14th Jul 2008 07:00
St. Modwen Properties PLC
Interim results for the six months to 31st May 2008
St. Modwen Properties PLC, the UK's leading regeneration specialist, announces continued progress in uncertain market conditions.
Highlights
* Loss before tax of £20.0m (2007: £65.1m profit) after net revaluation write-down of £31.8m
* Net assets per share reduced in the period by 4% to 371p (30th November 2007 - 387p)
* Interim dividend maintained at 3.9p per share
* Asset management gains of £27.0m contributed to mitigating revaluation write down
* Strong progress in marshalling projects for future delivery
* Completed acquisition from BP of 1,000 acre former oil refinery at Llandarcy, near Neath and planning consent obtained
for 4,000 homes and 0.5 million sq ft employment space on the site.
Anthony Glossop, Chairman, reporting on the period said:
"Future market conditions remain uncertain, and macro-economic signals continue to deteriorate. However, our confidence in the longer-term remains undiminished. Our hopper is at record levels, our team has never been stronger, and the planning process, whilst cumbersome, is delivering the permissions we require for our future success."
14th July 2008
ENQUIRIES:
|
St. Modwen Properties PLC |
www.stmodwen.co.uk |
|
Anthony Glossop, Chairman |
) |
|
Bill Oliver, Chief Executive |
) 0121 222 9400 |
|
Tim Haywood, Finance Director |
) |
|
|
|
|
College Hill |
www.collegehill.com |
|
Gareth David |
020 7457 2020 |
HALF YEAR REVIEW
Interim Results
We are reporting on what has been the most difficult period for the property industry since 1990. As anticipated in our last announcement in March, activity levels in the property investment market have continued to decline, and we have experienced a further adverse shift in yields of approaching 0.5%. Although the investment market is thin, we are seeing buyers for realistically-priced product. Moreover there remains occupational demand in the commercial sector, although it is patchy, particularly in the retail sector where demand from comparison retailers is weaker, and those in the market are seeking substantial incentives.
What was not expected, either by us or the market generally, was the pace and severity of decline in the residential market, which has yet to find a stable level. This means that, for residential land, there is currently no genuine market, as the major housebuilders are unwilling to invest in land until they can see the way ahead more clearly. Therefore we have taken the decision not to attempt to sell any of our residential land until the market has stabilised.
However, it is important to put our exposure to residential land prices in perspective. Within our hopper we have 1,365 acres identified for residential development. Of these, some 946 acres is carried within our accounts at existing use valuations, as we have not yet achieved planning consent for residential use. The total book value of these sites is £245m, and over half of it is income-producing.
The remaining 419 acres, for which residential consent has been obtained, is valued as at 31st May 2008 at £79m, using a discounted cash flow methodology, which provides for all future remediation and infrastructure costs and an allowance for development profit.
This valuation reflects two significant changes arising from current market conditions: firstly an expectation that there will be a considerable deferral of our disposal programme; and secondly, that, when a stable market level for residential land reappears, it will be at lower levels than those previously enjoyed. The gross valuation loss from these factors amounted to £48.6m. This was, however, alleviated by a number of factors: site expenditure has been re-phased in line with deferrals on the disposal programme; reductions in profit shares and other overage payments have softened the impact; and we are achieving reductions in development costs. Consequently, as a result of the May 2008 valuation, a net £37.7m was written-off the book value of our residential sites, which are now held at only £14m above historical cost.
Our commercial portfolio was also written down, by £16.9m, to reflect adverse market yield movements in that sector. Typically this amounted to 0.25% to 0.5%, but was restricted to our retail and single-occupier industrial sites where development potential may take longer to come through. However, it is encouraging to report that our asset management activities (new and improved lettings) contributed an uplift of £9.8m, and our marshalling activities (obtaining change of use and other planning gains) a further uplift of £6.7m.
In these circumstances, restricting the loss before tax to £20.0m (2007: profit £65.1m) was a significant achievement by our team, with £27.0m of gains from marshalling and cost reductions, together with property profits of £10.8m and £20.2m of rental and other income helping to mitigate the valuation impact of adverse market conditions. As a result, the net asset value of the company has fallen by £19.5m (16.1p per share) to £448.2m (371p per share), a decline of 4.2% since November 2007, after the payment of a final dividend of £9.4m (7.8p per share).
