13th Jun 2006 07:00
Conygar Investment Company PLC(The)13 June 2006 13 June 2006 The Conygar Investment Company PLC ("Conygar" or the "Company") Interim Results for the six months ended 31 March 2006 Conygar Investment Company PLC, the property company, announces its interimresults for the six months to 31 March 2006 Chairman's Statement I am pleased to announce a period of significant progress for the company.During the last six months, we raised £10.31 million through a placing ofordinary shares at 116 pence per share. This was carried out in order tosatisfy investor demand, widen the ownership of the company's shares and tostrengthen the company's balance sheet. At the same time, it was decided toreorganise the board in order to reflect the new scale of the company and togive greater clarity and focus to the business. I agreed to becomenon-executive chairman with Robert Ware becoming chief executive. On 28 April 2006, we exchanged contracts to acquire a terrace of fourteen officeproperties in Bedford Square, London WC1 for a total cash consideration(including costs) of £57.81 million. The Royal Bank of Scotland provided a£52.75 million non-recourse structured finance facility whilst the companyinvested around £4.95 million in equity with the balance of considerationprovided from a third party investment. The transaction completed on 15 May2006. The properties comprise approximately 95,516 square feet of officeaccommodation of which 11,952 square feet is currently vacant and whichrepresents a refurbishment opportunity. Current income is approximately £2.62million per annum. Several of the properties are currently being marketed andare attracting considerable interest. The company will be entitled to 75 percent of any profit realised. Progress continues apace with the £100 million marina development at PembrokeDock waterfront in which we hold a 50 per cent interest. Work in obtainingplanning consent is ongoing and we are aiming to make significant progresstowards securing consent by the end of this year. That said, we remain cautiousas the planning process can be frustrating, however there is a considerable willat local level to see this project move forward, a fact from which we draw muchcomfort. We are expecting this project to progress significantly over the nextsix months and so hope to be in a position where we can give a more detailedupdate with our full year results. During the period, the company recorded a small loss of £37,000. Cash balancesat 31 March 2006 amounted to £15.67 million including our share of cash held injoint ventures. The company continues to control administrative overhead byundertaking as much work in-house as possible in order to avoid incurringexcessive professional fees. This is particularly important where the companyis seeking opportunities, many of which will not meet our criteria in terms ofrisk and return. Prospects The board continues to be confident about the future prospects of the companyand in particular given the recent acquisition of properties in Bedford Square.Combined with the marina development at Pembroke Dock waterfront and thecontinuing pipeline of opportunities, the company is well positioned. As alwayswe will continue to keep shareholders informed of progress. N J HamwayChairman 12 June 2006 The Conygar Investment Company PLCConsolidated Profit and Loss AccountFor the six months ended 31 March 2006 Unaudited Audited Six months ended Year Ended 31 March 2006 31 March 2005 30 Sept 2005 Notes £'000 £'000 £'000TurnoverGroup and share of joint venture's turnover - 80 9,691Less share of joint venture's turnover - (80) (9,179) - - 512 Cost of Sales - - (397)Gross Profit - - 115 Administrative expenses (150) (127) (399)Operating Loss (150) (127) (284)Share of operating (loss) / profit of joint (2) 72 963venture (152) (55) 679 Income from current asset investments - 24 24 Interest receivable and similar incomeGroup 97 71 121Joint Venture 18 5 23 Interest payable and similar chargesGroup - - -Joint Venture - (67) (320) (Loss) / Profit on Ordinary Activities beforeTaxation (37) (22) 527 Taxation on (loss) / profit on ordinary - - (171)activities (Loss) / Profit on Ordinary Activities after (37) (22) 356Taxation Dividends - - - (Loss) / Profit for the Financial Period (37) (22) 356 Earnings per share (pence) 2Basic (0.36)p (0.23)p 3.66pFully diluted (0.33)p (0.21)p 3.43p Turnover and operating profit in all periods relate wholly to continuingactivities. No separate Statement of Total Recognised Gains and Losses has been presented asall such gains and losses have been dealt with in the profit and loss account. The Conygar Investment Company PLCConsolidated Balance SheetAs at 31 March 2006 Unaudited Audited Six months ended Year Ended 31 March 2006 31 March 2005 30 Sept 2005 £'000 £'000 £'000Fixed AssetsTangible Fixed Assets 3 - 4 Investment in joint venture Share of gross assets 497 7,186 687 Share of gross liabilities (215) (5,076) (223) 282 2,110 464 285 2,110 468Current AssetsDebtors 85 90 60Investments - 364 -Cash at bank 15,190 2,334 4,839 15,275 2,788 4,899 Current liabilitiesCreditors: amounts falling within one year 47 44 135Net Current Assets 15,228 2,744 4,764Total