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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Circle Property Plc | LSE:CRC | London | Ordinary Share | JE00BYP0CK63 | ORD NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 3.50 | 3.00 | 4.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMCRC
RNS Number : 6252Y
Circle Property PLC
07 December 2017
7 December 2017
Circle Property Plc
("Circle", "Company" or the "Group")
Interim Results for the six months ended 30 September
CONTINUED LEASING AND ASSET MANAGEMENT MOMENTUM DRIVES STRONG FINANCIAL PERFORMANCE
Circle Property Plc (AIM: CRC), the specialist regional UK property investment, development and management company today announces its results for the six months to 30 September 2017. The results show continued strong operational performance driven by asset management translating to growth in portfolio valuation, NAV and rental income and leading to a proposed further increase in dividend.
Financial Highlights
-- 11.3% increase in portfolio valuation to GBP103.5 million (31 March 2017: GBP93 million), driven primarily by the Company's ongoing asset management initiatives
-- 15.3% increase in NAV per share to GBP2.11 (31 March 2017: GBP1.83) contributing to 40% growth in NAV since IPO in February 2016
-- 26% increase in rental income to GBP2.9 million for the first six months to 30 September 2017 (30 September 2016: GBP2.3 million)
-- 57% increase in net operating profit to GBP1.8 million which excludes gains on investment properties (six months to 30 September 2016: GBP1.1 million) leading to a 3.6% increase in profit before tax to GBP8.6 million (six months to 30 September 2016: GBP8.3 million)
-- Loan to value ratio reduced to 47% (31 March 2017: 49%) -- 6.9% increase in earnings per share to 31 pence (30 September 2016: 29 pence)
-- 8.3% increase in interim dividend to 2.6 pence per share (30 September 2016: 2.4 pence) reflecting the Board's ongoing confidence in the Company's prospects and outlook. The dividend will be paid on 18 January 2018 to shareholders on the register on 15 December 2017, with an ex-dividend date of 14 December 2017.
-- WAULT of 11.29 years to expiry, up from 7.39 years
Operational Highlights
-- Building on the GBP648,300 of annualised rent which was signed over the second half of last year, three further significant lease contracts were secured during the period, adding GBP378,841 or 7.2% to the annualised rent roll and comprising:
o Signing a new 20 year lease without break to Las Iguanas, the popular Latin American restaurant chain owned by Casual Dining Group Limited, for GBP220,000 per annum at one of our two newly developed restaurant units in Somerset House, Temple Street, Birmingham.
o Securing Topps Tiles as a new tenant at the Baildon Bridge Retail Park in Shipley on a 10 year lease with a 5 year break option, at a rent of GBP52,585 per annum.
o Achieving full occupancy at the Group's newly refurbished offices at Powerhouse in Milton Keynes by letting all 6,641 sq ft of the remaining space to Stephen Eagell Ltd, one of the UK's leading Toyota dealerships, on a 10 year lease at a rent of GBP106,256 per annum, equating to a rent of GBP16 per square foot.
-- Further leasing progress has been made subsequent to the end of the first half year:
o The second of the two restaurant units located in Somerset House, Birmingham, is now under offer.
o Grant Thornton has removed its August 2018 break clause at 300 Pavilion Drive, Northampton Business Park, Northampton, which extends the lease by five years to 2023.
o At the One Castlepark offices in Bristol, a 10 year lease renewal has been agreed on 13,143 sq ft of space on two equal leases at a rent of GBP22 per sq ft, with a five year break option.
o In November, the Group completed a 1,350 sq ft letting of the 5(th) floor at 141 Moorgate for five years at a rent of GBP59,444 per annum.
o 5,500 sq ft in K2 at the Company's Kents Hill Park business park, Milton Keynes, is now under offer.
o At 36 Great Charles Street, Birmingham, following the rolling refurbishment of 25,000 sq ft of offices, one office suite is under offer at GBP18.50 per sq ft with another under negotiation.
o Following Willis Towers Watson exercising its break clause and vacating Unit B at Chapel Lane, Great Blakenham, Nr Ipswich, in July 2017, the Company let both Units A&B at the end of November to Anchor Safety LLP, the long standing tenant of Unit A. Anchor has entered into a new five year lease without break on 45,319 sq ft at a rent of GBP154,500 per annum.
o The remaining Unit 2 at Baildon Bridge Retail Park, Shipley, has been placed under offer at a similar rent to that achieved on Unit 3.
o Following a GBP3.5 million refurbishment of the six office floors at Somerset House, Birmingham, the project is now nearing completion. The offices are to be formally launched into the market early in 2018.
