25th May 2005 07:02
British Land Co PLC25 May 2005 Consolidated Profit & Loss Accountfor the year ended 31 March 2005---------------------------------- Note 2005 2004 £m £m --- ---Gross rental income 619.9 565.6 Less share of joint ventures 10 (73.4) (78.9) -------- -------- Gross rental income - Group 546.5 486.7 ======== ======== Operating profit 3 462.3 421.8 Share of operating profits of joint ventures 10 67.7 67.5 Disposal of fixed assets - including amounts from joint 4 23.8 32.9ventures (note 10) -------- -------- Profit on ordinary activities before interest 553.8 522.2 Net interest payable - including amounts from joint ventures 5 (352.0) (336.2)(note 10) Exceptional item 5 (180.0) -------- -------- Profit on ordinary activities before taxation 21.8 186.0 Taxation credit (charge) 6 36.9 (14.5) -------- -------- Profit on ordinary activities after taxation 58.7 171.5 Ordinary dividends 7 (83.9) (70.8) -------- -------- Retained (loss) profit for the year (25.2) 100.7 ======== ======== Basic earnings per share 8 11.5 p 35.1 p ======== ========Diluted earnings per share 8 11.3 p 34.5 p ======== ========Adjusted basic earnings per share * 8 39.7 p 37.0 p ======== ========Adjusted diluted earnings per share * 8 38.9 p 36.3 p ======== ======== Dividend per share 7 15.7 p 14.5 p ======== ======== The results stated above relate to the continuing activitiesof the Group. * Adjusted to exclude the capital allowance effects of FRS 19 and the post tax impact of the exceptional item disclosed in note 5. Consolidated Balance Sheetas at 31 March 2005--------------------- Note 2005 2004 £m £m ---- ----Fixed assetsInvestment properties 9 10,981.8 9,251.2 -------- -------- Investments in joint venturesShare of gross assets 10 1,444.9 1,299.8Share of gross liabilities 10 (640.9) (641.6) -------- -------- 804.0 658.2 -------- -------- Other investments 11 153.1 17.2Negative goodwill 11 (18.1) (14.1) -------- -------- 11,920.8 9,912.5 -------- --------Current assetsTrading properties 9 35.9 41.6Debtors 12 121.4 67.8Cash and deposits 16 150.8 173.7 -------- --------Total current assets 308.1 283.1 -------- -------- Creditors due within one year 13 (756.6) (869.9) -------- -------- Net current liabilities (448.5) (586.8) -------- -------- Total assets less current liabilities 11,472.3 9,325.7 Creditors due after one year 14 (5,788.7) (4,406.3)Convertible Bonds 16 (149.0)Provisions for liabilities and charges 15 (101.3) (101.1)Pension (liability) asset 25 (3.0) 0.1 -------- --------Net assets 5,579.3 4,669.4 ======== ======== Capital and reservesCalled up share capital 20 129.6 122.0Share premium 20 1,251.9 1,109.3Capital redemption reserve 20 8.1 8.1Other reserves 20 (8.0) (6.1)Revaluation reserve 20 3,395.2 2,615.2Profit and loss account 20 802.5 820.9 -------- --------Equity shareholders' funds 5,579.3 4,669.4 ======== ======== Adjusted Net Asset Value per share Basic 19 1118 p 999 p ======== ======== Fully 19 1111 p 966 p diluted ======== ======== (The adjusted Net Asset Value per share includes the external valuation surplus ondevelopment and trading properties but excludes the capital allowance effects of FRS 19.) Approved by the Board on 24 May 2005 Other Consolidated Primary Statementsfor the year ended 31 March 2005---------------------------------- Note 2005 2004 £m £m --- ---- --- ----Statement of total recognised gains and losses Profit on ordinary activities after taxation 58.7 171.5 ------- ------- Unrealised surplus on revaluation: - investment 586.9 396.6 properties - joint ventures 161.5 65.3 - other investments 43.1 0.3 ------- ------- 791.5 462.2 ------- ------- Exchange movements on net investments (0.3) 0.3 Taxation on realisation of prior year revaluations (4.6) Pension scheme movements 25 (2.7) (0.2) Fair value adjustment on consolidation of former joint (8.3)ventures ------- -------Total recognised gains and losses relating to the financial year 847.2 620.9 ======= ======= 2005 2004 £m £m --- ---- --- ----Note of historical cost profits and losses Profit on ordinary