3rd Apr 2009 18:29
Close High Income Properties Plc
PRELIMINARY RESULTS
For the year ended 31 December 2008
SUMMARY
The consolidated loss after taxation of the Group for the year ended 31 December 2008 amounted to £49,039,791 (31 December 2007: loss of £16,326,104).
The Ordinary Share net asset value fell from 100.44 pence per share to 41.44 pence per share, a decrease of 53.9% taking into account the distributions that were paid out during the year. The "D" Ordinary Share net asset value fell from 71.82 pence per share to 15.15 pence per share, a decrease of 77.2% taking into account the distributions that were paid out during the year.
The fall in capital value of the Group's underlying assets resulted in the Group breaching the Loan to Value covenants on the secured loans on 31 December 2008. Negotiations are currently ongoing with the Group's lending banks with a view to waiving the LTV covenant for a period of 12 months subject to increased costs.
Due to market conditions, and to preserve cash, the Company suspended the dividend on the Ordinary Shares in January 2009. The dividend had previously been suspended on the "D" Ordinary Shares in October 2008.
CHAIRMAN'S STATEMENT
Introduction
It is not an exaggeration to say that 2008 was the most testing year for commercial property in decades. Commercial property, as an asset class, relies on functioning financial markets for investment and debt funding, and a healthy economy to stimulate occupier demand and rental growth. In many respects the combination of the global financial crisis and the worsening recession in the "real economy" was the worst possible combination for commercial property.
The absence of debt finance and the re-rating of risk across all sectors, following the onset of the global financial crisis in the summer of 2007, resulted in the expansion of yields on commercial property and a corresponding fall in capital values. According to the Investment Property Databank ("IPD") capital values have fallen by 37.6% from their peak in June 2007 to January 2009.
At the time the Interim Report and consolidated Financial Statements were published in August 2008 it appeared that some semblance of stability was returning to the UK commercial property market; the rate of capital value falls was declining and a number of equity rich investors were beginning to re-enter the market. The subsequent collapse of Lehman Brothers in September 2008 was a market changer. A more detailed analysis of the events leading up to the collapse of Lehman Brothers and its effects are included in the Property Investment Adviser's Report. According to IPD, capital values in the three months preceding the Lehman Brothers collapse fell by 6.2%; in the three months following its collapse values fell by 15%. Forecasts for economic growth shifted from predictions of negative growth in one or two quarters, to an acknowledgement that the UK is facing a long and deep recession.
The Group has been hugely affected by these developments. The capital values of the Group's properties have fallen significantly as commercial property yields have increased. More recently higher void levels have contributed to the falls in capital values as income levels have reduced. The effect on the net asset value ("NAV") of the Company has been exacerbated by the gearing levels within the Company.
The falls in capital values resulted in the Group breaching its Loan to Value ("LTV") covenants on its secured loans on 31 December 2008 and the suspension of the dividend on the Ordinary Shares in January 2009. The dividend had previously been suspended on the "D" Ordinary Shares in October 2008.
The Board, with the assistance of a specialist debt adviser, is seeking to secure dispensation from its two lending banks for the breach of the LTV covenants in return for the Group paying a higher level of interest and an agreement to use any excess revenues to pay down part of the outstanding loans. The Board hopes to be in a position to update shareholders further in the near future.
Investment Performance
The Board stated in its 2007 Annual Report its desire to identify and dispose of properties where opportunities for active management had been exhausted or which the Board considered to be overvalued. The Board was, correctly, of the opinion that commercial property values would continue to fall and that sales would be necessary to provide reserves to protect against breaches of banking covenants as well as funding improvements to its remaining properties.
However, with the investment market highly illiquid, and the uncertainty surrounding the economy, it became increasingly difficult to complete the level of sales originally envisaged. The position worsened considerably following the intensification of the global financial crisis, which placed even more stress on debt finance markets and investors, and the deterioration in the real economy during the fourth quarter of 2008.
Nevertheless, in 2008 the Group was able to complete the disposal of 11 properties and two individual units from the Ordinary Share Portfolio, for a total realisation of £27.7m excluding costs of sale. The Board believes that the value of the properties sold would be lower today than the sale price achieved. The proceeds from the sales were used to reduce debt within the Group.
The Board is disappointed that the Group was unable to make any sales from the "D" Ordinary Share Portfolio which was a contributory factor to its breach of its banking covenant, as further detailed below.
