17th May 2005 07:02
Land Securities Group Plc17 May 2005 PART 2 Consolidated profit and loss account for the year ended 31 March 2005 Notes Before Exceptional Total Before Exceptional Total exceptional items 2005 exceptional items 2004 items £m £m items £m £m £m £m Gross 2 1,641.4 - 1,641.4 1,285.8 - 1,285.8 property income - Group Plus 2 224.3 - 224.3 195.3 - 195.3 share of joint ventures -------------- -------------- -------------- -------------- -------------- -------------- Gross 2 1,865.7 - 1,865.7 1,481.1 - 1,481.1 property income - Total =============== =============== =============== ============== =============== ============== Operating 2 508.8 (14.8) 494.0 464.7 - 464.7 profit / (loss) - Group Share of 2 139.6 - 139.6 101.1 - 101.1 operating profits of joint ventures -------------- -------------- -------------- -------------- -------------- -------------- Operating 648.4 (14.8) 633.6 565.8 - 565.8 profit / (loss) Profit on 2 - 112.9 112.9 - 52.0 52.0 sales of fixed asset properties - Group Profit on 2 - 12.3 12.3 - 11.9 11.9 sales of fixed asset properties - joint ventures -------------- -------------- -------------- -------------- -------------- -------------- Profit / 2 648.4 110.4 758.8 565.8 63.9 629.7 (loss) on ordinary activities before interest and taxation Net 4 (176.4) (667.3) (843.7) (174.4) - (174.4) interest payable by Group Net 4 (70.9) - (70.9) (82.2) - (82.2) interest payable by joint ventures -------------- -------------- -------------- -------------- -------------- -------------- Profit / 401.1 (556.9) (155.8) 309.2 63.9 373.1 (loss) on ordinary activities before taxation Taxation 5 (95.0) 215.0 120.0 (103.1) 18.3 (84.8) -------------- -------------- -------------- -------------- -------------- -------------- Profit / 306.1 (341.9) (35.8) 206.1 82.2 288.3 (loss) on ordinary activities after taxation Dividends 6 (202.5) - (202.5) (173.2) - (173.2) -------------- -------------- -------------- -------------- -------------- -------------- Retained 13 103.6 (341.9) (238.3) 32.9 82.2 115.1 profit / (accumulated loss) for the financial year =============== =============== =============== ============== =============== ============== Notes 2005 2004 pence pence (Loss)/earnings per share Basic (loss)/earnings per share 7 (7.69) 61.84 Diluted basic (loss)/earnings per share 7 (7.66) 61.76 Adjusted earnings per share 7 68.67 47.86 Adjusted diluted earnings per share 7 68.41 47.80 Dividends per share 6 43.25 37.10 All income was derived from within the United Kingdom from continuingoperations. No operations were discontinued during the year. Statement of total recognised gains and losses for the year ended 31 March 2005 2005 2004 £m £m (Loss) / profit on ordinary activities after taxation (35.8) 288.3 Unrealised surplus on revaluation of investment properties 842.2 400.7 Unrealised surplus on revaluation of joint venture's investment properties 29.3 6.2 Taxation on revaluation surpluses realised on sales of investment properties (40.3) (27.3) ------ ------ Total gains and losses recognised since the last financial statements 795.4 667.9 ====== ====== Note of historical cost profits and losses 2005 2004 £m £m (Loss) / profit before taxation (155.8) 373.1 Revaluation surplus arising in previous years now realised on sales of 280.7 333.0 investment properties ------ ------ Historical cost profit on ordinary activities before taxation 124.9 706.1 Taxation 120.0 (84.8) Taxation on revaluation surpluses realised on sales of investment properties (40.3) (27.3) ------ ------ Historical cost profit on ordinary activities after taxation 204.6 594.0 Dividends (202.5) (173.2) ------ ------ Historic cost retained profit for the financial year 2.1 420.8 ====== ====== Balance sheet at 31 March 2005 Group Group Notes 2005 2004 £m £m Fixed assets Intangible assets Goodwill 31.9 34.3 Negative goodwill (6.3) - 25.6 34.3 Tangible assets Investment portfolio properties 9 8,737.1 7,880.9 Outsourcing properties 9 546.3 769.2 Total properties 9 9,283.4 8,650.1 Other tangible fixed assets 57.9 51.0 9,341.3 8,701.1 Investment in joint ventures (excluding Telereal) Share of gross assets of joint ventures 10 634.3 257.2 Share of gross liabilities of joint ventures 10 (125.7) (5.1) 508.6 252.1 -------------- -------------- 9,875.5 8,987.5 -------------- -------------- Current assets Stocks 150.9 85.0 Debtors falling due