John Arnold, Chief Executive at Circle Property Plc, commented: "Although there is some degree of caution from tenants making leasing decisions against the backdrop of Brexit uncertainty, we continue to make good leasing progress across our portfolio. Since our IPO in February 2016, we have achieved a 40% increase in NAV and remain confident in our ability to deliver further growth from active asset management. We believe the level of demand for space in our assets is a direct reflection of the location and quality of our assets, as well as the standard of our refurbishments, which places us ahead of the competition. Furthermore, the great majority of our assets are highly reversionary so we have the flexibility to moderate rents or incentives and offer highly attractive terms to secure the tenant, whilst at the same time providing rental income growth for our shareholders.
"We continue to look for new acquisition opportunities, whether of portfolios or single assets. Our appointment of Smith & Williamson with Radnor Capital is expected to generate a greater level of interest in Circle, as we consider options for enlarging the Company's shareholder base in the New Year."
Hot Features
Premium
+44 (0)20 7930
Circle Property Plc 8503
John Arnold, CEO
Edward Olins, COO
+44 (0) 20 7131
Smith & Williamson 4000
Azhic Basirov
Katy Birkin
Radnor Capital
Iain Daly +44 (0) 20 3897
Joshua Cryer 1830
FTI Consulting +44 (0)20 3727 1000
Richard Sunderland
Giles Barrie
Eve Kirmatzis
Chief Executive's statement
I am pleased to present the Group's results for the first six months of this year and to report that Circle has once again achieved significant asset valuation growth and that this has been driven primarily by our ongoing letting and refurbishments programme, demonstrating the importance of active management and stock selection. Our belief in the regional office markets remains steadfast, particularly as the supply continues to decline. This trend will be maintained for so long as the ongoing conversion of many less attractive office buildings to residential continues or if rents rise sufficiently to justify the ever increasing cost, as well as the associated risk, of constructing new product. At present, there is relatively little speculative new build office development being undertaken in the provinces and with build costs rising at, or above the rate at which office rents are rising, so our market remains favourable.
Since admission to AIM in February 2016 we have been pleased to achieve over 40% growth in NAV, which does not include the full lettings potential of our entire stock, which on completion is expected to result in further significant uplift in NAV. However, in common with many other property companies, we are mindful of the discount in the share price and are focussing on generating more liquidity in the Company's shares, as evidenced by our recent appointments of Smith & Williamson and Radnor Capital.
Asset management
Our development pipeline is now all but complete with less than GBP0.5m of further expenditure now required on our refurbishment at Somerset House, Temple Street Birmingham.
New lettings in the investment portfolio have again improved the income profile, and should all the negotiations currently underway convert to lettings, the Company will be able to report that it has over GBP6 million of annualised rental income at the year-end.
Power House, our 21,400 sq ft office building in Milton Keynes, is now fully let following Stephen Eagell Ltd letting on a 10 year lease at a rent of GBP106,256 per annum.
Following the completion of the letting of Unit 3 at Baildon Bridge in Shipley to Topps Tiles, Unit 2 is now under offer and, at completion, this 37,200 sq ft retail park will be fully let.
In October 2017, we were pleased to secure a letting on both industrial units (45,000 sq ft) at Great Blakenham, Ipswich, to Anchor Safety.
As previously reported our portfolio predominantly comprises high quality and well located regional offices with some "non-core" properties in other sectors which we have marked for sale on an opportunistic basis.
Developments
Our developments at Milton Keynes and Great Charles Street, Birmingham, are almost complete with marketing well underway, whilst completion of Somerset House, Birmingham, is imminent with marketing due to commence early in January 2018.
