Preliminary Results

2013

2012

£

£

(Loss)/gain before taxation

(1,922,176)

(663,744)

__________

___________

(Loss)/gain for the year

(1,550,951)

(481,967)

__________

___________

Total equity

12,964,673

14,515,624

__________

___________

Income

2013

2012

£

£

Realised (loss) / gain on disposal of investment properties

(368,674)

102,826

Unrealised loss on revaluation of investment properties

(1,645,410)

(769,771)

Rental income

2,213,893

2,120,782

Interest on deposits

1,786

1,254

201,595

1,455,091

Expenses

Administrative expenses

(473,771)

(466,151)

Operating (loss) / gain

(272,176)

988,940

Finance costs

Interest payable

(1,650,000)

(1,652,684)

Loss before taxation

(1,922,176)

(663,744)

Taxation

371,225

181,777

Loss for the year

(1,550,951)

(481,967)

Earnings per share

Basic and diluted

(31.02)

(9.64)

2013

2012

£

£

£

£

Non Current Assets

Investment properties

28,375,000

30,075,000

Current Assets

Receivables

35,303

1,154

Cash and cash equivalents

101,638

406,640

136,941

407,794

Current Liabilities

Payables

(547,268)

(577,563)

Net Current Liabilities

(410,327)

(169,769)

Total Assets less Current Liabilities

27,964,673

29,905,231

Non Current Liabilities

Debenture stock

(15,000,000)

(15,000,000)

Deferred tax

-

(389,607)

(15,000,000)

(15,389,607)

Net Assets

12,964,673

14,515,624

Ordinary share capital

25,000

25,000

Retained earnings

12,939,673

14,490,624

Total Equity

12,964,673

14,515,624

Ner Asset Value per Ordinary Share (pence)

259.29p

290.31p

Share

Retained

Capital

Earnings

Total

£

£

£

Balance at 31 March 2012

25,000

14,490,624

14,515,624

Loss for the year

-

(1,550,951)

(1,550,951)

Dividends paid

-

-

-

Balance at 31 March 2013

25,000

12,939,673

12,964,673

Statement of Changes in Equity

for the year ended 31 March 2012

Share

Retained

Capital

Earnings

Total

£

£

£

Balance at 31 March 2011

25,000

16,122,591

16,147,591

Loss for the year

-

(481,967)

(481,967)

Dividends paid

-

(1,150,000)

(1,150,000)

Balance at 31 March 2012

25,000

14,490,624

14,515,624

2013

2012

£

£

£

£

Cash flows from operating activities

Operating (loss) / gain

(272,176)

988,940

Losses on investment properties held at fair value

2,014,084

666,945

Purchase of investment properties

(1,813,115)

(787,271)

Sale of investment properties

1,499,031

2,452,826

(314,084)

1,665,555

(Increase)/decrease in receivables

(34,149)

22,802

Decrease in payables

(48,037)

(48,409)

Net cash from operating activities before tax

1,345,638

3,295,833

Tax paid

-

-

Net cash from operating activities

1,345,638

3,295,833

Cash flows from financing activities

Interest paid

(1,650,000)

(1,652,684)

Dividend paid

-

(1,150,000)

Repayment of inter-company borrowings

(640)

(45,417)

Net cash used in financing activities

(1,650,640)

(2,848,101)

Net (decrease) / increase in cash and cash equivalents

(305,002)

447,732

Cash and cash equivalents at 31 March 2012

406,640

(41,092)

Cash and cash equivalents at 31 March 2013

101,638

406,640

1

Accounting policies

(a)

Basis of accounting

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) which comprise standards and interpretations approved by the International Accounting Standards Board (IASB) together with interpretations of the International Accounting Standards and Standing Interpretations Committee approved by the International Accounting Standards Committee (IASC) that remain in effect, and to the extent that they have been adopted by the European Union (EU). These financial statements therefore comply with IFRSs as adopted by the EU.

The functional and reporting currency of the Company is pounds sterling because that is the

currency of the primary economic environment in which the Company operates.

The financial statements have been prepared on a going concern basis and under the historical cost convention, modified to include the revaluation of investment properties. The principal accounting policies adopted are set out below.

The directors are of the opinion that the Group is engaged in a single segment of business, being investment business.

(b)

Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements requires the directors to make judgements, estimates and assumptions that may affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. These judgements, estimates and assumptions are based on historical experience and other relevant factors and are reviewed on a continual basis.

