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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Comm. Prop. (SEE LSE:CGA) | LSE:CMGP | London | Ordinary Share | GB00B1P70L34 | ORD 1P (SEE LSE:CGA) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 18.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
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TIDMCMGP
RNS Number : 9886S
Commercial Group Properties PLC
29 May 2009
For Immediate Release 29 May 2009
COMMERCIAL GROUP PROPERTIES PLC
("COMMERCIAL GROUP", "CGP" or the "COMPANY")
AUDITED RESULTS FOR THE PERIOD ENDED 30 NOVEMBER 2008 AND
NOTICE OF AGM
CHAIRMAN'S STATEMENT
I am delighted to present Commercial Group Properties Plc's second annual report
since its admission to AIM in 2007.
Obviously, no company can be completely immune to the global recession but our
Company is fortunate that its major development at Manston is in conjunction
with Chinese Government Agencies.
Whilst China has suffered as their western markets have contracted, their
Government is keen to progress with the China Gateway development at our Manston
site in order to be in place and ready to benefit from the recovery as soon as
this occurs.
We are, therefore, as a result of the continued support of our bankers in the
privileged position of aiming to start the Manston development during the first
half of 2010.
I would also like to pay tribute to our Executive Directors and all our staff
who have worked so hard to progress this exciting project.
Robin Bolton
Chairman
28 May 2009
CHIEF EXECUTIVE'S REVIEW
Introduction
The Company has continued to develop its relationships in China and it is as a
result of these relationships that CGP has been able to increase the asset value
of the Company's investment property at Manston during what has generally been a
difficult trading period due to the overall economic environment.
China
Despite these difficult conditions, China's economy grew at the rate of 9% in
2008. The forecast for 2009 is a growth rate of over 7%. The Company is
fortunate that the Government of China recognise that continual growth is
dependent on a successful globalisation program. This is very much a view shared
by organisations such as the United Nations Industrial Development Organisation
(UNIDO).
On 19 May 2009 the Company signed a Memorandum of Understanding with UNIDO's
Investment and Technology Promotion Office (ITPO) China, a formal endorsement of
the China Gateway program at Manston.
China has been 'a crucial engine of growth' for the world economy. Today, more
than ever, the world is looking to China to be a big contributor to global
economic growth. The steady and robust economic growth of China is vital to help
the world economy emerge from the current crisis.
Manston
On 10 October 2008 the Company announced that a resolution to grant planning
consent, subject to conditions, had been approved at the Extraordinary Meeting
of Thanet District Council on 9 October 2008. The planning conditions are in the
process of being met and the consent for Phase 1 of the 'China Gateway' scheme
at Manston in respect of 1,481,815 sq ft of commercial development should allow
construction to commence in 2010.
The Company acknowledges the kind support of local agencies including the South
East England Development Agency (SEEDA), Locate in Kent and Thanet District
Council for their help and co-operation during the past year with the Manston
'China Gateway' project.
As detailed in the Chief Executive's Review in last years annual report,
agreements have been entered into with regard to the leasing of significant
areas within China Gateway, and despite the current world economic downturn, the
parties to these agreements are still fully supportive of the project.
With the endorsement of China Gateway by UNIDO-ITPO the Company will now be in a
position to confirm interest from other Chinese provinces and commence
negotiations with funding sources within China to obtain the relevant
development finance.
Wigan
CGP and Wigan Borough Council (WBC) have been in talks for the past two years
along with Chinamex, China's official foreign trade body, regarding a proposed
site at Westwood Park, Wigan. The Company's plans for the site include
industrial and commercial premises for manufacturing and marketing, warehousing,
research and development facilities, offices and a hotel. CGP expects to hold
further negotiations with WBC regarding the proposed site during the next 12
months. Lord Peter Smith, the Metro Leader, remains committed to the project,
stating in April 2009 that "Wigan's colossal 'textile city' project is still
very much on".
Dover
The Company has two properties intended for sale in Dover, 273 acres at
Farthingloe and 24 acres at Western Heights, both located south west of Dover in
Kent. The key part of these two sites is an area of approximately 30 acres at
Farthingloe which has the benefit of planning permission for the erection of
220,000 sq ft of office space. Due to the prevailing economic conditions,
progress with regard to these properties has been difficult in the year under
review, and the Company has reported a write down in value of these sites in
both the Interim Financial Statements and the attached Annual Financial
Statements to reflect their estimated realisable value.
Trading result
The Company has continued its investment in infrastructure and overhead to
enable ongoing enhancement of the value of the Manston site. Despite the write
down of the value of the Dover properties and the ongoing funding and overhead
costs, the increase in the value of China Gateway has restricted the loss before
taxation reported in the attached Financial Statements to GBP8.9 million.
Balance sheet
As detailed in Note 24 to the Financial Statements, the Company has adopted the
amendments to International Accounting Standard 40 "Investment Property",
contained in the "Improvement to IFRSs" issued in May 2008 by the International
Accounting Standards Board, early. The Company has thus changed its accounting
policy with regard to property under development and deferred expenditure. This
has resulted in a restatement of the Company's total equity to GBP31.5 million
at 30 November 2007. The trading losses for the current year have resulted in a
reduction in total equity to GBP22.4 million at 30 November 2008.
The statement on going concern included within the Accounting Policies section
of the Financial Statements details the position with regard to the Company's
ongoing banking facilities.
Outlook
The Board continues to believe that, given its excellent relationships with
China, CGP is in a position to capitalise on the globalisation program. Despite
the current financial challenges, the Company still expects to increase the
value of its investment property at Manston by the progression of China Gateway,
the conclusion of successful negotiations with its existing lending bank and the
access to new finance sources following the recent agreement with UNIDO-ITPO.
The Board continues to view the Company's future with significant optimism.
Ken Wills
C.E.O
28 May 2009
COMMERCIAL GROUP PROPERTIES PLC
BALANCE SHEET
At 30 November 2008
+------------------------------------------+----------+----------------+----------------+
| | Note | 2008 | 2007 |
+------------------------------------------+----------+----------------+----------------+
| ASSETS | | GBP000 | GBP000 |
+------------------------------------------+----------+----------------+----------------+
| | | | (restated) |
+------------------------------------------+----------+----------------+----------------+
| Non-current assets | | | |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| Fixtures and fittings | 4 | 6 | 9 |
+------------------------------------------+----------+----------------+----------------+
| Investment property | 5 | 55,650 | 50,900 |
+------------------------------------------+----------+----------------+----------------+
| Deferred tax asset | 13 | 1,353 | 700 |
+------------------------------------------+----------+----------------+----------------+
| | | _______ | _______ |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| Total non-current assets | | 57,009 | 51,609 |
+------------------------------------------+----------+----------------+----------------+
| | | _______ | _______ |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| Current assets | | | |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| Properties intended for sale | 6 | 2,000 | 11,600 |
+------------------------------------------+----------+----------------+----------------+
| Trade and other receivables | 7 | 117 | 58 |
+------------------------------------------+----------+----------------+----------------+
| Cash and cash equivalents | 8 | 33 | 324 |
+------------------------------------------+----------+----------------+----------------+
| | | _______ | _______ |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| Total current assets | | 2,150 | 11,982 |
+------------------------------------------+----------+----------------+----------------+
| | | _______ | _______ |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| TOTAL ASSETS | | 59,159 | 63,591 |
+------------------------------------------+----------+----------------+----------------+
| | | _______ | _______ |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| EQUITY AND LIABILITIES | | | |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| Equity | | | |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| Issued share capital | 9 | 210 | 210 |
+------------------------------------------+----------+----------------+----------------+
| Share premium | | 15,065 | 15,065 |
+------------------------------------------+----------+----------------+----------------+
| Retained earnings | | 7,156 | 16,201 |
+------------------------------------------+----------+----------------+----------------+
| | | _______ | _______ |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| Total equity | | 22,431 | 31,476 |
+------------------------------------------+----------+----------------+----------------+
| | | _______ | _______ |
+------------------------------------------+----------+----------------+----------------+
| Non-current liabilities | | | |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| Interest bearing loans and borrowings | 12 | - | 24,496 |
+------------------------------------------+----------+----------------+----------------+
| Deferred tax provision | 13 | 7,447 | 6,624 |
+------------------------------------------+----------+----------------+----------------+
| | | _______ | _______ |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| Total non-current liabilities | | 7,447 | 31,120 |
+------------------------------------------+----------+----------------+----------------+
| | | _______ | ______ |
+------------------------------------------+----------+----------------+----------------+
| Current liabilities | | | |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| Trade and other payables | 11 | 952 | 995 |
+------------------------------------------+----------+----------------+----------------+
| Interest bearing loans and borrowings | 12 | 28,329 | - |
+------------------------------------------+----------+----------------+----------------+
| | | _______ | _______ |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| Total current liabilities | | 29,281 | 995 |
+------------------------------------------+----------+----------------+----------------+
| | | _______ | _______ |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| Total liabilities | | 36,728 | 32,115 |
+------------------------------------------+----------+----------------+----------------+
| | | _______ | _______ |
+------------------------------------------+----------+----------------+----------------+
| | | | |
+------------------------------------------+----------+----------------+----------------+
| TOTAL EQUITY AND LIABILITIES | | 59,159 | 63,591 |
+------------------------------------------+----------+----------------+----------------+
| | | _______ | _______ |
+------------------------------------------+----------+----------------+----------------+
The Financial Statements were approved and authorised for issue by the Board of
Directors on
28 May 2009, and were signed on its behalf by:
K E Wills
The Notes form part of these Financial Statements.