Kent's Hill Park
In October we placed the first letting, of 5,500 sq ft, at K2 in solicitors' hands. When we make further progress in the lettings we intend to take back K3 from Compass to undertake a further refurbishment. In the meantime, we are undertaking further landscaping improvements at the property to improve its letting prospects.
Somerset House
Completion of the office refurbishment is expected by the end of the calendar year and we are preparing to launch the asset to agents and begin a wider marketing campaign in January 2018.
Great Charles Street, Birmingham
36 Great Charles Street, Birmingham, is being marketed and we already have one letting in solicitors' hands at GBP18.50 per sq ft with active negotiations underway with an additional tenant for another half floor.
Outlook
Although we have seen some slowdown in the lettings market overall, we are pleased with the progress made in leasing up space across our portfolio and believe this demand is a direct reflection of the location and quality of our assets and particularly of the standard of our refurbishments and asset management initiatives, compared to the stock that we are competing against. The investment market remains strong with little or no signs of a softening of yields. Our team has a deep knowledge of the regional markets and a proven track record of acquiring and creating value from assets. As and when we identify any suitable acquisition opportunities that we cannot fund from existing resources or from recycling stock and sales of non-core assets, we will explore funding opportunities to support our acquisitive strategy.
Condensed consolidated statement of comprehensive
income
for the 6 months ended 30 September
2017
Note 6 months 6 months 12 months
to to to
30 September 30 September 31 March
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------- ----- -------------- -------------- ------------
Rental income 4 2,943,673 2,340,377 5,265,507
Other income 4 92,736 60,262 138,122
------------------------------------- ----- -------------- -------------- ------------
3,036,409 2,400,639 5,403,629
Property expenses 5 (425,210) (393,726) (1,037,375)
Net rental income 2,611,199 2,006,913 4,366,254
Administrative expenses 6 (801,185) (855,991) (2,114,965)
Operating profit before gains
on investment properties 1,810,014 1,150,922 2,251,289
Gains on disposal of investment
properties - - 278,771
Gains on revaluation of investment
properties 11 7,307,151 6,597,429 7,360,657
Negative goodwill on acquisition
of CPUT - - 195,554
Listing costs - - (107,493)
Operating profit 9,117,165 7,748,351 9,978,778
Finance income 7 1,293 46,542 48,511
Finance costs 8 (553,225) (752,895) (1,293,384)
Effective interest rate adjustment
on borrowings - 1,232,304 1,232,304
Net finance costs (551,932) 525,951 (12,569)
Profit for the period before
taxation 8,565,233 8,274,302 9,966,209
Taxation 9 99,030 (61,897) (21,912)
Profit after taxation 8,664,263 8,212,405 9,944,297
------------------------------------- ----- -------------- -------------- ------------
Earnings per share 10 0.31 0.29 0.35
------------------------------------- ----- -------------- -------------- ------------
There is no comprehensive income other than that included in the
profit for the period. All of the profit for the period is attributable
to the owners of the Company.
All items in the above statement derive from
continuing operations.
The accompanying notes form an integral part of these condensed
consolidated interim financial statements.