Dividends
As indicated in the Annual Report, the board takes a long-term view in setting dividend policy. However, given current market uncertainties, it has decided that it would not be prudent to increase the dividend. Consequently we will maintain the interim dividend at 3.9p per ordinary share (2007: 3.9p), which will be paid on 5th September 2008 to shareholders on the register at 8th August 2008.
Acquisitions - The Hopper
We continue to add to the hopper, with the following transactions occurring in the period:
Coed Darcy - we have completed the acquisition of the 1,000 acre former BP oil refinery at Llandarcy in South Wales, of which 320 acres is developable. The site will be transformed into the Coed Darcy Urban Village with 4,000 homes to be built over the anticipated 20 year development period.
Sunderland - we have acquired the 9.3 acre former ARC International glassworks. It is intensively developed with about 350,000 sq ft of buildings of which around half have some potential for re-use. Sunderland arc, the city's urban regeneration company, has identified the former glassworks as a priority site on the edge of the city centre.
Letchworth - we have agreed to acquire the 4.5 acre former RWE power station for an 80,000 sq ft employment scheme.
Daresbury, Warrington - a development agreement has been signed with Northwest Regional Development Agency ("NWDA") to expand the existing innovation centre campus. Planning consent has been obtained for a first phase of 37,000 sq ft to compliment existing facilities.
Marshalling
We continue to make excellent progress in marshalling projects for future delivery, achieving some important milestones and submitting a number of significant planning applications which will unlock value in future periods:
Coed Darcy - conditional planning consent has been obtained for 4,000 dwellings and 500,000 sq ft of employment space together with retail and community facilities, and the Section 106 obligations and outline remediation strategy have been agreed.
Longbridge - four separate planning applications, representing £750 million of mixed use development, have been submitted to Birmingham City Council and Bromsgrove District Council for the regeneration of the 468 acre former MG Rover Works. The applications comprise 1.8 million sq ft of employment space, together with 1,980 new homes, a new town centre and extensive community facilities. In addition, there will be a new learning quarter on the site, anchored by Bournville College which announced earlier this year that it will relocate to a new purpose-built £84 million educational facility at Longbridge in 2011.
Darlington - an agreement has been signed with Darlington Borough Council to open up 70 acres of land within the Faverdale Employment Area to create a £50 million major industrial park capable of providing 1,500 jobs. We will shortly submit a planning application for up to 1.2 million sq ft of predominantly distribution space.
Connah's Quay, Flintshire - planning consent has been obtained for the redevelopment of the Deeside district centre, comprising a 52,000 sq ft foodstore, which has been pre-let to Morrisons and 20,000 sq ft of further retail space.
Skelmersdale - a development agreement has been signed with West Lancashire District Council and English Partnerships for the mixed use regeneration of Skelmersdale town centre.
Widnes - work has also begun at Heron Business Park for a 76,000 sq ft industrial development following the securing of funding from NWDA and the European Regional Development Fund.
Newham - after two years of extensive consultation, a detailed planning application has been submitted for the regeneration of Queens Market. In addition to a new Market Hall, the redevelopment proposals include 350 new homes, a new Newham Council Front Office facility, a local service centre, other community services and a new library.
Stoke-on-Trent - planning consents have been obtained for the regeneration of the historic former Royal Doulton site in Nile Street, Burslem (a mixed use scheme comprising a 70,000 sq ft Enterprise Centre and 140 homes), and for a 21,000 sq ft district centre at Trentham South.
Bentley Priory, Harrow - a planning application has been submitted for the redevelopment of RAF Bentley Priory, including: a museum dedicated to the memory of those who fought in the Battle of Britain; 103 homes of exceptional quality, designed by award winning Robert Adam Architects; and the conservation and enhancement of the Mansion House, its historic landscape setting and its Italian gardens.
Whitley, Coventry - construction work has begun on the first phase of Whitley Business Park following receipt of planning consent for an initial 67,000 sq ft of office space on land that was acquired from Jaguar and Coventry City Council a year ago. The new 93 acre mixed use business park has the potential to accommodate 1.1 million sq ft of space.
Progress on our town centre schemes is more mixed. Whereas at Edmonton, Farnborough and Wembley, we had obtained sufficient pre-lets/sales to justify committing to the construction of the schemes, the weaker retail market is slowing down subsequent projects.