COMMERCIAL GROUP PROPERTIES PLC
INCOME STATEMENT
For the year ended 30 November 2008
+---------------------------------------+-------------+-----------------+---------------+
| | Note | 2008 | 2007 |
+---------------------------------------+-------------+-----------------+---------------+
| | | GBP000 | GBP000 |
+---------------------------------------+-------------+-----------------+---------------+
| | | | (restated) |
+---------------------------------------+-------------+-----------------+---------------+
| Continuing Operations: | | | |
+---------------------------------------+-------------+-----------------+---------------+
| | | | |
+---------------------------------------+-------------+-----------------+---------------+
| Revenue | | - | - |
+---------------------------------------+-------------+-----------------+---------------+
| | | | |
+---------------------------------------+-------------+-----------------+---------------+
| Administrative expenses | 15 | (1,290) | (1,465) |
+---------------------------------------+-------------+-----------------+---------------+
| Other operating income | 14 | 61 | 36 |
+---------------------------------------+-------------+-----------------+---------------+
| Write down of properties intended for | 6 | (9,600) | - |
| sale | | | |
+---------------------------------------+-------------+-----------------+---------------+
| Fair value gains on investment | 5 | 2,940 | 23,656 |
| property | | | |
+---------------------------------------+-------------+-----------------+---------------+
| | | _______ | _______ |
+---------------------------------------+-------------+-----------------+---------------+
| | | | |
+---------------------------------------+-------------+-----------------+---------------+
| Operating (Loss)/Profit | | (7,889) | 22,227 |
+---------------------------------------+-------------+-----------------+---------------+
| | | | |
+---------------------------------------+-------------+-----------------+---------------+
| Finance income | 18 | 4 | 15 |
+---------------------------------------+-------------+-----------------+---------------+
| Finance costs | 18 | (990) | (117) |
+---------------------------------------+-------------+-----------------+---------------+
| | | _______ | _______ |
+---------------------------------------+-------------+-----------------+---------------+
| | | | |
+---------------------------------------+-------------+-----------------+---------------+
| (Loss)/Profit before taxation | | (8,875) | 22,125 |
+---------------------------------------+-------------+-----------------+---------------+
| | | | |
+---------------------------------------+-------------+-----------------+---------------+
| | | | |
+---------------------------------------+-------------+-----------------+---------------+
| Corporation tax | 19 | (170) | (5,924) |
+---------------------------------------+-------------+-----------------+---------------+
| | | _______ | _______ |
+---------------------------------------+-------------+-----------------+---------------+
| | | | |
+---------------------------------------+-------------+-----------------+---------------+
| (Loss)/Profit for the Financial | 3 | (9,045) | 16,201 |
| Period | | | |
+---------------------------------------+-------------+-----------------+---------------+
| | | _______ | _______ |
+---------------------------------------+-------------+-----------------+---------------+
| | | | |
+---------------------------------------+-------------+-----------------+---------------+
| Attributable to: | | | |
+---------------------------------------+-------------+-----------------+---------------+
| Equity holders of the Company | | (9,045) | 16,201 |
+---------------------------------------+-------------+-----------------+---------------+
| | | _______ | _______ |
+---------------------------------------+-------------+-----------------+---------------+
| | | | |
+---------------------------------------+-------------+-----------------+---------------+
| | | | |
+---------------------------------------+-------------+-----------------+---------------+
| (Loss)/Earnings per Share from | | | |
| Continuing | | | |
| Operations Attributable to the | | | |
| Equity | | | |
| Holders of the Company during the | | | |
| Period | | | |
+---------------------------------------+-------------+-----------------+---------------+
| | | | |
+---------------------------------------+-------------+-----------------+---------------+
| Basic pence per share | 20 | (43.07)p | 79.90p |
+---------------------------------------+-------------+-----------------+---------------+
| | | | |
+---------------------------------------+-------------+-----------------+---------------+
| | | _______ | _______ |
+---------------------------------------+-------------+-----------------+---------------+
| | | | |
+---------------------------------------+-------------+-----------------+---------------+
The Notes form part of these Financial Statements.
COMMERCIAL GROUP PROPERTIES PLC
STATEMENT OF CHANGES IN EQUITY
Year Ended 30 November 2008
+------------------------------+---------+------------+-------------+------------+----------+
| | Attributable to the Equity Holders of the | |
| | Company | |
| | | |
+------------------------------+-------------------------------------------------+----------+
| | Share | Share | Revaluation | Retained | Total |
| | | | | | |
+------------------------------+---------+------------+-------------+------------+----------+
| | Capital | Premium | Reserve | Earnings | |
+------------------------------+---------+------------+-------------+------------+----------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------------------+---------+------------+-------------+------------+----------+
| | | | (restated) | (restated) | |
+------------------------------+---------+------------+-------------+------------+----------+
| | | | | | |
+------------------------------+---------+------------+-------------+------------+----------+
| At 6 July 2006- | - | - | - | - | - |
+------------------------------+---------+------------+-------------+------------+----------+
| | _______ | _______ | _______ | _______ | _______ |
+------------------------------+---------+------------+-------------+------------+----------+
| | | | | | |
+------------------------------+---------+------------+-------------+------------+----------+
| Net Income Recognised | | | | | |
| directly | | | | | |
+------------------------------+---------+------------+-------------+------------+----------+
| in Equity (restated - see | - | - | - | - | - |
| note 24) | | | | | |
+------------------------------+---------+------------+-------------+------------+----------+
| | | | | | |
+------------------------------+---------+------------+-------------+------------+----------+
| Profit for the period-- | - | - | - | 16,201 | 16,201 |
+------------------------------+---------+------------+-------------+------------+----------+
| (restated - see note 24) | | | | | |
+------------------------------+---------+------------+-------------+------------+----------+
| | _______ | _______ | _______ | _____ | _____ |
+------------------------------+---------+------------+-------------+------------+----------+
| Total Recognised Income and | | | | | |
+------------------------------+---------+------------+-------------+------------+----------+
| Expense for the period - | - | - | | 16,201 | 16,201 |
+------------------------------+---------+------------+-------------+------------+----------+
| | | | | | |
+------------------------------+---------+------------+-------------+------------+----------+
| Issue of shares | 210 | 15,290 | - | - | 15,500 |
+------------------------------+---------+------------+-------------+------------+----------+
| | | | | | |
+------------------------------+---------+------------+-------------+------------+----------+
| Flotation costs | - | (225) | - | - | (225) |
+------------------------------+---------+------------+-------------+------------+----------+
| | _______ | _______ | _______ | _______ | _______ |
+------------------------------+---------+------------+-------------+------------+----------+
| | | | | | |
+------------------------------+---------+------------+-------------+------------+----------+
| At 30 November 2007 | 210 | 15,065 | - | 16,201 | 31,476 |
+------------------------------+---------+------------+-------------+------------+----------+
| | | | | | |
+------------------------------+---------+------------+-------------+------------+----------+
| Loss for the year | - | - | - | (9,045) | (9,045) |
+------------------------------+---------+------------+-------------+------------+----------+
| | _______ | _______ | _______ | _______ | _______ |
+------------------------------+---------+------------+-------------+------------+----------+
| | | | | | |
+------------------------------+---------+------------+-------------+------------+----------+
| At 30 November 2008 | 210 | 15,065 | - | 7,156 | 22,431 |
+------------------------------+---------+------------+-------------+------------+----------+
| | _______ | _______ | _______ | _______ | _______ |
+------------------------------+---------+------------+-------------+------------+----------+
| | | | | | |
+------------------------------+---------+------------+-------------+------------+----------+
The Notes form part of these Financial Statements.
