successfully completed. This 90,000 sq ft city centre office headquarters had been pre-sold to Stonemartin PLC for £25.8 million. • Time Central, the 83,000 sq ft office development at Gallowgate in Newcastle city centre, was fully pre-let a year ahead of completion with lettings to regional law firm Robert Muckle LLP and stockbrokers Brewin Dolphin. Since the year end, this development has been forward sold to clients of F & C for £32.5 million (4.52% net initial yield). We believe this is a record yield for a Newcastle office investment. • At Baltic Business Quarter, Gateshead, we started the construction of a new turnkey facility for Gateshead College which will comprise 180,000 sq ft of new education facility at a cost of £25.0 million. • New retail warehouse developments commenced at Blyth and Galashiels following substantial pre-letting of both schemes with bulky goods and open A1 planning consents respectively. They have both been forward sold and funded by Morley for a total of £27.8 million at net initial yields of 5.15% and 4.75%. • Cyprium, our two phase 70,000 sq ft office development at Swansea Waterfront was completed and fully let to the Welsh Development Agency who subsequently sub-let the scheme to Admiral Insurance Plc. The investment was sold to a private investor for £16.7 million reflecting a yield of 4.89%. • Construction has progressed well at 129 Wilton Road in Victoria, where occupational demand in the office sector has seen rents move ahead rapidly. This rental growth, combined with significant yield compression since we purchased the site, points towards returns far exceeding our original expectations from the development. Since the year end all 32 affordable and private residential units have been forward sold. • At Vanwall Business Park, Maidenhead we completed the purchase of an office development site from Abbott Laboratories, having previously submitted a planning application almost doubling the amount of built space on the site. The site has been transferred into a joint venture which allows us to receive the benefit of a substantial profit from the increased value of the site following the receipt of planning. We have a 20% equity interest in the joint venture in a development agreement which allows us to earn at least 50% of the development profits as well as development management fees. Planning has been obtained since the year end. • At Pinewood, Wokingham a planning application was submitted for a 200,000 sq ft office headquarters for Johnson & Johnson Medical UK which we will develop on a turnkey basis. Since the year end planning consent has been obtained which, under the development arrangements, will allow us to crystallise a profit from the enhanced site value as well as earn development management fees. • At Kean House in Covent Garden, we commenced refurbishment of a 24,600 sq ft office building with ground floor retail. The scheme will have a completed value of approximately £20.8 million and is due for completion in Summer 2007. Tenant demand for mid town offices is strengthening as a result of shortages of available space in the core West End market. • The group has purchased an option to acquire a prominent office development site overlooking the river Thames at Hammersmith. Located close to Hammersmith Bridge, the site has potential to accommodate a new office building of 110,000 sq ft with retail units fronting a new riverside walkway. We expect construction to commence in 2008 and the scheme will have a completed value of around £63.7 million. • Other notable transactions include the sale of industrial units in Tunbridge Wells, Crawley, Eastbourne, Farnborough and Thanet totalling £20.4 million, obtaining outline planning for 85,500 sq ft of retail at Bishop Auckland, the sale of a mixed-use residential and retail scheme in Hull, the completion of Stockton Riverside College Phase 2 and the sale of an office refurbishment in Watford for £7.0 million. Since the year end we have: • Acquired, in joint venture, House of Fraser's office headquarters in Victoria, London with a view to redeveloping the site for new offices and residential units with a prospective end value of £180 million. • Acquired a 16.5 acre mixed-use and retail warehouse site in Middlesbrough with an existing planning consent for 63,000 sq ft which we believe we can expand to over 90,000 sq ft. • At our site at George Street, Croydon we have submitted a planning application for a 204,000 sq ft office scheme where we expect to start construction in late 2007. • We have been appointed preferred developer by Persimmon Homes to develop an 80 acre business park, to be known as Weston Park, on the old Weston airfield close to Junction 