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DJAN Daejan Holdings Plc

8,050.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Daejan Holdings Plc LSE:DJAN London Ordinary Share GB0002502036 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 8,050.00 8,040.00 8,050.00 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Daejan Holdings PLC Half-year Report (8830P)

23/11/2016 7:00am

UK Regulatory


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TIDMDJAN

RNS Number : 8830P

Daejan Holdings PLC

23 November 2016

23 November 2016

DAEJAN HOLDINGS PLC

INTERIM RESULTS ANNOUNCEMENT for the half year ended 30 September 2016

The Board is pleased to present the Interim Statement for the half year ended 30 September 2016.

 
 
                                     30 Sep     30 Sep     31 Mar 
                                       2016       2015       2016 
                                     GBP000     GBP000     GBP000 
 
 Profit before tax                   65,112     58,863    173,242 
 
 Profit after tax                    61,477     45,820    143,005 
 
 Basic and diluted earnings per     GBP3.76    GBP2.81    GBP8.77 
  share 
 
 Equity shareholders' funds per    GBP95.81   GBP85.17   GBP90.82 
  share 
 

-- The profit before tax for the period was GBP65.1 million (2015: GBP58.9 million) after accounting for the net valuation gain on investment properties of GBP38.6 million (2015: GBP35.5 million).

-- The property portfolio has been valued by the Directors based on the recommendations of the Group's external advisers and continues to show modest growth in both the UK and USA.

-- We continue to see some increase in rental income in the UK and USA. The significant reduction in the sterling/dollar exchange rate in this period has resulted in USA reported rental income increasing by GBP2.4 million and has, on the balance sheet, produced an overall net translation gain of GBP20.0 million (2015: GBP3.7 million loss).

-- The tax charge in the period has benefited from a one-off adjustment to the cumulative deferred tax balance following a reduction in the rate of corporation tax.

-- My last annual report was written shortly after the decision had been taken for the UK to leave the European Union. Despite some positive short term indicators since that time, it is still far too soon to be able to form a balanced judgement as to what lies ahead for the UK economy as a whole and the property sector in particular. In the USA we now have the uncertainty of a new and largely unknown President whose impact on the USA economy and the property sector cannot be foreseen at this stage. Against this background we will continue to pursue our long term, low risk approach to creating growth in net asset value.

-- The principal risk factors affecting the remainder of the financial year continue to be exposure to movements in the valuation of the Group's investment properties and financial instruments, movements in the sterling/dollar currency rate of exchange and the incidence of voids and bad debts.

-- An interim dividend of 35p per share will be paid on 10 March 2017 to shareholders on the register on 10 February 2017.

B S E Freshwater

Chairman

23 November 2016

For further information please contact:

 
 Mark Jenner           Nick Oborne 
 Company Secretary     Weber Shandwick Financial 
 Daejan Holdings PLC 
 Tel: 020 7836 1555    Tel: 020 7067 0700 
 
 
 Consolidated Income Statement for the six months ended 30 
  September 2016 
 
                                                       Unaudited             Unaudited         Audited 
                                                      Six months            Six months            Year 
                                                           ended                 ended           ended 
                                                                                                31 Mar 
                                                     30 Sep 2016           30 Sep 2015            2016 
                                                    ------------          ------------  -------------- 
 
                                                          GBP000                GBP000          GBP000 
 
 Total rental & related income 
  from investment property                                70,214                66,220         138,197 
 
 Property operating expenses                            (38,021)              (35,282)        (70,008) 
 
 Net rental & related 
  income from investment 
  property                                                32,193                30,938          68,189 
 
 Profit on disposal of investment 
  property                                                 7,265                 3,879          11,725 
 
 Net valuation gains on investment 
  property                                                38,611                35,513         117,947 
 
 Administrative expenses                                 (5,896)               (6,185)        (13,041) 
 
 Net operating profit before net 
  financing costs                                         72,173                64,145         184,820 
 
 Fair value (losses)/gains on 
  derivative financial instruments                         (630)                   496             788 
 Fair value gains/(losses) on 
  current investments                                          9                  (10)            (10) 
 
   Other financial income                                    171                   151             336 
 
 Financial expenses                                      (6,611)               (5,919)        (12,692) 
 
 Net financing expense                                   (7,061)               (5,282)        (11,578) 
                                                    ------------          ------------  -------------- 
 
 
 Profit before taxation                                   65,112                58,863         173,242 
 