No property acquisitions were made during the year.
Debt
Over the course of 2008 the Ordinary Share Portfolio repaid £27.2 million of debt to its lenders. However, as a result of falling capital values, the level of gearing within the Ordinary Share Portfolio increased from 55.01% as at 31 December 2007 to 66.36% as at 31 December 2008.
The "D" Ordinary Share Portfolio repaid £1.0 million of debt to its lender over the course of the year. Falling capital values, however, meant that gearing increased from 53.33% as at 31 December 2007 to 79.57% as at 31 December 2008
As a result of the increased gearing levels within the Ordinary and "D" Ordinary Share Portfolios, the Group breached its LTV covenants with its lenders Bank of Scotland and Nationwide.
This could lead to the Group being forced, on the instructions of the lenders, to sell properties to reduce the level of gearing. However, the Board resolved to suspend distributions to both Ordinary Shareholders and "D" Ordinary Shareholders in order to retain income to reduce debt.
Working with J.C. Rathbone Associates Limited, a third party debt adviser, the Board is seeking to negotiate with its lenders a waiver of the LTV covenants in exchange for a higher interest charge. This will provide breathing space for the Group and enable a more orderly sale of property when market conditions improve.
The Ordinary Share Portfolio debt facilities had various interest rate swaps which effectively fixed interest rates until 27 June 2008. Upon expiry of these swaps the Board decided to re-fix the Company's debt at a rate of 5.56% which runs until 29 December 2010.
Comparative to the Bank of England's Base Rate the fixed rate now appears high. However, at the time of renewing the interest rate swap, oil prices were in excess of $100 per barrel, interest rates were at 5% and the Bank of England was warning that "risks to inflation in the medium term had moved further to the upside". Against this backdrop, the Board did not feel it prudent to move to a floating rate exposing the Group to the volatility of the capital markets. Furthermore, with the level of uncertainty in the commercial property market, the Board felt it was important to provide certainty in areas it could and to lock in at an interest rate the Group could afford to service.
The "D" Ordinary Share Portfolio has been able to benefit from lower borrowing costs with the expiry of its fixed rate interest rate swap and the movement of floating rates as at 3 March 2009. The Board will look to lock in this low rate in due course. This will help to offset the higher interest margin the Company is expected to pay on its debt following the breach of its loan covenants.
Expenses
The Board and the Property Investment Adviser have undertaken a review of the Group's operating expenses with a view to improving earnings per share. The Board is pleased to announce that the Property Investment Adviser has agreed to reduce its annual management fee by 25% with effect from 1 November 2008. From this date the annual fee in respect of the Ordinary Share gross assets reduced from 2% to 1.5%. In respect of the 'D' Ordinary Share gross assets, the annual fee reduced from 1.5% to 1.125%.
The Company also reached agreement with both the independent valuers and its sponsor that their fees will be reduced by the same percentage with effect from November 2008.
The Board estimates that these cost savings would have amounted to £620,000 in a full year based on the value of the property portfolio as at 31 December 2008.
Asset Management
The Board implemented changes to the asset management team it has in place and instructed Berkshire Asset Management Limited ("BAM") to manage the Group's entire property portfolio. BAM had previously managed approximately half of the properties in the Ordinary Share Portfolio.
Satisfyingly, this has already resulted in improvements with a small reduction in the void rate in the "D" Ordinary Share Portfolio which stood at approximately 15.6% at 31 December 2008. In addition good progress has been made in reducing the high levels of irrecoverable costs associated with running the "D" Ordinary Share Portfolio. Disappointingly, the void rate of the Ordinary Share Portfolio has increased over the last year to approximately 11.5%. This is unsurprising given the sharp downturn in the economy during the final quarter of 2008.
A full update on the asset management progress made during the year is provided in the Property Investment Adviser's Report.
Results and Dividend
The consolidated loss of the Group for the year ending 31 December 2008 was £49,039,791 (31 December 2007: loss of £16,326,104)
The NAV of the Ordinary Share Portfolio fell by 58.7% over the year from 100.44 pence per share to 41.44 pence per share. The NAV of the "D" Ordinary Share Portfolio fell by 78.9% over the year from 71.82 pence per share to 15.15 pence per share.