activities before 21.8 186.0taxationRealisation of prior year revaluations 11.5 72.2 ------- -------Historical cost profit on ordinary 33.3 258.2activities before taxation Taxation 36.9 (14.5) Taxation on realisation of prior year revaluations (4.6) Ordinary dividends (83.9) (70.8) ------- -------Historical cost (loss) profit for the yearretained aftertaxation and dividends (13.7) 168.3 ======= ======= Other Consolidated Primary Statements (continued)for the year ended 31 March 2005---------------------------------- 2005 2004 £m £m ---- ----Reconciliation of movements inshareholders' funds Profit on ordinary activities after taxation 58.7 171.5Ordinary dividends (83.9) (70.8) -------- --------Retained (loss) profit for the year (25.2) 100.7 Revaluation of investment properties and 791.5 462.2investmentsExchange movements on net investments (0.3) 0.3Taxation on realisation of prior year (4.6)revaluationsFair value adjustment on consolidation of (8.3)former joint ventures -------- -------- 766.0 550.3 Shares issued 150.2 1.7Pension scheme movements (2.7) (0.2)Purchase and cancellation of own shares (5.0)Purchase of ESOP shares (10.9) (6.7)Adjustment for share and share option awards 7.3 6.0 -------- --------Increase in shareholders' funds 909.9 546.1 -------- -------- Opening shareholders' funds 4,669.4 4,123.3 -------- --------Closing shareholders' funds 5,579.3 4,669.4 ======== ======== Consolidated Cash Flow Statementfor the year ended 31 March 2005---------------------------------- Note 2005 2004 £m £m --- --- ---Net cash inflow from operating activities 18 462.2 381.4 -------- --------Dividends received from joint ventures 15.8 79.7 -------- --------Returns on investments and servicing of financeInterest received 9.8 12.9Interest paid (349.0) (301.5)Dividends received 0.2 -------- -------- (339.2) (288.4) -------- --------TaxationUK corporation tax paid (10.0) (4.1)Foreign tax paid (3.6) (5.5) -------- -------- (13.6) (9.6) -------- --------Net cash inflow from operating activities andinvestments after finance charges and taxation 125.2 163.1 -------- -------- Capital expenditure and financial investmentPurchase of investment properties and development (508.9) (316.9)expenditurePurchase of investments (97.9) (10.8)Sale of investment properties 81.3 171.3Sale of investments 3.7 20.8 -------- -------- (521.8) (135.6) -------- --------Acquisitions and disposalsPurchase of subsidiary companies * (41.0) (110.2)Cash at bank acquired with interest in subsidiary 4.9 5.8companiesInvestment in and loans to joint ventures (23.4) (34.8)Sale of shares in and loans repaid by joint 54.8 89.2ventures -------- -------- (4.7) (50.0) -------- -------- Equity dividends paid (76.6) (67.0) -------- --------Net cash outflow before managementof liquid resources and financing (477.9) (89.5) -------- -------- Management of liquid resources(Increase) decrease in term deposits (18.6) 11.9 -------- -------- FinancingIssue of ordinary shares 1.2 1.7Purchase and cancellation of own shares (5.0)Purchase of ESOP shares (10.9) (6.7)Issue of Broadgate Estate securitised debt 2,080.7Redemption of Broadgate Funding PLC securitised (1,439.7)debtRedemption of 135 Bishopsgate securitised debt (138.4)Repayment of debt acquired with subsidiary (648.6)companies *Issue of Meadowhall Shopping Centre securitised 50.7debtIssue of Sainsbury supermarkets securitised debt 84.0Redemption of Broadgate Class D Unsecured Notes (73.5)2014Increase in bank and other borrowings 614.3 73.4 -------- -------- 458.6 124.6 -------- -------- -------- --------(Decrease) increase in cash 18 (37.9) 47.0 ======== ======== * Properties of £702.2m acquired through corporate structures. Notes to the financial informationfor the year ended 31 March 2005---------------------------------- 1. Basis of preparation The financial information is prepared on the basis of the accounting policiesset out in the Group's financial statements for the year ended 31 March 2004,consistently applied in all material respects. The financial information set out in the announcement does not constitute thecompany's statutory accounts for the years ended 31 March 2005 or 2004, but isderived from those accounts. Statutory accounts for 2004 have been delivered tothe Registrar of Companies and those for 2005 will be delivered following thecompany's annual general meeting. The auditors have reported on those accounts;their reports were unqualified and did not contain statements under s237(2) or(3) Companies Act 1985. 