The critical judgements, estimates and assumptions that have a material effect on the amounts recognised in the financial statements for both the current and the next financial years are discussed below:

- reliance upon the work undertaken at 31 March 2013 by an independent professional qualified valuer, in assessing the fair value of the Company's investment properties.

- consideration of the potential risks and rewards of ownership in accordance with IAS 17 'Leases' for all properties leased to tenants. The directors have determined that all such leases are operating leases.

- an assessment of the likelihood that potential historic tax liabilities will arise in determining the deferred tax liabilities and charge to the Statement of Comprehensive Income.

(c)

Revenue, expenses and interest payable

Rent receivable from investment properties under operating leases is recognised in the Statement of Comprehensive Income over the term of the lease on a straight line basis. Lease incentives, where material, are spread evenly over the term of the lease.

Interest receivable and payable and administrative expenses are calculated on an accruals basis.

(d)

Taxation

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method.

Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the Statement of Comprehensive Income except where it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

(e)

Dividends payable

Interim dividends are recognised as a liability in the period in which they are paid as no further approval is required in respect of such dividends. Final dividends are recognised as a liability only after they have been approved by shareholders in general meeting.

(f)

Investment Properties

The Company leases out all of its properties on operating leases. A property held under an operating lease is classified and accounted for as an investment property.

An investment property is a property that is held to generate rental income and for capital appreciation.

Freehold investment properties are initially recognised at cost, being the fair value of the consideration given, including transaction costs associated with the acquisition of the investment property. After initial recognition, they are measured at fair value, with movements in the unrealised gains and losses included in the Statement of Comprehensive Income and ultimately recognised in the Revaluation Reserve. Fair values are established by half-yearly professional valuation on an open market basis by Jones Lang LaSalle Limited, Chartered Surveyors and Valuers and in accordance with the RICS Valuation Standards. The determination of fair value by Jones Lang LaSalle is supported by market evidence. It is not more heavily based on other factors because of the nature of the properties and the availability of comparable market data.

(g)

Cash and cash equivalents

Cash and cash equivalents comprise deposits held with banks.

(h)

Non-current liabilities

All loans and borrowings are initially recognised at cost, being the fair value of the consideration received, less issue costs where applicable. After initial recognition, all interest-bearing loans and borrowings are subsequently measured at amortised cost. Amortised cost is calculated by taking into account any discount or premium on settlement. The costs of arranging any interest-bearing loans are capitalised and amortised over the life of the loan.

(i)

Adoption of new and revised Accounting Standards

At the date of authorisation of these financial statements, the following Standard and Interpretations were in issue but not yet effective;

- Amendments to IFRS 7 - Disclosures: Offsetting Financial Assets and Financial Liabilities (effective for annual periods beginning on or after 1 January 2013).

- Amendments to IFRS 10 - Definition of Investment Entity (early adoption permitted) (effective for annual periods beginning on or after 1 January 2014).

- IFRS 9 - Financial Instruments: Classification and Measurement (effective for annual periods beginning on or after 1 January 2015).

- IFRS 10 - Consolidated Financial Statements (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013).

- IFRS 11 - Joint Arrangements (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013).

- IFRS 12 - Disclosure of Interests in Other Entities (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013).

- IFRS 13 - Fair Value Measurement (effective for annual periods beginning on or after 1 January 2013).

- Annual Improvements and Amendments to IFRS (2009-2011) - IFRS 1 First - time Adoption of International Financial Reporting Standards, IAS 1 Presentation of Financial Statements, IAS 16 Property, Plant and Equipment, IAS 32 Financial Instruments: Presentation, IAS 34 Interim Financial Reporting. (effective for annual periods beginning on or after 1 January 2013).

- Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12) (effective for annual periods beginning on or after 1 January 2013).

- Amendments to IAS 19 - Employee Benefits (effective for annual periods on or after 1 January 2013).

- IAS 27 - Separate Financial Statements (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013).

- IAS 28 - Investments in Associates and Joint Ventures (early adoption permitted) (effective 1 January 2013).

- Amendments to IAS 32 - Offsetting Financial Assets and Financial liabilities (effective for annual periods beginning on or after 1 January 2014).

The Directors anticipate that adoption of these Standards and Interpretations in future periods will have no material financial impact on the financial statements of the Company. The Company concludes however that certain additional disclosures may be necessary on their application.