In January 2008 the Company paid dividends of 2.125p for Ordinary Shares and 1.625p for "D" Ordinary Shares which were declared in December 2007. The Company made capital distributions of 1.625p for Ordinary Shares and 1.25p for "D" Ordinary Shares in both April 2008 and July 2008. A further capital distribution of 1.625p was made to Ordinary Share Shareholders in October 2008.
In the 2008 Interim Report the Board stated its intention, "in the absence of unforeseen circumstances" to pay dividends, out of distributable capital reserves, at a reduced, but sustainable, level. Unfortunately the acceleration in the falls of capital values and the resulting breach of the Company's LTV covenants meant that it was no longer possible to make dividend payments. The "D" Ordinary Share and Ordinary Share dividends were suspended in October 2008 and January 2009 respectively.
Over the lifetime of the share classes, total returns have been 10.0% and -68.6% to Ordinary and "D" Ordinary Shareholders respectively based on the published net asset value per share at 31 December 2008 (net of ongoing issue costs). The significant divergence in performance reflects the relative launch dates of the share classes, the extended dividend payment history of the Ordinary Shares and the comparative resilience of the industrial properties which dominate the Ordinary Share Portfolio.
Cancellation of Shares
The Company did not undertake any share buy-backs during the year. The Board will continue to monitor the situation, but believes that the Group's resources are likely to be better directed elsewhere.
Future Prospects
2008 was the most difficult year for the Company and its shareholders. The Board is aware of the effect that the sharp falls in share price and, more particularly, the suspension of the dividend has had on shareholders.
Obtaining a waiver of the LTV covenants from the Group's lending banks will be a critical first step to the implementation of any strategy. Achieving a waiver from the Company's lenders would be assisted by the stability created by extending the life of the Company. At present, there is a shareholder vote scheduled for the continuation of the Company in May 2010. The Board is of the opinion that winding up the Company at such a time, were shareholders to vote for such action, would be counterproductive to the goal of preserving and maximising shareholder value. The Board believes that it is prudent to assume that commercial property values will continue to fall through 2009 and possibly into 2010 as the occupier market deteriorates in line with the general economy. Were the wind up resolution to be approved the Company would be attempting to sell a sizeable portfolio of commercial property at what may transpire to be the bottom of the market. This, of course, assumes that it would be possible to sell all of the Company's properties, which cannot be taken for granted given the availability of debt finance is likely to remain heavily constrained over the course of 2010 and 2011.
In light of this, the Board is of the opinion that shareholders would not be likely to vote for the winding up of the Company in May 2010. However, the existence of such a possibility creates instability and prevents the Company from taking actions to increase shareholder value. For example, the Company is unable to benefit from record low interest rates if the Board has to work under the assumption that the Group will be wound up in 2010.
The Board is therefore proposing to bring forward the vote on the continuation of the Company from May 2010 to mid 2009, with the proposition likely to ask for a continuation to 2012. Papers will be sent to shareholders regarding this in due course.
The Board is unable to make any guarantees with regards to the resurrection of the dividend. The table below shows the LTV ratios, the LTV targets and the projected earnings before interest of the Ordinary and "D" Ordinary Share Portfolio.
|
Ordinary Share Portfolio |
"D" Ordinary Share Portfolio |
|
|
LTV ratio (current) |
66.4% |
79.6% |
|
LTV ratio (covenant) |
60.0% |
65.0% |
|
Projected earnings before interest |
£6.1 million |
£1.4 million |
With regards to the Ordinary Share Portfolio it may be possible to gradually reduce the LTV ratio to a point at which a dividend could be re-established if capital values do not decline further and income remains steady. The Board, however, is not confident in making either prediction. Further asset sales, which might assist in reducing borrowing levels, could lead to the dividend being reinstated more quickly.
At this time, the Board believes it is unlikely that the dividend on either the Ordinary Shares or "D" Ordinary Shares will be re-established in the foreseeable future.