Delivery
Whilst we are being more cautious in our forward construction commitments, there are still business opportunities for well-located, well-priced product. Moreover, we are seeing a reduction in tendered construction prices. We are therefore continuing an active construction programme, partly speculative, partly anchored by pre-sales or pre-lets:
Quedgeley West Business Park, Gloucester - a 102,000 sq ft distribution warehouse is being developed for transport company CM Downton. A further 120,000 sq ft distribution/industrial space is under construction, with 46,000 sq ft having already been pre-let and a further 42,000 sq ft under offer.
Longbridge - an extensive investigation and ground remediation programme is underway, which will see more than 7 million cu ft of soil remediated across the former West Works. The first phase of new development on the Cofton Centre part of the site has commenced with the construction of 76,000 sq ft of speculative industrial units.
Avonmouth - a 165,000 sq ft distribution centre is under construction for Nisbets, a catering equipment supplier, which is scheduled to be completed in July. A speculative phase of 78,000 sq ft of industrial buildings has been sold to three owner occupiers.
Trentham, Staffordshire - contracts have been exchanged for the sale of the 119-bed Premier Inn hotel at the company's Trentham Estate visitor attraction.
Quinton Business Park - a 33,000 sq ft office building let to Business Link West Midlands has been sold to Advantage West Midlands for £6.5 million, representing an initial yield of approximately 6.35%. There is now only 19,000 sq ft of space remaining of the 150,000 sq ft developed on the 18-acre business park.
We have continued our longstanding programme of disposing of those assets to which no further value can be added. During the period these included:
Liebig Court, Widnes, a development comprising 38 one and two-bedroom apartments and six retail units sold to Places for People, one of the largest not-for-profit property management and development companies in the UK.
Kempton Point, Sunbury on Thames, a 35,000 sq ft office building acquired in 1996 and sold to Arlo Holdings
We have also obtained a number of significant lettings across our portfolio, including at Rugby, where Converteam, a world leader in power conversion engineering, has taken a new 15-year lease on refurbished industrial space at an annual rent of £900,000 as part of our regeneration plans to transform more than 100 acres of the former GEC complex close to Rugby town centre.
Financing
Prudent cashflow management is ensuring that we stay within our banking facilities and that we remain fully compliant with our covenants.
In the current climate optimising the use of cash is our prime consideration, so that we can take advantage of opportunities as they occur. Our cash flow projections are modelled on the current weaker market conditions detailed above. In particular, we have assumed that residential land sales will be significantly delayed. Even on this basis, we have sufficient headroom within our existing banking facilities to complete our committed building programme. Net borrowings are currently £421m and gearing is 94%, which remains within our targeted range.
Outlook
Future market conditions remain uncertain, and macro-economic signals continue to deteriorate.
In the commercial sector, we expect some further drift in yields. We also anticipate a worsening of the climate for occupiers, and a consequent slowing of demand for new space.
The residential market continues to deteriorate. However, the fundamentals remain strong, namely a tight land supply and a requirement for more homes. The short-term outlook is adversely affected by the absence of liquidity in the mortgage market and a lack of buyers.
Our marshalling, development, asset management and cost reduction programmes will enable us to mitigate the worst of adverse market conditions, and we will continue to demonstrate our ability to add value even in challenging circumstances. However until new stable market conditions are established, we remain vulnerable to further short-term declines.
Our confidence in the longer-term remains undiminished. Our hopper is at record levels, our team has never been stronger, and the planning process, whilst cumbersome, is delivering the permissions we require for our future success.
