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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Highcroft Investments Plc | LSE:HCFT | London | Ordinary Share | GB0004254875 | 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% | 587.50 | 550.00 | 625.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Real Estate Investment Trust | 5.61M | -7.12M | -1.3667 | -4.30 | 30.59M |
From Apr 2019 to Apr 2024
TIDMHCFT
RNS Number : 4476F
Highcroft Investments PLC
28 July 2016
28 July 2016
Highcroft Investments PLC
Interim Report for the six months ended 30 June 2016
Key Highlights:
*Gross rental income increased 18% to GBP1,867,000 (2015 GBP1,585,000)
*100% occupancy in our property portfolio (2015 97%)
*Net rental income increased 27% to GBP1,775,000 (2015 GBP1,394,000)
*Total earnings per share reduced 31% to 44.3p (2015 64.2p)
*Property valuation GBP57,240,000 (2015 GBP57,022,000) increased 1% on a like-for-like basis
*Net assets per share increased 8% to 1046p (June 2015 965p, December 2015 1026p)
*Net debt GBP4,794,000 (2015 GBP9,490,000)
*Interim property income distribution up 5% to 15.0p (2015 14.3p)
Dear Shareholder
I am pleased to report good trading results for the 6 months ended 30 June 2016. Gross rental income has increased by 18%, reflecting the benefit of a full period's income from our Wisbech property bought in May 2015. Despite general uncertainty in the pre and post referendum environment, our confidence in the group's future is reflected by a proposed interim property income distribution of 15.0p per share - an increase of 5% on 2015. This continues our long-standing policy and record of raising our dividend ahead of inflation.
Results for the period
Property
Gross rental income has risen by 18%. This increase primarily reflects the rental income from the Wisbech property purchased in May 2015, net of the rental income foregone from the sale of the Warrington property in August 2015 and the Kingston property in January 2016. In addition we have benefited from two positive rent reviews and have no voids, whereas in 2015 three properties in our portfolio were vacant for part of the first half of the year. Our property expenses for the six month period fell to GBP92,000 (2015 GBP191,000). The 2015 figure was abnormally high and arose from significant one-off works, including asbestos removal, which had to be carried out at the Norwich and Leamington Spa retail units. The 2016 costs include GBP42,000 of professional fees associated with an aborted acquisition where a decision was taken to withdraw because the covenant weakened significantly during our negotiations. We disposed of one residential unit, occupied by a regulated tenant, in the period, at a profit of GBP90,000 over the December 2015 valuation. We have also completed one lease extension in our multi-occupied block of flats.
The external independent valuation of our property portfolio at 30 June 2016 showed a gain of 1% on a like-for-like basis arising from small increases gained, in part from positive rent reviews on our properties at Bicester and Crawley, and also in the granting of planning consent to construct 9 residential units at our property in Staines. In light of the Chancellor's increase in stamp duty on commercial properties, this 1% gain was significant compared with many of our competitors in the market who have had downward adjustments to their portfolios.
The upgrading of the property portfolio continues with the aim of improving the weighted unexpired lease term, strengthening covenants and increasing the average lot-size.
Our property portfolio is now valued at GBP57.2 million (2015 GBP57.0 million).
Equities
Equity markets have undergone considerable volatility in the period, and we took advantage of this to reduce our portfolio by GBP0.5m in line with our stated long-term strategy. As a result of this approach, together with the sales made in 2015, dividend income from our equity portfolio reduced to GBP73,000 (2015 GBP87,000). We raised GBP493,000 from the sale of equities at a loss of GBP13,000 to the year end valuation and made a small purchase, costing GBP3,000. The net gain on valuation of GBP200,000 (2015 loss on valuation GBP210,000) in the half year is a reflection of the prevailing market conditions that existed at 31 December 2015 and also at 30 June 2016. We intend to continue to reduce our equity portfolio in line with our stated strategy.
Financial
Earnings per share on revenue activities increased to 28.4p (2015 23.1p) due primarily to the increased net rental income, net of increased finance expenses. The more volatile measure of total earnings per share which includes unrealised valuation gains was 44.3p (2015 64.2p).
At 30 June 2016 the cash position was GBP6,706,000 (2015 GBP2,010,000), our medium term loans totalled GBP11,500,000 (2015 GBP11,500,000) resulting in a net gearing level of 9% (2015 19%).