Jonathan Clague
Chairman
31 March 2009
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2008
|
Notes |
31 December 2008 |
31 December 2007 |
||||
|
£ |
£ |
|||||
|
INCOME |
||||||
|
Rental income from investment properties |
13,224,642 |
14,475,535 |
||||
|
Other income |
4 |
132,334 |
109,624 |
|||
|
13,356,976 |
14,585,159 |
|||||
|
EXPENDITURE |
||||||
|
Property Investment Adviser's management fee |
(1,160,166) |
(1,672,732) |
||||
|
Property Investment Adviser's incentive fee |
- |
2,642,122 |
||||
|
Property expenses |
(2,789,948) |
(3,111,080) |
||||
|
Other expenses |
4 |
(309,688) |
(755,859) |
|||
|
(4,259,802) |
(2,897,549) |
|||||
|
(Losses)/Gains from investments |
||||||
|
Realised (loss)/gain on disposal of investment properties |
(1,414,701) |
979,344 |
||||
|
Unrealised loss on revaluation of investment properties |
(50,044,066) |
(22,923,311) |
||||
|
(51,458,767) |
(21,943,967) |
|||||
|
Net operating profit for the year before finance costs |
(42,361,593) |
(10,256,357) |
||||
|
Interest receivable |
624,510 |
930,445 |
||||
|
Interest payable and similar charges |
(7,302,708) |
(7,000,192) |
||||
|
(6,678,198) |
(6,069,747) |
|||||
|
Net loss from ordinary activities before taxation |
(49,039,791) |
(16,326,104) |
||||
|
Taxation on ordinary activities |
5 |
- |
- |
|||
|
- |
||||||
|
Net loss from ordinary activities after taxation |
(49,039,791) |
(16,326,104) |
||||
|
Dividends - paid |
Ordinary |
6 |
- |
(14,573,637) |
||
|
"D" Ordinary |
6 |
- |
(2,126,141) |
|||
|
- |
(16,699,778) |
|||||
CONSOLIDATED BALANCE SHEET
As at 31 December 2008
|
Notes |
31 December 2008 |
31 December 2007 |
||||
|
£ |
£ |
|||||
|
NON-CURRENT ASSETS |
||||||
|
Investment properties |
8 |
122,050,000 |
198,600,000 |
|||
|
122,050,000 |
198,600,000 |
|||||
|
CURRENT ASSETS |
||||||
|
Trade and other receivables |
9 |
3,590,798 |
4,665,166 |
|||
|
Cash and cash equivalents |
2,195,623 |
4,716,322 |
||||
|
5,786,421 |
9,381,488 |
|||||
|
Total Assets |
127,836,421 |
207,981,488 |
||||
|
NON-CURRENT LIABILITIES |
||||||
|
Bank loans |
11 |
- |
108,270,769 |
|||
|
- |
108,270,769 |
|||||
|
CURRENT LIABILITIES |
||||||
|
Trade and other payables |
12 |
9,118,345 |
6,152,119 |
|||
|
Bank loans |
11 |
83,851,411 |
- |
|||
|
92,969,756 |
6,152,119 |
|||||
|
Total liabilities |
92,969,756 |
114,422,888 |
||||
|
CAPITAL AND RESERVES |
||||||
|
Share capital |
- Ordinary |
747,259 |
747,259 |
|||
|
- "D" Ordinary |
257,651 |
257,651 |
||||
|
- Deferred shares |
50,136 |
50,136 |
||||
|
Distributable capital reserve |
- Ordinary |
70,188,239 |
73,831,134 |
|||
|
- "D" Ordinary |
23,434,297 |
24,078,425 |
||||
|
Capital redemption reserve |
- Ordinary |
39,925 |
39,925 |
|||
|
Revenue reserves |
14 |
(54,907,499) |
(5,867,708) |
|||
|
Hedge reserves |
(4,943,343) |
421,778 |
||||
|
34,866,665 |
93,558,600 |
|||||
|
127,836,421 |
207,981,488 |
|||||
These financial statements were approved by the Board of Directors on 31 March 2009 and signed on its behalf by:
G P R Black
D Lake
CONSOLIDATED STATEMENT OF CASHFLOW
For the year ended 31 December 2008
|
31 December 2008 |
31 December 2007 |
||
|
|
£ |
£ |
|
|
Operating activities |
|
|
|
|
Profit before tax |
