Half Yearly Report

25th Feb 2009 07:00



25 February 2009

TOWN CENTRE SECURITIES PLC

Interim results for the six months ended 31 December 2008

Town Centre Securities PLC, the Leeds based property investment and development company, today announces its interim results, for the six months ended 31 December 2008. 

Financial highlights:

 

\* The valuation of our investment properties was carried out by Jones Lang LaSalle as at 31 December 2008

Operational highlights:

Commenting on the interim results, Chairman and Chief Executive Edward Ziff, said:

"Town Centre Securities PLC has demonstrated again the importance of a strong and reliable rental income stream. With focussed in-house management, the portfolio has been resilient and to date we have enjoyed success in re-letting to retail occupiers where voids and business failures have emerged. 

"Nevertheless we regard 2009 with caution and are working hard to prepare for any voids which may occur during the year. Our portfolio, particularly the Merrion Centre, has substantial exposure to "value for money" retailing which has stood us in good stead. The maxim of having the right tenant, in the right property, paying the right rent has never been more true."

For further information, please contact:

Town Centre Securities PLC	www.tcs-plc.com
Edward Ziff, Chairman and Chief Executive	0113 222 1234
Bob Bigley, Finance Director
Smithfield	0207 360 4900
Reg Hoare / Rebecca Whitehead

Notes to editors:

Town Centre Securities PLC is a property investment and development company. We aim to maximise shareholder returns over the long-term through the acquisition and active management of investments and developments, with secure and growing income in good and improving locations. 

  Chairman and Chief Executive's Report

I am pleased to report a strong income performance from our portfolio in the half year ended 31 December 2008 despite the most dramatic fall in commercial property values that I have ever seen. Our portfolio, particularly the Merrion Centre which represents 30% by valuation of the Company's investment property, has substantial exposure to "value for money" retailing which has stood us in good stead.

For the first time we publish a valuation of the Group's investment portfolio with our interim results. Given the unprecedented uncertainty in the property and financial markets I have considerable unease about the basis for performing a valuation and I regard the conventional presumption of willing buyer and willing seller to be unworkable in the absence of a willing lender. Nevertheless we are following what is currently viewed by others as "best practice" in including the valuation.

Results

Underlying property rents are similar to last year's levels. The reported rental from investment property of £11.9m (2007: £11.4m) includes rent receipts from the prior year following rent reviews.

Car park revenues increased by 14%, a reflection of sustained demand for city centre parking despite the recession. Overall property and administrative expenses were held at similar levels to 2007 despite car park expenses increasing with the growth in turnover.

Underlying profit before tax increased by 10% to £4.4m (2007: £4.0m) and with the benefit of REIT status we are not expecting a tax charge for the period. This resulted in underlying earnings per share increasing by 15% to 8.2p (2007: 7.1p). The deficit on revaluation of our property portfolio of £76.7m is the principal component of a statutory loss for the period of £72.9m (2007: profit of £62.5m). Basic earnings per share fell from 116.2p to a loss of 137.4p per share.The profit in the six months to 31 December 2007 benefited from the large tax credit in relation to conversion to a REIT. 

Net assets have fallen to £143.9m at 31 December 2008 (271p per share) from £223.0m (420p per share) at 30 June 2008.

Dividends

I am pleased to declare an interim dividend of 2.75p per share, held at the same level as last year, which will be paid as an ordinary dividend on 30 June 2009 to shareholders registered on 29 May 2009.

It is the Board's aspiration to hold the final dividend for 2009 at the same level as last year, 5.4p. This will depend on the outturn for the second half of the year, over which the business has a measure of control. It will also depend on further falls in property valuations over which the business has less control.

Review of Activities

We sold four retail properties in York and a small office property in Huddersfield for a consideration of £9.7m before costs. The prices achieved represented, in aggregate, a loss on disposal of £1.0m on the June 2008 valuations. We also sold our half share in Sheffield station car park for £8.7m, realising a profit of £0.9m after two years of ownership. These sales were reported in the Interim Management Statement in November 2008.

Occupancy levels remain satisfactory at 92% (30 June 2008: 97%). Voids are running at 8% of which 2% are in respect of property still undergoing refurbishment works. Plans for our retail store at Piccadilly Basin, which accounts for 4% of the void space, are gaining momentum as we test the market for a more innovative approach to running a lifestyle store from this location.