Condensed consolidated statement of financial
position
30 September 2017
Note 30 September 30 September 31 March
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
-------------------------------- ----- ------------- ------------- -----------
Non-current assets
Investment properties 11 96,287,600 83,734,663 86,054,336
Property plant and equipment 26,080 32,894 29,158
Trade and other receivables 12 6,768,045 6,312,535 6,518,077
Deferred tax 1,314,814 908,553 1,141,887
Financial instruments at fair
value through profit and loss 86 - 710
-------------------------------- ----- ------------- ------------- -----------
104,396,625 90,988,645 93,744,168
Current assets
Trade and other receivables 12 1,352,137 1,757,277 1,195,372
Deferred tax 148,626 102,736 128,240
Cash and cash equivalents 5,161,605 2,991,506 4,893,807
-------------------------------- ----- ------------- ------------- -----------
6,662,368 4,851,519 6,217,419
Total assets 111,058,993 95,840,164 99,961,587
-------------------------------- ----- ------------- ------------- -----------
Equity
Stated capital 42,542,179 42,542,179 42,542,179
Treasury share reserve (380,001) (380,001) (380,001)
Retained earnings 17,588,004 8,606,688 9,659,457
-------------------------------- ----- ------------- ------------- -----------
Total equity 59,750,182 50,768,866 51,821,635
Non-current liabilities
Trade and other receivables 12 1,352,137 1,757,277 1,195,372
Deferred tax 148,626 102,736 128,240
Cash and cash equivalents 5,161,605 2,991,506 4,893,807
-------------------------------- ----- ------------- ------------- -----------
6,662,368 4,851,519 6,217,419
Total assets 111,058,993 95,840,164 99,961,587
-------------------------------- ----- ------------- ------------- -----------
Equity
Stated capital 42,542,179 42,542,179 42,542,179
Treasury share reserve (380,001) (380,001) (380,001)
Retained earnings 17,588,004 8,606,688 9,659,457
-------------------------------- ----- ------------- ------------- -----------
Total equity 59,750,182 50,768,866 51,821,635
Non-current liabilities
Borrowings 13 48,800,835 44,085,159 45,590,423
-------------------------------- ----- ------------- ------------- -----------
48,800,835 44,085,159 45,590,423
Current liabilities
Trade and other payables 14 2,507,976 986,139 2,549,529
-------------------------------- ----- ------------- ------------- -----------
2,507,976 986,139 2,549,529
Total liabilities 51,308,811 45,071,298 48,139,952
-------------------------------- ----- ------------- ------------- -----------
Total liabilities and equity 111,058,993 95,840,164 99,961,587
-------------------------------- ----- ------------- ------------- -----------
The condensed consolidated interim financial statements were approved
by the Board of Directors on 6 December 2017.
The accompanying notes form an integral part of these condensed
consolidated interim financial statements.
Condensed consolidated statement
of cash flows
for the 6 months ended
30 September 2017
6 months 6 months 12 months
to 30 to 30 to 31
September September March
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
---------------------------------- ---- ------------ ------------- -------------
Cash flows from operating
activities
Profit for the period before
taxation 8,565,233 8,274,302 9,966,209
Adjustments for:
Finance income (1,293) (46,542) (48,511)
Finance expense 553,225 752,895 1,293,384
Depreciation 3,077 3,678 7,414
Gains on revaluation of
investment properties (7,307,151) (6,597,429) (7,360,657)
Gains on disposal of investment
properties - - (278,771)
Amortisation of loan arrangement
fees 29,406 11,049 40,136
Fair value movement on
interest rate swaps 625 (94,872) (95,565)
Effective interest rate
adjustment on borrowings - (1,232,304) (1,232,304)
Negative goodwill on acquisition
of CPUT - - (195,554)
Increase in trade and other
receivables (406,733) (3,700,877) (3,409,020)
Decrease in trade and other
payables (113,253) (1,327,035) (103,177)
Cash generated from operating
activities 1,323,136 (3,957,135) (1,416,416)
Interest and other finance
costs paid (553,312) (821,386) (1,416,942)
Interest received 1,293 4,055 70,513
Net cash from operating
activities 771,117 (4,774,466) (2,762,845)
----------------------------------- ---- ------------ ------------- -------------
Cash flows from investing
activities
Cost of additions to investment
properties (2,948,608) (1,356,410) (3,520,046)
Proceeds from disposal
of investment properties - - 1,278,770
Cost of additions of property
plant and equipment - (14,200) (14,200)
Net cash from investing
activities (2,948,608) (1,370,610) (2,255,476)
----------------------------------- ---- ------------ ------------- -------------
Cash flows from financing
activities
Repayment of borrowings - (38,966,135) (39,775,343)
Drawdown of borrowings 3,181,005 44,244,177 46,529,563
Dividends paid (735,716) (657,613) (1,358,245)
Net cash used in financing
activities 2,445,289 4,620,429 5,395,975
----------------------------------- ---- ------------ ------------- -------------
Net increase / (decrease)
in cash and cash equivalents 267,798 (1,524,647) 377,654
Cash and cash equivalents
at the beginning of the
period 4,893,807 4,516,153 4,516,153
----------------------------------- ---- ------------ ------------- -------------
Cash and cash equivalents
at the end of the period 5,161,605 2,991,506 4,893,807
----------------------------------- ---- ------------ ------------- -------------
The accompanying notes form an integral part of these condensed
consolidated interim financial statements.
