7th Jun 2005 07:02
Quintain Estates & Development PLC07 June 2005 Quintain Estates and Development PLC Consolidated Profit and Loss Accountfor the year ended 31 March 2005 Notes 2005 2004 £000 £000 ______ _______ _______Turnover 83,738 65,200 Less - share of joint ventures' turnover 11a (5,362) (4,716) _______ _______Group turnover 2/3 78,376 60,484 Cost of sales 2 (38,703) (20,079) _______ _______Gross profit 2/3 39,673 40,405 Administrative expenses 4 (19,130) (15,959) _______ _______Group operating profit 20,543 24,446 Share of operating profit in joint ventures 3/11a 4,608 3,601 Share of operating profit in associates 3 195 274 _______ _______Total operating profit : Group and share of joint ventures and associates 25,346 28,321 Profit on sale of investment properties 3a 6,286 5,898 _______ _______Profit on ordinary activities before interest and tax 3a 31,632 34,219 Net interest payable and other similar charges 5 (15,869) (18,182) _______ _______Profit on ordinary activities before taxation 15,763 16,037 Tax on profit on ordinary activities 6 (2,354) - _______ _______Profit on ordinary activities after taxation 13,409 16,037 Equity minority interests (33) (150) _______ _______Profit for the financial year 13,376 15,887 Dividends 7 (12,261) (11,338) _______ _______Retained profit for the financial year 19 1,115 4,549 ====== ====== Earnings per share - basic 8a 10.3p 12.4p ====== ====== - diluted 8a 10.2p 12.3p ====== ====== Dividends per share - interim 7 2.75p 2.75p ====== ====== - final 7 6.75p 6.00p ====== ====== Total 7 9.50p 8.75p ====== ====== The profit and loss account has been prepared on the basis that all operationsare continuing operations. Consolidated Statement of Total Recognised Gains and Lossesfor the year ended 31 March 2005 Notes 2005 2004 £000 £000 ______ _______ _______ Profit for the financial year: Group 10,289 11,383 Joint ventures 11a 3,087 4,504 _______ _______ 13,376 15,887Unrealised surplus on revaluation of investment properties 19 113,468 69,327 Share of unrealised surplus on revaluation of investment properties held in: Joint ventures 19 6,400 4,286 Associates 19 226 822 Tax on realisation of revaluation surplus 19 (3,952) (471) Foreign exchange movement 19 127 (798) _______ _______Total recognised gains and losses relating to the 129,645 89,053financial year ====== ====== Consolidated Note of Historical Cost Profits and Lossesfor the year ended 31 March 2005 Notes 2005 2004 £000 £000 _______ _______ _______ Profit on ordinary activities before taxation 15,763 16,037 Revaluation element of short leasehold amortisation 19 139 159 Realisation of property revaluation gains of previous 19 75,953 8,820years _______ _______Historical cost profit on ordinary activities before 91,855 25,016taxation ====== ====== Historical cost profit for the year retained aftertaxation, minority interests and dividends 73,255 13,057 ====== ====== Reconciliation of Movements in Equity Shareholders' Fundsfor the year ended 31 March 2005 Notes 2005 2004 £000 £000 ______ _______ _______ Profit for the financial year 13,376 15,887 Dividends 7 (12,261) (11,338) _______ _______ 1,115 4,549 Other recognised gains and losses relating to the 116,269 73,166year Issue of shares less costs 18/19 534 2,287 Purchase of own shares for cancellation 19 (2,243) - Credit relating to Executive Directors' Performance 19 380 195Share Plan Credit relating to 2004 Unapproved Share Plan 19 232 - Investment in own shares 20 (1,539) - _______ _______Net addition to equity shareholders' funds 114,748 80,197 Opening shareholders' funds 523,513 443,316 _______ _______Closing shareholders' funds 638,261 523,513 ====== ====== Balance Sheetsas at 31 March 2005 Notes Group Group Company Company 2005 2004 2005 2004 £000 £000 £000 £000 ______ _______ _______ _______ _______Fixed assets Investment properties 3/9 742,876 797,696 - - Other tangible fixed assets 10 9,215 649 221 510 Investment in joint ventures share of gross assets 101,969 56,999 share of gross liabilities (39,946) (25,708) _______ _______ 3/11a 62,023 31,291 13,868 - Investment in associates 3/11b 1,800 5,467 75 1,368 Other fixed asset