Dividend
I am pleased to report that we will propose an interim property income distribution of 15.0p (2015 14.3p) per share, payable on 14 October 2016 to shareholders on the register at 16 September 2016 (with an ex dividend date of 15 September 2016).
Outlook
One lease renewal has been completed after the period end and this, together with those completed in the first half of 2016, should enable us to increase the underlying gross rental income in the second half of 2016. However, profits on capital activities may be affected in the second half of the year due to the uncertainties arising in this post referendum period.
Following the vote for 'Brexit' the property market would appear to have polarised. Whilst the large open-ended funds and institutions are facing cash calls from investors, and therefore seek to urgently sell substantial amounts of property, the small company and private investor market is still very acquisitive and is as strong as ever. Our own requirements fall into this latter category which is making it competitive for us to secure suitable investments. However, having been somewhat cautious since the middle of 2015, when faced with a paucity of suitable properties which fitted our quality and price criteria, we are, I believe, well placed in terms of liquidity and low gearing to take advantage of any purchasing opportunities that may arise in this post referendum period.
Given the subdued outlook for interest rates in both the short and long dated ends of the market, we would consider raising our level of gearing, if opportunities arise, to increase the quality and yield of our portfolio.
John Hewitt
Chairman
27 July 2016
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
For further information, contact:
Highcroft Investments PLC
John Hewitt/Roberta Miles +44 (0)1865 840023
Panmure Gordon (UK) Limited
Karri Vuori/Fabien Holler +44 (0)20 7886 2500
Condensed consolidated interim statement of comprehensive income (unaudited)
for the six months ended 30 June 2016
Hot Features
Premium
Unaudited Unaudited Audited
---------------------- ---- ---------------------------- ---------------------------- ----------------------------
First half First half
2016 2015 Full year 2015
---------------------- ---- ---------------------------- ---------------------------- ----------------------------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Continuing operations
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Gross rental income 1,867 - 1,867 1,585 - 1,585 3,435 - 3,435
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Property operating
expenses (92) - (92) (191) - (191) (329) - (329)
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net rental income 1,775 - 1,775 1,394 - 1,394 3,106 - 3,106
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Realised gains on
investment property 127 - 127 22 - 22 418 - 418
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Realised losses on
investment property - - - - - - - - -
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net gain on disposal
of investment
property 127 - 127 22 - 22 418 - 418
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Valuation gains on
investment property - 778 778 - 2,329 2,329 - 4,840 4,840
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Valuation losses on
investment property - (165) (165) - - - - (75) (75)
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net valuation gains
on investment
property - 613 613 - 2,329 2,329 - 4,765 4,765
---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Dividend income 73 - 73 87 - 87 182 - 182 ---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- -------- Gains on investments 3 294 297 4 52 56 - 87 87 ---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- -------- Losses on investments (16) (94) (110) (16) (262) (278) - (502) (502) ---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- -------- Net investment income/(loss) 60 200 260 75 (210) (135) 182 (415) (233) ---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- -------- Administrative expenses (323) - (323) (243) - (243) (533) - (533) ---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- -------- Operating profit before net financing costs 1,639 813 2,452 1,248 2,119 3,367 3,173 4,350 7,523 ---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- -------- Finance income 8 - 8 3 - 3 7 - 7 ---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- -------- Finance expenses (235) - (235) (128) - (128) (365) - (365) ---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- -------- Net finance costs (227) - (227) (125) - (125) (358) - (358) ---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- -------- Profit before tax 1,412 813 2,225 1,123 2,119 3,242 2,815 4,350 7,165 ---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- -------- Income tax credit 4 60 3 63 70 3 73 56 14 70 ---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- -------- Total profit and comprehensive income for the financial period 1,472 816 2,288 1,193 2,122 3,315 2,871 4,364 7,235 ---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- -------- Basic and diluted earnings per share 6 28.4p 15.9p 44.3p 23.1p 41.1p 64.2p 55.6p 84.4p 140.0p ---------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Condensed consolidated interim statement of financial position (unaudited)
as at 30 June 2016
Unaudited Unaudited Audited
30 June 30 June 31 December
2016 2015 2015
Note GBP'000 GBP'000 GBP'000
------------------------------- ---- --------- --------- ------------
Assets