COMMERCIAL GROUP PROPERTIES PLC
CASH FLOW STATEMENT
Year ended 30 November 2008
+-------------------------------------------------+----------+----------+----------------+
| | 2008 | | 2007 |
+-------------------------------------------------+----------+----------+----------------+
| | GBP000 | | GBP000 |
+-------------------------------------------------+----------+----------+----------------+
| | | | (restated) |
+-------------------------------------------------+----------+----------+----------------+
| | | | |
+-------------------------------------------------+----------+----------+----------------+
| Cash used in Operations | | | |
+-------------------------------------------------+----------+----------+----------------+
| (Loss)/Profit before taxation | (8,875) | | 22,125 |
+-------------------------------------------------+----------+----------+----------------+
| Adjustments for: | | | |
+-------------------------------------------------+----------+----------+----------------+
| Depreciation | 3 | | 3 |
+-------------------------------------------------+----------+----------+----------------+
| Fair value of investment property | (2,940) | | (23,656) |
+-------------------------------------------------+----------+----------+----------------+
| Interest income | (4) | | (15) |
+-------------------------------------------------+----------+----------+----------------+
| Interest expense | 990 | | 117 |
+-------------------------------------------------+----------+----------+----------------+
| Increase in trade and other receivables | (59) | | (58) |
+-------------------------------------------------+----------+----------+----------------+
| Decrease/(increase) in inventories | 9,600 | | (11,600) |
+-------------------------------------------------+----------+----------+----------------+
| (Decrease)/increase in trade payables | (43) | | 995 |
+-------------------------------------------------+----------+----------+----------------+
| | ________ | | ________ |
+-------------------------------------------------+----------+----------+----------------+
| | | | |
+-------------------------------------------------+----------+----------+----------------+
| Cash used in Operations | (1,328) | | (12,089) |
+-------------------------------------------------+----------+----------+----------------+
| | | | |
+-------------------------------------------------+----------+----------+----------------+
| Interest paid | (990) | | (117) |
+-------------------------------------------------+----------+----------+----------------+
| | ________ | | ________ |
+-------------------------------------------------+----------+----------+----------------+
| | | | |
+-------------------------------------------------+----------+----------+----------------+
| Net Cash used in Operating Activities | (2,318) | | (12,206) |
+-------------------------------------------------+----------+----------+----------------+
| | ________ | | ________ |
+-------------------------------------------------+----------+----------+----------------+
| | | | |
+-------------------------------------------------+----------+----------+----------------+
| Cash Flows from Investing Activities | | | |
+-------------------------------------------------+----------+----------+----------------+
| Purchase of property, fixtures and fittings | (1,810) | | (13,256) |
+-------------------------------------------------+----------+----------+----------------+
| Interest received | 4 | | 15 |
+-------------------------------------------------+----------+----------+----------------+
| | ________ | | ________ |
+-------------------------------------------------+----------+----------+----------------+
| | | | |
+-------------------------------------------------+----------+----------+----------------+
| Net Cash used in Investing Activities | (1,806) | | (13,241) |
+-------------------------------------------------+----------+----------+----------------+
| | ________ | | ________ |
+-------------------------------------------------+----------+----------+----------------+
| | | | |
+-------------------------------------------------+----------+----------+----------------+
| Cash Flows from Financing Activities | | | |
+-------------------------------------------------+----------+----------+----------------+
| Net proceeds from issue of share capital | - | | 1,275 |
+-------------------------------------------------+----------+----------+----------------+
| Proceeds from short-term borrowings | 3,833 | | - |
+-------------------------------------------------+----------+----------+----------------+
| Proceeds from long-term borrowings | - | | 24,496 |
+-------------------------------------------------+----------+----------+----------------+
| | ________ | | ________ |
+-------------------------------------------------+----------+----------+----------------+
| | | | |
+-------------------------------------------------+----------+----------+----------------+
| Net Cash used in Financing Activities | 3,833 | | 25,771 |
+-------------------------------------------------+----------+----------+----------------+
| | ________ | | ________ |
+-------------------------------------------------+----------+----------+----------------+
| | | | |
+-------------------------------------------------+----------+----------+----------------+
| Net (Decrease)/Increase in Cash and Cash | (291) | | 324 |
| Equivalents | | | |
+-------------------------------------------------+----------+----------+----------------+
| | ________ | | ________ |
+-------------------------------------------------+----------+----------+----------------+
| | | | |
+-------------------------------------------------+----------+----------+----------------+
| Cash and Cash Equivalents at Beginning of | 324 | | - |
| Period | | | |
+-------------------------------------------------+----------+----------+----------------+
| | ________ | | ________ |
+-------------------------------------------------+----------+----------+----------------+
| | | | |
+-------------------------------------------------+----------+----------+----------------+
| Cash and Cash Equivalents at End of Period | 33 | | 324 |
+-------------------------------------------------+----------+----------+----------------+
| | ________ | | ________ |
+-------------------------------------------------+----------+----------+----------------+
| | | | |
+-------------------------------------------------+----------+----------+----------------+
The Notes form part of these Financial Statements.
COMMERCIAL GROUP PROPERTIES PLC
ACCOUNTING POLICIES
Year ended 30 November 2008
Summary of Significant Accounting Policies
The principal Accounting Policies applied in the preparation of these Financial
Statements are set out below. These Policies have been consistently applied to
all the periods presented, unless otherwise stated.
Basis of Preparation of Financial Statements
The Financial Statements have been prepared in accordance with EU-endorsed
International Financial Reporting Standards (IFRS) and IFRIC interpretations and
the parts of the Companies Act 1985 applicable to companies reporting under
IFRS. The Financial Statements have also been prepared under the historical cost
convention, as modified by the carrying of investment property at fair value.
Items included in the Financial Statements are measured using the currency of
the primary economic environment in which the entity operates (its "functional
currency"). The Financial Statements are presented in Pounds Sterling (GBP),
which is the Company's functional and presentation currency.
Going Concern
In considering the Company's ability to continue in operations for the
foreseeable future, the Directors have considered the Company's forecast
operating cash-flows for the period up to the end of May 2010, and the
development cash-flows associated with the Company's investment properties over
periods appropriate to the development in each case.
In the view of the Directors, the Company requires continued financial support
in order to continue as a going concern. These Financial Statements have been
prepared on a going concern basis in view of the continued support being
received from the Company's lending bank, Israel Discount Bank. That support
takes the form of facilities available or agreed in outline subject to both
specific and general conditions as described below.
The Company's loan facility at the balance sheet date was GBP28.5 million and
this was extended to GBP30.2 million in April 2009. This facility is subject to
review on 31 May 2009 in relation to the satisfaction of specified conditions.
Those conditions have already been met. The facility is repayable on demand;
however, the bank has confirmed that subject to no breach of covenants, it is
their present intention to continue to make this facility available until at
least 31 May 2010. The Directors have reviewed the relevant aspects of the
Company's forecasts and the potential development position of the investment
property for the period to 31 May 2010 and consider that there should be no
breaches of the covenants concerned.
In addition, discussions are well progressed with the bank in relation to
further facilities sufficient to cover the Company's working capital requirement
and interest liabilities through to February 2010. It is proposed that this
additional facility will be dependant upon the Company achieving certain defined
objectives in relation to the Cultural Centre/Industrial Hub at the China
Gateway Project at Manston and the commencement of negotiations with other banks
in relation to development funding and the possible re-financing of elements of
the Company's existing facilities.
In February 2010 the position regarding increased facilities to cover ongoing
interest and working capital requirements will be reviewed in the light of
progress achieved in negotiations with other funding sources.
The Directors are confident of a satisfactory outcome to the ongoing discussions
with the Company's lending bank with whom they continue to have a close and
productive business relationship, and are also confident that all relevant
conditions will be met.
After making enquiries, and considering the matters described above, the
Directors have a reasonable expectation that the Company has adequate resources
to continue in operational existence for the foreseeable future. For these
reasons, they continue to adopt the going concern basis in preparing the Annual
Report and Financial Statements.
Standards and Interpretations in Issue but not yet Effective or not yet Endorsed
A revised version of IAS 1 "Presentation of Financial Statements" will require
information in financial statements to be aggregated on the basis of shared
characteristics, and introduce a statement of comprehensive income for annual
periods beginning on or after 1 January 2009. The expected impact of this
revision is being assessed by management, and where relevant, the Company will
incorporate this revision into their Financial Statements in the future.
A revised version of IAS 23 "Borrowing Costs" removes the option of immediately
recognising as an expense borrowing costs that relate to assets that take a
substantial period of time to get ready for use or sale for borrowing costs
relating to qualifying assets for which the commencement date for capitalisation
is on or after 1 January 2009. This revision is being assessed by management but
is not expected to have an impact on the Company's financial statements as they
currently have a policy in place of capitalising borrowing costs for such
qualifying assets, which is in line with the revised version of IAS 23.
A revised version of IFRS 3 "Business Combinations" and amendments to IAS 27
"Consolidated and Separate Financial Statements" ensure that the accounting for
business combinations is the same whether an entity is applying IFRSs or US GAAP
for annual periods beginning on or after 1 July 2009 and subject to EU
endorsement. These revisions are not expected to have an impact on the Company's
Financial Statements.
Amendments to IFRS 1 "First-time Adoption of International Financial Reporting
Standards" and IAS 27 "Consolidated and Separate Financial Statements" address
concerns that retrospectively determine the cost of an investment in separate
financial statements and applying the cost method in accordance with IAS 27 on
first-time adoption of IFRSs cannot, in some circumstances, be achieved without
undue cost or effort for annual periods beginning on or after 1 July 2009. These
amendments are not expected to have an impact on the Company's Financial
Statements.
An amendment to IFRS 2 "Share-based Payment" clarifies that vesting conditions
are service conditions and performance conditions only, and specifies that all
cancellations, whether by the entity or by other parties, should receive the
same accounting treatment for annual periods beginning on or after 1 January
2009. This amendment is not expected to have an impact on the Company's
Financial Statements.
Amendments to IFRS 7 "Financial Instruments: Disclosures" require enhanced
disclosures about fair value measurements and liquidity risk for annual periods
beginning on or after 1 January 2009 and subject to EU endorsement. These
amendments are not expected to have an impact on the Company's Financial
Statements.
Amendments to IAS 32 "Financial Instruments: Presentation" and IAS 1
"Presentation of Financial Statements - Puttable Financial Instruments and
Obligations Arising on Liquidation" improve the accounting for particular types
of financial instruments that have characteristics similar to ordinary shares
but are at present classified as financial liabilities for annual periods
beginning on or after 1 January 2009. These amendments are not expected to have
an impact on the Company's Financial Statements.
Amendments to IAS 39 "Financial Instruments: Recognition and Measurement"
provide additional guidance on what can be designated as a hedged item
for annual periods beginning on or after 1 July 2009 and subject to EU
endorsement. These amendments are not expected to have an impact on the
Company's Financial Statements.