2. Proforma information based on proportional consolidation The following proforma information does not form part of the consolidatedprimary statements or the notes thereto. It shows the results of the group, withjoint ventures consolidated on a proportional basis, with development andtrading properties shown at external valuation and lease incentive and rentreview debtors reclassified to investment properties, and after adding back thecapital allowance effects of FRS19. Note 2005 2004Profit and loss account £m £m------------------------- ---- ----Gross rental income 619.9 565.6 ========== ========== Net rental income 571.8 523.0Other income 6.2 6.2Administrative expenses (51.2) (43.6) ---------- ----------Earnings before interest and property sales 526.8 485.6 Net interest payable 5 (352.0) (336.2) ---------- ---------- Underlying profit before taxation 174.8 149.4 Profit on property trading 3.2 3.7Disposal of fixed assets 4 23.8 32.9Exceptional item 5 (180.0) ---------- ---------- Profit on ordinary activities before 21.8 186.0taxation Taxation 6 36.9 (14.5)Adjustment for capital allowance effects of 8 17.3 9.1FRS19 ---------- ---------- Profit on ordinary activities after taxation 76.0 180.6 Ordinary dividends 7 (83.9) (70.8) ---------- ---------- Retained (loss) profit for the year (7.9) 109.8 ========== ========== Balance sheet--------------- AssetsTotal properties at valuation 9 12,506.9 10,639.4 Other investments 11 153.1 17.2Negative goodwill (35.2) (33.3) ---------- ---------- 12,624.8 10,623.3 ---------- ---------- Debtors and prepayments 77.8 49.8Cash and deposits 207.3 211.7 ---------- ---------- 285.1 261.5 ---------- ---------- Creditors due within one year (877.1) (909.7) Total assets less current liabilities 12,032.8 9,975.1 Creditors due after one year (6,258.5) (4,952.7)Convertible bonds (149.0)Deferred taxation (108.3) (109.1)Adjustment for capital allowance effects of 6 130.2 112.9FRS19Pension (liability) asset (3.0) 0.1 ---------- ----------Net assets 19 5,793.2 4,877.3 ========== ========== Equity shareholders' funds 5,793.2 4,877.3 ========== ========== 3. Operating profit 2005 2004 £m £m --- ---Gross rental income 546.5 486.7Service charge receivable 47.1 37.6 ------- -------Total income 593.6 524.3 Rents payable (3.1) (3.7)Other property outgoings (86.2) (70.3) ------- -------Net rental income 504.3 450.3 Profit on property trading (see below) 0.6 6.0Other income 6.2 6.2Administrative expenses (48.8) (40.7) ------- -------Operating profit 462.3 421.8 ======= ======= Profit on property tradingSale proceeds 6.6 11.0Cost of sales (6.0) (5.0) ------- -------Profit on property trading 0.6 6.0 ======= ======= Property derivatives The surplus of £0.2m arising on the revaluation of property derivatives isincluded in other income (2004: £nil). Net rental income from encumbered assets Net rental income for the year from properties which, at the year end, weresubject to a security interest or held by non recourse companies was £376.5m(2004: £347.0m). 4. Profit on the disposal of fixed assets 2005 2004 £m £m ---- ----British Land Group 15.7 25.5Share of joint ventures 8.1 7.4 ------- ------- 23.8 32.9 ======= ======= Included in the tax charge is a net charge of £2.2m (2004: £8.7m) attributableto property sales. 