 Income tax                                              (3,635)              (13,043)        (30,237) 
 
 Profit for the period                                    61,477                45,820         143,005 
                                                    ------------          ------------  -------------- 
 Attributable 
 to: 
 Equity holders of the 
  parent                                                  61,284                45,727         142,900 
 Non-controlling interest                                    193                    93             105 
 
 Profit for the period                                    61,477                45,820         143,005 
                                                    ------------          ------------  -------------- 
 
 
 Basic and diluted earnings per 
  share                                                  GBP3.76               GBP2.81         GBP8.77 
                                                    ------------          ------------  -------------- 
 
 
 Consolidated Statement of Comprehensive Income for the six months 
  ended 30 September 2016 
 
                                                       Unaudited             Unaudited         Audited 
                                                      Six Months            Six Months            Year 
                                                           ended                 ended           ended 
                                                          30 Sep 
                                                            2016           30 Sep 2015     31 Mar 2016 
                                                ----------------      ----------------  -------------- 
 
                                                          GBP000                GBP000          GBP000 
 
 Profit for the period                                    61,477                45,820         143,005 
 
   Foreign exchange translation differences               20,021               (3,651)           5,649 
 
 Total comprehensive income for the 
  period                                                  81,498                42,169         148,654 
                                                ----------------      ----------------  -------------- 
 
 
 Attributable to: 
 Equity holders of the parent                             81,297                42,077         148,547 
 Non-controlling interest                                    201                    92             107 
 
 Total comprehensive income for the 
  period                                                  81,498                42,169         148,654 
                                                ----------------      ----------------  -------------- 
 
 
 

All other comprehensive income may be reclassified as profit and loss in the future.

 
 Consolidated Statement of Changes in Equity for the six months ended 
  30 September 2016 
                                                                                      Equity          Non- 
                                   Share     Share   Translation    Retained   shareholders'   controlling       Total 
                                 capital   premium       reserve    earnings           funds      interest      equity 
                                --------  --------  ------------  ----------  --------------  ------------  ---------- 
 
                                  GBP000    GBP000        GBP000      GBP000          GBP000        GBP000      GBP000 
 
   Balance at 1 April 
   2015                            4,074       555        26,404   1,314,785       1,345,818            56   1,345,874 
 
 Profit for the period                 -         -             -     142,900         142,900           105     143,005 
 
 Foreign exchange 
  translation differences              -         -         5,647           -           5,647             2       5,649 
 
   Payments to non-controlling 
   interest                            -         -             -           -               -          (94)        (94) 
 
 Dividends to equity 
  shareholders                         -         -             -    (14,340)        (14,340)             -    (14,340) 
 
 
 Balance at 1 April 
  2016                             4,074       555        32,051   1,443,345       1,480,025            69   1,480,094 
 
 Profit for the period                 -         -             -      61,284          61,284           193      61,477 
 
 Foreign exchange 
  translation differences              -         -        20,013           -          20,013             8      20,021 
 
   Payments to non-controlling 
   interest                            -         -             -           -               -         (186)       (186) 
 
 Dividends to equity 
  shareholders                         -         -             -           -               -             -           - 
 
 Balance at 30 September 
  2016                             4,074       555        52,064   1,504,629       1,561,322            84   1,561,406 
                                --------  --------  ------------  ----------  --------------  ------------  ---------- 
 
 
 
 
  Consolidated Balance Sheet as at 30 September 
   2016 
 
                                                   Unaudited                  Unaudited         Audited 
                                                      30 Sep                                     31 Mar 
                                                        2016                30 Sep 2015            2016 
                                                  ----------  -------------------------      ---------- 
 
                                                      GBP000                     GBP000          GBP000 
  Assets 
  Investment property                              2,117,093                  1,887,248       2,009,361 
  Deferred tax assets                                    539                        692             571 
 
  Total non-current assets                         2,117,632                  1,887,940       2,009,932 
                                                  ----------  -------------------------      ---------- 
  Trade and other receivables                         70,700                     58,192          63,119 
  Current investments                                    145                        165             159 
  Cash and cash equivalents                           88,423                     68,454          84,863 
 
  Total current assets                               159,268                    126,811         148,141 
                                                  ----------  -------------------------      ---------- 
 
