30th Sep 2009 07:00
Wichford P.L.C.
("Wichford" or the "Company")
Pre-close Trading Statement
30 September 2009
Results of Rights Issue
Cash Position
The Company has approximately £79.0 million available for acquisitions comprising the rights issue proceeds, available cash balances and borrowings released as a result of disposals.
Debt Position
Delta and Gamma Facilities
As outlined in the Rights Issue Prospectus, part of the rights issue proceeds will be used to acquire properties with long-dated leases to increase the weighted average unexpired lease term ("WAULT") of the assets secured in the Delta and Gamma finance facilities in order to secure a two year extension on both facilities from October 2010 to October 2012.
The Company is in negotiations on a number of suitable acquisitions and expects to report progress on these together with the financial year end results in December.
VBG1
As previously reported, the Company is in ongoing discussions with the loan servicer over the January 2010 maturity date. Discussions remain at an early stage.
Management Company Changes
Corovest Fund Managers (UK) Limited ("Corovest") completed the acquisition of JO Hambro Capital Management's 50% shareholding in Wichford Property Management Limited ("WPML") on 28 August 2009. Corovest now owns 100% of WPML, and following the rights issue companies directly associated with Corovest together hold a 21.98% shareholding in Wichford.
Board Composition
As part of the recent rights issue process and as identified in the Rights Issue Prospectus, changes to the composition of the Board are anticipated in order to enhance its expertise and strengthen oversight of management functions.
A nomination committee of the Board headed by Philippe de Nicolay and David Harrel has been established to oversee the appointment of new Board members. Progress on new appointments is expected to be announced together with the financial year end results in December.
Property Portfolio
The property portfolio has undergone some changes since the interim results were announced. During the period, the Company has completed two sales and concluded a number of rent reviews:
Sales
The Interim Management Statement (IMS) released on 18 August 2009 reported that agreements for sale had been exchanged on Jefferson House (Leeds) and Newport Road (Cardiff). The sale of Jefferson House has now completed however the Newport Road sale contract was rescinded as a result of the purchaser not completing the acquisition. A further property disposal valued at approximately £8.7 million is expected in the next quarter which will add to the funds available and assist in meeting the WAULT.
Rent Reviews & Occupancy
Philippe de Nicolay, Chairman of Wichford commented:
"I am very pleased by the progress that Wichford has made since our interim results. The balance sheet has been strengthened through a very well-supported rights issue and we are making progress in re-balancing the portfolio in order to extend the maturity of our two major UK debt facilities.
Crucially we have cash with which to manage the portfolio effectively. Given the robustness of our income stream and the cash now available to us, I am confident of Wichford's prospects for the remainder of the year and into 2010."
For further details, please contact,
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Wichford P.L.C. |
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Philippe de Nicolay |
00 33 1 40 74 42 79 |
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Wichford Property Management Ltd |
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Michael Watters |
020 7811 0100 |
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Philip Cooper |
020 7495 7111 |
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Stephen Oakenfull |
020 7811 0100 |
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Citigate Dewe Rogerson |
020 7638 9571 |
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George Cazenove |
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Hannah Seward |
Related Shares:
RDI.L