investments 11c 188 188 348,795 311,195 _______ _______ _______ _______ 816,102 835,291 362,959 313,073Current assets _______ _______ _______ _______ Stocks: trading properties 17,487 21,707 - - Debtors 12 31,920 28,843 37,011 8,256 Short term investments 13 19 19 - - Cash at bank and in hand 16a 11,744 44,168 2,527 7,313 ______ _______ _______ _______ 61,170 94,737 39,538 15,569 Creditors: amounts falling due within one year 14 (47,295) (61,587) (22,702) (80,015) _____ _______ _____ _______Net current assets (liabilities) 13,875 33,150 16,836 (64,446) ______ _______ _______ _______ Total assets less current liabilities 829,977 868,441 379,795 248,627 Creditors: amounts falling due after more than one 15 (186,359) (338,811) (165,710) (33,729)year Provisions for liabilities and charges 17 (5,117) (4,671) - - Equity minority interests (240) (1,446) - - _______ _______ _______ _______Net assets 638,261 523,513 214,085 214,898 ====== ====== ====== ======Capital and reserves Called up share capital 18 32,298 32,323 32,298 32,323 Share premium account 19 46,575 45,076 46,575 45,076 Revaluation reserve 19 311,606 267,604 - - Other capital reserves 19 112,436 112,330 108,131 108,025 Profit and loss account 19 136,885 66,180 28,620 29,474 Investment in own shares 20 (1,539) - (1,539) - _______ _______ _______ _______Equity shareholders' funds 638,261 523,513 214,085 214,898 ====== ====== ====== ====== Net asset value per share - basic 8b 495p 405p ====== ====== - diluted 8b 486p 399p ====== ====== Approved by the Board of N G Ellis DirectorDirectorsand signed on its behalf by: A R Wyatt Director 7 June 2005 Consolidated Cash Flow Statementfor the year ended 31 March 2005 Notes 2005 2004 £000 £000 ______ _______ _______ Net cash inflow from group operating activities 25a 22,060 6,656 ====== ======Dividends from joint ventures and associates 2,165 7,871 ====== ======Returns on investments and servicing of finance Interest received 1,127 911 Interest paid (18,523) (19,239) Issue costs of loans (2,858) (389) ________ ________Net cash outflow from return on investments and servicing of finance (20,254) (18,717) ======= ======= Corporation tax paid (1,560) (66) ======= =======Capital expenditure and financial investment Purchase of tangible fixed assets (119,622) (63,760) Proceeds from disposal of tangible fixed assets 287,486 82,639 Loans to joint ventures and associates (20,860) - ________ ________Net cash inflow from capital expenditure and financial investment 147,004 18,879 ======= =======Acquisitions and disposals Purchase of shares in subsidiary companies (15,154) (24,786)(Note) Settlement of debt due from vendor - 2,978 Net cash acquired with subsidiary companies - 4 ________ ________Net cash outflow from acquisitions and disposals (15,154) (21,804) ======= ======= Equity dividends paid (11,318) (10,264) ======= ======= Net cash inflow (outflow) before management of liquid resources and financing 122,943 (17,445) ======= ======= Management of liquid resources 25c 25,772 (22,703) ======= =======Financing Proceeds from issue of shares 534 2,287 Purchase of own shares for cancellation (2,243) - Investment in own shares (1,539) - Loans drawn down 358,821 105,588 Loan repayments (511,137) (68,376) ________ ________Net cash (outflow) inflow from financing (155,564) 39,499 ======= ======= Decrease in cash in the year 25b (6,849) (649) ======= ======= Note: The figure for the purchase of shares in subsidiaries consists of thefinal instalment (£13,858,000) of the deferred consideration in respect of theacquisition of Wembley (London) Limited, which occurred in August 2002, and thepurchase of an additional 15% of shares in SCI Bureaux Du Chateau Rouge. Notes to the Accountsfor the year ended 31 March 2005 1. Accounting policies The principal accounting policies have been applied consistently throughout theyear and the preceding year except for the first time application of UrgentIssues Task Force Abstract 38, Accounting for ESOP Trusts, which becameeffective for accounting periods ending on or after 22 June 2004. In accordancewith this abstract, consideration paid by The Quintain Group Employee