Rent collection at the December 2008 quarter days has been satisfactory; 95% was received in the first week and less than 2% is currently outstanding.

Bad debts of £0.5m were mainly in respect of the ILVA administration; other bad debts to date have been modest. Sadly we have seen other tenants enter administration but the impact on voids has been kept under control through active asset management and has often led to improved lettings. We believe that the wide spread of our tenants is a particular advantage in limiting our potential exposure to further problems

Rent reviews have also proved satisfactory and new lettings have been achieved, notably to Argos at our Rochdale retail park and to Home Bargains which will open at Easter in the former Woolworths store in the Merrion Centre. In difficult conditions the Merrion Centre has grown rental income and we have seen competition for units which have become vacant.

Against a background of pressure on rents and concern over the occupational market, we have focussed hard on control of overhead expenses which we will continue to reduce in 2009.

Development Projects

With financing scarcity and falling values, we would not consider meaningful investment in development projects or further refurbishment until the outlook changes significantly.

Progress on our refurbishment schemes at the Merrion Centre, Leeds and West Park, Harrogate is nearing completion.

Nevertheless we remain optimistic for the long term for our key development sites at Piccadilly Basin in Manchester city centre, situated in close proximity to Piccadilly station, and Whitehall Road, Leeds, a strong prospect for prestigious office development, also in close proximity to the main line railway station.

The Eastgate Quarters, Leeds retail scheme remains an important development for the city but patience will be required by all stakeholders in order to deliver it in the future.

Car Parking

The first half has been another period of strong performance and income growth. Clarence Dock, Leeds has performed ahead of our expectations and shown excellent growth. Our other car park operations at Whitehall Road and Piccadilly Basin have performed ahead of budget.

Financing

Total borrowings at 31 December 2008 were £202.6m, (£212.4m at 30 June 2008), of which £190m was at fixed rates averaging 5.5%. We have exchanged contracts on the sale of a further group of properties in York, due to complete on 27 February 2009 for a consideration of £10.7m, which will further reduce our borrowings.

Borrowings are long and medium term, comprising £150m, 5.375% debenture stock expiring in 2031 with the balance representing drawings against bank facilities due for renewal in 2012 and 2013.

At 31 December 2008, capital expenditure to complete the current refurbishment programme was approximately £2.5m.

Valuation

The valuation of our investment properties was carried out by Jones Lang LaSalle as at 31 December 2008 and included an external valuation of our multi-storey car parks at Clarence Dock, Leeds and Tariff Street, Manchester for the first time. The valuation of £337.2m (£6.0m of investment property is valued by the Directors) represents a like for like fall from 30 June 2008 of 18%, the result of disposals of £10.5m, refurbishment expenditure of £7.7m and a fall in value of £76.7m. This includes a fall in value of the Merrion Centre of 20%.

The net initial yield on the investment portfolio was 7.4% (30 June 2008: 6.1%) after adjustment for certain voids.

Risks and Uncertainties

The operational and financial risks facing the Group for the second half of the financial year are a function of the economic climate in general and the uncertainty surrounding the commercial property market. Occupancy levels and rental income have been strong in the first half but with a portfolio that is predominantly retail, we are wary of the potential impact of tenancy failures in 2009.

Clearly many property companies are being challenged by loan to value covenants and we are no exception. We have acted, and we continue to act to minimise the risk of breach of these covenants in the event that property values continue to fall sharply. We do not believe that there is any significant risk of breaching interest rate covenants.

Outlook

Town Centre Securities PLC has demonstrated again the importance of a strong and reliable rental income stream. With focussed in-house management, the portfolio has been resilient and to date we have enjoyed success in re-letting to retail occupiers where voids and business failures have emerged. 

Nevertheless we regard 2009 with caution and are working hard to prepare for any voids which may occur during the year. Our portfolio, particularly the Merrion Centre, has substantial exposure to "value for money" retailing which has stood us in good stead. The maxim of having the right tenant, in the right property, paying the right rent has never been more true.