|
(49,039,791) |
(16,326,104) |
|
|
|
|
|
|
Adjustment to reconcile profit before tax to net cash flows |
|
|
|
|
Decrease in value of investment properties |
|
50,044,066 |
22,923,311 |
|
Realised loss/(gain) on sale of investment properties |
|
1,414,701 |
(979,344) |
|
Finance income |
|
(624,510) |
(930,445) |
|
Finance expense |
|
7,302,708 |
7,000,192 |
|
Amortised borrowing costs |
|
70,642 |
80,374 |
|
Decrease in debtors |
|
597,250 |
120,193 |
|
Increase/(Decrease) in creditors |
|
104,736 |
(2,641,823) |
|
|
|
|
|
|
Tax received/(paid) |
|
54,668 |
(29,224) |
|
Net deposits (repaid)/received |
|
(32,133) |
1,563 |
|
|
|
|
|
|
Net cashflows from operating activities |
|
9,892,337 |
9,218,693 |
|
|
|
|
|
|
Investing activities |
|
|
|
|
Interest received |
|
624,510 |
1,008,349 |
|
Payment for purchase of properties |
|
(2,248,345) |
(4,656,540) |
|
Proceeds from sale of properties |
|
27,295,872 |
10,235,771 |
|
|
|
|
|
|
Net cashflows from investing activities |
|
25,672,037 |
6,587, 580 |
|
|
|
|
|
|
Financing activities |
|
|
|
|
Dividends paid |
|
(6,291,408) |
(14,693,236) |
|
Share buyback |
|
- |
(4,176,931) |
|
Interest paid |
|
(7,303,665) |
(7,096,329) |
|
Bank loans repaid |
|
(28,240,000) |
(3,785,780) |
|
Bank loans drawndown |
|
3,750,000 |
10,763,000 |
|
Issue cost of long term borrowing |
|
- |
(5,500) |
|
|
|
|
|
|
Net cashflows from financing activities |
|
(38,085,073) |
(18,994,776) |
|
|
|
|
|
|
Net increase in cash |
|
(2,520,699) |
(3,188,503) |
|
|
|
|
|
|
Cash at 1 January |
|
4,716,322 |
7,904,825 |
|
|
|
|
|
|
Cash at 31 December |
|
2,195,623 |
4,716,322 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2008
|
Share Capital |
Share Premium |
Capital Reserve |
Capital Redemption Reserve |
Hedge Reserve |
Retained profit |
Total |
|
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
|
As at 1 January 2007 |
1,094,971 |
24,475,852 |
77,610,638 |
- |
851,001 |
27,158,174 |
131,190,636 |
|
Net loss for the year |
- |
- |
- |
- |
- |
(16,326,104) |
(16,326,104) |
|
Dividends |
- |
- |
- |
- |
- |
(16,699,778) |
(16,699,778) |
|
Movement in unrealised gains on revaluation of interest rate swaps |
- |
- |
- |
- |
(429,223) |
- |
(429,223) |
|
Cancellation of "C" Ordinary Shares on merge |
(501,357) |
- |
- |
50,136 |
- |
- |
(451,221) |
|
Issue of new Ordinary Shares arising from merge |
451,221 |
- |
- |
- |
- |
- |
451,221 |
|
Issue of deferred shares arising from merge |
50,136 |
- |
- |
(50,136) |
- |
- |
- |
|
Buyback of Ordinary shares |
(34,890) |
- |
(3,779,504) |
34,890 |
- |
- |
(3,779,504) |
|
Buyback of "D" Ordinary shares |
(5,035) |
- |
(397,427) |
5,035 |
- |
- |
(397,427) |
|
Cancellation of share premium account |
- |
(24,475,852) |
24,475,852 |
- |
- |
- |
- |
|
As at 1 January 2008 |
1,055,046 |
- |
97,909,559 |
39,925 |
421,778 |
(5,867,708) |
93,558,600 |
|
Net loss for the year |
- |
- |
- |
- |
- |
(49,039,791) |
(49,039,791) |
|
Capital distributions |
- |
- |
(4,287,023) |
- |
- |
- |
(4,287,023) |
|
Movement on unrealised losses on interest rate swaps |
- |
- |
- |
- |
(5,365,121) |
- |
(5,365,121) |
|
As at 31 December 2008 |
1,055,046 |
- |
93,622,536 |
39,925 |