|
ANTHONY Glossop
|
bill Oliver
|
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Chairman
|
Chief Executive
|
|
|
|
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11th July 2008
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|
Group income statement for the period to 31st May 2008
|
Unaudited |
Unaudited |
Audited |
||
|
31st May |
31st May |
30th Nov |
||
|
2008 |
2007 |
2007 |
||
|
|
Notes |
£m |
£m |
£m |
|
Revenue |
2 |
70.8 |
47.7 |
127.5 |
|
Net rental income |
2 |
12.6 |
13.0 |
26.3 |
|
Development profit |
2 |
7.9 |
12.2 |
32.4 |
|
Gains on disposal of investments/investment properties |
2.2 |
7.0 |
11.4 |
|
|
Investment property revaluation (losses)/gains |
(22.3) |
47.8 |
60.3 |
|
|
Other net income |
2 |
4.2 |
1.1 |
2.4 |
|
Joint ventures and associates (post-tax) |
3 |
(3.3) |
7.9 |
12.6 |
|
Administrative expenses |
(9.1) |
(12.7) |
(16.4) |
|
|
(Loss)/profit before interest and tax |
(7.8) |
76.3 |
129.0 |
|
|
Finance cost |
4 |
(16.8) |
(15.7) |
(32.5) |
|
Finance income |
4 |
4.6 |
4.5 |
3.6 |
|
(Loss)/profit before tax |
(20.0) |
65.1 |
100.1 |
|
|
Taxation |
10.5 |
(10.8) |
(6.4) |
|
|
(Loss)/profit for the period |
(9.5) |
54.3 |
93.7 |
|
|
Attributable to: |
||||
|
Equity shareholders |
(10.8) |
51.6 |
88.4 |
|
|
Minority interests |
1.3 |
2.7 |
5.3 |
|
|
|
(9.5) |
54.3 |
93.7 |
|
|
Basic (loss)/earnings per share (pence) |
6 |
(8.9) |
42.8 |
73.3 |
|
Diluted (loss)/earnings per share (pence) |
6 |
(8.9) |
42.8 |
72.4 |
|
Dividend per share (pence) |
7 (iv) |
3.9 |
3.9 |
11.7 |
Group statement of recognised income and expense
|
Unaudited |
Unaudited |
Audited |
||
|
31st May |
31st May |
30th Nov |
||
|
2008 |
2007 |
2007 |
||
|
|
|
£m |
£m |
£m |
|
(Loss)/profit for the period |
(9.5) |
54.3 |
93.7 |
|
|
Revaluation of owner-occupied property |
0.4 |
- |
- |
|
|
Pension fund: |
||||
|
- actuarial gains and losses |
(0.3) |
- |
(3.3) |
|
|
- deferred tax thereon |
|
0.1 |
- |
0.9 |
|
Total recognised income and expense |
|
(9.3) |
54.3 |
91.3 |
|
Attributable to: |
||||
|
Equity shareholders |
(10.6) |
51.6 |
86.0 |
|
|
Minority interests |
|
1.3 |
2.7 |
5.3 |
|
Total recognised income and expense |
|
(9.3) |
54.3 |
91.3 |
Group balance sheet as at 31st May 2008
|
Unaudited |
Unaudited |
Audited |
||
|
31st May |
31st May |
30th Nov |
||
|
2008 |
2007 |
2007 |
||
|
|
Notes |
£m |
£m |
£m |
|
Non-current assets |
||||
|
Investment properties |
7(i) |
814.8 |
840.2 |
846.9 |
|
Operating property, plant and equipment |
4.5 |
3.6 |
3.9 |
|
|
Investments in joint ventures, associates and other investments |
74.2 |
74.7 |
75.4 |
|
|
Trade and other receivables |
19.3 |
2.9 |
8.9 |
|
|
|
|
912.8 |
921.4 |
935.1 |
|
Current assets |
||||
|
Inventories |
227.3 |
92.3 |
209.3 |
|
|
Trade and other receivables |
63.5 |
58.9 |
31.6 |
|
|
Cash and cash equivalents |
14.8 |
6.4 |
17.9 |
|
|
|
|
305.6 |
157.6 |
258.8 |
|
Current liabilities |
||||
|
Trade and other payables |
(162.5) |
(118.1) |
(127.3) |
|
|
Borrowings |
(2.1) |
(64.0) |
(0.4) |
|
|
Tax payables |
(3.7) |
(9.7) |
(12.3) |
|
|
|
|
(168.3) |
(191.8) |
(140.0) |
|
Non-current liabilities |
||||
|
Trade and other payables |
(141.5) |
(103.0) |
(128.0) |
|
|
Borrowings |
(433.3) |
(290.2) |
(419.4) |
|
|
Deferred tax |
(27.1) |
(58.3) |
(38.8) |
|
|
|
|
(601.9) |
(451.5) |
(586.2) |
|