Edward Ziff

Chairman and Chief Executive

25 February 2009 

  Consolidated Income Statement 

For the six months ended 31 December 2008

		6 months ended	6 months ended	Year ended
		31 December	31 December	30 June
		2008	2007	2008
		Unaudited	Unaudited	Audited
	Notes	£000	£000	£000
Gross revenue	2	14,251	13,445	26,382
Property expenses	3	(2,207)	(1,952)	(4,835)
Net revenue		12,044	11,493	21,547
Administrative expenses		(2,862)	(2,711)	(6,204)
Other income		207	332	504
(Loss)/profit on disposal of investment properties		(972)	4,195	3,246
Loss on disposal of other fixed assets		-	-	(18)
Profit/(loss) on disposal of investment in joint venture or subsidiary undertaking		861	-	(191)
Loss on disposal of listed investments		(95)	(524)	(773)
Valuation movement on investment properties		(76,676)	-	(75,327)
Operating (loss)/profit		(67,493)	12,785	(57,216)
Finance income		258	536	821
Finance costs		(5,694)	(5,699)	(11,170)
Share of post tax profits/(loss) from joint ventures		30	79	(61)
(Loss)/profit before taxation		(72,899)	7,701	(67,626)
Taxation credit	4	13	54,847	56,395
(Loss)/profit for the period		(72,886)	62,548	(11,231)
All (losses)/profits for the period are attributable to equity shareholders.
(Loss)/earnings per ordinary share of 25p each:	6
Basic		(137.4p)	116.2p	(21.0p)
Diluted		(137.4p)	116.1p	(21.0p)

The directors have approved an interim dividend of 2.75p per share (2007: 2.75p).The total cost of dividends paid in the period is £2.9m (six months to 31 December 2007: £2.9m).

  Consolidated Statement of Recognised Income and Expense 

For the six months ended 31 December 2008

	6 months ended	6 months ended	Year ended
	31 December	31 December	30 June
	2008	2007	2008
	Unaudited	Unaudited	Audited
	£000	£000	£000
(Loss)/profit for the period	(72,886)	62,548	(11,231)
Revaluation (losses)/gains on cash flow hedge	(1,335)	-	158
Revaluation losses on other investments	(2,082)	(1,178)	(1,925)
Total recognised (expense)/income for the period	(76,303)	61,370	(12,998)

All recognised (expense)/income for the period is attributable to the equity shareholders.

  Consolidated Balance Sheet 

As at 31 December 2008

		31 December	31 December	30 June
		2008	2007	2008
		Unaudited	Unaudited	Audited
	Notes	£000	£000	£000
Non-current assets
Investment properties	7	343,221	474,180	422,413
Property, plant and equipment	7	16,374	29,162	16,358
Investments in joint ventures	8	3,613	15,515	15,156
Unamortised tenant lease incentives		982	1,085	892
Fair value of derivative asset		-	-	158
Total non-current assets		364,190	519,942	454,977
Current assets
Investments		1,552	5,396	3,730
Trade and other receivables		5,578	3,052	3,865
Total current assets		7,130	8,448	7,595
Total assets		371,320	528,390	462,572
Current liabilities
Financial liabilities - borrowings		(1,934)	(11,726)	(4,720)
Trade and other payables		(14,374)	(13,804)	(16,446)
Fair value of derivative asset		(1,177)	-	-
Current tax liabilities		(4,279)	(4,328)	(4,431)
Total current liabilities		(21,764)	(29,858)	(25,597)
Net current liabilities		(14,634)	(21,410)	(18,002)
Non-current liabilities
Financial liabilities - borrowings		(200,697)	(191,630)	(207,638)
Other creditors		(4,947)	(8,366)	(6,326)
Deferred tax liabilities		-	(46)	-
Total non-current liabilities		(205,644)	(200,042)	(213,964)
Total liabilities		(227,408)	(229,900)	(239,561)
Net assets		143,912	298,490	223,011
Shareholders' equity
Called up share capital	9	13,287	13,286	13,287
Share premium account	10	185	181	185
Other reserves	10	(618)	559	717
Retained earnings	10	131,058	284,464	208,822
Total equity	11	143,912	298,490	223,011
Net assets per share		271p	562p	420p