within one year 496.2 339.7 Debtors falling due after one year 33.4 20.4 Investments: short term deposits 2.8 219.0 Cash at bank and in hand 8.3 22.8 -------------- -------------- 691.6 686.9 Creditors falling due within one year (822.1) (1,371.2) -------------- -------------- Net current liabilities (130.5) (684.3) -------------- -------------- Total assets less current liabilities 9,745.0 8,303.2 Creditors falling due after one year Debentures, bonds and loans 11 (2,856.9) (1,995.9) Other creditors (46.8) (35.9) Provision for liabilities and charges 12 (133.6) (185.0) Investment in joint venture (Telereal) Share of gross assets of joint venture 10 1,065.9 1,108.0 Share of gross liabilities of joint venture 10 (1,137.0) (1,155.9) (71.1) (47.9) -------------- -------------- 6,636.6 6,038.5 ============== ============== Capital and reserves Called up share capital 13 46.8 55.0 Own shares acquired 13 (2.1) - Share premium account 13 31.4 15.9 Capital redemption reserve 13 30.5 22.1 Revaluation reserve 13 3,703.6 3,112.8 Profit and loss account 13 2,826.4 2,832.7 -------------- -------------- Shareholders' funds (including non-equity interests) 13 6,636.6 6,038.5 ============== ============== Net assets per share (basic) 8 1419p 1294p Adjusted net assets per share (diluted) 8 1460p 1331p F W SalwayA E Macfarlane Directors Consolidated cash flow statement for the year ended 31 March 2005 2005 2004 £m £m Net cash inflow from operating activities 506.4 456.4 Distributions received from joint venture 214.1 51.0 Interest (paid to) / received from joint venture (0.3) 7.6 Returns on investments and servicing of finance Interest received 10.0 16.1 Interest paid (221.5) (221.1) Cost of purchase and redemption of bonds and debenture debt (116.3) - Cost of cancellation of interest rate swaps (42.0) - Cost of debt refinancing (17.6) (21.1) Net cash outflow from investments and servicing of finance (387.4) (226.1) Taxation (Corporation tax received / (paid)) 3.6 (37.1) -------------- -------------- Net cash inflow from operating activities and investments after finance charges 336.4 251.8 Capital expenditure Development programme expenditure (215.3) (190.2) Acquisition of investment properties (387.6) (205.1) Other investment property related expenditure (primarily refurbishment costs) (37.8) (111.0) Capital expenditure associated with property outsourcing (122.5) (234.5) Capital expenditure on properties (763.2) (740.8) Sale of fixed asset investment properties 378.8 698.2 Sale of fixed asset operating properties 355.3 2.0 Net expenditure on properties (29.1) (40.6) Net expenditure on non-property related fixed assets (19.3) (8.2) Net cash outflow from capital expenditure (48.4) (48.8) Acquisitions Acquisition of Slough Estates retail property portfolio (Note 17) (5.4) - (Advances) / repayment of loan capital by joint ventures (105.0) 121.0 Equity dividends paid (175.5) (167.5) -------------- -------------- Cash inflow before use of liquid resources 2.1 156.5 Management of liquid resources (Investments: short term deposits) 216.2 (215.6) Financing Issue of shares 13.6 2.7 Purchase of own share capital (non-equity B shares) (8.4) (22.0) (Decrease) / increase in debt (238.0) 22.0 Net cash (outflow) / inflow from financing (232.8) 2.7 -------------- -------------- Decrease in cash in year (14.5) (56.4) ============== ============== Reconciliation of net cash flow to movements in net debt 2005 2004 £m £m Decrease in cash in year (14.5) (56.4) Cash outflow from increase in liquid resources (216.2) 215.6 Cash outflow / (inflow) from decrease / (increase) in debt 238.0 (22.0) -------------- -------------- Change in net debt resulting from cash flow 7.3 137.2 Non-cash changes in debt (494.6) 16.3 -------------- -------------- Movement in net debt in year (487.3) 153.5 Net debt at 1 April (2,435.8) (2,589.3) -------------- -------------- Net debt at 31 March (2,923.1) (2,435.8) ============== ============== Reconciliation of Group operating profit to net cash inflow from operating 2005 2004 activities £m £m Operating profit - Group 494.0 464.7 Depreciation and amortisation 37.1 31.5 Increase in stocks (33.2) (3.6) Increase in debtors (91.5) (91.9) Increase in creditors and provisions 100.0 55.7 -------------- -------------- Net cash inflow from operating activities 506.4 456.4 ============== ============== Notes to the financial statements for the year ended 31 March 2005 1. Basis of preparation The financial information is abridged and does not constitute the Group's fullFinancial Statements for the years ended 31 March 2004 and 31 March 2005. Full Financial Statements for the year ended 31 March 2004 (which received anunqualified audit report) have been filed with the Registrar ofcompanies. Financial Statements for the year ended 31 March 2005 will bepresented to the Members at the forthcoming Annual Generalmeeting; the auditors have indicated that their report on these FinancialStatements will be unqualified. 