------------------------------- ---- --------- --------- ------------
Investment property 7 57,240 57,022 57,964
------------------------------- ---- --------- --------- ------------
Equity investments 8 2,851 3,695 3,155
------------------------------- ---- --------- --------- ------------
Total non-current assets 60,091 60,717 61,119
------------------------------- ---- --------- --------- ------------
Current assets
------------------------------- ---- --------- --------- ------------
Trade and other receivables 723 612 641
------------------------------- ---- --------- --------- ------------
Cash at bank and in hand 6,706 2,010 4,852
------------------------------- ---- --------- --------- ------------
Total current assets 7,429 2,622 5,493
------------------------------- ---- --------- --------- ------------
Total assets 67,520 63,339 66,612
------------------------------- ---- --------- --------- ------------
Liabilities
------------------------------- ---- --------- --------- ------------
Current liabilities
------------------------------- ---- --------- --------- ------------
Current corporation tax - 5 -
------------------------------- ---- --------- --------- ------------
Trade and other payables 1,613 1,570 1,664
------------------------------- ---- --------- --------- ------------
Total current liabilities 1,613 1,575 1,664
------------------------------- ---- --------- --------- ------------
Non-current liabilities
------------------------------- ---- --------- --------- ------------
Interest-bearing loans and
borrowings 9 11,500 11,500 11,500
------------------------------- ---- --------- --------- ------------
Deferred tax liabilities 362 423 425
------------------------------- ---- --------- --------- ------------
Total non-current liabilities 11,862 11,923 11,925
------------------------------- ---- --------- --------- ------------
Total liabilities 13,475 13,498 13,589
------------------------------- ---- --------- --------- ------------
Net assets 54,045 49,841 53,023
------------------------------- ---- --------- --------- ------------
Equity
------------------------------- ---- --------- --------- ------------
Issued share capital 1,292 1,292 1,292
------------------------------- ---- --------- --------- ------------
Revaluation reserve - property 15,392 13,661 14,764
------------------------------- ---- --------- --------- ------------
Revaluation reserve - other 465 785 667
------------------------------- ---- --------- --------- ------------
Capital redemption reserve 95 95 95
------------------------------- ---- --------- --------- ------------
Realised capital reserve 26,109 25,137 25,586
------------------------------- ---- --------- --------- ------------
Retained earnings 10,692 8,871 10,619
------------------------------- ---- --------- --------- ------------
Total equity 54,045 49,841 53,023
------------------------------- ---- --------- --------- ------------
Condensed consolidated interim statement of changes in equity
for the six months ended 30 June 2016
First half 2016 - Unaudited
Revaluation reserves
---------------------- -------- -------------------------- ----------- -------- --------- --------
Capital Realised Retained
Equity Property Other redemption capital earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- -------- ------------ ------------ ----------- -------- --------- --------
At 1 January 2016 1,292 14,764 667 95 25,586 10,619 53,023
---------------------- -------- ------------ ------------ ----------- -------- --------- --------
Dividends - - - - - (1,266) (1,266)
---------------------- -------- ------------ ------------ ----------- -------- --------- --------
Reserve transfers:
---------------------- -------- ------------ ------------ ----------- -------- --------- --------
Non-distributable
items recognised
in income statement:
---------------------- -------- ------------ ------------ ----------- -------- --------- --------
Revaluation gains - 613 200 - - (813) -
---------------------- -------- ------------ ------------ ----------- -------- --------- --------
Tax on revaluation
gains/(losses) - - - - - - -
---------------------- -------- ------------ ------------ ----------- -------- --------- --------
Realised gains - - - - 116 (116) -
---------------------- -------- ------------ ------------ ----------- -------- --------- --------
Surplus attributable
to assets sold - - (407) - 407 - -
---------------------- -------- ------------ ------------ ----------- -------- --------- --------
Excess of cost
over revalued amount
taken to retained
earnings - 15 5 - - (20) -
---------------------- -------- ------------ ------------ ----------- -------- --------- -------- Transactions with owners - 628 (202) - 523 (2,215) (1,266) ---------------------- -------- ------------ ------------ ----------- -------- --------- -------- Profit and total comprehensive income for the period - - - - - 2,288 2,288 ---------------------- -------- ------------ ------------ ----------- -------- --------- -------- At 30 June 2016 1,292 15,392 465 95 26,109 10,692 54,045 ---------------------- -------- ------------ ------------ ----------- -------- --------- --------
First half 2015 - Unaudited
Revaluation reserves
--------------------------- -------- -------------------------- ----------- -------- --------- --------
Capital Realised Retained
Equity Property Other redemption capital earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- -------- ------------ ------------ ----------- -------- --------- --------
At 1 January 2015 1,292 11,332 1,335 95 24,785 8,863 47,702
