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PNS Panther Securities Plc

300.00
0.00 (0.00%)
21 May 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Panther Securities Plc LSE:PNS London Ordinary Share GB0005132070 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% 300.00 280.00 320.00 300.00 300.00 300.00 0.00 07:48:48
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Lessors Of Real Property,nec 13.41M 16.99M 0.9721 3.09 52.42M

Panther Securities PLC Interim Report - six months ended 30 June 2022 (2252A)

22/09/2022 7:01am

UK Regulatory


Panther Securities (LSE:PNS)
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TIDMPNS

RNS Number : 2252A

Panther Securities PLC

22 September 2022

22 September 2022

Panther Securities PLC

(the "Company")

Interim Report for the six months ended 30 June 2022

Chairman's Statement

I am once again pleased to report our results for the six months ended 30 June 2022. We show a profit after tax of GBP9,958,000, compared to a profit after tax of GBP8,856,000 for the first half of 2021.

As with previous periods, the major contributors to the significant profit after tax figures are the non-cash valuation movements mainly in relation to swap value movements.

In February 2021, the Group agreed to pay GBP5 million to have a variation to a long-term swap agreement. The agreement varied was an interest rate swap fixed at 5.06% until 31 August 2038 on a nominal value of GBP35 million and now has circa 16.2 years remaining. Following the Group's variation, the Group's fixed rate will drop on 1 September 2023 to 3.40%, saving the Group GBP581,000 pa in cash flow until the end-point of the instrument.

At 30 June 2022, there was a swap liability reduction compared to that shown at 31 December 2021 of GBP11,329,000 due to upward spike in the current and future interest rates, thus contributing to the improvement of our net asset value, which was 553p per share as at 31 December 2021 and 599p per share as at 30 June 2022.

Secondly, we revalued our property portfolio for the half year accounts and there was one significant event being a substantial letting at Maldon at a higher rent of GBP800,000 per annum (previously GBP600,000 per annum) and this resulted in a valuation increase of GBP2,050,000.

Rents receivable during the period under review were GBP6,387,000 compared to the previous year's first half of GBP6,447,000. There were still some concessions given to our tenants who had suffered due to the various lockdowns, which are recognised in the period, but they were not significant. Our rents appear to be strengthening, and at the end of August our rent roll was circa GBP14.7 million on an annualised basis.

Disposals

There were no disposals during this period.

Acquisitions

In May 2022, we acquired the Lower Healey Business Park in Chorley, Lancashire. The freehold estate comprises approximately 10 acres containing 116,000 sq. ft. of single storey factory space let to a number of different tenants with some vacant land capable of further development. We understand there is good tenant demand in this area partly because the Estate adjoins the M61 and is 2.5 miles from Exit 8. This Estate is currently producing GBP432,000 per annum and cost GBP5,026,000, including purchasing costs.

In June 2022, we completed our purchase of the previously mentioned substantial freehold factory and warehouse in Trowbridge, Wiltshire. This comprised of approximately 96,000 sq.ft. of usable space situated in approximately six acres. This property is located on one of the best industrial estates in Trowbridge where demand is strong.

This unit was purchased vacant for GBP3,300,000 and has since been let in August to an excellent covenant at GBP455,000 per annum exclusive and will undoubtedly show a substantial value increase when we revalue for our year end.

Developments

Peterborough

The former Beales store in Peterborough, currently partly occupied by New Start 2020 Limited, trading as Beales, has had a planning application submitted for a large mixed-use development of shops/offices and 125 residential units whilst retaining a substantial part of the existing attractive Edwardian brick building façade. The current older style department store contains approximately 145,000 sq. ft. of space unsuitable for current retail markets and may receive a decision by the end of this year.

Barry Parade, Peckham Rye

The plans for this redevelopment of a local supermarket, shops and fourteen flats, have been agreed in their entirety, subject to Section 106 payment which is over and above the normal conditions. There is an appeal in progress.

Broadstairs

This development is fully completed with eleven out of twelve flats now let. Tesco Express is on the ground floor and opened for trade in July 2021, and this development made a welcome addition to Broadstairs High Street. This asset at the time of writing was producing GBP180,000 per annum.

Swindon

Whilst everything with regard to the two planning permissions on this central Swindon site have been agreed, progress has been slow due to the council requiring some complicated clauses in the new 250 year lease, the overall financial terms of which were previously provisionally agreed.

Whilst we expect to resolve these issues soon, the delay is disappointing but, in due course, the improvement to the former covered market site will take place.