BenefitTrust for the purchase of the Company's own shares is deducted in arriving atshareholders' funds. Such shares were purchased for the first time in thecurrent financial year. The shares held by the Trust have been treated as ifthey were cancelled for the purpose of calculating earnings and net assets pershare. a) Basis of accounting The accounts have been prepared under the historical cost convention as modifiedby the revaluation of investment properties either held directly or throughjoint ventures and associates and in accordance with all applicable accountingstandards and the requirements of the Companies Act 1985, except as explainedbelow. b) Basis of consolidation The Group's accounts include the accounts of the Company and its subsidiaryundertakings prepared up to 31 March 2005. Unless otherwise stated, theacquisition method of accounting has been adopted. Under this method, theresults of subsidiary undertakings acquired or disposed of in the year areincluded in the consolidated profit and loss account from the date ofacquisition or up to the date of disposal. A joint venture is an undertaking in which the Group has a long-term interestand over which it exercises joint control. The Group's share of the profitsless losses of joint ventures is included in the consolidated profit and lossaccount and its interest in their net assets, (other than goodwill), is includedin investments in the consolidated balance sheet. Jointly administered arrangements are accounted for on a proportional basis. An associate is an undertaking in which the Group has a long-term interest,usually from 20% to 50% of the equity voting rights, and over which it exercisessignificant influence. The Group's share of the profits less losses ofassociates is included in the consolidated profit and loss account and itsinterest in their net assets (other than goodwill) is included in investments inthe consolidated balance sheet. Under section 230 (4) of the Companies Act 1985, the Company is exempt from therequirement to present its own profit and loss account. c) Goodwill Goodwill arising on consolidation is capitalised and amortised through theprofit and loss account over a period of 20 years or less in line with theDirectors' view of its useful economic life. Negative goodwill, which arises as a result of the fair value of all assets(including property assets) less liabilities acquired exceeding the relatedpurchase consideration, is credited to Other capital reserves in the balancesheet. This treatment does not comply with the Companies Act 1985 andrepresents a departure from FRS 10, Goodwill and Intangible Assets, whichrequires that negative goodwill be treated as a fixed asset. Given thatnegative goodwill relates principally to investment properties acquired, whichare neither depreciated nor held for re-sale, the Directors consider that toretain it as a negative asset on the face of the balance sheet indefinitelywould not properly reflect the substance of such a transaction nor result in thefinancial statements giving a true and fair view of the state of affairs of theGroup. d) Foreign currencies All assets, liabilities and results denominated in foreign currencies aretranslated into sterling at rates of exchange ruling at the year end. The ratesruling at the current and previous year ends were as follows: 2005 2004 _______ _______ France £1 = • 1.46 • 1.50United States £1 = US $ 1.88 US $ 1.83 Differences arising from the translation of the net equity investment inoverseas subsidiaries are dealt with through reserves. e) Turnover and cost of sales Turnover is stated net of VAT and comprises rental income, proceeds from salesof trading properties, income from leisure operations, commission and feesreceivable. Rent increases arising from rent reviews due during the year aretaken into account only to the extent that such reviews are agreed with tenantsat the accounting date. When rent free periods are granted with new leases,rental income is allocated evenly over the period from the commencement of thelease to the date of the first rent review. Where a tenant inducement does notenhance the value of