5. Net interest payable 2005 2004 £m £m ---- ----British Land Group Payable on: bank loans and overdrafts 76.5 52.2 other loans 260.6 263.7 ------- ------- 337.1 315.9Deduct: development cost element (7.8) (13.3) ------- ------- 329.3 302.6Receivable on: deposits and securities (9.4) (6.7) loans to joint ventures (3.2) (6.6) Other finance (income) costs: expected return on pension (2.7) (1.7) scheme assets interest on pension scheme 2.5 2.0 liabilities ------- -------Total British Land Group 316.5 289.6 ------- ------- Share of joint venturesInterest payable on 3.2 6.6shareholder loansOther interest payable (net) 32.3 40.0 ------- -------Total share of joint ventures 35.5 46.6(note 10) ------- ------- Net interest payable 352.0 336.2 ======= ======= Interest on development expenditure is capitalised at a rate of 5.6% (2004:4.7%). Exceptional item On 2 March 2005 the Group incurred an exceptional charge of £180m whilstredeeming the securitised debt of Broadgate Funding PLC and 135 BishopsgateFinancing Limited. On the same day Broadgate Financing PLC issued £2,080m of newsecuritised debt in respect of the Broadgate Estate (see note 16). The pre taxexceptional item of £180m (post tax: £126m, after £54m tax credit) relatesmainly to the difference between the redemption value and the carrying value ofthe redeemed debt. 6. Taxation 2005 2004 £m £m ---- ----Current tax UK corporation tax (30%) (2.5) 13.4Foreign tax 2.1 4.1 ------- ------- (0.4) 17.5Adjustments in respect of prior years (45.1) (17.9) ------- -------Total current tax credit (45.5) (0.4) ------- ------- Deferred taxOrigination and reversal of timing differences 0.2 3.0Tax associated with pension movements (0.2) 2.7 ------- -------Total deferred tax charge 5.7 ------- ------- Group total taxation (45.5) 5.3 Attributable to joint ventures 8.6 9.2 ------- -------Total taxation - effective tax rate: -169.3% (pre-exceptional: (36.9) 14.58.5%) (2004: 7.8%) ======= ======= Pre-exceptional tax charge 17.1 14.5Exceptional tax credit (note 5) (54.0) ------- -------Total tax credit (36.9) 14.5 ======= ======= Tax reconciliationProfit on ordinary activities before taxation 21.8 186.0Less - Share of profit of joint ventures (40.3) (28.3) ------- -------Group (loss) profit on ordinary activities before taxation (18.5) 157.7 ------- ------- Tax on group profit on ordinary activities atUK corporation tax rate of 30% (2004: 30%) (5.6) 47.3 Effects of:Capital allowances (9.3) (6.8)Tax losses and other timing differences 11.0 (29.3)Expenses not deductible for tax purposes 3.5 6.3Adjustments in respect of prior years (45.1) (17.9) ------- -------Group current tax credit (45.5) (0.4) ======= ======= Factors affecting future tax rate Capital allowances and losses which are available will reduce the current taxcharge below 30%. Capital allowances are claimed on eligible investment assets.Where a deferred tax asset is recognised for losses carried forward there willbe a deferred tax charge when those losses are used. Chargeable gains arisingwhen investment assets are sold may be reduced by available capital losses.Deferred tax provisions for capital allowances are expected to be released onsale. Contingent tax The unprovided tax, in relation to equity shareholders' funds of £5,579.3m,which would arise on the disposal of British Land Group properties, investmentsin joint ventures and other investments, at valuation, after available lossrelief, but without recourse to tax structuring is in the region of £780m (2004:£570m). Adjusted net assets are £5,793.2m and are stated after adding back the FRS19provision of £130.2m (2004: £112.9) and the surplus on development and tradingproperties of £83.7m. The unprovided tax, in relation to adjusted net assets,which would arise on the disposal of British Land Group properties, otherinvestments, and share of properties held in joint ventures, at valuation, afteravailable loss relief, but without recourse to tax structuring, is in the regionof £920m (2004: £680m). 7. Ordinary dividends 2005 2004 2005 2004 pence pence £m £m ------- ------- ---- ----Interim 4.80 4.43 27.4 21.6Proposed final 10.90 10.07 56.5 49.2 ------- ------- ------- -------Total for year 15.70 14.50 83.9 70.8 ======= ======= ======= ======= The final dividend of 10.90 pence will be paid on 19 August 2005 to shareholderson the register at the close of business on 22 July 2005. The ex-dividend dateis 20 July 2005. The interim dividend was paid on 18 February 2005. 