(4,943,343) |
(54,907,499) |
34,866,665 |
COMPANY BALANCE SHEET
As at 31 December 2008
|
Notes |
31 December 2008 |
31 December 2007 |
|||||||||
|
£ |
Restated £ |
||||||||||
|
FIXED ASSETS |
|||||||||||
|
Investments in subsidiaries |
15 |
3 |
8,506,201 |
||||||||
|
3 |
8,506,201 |
||||||||||
|
CURRENT ASSETS |
|||||||||||
|
Trade and other receivables |
9 |
33,603,473 |
91,670,979 |
||||||||
|
Cash at bank |
1,344,566 |
788,027 |
|||||||||
|
34,948,039 |
92,459,006 |
||||||||||
|
TOTAL ASSETS |
34,948,042 |
100,965,207 |
|||||||||
|
CURRENT LIABILITIES |
|||||||||||
|
Trade and other payables |
12 |
81,377 |
4,294,495 |
||||||||
|
81,377 |
4,294,495 |
||||||||||
|
Capital and Reserves |
|||||||||||
|
Share capital |
- Ordinary |
13 |
747,259 |
747,259 |
|||||||
|
- "D" Ordinary |
13 |
257,651 |
257,651 |
||||||||
|
- Deferred shares |
13 |
50,136 |
50,136 |
||||||||
|
Distributable capital reserve |
- Ordinary |
70,188,239 |
73,831,134 |
||||||||
|
- "D" Ordinary |
23,434,297 |
24,078,425 |
|||||||||
|
Capital redemption reserve |
- Ordinary |
39,925 |
39,925 |
||||||||
|
Revenue reserves |
14 |
(59,850,842) |
(2,333,818) |
||||||||
|
34,866,665 |
96,670,712 |
||||||||||
|
34,948,042 |
100,965,207 |
||||||||||
This financial statement was approved by the Board of Directors on 31 March 2009 and signed on its behalf by:
G P R Black
D Lake
COMPANY STATEMENT OF CASHFLOW
For the year ended 31 December 2008
|
31 December 2008 |
31 December 2007 |
||
|
|
£ |
£ |
|
|
Operating activities |
|
|
|
|
Profit before tax |
|
(57,517,024) |
(2,974,884) |
|
|
|
|
|
|
Adjustments to reconcile profit before tax to net cash flows |
|
|
|
|
Unrealised losses on investments |
|
8,506,198 |
9,897,431 |
|
Write down of intercompany loans |
|
54,676,929 |
- |
|
Dividend income |
|
- |
(800,799) |
|
Finance income |
|
(5,829,083) |
(6,407,723) |
|
Finance expense |
|
1,354 |
1,191 |
|
Decrease/(Increase) in debtors |
|
25,221 |
(9,144) |
|
(Decrease)/Increase in creditors |
|
(14,898) |
2,985 |
|
|
|
|
|
|
Net cashflows from operating activities |
|
(151,303) |
(290,943) |
|
|
|
|
|
|
Investing activities |
|
|
|
|
Dividends received |
|
- |
800,799 |
|
Interest received |
|
4,514,315 |
6,227,074 |
|
Interest paid |
|
(1,354) |
(1,191) |
|
|
|
|
|
|
Net cashflows from investing activities |
|
4,512,961 |
7,026,682 |
|
|
|
|
|
|
Financing activities |
|
|
|
|
Payment for share buyback |
|
- |
(4,176,931) |
|
Dividends paid |
|
(6,291,408) |
(14,693,236) |
|
Loans made to group companies |
|
(5,868,710) |
(3,056,708) |
|
Loans repaid from group companies |
|
8,354,999 |
10,953,710 |
|
|
|
|
|
|
Net cashflows from financing activities |
|
(3,805,119) |
(10,973,165) |
|
|
|
|
|
|
Net increase/(decrease) in cash |
|
556,539 |
(4,237,426) |
|
|
|
|
|
|
Cash at 1 January |
|
788,027 |
5,025,453 |
|
|
|
|
|
|
Cash at 31 December |
|
1,344,566 |
788,027 |
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2008
|
Share Capital |
Share Premium |
Capital Reserve |
Capital Redemption Reserve |
Retained profit |
Total |
|
|
£ |
£ |
£ |
£ |
£ |
£ |
|
|
As at 1 January 2007 (previously reported) |
1,094,971 |
24,475,852 |
77,610,638 |
- |
17,340,844 |
120,522,305 |
|