21 of the M5. The development will comprise around one million sq ft of commercial space and associated leisure and hotel facilities. • Acquired Canningford House a multi-let city centre office building in Victoria Street, Bristol. We are making good progress in assembling a landbank of sites in various stagesof the site assembly, planning and development process which will provide a longterm development pipeline and sustain future returns to shareholders. Wecontinue to explore new geographic areas for business growth and are optimisticof securing substantial opportunities in the North West during 2007. Commercial fund managementIn April, we closed on our first external fund launch, the Terrace HillDevelopment Partnership (THDP). The fund was seeded with seven development siteswith an aggregate sales value of over £90 million and allows investors access toTerrace Hill's diversified commercial development programme, including offices,retail, industrial and trade counter schemes across the UK. The fund developsschemes with completed development values of between £5 million - £20 millionand has a four year investment period. Terrace Hill has provided 20% of the equity in the fund and expect to receiveover 40% of the development profit as well as development management fees inexcess of £1 million. Residential fund managementIn July we substantially completed the acquisition of the at.home Nationwideportfolio in a partnership with the group holding a 49% interest. Of the other51%, 49% is held by the Skye Investments group and 2% by our Chairman, RobertAdair. Skye Investments Limited is a company ultimately owned by family trusts,for the benefit of Robert Adair and family. The portfolio consists, in total, of2,253 units throughout England and Scotland, principally let on assuredshorthold tenancies, and the agreed purchase price was £272.6 million. The valueof the transferred properties at the year end was £307.0 million and a smallnumber of properties remain to be transferred once specific conveyancing issuesare resolved. The portfolio was historically managed in-house by a subsidiary of Nationwide.The property management business (including staff) was transferred to AllsopResidential Investment Management who continue to carry out the day to daymanagement and letting of the properties under a new subsidiary, trading as UKHome Lets (www.ahn.co.uk). We have identified several areas for improving theperformance of the portfolio, including reducing voids and maintenance costs andincreasing rental levels. We are actively managing the portfolio and are currently in the process ofdisposing of some non-core properties. We are also investigating whether itwould be beneficial for Terrace Hill to transfer the majority of the portfoliointo a residential investment fund. Our remaining core portfolio of 330 units was valued at the year end at £37.2million and sales of selected stock are ongoing. The high quality of our residential investments and the low average value(£140,500 per unit) gives us confidence that they are less susceptible to houseprice volatility than poorer located or higher unit value stock. We foreseereasonable increases in the value of the portfolio over the coming year. Housebuilding and land developmentWe have created a wholly owned housebuilding subsidiary with its own highlyexperienced management to carry forward our housebuilding and land developmentbusiness in Scotland. During the course of the year we have acquired new sites at Patna (Ayrshire) andAyr town centre and we now have a landbank capable of developing at least 1,200units (or 200 units per year from 2008 onwards). The housebuilding strategy is principally to acquire brownfield sites which willshow a good uplift in value on planning and create large and sustainablemargins. The focus is predominantly in the West of Scotland in areas where thereis good potential for growth. The strategy is to exploit opportunities as theyarise but generally to avoid high value apartment developments in Glasgow andEdinburgh and to aim at the middle family market. Our aim is to achieve aturnover of 500 units per year within a five to six year period. Corporate social responsibilityAs a leading property investment and development company involved in theacquisition, development and management of commercial and residentialproperties, the board recognises that our business activities have both a directand indirect impact on the communities, environment and economies within whichwe operate. Our policy is implemented through an internal management system that supportstargeting and achieving continuous improvements in our environmentalperformance. Environmental policyThe group is committed to maintaining