2. Segmental information An analysis of turnover, profit before interest and taxation, and net assets bybusiness sector is set out below. The business sectors consist ofproperty investment (which comprises the investment portfolio and developmentactivities) and property outsourcing. Business Business Business Analy Analys Business Business Business Analysis Analysis of sectors sectors sectors sis of is of sectors sectors sectors of total total including including inclu total total incl including including results results the the ding re re uding the the between between results results the sults sults the results results Group and Group and of of results be be results of of joint share of share of joint joint of tween tween of joint ventures joint joint ventures ventures joint Group Group joint ventures ventures ventures ventures and and ventures share share of of joint joint ven ven tures tures (i) Property Property Total Group Share Property Property Total Group Share of Profit invest out 2005 2005 of invest out 2004 2004 joint and loss ment sourcing £m £m joint ment sourcing £m £m ventures account 2005 2005 ven 2004 2004 2004 £m £m tures £m £m £m 2005 £m Rental 518.5 - 518.5 492.6 25.9 515.1 - 515.1 514.5 0.6 income (Note (a)) Service 79.2 - 79.2 71.8 7.4 65.6 - 65.6 65.6 - charges and other recoveries Unitary - 730.2 730.2 593.2 137.0 - 572.6 572.6 436.3 136.3 charge Capital - 187.9 187.9 159.6 28.3 - 216.3 216.3 186.8 29.5 projects and other reimbursable costs Third - 10.5 10.5 10.5 - - 13.1 13.1 13.1 - party rents Property - 928.6 928.6 763.3 165.3 - 802.0 802.0 636.2 165.8 services income Long 191.2 - 191.2 191.2 - 49.6 - 49.6 49.6 - term contract income Proceeds 22.3 125.9 148.2 122.5 25.7 19.9 28.9 48.8 19.9 28.9 of sales of trading properties -------- -------- ------- ------ ------ -------- -------- -------- -------- -------- Gross 811.2 1,054.5 1,865.7 1,641.4 224.3 650.2 830.9 1,481.1 1,285.8 195.3 property income Rents (15.1) (215.0) (230.1) (193.4) (36.7) (14.9) (164.7) (179.6) (139.7) (39.9) payable Other (104.2) (446.5) (550.7) (542.0) (8.7) (87.1) (422.7) (509.8) (509.8) - direct property or contract expenditure (Note (b)) Indirect (49.4) (23.8) (73.2) (55.8) (17.4) (44.5) (30.4) (74.9) (56.8) (18.1) property or contract expenditure Long (179.6) - (179.6) (179.6) - (49.6) - (49.6) (49.6) - term contract expenditure Bid - (2.6) (2.6) (2.6) - - (6.2) (6.2) (6.2) - costs Costs of (15.9) (104.4) (120.3) (112.2) (8.1) (18.2) (23.3) (41.5) (18.2) (23.3) sales of trading properties -------- -------- ------- ------ ------ -------- -------- -------- -------- -------- Operating 447.0 262.2 709.2 555.8 153.4 435.9 183.6 619.5 505.5 114.0 profit before depreciat ion and amortisation Depreciat (3.8) (42.8) (46.6) (32.8) (13.8) (4.1) (36.4) (40.5) (27.6) (12.9) ion Amortisat - (2.4) (2.4) (2.4) - - (2.4) (2.4) (2.4) - ion of goodwill -------- -------- ------- ------ ------ -------- -------- ----------- ----------- ------------ 443.2 217.0 660.2 520.6 139.6 431.8 144.8 576.6 475.5 101.1 Profit 82.4 42.8 125.2 112.9 12.3 52.1 11.8 63.9 52.0 11.9 on sale of fixed asset properties -------- --------- ------- ------ ------ -------- -------- -------- -------- -------- Segment 525.6 259.8 785.4 633.5 151.9 483.9 156.6 640.5 527.5 113.0 profit ======= ======== ======= ====== ====== ====== ======= ======= ====== ======= Common (11.8) (10.8) costs (Note (c)) Exceptional (14.8) - costs of debt restructuring ------- -------- Profit 758.8 629.7 on ordinary activities before interest and taxation ======= ======= Notes (a) Rental income includes £8.9m (2004: £9.3m) of rent receivable allocated torent free periods. (b) Other direct property or contract expenditure includes pre-commitment costswritten off of £3.4m (2004: £2.4m). (c) Common costs are costs associated with central Group management. 