the property, it is amortised over the period to theearlier of the first rent review, the first tenant break option or the end ofthe lease term. f) Disposal of properties Sales of properties are recognised in the accounts if an unconditional contractis exchanged by the balance sheet date and the sale is completed before theaccounts are approved by the Board. Profits or losses arising from the sale ofinvestment properties are calculated by reference to book value and treated asnon-operating items. Those arising from the sale of trading properties areincluded in the profit and loss account as part of the operating profit of theGroup with, if applicable, a transfer between revaluation and revenue reserves. g) Depreciation In accordance with SSAP 19, Accounting for Investment Properties, nodepreciation is provided in respect of the Group's freehold investmentproperties and leasehold investment properties with over 20 years to run. Thisrepresents a departure from the provisions of the Companies Act 1985 whichrequires all properties to be depreciated. Such properties are held not forconsumption but for investment and the Directors consider that to depreciatethem would not give a true and fair view. Depreciation is only one of the manyfactors reflected in the annual valuation of properties and accordingly theamount of depreciation which might otherwise have been charged cannot beseparately identified or quantified. Depreciation is provided on leaseholdinvestment properties with less than 20 years to run, over the remaining life ofthe lease and on an operational property included within freehold investmentproperties, over a period of 50 years. In relation to other tangible fixedassets, depreciation is provided on a straight line basis over the life of thelease for the leasehold interests and over their estimated useful life, usuallybetween three and eight years, in the case of fixtures, fittings and equipment. h) Valuation of properties Investment properties are independently valued annually by external professionalvaluers at market value. Investment properties under development are stated atestimated market value on completion, supported by independent valuation, lessestimated costs to complete. Any surplus or deficit on revaluation is transferred to the revaluation reserveexcept that deficits below original cost which are expected to be permanent arecharged to the profit and loss account. Finance charges incurred on investment properties under development arecapitalised within the historical cost from commencement of development untilpractical completion. Trading properties are included in current assets at the lower of cost and netrealisable value except for properties previously held for investment which theDirectors have decided to redevelop and sell. These properties are reclassifiedas trading properties and cost is considered to be the latest valuation prior totheir reclassification. This treatment is a departure from the Companies Act1985 which would normally require current assets to be carried at the lower ofcost and net realisable value. The Directors consider that compliance with thisrequirement would fail to give a true and fair view of historical revaluationsurpluses, which remain unrealised by the Group until disposal. i) Other tangible fixed assets Other tangible fixed assets comprising the Group's leasehold interest in itscurrent and new head office premises together with fixtures, fittings andequipment are carried at cost less accumulated depreciation. j) Other investments Fixed asset investments are stated at cost less any provision for impairment invalue. k) Financial instruments The Group uses interest rate swaps for hedging purposes in line with its riskmanagement policies to alter the risk profile of existing underlying exposure inrespect of floating rate debt. Amounts payable and receivable in respect ofinterest rate swaps are recognised as adjustments to interest expense over theperiod of the contracts. l) Deferred taxation Deferred taxation is recognised, without discounting, in respect of all timingdifferences between the treatment of certain items for taxation and accountingpurposes which have arisen but not reversed by the balance sheet date, except asotherwise required by FRS 19, Deferred Taxation. Deferred tax assets arerecognised to the extent that they are considered recoverable. m) Pensions The Group makes pre-defined contributions to employees' personal pension plans. 