Net assets |
|
448.2 |
435.7 |
467.7 |
|
Capital and reserves |
||||
|
Share capital |
12.1 |
12.1 |
12.1 |
|
|
Share premium |
9.1 |
9.1 |
9.1 |
|
|
Capital redemption reserve |
0.3 |
0.3 |
0.3 |
|
|
Retained earnings |
417.0 |
407.7 |
437.4 |
|
|
Revaluation reserve |
0.4 |
- |
- |
|
|
Own shares |
|
(0.5) |
(0.5) |
(0.7) |
|
Shareholders' equity |
5 |
438.4 |
428.7 |
458.2 |
|
Minority interests |
5 |
9.8 |
7.0 |
9.5 |
|
Total equity |
5 |
448.2 |
435.7 |
467.7 |
Group cash flow statement for the period to 31st May 2008
|
Unaudited |
Unaudited |
Audited |
|
|
31st May |
31st May |
30th Nov |
|
|
2008 |
2007 |
2007 |
|
|
|
£m |
£m |
£m |
|
Operating activities |
|||
|
(Loss)/profit before interest and tax |
(7.8) |
76.3 |
129.0 |
|
Gains on investment property disposals |
(2.2) |
(7.0) |
(11.4) |
|
Joint ventures and associates (post-tax) |
3.3 |
(7.9) |
(12.6) |
|
Investment property revaluation losses/(gains) |
22.3 |
(47.8) |
(60.3) |
|
Depreciation |
0.1 |
0.3 |
0.6 |
|
Increase in inventories |
(19.9) |
(24.2) |
(109.2) |
|
(Increase)/decrease in trade and other receivables |
(14.7) |
4.0 |
19.1 |
|
Share options and share awards |
0.3 |
0.1 |
0.1 |
|
Increase/(decrease) in trade and other payables |
42.9 |
(38.3) |
1.2 |
|
Pension funding |
(0.1) |
(0.2) |
(0.2) |
|
Tax (paid)/refunded |
(2.3) |
6.2 |
1.8 |
|
Net cash inflow/(outflow) from operating activities |
21.9 |
(38.5) |
(41.9) |
|
Investing activities |
|||
|
Investment property disposals |
39.1 |
21.1 |
44.4 |
|
Investment property additions |
(55.5) |
(61.2) |
(124.2) |
|
Investment in joint ventures |
(2.7) |
- |
- |
|
Property, plant and equipment additions |
(0.7) |
(0.1) |
(0.7) |
|
Interest received |
0.6 |
1.1 |
1.8 |
|
Dividends received |
- |
- |
4.0 |
|
Net cash outflow from investing activities |
(19.2) |
(39.1) |
(74.7) |
|
Financing activities |
|||
|
Dividends paid |
(9.4) |
(8.2) |
(12.9) |
|
Dividends paid to minorities |
(1.0) |
(0.5) |
(0.6) |
|
Interest paid |
(11.6) |
(8.9) |
(18.1) |
|
Sale/(purchase) of own shares |
0.6 |
0.3 |
(0.8) |
|
New borrowings drawn |
13.9 |
90.7 |
159.9 |
|
Net cash (outflow)/inflow from financing activities |
(7.5) |
73.4 |
127.5 |
|
(Decrease)/increase in cash and cash equivalents |
(4.8) |
(4.2) |
10.9 |
|
Cash and cash equivalents at start of period |
17.9 |
7.0 |
7.0 |
|
Cash and cash equivalents at end of period |
13.1 |
2.8 |
17.9 |
|
Cash |
14.8 |
6.4 |
17.9 |
|
Bank overdrafts |
(1.7) |
(3.6) |
- |
|
Cash and cash equivalents at end of period |
13.1 |
2.8 |
17.9 |
Notes to the accounts
1. Accounting policies
The interim financial statements have been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) and in accordance with both IAS 34 'Interim Financial Reporting' and the disclosure requirements of the Listing Rules. The same accounting policies, presentation and methods of computation are followed in the interim financial statements as applied in the group's latest audited financial statements.
In the current financial year, the group will adopt International Financial Reporting Standard 7 'Financial Instruments: Disclosures' (IFRS 7) for the first time. As IFRS 7 is a disclosure standard, there is no impact on the half-yearly financial report. Full details of the change will be disclosed in our annual report for the year ended 30th November 2008.
