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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 |
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
(END) Dow Jones Newswires
November 23, 2016 02:00 ET (07:00 GMT)
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