high environmental standards in all itsoperations and to minimise the impact of its activities on the surroundingenvironment. The nature of the work that Terrace Hill is involved in, means thatthe group has an opportunity, not only to minimise the negative impact on theenvironment, but also to enhance and improve the environment in which we alllive and work. The group's policy is to minimise the risk of any adverse affect on theenvironment associated with its development activities, through the thoughtfulconsideration of such key areas of focus as energy use, pollution, transport,land use, ecology, renewable resources, health and wellbeing. Terrace Hill also aims to ensure that its contractors meet with theirlegislative and regulatory requirements and that codes of best practice are metand exceeded. The group's London office has recently had a review of its work practices froman environmental perspective. The action points from this, which are beingprogressed, include waste and paper recycling, as well as encouraging a greentransport policy. Notable examples of where our practices reflect our environmental aims include:the use of a ground source heat pump system for heating and cooling at ouroffice scheme in Victoria where we are seeking to achieve 10% renewable energy;improving energy saving by increasing rooflight coverage from 10% to 15% at ourhigh bay warehouse at Redditch; and the development of a new M&S Simply Food "green" store at our Galashiels retail warehouse park which will be their firstcarbon neutral store. Local communityWe actively promote public realm art in the community. We have recentlycommissioned sculptures at Middlehaven in the North East and at Temple Circus inBristol. Philip LeechGroup Managing Director21 February 2007 Financial review Basis of accountingThe key 2006 figures are summarised in the highlights. These have been preparedunder UK financial reporting standards (UK GAAP). This will be the last yearthat the group's results will be prepared on this basis. All AIM listedcompanies will be required to adopt International Financial Reporting Standards(IFRS) for periods commencing on or after 1 January 2007. However, we havedecided to adopt IFRS a year earlier than required and will present our resultsfor the year ending 31 October 2007 under these regulations. The Balance Sheet at 31 October 2005 has been restated to reflect the accountingtreatment of dividends paid by FRS 21 Events after the Balance Sheet Date. Thisrequires the final dividend to be accounted for in the year in which it isactually declared rather than accrued as a liability at the year end. International Financial Reporting StandardsThe application of IFRS will not affect the economic value of the business butit will lead to differences in the level of profits and net assets reported. The principal adjustments to convert UK GAAP to IFRS are: • Valuation surpluses or deficits on investment properties during the year will be reported in the Income Statement rather than as a movement in the revaluation reserve. • The capital gains tax that would be payable if the investment properties were sold at their current Balance Sheet valuation will be included in the Balance Sheet as a deferred tax liability. Previously this has been disclosed only as a note to the accounts. • Lease incentives granted to tenants will be amortised over the longer period to lease expiry rather than to the next rent review. Whilst it is believed these figures will be our comparative results in ourreport for next year, the interpretation of IFRS continues to evolve and thismay lead to changes when the 2007 figures are published. Adjusted diluted net asset value (ADNAV)In line with many publicly quoted property companies we have chosen to highlightADNAV as the principal measure of the group's performance, publishing thisfigure for the current and the previous year. The following adjustments are madeto the audited net asset value in arriving at our ADNAV: (1) Property revaluation: properties and rights to properties held as current assets are revalued from cost (or realisable value if less) to market value. The valuation has been performed by relevant directors qualified as chartered surveyors based on advice from CB Richard Ellis and takes account of development costs to complete and whether or not the property has been let and/or sold. (2) Share dilution: the nominal value of shares to be issued under the employee long term incentive plan is added to net assets. We also include a Triple Net Asset Value (TNAV) figure in our Annual Report. Thefollowing adjustments are made to ADNAV in arriving at our TNAV: (3) Taxation: the amount of taxation which would be payable were all