--------------------------- -------- ------------ ------------ ----------- -------- --------- --------
Dividends - - - - - (1,176) (1,176)
--------------------------- -------- ------------ ------------ ----------- -------- --------- --------
Reserve transfers:
--------------------------- -------- ------------ ------------ ----------- -------- --------- --------
Non-distributable
items recognised
in income statement:
--------------------------- -------- ------------ ------------ ----------- -------- --------- --------
Revaluation gains/(losses) - 2,329 (210) - - (2,119) -
--------------------------- -------- ------------ ------------ ----------- -------- --------- --------
Tax on revaluation
gains/(losses) - - - - - - -
--------------------------- -------- ------------ ------------ ----------- -------- --------- --------
Realised gains - - - - 12 (12) -
--------------------------- -------- ------------ ------------ ----------- -------- --------- --------
Surplus attributable
to assets sold - - (340) - 340 - -
--------------------------- -------- ------------ ------------ ----------- -------- --------- --------
Excess of cost
over revalued amount
taken to retained
earnings - - - - - - -
--------------------------- -------- ------------ ------------ ----------- -------- --------- --------
Transactions with
owners - 2,329 (550) - 352 (3,307) (1,176)
--------------------------- -------- ------------ ------------ ----------- -------- --------- --------
Profit and total
comprehensive income
for the period - - - - - 3,315 3,315
--------------------------- -------- ------------ ------------ ----------- -------- --------- --------
At 30 June 2015 1,292 13,661 785 95 25,137 8,871 49,841
--------------------------- -------- ------------ ------------ ----------- -------- --------- --------
Condensed consolidated interim statement of
changes in equity for the six months ended 30 June 2016 (continued)
Full year 2015 - Audited
Revaluation
reserves
--------------------------- -------- --------------------- ----------- -------- --------- --------
Capital Realised Retained
Equity Property Other redemption capital earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- -------- ---------- --------- ----------- -------- --------- --------
At 1 January 2015 1,292 11,332 1,335 95 24,785 8,863 47,702
--------------------------- -------- ---------- --------- ----------- -------- --------- --------
Dividends - - - - - (1,914) (1,914)
--------------------------- -------- ---------- --------- ----------- -------- --------- --------
Reserve transfers:
--------------------------- -------- ---------- --------- ----------- -------- --------- --------
Non-distributable
items recognised
in income statement:
--------------------------- -------- ---------- --------- ----------- -------- --------- --------
Revaluation gains/(losses) - 4,765 (278) - - (4,487) -
--------------------------- -------- ---------- --------- ----------- -------- --------- --------
Tax on revaluation
gains/(losses) - - 14 - - (14) -
--------------------------- -------- ---------- --------- ----------- -------- --------- --------
Realised gains - - - - 364 (364) -
--------------------------- -------- ---------- --------- ----------- -------- --------- --------
(Surplus)/deficit
attributable to
assets sold - (33) (404) - 437 - -
--------------------------- -------- ---------- --------- ----------- -------- --------- --------
Excess of cost
over revalued amount
taken to retained
earnings - (1,300) - - - 1,300 -
--------------------------- -------- ---------- --------- ----------- -------- --------- --------
Transactions with
owners - 3,432 (668) - 801 (5,479) (1,914)
--------------------------- -------- ---------- --------- ----------- -------- --------- --------
Profit and total
comprehensive income
for the period - - - - - 7,235 7,235
--------------------------- -------- ---------- --------- ----------- -------- --------- --------
At 31 December
2015 1,292 14,764 667 95 25,586 10,619 53,023
--------------------------- -------- ---------- --------- ----------- -------- --------- --------
Condensed consolidated interim statement of cash flows
for the six months ended 30 June 2016
Unaudited Unaudited Audited
First First Full
half half year
2016 2015 2015
GBP'000 GBP'000 GBP'000
---------------------------------------------------------- --------- --------- --------
Operating activities
---------------------------------------------------------- --------- --------- --------
Profit before tax for the period 2,225 3,242 7,165
---------------------------------------------------------- --------- --------- --------
Adjustments for:
---------------------------------------------------------- --------- --------- --------
Net valuation gains on investment
property (613) (2,329) (4,765)
---------------------------------------------------------- --------- --------- --------
Gain on disposal of investment property (127) (22) (418)
---------------------------------------------------------- --------- --------- --------
Net (gains)/losses on investments (187) 222 415
---------------------------------------------------------- --------- --------- --------
Finance income (8) (3) (7)
---------------------------------------------------------- --------- --------- --------
Finance expense 235 128 365
---------------------------------------------------------- --------- --------- --------
Operating cash flow before changes
in working capital and provisions 1,525 1,238 2,755
---------------------------------------------------------- --------- --------- --------