  Consolidated Cash Flow Statement 

For the six months ended 31 December 2008

			Six months ended 31 December 2008 Unaudited			Six months ended 31 December 2007 Unaudited			Year ended 30 June 2008 Audited
	Notes	£000		£000	£000		£000	£000		£000
Cash flows from operating activities
Cash generated from operations	12			8,432			8,401			17,038
Interest paid				(6,158)			(6,042)			(12,558)
Interest received				46			33			162
Tax received/(paid)				13			2			(519)
Net cash from operating activities				2,333			2,394			4,123
Cash flows from investing activities
Purchases and refurbishment of investment properties		(8,691)			(17,978)			(32,193)
Property development and purchase of other fixed assets		(243)			(7,592)			(10,697)
Purchases of investments		-			(3,984)			(4,035)
Proceeds from sale of investment properties		9,504			27,495			34,546
Proceeds from sale of subsidiary undertaking or investment in joint venture		3,367			2,500			2,360
Proceeds from sale of property, plant and equipment		87			69			102
Proceeds from sale of investments		68			8,664			9,422
Dividends received from joint venture		-			-			100
Repayment of/(increase in) loans to joint ventures for purchases of investment property		9,278			(2,092)			(1,857)
Net cash generated from /(used in) investing activities				13,370			7,082			(2,252)
Cash flows from financing activities
Proceeds from issue of share capital		-			45			50
Purchase of own shares for Share Incentive Plan		-			(8)			-
(Repayment)/drawdown of other non-current borrowings		(7,000)			(8,000)			8,000
Repurchase of share capital		-			(4,477)			(4,415)
Dividends paid to shareholders		(2,870)			(2,870)			(4,334)
Net cash used in financing activities				(9,870)			(15,310)			(699)
Net (increase)/decrease in cash and cash equivalents				5,833			(5,834)			1,172
Cash and cash equivalents at 1 July				(4,720)			(5,892)			(5,892)
Cash and cash equivalents at period end				1,113			(11,726)			(4,720)

The Consolidated Cash Flow Statement should read in conjunction with Note 12.

  Notes to the Financial Statements

1. Basis of preparationThese interim financial statements were approved for issue on 25 February 2009.

These interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee ("IFRIC") interpretations and with those parts of the Companies Act 1985 and the listing rules application to companies reporting under IFRS.

These interim financial statements have been prepared under the historical cost convention as modified by the revaluation of land and buildings, available for sale investments, financial assets and liabilities held for trading and share-based payments. The principal accounting policies followed in the preparation of these interim financial statements are set out in the Group's Annual Report and Accounts for the year ended 30 June 2008 on pages 41 to 46.

The financial information included in these interim financial statements for the six months ended 31 December 2008 does not constitute a set of statutory accounts as defined in section 240 of the Companies Act 1985, and is unaudited. The comparative figures for the six months to 31 December 2007 were also unaudited. Statutory accounts for the year ended 30 June 2008 were approved by the Board of Directors on 10 September 2008 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 237(2) or (3) of the Companies Act 1985.

These interim financial statements for the half year ended 31 December 2008 have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34, 'Interim financial reporting' as adopted by the European Union.

2. Revenue and underlying profit before taxation

	6 months ended	6 months ended	Year ended
	31 December	31 December	30 June
	2008	2007	2008
	£000	£000	£000
Rental income from investment properties	11,891	11,382	22,7481
Income from car parks	2,360	2,063	4,168
	14,251	13,445	26,916
Property expenses	(926)1	(1,227)	(2,510)1
Car Park expenses	(928)	(725)	(1,400)
Administrative expenses	(2,862)	(2,711)	(5,922)1
	9,535	8,782	17,084
Joint venture income/(losses)	74	79	(214)
Other income	207	332	504
Interest	(5,436)	(5,163)	(10,349)
Underlying profit before tax	4,380	4,030	7,025

1excluding exceptional items - See Note 3

Notes to the Financial Statements continued

3. Non-recurring items

Gross revenue

	6 months ended	6 months ended	Year ended
	31 December	31 December	30 June
	2008	2007	2008
	£000	£000	£000
Rental income from investment properties	11,891	11,382	22,748
Income from car parks	2,360	2,063	4,168
Non-recurring items:
- Accelerated amortisation of tenant lease incentive	-	-	(534)
	14,251	13,445	26,382

Property expenses

	6 months ended	6 months ended	Year ended
	31 December	31 December	30 June
	2008	2007	2008
	£000	£000	£000
Irrecoverable property costs	626	701	1,384
Legal and professional fees	211	452	944
Car park expenses	928	725	1,400
Depreciation	60	53	111
Other	29	21	71
Non-recurring items:
- Exceptional inducement premiums paid	353	-	-
- Provision for void costs due to tenant administration	-	-	724
- Abortive acquisition costs	-	-	201
	2,207	1,952	4,835