2. Segmental information continued (ii) Net Property Property Total Property Property Total assets investment outsourcing 2005 investment outsourcing 2004 £m £m £m £m £m £m Properties 745.0 - 745.0 732.2 - 732.2 in development programme (Note 9) Other 7,992.1 - 7,992.1 7,148.7 - 7,148.7 investment properties (within the investment property portfolio) Investment - 25.2 25.2 - - - properties relating to the Barclays contract (property outsourcing) Operating - 521.1 521.1 - 769.2 769.2 properties Goodwill and 3.3 80.2 83.5 9.1 76.2 85.3 other tangible fixed assets ------------- ------------- ------------- ------------- ------------- ------------- Fixed assets 8,740.4 626.5 9,366.9 7,890.0 845.4 8,735.4 Investment 508.6 (71.1) 437.5 252.1 (47.9) 204.2 in joint ventures Net current 79.5 18.2 97.7 (139.0) 44.2 (94.8) assets / (liabilities) (excluding financing and dividends) -------------- ------------ ----------- ------------- ------------- ------------ 9,328.5 573.6 9,902.1 8,003.1 841.7 8,844.8 -------------- ------------ ------------- ------------- Financing (3,085.1) (2,585.4) and dividends payable Long term (180.4) (220.9) liabilities and provisions --------------- -------------- Net assets 6,636.6 6,038.5 =============== ============== 3. Revenue profit Group Share of joint Total Group Share of joint Total £m ventures 2005 £m ventures 2004 £m £m £m £m (Loss) / (236.8) 81.0 (155.8) 342.3 30.8 373.1 profit on ordinary activities before taxation Profit on (112.9) (12.3) (125.2) (52.0) (11.9) (63.9) sale of fixed asset properties Exceptional 682.1 - 682.1 - - - costs of debt restructuring --------------- --------------- --------------- --------------- ---------------- ----------------Revenue 332.4 68.7 401.1 290.3 18.9 309.2 profit before taxation =============== ================ =============== =============== ================ ================ 4. Net interest payable Group Share of joint Total Group Share of joint Total £m ventures 2005 £m ventures 2004 £m £m £m £m Interest payable Borrowings not wholly (149.9) (73.6) (223.5) (154.7) (76.9) (231.6) repayable within five years Borrowings wholly (55.5) - (55.5) (70.4) - (70.4) repayable within five years Other interest payable (0.9) - (0.9) (1.0) - (1.0) Loans from joint venture (0.3) - (0.3) - (7.6) (7.6) partners --------- --------- --------- --------- --------- --------- (206.6) (73.6) (280.2) (226.1) (84.5) (310.6) Interest capitalised in 20.2 - 20.2 35.6 - 35.6 relation to properties under development --------- --------- --------- --------- --------- --------- . (186.4) (73.6) (260.0) (190.5) (84.5) (275.0) Interest receivable Short term deposits 7.3 2.5 9.8 5.7 2.3 8.0 Other interest receivable 2.7 - 2.7 2.8 - 2.8 Loan to joint venture - 0.2 0.2 7.6 - 7.6 --------- --------- --------- --------- --------- --------- Net interest payable - (176.4) (70.9) (247.3) (174.4) (82.2) (256.6) ordinary ======= ======= ======= ======= ======= ======= Cost of purchase and (625.3) - (625.3) - - - redemption of bonds and debenture debt Cost of cancellation of (42.0) - (42.0) - - - interest rate swaps --------- --------- --------- --------- --------- --------- Net interest payable - (667.3) - (667.3) - - - exceptional ======= ======= ======= ======= ======= ======= Interest has been capitalised at the Group's pre-tax weighted average borrowingrate for non-specific borrowings for the year of 6.8% (2004: 7.7%).Non-specific borrowings exclude certain bank debt which is specific to the PRIMEcontract. Group interest payable on borrowings includes £3.2m (2004: £4.8m) in respect ofthe amortisation of bond discounts and issue expenses. 5. Taxation 2005 2004 £m £mAnalysis of tax charge for the year Corporation tax on Group (loss) / profit for the period at 30% (2004: 30%) (60.8) 73.3Adjustments to current tax in respect of prior periods (26.0) (1.5)Share of joint ventures' current tax 26.5 14.7 --------- ---------Total current tax (60.3) 86.5 --------- ---------Deferred tax on Group timing differences arising in the year (39.4) 31.5Deferred tax released in respect of property disposals in the year (20.3) (31.6)Share of joint ventures' deferred tax - (1.6) --------- ---------Total deferred tax (59.7) (1.7) --------- ---------Tax (credit) / charge for the year (120.0) 84.8 ======= ======= 2005 2004 £m £mRelated Shares:
Land Securities