Dividends

We paid a delayed 6p per share interim dividend for year ended 31 December 2021 in February 2022.

We also paid a 6p per share final dividend for the year ended 31 December 2021 on 20 July 2022. This final dividend for the year ended 31 December 2021 is accrued in these accounts as it was not paid until after the period end (but was approved by shareholders).

We are declaring an interim dividend for the year ending 31 December 2022 of 6p per share to be paid on 20 October 2022 to shareholders on the register at 7 October 2022 (ex-dividend 6 October 2022). We expect to maintain our dividend for the full year.

Future progress

The country, both the public and businesses, finally having substantially recovered from the problems caused by the coronavirus pandemic, have now been thrown into a further period of uncertainty by the problems caused by the Russian invasion of the Ukraine.

I suspect that, like myself, most of us were unaware of the now obvious repercussions of this unwarranted invasion of the Ukraine. The fact that Russia is one of the world's largest oil and gas producers and the major supplier of Europe's energy has enabled it to weaponise this position to bring pressure on all of its opponents who are horrified by its actions. Russia's ability to blockade the Ukraine's export of wheat when it is one of the world's major producers together with its ability to restrict the flow of gas into Europe has caused an upward burst in world inflation, especially in energy costs, which for some users will triple over three years and which will cause major problems for many small and large businesses and the vast majority of our population.

We are all currently awaiting what measures our government will take to alleviate this very difficult situation.

In this environment caution is our watch word and, thus, our Group will act accordingly.

Andrew S Perloff

Chairman

22 September 2022

Chairman's Ramblings

On Thursday, 8(th) September, our much-admired and loved Queen Elizabeth II died rather suddenly, only two days after receiving the resignation of her Prime Minister, Boris Johnson and inviting Liz Truss to take over his role.

Although a great admirer and supporter of the monarchy and our late Queen, in particular, possibly because my earliest memories start with viewing on a TV especially purchased to view her Coronation which was televised for the first time in June 1953. I do not feel qualified to comment further as we have heard and read so many eloquent and touching comments of our Queen's service to our country, and via our modern media, we have also visually seen the affection in which so many people held her. Having lived 90% of my life under her reign, I consider myself an Elizabethan.

Whilst it is too early to comment on our new Prime Minister after she has had only a few weeks in power, I wish her good luck in her desire to improve our country, and would add that I like many of her proposed ideas which she set out in her successful campaign to be chosen as the new Conservative leader and, thus, Prime Minister.

Of course, only time will tell what her performance will be in what is probably the most important and difficult job in our United Kingdom.

 
        Panther Securities P.L.C. 
 
 CONDENSED CONSOLIDATED INCOME STATEMENT 
  for the six months ended 30 June 2022 
 
 
 
                                                   Notes   Six months   Six months          Year 
                                                                ended        ended         ended 
                                                              30 June      30 June   31 December 
                                                                 2022         2021          2021 
                                                              GBP'000      GBP'000       GBP'000 
 
                                                            Unaudited    Unaudited       Audited 
 
 Revenue                                            2           6,387        6,447        13,172 
 Cost of sales                                      2         (2,891)      (1,838)       (4,651) 
                                                          -----------  -----------  ------------ 
 Gross profit                                                   3,496        4,609         8,521 
 
 Other income                                                     325          321           958 
 Administrative expenses                                        (699)        (830)       (1,492) 
 Bad debt expense                                               (858)        (658)         (286) 
                                                          -----------  -----------  ------------ 
 Operating profit                                               2,264        3,442         7,701 
 
 Profit on disposal of investment properties                        -           88           701 
 Movement in fair value of investment 
  properties                                        6           2,050        1,213           961 
                                                          -----------  -----------  ------------ 
                                                                4,314        4,743         9,363 
 
 Finance costs - interest                                     (1,385)        (969)       (2,322) 
 Finance costs - swap interest                                  (954)      (1,439)       (2,806) 
 Finance costs - swap variation                     7               -      (5,000)       (5,000) 
 Investment income                                                 10           17            29 
 Loss realised on the disposal of investments 
  (shares)                                                          -        (100)          (96) 
 Fair value gain on derivative financial 
  liabilities                                       7          11,329       14,326        16,754 
                                                          -----------  -----------  ------------ 
 Profit before income tax                                      13,314       11,578        15,922 
 
 Income tax expense                                 3         (3,356)      (2,722)       (2,411) 
                                                          -----------  -----------  ------------ 
 Profit for the period                                          9,958        8,856        13,511 
                                                          ===========  ===========  ============ 
 
 
 Earnings per share 
 Basic and diluted - continuing operations          5           56.5p        50.1p         76.4p 
                                                          -----------  -----------  ------------ 
 
 
 
 
                 Panther Securities P.L.C. 
 