  Notes to the Financial Statements continued

3. Non-recurring items (continued)

Administrative expenses

	6 months ended	6 months ended	Year ended
	31 December	31 December	30 June
	2008	2007	2008
	£000	£000	£000
Remuneration	1,996	2,028	4,232
Motor and travel expenses	128	138	297
Legal and professional	266	99	394
Depreciation	80	105	213
Charitable donations	79	62	108
IT costs	53	53	118
Other	260	226	560
Non-recurring items:
- Director's severance agreement	-	-	282
	2,862	2,711	6,204

4. Taxation

	6 months ended	6 months ended	Year ended
	31 December	31 December	30 June
	2008	2007	2008
	£000	£000	£000
Current tax
Tax expense for the period	-	210	169
Adjustment in respect of prior year	(13)	-	(343)
REIT conversion charge	-	10,841	9,723
Total current tax expense/(credit)	(13)	11,051	9,549
Deferred tax
Deferred tax expense for the period	-	-	-
Adjustment in respect of prior year	-	-	(20)
Released on conversion to REIT	-	(65,898)	(65,924)
Total deferred tax (credit)/expense	-	(65,898)	(65,944)
Total tax credit in the income statement	(13)	(54,847)	(56,395)

Notes to the Financial Statement continued

5. DividendsA final dividend in respect of 2008 of 5.4p per share was approved at the Company's Annual General Meeting on 20 November 2008 and paid to shareholders on 2 January 2009.

An interim dividend in respect of 2009 of 2.75p per share is also proposed. This amounts to an estimated dividend of £1.46m which has not been reflected in this report and which will be paid on 30 June 2009 to shareholders on the register on 30 May 2009.

6. (Loss)/earnings per share

	6 months ended 31 December 2008		6 months ended 31 December 2007		Year ended 30 June 2008
	(Loss)/earnings	(Loss)/earnings	Earnings	Earnings	(Loss)/earnings	(Loss)/earnings
		per share		per share		per share
	£000	pence	£000	pence	£000	pence
Basic (loss)/earnings and (loss)/earnings per share	(72,886)	(137.4)	62,548	116.2	(11,231)	(21.0)
REIT conversion charge & associated costs	-	-	10,841	20.1	9,723	18.2
Release of deferred taxation on conversion to REIT	-	-	(65,898)	(122.4)	(65,924)	(123.3)
Loss/(profit) on disposal of investment properties	972	1.8	(4,195)	(7.8)	(3,246)	(6.1)
Loss on disposal of listed investments	95	0.2	524	1.0	773	1.4
(Profit)/loss on disposal of shares in subsidiary undertaking or joint venture	(861)	(1.6)	-	-	191	0.4
Revaluation movement on investment properties	76,676	144.5	-	-	75,327	140.9
Exceptional inducement premiums paid	353	0.7	-	-	-	-
Provision for tenant administration	-	-	-	-	1,258	2.4
Director severance agreement	-	-	-	-	282	0.5
Abortive acquisition costs	-	-	-	-	201	0.4
Revaluation movement on investment properties in joint ventures	-	-	-	-	(169)	(0.3)
Underlying earnings and earnings per share	4,349	8.2	3,820	7.1	7,185	13.5

Notes to the Financial Statements continued 

6. (Loss)/earnings per share (continued)

Earnings per share is calculated on the weighted average of 53.1m ordinary shares in issue (31 December 2007: 53.8m, 30 June 2008: 53.5m).The diluted (loss)/earnings per share as at 31 December 2008 is (137.4p) per share and underlying: 8.2p (31 December 2007: 116.1p, underlying: 7.1p; 30 June 2008: (21.0p), underlying: 13.4p).

7.Tangible fixed assetsa) Investment properties

		Long
	Freehold	leasehold	Total
	£000	£000	£000
Valuation at 1 July 2008	402,716	19,697	422,413
Additions	7,802	158	7,960
Disposals	(9,620)	(856)	(10,476)
Decrease in value on revaluation	(74,075)	(2,601)	(76,676)
Balance at 31 December 2008	326,823	16,398	343,221

b) Property, plant and equipmentDevelopment properties

	£000
Cost at 1 July 2008	15,715
Additions	230
Net book value at 31 December 2008	15,945

Fixtures, equipment and motor vehicles

	£000
Net book value at 1 July 2008	643
Additions	17
Disposals	(135)
Depreciation	(96)
Net book value at 31 December 2008	429
Total property, plant and equipment at 31 December 2008	16,374