Prior year adjustment (note 2) |
- |
- |
- |
- |
10,668,331 |
10,668,331 |
|
As at 1 January 2007 (restated) |
1,094,971 |
24,475,852 |
77,610,638 |
- |
28,009,175 |
131,190,636 |
|
Net loss for the year |
- |
- |
- |
- |
(13,643,215) |
(13,643,215) |
|
Dividends |
- |
- |
- |
- |
(16,699,778) |
(16,699,778) |
|
Cancellation of "C" Ordinary Shares on merger |
(501,357) |
- |
- |
50,136 |
- |
(451,221) |
|
Issue of new Ordinary Shares arising from merger |
451,221 |
- |
- |
- |
- |
451,221 |
|
Issue of deferred shares arising from merger |
50,136 |
- |
- |
(50,136) |
- |
- |
|
Buyback of Ordinary shares |
(34,890) |
- |
(3,779,504) |
34,890 |
- |
(3,779,504) |
|
Buyback of "D" Ordinary shares |
(5,035) |
- |
(397,427) |
5,035 |
- |
(397,427) |
|
Cancellation of share premium account |
- |
(24,475,852) |
24,475,852 |
- |
- |
- |
|
As at 31 December 2007 |
1,055,046 |
- |
97,909,559 |
39,925 |
(2,333,818) |
96,670,712 |
|
Net loss for the year |
- |
- |
- |
- |
(57,517,024) |
(57,517,024) |
|
Capital distributions |
- |
- |
(4,287,023) |
- |
- |
(4,287,023) |
|
As at 31 December 2008 |
1,055,046 |
- |
93,622,536 |
39,925 |
(59,850,842) |
34,866,665 |
ORDINARY SHARES
INCOME STATEMENT
For the year ended 31 December 2008
|
31 December 2008 |
31 December 2007 |
|||||||
|
£ |
£ |
|||||||
|
INCOME |
||||||||
|
Rental Income from investment properties |
10,765,843 |
11,924,550 |
||||||
|
Other income |
122,631 |
109,624 |
||||||
|
10,888,474 |
12,034,174 |
|||||||
|
EXPENDITURE |
||||||||
|
Property Investment Adviser's management fee |
(976,566) |
(1,404,837) |
||||||
|
Property Investment Adviser's incentive fee |
- |
2,642,122 |
||||||
|
Property expenses |
(1,775,827) |
(2,296,214) |
||||||
|
Other expenses |
(245,770) |
(538,718) |
||||||
|
(2,998,163) |
(1,597,647) |
|||||||
|
(Losses)/Gains from investments |
||||||||
|
Realised (loss)/gain on disposal of investment properties |
(1,414,701) |
979,344 |
||||||
|
Unrealised loss on revaluation of investment properties |
(36,224,532) |
(17,193,058) |
||||||
|
(37,639,233) |
(16,213,714) |
|||||||
|
Net operating profit for the year before finance costs |
(29,748,922) |
(5,777,187) |
||||||
|
Interest receivable |
607,947 |
890,003 |
||||||
|
Interest payable and similar charges |
(6,119,658) |
(6,023,387) |
||||||
|
(5,511,711) |
(5,133,384) |
|||||||
|
Net loss from ordinary activities before taxation |
(35,260,633) |
(10,910,571) |
||||||
|
Taxation on loss from ordinary activities |
- |
- |
||||||
|
- |
- |
|||||||
|
Net loss from ordinary activities after taxation |
(35,260,633) |
(10,910,571) |
||||||
|
Dividends - paid |
- |
(14,573,637) |
||||||
|
Basic and diluted loss per Ordinary Share shown in pence |
(47.19) |
(14.15) |
||||||
ORDINARY SHARES
CONSOLIDATED BALANCE SHEET
As at 31 December 2008
|
31 December 2008 |
31 December 2007 |
|||||
|
£ |
£ |
|||||
|
NON-CURRENT ASSETS |
||||||
|
Investment properties |
98,330,000 |
161,330,000 |
||||
|
98,330,000 |
161,330,000 |
|||||
|
CURRENT ASSETS |
||||||
|
Trade and other receivables |
3,669,049 |
3,892,743 |
||||
|
Cash and cash equivalents |
1,917,812 |
3,139,628 |
||||
|
5,586,861 |
7,032,371 |
|||||
|
Total Assets |
103,916,861 |
168,362,371 |
||||