Condensed consolidated statement of changes
in equity
for the 6 months ended 30
September 2017
Share Treasury Retained Total
capital shares earnings
reserve
GBP GBP GBP GBP
--------------------------- ----------- ---------- ----------- -----------
As at 1 April 2016 42,542,179 (380,001) 1,073,405 43,235,583
Profit for the period - - 8,212,405 8,212,405
Dividends - - (679,122) (679,122)
As at 30 September 2016 42,542,179 (380,001) 8,606,688 50,768,866
Profit for the period - - 1,731,892 1,731,892
Dividends - - (679,123) (679,123)
As at 31 March 2017 42,542,179 (380,001) 9,659,457 51,821,635
Profit for the period - - 8,664,263 8,664,263
Dividends - - (735,716) (735,716)
As at 30 September 2017 42,542,179 (380,001) 17,588,004 59,750,182
---------------------------- ----------- ---------- ----------- -----------
Notes to the condensed consolidated interim
financial statements
for the 6 months ended 30 September
2017
1 General information
These condensed consolidated interim financial statements are for
Circle Property Plc ("the Company") and its subsidiary undertakings
(together referred to as the "Group").
The Company's shares are admitted to trading on AIM, a market operated
by the London Stock Exchange plc. The Company is domiciled and
registered in Jersey, Channel Islands. The address of its registered
office is 3rd Floor, Standard Bank House, 47-49 La Motte Street,
St Helier, Jersey, JE2 4SZ.
The nature of the Company's operations and its principal activities
are that of property investment in the UK.
2 Principal accounting policies
Basis of accounting
The condensed consolidated interim financial statements have been
prepared in accordance with the IAS 34 "Interim Financial Reporting",
and should be read in conjunction with the Group's last consolidated
financial statements as at and for the year ended 31 March 2017.
They do not include all of the information required for a complete
set of IFRS financial statements. However, selected explanatory
notes are included to explain events and transactions that are
significant to an understanding of the changes in the Group's financial
position and performance since the last financial statements.
Going concern
The Group's business activities, together with the factors likely
to affect its future development, performance and position are
set out in the Chief Executive's statement. The financial position
of the Group, its cash flows, liquidity position and borrowing
facilities are described in these financial statements.
The Group has adequate financial resources together with long term
rental contracts with a wide range of tenants. As a consequence,
the Directors believe that the Group is well placed to manage its
business risk successfully.
The Directors have a reasonable expectation that the Company and
the Group have adequate resources to continue in operational existence
for the foreseeable future. Accordingly, they have adopted the
going concern basis in preparing the interim financial statements.
Estimates and judgements
In preparing these condensed consolidated interim financial statements,
management has made judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expenses. Actual
results may differ from these estimates.
The significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty
were the same as those that applied to the consolidated financial
statements as at and for the year ended 31 March 2017.
3 Operating segments
During the period the Group operated in one geographical segment,
which is the United Kingdom, and one reporting segment, which is
investment in commercial property. Therefore no segmental reporting
is required.