Amendments to IFRIC 9 "Reassessment of Embedded Derivatives" and IAS 39
"Financial Instruments: Recognition and Measurement" clarify the accounting
treatment of embedded derivatives for entities that make use of the
reclassification amendment issued by the IASB in October 2008 for annual periods
ending on or after 30 June 2009 and subject to EU endorsement. These amendments
are not expected to have an impact on the Company's Financial Statements.
"Improvements to IFRSs" are collections of amendments to IFRSs resulting from
the annual improvements project, a method of making necessary, but non-urgent,
amendments to IFRSs that will not be included as part of another major project.
There are various implementation dates: for May 2008 improvements, earliest is
annual periods beginning on or after 1 January 2009; for April 2009
improvements, earliest is annual periods beginning on or after 1 July 2009 and
subject to EU endorsement.
IFRIC 15 "Agreements for the Construction of Real Estate" provides guidance on
how to determine whether an agreement for the construction of real estate is
within the scope of IAS 11 Construction Contracts or IAS 18 Revenue and when
revenue from the construction should be recognised for annual periods beginning
on or after 1 January 2009 and subject to EU endorsement. This IFRIC is not
expected to have an impact on the Company's Financial Statements.
IFRIC 16 "Hedges of a Net Investment in a Foreign Operation" clarifies:
* whether risk arises from the foreign currency exposure to the functional
currencies of the foreign operation and the parent entity, or from the foreign
currency exposure to the functional currency of the foreign operation and the
presentation currency of the parent entity's consolidated financial statements;
* which entity within a group can hold a hedging instrument in a hedge of a net
investment in a foreign operation, and in particular whether the parent entity
holding the net investment in a foreign operation must also hold the hedging
instrument;
* how an entity should determine the amounts to be reclassified from equity to
profit or loss for both the hedging instrument and the hedged item when the
entity disposes of the investment For annual periods beginning on or after 1
October 2008 and subject to EU endorsement.
This IFRIC is not expected to have an impact on the Company's Financial
Statements.
IFRIC 17 "Distributions of Non-cash Assets to Owners" standardises practice in
the measurement of distributions of non?cash assets to owners for annual periods
beginning on or after 1 July 2009 and subject to EU endorsement. This IFRIC is
not expected to have an impact on the Company's Financial Statements.
IFRIC 18 "Transfers of Assets from Customers" clarifies the requirements of
IFRSs for agreements in which an entity receives from a customer an item of
property, plant and equipment that the entity must then use either to connect
the customer to a network or to provide the customer with ongoing access to a
supply of goods or services (such as a supply of electricity, gas or water) for
transfers of assets from customers received on or after 1 July 2009 and subject
to EU endorsement. This IFRIC is not expected to have an impact on the Company's
Financial Statements.
Foreign Currencies
Transactions in foreign currencies are translated into the functional currency
at the exchange rate ruling at the date of the transaction. Monetary assets and
liabilities in foreign currencies are retranslated at the rates of exchange
ruling at the Balance Sheet date. Foreign exchange differences on retranslation
and settlement are recognised in the Income Statement.
Fixtures and Fittings
Fixtures and fittings are stated at cost, net of depreciation and any provision
for impairment. Cost includes expenditure that is directly attributable to the
acquisition of the items.
Depreciation is provided on fixtures and fittings at a rate calculated to write
off the cost or valuation, less estimated residual value, of each asset on a
straight-line basis over its expected useful life, estimated to be 4 years.
Investment Property
Investment property, comprising property to be developed and held for long term
rental yields, is not occupied by the Company. Investment property is carried at
fair value, representing open market value determined annually by external
valuers. Fair value is based on active market prices adjusted, if necessary, for
any difference in the nature, location or condition of the specific asset.
Changes in fair value are recorded in the Income Statement.
Properties Intended for Sale
Properties intended for sale are classified under current assets and are stated
at the lower of cost and net realisable value.
Cost comprises land cost and development costs including attributable borrowing
costs and charges allocated during the development period.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash at bank and in hand, demand deposits,
bank overdrafts and short term, highly liquid investments that are readily
convertible into known amounts of cash and are subject to an insignificant risk
of changes in value.
Financial Liabilities
Financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instrument. Financial liabilities are measured
initially at fair value, net of direct issue costs, and subsequently at
amortised cost.
A financial liability is derecognised only when the obligation is extinguished,
that is, when the obligation is discharged, is cancelled, or expires.
Taxation
Current tax is the tax currently payable based on the taxable profit for the
year.
Deferred tax is provided in full, using the liability method, on temporary
differences between the carrying amounts of assets and liabilities and their tax
bases, except when, at the initial recognition of the asset or liability, there
is no effect on accounting or taxable profit or loss. Deferred tax is determined
using tax rates and laws that have been substantially enacted by the Balance
Sheet date, and that are expected to apply when the temporary difference
reverses.
Tax losses available to be carried forward and other tax credits are recognised
as deferred tax assets to the extent that it is probable that there will be
future taxable profits against which the temporary differences can be utilised.
Changes in deferred tax assets or liabilities are recognised as a component of
the tax expense in the Income Statement, except where they relate to items that
are charged or credited directly to equity, in which case the related deferred
tax is also charged or credited directly to equity.
Share Capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.
Revenue Recognition
Revenue comprises the fair value of the consideration received or receivable by
the Company for income arising in the ordinary course of the Company's
activities from its property interests, excluding VAT.
Borrowing Costs
The Company has adopted a policy of capitalising borrowing costs in respect of
qualifying assets. Borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying asset are capitalised as
part of the cost of that asset.
The amount of borrowing costs eligible for capitalisation is determined by
calculating the weighted average of the borrowing costs applicable to the
qualifying asset that are outstanding during the period other than borrowings
made specifically for the purposes of obtaining a qualifying asset.
Borrowing costs are not capitalised during extended periods when development
activity is suspended.
COMMERCIAL GROUP PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 November 2008
1. Financial Risk Management and Financial Instruments
Financial Risk Factors
The Company's activities expose it to a variety of financial risks. The main
risks are identified as being the availability of sufficient liquidity to
continue operations and risks associated directly with the value of the
Company's property interests.
Liquidity Risk
The Company has borrowed to finance the acquisition and development of its
sites. Israel Discount Bank, which has provided the finance to the Company, has
reserved the right to demand repayment of all advances made by it to the Company
at any time. However, as long as the Company does not breach any covenants, the
facility is expected to be available until 31 May 2010. The Directors have a
close relationship with the bank and keep them fully informed of all aspects of
the Company's affairs so that they may negotiate any funding required in
advance. Further details regarding additional funding and ongoing negotiations
with Israel Discount Bank are detailed in the statement on going concern on page
19.
Foreign Exchange Risk
The Company undertakes sale and purchase transactions denominated in foreign
currencies. The risk is managed by maintaining bank accounts denominated in
those currencies.
Credit Risk
Where debt finance is utilised, this is subject to pre-approval by the Board of
Directors, and such approval is limited to financial institutions with a proven
track record. The amount of exposure to any individual counterparty is not a
specified limit but is reassessed annually by the Board.
Interest Rate Risk
The Company has both interest bearing assets and liabilities. Interest-bearing
assets are only cash balances, all of which earn interest at a fixed rate. The
Company has a policy of negotiating competitive interest rates with its bankers
on an ongoing basis. The Directors will revisit the appropriateness of this
policy should the Company's operations change in size or nature.
Capital Risk Management
The Company's objectives when managing capital are to safeguard the Company's
ability to continue as a going concern in order to provide returns for
shareholders and benefits for other stakeholders, and to maintain an optimal
capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure the Company may adjust the
amount of dividends paid to shareholders, return capital to shareholders, issue
new shares or sell assets to reduce debt.
Fair Value Estimation
The carrying value less impairment for trade receivables and payable is assumed
to approximate to their fair values, due to their short term nature. Investment
property is carried at fair value representing open market value determined
annually by external valuers.
2. Critical Accounting Estimates, Judgements and Assumptions
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectation of future events that are
believed to be reasonable under the circumstances.
The Company makes estimates, judgements and assumptions concerning the future.
The resulting accounting estimates will, by definition, seldom equal the related
actual results. The assumptions and judgements that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities
within the financial statements are detailed below.
a) Pre-lease agreement
As reported in the previous period's Financial Statements the Company has
entered into a pre-lease agreement with the Beijing SME Association in relation
to a significant part of the Manston development. It is assumed that the Beijing
SME Association will proceed with the eventual signing of formal leases in
relation to this agreement despite the extended development period that is now
expected. The Directors maintain a constant dialogue with the Beijing SME
Association and remain confident that this will be the case. Should the Beijing
SME Association fail to sign leases upon the development of the site the
Directors are of the view that other organisations and companies within China
would be eager to become tenants under similar or improved terms.
b) Working capital and development finance
Notes 12 and 22 to the Financial Statements detail the position with regards to
the Company's banking facilities. It is assumed that the existing facilities and
such further facilities as may be required to fund the ongoing working capital
requirement of the Company will be made available. Although the facility at the
Balance Sheet date was repayable on demand, the Company's lending bank have
indicated to the Company that it is their intention to make that facility and
further facilities available to the Company until at least 31 May 2010. It is
the Directors' belief that their continued good relationship with the Company's
lending bankers will enable their working capital requirement to be met.
c) Deferred tax asset
Included in the balance sheet is a deferred tax asset of GBP1.353 million (2007
GBP0.7 million). As detailed in the taxation accounting policy this relates to
tax losses recognised to the extent that there will be future taxable profits
against which the losses can be utilised. In recognising this deferred tax asset
the Company is assuming that such future profits will arise. The creation of
such profits from its main activities is the Company's primary objective and the
Directors are confident that the objective will be achieved. Should this
assumption prove to be incorrect then the deferred tax asset would be written
down to nil.
d) General economic uncertainty
In preparing the Financial Statements and in planning for the future development
of the Company's trading activities the Directors have had to make judgements
regarding general economic conditions and the uncertainties arising from the
worldwide recession. The Directors have actively discussed these issues with
senior business and political figures in both China and the UK and are of the
opinion that the Company's Manston project is well placed to benefit from any
subsequent upturn in the global economy.
e) Value of properties intended for sale
As detailed in note 6 to the Financial Statements the value of the Company's
properties intended for sale has been reduced to GBP2 million. This is based on
the result of the Company's review of the disposable value of the property and
interest expressed by potential purchasers. It is therefore the Directors'
opinion that GBP2 million represents an achievable disposal value for these
property holdings.