of the group's properties to be sold at the value used for the ADNAV calculation has been deducted. This includes deferred tax that would be payable on the sale of investment properties and additional taxation estimated to be payable on realisation of the uplift of trading properties to market value. (4) Goodwill: positive and negative goodwill is excluded. Profit and Loss AccountTurnover in the period including our share of joint ventures was £80.6 million(2005: £28.1 million) an increase of 186%. Group operating profit at £7.8 million is up from £3.9 million in 2005, anincrease of 100%. The operating profit margins for this year and 2005 were 9.7%and 14.7% respectively. The profit margin for the year has been reduced by the acquisition of a propertyin Maidenhead and its simultaneous sale at cost (£9.3 million). Additionalconsideration of £8.5 million has been earned since the year end following thereceipt of planning and will be reflected in next year's profit. Our investment in associated undertakings produced a loss for the year. This isprimarily due to our investment in Terrace Hill Residential PLC the company thatacquired the at.home Nationwide residential portfolio. Our share of the companyis 49% and that contributed £0.8 million of the £0.9 million loss shown on theProfit and Loss Account. In our Statement of Recognised Gains and Losses we haveincluded our share of the unrealised surplus arising from the revaluation of theportfolio amounting to £21.9 million. The other significant difference betweenprofit in 2006 and 2005 is the profit on sale of investment properties which was£0.2 million in 2006 compared with £3.5 million for 2005. Profit before tax forthe period was £4.7 million (2005: £4.2 million) an increase of 12%. Balance SheetTotal group assets were £216.7 million (2005: £173.4 million) an increase of25.0%. The net assets at the end of the year after deducting minority interests were£107 million (2005: £78 million) an increase of 37.2%. Of significance is the move away from 100% ownership of our properties whethertrading or investment. Through our investment in the Terrace Hill DevelopmentPartnership and other funds, all accounted for as associates, we participate indevelopment schemes with an end value of £256 million while our equity islimited to £9.1 million. The single most significant transaction affecting the Balance Sheet was ourshare of the acquisition of the at.home Nationwide residential investmentportfolio. Our share of the acquisition was 49% and that contributed to anincrease in investment in associates and revaluation reserve at the year end of£21.9 million. GearingBank debt at the year end was £70.4 million (2005: £66 million) net of cash of£8.6 million (2005: £12 million). This represented 66% of equity (2005: 86.5%).Of this 60.8% (2005: 49.7%) was with limited or no recourse to the parentcompany. The bank debt primarily relates to the group's development assets which aregenerally held for relatively short periods, hence the group is not exposed tomedium or longer term movements in interest rates. Interest rate hedging is inplace for much of the debt used to finance the acquisition of the at.homeNationwide residential investment portfolio. The group had £28 million of undrawn bank facilities at the year end. DividendsDividends paid in the year being the final dividend of 0.7p for 2005 and theinterim dividend of 0.7p for 2006 amounted to 1.4p per share (2005: 1.2prestated) and in accordance with FRS 21 these have been accounted for throughreserve movement rather than in the Profit and Loss Account. The board isrecommending to shareholders at the Annual General Meeting on 30 March 2007 afinal dividend of 1.1p per share, making a total dividend for the year of 1.8p.The final dividend will be paid on 30 March 2007 to all shareholders on theregister of the company as at 16 March 2007. Earnings per shareBasic earnings per share was 2.15p, up from 1.86p in 2005, an increase of 15.6%.Diluted earnings per share was 2.11p, also up from 1.86p in 2005, an increase of13.4%. Total Shareholder Return (TSR)The table below shows the TSR to the shareholders since 31 October 2002. On aninternal rate of return (IRR) basis the TSR since October 2002 was 57.7% perannum while the total TSR since that date is 504%. Overall our financial results demonstrate an excellent year for the group withsignificant growth in the key performance measures of ADNAV and TSR. Tom WalshGroup Finance Director21 February 2007 Calculation of ADNAV and TNAV (unaudited) Number 31.10.2006 31.10.2005 Number of 31.10.2005 31.10.2006 of shares pence per restated shares pence per Notes £'000 000s share £'000 000s share Audited net asset value 106,651 187,219 