2. Turnover, cost of sales and gross profit These comprised: 2005 2005 2005 2004 2004 2004 Turnover Cost of Gross Turnover Cost of Gross sales profit sales profit £000 £000 £000 £000 £000 £000 ______ _______ ______ ______ ______ ______ Rental income 36,159 (8,746) 27,413 41,993 (12,133) 29,860Proceeds from sales of trading properties 25,852 (22,036) 3,816 1,863 (1,565) 298Income from leisure operations 12,112 (5,871) 6,241 12,154 (5,562) 6,592Other income 4,253 (2,050) 2,203 4,474 (819) 3,655 ______ _______ ______ ______ _______ ______ 78,376 (38,703) 39,673 60,484 (20,079) 40,405 ===== ====== ===== ===== ====== ===== The cost of sales in relation to rental income receivable consisted of: 2005 2004 £000 £000 _____ _____ Rents payable 1,680 1,312Property management fees 587 667Legal and professional fees 804 1,327Irrecoverable service charges 1,605 1,835Property amortisation 647 1,137Other property costs 3,423 5,855 ______ ______ 8,746 12,133 ===== ===== Other property costs in 2004 included £3,640,000 in respect of exceptionalrepairs carried out to two investment properties in the Group's portfolio,Neathouse Place, London SW1 and 36 Gracechurch Street, London EC3. 3. Segmental analysis a) Geographical segmental analysis The geographical split of the Group's business was as follows: 2005 2005 2005 2004 2004 2004 Turnover Profit Net assets Turnover Profit Net before before assets interest interest and tax and tax £000 £000 £000 £000 £000 £000 ______ ______ ______ ______ ______ ______ United Kingdom 76,052 31,451 734,386 57,985 29,637 759,962France 1,509 742 10,062 1,496 937 8,706United States 815 (561) - 1,003 3,645 8,354 ______ ______ _______ ______ ______ _______ 78,376 31,632 744,448 60,484 34,219 777,022 ===== ===== ===== =====Net investment in joint ventures and 63,823 36,758associate (note 11)Net debt (note 25b) (170,010) (290,267) _______ _______ 638,261 523,513 ====== ====== Turnover by geographical destination is the same as turnover by origin. 3. Segmental analysis (continued) a) Geographical segmental analysis The Group's profit (loss) from the sale of investment properties, either helddirectly or through its joint ventures and associates, and its interests inassociates was as follows: 2005 2005 2005 2004 2004 2004 Own Joint Total Own Joint Total properties venture properties venture and and and and investments associate investments associate in associates properties in associates properties £000 £000 £000 £000 £000 £000 ______ ______ ______ _____ _____ _____ United Kingdom 6,748 709 7,457 3,895 (230) 3,665United States (1,171) - (1,171) - 2,233 2,233 _____ ______ _____ _____ _____ _____ 5,577 709 6,286 3,895 2,003 5,898 ===== ===== ===== ===== ==== ==== b) Business segmental analysis The analysis of the Group's results by business division was as follows: 2005 2005 2005 2005 2004 2004 2004 2004 Gross Other Total Gross Gross Other Total Gross rental turnover turnover profit rental turnover turnover profit income income £000 £000 £000 £000 £000 £000 £000 £000 ______ _______ ______ ______ ______ _______ _______ _____ Main portfolio 27,484 3,381 30,865 24,023 29,383 2,419 31,802 23,996Special projects 7,319 36,925 44,244 14,214 11,270 14,708 25,978 15,473Fund management 1,356 1,911 3,267 1,436 1,340 1,364 2,704 936 ______ ______ ______ ______ ______ ______ ______ _____ 36,159 42,217 78,376 39,673 41,993 18,491 60,484 40,405 ===== ===== ===== ===== ===== ===== ===== ===== 2005 2005 2004 2004 Investment Revaluation Investment Revaluation properties uplift properties uplift at at valuation valuation £000 £000 £000 £000 ______ _______ _______ _____ Main portfolio 284,059 18,942 398,341 17,919Special projects 435,717 93,887 379,435 49,778Fund management 23,100 639 19,920 1,630 _______ _______ _______ ______ 742,876 113,468 797,696 69,327 ====== ====== ====== ===== 