assets less current liabilities 15,513 4,854 5,232 Capital and reservesCalled-up equity share capital 932 486 486Share premium account 14,294 4,427 4,427Profit and loss account 282 (59) 319Equity Shareholders' Funds 15,508 4,854 5,232 Minority Interest 5 - -Total Equity 15,513 4,854 5,232 The comparative figures for the year ended 30 September 2005 are an extract ofthe company's statutory accounts for that financial period. Those accounts havebeen reported upon by the company's auditors and delivered to the Registrar ofCompanies. The report of the auditors was unqualified and did not contain astatement under Section 237(2) or (3) of the Companies Act 1985. The Conygar Investment Company PLCReconciliation of Movements in Equity Shareholders' fundsFor the six months ended 31 March 2006 Unaudited Audited Six months ended Year Ended 31 March 2006 31 March 2005 30 Sept 2005 £'000 £'000 £'000 (Loss) / Profit for the period attributable to (37) (22) 356shareholdersDividends - - - (37) (22) 356Issue of share capital (net of expenses) 10,313 - - Net movement in equity shareholders' funds 10,276 (22) 356Opening equity shareholders' funds 5,232 4,876 4,876 Closing equity shareholders' funds 15,508 4,854 5,232 The Conygar Investment Company PLCConsolidated Cash Flow StatementFor the six months ended 31 March 2006 Unaudited Audited Six months ended Year Ended 31 March 2006 31 March 2005 30 Sept 2005 Notes £'000 £'000 £'000 Net cash (outflow) / inflow from operating a (238) (106) 231activities Returns on the investments and servicing offinanceDividend received from joint venture 200 - -Other dividends received - 10 34Interest received 95 78 127Net cash flow from returns on investments 295 88 161and servicing of finance Cash inflow / (outflow) before management of 57 (18) 392liquid resources and financing Management of liquid resources(Increase) / Decrease in funds placed on short (46) 2,355 2,308term deposit Acquisitions and disposalsInvestment in joint venture (19) (2,100) (1)Capital expenditure - - (4) FinancingIssue of equity share capital 446 - -Share premium on issue of equity share capital 9,867 - -Net cash inflow from financing 10,313 - - Increase in cash b 10,305 237 2,695 Notes to the Consolidated Cash Flow StatementFor the six months ended 31 March 2006 a) Reconciliation of operating loss to net cash outflow from operating activities Unaudited Audited Six months ended Year Ended 31 March 2006 31 March 2005 30 Sept 2005 £'000 £'000 £'000 Operating loss (150) (127) (284)Increase / (Decrease) in debtors - (28) 9Decrease in current asset investments - 33 397(Decrease) / Increase in creditors (88) 16 109 Net cash (outflow) / inflow from operating activities (238) (106) 231 b) Reconciliation of net cash flow to movement in net funds Unaudited Audited Six months ended Year Ended 31 March 2006 31 March 2005 30 Sept 2005 £'000 £'000 £'000 Increase in cash in the period 10,305 237 2,695Cash (inflow)/outflow to short term deposits 46 (2,355) (2,308)Movement in net funds 10,351 (2,118) 387Opening net funds 4,839 4,452 4,452Closing net funds 15,190 2,334 4,839 c) Analysis of changes in net funds At At 1 October 2005 Cashflows 31 March 2006 £'000 £'000 £'000 Net cash:Cash in hand and at bank 2,747 10,305 13,052Short term deposits* 2,092 46 2,138Net funds 4,839 10,351 15,190 * Short term deposits are included within cash at bank in the balance sheet. The Conygar Investment Company PLCNotes to the Interim ResultsFor the six months ended 31 March 2006 1. Basis of Preparation The interim results for the period ended 31 March 2006 have been prepared inaccordance with applicable United Kingdom accounting standards and areunaudited. They do not comprise full financial statements within the meaning ofthe Companies Act 1985 and have neither been reported upon by the auditors underSection 235 of the Companies Act 1985 nor reviewed in accordance with AccountingPractice Board Bulletin 1999/4. The board of directors approved the above results on 12 June 2006. Copies of the interim report may be obtained from the Company Secretary, TheConygar Investment Company PLC, First Floor, 122 Wigmore Street, London W1U 3RX. 2. Earnings per Share The calculation of earnings per ordinary share is based on the loss after tax of£37,000 and on the number of shares in issue being the weighted average numberof shares in issue during the period of 10,310,621. The weighted average numberof shares on a fully diluted basis was 11,065,621. No adjustment has been madein respect of the exercise of options which were anti-dilutive throughout theperiod. The total number of ordinary shares in issue at the date of this reportwas 18,649,406. Enquiries The Conygar Investment Company PLC Robert Ware 020 7725 0360Peter Batchelor The directors of Conygar accept responsibility for the information contained inthis announcement. To the best of the knowledge and belief of the directors ofConygar (who have taken all reasonable care to ensure that such is the case) theinformation contained in this announcement is in accordance with the facts anddoes not omit anything likely to affect the import of such information. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Conygar Inv