+----+---------------------------------------------------------+------------+------------+
| 3. | Auditors' Remuneration | 2008 | 2007 |
+----+---------------------------------------------------------+------------+------------+
| | | GBP000 | GBP000 |
+----+---------------------------------------------------------+------------+------------+
| | | | (restated) |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | Fees payable to the Company's auditor for the audit of | 27 | 12 |
| | the accounts for the period | | |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | The fees paid to the auditors in respect of other | | |
| | services are as follows: | | |
+----+---------------------------------------------------------+------------+------------+
| | Corporate finance fees | - | 13 |
+----+---------------------------------------------------------+------------+------------+
| | Other fees | 11 | 7 |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
+----+---------------------------------------------------------+------------+------------+
| 4. | Fixtures and Fittings | Fixtures | |
+----+---------------------------------------------------------+------------+------------+
| | | and | |
+----+---------------------------------------------------------+------------+------------+
| | | fittings | Total |
+----+---------------------------------------------------------+------------+------------+
| | | GBP000 | GBP000 |
+----+---------------------------------------------------------+------------+------------+
| | | | (restated) |
+----+---------------------------------------------------------+------------+------------+
| | Cost | | |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | At 6 July 2006 | - | - |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | Additions | 12 | 12 |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | At 30 November 2007 and 30 November 2008 | 12 | 12 |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | Depreciation | | |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | At 6 July 2006 | - | - |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | Charge for the period | 3 | 3 |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | At 30 November 2007 | 3 | 3 |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | Charge for the year | 3 | 3 |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | At 30 November 2008 | 6 | 6 |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | Net Book Value | | |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | At 30 November 2008 | 6 | 6 |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | At 30 November 2007 | 9 | 9 |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | At 6 July 2006 | - | - |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
A depreciation charge of GBP3,153 is included in administrative expenses in the
Income Statement.
+----+---------------------------------------------------------+------------+------------+
| 5. | Investment Property | 2008 | 2007 |
+----+---------------------------------------------------------+------------+------------+
| | | GBP000 | GBP000 |
+----+---------------------------------------------------------+------------+------------+
| | | | (restated) |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | Beginning of year/period | 50,900 | - |
+----+---------------------------------------------------------+------------+------------+
| | Additions | 1,810 | 27,244 |
+----+---------------------------------------------------------+------------+------------+
| | Fair value gains | 2,940 | 23,656 |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | End of year/period | 55,650 | 50,900 |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
The Company's land and buildings were last revalued as at 16 October 2008 by
Matthews and Goodman LLP, Chartered Surveyors and independent valuers.
Valuations were made on the basis of market value subject to and with benefit of
an agreement to lease 1 million square feet of industrial buildings. The fair
value surplus was credited to the Income Statement (see Note 24 for details
regarding the change in accounting policy). Matthews and Goodman LLP have
considered the events between the date of the valuation and the balance sheet
date. They have concluded that there would have been no material change in value
reported. They also confirmed that the assumptions used in arriving at the
valuation would still be valid at the balance sheet date.
Included in additions to investment property is GBP1,145,186 (2007 GBP987,760)
interest relating to the finance costs directly attributable to this asset.
Part of the total bank borrowings of GBP28,328,747 (2007 GBP24,495,564) are
secured by way of a legal charge against the investment property noted above.
+----+---------------------------------------------------------+------------+------------+
| 6. | Properties intended for sale | 2008 | 2007 |
+----+---------------------------------------------------------+------------+------------+
| | | GBP000 | GBP000 |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | Properties intended for sale | 2,000 | 11,600 |
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | | 2,000 | 11,600 |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
Part of the total bank borrowings of GBP28,328,747 are secured by way of a legal
charge against the properties intended for sale stated above.
The write down in value of the properties for resale is a consequence of the
national reduction in land bank values and development land values. In addition
the option by Dover Harbour Board to acquire part of the Farthingloe site is now
unlikely to come to fruition.
+----+---------------------------------------------------------+------------+------------+
| 7. | Trade and Other Receivables | 2008 | 2007 |
+----+---------------------------------------------------------+------------+------------+
| | | GBP000 | GBP000 |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | Trade receivables | 5 | 8 |
+----+---------------------------------------------------------+------------+------------+
| | Prepayments | 71 | 8 |
+----+---------------------------------------------------------+------------+------------+
| | VAT recoverable | 29 | 27 |
+----+---------------------------------------------------------+------------+------------+
| | Other receivables | 12 | 15 |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | | 117 | 58 |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
No trade receivables are overdue and no provisions are required.
+----+---------------------------------------------------------+------------+------------+
| 8. | Cash and Cash Equivalents | 2008 | 2007 |
+----+---------------------------------------------------------+------------+------------+
| | | GBP000 | GBP000 |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
| | Cash at bank and in hand | 33 | 324 |
+----+---------------------------------------------------------+------------+------------+
| | | _______ | _______ |
+----+---------------------------------------------------------+------------+------------+
| | | | |
+----+---------------------------------------------------------+------------+------------+
+--------+------------+---------+----------+---------+---------+
| 9. | Called-Up | | | | |
| | Share | | | | |
| | Capital | | | | |
+--------+------------+---------+----------+---------+---------+
| | | | | | |
+--------+------------+---------+----------+---------+---------+
| | Authorised | | | 2008 | 2007 |
+--------+------------+---------+----------+---------+---------+
| | | | | GBP | GBP |
+--------+------------+---------+----------+---------+---------+
| | | | | | |
+--------+------------+---------+----------+---------+---------+
| | 50,000,000 | | | 500,000 | 500,000 |
| | Ordinary | | | | |
| | shares of | | | | |
| | GBP0.01 | | | | |
+--------+------------+---------+----------+---------+---------+
| | | | | _______ | _______ |
+--------+------------+---------+----------+---------+---------+
| | | | | | |
+--------+------------+---------+----------+---------+---------+
| | | Number | Ordinary | Share | |
+--------+------------+---------+----------+---------+---------+
| | | of | shares | premium | Total |
| | | shares | | | |
+--------+------------+---------+----------+---------+---------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP000 |
+--------+------------+---------+----------+---------+---------+
| | | | | | |
+--------+------------+---------+----------+---------+---------+
| | At 6 | - | - | - | - |
| | July | | | | |
| | 2006 | | | | |
+--------+------------+---------+----------+---------+---------+
| | Issue | 18,000 | 180 | 13,820 | 14,000 |
| | of | | | | |
| | shares | | | | |
| | to | | | | |
| | acquire | | | | |
| | property | | | | |
+--------+------------+---------+----------+---------+---------+
| | Proceeds | 3,000 | 30 | 1,245 | 1,275 |
| | from | | | | |
| | shares | | | | |
| | issued | | | | |
| | net of | | | | |
| | costs | | | | |
+--------+------------+---------+----------+---------+---------+
| | | _______ | _______ | _______ | _______ |
+--------+------------+---------+----------+---------+---------+
| | | | | | |
+--------+------------+---------+----------+---------+---------+
| | At 30 | 21,000 | 210 | 15,065 | 15,275 |
| | November | | | | |
| | 2007 and | | | | |
| | 2008 | | | | |
+--------+------------+---------+----------+---------+---------+
| | | _______ | _______ | _______ | _______ |
+--------+------------+---------+----------+---------+---------+
| | | | | | |
+--------+------------+---------+----------+---------+---------+
10Retained Earnings
Included within retained earning are surpluses arising from the open market
valuation of investment property amounting to GBP26.6 million which are
unrealised and not distributable.
+--------+----------+--------+--------+---------+---------+
| 11. | Trade | | | 2008 | 2007 |
| | and | | | | |
| | Other | | | | |
| | Payables | | | | |
+--------+----------+--------+--------+---------+---------+
| | | | | GBP000 | GBP000 |
+--------+----------+--------+--------+---------+---------+
| | | | | | |
+--------+----------+--------+--------+---------+---------+
| | Trade | | | 197 | 265 |
| | payables | | | | |
+--------+----------+--------+--------+---------+---------+
| | Other | | | 2 | 19 |
| | payables | | | | |
+--------+----------+--------+--------+---------+---------+
| | Social | | | 2 | 10 |
| | security | | | | |
| | and | | | | |
| | other | | | | |
| | taxes | | | | |
+--------+----------+--------+--------+---------+---------+
| | Accrued | | | 751 | 701 |
| | expenses | | | | |
+--------+----------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+----------+--------+--------+---------+---------+
| | | | | | |
+--------+----------+--------+--------+---------+---------+
| | | | | 952 | 995 |
+--------+----------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+----------+--------+--------+---------+---------+
| | | | | | |
+--------+----------+--------+--------+---------+---------+
All the trade and other payables are due within one year.