Increase in trade and other receivables (82) (197) (226)
---------------------------------------------------------- --------- --------- --------
(Decrease)/increase in trade and
other payables (50) 263 352
---------------------------------------------------------- --------- --------- --------
Cash generated from operations 1,393 1,304 2,881
---------------------------------------------------------- --------- --------- --------
Finance income 8 3 7
---------------------------------------------------------- --------- --------- --------
Finance expense (235) (128) (365)
---------------------------------------------------------- --------- --------- --------
Income tax paid - - -
---------------------------------------------------------- --------- --------- --------
Net cash flows from operating activities 1,166 1,179 2,523
---------------------------------------------------------- --------- --------- --------
Investing activities
---------------------------------------------------------- --------- --------- --------
Purchase of fixed assets - investment
property - (8,574) (8,590)
---------------------------------------------------------- --------- --------- --------
- equity investments (3) (7) (7)
---------------------------------------------------------- --------- --------- --------
Sale of fixed assets - investment
property 1,464 426 2,332
---------------------------------------------------------- --------- --------- --------
- equity investments 493 623 969
---------------------------------------------------------- --------- --------- --------
Net cash flows from investing activities 1,954 (7,532) (5,296)
---------------------------------------------------------- --------- --------- --------
Financing activities
---------------------------------------------------------- --------- --------- --------
New bank borrowings - 7,500 7,500
---------------------------------------------------------- --------- --------- --------
Dividends paid (1,266) (1,176) (1,914)
---------------------------------------------------------- --------- --------- --------
Net cash flows from financing activities (1,266) 6,324 5,586
---------------------------------------------------------- --------- --------- --------
Net increase/(decrease) in cash
and cash equivalents 1,854 (29) 2,813
---------------------------------------------------------- --------- --------- --------
Cash and cash equivalents at 1 January 4,852 2,039 2,039
---------------------------------------------------------- --------- --------- --------
Cash and cash equivalents at period
end 6,706 2,010 4,852
---------------------------------------------------------- --------- --------- --------
Notes (Unaudited)
for the six months ended 30 June 2016
1. Nature of operations and general information
Highcroft Investments PLC ('Highcroft') and its subsidiaries' (together 'the group') principal activity is investment in property and equities. It is incorporated and domiciled in Great Britain. The address of Highcroft's registered office, which is also its principal place of business, is Thomas House, Langford Locks, Kidlington, OX5 1HR. Highcroft's condensed consolidated interim financial statements are presented in Pounds Sterling (GBP), which is also the functional currency of the group. These condensed consolidated interim financial statements have been approved for issue by the directors on 27 July 2016. The financial information for the period ended 30 June 2016 set out in this interim report does not constitute statutory accounts as defined in Section 404 of the Companies Act 2006. The group's statutory financial statements for the year ended 31 December 2015 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain statements under Section 498(2) or Section 498(5) of the Companies Act 2006.
2. Basis of preparation
These condensed consolidated interim financial statements are for the six months ended 30 June 2016. They have been prepared in accordance with IAS 34, Interim Financial Reporting. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the group for the year ended 31 December 2015.
These condensed consolidated interim financial statements have been prepared under the historical cost convention, as modified by the revaluation of investment properties and the measurement of equity investments at fair value. These condensed consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 31 December 2015.
The accounting policies have been applied consistently throughout the group for the purposes of preparation of these condensed consolidated interim financial statements.
The financial statements are drawn up on a going concern basis. The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future, and consider that there are no material uncertainties that lead to significant doubt upon the group's ability to continue as a going concern. Cash flow forecasts are prepared annually as part of the planning and budgeting process and are monitored and reworked regularly. The group has fixed-term non amortising borrowing and has additional headroom available. In addition the group has relatively liquid assets in the form of listed equity investments on which it can draw if necessary.
3. Segment reporting
Segmental information is presented in the condensed consolidated interim financial statements in respect of the group's business segments. The business segment reporting format reflects the group's management and internal reporting structure. Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. All gross income is from external tenants or external investments.