8. Basic and diluted earnings per share Basic and diluted earnings per share are calculated on the profit on ordinaryactivities after taxation and on the weighted average number of shares in issueduring the year as shown below: 2005 2004 -------------- -------------- Weighted Weighted average Profit average Profit number after number after of taxation of taxation shares shares m £m m £m --- --- --- --- --- ---Earnings per shareBasic 509.2 58.7 488.1 171.5Diluted 519.2 58.7 519.0 179.3 ======= ======= ======= ======= Adjusted earnings per shareBasic 509.2 202.0 488.1 180.6Diluted 519.2 202.0 519.0 188.4 ======= ======= ======= ======= Underlying earnings per shareBasic 509.2 178.0 488.1 154.3Diluted 519.2 178.0 519.0 162.1 ======= ======= ======= ======= The basic weighted average number of shares has changed as a result of theconversion on or before 30 July 2004 of the 6% Irredeemable Convertible Bonds. Adjusted earnings per share are calculated by excluding the post tax profitadjustment of £17.3m (2004: £9.1m) which is the capital allowance effect of FRS19 which is not expected to arise, as described in note 15, in addition to thepost tax effect of £126m of the exceptional item described in note 5. Underlying earnings per share is calculated by taking the underlying profitbefore taxation (disclosed in note 2) and adjusting for related taxation (2005:credit £3.2m; 2004: credit £4.9m). 9. Investment, development and trading properties Leasehold ----------- --- Freehold Long Short Total £m £m £m £m ---- ---- ---- ----Investment and development propertiesValuation and cost 1 April 2004 8,857.0 386.5 7.7 9,251.2 Additions - purchases and capital 1,059.1 152.5 1,211.6 expenditure Disposals (69.0) 0.1 (68.9) Reallocation (21.7) 21.8 (0.1) Exchange 1.0 1.0 fluctuations Revaluations 565.7 20.1 1.1 586.9 ------- ------ ------ -------Valuation and cost 31 10,392.1 580.9 8.8 10,981.8March 2005 ======= ====== ====== ======= Trading propertiesAt lower of cost and net realisable value31 March 2005 27.2 8.4 0.3 35.9 ------- ------- ------- ------- External valuation surplus on development and trading properties 81.3 Adjustment for lease incentive and minimum guaranteed rent review debtors 54.9 -------Total investment, development and trading 11,153.9properties ======= Investment, development and trading properties were valued by external valuerson the basis of open market value in accordance with the Appraisal and ValuationManual published by The Royal Institution of Chartered Surveyors. £m ----On an open market basis - External valuations: United ATIS REAL Weatheralls 10,801.7 Kingdom: United FPD Savills 282.6 Kingdom: Republic of Jones Lang LaSalle 68.6 Ireland: Netherlands: CB Richard Ellis B.V. 1.0 -------Total investment, development and trading 11,153.9properties ======= Total external valuation surplus on development andtrading properties £m ----British Land Group 81.3Share of joint 2.4ventures ------- 83.7 ======= Properties valued at £7,051.9m (2004: £6,672.8m) were subject to a securityinterest and other properties of non-recourse companies amounted to £41.9m(2004: £84.3m). 9. Investment, development and trading properties (continued) Total property valuations including share of joint ventures 2005 2004 £m £m ---- ---- British Land Group Investment and development properties 10,981.8 9,251.2 Trading properties 35.9 41.6 External valuation surplus on development and trading properties 81.3 92.7 Lease incentive and minimum guaranteed rent review 54.9 27.6 debtors ------- ------- 11,153.9 9,413.1Share of joint ventures Properties 1,347.8 1,221.8 External valuation surplus on development and trading properties 2.4 2.3 Lease incentive and minimum guaranteed rent review 2.8 2.2 debtors ------- ------- 1,353.0 1,226.3 ------- -------Total property portfolio valuation 12,506.9 10,639.4 ======= ======= The valuation of the BL Davidson portfolio included within joint ventureshas