+--------+-------------+--------+--------+---------+---------+
| 12. | Borrowings | | | 2008 | 2007 |
+--------+-------------+--------+--------+---------+---------+
| | | | | GBP000 | GBP000 |
+--------+-------------+--------+--------+---------+---------+
| | | | | | |
+--------+-------------+--------+--------+---------+---------+
| | Current | | | | |
+--------+-------------+--------+--------+---------+---------+
| | Interest | | | 28,329 | - |
| | bearing | | | | |
| | loans | | | | |
| | and | | | | |
| | borrowings | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+-------------+--------+--------+---------+---------+
| | | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | 28,329 | - |
+--------+-------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+-------------+--------+--------+---------+---------+
| | | | | | |
+--------+-------------+--------+--------+---------+---------+
| | Non-Current | | | - | 24,496 |
+--------+-------------+--------+--------+---------+---------+
| | Interest | | | _______ | _______ |
| | bearing | | | | |
| | loans | | | | |
| | and | | | | |
| | borrowings | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | - | 24,496 |
+--------+-------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+-------------+--------+--------+---------+---------+
| | | | | | |
+--------+-------------+--------+--------+---------+---------+
Bank borrowings are repayable on demand. However the bank has indicated their
intention to make the facility available until 31 May 2010. The borrowings bear
interest at LIBOR plus 3%.
Total bank borrowings of GBP28,328,747 (2007 - GBP24,495,564) are secured by way
of a legal charge against the investment property and properties intended for
sale.
At 30 November 2008, the Company had GBP271,253 (2007 - GBP4,104,436) remaining
against the agreed facility of GBP28.5 million. The facility was extended after
the year end by a further GBP1.7 million. See Note 22 and the statement on going
concern on page 19 for further details.
The fair value of the borrowings is as stated above.
+--------+--------------+--------+--------+-------------+------------+
| 13. | Deferred | | | 2008 | 2007 |
| | Tax | | | | |
+--------+--------------+--------+--------+-------------+------------+
| | | | | GBP000 | GBP000 |
+--------+--------------+--------+--------+-------------+------------+
| | | | | | (restated) |
+--------+--------------+--------+--------+-------------+------------+
| | Deferred | | | | |
| | tax | | | | |
| | assets: | | | | |
+--------+--------------+--------+--------+-------------+------------+
| | - to | | | (1,353) | (700) |
| | be | | | | |
| | recovered | | | | |
| | after | | | | |
| | more than | | | | |
| | 12 months | | | | |
+--------+--------------+--------+--------+-------------+------------+
| | | | | | |
+--------+--------------+--------+--------+-------------+------------+
| | Deferred | | | | |
| | tax | | | | |
| | liabilities: | | | | |
+--------+--------------+--------+--------+-------------+------------+
| | - to | | | 7,447 | 6,624 |
| | be | | | | |
| | recovered | | | | |
| | after | | | | |
| | more than | | | | |
| | 12 months | | | | |
+--------+--------------+--------+--------+-------------+------------+
| | | | | _______ | _______ |
+--------+--------------+--------+--------+-------------+------------+
| | | | | | |
+--------+--------------+--------+--------+-------------+------------+
| | Net | | | 6,094 | 5,924 |
| | deferred | | | | |
| | tax | | | | |
| | liability | | | | |
+--------+--------------+--------+--------+-------------+------------+
| | | | | _______ | _______ |
+--------+--------------+--------+--------+-------------+------------+
| | | | | | |
+--------+--------------+--------+--------+-------------+------------+
The deferred tax asset represents Schedule A losses carried forward which are
expected to be offset against future rental income from the Manston development.
The deferred tax liability represents the surplus arising from the fair value
gain on the investment property.
The gross movement on the deferred tax account is:
+--------+-----------+--------+--------+-----------+-----------+
| | Income | | | 823 | 6,624 |
| | statement | | | | |
| | debit | | | | |
+--------+-----------+--------+--------+-----------+-----------+
| | Income | | | (653) | (700) |
| | statement | | | | |
| | credit | | | | |
+--------+-----------+--------+--------+-----------+-----------+
| | | | | _______ | _______ |
+--------+-----------+--------+--------+-----------+-----------+
| | | | | | |
+--------+-----------+--------+--------+-----------+-----------+
| | Net | | | 170 | 5,924 |
| | charge | | | | |
| | to | | | | |
| | Income | | | | |
| | Statement | | | | |
+--------+-----------+--------+--------+-----------+-----------+
| | | | | | |
+--------+-----------+--------+--------+-----------+-----------+
| | At | | | 5,924 | - |
| | start | | | | |
| | of | | | | |
| | period | | | | |
+--------+-----------+--------+--------+-----------+-----------+
| | | | | _______ | _______ |
+--------+-----------+--------+--------+-----------+-----------+
| | | | | | |
+--------+-----------+--------+--------+-----------+-----------+
| | At end | | | 6,094 | 5,924 |
| | of | | | | |
| | period | | | | |
+--------+-----------+--------+--------+-----------+-----------+
| | | | | _______ | _______ |
+--------+-----------+--------+--------+-----------+-----------+
| | | | | | |
+--------+-----------+--------+--------+-----------+-----------+
+--------+-------------+--------+--------+---------+---------+
| 13. | Deferred | | | Tax | |
| | Tax | | | | |
| | (continued) | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | losses | Total |
+--------+-------------+--------+--------+---------+---------+
| | Deferred | | | GBP000 | GBP000 |
| | tax | | | | |
| | assets | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | | |
+--------+-------------+--------+--------+---------+---------+
| | At 6 | | | - | - |
| | July | | | | |
| | 2006 | | | | |
+--------+-------------+--------+--------+---------+---------+
| | Charged | | | 700 | 700 |
| | directly | | | | |
| | to | | | | |
| | income | | | | |
| | statement | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+-------------+--------+--------+---------+---------+
| | | | | | |
+--------+-------------+--------+--------+---------+---------+
| | At 30 | | | 700 | 700 |
| | November | | | | |
| | 2007 | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | | |
+--------+-------------+--------+--------+---------+---------+
| | Charged | | | 653 | 653 |
| | directly | | | | |
| | to | | | | |
| | income | | | | |
| | statement | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+-------------+--------+--------+---------+---------+
| | | | | | |
+--------+-------------+--------+--------+---------+---------+
| | At 30 | | | 1,353 | 1,353 |
| | November | | | | |
| | 2008 | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+-------------+--------+--------+---------+---------+
| | | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | Other | Total |
+--------+-------------+--------+--------+---------+---------+
| | Deferred | | | GBP000 | GBP000 |
| | tax | | | | |
| | liabilities | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | | |
+--------+-------------+--------+--------+---------+---------+
| | At 6 | | | - | - |
| | July | | | | |
| | 2006 | | | | |
+--------+-------------+--------+--------+---------+---------+
| | Charged | | | 6,624 | 6,624 |
| | directly | | | | |
| | to | | | | |
| | income | | | | |
| | statement | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+-------------+--------+--------+---------+---------+
| | | | | | |
+--------+-------------+--------+--------+---------+---------+
| | At 30 | | | 6,624 | 6,624 |
| | November | | | | |
| | 2007 | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | | |
+--------+-------------+--------+--------+---------+---------+
| | Charged | | | 823 | 823 |
| | directly | | | | |
| | to | | | | |
| | income | | | | |
| | statement | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+-------------+--------+--------+---------+---------+
| | | | | | |
+--------+-------------+--------+--------+---------+---------+
| | At 30 | | | 7,447 | 7,447 |
| | November | | | | |
| | 2008 | | | | |
+--------+-------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+-------------+--------+--------+---------+---------+
| | | | | | |
+--------+-------------+--------+--------+---------+---------+
+--------+--------+--------+--------+---------+---------+
| 14. | Other | | | 2008 | 2007 |
| | Income | | | | |
+--------+--------+--------+--------+---------+---------+
| | | | | GBP000 | GBP000 |
+--------+--------+--------+--------+---------+---------+
| | | | | | |
+--------+--------+--------+--------+---------+---------+
| | Rental | | | 61 | 36 |
| | income | | | | |
+--------+--------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+--------+--------+--------+---------+---------+
| | | | | | |
+--------+--------+--------+--------+---------+---------+
| | | | | 61 | 36 |
+--------+--------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+--------+--------+--------+---------+---------+
| | | | | | |
+--------+--------+--------+--------+---------+---------+
+--------+---------------+--------+--------+---------+---------+
| 15. | Expenses | | | 2008 | 2007 |
| | by | | | | |
| | Nature | | | | |
+--------+---------------+--------+--------+---------+---------+
| | | | | GBP000 | GBP000 |
+--------+---------------+--------+--------+---------+---------+
| | | | | | |
+--------+---------------+--------+--------+---------+---------+
| | Staff | | | 479 | 277 |
| | costs | | | | |
+--------+---------------+--------+--------+---------+---------+
| | Depreciation | | | 3 | 3 |
+--------+---------------+--------+--------+---------+---------+
| | Establishment | | | 88 | 128 |
| | expenses | | | | |
+--------+---------------+--------+--------+---------+---------+
| | Operating | | | 77 | 30 |
| | expenses | | | | |
+--------+---------------+--------+--------+---------+---------+
| | Other | | | 643 | 1,027 |
| | costs | | | | |
+--------+---------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+---------------+--------+--------+---------+---------+
| | | | | | |
+--------+---------------+--------+--------+---------+---------+
| | Total | | | 1,290 | 1,465 |