The group is comprised of the following main business segments:
-- Commercial property comprising retail outlets, offices, warehouses and retail warehouses in England and Wales
-- Residential property comprising a single-let house and flats in England -- Financial assets comprising exchange-traded equity investments.
3. Segment reporting (continued)
First First Full
half half year
2016 2015 2015
GBP'000 GBP'000 GBP'000
----------------------------- -------- -------- --------
Commercial property
----------------------------- -------- -------- --------
Gross income 1,855 1,564 3,402
----------------------------- -------- -------- --------
Profit for the period 1,844 3,098 7,297
----------------------------- -------- -------- --------
Assets 64,287 58,456 60,192
----------------------------- -------- -------- --------
Liabilities 12,798 12,798 12,821
----------------------------- -------- -------- --------
Residential property
----------------------------- -------- -------- --------
Gross income 12 21 33
----------------------------- -------- -------- --------
Profit for the period 133 293 131
----------------------------- -------- -------- --------
Assets 375 1,182 460
----------------------------- -------- -------- --------
Liabilities - - -
----------------------------- -------- -------- --------
Financial assets
----------------------------- -------- -------- --------
Gross income 73 87 182
----------------------------- -------- -------- --------
Profit/(loss) for the period 330 (76) (193)
----------------------------- -------- -------- --------
Assets 2,858 3,701 5,960
----------------------------- -------- -------- --------
Liabilities 677 699 768
----------------------------- -------- -------- --------
Total
----------------------------- -------- -------- --------
Gross income 1,940 1,672 3,617
----------------------------- -------- -------- --------
Profit for the period 2,307 3,315 7,235
----------------------------- -------- -------- --------
Assets 67,520 63,339 66,612
----------------------------- -------- -------- --------
Liabilities 13,475 13,497 13,589
----------------------------- -------- -------- --------
In 2016 the largest tenant represented 10% (2015 12%) and the second largest tenant represented 9% (2015 11%) of gross commercial property income for the period.
4. Income tax (credit)/expense
First First Full
half half year
2016 2015 2015
GBP'000 GBP'000 GBP'000
=================== ======== ======== ========
Current tax:
------------------- -------- -------- --------
On revenue profits (60) (70) (13)
------------------- -------- -------- --------
On capital profits (3) (3) (43)
------------------- -------- -------- --------
(63) (73) (56)
------------------- -------- -------- --------
Deferred tax - - (14)
=================== ======== ======== ========
(63) (73) (70)
=================== ======== ======== ========
The taxation charge has been based on the estimated effective tax rate for the full year. As a Real Estate Investment Trust the group does not pay corporation tax on its profits and gains from its commercial and residential property activities.
5. Dividends
On 27 July 2016, the directors declared a property income distribution of 15.0p per share (2015 14.3p per share) payable on 14 October 2016 to shareholders registered at 16 September 2016.
The following property income distributions have been paid by the company:
First First Full
half half year
2016 2015 2015
GBP'000 GBP'000 GBP'000
================================== ======== ======== ========
2015 final: 24.50p per ordinary
share (2014 final 22.75p) 1,266 1,176 1,176
---------------------------------- -------- -------- --------
2015 interim: 14.30p per ordinary
share - - 738
================================== ======== ======== ========
1,266 1,176 1,914
================================== ======== ======== ========
6. Earnings per share
The calculation of earnings per share is based on the profit for the period of GBP2,288,000 (2015 GBP3,315,000) and on 5,167,240 shares (2015 5,167,240) which is the weighted average number of shares in issue during the period ended 30 June 2016 and throughout the period since 1 January 2015.
In order to draw attention to the impact of valuation gains and losses which are included in the income statement but not available for distribution under the company's articles of association, an adjusted earnings per share based on the profit available for distribution of GBP1,472,000 (2015 GBP1,193,000) has been calculated.