 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
          for the six months ended 30 June 2022 
 
 
 
                                                Six months   Six months          Year 
                                                     ended        ended         ended 
                                                   30 June      30 June   31 December 
                                                      2022         2021          2021 
                                                   GBP'000      GBP'000       GBP'000 
 
                                                 Unaudited    Unaudited       Audited 
 
 Profit for the period                               9,958        8,856        13,511 
                                               -----------  -----------  ------------ 
 Items that will not be reclassified 
  subsequently to profit or loss 
 Movement in fair value of investments 
  taken to equity                                     (47)           77            55 
 Deferred tax relating to movement in 
  fair value of investments taken to 
  equity                                                12         (15)          (14) 
 Realised fair value on disposal of 
  investments previously taken to equity                 -          143           148 
 Realised deferred tax relating to disposal 
  of investments previously taken to 
  equity                                                 -         (27)          (37) 
                                                            ----------- 
 Other comprehensive (loss)/income 
  for the period, net of tax                          (35)          178           152 
 Total comprehensive income for the 
  period                                             9,923        9,034        13,663 
                                               -----------  -----------  ------------ 
 
 Attributable to: 
 Equity holders of the parent                        9,923        9,034        13,663 
                                                     9,923        9,034        13,663 
                                               -----------  -----------  ------------ 
 
 
 
                                  Panther Securities P.L.C. 
 
                  CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
                                   Company number 293147 
                                     As at 30 June 2022 
 
                                             Notes     30 June      30 June      31 December 
                                                          2022         2021             2021 
                                                       GBP'000      GBP'000          GBP'000 
 
 ASSETS                                              Unaudited    Unaudited          Audited 
 Non-current assets 
 Investment properties                           6     177,723      182,031          167,384 
 Deferred tax asset                              8           -        1,049            2,252 
 Right of use asset                                        296          335              298 
 Investments                                               304          335              292 
                                                    ----------   ----------   -------------- 
                                                       178,323      183,750          170,226 
                                                    ----------   ----------   -------------- 
 
 Current assets 
 Stock properties                                          350          350              350 
 Investments                                                29           29               29 
 Trade and other receivables                             3,383        3,873            2,996 
 Cash and cash equivalents (restricted)                      4        1,052            5,009 
 Cash and cash equivalents                               5,534        3,377            8,343 
                                                    ----------   ----------   -------------- 
                                                         9,300        8,681           16,727 
 
 Total assets                                          187,623      192,431          186,953 
                                                    ----------   ----------   -------------- 
 
 EQUITY AND LIABILITIES 
 Equity attributable to equity holders 
  of the parent 
 Capital and reserves 
 Share capital                                           4,437        4,437            4,437 
 Share premium account                                   5,491        5,491            5,491 
 Treasury shares                                         (482)        (213)            (213) 
 Capital redemption reserve                                604          604              604 
 Retained earnings                                      95,265       82,835           87,464 
 
 Total equity                                          105,315       93,154           97,783 
                                                    ----------   ----------   -------------- 
 
 Non-current liabilities 
 Long-term borrowings                            7      58,910           18           55,513 
 Derivative financial liability                  7       3,926       17,683           15,255 
 Deferred tax liability                          8       1,092            -                - 
 Leases                                                  8,353        8,339            8,353 
                                                    ----------   ----------   -------------- 
                                                        72,281       26,040           79,121 
 Current liabilities 
 Trade and other payables                                8,202        8,922            9,361 
 Accrued dividend payable                        4       1,061        1,061                - 
 Short-term borrowings                           7         500       63,066              560 
 Current tax payable                                       264          188              471 
                                                    ----------   ----------   -------------- 
                                                        10,027       73,237           10,049 
 
 Total liabilities                                      82,308       99,277           89,170 
                                                    ----------   ----------   -------------- 
 
 Total equity and liabilities                          187,623      192,431          186,953 
                                                    ----------   ----------   -------------- 
 
 
 
 
                Panther Securities P.L.C. 
 