2. Revenue
|
Six months to 31st May 2008 |
Six months to 31st May 2007 |
Year to 30th Nov 2007 |
|||||||||
|
Revenue |
Costs |
Total |
Revenue |
Costs |
Total |
Revenue |
Costs |
Total |
|||
|
|
£m |
£m |
£m |
|
£m |
£m |
£m |
|
£m |
£m |
£m |
|
Rental income |
16.2 |
(3.6) |
12.6 |
14.6 |
(1.6) |
13.0 |
30.3 |
(4.0) |
26.3 |
||
|
Development property |
48.5 |
(40.6) |
7.9 |
30.0 |
(17.8) |
12.2 |
91.1 |
(58.7) |
32.4 |
||
|
Other |
6.1 |
(1.9) |
4.2 |
3.1 |
(2.0) |
1.1 |
6.1 |
(3.7) |
2.4 |
||
|
Total |
70.8 |
(46.1) |
24.7 |
|
47.7 |
(21.4) |
26.3 |
|
127.5 |
(66.4) |
61.1 |
3. Joint ventures and associates
|
Six months to 31st May 2008 |
Six months to 31st May 2007 |
Year to 30th Nov 2007 |
|||||||
|
Revenue |
Costs |
Total |
Revenue |
Costs |
Total |
Revenue |
Costs |
Total |
|
|
|
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
|
Rental income |
5.0 |
(1.6) |
3.4 |
5.8 |
(1.2) |
4.6 |
11.1 |
(2.5) |
8.6 |
|
Development property |
5.2 |
(4.5) |
0.7 |
12.6 |
(9.0) |
3.6 |
30.0 |
(23.7) |
6.3 |
|
|
10.2 |
(6.1) |
4.1 |
18.4 |
(10.2) |
8.2 |
41.1 |
(26.2) |
14.9 |
|
Gains on investment property disposals |
- |
4.3 |
4.4 |
||||||
|
Investment property revaluation (losses)/gains |
(9.5) |
1.3 |
2.5 |
||||||
|
Administrative expenses |
(0.1) |
- |
(0.1) |
||||||
|
Finance cost (net) |
|
|
(3.1) |
|
|
(2.8) |
|
|
(6.4) |
|
(Loss)/profit before tax |
(8.6) |
11.0 |
15.3 |
||||||
|
Taxation |
|
|
5.3 |
|
|
(3.3) |
|
|
(2.8) |
|
(Loss)/profit after tax |
(3.3) |
7.7 |
12.5 |
||||||
|
Post tax profits of associate |
- |
0.2 |
0.1 |
||||||
|
(Loss)/profit for the period |
|
|
(3.3) |
|
|
7.9 |
|
|
12.6 |
4. Net finance cost
|
Six months |
Six months |
Year |
|
|
to 31st May |
to 31st May |
to 30th Nov |
|
|
2008 |
2007 |
2007 |
|
|
|
£m |
£m |
£m |
|
Interest payable on loans and overdrafts |
11.1 |
9.3 |
19.6 |
|
Amortisation of discount on deferred payment arrangements |
4.6 |
5.4 |
9.9 |
|
Amortisation of refinancing expenses |
0.2 |
0.1 |
0.6 |
|
Head rents treated as finance leases |
0.1 |
0.1 |
0.2 |
|
Movement in market value of interest rate derivatives |
- |
- |
0.7 |
|
Interest on pension scheme liabilities |
0.8 |
0.8 |
1.5 |
|
Total finance cost |
16.8 |
15.7 |
32.5 |
|
Interest receivable on cash deposits |
0.6 |
1.3 |
1.8 |
|
Credit in respect of discount on deferred receivables |
1.5 |
- |
- |
|
Movement in market value of interest rate derivatives |
1.5 |
2.3 |
- |
|
Expected return on pension scheme assets |
1.0 |
0.9 |
1.8 |
|
Total finance income |
4.6 |
4.5 |
3.6 |
|
Net finance cost |
12.2 |
11.2 |
28.9 |
5. Reconciliation of movements in equity
|
Equity shareholders |
Minority interests |
Total |
|
|
Period ended 31st May 2008 |
£m |
£m |
£m |
|
Total recognised income and expense |
(10.6) |
1.3 |
(9.3) |
|
Dividends paid |
(9.4) |
(1.0) |
(10.4) |
|
Net disposal of own shares |
0.2 |
- |
0.2 |
|
Equity at 30th November 2007 |
458.2 |
9.5 |
467.7 |
|
Equity at 31st May 2008 |
438.4 |
9.8 |
448.2 |
|
Equity shareholders |
Minority interests |
Total |
|
|
Period ended 31st May 2007 |
£m |
£m |
£m |
|
Total recognised income and expense |
51.6 |
2.7 |
54.3 |
|
Dividends paid |
(8.2) |
(0.5) |
(8.7) |
|
Net disposal of own shares |
0.3 |
- |
0.3 |
|
Equity at 30th November 2006 |
385.0 |
4.8 |
389.8 |
|
Equity at 31st May 2007 |
428.7 |
7.0 |
435.7 |
|
Equity shareholders |
Minority interests |
Total |
|
|
Year ended 30th November 2007 |
£m |
£m |
£m |
|
Total recognised income and expense |
86.0 |
5.3 |
91.3 |
|
Dividends paid |
(12.9) |
(0.6) |
(13.5) |
|
Net disposal of own shares |
0.1 |
- |
0.1 |
|
Equity at 30th November 2006 |
385.0 |
4.8 |
389.8 |
|
Equity at 30th November 2007 |
458.2 |
9.5 |
467.7 |
6. Earnings per share
(Loss)/earnings per share are calculated as follows:
|
31st May 2008 |
31st May 2007 |