been agreed by the directors of the joint venture at 31 December 2004,and is derived from an open market valuation by FPD Savills at 30 June 2004,with adjustments made to reflect movements on property valuation to the yearend date. 10. Joint ventures' summary financial statements The Tesco Tesco BL BL BLT British BL Rosemound BL Land Fraser Properties Property Holdings Limited West Ltd Ltd Partnership Ltd Partnership companies ------- -------- -------- -------- --------- --------All joint ventures are held equally on a 50: West LB,50 basis Rosemound WestImmo,Partners House Developments and of Fraser Tesco plc Tesco plc Tesco Ltd Provinzial plc plc Date established July November February November March September 1999 1996 1998 1999 2004 2000Accounting year end 29 Jan 31 Dec 31 Dec 31 Dec 31 March 31 Dec Summarised profit and £m £m £m £m £m £mloss accounts ---- ---- ---- ---- ---- ---- Gross rental income 14.3 15.3 10.1 26.6 17.1 ======= ======== ======== ======== ========= ======== Net rental income 14.0 14.7 9.7 25.2 16.1Other expenditure (0.4) (0.4) (0.3) (0.4) (0.3)Profit (loss) on 0.4property trading ------- -------- -------- -------- --------- --------Operating profit 13.6 14.3 9.4 24.8 0.4 15.8 ------- -------- -------- -------- --------- --------Disposal of fixed assets (1.4) ------- -------- -------- -------- --------- --------Net interest - external (9.0) (10.9) (3.6) (13.7) (1.2) (11.2) - share holders (1.5) 0.8 (6.0) ------- -------- -------- -------- --------- --------Net interest (payable) (10.5) (10.1) (3.6) (19.7) (1.2) (11.2)receivable ------- -------- -------- -------- --------- --------Profit (loss) before tax 3.1 4.2 5.8 5.1 (0.8) 3.2Tax (0.5) (1.3) (2.1) (0.9) 0.2 0.2 ------- -------- -------- -------- --------- --------Profit (loss) after tax 2.6 2.9 3.7 4.2 (0.6) 3.4 ======= ======== ======== ======== ========= ======== Summarised statements oftotalRecognised gains andlosses Profit (loss) retained 2.6 2.9 3.7 4.2 (0.6) 3.4for the yearUnrealised surplus(deficit)on revaluation 29.9 26.1 18.7 74.8 18.0 Total recognised gainsand losses ------- -------- -------- -------- --------- --------relating to the financial year 32.5 29.0 22.4 79.0 (0.6) 21.4 ======= ======== ======== ======== ========= ========Summarised balance sheets Investment properties at 285.6 282.5 148.0 490.6 181.0valuationDevelopment and tradingpropertiesat cost 36.6 ------- -------- -------- -------- --------- --------Total properties 285.6 282.5 148.0 490.6 36.6 181.0Current assets 0.9 0.9 2.0 4.0 1.1 0.2Upstream loans tojoint venture shareholders 17.1Cash and deposits 5.9 9.3 11.8 17.9 0.5 30.5 ------- -------- -------- -------- --------- --------Gross assets 292.4 309.8 161.8 512.5 38.2 211.7 ------- -------- -------- -------- --------- --------Current liabilities (5.0) (7.4) (21.6) (12.1) (2.6) (6.3)Bank debt falling due (4.0) (10.8) (108.0)within one yearBank debt falling due (133.7) (184.6) (86.8) (314.0) (10.0)after one yearDebenturesDeferred tax (5.0) (1.0) (1.2) (3.0) ------- -------- -------- -------- --------- --------Gross liabilities (147.7) (193.0) (109.6) (329.1) (23.4) (114.3) ------- -------- -------- -------- --------- --------Net external assets 144.7 116.8 52.2 183.4 14.8 97.4 ======= ======== ======== ======== ========= ======== Represented by:Shareholder loans 27.1 16.6Ordinary shareholders'funds /Partners' capital 117.6 116.8 52.2 183.4 (1.8) 97.4 ------- -------- -------- -------- --------- --------Total investment 144.7 116.8 52.2 183.4 14.8 97.4 ======= ======== ======== ======== ========= ======== Capital commitments 24.1 2.5 2.6 32.6 0.4 ======= ======== ======== ======== ========= ======== Contingent tax 24.9 30.4 8.0 40.6 ======= ======== ======== ======== ========= ======== 10. Joint ventures' summary financial statements (continued) The Scottish Retail BL Property Other British Davidson * Limited Joint Land 2004 Ltd Partnership Ventures Share Comparative -------- -------- ------- ------- ---------All joint ventures are held equallyon a 50:50 basisPartners