 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
         for the six months ended 30 June 2022 
 
 
                                                                     Capital 
                                 Share      Share     Treasury    redemption    Retained 
                               capital    premium       shares       reserve    earnings      Total 
                               GBP'000    GBP'000      GBP'000       GBP'000     GBP'000    GBP'000 
 Balance at 1 January 
  2021 (audited)                 4,437      5,491        (213)           604      75,923     86,242 
 Total comprehensive 
  income for the period              -          -            -             -       9,034      9,034 
 Dividends paid                      -          -            -             -     (1,061)    (1,061) 
 Dividends due                       -          -            -             -     (1,061)    (1,061) 
                             ---------  ---------  -----------  ------------  ----------  --------- 
 Balance at 30 June 
  2021 (unaudited)               4,437      5,491        (213)           604      82,835     93,154 
                             ---------  ---------  -----------  ------------  ----------  --------- 
 
 
 Balance at 1 January 
  2021 (audited)                 4,437      5,491        (213)           604      75,923     86,242 
 Total comprehensive 
  income for the period              -          -            -             -      13,663     13,663 
 Dividends paid                      -          -            -             -     (2,122)    (2,122) 
                             ---------  ---------  -----------  ------------  ----------  --------- 
 Balance at 1 January 
  2022 (audited)                 4,437      5,491        (213)           604      87,464     97,783 
 Total comprehensive 
  income for the period              -          -            -             -       9,923      9,923 
 Treasury shares purchased           -          -        (269)             -           -      (269) 
 Dividends paid                      -          -            -             -     (1,061)    (1,061) 
 Dividends due                       -          -            -             -     (1,061)    (1,061) 
 
 Balance at 30 June 
  2022 (unaudited)               4,437      5,491        (482)           604      95,265    105,315 
                             =========  =========  ===========  ============  ==========  ========= 
 
 
                                   Panther Securities P.L.C. 
 
                         CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 
                             for the six months ended 30 June 2022 
 
                                                    Notes     30 June     30 June   31 December 
                                                                 2022        2021          2021 
                                                              GBP'000     GBP'000       GBP'000 
 
                                                            Unaudited   Unaudited       Audited 
 Cash flows from operating activities 
 Operating profit                                               2,264       3,442         7,701 
 Less: Rent paid treated as interest                            (343)       (343)         (687) 
 
 
 Profit before working capital change                           1,921       3,099         7,014 
 (Increase)/decrease in receivables                             (387)         351           929 
 (Decrease) in payables                                         (573)       (104)          (48) 
                                                           ----------  ----------  ------------ 
 Cash generated from operations                                   961       3,346         7,895 
 
 Interest paid                                                (1,848)     (2,064)       (4,295) 
 Income tax paid                                                (208)           -         (620) 
                                                           ----------  ----------  ------------ 
 Net cash (used in)/generated from operating 
  activities                                                  (1,095)       1,282         2,980 
 
 Cash flows from investing activities 
 Purchase of investment properties                            (8,529)       (569)         (832) 
 Purchase of investments**                                       (60)         (6)           (6) 
 Proceeds from sale of investment property                          -         178        15,841 
 Proceeds from sale of investments**                                -         403           435 
 Dividend income received                                           8          17            21 
 Interest income received                                           2           -             8 
                                                           ----------  ----------  ------------ 
 Net cash (used in)/generated from investing 
  activities                                                  (8,579)          23        15,467 
 
 Cash flows from financing activities 
 New loans received                                             8,500           -         6,000 
 Finance cost (SWAP variation)                                      -     (5,000)       (5,000) 
 Repayments of loans                                          (5,060)        (33)      (12,057) 
 Loan amortisation repayments                                   (250)           -         (250) 
 Purchase of own shares                                         (269)           -             - 
 Loan arrangement fees                                              -           -         (884) 
 Dividends paid                                               (1,061)     (1,061)       (2,122) 
 
 Net cash generated from/ (used in) financing 
  activities                                                    1,860     (6,094)      (14,313) 
 
 Net (decrease)/increase in cash and 
  cash equivalents                                            (7,814)     (4,789)         4,134 
 
 Cash and cash equivalents at the beginning 
  of period*                                                   13,352       9,218         9,218 
 
 Cash and cash equivalents at the end 
  of period*                                                    5,538       4,429        13,352 
                                                           ----------  ----------  ------------ 
 

* Of this balance GBP4,000 (30 June 2021: GBP1,052,000, 31 December 2021: GBP5,009,000) is restricted by the Group's lenders i.e. it can only be used for the purchase of investment property (or otherwise by agreement).

** Shares in listed and/or unlisted companies. These were held for longer term growth and dividend return.

   1.   Basis of preparation of interim financial statements 

The results for the year ended 31 December 2021 have been audited whilst the results for the six months ended 30 June 2021 and 30 June 2022 are unaudited.