| | Expenses | | | | |
+--------+---------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+---------------+--------+--------+---------+---------+
| | | | | | |
+--------+---------------+--------+--------+---------+---------+
+--------+----------------+--------+--------+---------+---------+
| 16. | Employees | | | 2008 | 2007 |
+--------+----------------+--------+--------+---------+---------+
| | | | | GBP000 | GBP000 |
+--------+----------------+--------+--------+---------+---------+
| | Staff | | | | |
| | Costs | | | | |
| | (including | | | | |
| | Directors) | | | | |
+--------+----------------+--------+--------+---------+---------+
| | Wages | | | 444 | 257 |
| | and | | | | |
| | salaries | | | | |
+--------+----------------+--------+--------+---------+---------+
| | Social | | | 35 | 20 |
| | security | | | | |
| | costs | | | | |
+--------+----------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+----------------+--------+--------+---------+---------+
| | | | | | |
+--------+----------------+--------+--------+---------+---------+
| | | | | 479 | 277 |
+--------+----------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+----------------+--------+--------+---------+---------+
| | | | | | |
+--------+----------------+--------+--------+---------+---------+
| | | | | 2008 | 2007 |
+--------+----------------+--------+--------+---------+---------+
| | Average Number of | No | No. |
| | Employees (including | | |
| | executive Directors) | | |
+--------+----------------------------------+---------+---------+
| | | | | | |
+--------+----------------+--------+--------+---------+---------+
| | Administrative | | | 8 | 5 |
+--------+----------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+----------------+--------+--------+---------+---------+
| | | | | | |
+--------+----------------+--------+--------+---------+---------+
| | | | | 8 | 5 |
+--------+----------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+----------------+--------+--------+---------+---------+
| | | | | | |
+--------+----------------+--------+--------+---------+---------+
+--------+--------------+--------+--------+---------+---------+
| 17. | Directors' | | | 2008 | 2007 |
| | Remuneration | | | | |
+--------+--------------+--------+--------+---------+---------+
| | | | | GBP000 | GBP000 |
+--------+--------------+--------+--------+---------+---------+
| | | | | | |
+--------+--------------+--------+--------+---------+---------+
| | Emoluments | | | 352 | 216 |
+--------+--------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+--------------+--------+--------+---------+---------+
| | | | | | |
+--------+--------------+--------+--------+---------+---------+
| | | | | 352 | 216 |
+--------+--------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+--------------+--------+--------+---------+---------+
| | | | | | |
+--------+--------------+--------+--------+---------+---------+
| | Highest | | | 127 | 82 |
| | paid | | | | |
| | director | | | | |
+--------+--------------+--------+--------+---------+---------+
| | | | | _______ | _______ |
+--------+--------------+--------+--------+---------+---------+
| | | | | | |
+--------+--------------+--------+--------+---------+---------+
+--------+---------+--------+--------+---------+---------+
| 18. | Finance | | | 2008 | 2007 |
| | Income | | | | |
| | and | | | | |
| | Costs | | | | |
+--------+---------+--------+--------+---------+---------+
| | | | | GBP000 | GBP000 |
+--------+---------+--------+--------+---------+---------+
| | | | | | |
+--------+---------+--------+--------+---------+---------+
| | Finance income - | 4 | 15 |
| | Interest income on | | |
| | short-term bank deposits | | |
+--------+---------------------------+---------+---------+
| | | | | _______ | _______ |
+--------+---------+--------+--------+---------+---------+
| | | | | | |
+--------+---------+--------+--------+---------+---------+
| | Finance costs - Interest | 990 | 117 |
| | expense on bank | | |
| | borrowings | | |
+--------+---------------------------+---------+---------+
| | | | | _______ | _______ |
+--------+---------+--------+--------+---------+---------+
| | | | | | |
+--------+---------+--------+--------+---------+---------+
+--------+-------------+--------+--------+---------+------------+
| 19. | Taxation | | | 2008 | 2007 |
+--------+-------------+--------+--------+---------+------------+
| | | | | GBP000 | GBP000 |
+--------+-------------+--------+--------+---------+------------+
| | Analysis | | | | (restated) |
| | of | | | | |
| | Charge | | | | |
| | in Year | | | | |
+--------+-------------+--------+--------+---------+------------+
| | | | | | |
+--------+-------------+--------+--------+---------+------------+
| | Current | | | | |
| | tax: | | | | |
+--------+-------------+--------+--------+---------+------------+
| | UK | | | - | - |
| | corporation | | | | |
| | tax on | | | | |
| | profits of | | | | |
| | the period | | | | |
+--------+-------------+--------+--------+---------+------------+
| | Deferred | | | 170 | 5,924 |
| | taxation | | | | |
| | charge | | | | |
+--------+-------------+--------+--------+---------+------------+
| | | | | _______ | _______ |
+--------+-------------+--------+--------+---------+------------+
| | | | | | |
+--------+-------------+--------+--------+---------+------------+
| | | | | 170 | 5,924 |
+--------+-------------+--------+--------+---------+------------+
| | | | | _______ | _______ |
+--------+-------------+--------+--------+---------+------------+
| | | | | | |
+--------+-------------+--------+--------+---------+------------+
19.Taxation (continued)
Factors affecting tax charge for period
The tax assessed for the period is the rate of corporation tax applicable in the
UK of 28% (2007 - 28%).The differences are explained below:
+--------+---------------+--------+--------+---------+------------+
| | | | | 2008 | 2007 |
+--------+---------------+--------+--------+---------+------------+
| | | | | GBP000 | GBP000 |
+--------+---------------+--------+--------+---------+------------+
| | | | | | (restated) |
+--------+---------------+--------+--------+---------+------------+
| | | | | | |
+--------+---------------+--------+--------+---------+------------+
| | (Loss)/Profit | | | (8,875) | 22,125 |
| | on ordinary | | | | |
| | activities | | | | |
| | before tax | | | | |
+--------+---------------+--------+--------+---------+------------+
| | | | | _______ | _______ |
+--------+---------------+--------+--------+---------+------------+
| | | | | | |
+--------+---------------+--------+--------+---------+------------+
| | (Loss)/Profit on | 2,485 | (6,195) |
| | ordinary activities | | |
| | multiplied by applicable | | |
| | rate | | |
| | of corporation tax | | |
| | applicable in the UK of | | |
| | 28% (2007 - 28%) | | |
+--------+---------------------------------+---------+------------+
| | | | |
+--------+---------------------------------+---------+------------+
| | Effects of | | |
+--------+---------------------------------+---------+------------+
| | Permanent differences | (1) | (8) |
+--------+---------------------------------+---------+------------+
| | Capital allowances for | - | 3 |
| | period in excess of | | |
| | depreciation | | |
+--------+---------------------------------+---------+------------+
| | Fair value surplus | 823 | 6,624 |
+--------+---------------------------------+---------+------------+
| | Loan interest | 321 | 276 |
| | capitalised | | |
+--------+---------------------------------+---------+------------+
| | Schedule A tax losses | (741) | (612) |
| | available to carry | | |
| | forward | | |
+--------+---------------------------------+---------+------------+
| | Schedule DI tax losses | (2,887) | (88) |
| | available to carry | | |
| | forward | | |
+--------+---------------------------------+---------+------------+
| | | _______ | _______ |
+--------+---------------------------------+---------+------------+
| | | | |
+--------+---------------------------------+---------+------------+
| | Total tax charge for | GBPNil | GBPNil |
| | period | | |
+--------+---------------------------------+---------+------------+
| | | _______ | _______ |
+--------+---------------------------------+---------+------------+
| | | | |
+--------+---------------------------------+---------+------------+
| | The weighted average | | |
| | applicable tax rate was | | |
| | 28%. | | |
+--------+---------------+--------+--------+---------+------------+
No deferred tax asset has been included in respect of schedule DI tax losses of
GBP10,625,000 (2007 GBPNil) as it is not probable that the Company will make
such taxable profits in the short term.
The fair value surplus arises from the change in accounting policy as
detailed in Note 24.
20.Loss per Share
Basic
Basic loss per share is calculated by dividing the loss attributable to equity
holders of the Company by the weighted average number of ordinary shares in
issue during the period.
+--------+---------------+----------------+---------------+
| | | 2008 | 2007 |
+--------+---------------+----------------+---------------+
| | | | (restated) |
+--------+---------------+----------------+---------------+
| | | | |
+--------+---------------+----------------+---------------+
| | (Loss)/Profit | (GBP9,045,000) | GBP16,201,000 |
| | attributable | | |
| | to equity | | |
| | holders of | | |
| | the Company | | |
+--------+---------------+----------------+---------------+
| | | __________ | __________ |
+--------+---------------+----------------+---------------+
| | | | |
+--------+---------------+----------------+---------------+
| | Weighted | 21,000,000 | 20,276,000 |
| | average | | |
| | number | | |
| | of | | |
| | ordinary | | |
| | shares | | |
| | in issue | | |
+--------+---------------+----------------+---------------+
| | | __________ | __________ |
+--------+---------------+----------------+---------------+
| | | | |
+--------+---------------+----------------+---------------+
| | Basic | (43.07)p | 79.90p |
| | (loss)/profit | | |
| | per share | | |
| | (pence per | | |
| | share) | | |
+--------+---------------+----------------+---------------+
| | | _______ | _______ |
+--------+---------------+----------------+---------------+
| | | | |
+--------+---------------+----------------+---------------+
Diluted
Diluted (loss)/profit per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares.