Manny Davidson, Land his Securities family & trusts Group PLC Date established September March 2001 2004Accounting year end 31 31 March December Summarised profit and loss £m £m £m £m £maccounts ---- ---- ---- ---- ---- Gross rental income 28.1 33.1 2.2 73.4 78.9 ======== ======== ======= ======= ========= Net rental income 25.0 28.4 1.9 67.5 72.7Other expenditure (1.5) (1.3) (0.2) (2.4) (2.9)Profit (loss) on property trading 4.7 0.1 2.6 (2.3) -------- -------- ------- ------- ---------Operating profit 28.2 27.1 1.8 67.7 67.5 -------- -------- ------- ------- ---------Disposal of fixed assets 15.7 1.9 8.1 7.4 -------- -------- ------- ------- ---------Net interest - external (15.0) 0.3 (0.3) (32.3) (40.0) - shareholders (0.2) 0.5 (3.2) (6.6) -------- -------- ------- ------- ---------Net interest (payable) receivable (15.2) 0.3 0.2 (35.5) (46.6) -------- -------- ------- ------- ---------Profit (loss) before tax 28.7 27.4 3.9 40.3 28.3Tax (4.6) (8.2) (8.6) (9.2) -------- -------- ------- ------- ---------Profit (loss) after tax 24.1 19.2 3.9 31.7 19.1 ======== ======== ======= ======= ========= Summarised statements of totalrecognised gains and losses Profit (loss) retained for the 24.1 19.2 3.9 31.7 19.1yearUnrealised surplus (deficit) on 109.0 39.5 7.0 161.5 65.3revaluationTotal recognised gains and losses -------- -------- ------- ------- ---------relating to the financial year 133.1 58.7 10.9 193.2 84.4 ======== ======== ======= ======= ========= Summarised balance sheets Investment properties at valuation 589.4 604.5 51.8 1,316.7 1,190.3Development and trading properties 19.2 6.4 31.1 31.5at cost -------- -------- ------- ------- ---------Total properties 608.6 604.5 58.2 1,347.8 1,221.8Current assets 10.8 5.6 2.9 14.2 11.8Upstream loans to joint venture 35.8 26.5 28.2shareholdersCash and deposits 18.6 15.4 2.9 56.4 38.0 -------- -------- ------- ------- ---------Gross assets 638.0 625.5 99.8 1,444.9 1,299.8 -------- -------- ------- ------- ---------Current liabilities (52.9) (23.1) (32.7) (81.9) (65.8)Bank debt falling due within one (41.5) (0.1) (82.2) (21.4)yearBank debt falling due after one (93.8) (1.9) (412.4) (484.4)yearDebentures (114.8) (57.4) (62.0)Deferred tax (3.7) (0.1) (7.0) (8.0) -------- -------- ------- ------- ---------Gross liabilities (306.7) (23.1) (34.8) (640.9) (641.6) -------- -------- ------- ------- ---------Net external assets 331.3 602.4 65.0 804.0 658.2 ======== ======== ======= ======= ========= Represented by:Shareholder loans 39.8 (3.1) 40.2 71.6Ordinary shareholders' funds / 331.3 562.6 68.1 763.8 586.6Partners' capital -------- -------- ------- ------- ---------Total investment 331.3 602.4 65.0 804.0 658.2 ======== ======== ======= ======= ========= Capital commitments 0.5 2.5 32.6 12.9 ======== ======== ======= ======= ========= Contingent tax 84.5 33.2 4.0 112.8 81.5 ======== ======== ======= ======= ========= * British Land's share of negative goodwill is included in Current Liabilities, and amounts in total to £17.1m (2004 - £19.2m). 10. Joint ventures (continued) The movement for the year: Equity Loans Total £m £m £m --- --- ---At 1 April 2004 586.6 71.6 658.2Additions (0.2) 23.4 23.2Repayment of loans (54.8) (54.8)Share of profit attributable to joint ventures 31.7 31.7Dividends from joint ventures (15.8) (15.8)Revaluation 161.5 161.5 --------- --------- ---------At 31 March 2005 763.8 40.2 804.0 ========= ========= ========= The Group's share of joint venture external net debt as at 31 March 2005 was£495.6m (2004: £529.8m). The Group's share of the market value of the joint venture debt and derivativesas at 31 March 2005 was £8.5m more than the Group's share of the book value(2004: £14.9m). The Group's share of joint venture properties as at 31 March 2005 was £1,347.8m(2004: £1,221.8m). All companies are property investment companies registered in England and Walesunless otherwise stated. 11. Other investments and negative goodwill Other investments £m ---At 1 April 2004 17.2Additions 97.9Disposals (5.1)Related Shares:
British Land