30th Nov 2007 |
|
|
|
Number of shares |
Number of shares |
Number of shares |
|
Weighted number of shares in issue* |
120,681,670 |
120,634,233 |
120,636,100 |
|
Weighted number of dilutive shares |
- |
- |
1,506,851 |
|
|
120,681,670 |
120,634,233 |
122,142,951 |
|
31st May |
31st May |
30th November |
|
|
2008 |
2007 |
2007 |
|
|
|
£m |
£m |
£m |
|
(Loss)/earnings (basic and diluted) |
(10.8) |
51.6 |
88.4 |
|
31st May |
31st May |
30th November |
|
|
2008 |
2007 |
2007 |
|
|
|
pence |
Pence |
pence |
|
Basic (loss)/earnings per share |
(8.9) |
42.8 |
73.3 |
|
Diluted (loss)/earnings per share |
(8.9) |
42.8 |
72.4 |
* Shares held by the Employee Benefit Trust are excluded from the above calculation.
The group's share options are accounted for as cash-settled share-based payments as it is the group's practice not to issue new shares in satisfaction of employee options. The potential dilutive effect on earnings per share on the assumption that such shares were to be issued is set out above, together with the impact which would have resulted from the options being classified as equity-settled.
7. Other information
(i) Investment properties were valued at 31st May 2008, 31st May 2007 and 30th November 2007 by King Sturge & Co, Chartered Surveyors, in accordance with the Appraisal and Valuation method of the Royal Institution of Chartered Surveyors, on the basis of market value.
(ii) The financial information contained in this interim statement, which is unaudited, does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The figures for the year ended 30th November 2007 have been derived from the statutory accounts, which have been filed with the Registrar of Companies and on which the auditors, Deloitte & Touche LLP, gave an unqualified audit opinion. The prior year audited accounts did not include a statement under section 237(2) and (3) of the Companies Act 1985.
(iii) The effective tax rate used for the period is 62.9% with the tax credit booked in the period being disproportionately high as a result of one-off adjustments to deferred taxation brought forward. For the full year these one-off factors will continue to result in a favourable tax position compared to the standard rate of tax.
(iv) The proposed dividend of 3.9p per share was approved by the Board on 11th July 2008 and will amount to £4.7m (6 months to 31st May 2007: 3.9p, £4.7m).
(v) Principal risks and uncertainties are discussed in the Outlook section of the half-year review. All results are derived from continuing activities, which the Directors' do not consider to be seasonal.
DIRECTORS' RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
(a) the condensed set of financial statements has been prepared in accordance with IAS 34;
(b) the interim management report includes a fair review of the information required by DTR
4.2.7R (indication of important events during the first six months and description of
principal risks and uncertainties for the remaining six months of the year); and
(c) the interim management report includes a fair review of the information required by DTR
4.2.8T (disclosure of related party transactions and changes therein).
By order of the Board
|
Anthony Glossop
|
Tim Haywood
|
|
Chairman
|
Finance Director
|
|
|
|
|
11th July 2008
|
|
INDEPENDENT REVIEW REPORT TO ST. MODWEN PROPERTIES PLC
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31st May 2008 which comprises the group income statement, the group statement of recognised income and expense, the group balance sheet, the group cash flow statement and related notes 1 to 7. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European Union.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31st May 2008 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
Deloitte & Touche LLP
Related Shares:
SMP.L