First First Full
half half year
2016 2015 2015
GBP'000 GBP'000 GBP'000
==================================== ======== ======== ========
Earnings:
------------------------------------ -------- -------- --------
Basic earnings 2,288 3,315 7,235
------------------------------------ -------- -------- --------
Adjustments for:
------------------------------------ -------- -------- --------
Net valuation profits on investment
property (613) (2,329) (4,765)
------------------------------------ -------- -------- --------
Gains and losses on investments (200) 210 415
------------------------------------ -------- -------- --------
Income tax on gains and losses (3) (3) (14)
==================================== ======== ======== ========
Adjusted earnings 1,472 1,193 2,871
==================================== ======== ======== ========
Per share amount:
------------------------------------ -------- -------- --------
Basic earnings per share 44.3p 64.2p 140.0p
------------------------------------ -------- -------- --------
Adjustments for:
------------------------------------ -------- -------- --------
Net valuation gains on investment
property (11.9p) (45.1p) (92.2p)
------------------------------------ -------- -------- --------
Gains and losses on investments (3.9p) 4.1p 8.0p
------------------------------------ -------- -------- --------
Income tax on gains and losses (0.1p) (0.1p) (0.2p)
==================================== ======== ======== ========
Adjusted earnings per share 28.4p 23.1p 55.6p
==================================== ======== ======== ========
7. Investment property
First First Full
half half year
2016 2015 2015
GBP'000 GBP'000 GBP'000
======================== ======== ======== ========
Valuation at 1 January 57,964 46,523 46,523
------------------------ -------- -------- --------
Additions - 8,574 8,590
------------------------ -------- -------- --------
Disposals (1,337) (404) (1,914)
------------------------ -------- -------- --------
Gain on revaluation 613 2,329 4,765
======================== ======== ======== ========
Valuation at period end 57,240 57,022 57,964
======================== ======== ======== ========
The directors have used an external independent valuation of properties at 30 June 2016 which has been carried out consistently with the annual valuation.
8. Equity investments
First First Full
half half year
2016 2015 2015
GBP'000 GBP'000 GBP'000
================================= ======== ======== ========
Valuation at 1 January 3,155 4,532 4,532
--------------------------------- -------- -------- --------
Additions 3 7 7
--------------------------------- -------- -------- --------
Disposals (507) (634) (1,038)
--------------------------------- -------- -------- --------
Surplus/(deficit) on revaluation
in excess of cost 206 (210) (277)
--------------------------------- -------- -------- --------
Revaluation decrease below cost (32) (16) (71)
--------------------------------- -------- -------- --------
Revaluation increase still below
cost 26 16 2
================================= ======== ======== ========
Valuation at period end 2,851 3,695 3,155
================================= ======== ======== ========
9. Interest bearing loans
First First Full
half half year
2016 2015 2015
GBP'000 GBP'000 GBP'000
==================================== ======== ======== ========
Medium term loans 11,500 11,500 11,500
==================================== ======== ======== ========
The medium term bank loans comprise
amounts falling due as follows:
------------------------------------ -------- -------- --------
Between two and five years 4,000 - 4,000
==================================== ======== ======== ========
Over five years 7,500 11,500 7,500
==================================== ======== ======== ========
The debt is secured on certain assets within the group's property portfolio.
10. Related party transactions
Kingerlee Holdings Limited owns, through its wholly owned subsidiaries, 27.2% (2015 27.2%) of the company's shares and D H Kingerlee is a director of both the company and Kingerlee Holdings Limited.
During the period, the group made purchases from Kingerlee Limited a subsidiary of Kingerlee Holdings Limited, being a service charge in relation to services at Thomas House, Kidlington of GBP7,000 (2015 GBP7,000). The amount owed at 30 June 2016 was nil (2015 nil). All transactions were undertaken on an arm's length basis.
11. Net assets per share
First First Full
half half year
2016 2015 2015
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Net assets GBP54,045,000 GBP49,841,000 GBP53,023,000
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Ordinary shares in issue 5,167,240 5,167,240 5,167,240
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Basic net assets per share 1046p 965p 1026p
=========================== ============= ============= =============
Statement of directors' responsibilities
The directors confirm that, to the best of their knowledge, this condensed consolidated set of half-year financial statements has been prepared in accordance with IAS 34. The half-year management report includes a fair review of the information required by 4.2.7 and 4.2.8 of the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority, namely:
-- an indication of the important events that have occurred during the first six months of the financial year ending 31 December 2016 and their impact on the condensed consolidated set of half-year financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
-- disclosure of material related party transactions in the first six months of the financial year, and any material changes in the related party transactions described in the last annual report.
A list of current directors is maintained on the Highcroft Investments PLC website: www.highcroftplc.com.
By order of the board
John Hewitt
Chairman
27 July 2016
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFSRDEIDFIR
(END) Dow Jones Newswires
July 28, 2016 02:00 ET (06:00 GMT)
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