  Total assets                                     2,276,900                  2,014,751       2,158,073 
                                                  ----------  -------------------------      ---------- 
  Equity 
  Share capital                                        4,074                      4,074           4,074 
  Share premium                                          555                        555             555 
  Translation reserve                                 52,064                     22,754          32,051 
  Retained earnings                                1,504,629                  1,360,512       1,443,345 
 
  Total equity attributable 
   to equity 
  holders of the parent                            1,561,322                  1,387,895       1,480,025 
  Non-controlling interest                                84                         61              69 
 
  Total equity                                     1,561,406                  1,387,956       1,480,094 
                                                  ----------  -------------------------      ---------- 
  Liabilities 
  Loans and borrowings                               330,216                    282,161         306,412 
  Deferred tax liabilities                           267,578                    239,135         255,296 
 
  Total non-current liabilities                      597,794                    521,296         561,708 
                                                  ----------  -------------------------      ---------- 
 
  Loans and borrowings                                17,376                     18,449          15,516 
  Trade and other payables                            53,644                     45,601          55,987 
  Current taxation                                    46,680                     41,449          44,768 
 
  Total current liabilities                          117,700                    105,499         116,271 
                                                  ----------  -------------------------      ---------- 
 
  Total liabilities                                  715,494                    626,795         677,979 
                                                  ----------  -------------------------      ---------- 
 
  Total equity and liabilities                     2,276,900                  2,014,751       2,158,073 
                                                  ----------  -------------------------      ---------- 
 
  Equity shareholders' funds 
   per share                                        GBP95.81                   GBP85.17        GBP90.82 
                                                  ----------  -------------------------      ---------- 
 
 
 Consolidated Statement of Cash Flows for the six months ended 
  30 September 2016 
 
                                                   Unaudited                  Unaudited                    Audited 
                                                         Six 
                                                      months                 Six months                       Year 
                                                       ended                      ended                      ended 
                                                      30 Sep                     30 Sep                     31 Mar 
                                                        2016                       2015                       2016 
                                   -------------  ----------  ---------  --------------  --------------  --------- 
 
                                          GBP000      GBP000     GBP000          GBP000          GBP000     GBP000 
 Cash flows from operating 
  activities 
 Net cash generated from 
  operations                              13,486                 21,897                          61,529 
 Interest received                           172                    151                             336 
 Interest 
 paid                                    (6,603)                (5,817)                        (12,598) 
 Payments to non-controlling 
  interest                                 (186)                   (87)                            (94) 
 Tax (paid)/refund                       (2,291)                  1,684                           (772) 
 
 Net cash from operating 
  activities                                           4,578                     17,828                     48,401 
 
 Cash flows from investing 
  activities 
 Acquisition and development 
  of investment property                (16,212)                (6,891)                        (26,939) 
 Proceeds from sale of investment 
  property                                 7,848                  5,465                          12,807 
 
 Net cash absorbed by investing 
  activities                                         (8,364)                    (1,426)                   (14,132) 
 
 Cash flows from 
  financing activities 
 Repayment of bank loans                   (832)                  (651)                         (1,302) 
 New bank loans and overdrafts                 -                      -                               - 
 Repayment of mortgages                  (3,685)                (4,669)                        (21,341) 
 New mortgages                             7,546                  5,694                          34,379 
 Dividends paid                                -                      -                        (14,340) 
 
 Net cash generated 
  from/(absorbed 
  by) financing activities                             3,029                        374                    (2,604) 
                                                  ----------             --------------                  --------- 
 
 Net (decrease)/increase 
  in cash and cash equivalents                         (757)                     16,776                     31,665 
 
 Cash and cash equivalents brought 
  forward                                             84,863                     52,293                     52,293 
 
 Effect of exchange rate fluctuations 
  on cash held                                         4,317                      (615)                        905 
 
 Cash and cash equivalents                            88,423                     68,454                     84,863 
                                                  ----------             --------------                  --------- 
 
 

Notes to the Consolidated Interim Financial Statements for the six months ended 30 September 2016

   1.   Basis of preparation 

This interim financial information has been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting, applying the accounting policies and presentation that were applied in the preparation of the Company's published consolidated financial statements for the year ended 31 March 2016. As required by the Listing Rules of the Financial Services Authority, the Directors have considered the result of the endorsement by the EU of new or changed International Financial Reporting Standards that are applicable or available for early adoption in the preparation of the Company's next consolidated financial statements for the year ending 31 March 2017 and concluded that they have no material effect on either the current or prior periods.