The Company has no dilutive potential ordinary shares and therefore the weighted
average number of ordinary shares in issue is the same as for the basic
earnings per share calculation.
21.Related Party Transactions
During the year, the Company received the following amounts from related
parties:
Licence income of GBP22,000 (2007 - GBPNil) from Kentish Barn Weddings Limited,
a company of which K E Wills is a director and shareholder. At the year end
GBP2,350 (2007 GBPNil) was outstanding.
During the year, the Company paid the following amounts to related parties:
Administration fees of GBP30,625 (2007 - GBP24,500), property maintenance costs
of GBP34,033 and reimbursement of fees for helicopter flights of GBP12,357 and
public relations expenses of GBP4,791 to Summit Engineering Limited, a company
of which K E Wills is a director and shareholder. An amount of GBP720 (2007 -
GBP3,829) was outstanding at the year end.
Property maintenance costs of GBP8,737 (2007 - GBP104,185) to Commercial Group
Contractors Limited, a company of which K E Wills is a director and shareholder.
No amounts were outstanding with this Company at the year end (2007 - GBP4,426).
Rent of GBP10,200 (2007 - Fees for helicopter flights GBP24,100) to Heli-Charter
Limited, a company of which K E Wills is a director and shareholder. No amounts
were outstanding with this Company at the period end (2007 - GBPnil).
The directors fees paid to C Seymour-Prosser were paid in accordance with an
agreement with Wallis Limited. The fees during the year were GBP126,923 (2007 -
GBP75,000). During the year, the benefits of this contract were transferred from
Wallis Limited to Apsley Holdings Limited. At the year end, GBP10,000 (2007 -
GBPNil) was outstanding.
Consultancy fees of GBP10,000 (2007 - GBP28,911) to Westmere Limited, a company
of which Chris Seymour-Prosser is a director and shareholder. No amounts were
outstanding with this Company at the year end (2007 - GBPnil).
In 2007 costs regarding promotional material of GBP21,326 were made to Pure
Brilliance Limited, a company of which J A Wing is a director and shareholder.
No amounts were paid to this Company during 2008 and no amounts were outstanding
at either period end.
In 2007 a loan of GBP50,000 was received from Omega Properties Limited, a
significant shareholder of the Company. The loan was unsecured and interest
free. The amount outstanding at 30 November 2007 was GBP14,365. No further loans
were received during 2008 and no amount was outstanding at the year end.
22.Events after the Balance Sheet Date
Since the year end a further facility of GBP1.7 million has been agreed with
Israel Discount Bank. The facility now stands at GBP30.2 million and the bank
have agreed to make this available until 31 May 2010. The loan is repayable on
demand, but as long as the Company does not breach any covenants, the facility
is expected to be available until 31 May 2010. This revised facility of GBP30.2
million carries interest at 3% over LIBOR and, assuming no breach in covenants,
has no capital repayments prior to 31 May 2010. As explained in the statement on
going concern on page 19, the Company is still in advanced negotiations to
increase the facility beyond GBP30.2 million.
23.Ultimate Controlling Party
The Directors believe there to be no ultimate controlling party.
24.Change in accounting policy with retrospective application - Prior year
adjustment following early adoption of amendments to IAS 40 contained in
"improvements to IFRSs" issued in May 2008
During 2008 the Company changed its accounting policy with respect to its
property under development and reclassified deferred expenditure as an addition
to investment property. The property under development was reclassified as
investment property held under the fair value model and the subsequent fair
value gain was credited directly to the Income Statement. Management judges that
this policy provides reliable and more relevant information because it results
in a more transparent treatment of these matters. This change in accounting
policy has been accounted for retrospectively, and the comparative figures for
2007 have been restated. The effect of the change on 2007 is tabulated below.
+--------+------------------+--------+--------------+
| | Effect | | GBP000 |
| | on | | |
| | 2007 | | |
+--------+------------------+--------+--------------+
| | Balance | | |
| | sheet | | |
+--------+------------------+--------+--------------+
| | | | |
+--------+------------------+--------+--------------+
| | Reclassification | | (3,698) |
| | of deferred | | |
| | expenditure | | |
+--------+------------------+--------+--------------+
| | Reclassification | | (50,900) |
| | of property | | |
| | under | | |
| | development | | |
+--------+------------------+--------+--------------+
| | Reclassification | | 50,900 |
| | of investment | | |
| | property | | |
+--------+------------------+--------+--------------+
| | | | |
| | | | _______ |
+--------+------------------+--------+--------------+
| | | | |
+--------+------------------+--------+--------------+
| | Decrease | | (3,698) |
| | in total | | |
| | assets | | |
| | at 30 | | |
| | November | | |
| | 2007 | | |
+--------+------------------+--------+--------------+
| | | | _______ |
+--------+------------------+--------+--------------+
| | | | |
+--------+------------------+--------+--------------+
| | Elimination | | (19,695) |
| | of | | |
| | revaluation | | |
| | reserve | | |
+--------+------------------+--------+--------------+
| | Decrease | | (1,035) |
| | in | | |
| | deferred | | |
| | tax | | |
+--------+------------------+--------+--------------+
| | Increase | | 17,032 |
| | in | | |
| | retained | | |
| | earnings | | |
+--------+------------------+--------+--------------+
| | | | |
| | | | _______ |
+--------+------------------+--------+--------------+
| | | | |
+--------+------------------+--------+--------------+
| | Decrease | | (3,698) |
| | in total | | |
| | equity | | |
| | and | | |
| | liabilities | | |
| | at 30 | | |
| | November | | |
| | 2007 | | |
+--------+------------------+--------+--------------+
| | | | _______ |
+--------+------------------+--------+--------------+
| | | | |
+--------+------------------+--------+--------------+
+--------+------------+--------+-------------+
| | | | |
+--------+------------+--------+-------------+
| | Effect | | GBP000 |
| | on | | |
| | 2007 | | |
+--------+------------+--------+-------------+
| | Income | | |
| | statement | | |
+--------+------------+--------+-------------+
| | | | |
+--------+------------+--------+-------------+
| | Fair | | 23,656 |
| | value | | |
| | gain | | |
| | on | | |
| | investment | | |
| | property | | |
+--------+------------+--------+-------------+
| | Decrease | | (6,624) |
| | in | | |
| | deferred | | |
| | tax | | |
+--------+------------+--------+-------------+
| | | | |
| | | | _______ |
+--------+------------+--------+-------------+
| | | | |
+--------+------------+--------+-------------+
| | Increase | | 17,032 |
| | in | | |
| | profit | | |
| | and in | | |
| | retained | | |
| | earnings | | |
| | at 30 | | |
| | November | | |
| | 2007 | | |
+--------+------------+--------+-------------+
| | | | _______ |
+--------+------------+--------+-------------+
| | | | |
+--------+------------+--------+-------------+
| | Increase | | |
| | in | | 84.00p |
| | earnings | | |
| | per | | |
| | share | | |
| | due to | | |
| | increased | | |
| | earnings | | |
+--------+------------+--------+-------------+
| | | | _______ |
+--------+------------+--------+-------------+
| | | | |
+--------+------------+--------+-------------+
25.Commitments
In 2007 there was a capital commitment of GBP248,000 in respect of the
investment property. There are no capital commitments at 30 November 2008.
Notes to the announcement:
1. Copies of the Preliminary Audited Results are available from the Company's
website as required by AIM Rule 26 which can be found at www.cgpplc.com.
2. Copies of the Audited Results are being posted to Shareholders on 29 May
2009.
3. The above financial information comprises non-statutory accounts within the
meaning of section 240 of the Companies Act 1985. The financial information for
the year ended 30 November 2008 has been extracted from published accounts for
the year ended 30November 2008 that will be delivered to the Registrar of
Companies and on which the report of the auditors was unqualified and did not
contain statements under s237 (2) or (3) of the Companies Act 1985.
4. The Company has also attached a Notice of Annual General Meeting (the "AGM")
to the Report and Accounts and this is expected to be sent to Shareholders on 29
May 2009. The AGM will take place on 25 June 2009 at 11.00 a.m. at the offices
of Chromex Mining, 36 Dover Street, London, W1S 4NH.
For further information, please contact:
+-------------------------------------+-------------------------------------+
| Commercial Group Properties PLC | +44 (0) 1843 822882 |
| Ken Wills | |
+-------------------------------------+-------------------------------------+
| | |
+-------------------------------------+-------------------------------------+
| Beaumont Cornish Limited | +44 (0) 20 7628 3396 |
| Roland Cornish | |
+-------------------------------------+-------------------------------------+
| | |
+-------------------------------------+-------------------------------------+
| Square1 Consulting Ltd | +44 (0) 20 7929 5599 |
| David Bick/Mark Longson | |
+-------------------------------------+-------------------------------------+
| | |
+-------------------------------------+-------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SELFWASUSEEI
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