  Notes to the Financial Statements continued 

8. Investments in joint ventures

	6 months ended	6 months ended	Year ended
	31 December	31 December	30 June
	2008	2007	2008
	£000	£000	£000
Interest in joint ventures
At 1 July
Net assets	4,100	4,261	4,261
Loans	11,056	8,540	8,540
	15,156	12,801	12,801
Shares disposed in period	(2,506)	-	-
Share of profits/losses after tax	30	79	(61)
Dividend paid in year	-	-	(100)
Loan movement in period	(9,067)	2,635	2,516
	3,613	15,515	15,156

9. Called up equity share capitalAuthorised164,879,000 (30 June 2008: 164,879,000) ordinary shares of 25p each.

Issued and fully paid

	Number	Nominal
	of shares	value
	000	£000
At 1 July 2008	53,149	13,287
At 31 December 2008	53,149	13,287

10. Reserves

	Capital			Share
	redemption	Hedging	Other	Premium	Retained
	reserve	reserve	reserves	Account	earnings
At 1 July 2008	559	158	717	185	208,822
Retained loss for the period	-	-	-	-	(75,756)
Reversal of historic loss on revaluation of investments recognised in profit in period	-	-	-	-	67
Decrease in market value of investments	-	-	-	-	(2,082)
Cash flow hedge - fair value losses in period	-	(1,335)	(1,335)	-	-
Arising on purchase and cancellation of own shares	-	-	-	-	-
New share capital subscribed	-	-	-	-	-
Other adjustments	-	-	-	-	7
Closing shareholders' equity	559	(1,177)	(618)	185	131,058

Notes to the Financial Statements continued 

11. Statement of changes in shareholders' equity

	6 months ended	6 months ended	Year ended
	31 December	31 December	30 June
	2008	2007	2008
	£000	£000	£000
Profit/(loss) for the period	(72,886)	62,548	(11,231)
Dividends	(2,870)	(2,870)	(4,332)
	(75,756)	59,678	(15,563)
Other adjustments	7	-	-
Arising on purchase and cancellation of own shares	-	(4,020)	(4,021)
Release of retained earnings on disposal of subsidiary undertaking	-	(242)	-
Surplus on revaluation of own shares held	-	-	60
Cash flow hedge - fair value losses in period	(1,335)	-	158
New share capital subscribed	-	45	50
Deficit on revaluation of investments	(2,082)	(1,178)	(1,925)
Reversal of historic loss/(surplus) on revaluation of investments recognised in loss for period	67	(71)	(34)
Consideration paid for purchase of own shares (held in trust)	-	(8)	-
Net increase/(decrease) in shareholders' equity	(79,099)	54,204	(21,275)
Opening shareholders' equity	223,011	244,286	244,286
Closing shareholders' equity	143,912	298,490	223,011

Notes to the Financial Statements continued

12. Cash flow from operating activities

	6 months ended	6 months ended	Year ended
	31 December	31 December	30 June
	2008	2007	2008
	£000	£000	£000
(Loss)/profit for the period	(72,886)	62,548	(11,231)
Adjustments for:
Tax	(13)	(54,847)	(56,395)
Depreciation	145	158	324
Loss/(profit) on disposal of investment properties	972	(4,195)	(3,246)
(Profit)/loss on disposal of subsidiary undertaking or joint venture	(861)	(20)	191
Realised losses on disposal of property, plant and equipment and listed investments	102	535	791
Finance income	(258)	(536)	(821)
Finance costs	5,694	5,699	11,170
Share of joint venture (profits)/losses after tax	(30)	(79)	61
Movement in revaluation of investment properties	76,676	-	75,327
Decrease/(increase) in debtors	1,244	851	232
(Decrease)/increase in creditors	(2,353)	(1,713)	635
Cash generated from operations	8,432	8,401	17,038

Responsibility Statement of the Directors 

Six months ended 31 December 2008

We confirm that to the best of our knowledge:

a)	The unaudited interim financial statements have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting”;
b)	The interim management report includes a fair review of the information required by Sections DTR 4.2.7R and DTR 4.2.8R of the Disclosure and Transparency Rules of the United Kingdom’s Financial Services Authority; and
c)	The unaudited interim financial statements have been prepared in accordance with the basis of preparation outlined in Note 1 to the accounts.

 

Edward ZiffChairman and Chief Executive

Bob BigleyFinance Director

25 February 2009

ENDIR KZLFLKLBBBBK

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