The Directors have reviewed the current and projected financial position of the Group and are satisfied that the Group has adequate resources to cover current liabilities. Therefore, the Directors continue to adopt the going concern basis in preparing the half year report.

   2.   Status of the interim financial information 

The interim financial information in this statement has not been audited or reviewed by auditors pursuant to the Auditing Practices Board guidance on review of interim financial information and does not constitute statutory accounts, as defined in section 435 of the Companies Act 2006. The auditors' report on the statutory accounts for the year ended 31 March 2016 was unqualified and did not contain a statement under section 498 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2016 have been delivered to the Registrar of Companies. The interim financial statements were approved by the Board of Directors on 22 November 2016. The preparation of the interim financial information requires management to make assumptions and estimates about future events which are uncertain, the actual outcome of which may result in a materially different outcome from that anticipated.

   3.   Segmental Analysis 
 
                                       UK         USA   Eliminations       Total 
                               ----------  ----------  -------------  ---------- 
 For the six months ended 30       GBP000      GBP000         GBP000      GBP000 
  September 2016 
 Rental and related income         46,436      23,778              -      70,214 
 
 Property operating expenses     (25,131)    (12,890)              -    (38,021) 
 
 Profit/(loss) on disposal 
  of property                       7,502       (237)              -       7,265 
 
 Net valuation movements on 
  property                         36,731       1,880              -      38,611 
 
 Administrative expenses          (5,495)       (401)              -     (5,896) 
 
 Profit before finance costs       60,043      12,130              -      72,173 
 
 Net financing expense            (3,088)     (3,973)              -     (7,061) 
 
 Profit before taxation            56,955       8,157              -      65,112 
 
 Income tax charge                (1,292)     (2,343)              -     (3,635) 
 
 Profit for the period             55,663       5,814              -      61,477 
                               ----------  ----------  -------------  ---------- 
 
 Capital expenditure               13,273       2,939              -      16,212 
                               ----------  ----------  -------------  ---------- 
 As at 30 September 2016 
 Investment property            1,572,623     544,470              -   2,117,093 
 Other assets                      94,583      76,601       (11,377)     159,807 
                               ----------  ----------  -------------  ---------- 
 Total segment assets           1,667,206     621,071       (11,377)   2,276,900 
 Total segment liabilities      (350,247)   (376,624)         11,377   (715,494) 
                               ----------  ----------  -------------  ---------- 
 Capital employed               1,316,959     244,447              -   1,561,406 
                               ----------  ----------  -------------  ---------- 
 
 
                                       UK         USA   Eliminations       Total 
                               ----------  ----------  -------------  ---------- 
 For the six months ended 30       GBP000      GBP000         GBP000      GBP000 
  September 2015 
 Rental and related income         46,465      19,755              -      66,220 
 
 Property operating expenses     (23,556)    (11,726)              -    (35,282) 
 
 Profit/(loss) on disposal 
  of property                       4,126       (247)              -       3,879 
 
 Net valuation movements on 
  property                         35,513           -              -      35,513 
 
 Administrative expenses          (5,807)       (378)              -     (6,185) 
 
 Profit before finance costs       56,741       7,404              -      64,145 
 
 Net financing expense            (2,058)     (3,224)              -     (5,282) 
 
 Profit before taxation            54,683       4,180              -      58,863 
 
 Income tax charge               (10,197)     (2,846)              -    (13,043) 
 
 Profit for the period             44,486       1,334              -      45,820 
                               ----------  ----------  -------------  ---------- 
 
 Capital expenditure                3,840       3,051              -       6,891 
                               ----------  ----------  -------------  ---------- 
 As at 30 September 2015 
 Investment property            1,476,441     410,807              -   1,887,248 
 Other assets                      85,336      51,748        (9,581)     127,503 
                               ----------  ----------  -------------  ---------- 
 Total segment assets           1,561,777     462,555        (9,581)   2,014,751 
 Total segment liabilities      (351,740)   (284,636)          9,581   (626,795) 
                               ----------  ----------  -------------  ---------- 
 Capital employed               1,210,037     177,919              -   1,387,956 
                               ----------  ----------  -------------  ---------- 
 
 
   4.   Taxation 

The tax charge in the interim statement has benefited from a one off credit of GBP7.7 million arising from the enactment of a reduction in the future UK corporation tax rate from 18% to 17% (effective 1 April 2020) which has reduced our cumulative net deferred tax liabilities. The tax charge for year ending 31 March 2016 benefited from a one off credit of GBP13.8 million arising from the enactment of a reduction in the future UK corporation tax rate from 20% to 18%.