57.0 77,646 187,219 41.5 Shares to be issued under the LTIP 2 57 2,836 - -Revaluation of property held as 1 62,401 190,055 32.8 24,655 187,219 13.2current assetsAdjusted diluted net asset value 169,109 190,055 89.0 102,301 187,219 54.6% increase 62.8%Estimated taxation on revaluation 3 (25,993) 190,055 (13.7) (7,718) 187,219 (4.1)of current assets, unrealisedgains and availability of taxlossesGoodwill 4 (3,284) 190,055 (1.7) (3,287) 187,219 (1.7)Diluted TNAV 139,842 190,055 73.6 91,295 187,219 48.8% increase 50.9% Total shareholder return 2006 2005 2004 2003 Share price at end of the year 80.00p 41.75p 32.50p 25.50pShare price at start of the year 41.75p 32.50p 25.50p 13.75pMovement 38.25p 9.25p 7.00p 11.75pDividend per share 1.40p 1.00p .45p .26pTotal return 39.65p 10.25p 7.45p 12.01p% return 95.0% 31.5% 29.2% 87.4% Group profit and loss accountfor the year ended 31 October 2006 Year ended Year ended 31 October 31 October 2006 2005 £'000 £'000TurnoverGroup and share of joint venture 80,562 28,119Less: share of joint venture 69 1,269 Group turnover: continuing operations 80,493 26,850 Group operating profitContinuing operations 7,844 3,966Share of joint venture operating (loss)/profit (85) 202Share of associated undertakings operating (loss) (902) - 6,857 4,168Gain/(loss) on disposal of fixed asset investments 126 (1)Amounts written off other investments (2) (12)Net gain on disposal of investment properties 195 3,495Gain/(loss) on liquidation/disposal of subsidiaries 575 (108)Income from other fixed asset investments 193 15Interest receivable 386 637Interest payable (3,605) (3,957) Profit on ordinary activities before taxation 4,725 4,237Taxation (charge) (711) (763) Profit on ordinary activities after tax 4,014 3,474Minority interest 2 4 Profit for the financial year 4,016 3,478 Basic earnings per share 2.145p 1.864p Diluted earning per share 2.113p 1.864p All amounts relate to continuing operations. Group balance sheetat 31 October 2006 31 October 31 October 2005 2006 restated £'000 £'000Fixed assetsIntangible assetsPositive goodwill 4,149 4,465Negative goodwill (865) (1,178) 3,284 3,287Tangible assets 57,003 52,958 60,287 56,245InvestmentsJoint venture - share of gross assets 5,260 4,958Joint venture - share of gross liabilities (5,240) (4,802) 20 156Investment in associated undertakings 23,893 -Other fixed asset investments 1,409 2,599 25,322 2,755 85,609 59,000Current assetsWork in progress 75,693 89,162Debtors 46,828 13,207Cash at bank and in hand 8,591 12,052 131,112 114,421Creditors: amounts falling due within one year (49,759) (28,667) Net current assets 81,353 85,754 Total assets less current liabilities 166,962 144,754Creditors: amounts falling due after more than one year (59,997) (66,758) Net assets 106,965 77,996 Capital and reservesCalled up share capital 3,744 3,744Share premium account 19,369 19,369Revaluation reserves - investment properties 19,442 17,268Revaluation reserves - other 22,996 23Capital redemption reserve 849 849Merger reserve 8,386 8,386Profit and Loss Account 31,865 28,007 Equity shareholders' funds 106,651 77,646Minority interests 314 350 106,965 77,996 Approved by the board and authorised for issue on 21 February 2007. Notes 1. The financial information set out in this announcement does not constitute the company's statutory financial statements for the years ended 31 October 2006 and 31 October 2005. 2. The financial information is extracted from the financial statements of the group for the year ended 31 October 2006 which were approved by the board of directors on 21 February 2007. 3. Earnings per ordinary share The calculation of basic earnings per ordinary share is based on a profit of £4,015,650 (2005 profit: £3,477,834) and on 187,218,824 (2005: 186,576,536) ordinary shares, being the weighted average number of shares in issue during the period. The calculation of diluted earnings per ordinary share is based on a profit of £4,015,650 (2005 profit: £3,477,834) and on 190,055,289 (2005: 186,577,536) ordinary shares, being the weighted average number of shares in issue during the period adjusted to allow for the issue of shares in relation to all performance related share awards. 4. Copies of this announcement are available, free of charge, for a period of one month from Noble & Company Limited, 120 Old Broad Street, London EC2N 1AR. Copies of the full financial statements will be posted to shareholders as soon as possible. Contacts: Philip Leech, Terrace Hill Group PLC, 020 7631 1666 Alasdair Robinson, Noble & Company Limited, 0131 225 9677 Isabel Crossley, St Brides Media & Finance, 020 7242 4477 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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