|
NON-CURRENT LIABILITIES |
||||||
|
Bank loans |
- |
88,576,251 |
||||
|
- |
88,576,251 |
|||||
|
CURRENT LIABILITIES |
||||||
|
Trade and other payables |
7,841,954 |
4,730,987 |
||||
|
Bank loans |
65,111,773 |
- |
||||
|
72,953,727 |
4,730,987 |
|||||
|
Total liabilities |
72,953,727 |
93,307,238 |
||||
|
CAPITAL AND RESERVES |
||||||
|
Share capital |
747,259 |
747,259 |
||||
|
Deferred shares |
50,136 |
50,136 |
||||
|
Distributable capital reserve |
70,188,239 |
73,831,134 |
||||
|
Revenue reserves |
(35,175,456) |
85,177 |
||||
|
Capital redemption reserve |
34,890 |
34,890 |
||||
|
Hedge reserves |
(4,881,934) |
306,537 |
||||
|
30,963,134 |
75,055,133 |
|||||
|
103,916,861 |
168,362,371 |
|||||
"D" ORDINARY SHARES
INCOME STATEMENT
For the year ended 31 December 2008
|
31 December 2008 |
31 December 2007 |
||||||
|
INCOME |
£ |
£ |
|||||
|
Rental Income from investment properties |
2,458,799 |
2,550,985 |
|||||
|
Other income |
9,703 |
- |
|||||
|
2,468,502 |
2,550,985 |
||||||
|
EXPENDITURE |
|||||||
|
Property Investment Adviser's fee |
(183,600) |
(267,895) |
|||||
|
Property expenses |
(1,014,121) |
(814,866) |
|||||
|
Other expenses |
(63,918) |
(217,141) |
|||||
|
(1,261,639) |
(1,299,902) |
||||||
|
Losses from investments |
|||||||
|
Unrealised loss on revaluation of investment properties |
(13,819,534) |
(5,730,253) |
|||||
|
(13,819,534) |
(5,730,253) |
||||||
|
Net operating profit for the year before finance costs |
(12,612,671) |
(4,479,170) |
|||||
|
Interest receivable |
31,712 |
40,442 |
|||||
|
Interest payable and similar charges |
(1,198,199) |
(976,805) |
|||||
|
(1,166,487) |
(936,363) |
||||||
|
Net loss from ordinary activities before taxation |
(13,779,158) |
(5,415,533) |
|||||
|
Taxation on loss of ordinary activities |
- |
- |
|||||
|
- |
- |
||||||
|
Net loss from ordinary activities after taxation |
((13,779,158) |
(5,415,533) |
|||||
|
Dividends - paid |
- |
(2,126,141) |
|||||
|
Basic and diluted loss per "D" Ordinary Share shown in pence |
(53.48) |
(20.70) |
|||||
"D" ORDINARY SHARES
BALANCE SHEET
As at 31 December 2008
|
31 December 2008 |
31 December 2007 |
|||||
|
£ |
£ |
|||||
|
NON-CURRENT ASSETS |
||||||
|
Fixed Investment properties |
23,720,000 |
37,270,000 |
||||
|
23,720,000 |
37,270,000 |
|||||
|
CURRENT ASSETS |
||||||
|
Trade and other receivables |
786,898 |
772,423 |
||||
|
Cash and cash equivalents |
277,811 |
1,576,694 |
||||
|
1,064,709 |
2,349,117 |
|||||
|
Total Assets |
24,784,709 |
39,619,117 |
||||
|
NON-CURRENT LIABILITIES |
||||||
|
Bank loans |
- |
19,694,518 |
||||
|
- |
19,694,518 |
|||||
|
CURRENT LIABILITIES |
||||||
|
Trade and other payables |
2,141,540 |
1,421,132 |
||||
|
Bank loans |
18,739,638 |
- |
||||
|
20,881,178 |
1,421,132 |
|||||
|
Total liabilities |
20,881,178 |
21,115,650 |
||||
|
CAPITAL AND RESERVES |
||||||
|
Share capital |
257,651 |
257,651 |
||||
|
Distributable capital reserve |
23,434,297 |
24,078,425 |
||||
|
Revenue reserves |
(19,732,043) |
(5,952,885) |
||||
|
Capital redemption reserve |
5,035 |
5,035 |
||||
|
Hedge reserves |
(61,409) |
115,241 |
||||
|
3,903,531 |
18,503,467 |
|||||
|
24,784,709 |
39,619,117 |
|||||
Related Shares:
IMPT.L