2005 2004 2005 2004 2005 2004 Operating Operating Book value Book value Revaluation Revaluation profit from profit from of of uplift from uplift from joint joint joint joint joint joint ventures ventures ventures ventures ventures ventures and and and and and and associates associates associates associates associates associates £000 £000 £000 £000 £000 £000 ______ ______ ______ ______ _______ _______ Main portfolio - 590 - 46 - -Special projects - - 13,908 1,350 - -Fund management 4,803 3,285 49,915 35,362 6,626 5,108 _______ _______ _______ _______ ______ _______ 4,803 3,875 63,823 36,758 6,626 5,108 ====== ====== ====== ====== ===== ====== 3. Segmental analysis (continued) c) Sector analysis The analysis of the Group's results by sector was as follows: 2005 2005 2005 2005 2004 2004 2004 2004 Gross Other Total Gross Gross Other Total Gross rental turnover turnover profit rental turnover turnover profit income income £000 £000 £000 £000 £000 £000 £000 £000 ______ _______ ______ ______ ______ _______ _______ _____ Healthcare 1,325 1,454 2,779 1,740 1,236 2,955 4,191 2,210Hotels 2,056 20 2,076 2,015 1,995 1 1,996 1,885Industrial 4,773 4,183 8,956 5,623 4,180 - 4,180 3,939Land 2,172 31,747 33,919 9,069 3,007 12,321 15,328 8,366Leisure 400 787 1,187 71 535 114 649 (713)Offices 14,022 3,887 17,909 13,742 16,472 2,448 18,920 12,287Retail 11,290 139 11,429 8,501 14,366 652 15,018 12,279Other 121 - 121 (1,088) 202 - 202 152 ______ ______ _______ _______ _______ ______ _______ _____ 36,159 42,217 78,376 39,673 41,993 18,491 60,484 40,405 ===== ===== ===== ===== ===== ===== ===== ===== 2005 2005 2004 2004 Investment Revaluation Investment Revaluation properties uplift properties uplift at valuation at valuation £000 £000 £000 £000 ______ _______ _______ _____ Healthcare 22,300 639 17,345 1,820Hotels 33,250 (944) 34,050 638Industrial 75,700 7,507 61,320 4,310Land 348,958 86,705 237,956 44,281Leisure 9,265 (28) 11,050 78Offices 203,174 17,429 215,359 11,428Retail 49,179 2,061 219,316 6,441Other 1,050 99 1,300 331 _______ _______ _______ ______ 742,876 113,468 797,696 69,327 ====== ====== ====== ===== 2005 2004 2005 2004 2005 2004 Operating Operating Book value Book value Revaluation Revaluation profit from profit from of of uplift from uplift from joint joint joint joint joint joint ventures ventures ventures ventures ventures ventures and and and and and and associates associates associates associates associates associates £000 £000 £000 £000 £000 £000 ______ ______ ______ ______ _______ _______ Healthcare 4,608 3,029 48,115 31,205 6,400 4,286Land - - 13,868 1,310 - -Leisure 195 274 - 2,582 - 346Offices - (18) 40 40 - -Retail - 590 - 47 - -Other - - 1,800 1,574 226 476 _______ _______ _______ _______ ______ _______ 4,803 3,875 63,823 36,758 6,626 5,108 ====== ====== ====== ====== ===== ====== 4. Administrative expenses a) These included: 2005 2004 £000 £000 ______ ______ Directors' remuneration 2,853 2,095Cost relating to Executive Directors' Performance Share Plan 380 195Staff costs 10,121 8,000 ______ ______Total staff costs 13,354 10,290 Legal and other professional fees 2,258 2,225Office costs 2,477 2,642Profit on sale of fixed assets - (18)Depreciation of tangible fixed assets 441 333Operating lease payments 302 278General expenses 298 209 ______ ______ 19,130 15,959 ===== ===== In addition to the depreciation charge disclosed above, property amortisation of£647,000 (2004: £1,137,000) is charged under cost of sales and shown in note 2. b) Fees paid to the auditors and their affiliates: 2005 2004 £000 £000 _____ _____Audit: Statutory audit: Group (including parent company) 238 246 Parent company only 30 30 Audit-related regulatory reporting 22 19 ==== ==== Non-audit: Tax due diligence and legal work - 400 Tax compliance 21 241 Tax advisory 47 121 _____ ______ 68 762 ==== ===== The charge in respect of tax due diligence and legal work in 2004 related to theacquisition of Power Securities (Manchester) Limited now renamed Quintain(Manchester) Limited. Fees paid to other accountancy firms were £538,000 (2004: £255,000) of which£376,000 (2004: £nil) were capitalised. These fees related