4 Revenue 6 months 6 months 12 months
to to 30 to 31
30 September September March
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------------------ -------------- ------------- -------------
Rental income 2,676,937 2,099,171 4,743,974
SIC 15 adjustment (spreading of lease
incentives) 266,736 241,206 521,533
------------------------------------------------ -------------- ------------- -------------
2,943,673 2,340,377 5,265,507
Insurance recovery 48,053 60,036 118,647
Other income 44,683 226 19,475
------------------------------------------------ -------------- ------------- -------------
92,736 60,262 138,122
3,036,409 2,400,639 5,403,629
------------------------------------------------ -------------- ------------- -------------
5 Property expenses 6 months 6 months 12 months
to to 30 to 31
30 September September March
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------------------ -------------- ------------- -------------
Property expenses 140,501 81,627 260,705
Property service charges 144,397 167,185 337,635
Property repairs and maintenance costs 13,376 26,059 25,960
Property insurance 62,496 70,615 144,276
Property rates 39,440 48,240 68,799
Lease variation costs 25,000 - 200,000
425,210 393,726 1,037,375
------------------------------------------------ -------------- ------------- -------------
6 Administrative expenses 6 months 6 months 12 months
to to 30 to 31
30 September September March
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------------------ -------------- ------------- -------------
Staff costs 397,675 318,218 1,060,222
Administration fees 124,248 126,000 251,829
Legal and professional fees 210,474 290,853 564,685
Audit fees 1,300 30,639 65,724
Accountancy fees 3,221 4,769 9,918
Rent, rates and other office costs 31,533 26,531 57,219
Other overheads 29,657 54,862 97,954
Depreciation of tangible fixed assets 3,077 4,119 7,414
801,185 855,991 2,114,965
------------------------------------------------ -------------- ------------- -------------
7 Finance income 6 months 6 months 12 months
to to 30 to 31
30 September September March
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------------------ -------------- ------------- -------------
Bank interest 1,293 4,055 5,220
Loan interest - 42,487 43,291
1,293 46,542 48,511
------------------------------------------------ -------------- ------------- -------------
8 Finance costs 6 months 6 months 12 months
to to 30 to 31
30 September September March
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------------------ -------------- ------------- -------------
Swap interest - 70,880 70,880
Loan interest 512,518 566,679 1,060,234
Loan commitment fees 10,676 24,159 42,699
Loan arrangement fees 29,406 186,049 215,136
Fair value movement on interest rate
swaps 625 (94,872) (95,565)
553,225 752,895 1,293,384
------------------------------------------------ -------------- ------------- -------------
9 Taxation 6 months 6 months 12 months
to to 30 to 31
30 September September March
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------------------ -------------- ------------- -------------
Current tax 171,315 53,733 77,031
Over provision of current tax in prior
year (77,031) - -
Deferred tax charge / (credit) 57,942 8,164 (55,119)
Under provision of deferred tax credit
in prior year (251,256) - -
(99,030) 61,897 21,912
------------------------------------------------ -------------- ------------- -------------
10 Earnings per share
Basic earnings per share has been calculated on profit after tax
attributable to ordinary shareholders for the period (as shown
on the condensed consolidated statement of comprehensive income)
and the weighted average number of ordinary shares in issue during
the period.
6 months 6 months 12 months
to to 30 to 31
30 September September March
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------------------ -------------- ------------- -------------
Profit for the period 8,664,263 8,212,405 9,944,297
------------------------------------------------ -------------- ------------- -------------
Weighted average number of shares 28,296,762 28,296,762 28,296,792
------------------------------------------------ -------------- ------------- -------------
Earnings per ordinary share: 0.31 0.29 0.35
------------------------------------------------ -------------- ------------- -------------
In the opinion of the Board, treasury shares held to satisfy share
awards to management currently do not have any material value and
hence do not have any dilutive effect. Therefore no diluted earnings
per share has been presented.
11 Investment properties 30 September 30 September 31 March
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------------------ -------------- ------------- -------------
Balance brought forward 93,025,000 77,735,000 77,735,000
Cost of additions to investment properties 2,926,114 1,356,410 3,912,856
Disposal of investment properties - - (1,000,000)
Gains on revaluation of investment
properties 7,307,151 6,597,429 7,360,657
Lease incentive amortisation 266,735 4,736,161 5,016,487
Fair value of investment properties
per valuation report 103,525,000 90,425,000 93,025,000
------------------------------------------------ -------------- ------------- -------------
Unamortised lease incentives (7,237,400) (6,690,337) (6,970,664)
Closing fair value 96,287,600 83,734,663 86,054,336
------------------------------------------------ -------------- ------------- -------------
The fair value of the Group's investment properties per the Valuation
Report amounted to GBP103,525,000. The difference between the fair
value of the investment properties per the Valuation Report and
the fair value per the balance sheet of GBP7,237,400 relates to
unamortised lease incentives which are recorded in the financial
statements within non-current and current assets.