   5.   Dividends 

No dividends were paid in the six months ended 30 September 2016 (six months ended 30 September 2015: GBPNil).

   6.   Investment properties 

The Directors have estimated the value of the investment properties at 30 September 2016 after consultation with the Group's advisers. A full valuation of the Group's properties will be carried out by independent professional valuers at 31 March 2017.

   7.   Financial Instruments - fair value disclosure 

The Group seeks to reduce interest rate risk by fixing rates on the majority of its loans and borrowings, either through the use of fixed rate mortgage finance or through interest rate swaps. The Group does not speculate in treasury products.

The Group does not hedge account and all its mortgages and interest rate swaps are initially recognised at fair value. Mortgages are subsequently recorded at amortised cost whilst interest rate swaps are subsequently recorded at fair value, with any movement being recorded in the consolidated income statement. The fair values of all these financial instruments are determined by reference to observable inputs that are classified as Level 2 in the fair value hierarchy set out in International Financial Reporting Standard 13 Fair Value Measurement. Fair values have been determined by discounting expected future cash flows using market interest rates and yield curves over the remaining term of the instrument, as adjusted to reflect the credit risk attributable to the Group and, where relevant, its counterparty.

Fair value measurements are as follows:

 
 
                              Unaudited              Unaudited               Audited 
                              30 Sep 2016            30 Sep 2015            31 Mar 2016 
                         Book Value      Fair   Book Value      Fair   Book Value      Fair 
                                        Value                  Value                  Value 
                             GBP000    GBP000       GBP000    GBP000       GBP000    GBP000 
 
 Loans and borrowings       347,592   371,301      300,610   317,957      321,928   342,156 
 Interest rate 
  swaps                       3,800     3,800        3,462     3,462        3,170     3,170 
 
                            351,392   375,101      304,072   321,419      325,098   345,326 
                        -----------  --------  -----------  --------  -----------  -------- 
 
 Current                     21,176    24,961       21,911    25,243       18,686    22,108 
 Non-current                330,216   350,140      282,161   296,176      306,412   323,218 
 
                            351,392   375,101      304,072   321,419      325,098   345,326 
                        -----------  --------  -----------  --------  -----------  -------- 
 
 
 
 

In both 2016 and 2015 there were no non-recurring fair value measurements and there were no material differences between the fair value and carrying amounts of all the other financial assets of the Group.

   8.   Related party transactions 

Day-to-day management of the Group's properties in the UK is mainly carried out by Highdorn Co. Limited and by Freshwater Property Management Limited. Mr BSE Freshwater and Mr SI Freshwater are directors of both companies. They have no beneficial interest in the share capital of Highdorn Co. Limited. Mr BSE Freshwater, Mr SI Freshwater and Mr D Davis are directors of the parent company of Freshwater Property Management Limited but have no beneficial interest in either company. Mr RE Freshwater has a beneficial interest in a trust holding interests in shares in Highdorn Co. Limited.

In their capacity as managing agents, Highdorn Co. Limited and Freshwater Property Management Limited collect rents and incur direct property expenses on behalf of the Group. At 30 September 2016, the aggregate net amounts due to the Group from Highdorn Co. Limited and Freshwater Property Management Limited in relation to such agency receipts and payments was GBP1.1 million (2015: GBP0.2 million due from the Group). These amounts are not secured and are payable on demand. No guarantees have been given or received and the amounts are settled in cash.

The amounts paid by the Group during the period for the provision of property and other management services by Highdorn Co. Limited and Freshwater Property Management Limited were GBP3.9 million (six months ended 30 September 2015: GBP2.6 million).

The board considers that the Directors are the key management personnel of the Group and their remuneration is disclosed in the Daejan Holdings PLC Annual Report for 31 March 2016.

   9.   Statement of Directors' responsibilities 

The Directors confirm that this condensed set of financial statements has been prepared in accordance with IAS 34 as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8.

The Directors of Daejan Holdings PLC are listed in the Daejan Holdings PLC Annual Report for

31 March 2016. A list of current Directors is maintained on the Daejan Holdings PLC website www.daejanholdings.com.

B S E Freshwater

Chairman

23 November 2016

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR AKBDPOBDDODB

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November 23, 2016 02:00 ET (07:00 GMT)

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