mainly to taxadvisory services. c) Staff costs: 2005 2004 £000 £000 ______ ______ Wages and salaries 10,072 8,261Cost relating to Executive Directors' Performance Share Plan 380 195Cost relating to 2004 Unapproved Share Plan 232 -Provision for national insurance on unexercised share options and 408 354rightsSocial security costs 1,310 895Pension costs 689 457Other employment costs 263 128 ______ ______ 13,354 10,290 ===== ===== Details of directors' emoluments, pensions and share option entitlements arecontained in the Remuneration Report. Details of directors' interests in the share capital of the Company arecontained in the Report of the Directors. This information forms part of these financial statements. 4. Administrative expenses (continued) d) Staff numbers: The average number of persons employed by the Group during the year was asfollows: 2005 2004 Number Number ______ ______ Property portfolio management and administration 61 57Leisure operations 119 113 ______ ______ 180 170 ===== ===== 5. Net interest payable and other similar charges 2005 2004 £000 £000 ______ ______ Interest payable on bank loans and overdrafts 18,472 19,537Interest payable on other loans 702 702 ______ ______ 19,174 20,239 Amortisation of financing costs 2,369 647 ______ ______ 21,543 20,886 Profit on termination of swap arrangements (722) -Interest capitalised (5,187) (3,249)Interest receivable (1,454) (830) ______ ______Group interest charge 14,180 16,807 Share of joint venture and associate interest payable 1,689 1,375 ______ ______ 15,869 18,182 ===== ===== The amortisation of financing costs includes an amount of £1,890,000 (2004:£nil) written-off in respect of previously capitalised borrowing costs. Theseloan facilities were cancelled following their replacement by a new £475mSyndicated facility. Of the interest capitalised in the year, the amount capitalised to investmentproperties was £4,060,000 (2004: £2,815,000) and to trading properties£1,127,000 (2004: £434,000). Capitalised interest included within trading properties as at 31 March 2005 was£814,000 (2004: £434,000). The amount of capitalised interest relating toinvestment properties is shown in note 9. 6. Tax on profit on ordinary activities 2005 2004 £000 £000 ______ ______ UK Corporation tax on revenue profit for the year 1,535 1,261Overseas taxation 86 100 ______ ______Tax on current year revenue profit 1,621 1,361 Adjustments to prior years' UK Corporation tax 287 (307) ______ ______ 1,908 1,054 Deferred tax on origination and reversal of timing differences 446 (1,054)(note 17) ______ ______ 2,354 - ===== ===== Reconciliation of the taxation charge:Tax on revenue profit for the year at 30% (2004: 30%) 4,729 4,811Capital allowances (2,709) (2,023)Use of prior year UK tax losses (5,406) (1,786)Use of surplus ACT (7,904) -Capitalised interest (1,246) (911)Use of losses and differing tax rates in respect of overseas 9 (1,077)resultsDisallowable expenditure 1,875 1,336Profit on sale of investment properties 17,728 1,084Property revaluation gains (3,952) (471)Capitalised expenses and other timing differences (1,503) 398Adjustments to prior years' UK Corporation tax 287 (307) ______ ______ 1,908 1,054 ===== ===== The current year Corporation tax charge includes tax payable by the Group on itsshare of joint venture profits. 7. Dividends 2005 2004 £000 £000 ______ ______ Interim (paid): 2.75p (2004: 2.75p) per share 3,561 3,556Final (proposed): 6.75p (2004: 6.00p) per share 8,700 7,7572003 final dividend on staff share options exercised after the - 25year end ______ ______Total: 9.50p (2004: 8.75p) per share 12,261 11,338 ===== ===== 8. Earnings per share and net asset value per share a) Earnings per share 2005 2005 2005 2004 2004 2004 Profit for Weighted Earnings Profit for Weighted Earnings the per share the per financial average financial average share year number year number of shares of shares £000 000 pence £000 000 pence ______ _______ ______ ______ ______ ______ Basic 13,376 129,349 10.3 15,887 128,182 12.4 ===== =====Adjustment in respect of 8%Convertible 168 2,000 168 2,000 unsecured loan stock (note 15)Related Shares:
Quadrise