The Group has pledged all of its investment properties to secure
banking facilities granted to the Group as detailed in note 13.
The fair value of the Group's investment properties at 30 September
2017 has been arrived at on the basis of valuation carried out
by Savills (UK) Limited. The valuation was carried out in accordance
with the Practice Statements contained in the Appraisal and Valuation
Standards as published by the RICS. In forming their opinion of
the fair value, the independent valuer's had regard to the current
best use of the property, its investment attributes and recent
comparable transactions. The valuation was carried out using the
"All Risks Yield" method taking into consideration both sales and
rental evidence and formulating the opinion of market value taking
into account the properties' locations, specifications and specific
characteristics.
12 Trade and other receivables 30 September 30 September 31 March
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------------------ -------------- ------------- -------------
Non-current
Lease incentives 6,768,045 6,312,535 6,518,077
------------------------------------------------ -------------- ------------- -------------
Current
Circle Property Trading (Maidstone)
Limited - 148,398 -
Loan interest due from Circle Property
Trading (Maidstone) Limited - 64,489 -
Lease incentives 469,355 377,802 452,587
Amounts due from property agents 92,421 8,951 68,767
Amounts due from tenants 173,707 241,063 153,123
VAT 463,076 783,394 352,717
Other receivables 153,578 133,180 168,178
1,352,137 1,757,277 1,195,372
------------------------------------------------ -------------- ------------- -------------
13 Borrowings 30 September 30 September 31 March
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------------------ -------------- ------------- -------------
Brought forward 45,720,355 38,966,135 38,966,135
Loan repayments - (39,775,343) (39,775,343)
Loan drawdowns 3,181,005 45,053,385 46,529,563
Facility drawn down 48,901,360 44,244,177 45,720,355
------------------------------------------------ -------------- ------------- -------------
Unamortised lending costs (100,525) (159,018) (129,932)
Total borrowings 48,800,835 44,085,159 45,590,423
------------------------------------------------ -------------- ------------- -------------
The Group is party to a GBP50 million revolving facility with National
Westminster Bank plc. The facility has a three year term with two
options to extend for a further year, with a drawdown loan to value
of up to 55% of the gross portfolio value and an interest rate
of 1.85% over LIBOR.
Interest is charged at a rate of 0.74% on the undrawn
loan facility of GBP1,098,640 (2016: GBP5,755,823).
14 Trade and other payables 30 September 30 September 31 March
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------------------ -------------- ------------- -------------
Trade payables 638,437 332,247 384,092
Property improvement costs 498,364 - 471,375
Wages and salaries 54,459 - 411,948
Deferred income 782,446 401,836 760,364
Rental deposit accounts 129,622 135,620 129,591
Loan interest payable 215,333 23,194 215,243
Valuation fee 18,000 18,000 36,000
Current taxation 171,315 53,733 77,031
Dividends payable - 21,509 -
Listing costs - - 63,885
2,507,976 986,139 2,549,529
------------------------------------------------ -------------- ------------- -------------
15 Post balance sheet events
There have been no post balance sheet events that would require
disclosure or adjustment to these financial statements.
Registered Office, Officers and Registrars
Directors
Non-Executive
Ian Henderson Chairman
John Arnold Chief Executive
Chief Operating
Edward Olins Officer
Non-Executive
The Duke of Roxburghe Director
Non-Executive
James Hambro Director
Non-Executive
Michael Farrow Director
Non-Executive Resigned 21 September
Richard Hebert Director 2017
Non-Executive Appointed 21 September
Timothy Scott Warren Director 2017
Company Secretary
Consortia Secretaries
Limited
Registered Office
3rd Floor
Standard Bank House
47-49 La Motte Street
St Helier
Jersey
JE2 4SZ
Registrars
Computershare Investor Services (Jersey)
Limited
Queensway House
Hillgrove Street
St Helier
Jersey
JE1 1ES
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFIAFELRIID
(END) Dow Jones Newswires
December 07, 2017 02:00 ET (07:00 GMT)
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