The financial information set out in this interim financial report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory accounts for the year ended 31 December 2021 which were prepared in accordance with UK-adopted international accounting standards ("IFRS"), were filed with the Registrar of Companies. The auditors reported on these accounts, their report was unqualified and did not included a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain any statements under Section 498 (2) or Section 498 (3) of the Companies Act 2006.

These condensed consolidated interim financial statements are for the six month period ended 30 June 2022. They have been prepared in accordance with UK adopted international accounting standards in conformity with the requirements of the Companies Act 2006.

A number of new and amended standards and interpretations are effective from 1 January 2022 but they do not have a material effect on the Group's financial statements.

   2.   Revenue and cost of sales 

The Group's only operating segment is investment and dealing in property and securities. All revenue, cost of sales and profit or loss before taxation is generated in the United Kingdom. The Group is not reliant on any key customers.

   3.   Income tax expense 

The charge for taxation comprises the following:

 
 
                                    30 June       30 June   31 December 
                                       2022          2021          2021 
                                    GBP'000       GBP'000       GBP'000 
                                  Unaudited     Unaudited       Audited 
 Current period UK corporation 
  tax                                     -             -         (971) 
 Prior period UK corporation 
  tax                                     -             -            67 
                                 ----------  ------------  ------------ 
                                          -             -         (904) 
 
 Current period deferred 
  tax expense                       (3,356)       (2,722)       (1,507) 
                                 ----------  ------------  ------------ 
 Income tax expense for 
  the period                        (3,356)       (2,722)       (2,411) 
                                 ==========  ============  ============ 
 
 

The taxation charge is calculated by applying the Directors' best estimate of the annual effective tax rate to the profit for the period.

   4.   Dividends 

Amounts recognised as distributions to equity holders in the period:

 
                               30 June     30 June   31 December 
                                  2022        2021          2021 
                               GBP'000     GBP'000       GBP'000 
                             Unaudited   Unaudited       Audited 
 
 Final dividend for the 
  year ended 31 December 
  2021 of 6p (2020 - 6p) 
  per share                     1,061*      1,061*         1,061 
 Interim dividend for the 
  year ended 31 December 
  2021 of 6p (2020 - 6p) 
  per share                      1,061       1,061         1,061 
 
                                 2,122       2,122         2,122 
                            ==========  ==========  ============ 
 

The final dividend of 6p per share for the year ended 31 December 2021 (and 2020) was not paid during the period to 30 June 2022 but declared and approved (being accrued in these accounts) and was paid on 20 July 2022 (14 October 2021).

*Accrued at half year and paid after period end.

   5.   Earnings per share (basic and diluted) 

The calculation of basic and diluted earnings per ordinary share is based on earnings being a profit of GBP9,958,000 (30 June 2021 - GBP8,856,000 and 31 December 2021 - GBP13,511,000).

The basic earnings per share is based on the weighted average of the ordinary shares in existence throughout the period, being 17,628,469 to 30 June 2022 (17,683,469 to 31 December 2021 and 17,683,469 to 30 June 2021). There are no potential shares in existence for any period and therefore diluted and basic earnings per share are equal.

Panther Securities PLC owns 173,460 ordinary shares which are currently held in treasury (2021 - 63,460).

   6.   Investment properties 
 
                                30 June     30 June   31 December 
                                   2022        2021          2021 
                                GBP'000     GBP'000       GBP'000 
 
                              Unaudited   Unaudited       Audited 
 
 Fair value of investment 
  properties 
 
 At 1 January                   167,384     180,975       180,975 
 Additions                        8,289         233           537 
 Disposals                            -       (390)      (15,140) 
 Fair value adjustment 
  on investment properties 
  held on leases                      -           -            51 
 Revaluation increase/ 
  (decrease)                      2,050       1,213           961 
 At period end                  177,723     182,031       167,384 
                             ==========  ==========  ============ 
 

The Directors undertook the valuation as at 30 June 2022 and 31 December 2021, however an independent valuation by Carter Jonas at as July 2021 was used as at the 30 June 2021 (and also used as a starting point for the Directors' valuation for the year ended 31 December 2021).

   7.   Derivative financial instruments 

The main risks arising from the Group's financial instruments are those related to interest rate movements. Whilst there are no formal procedures for managing exposure to interest rate fluctuations, the Board continually reviews the situation and makes decisions accordingly. Hence, the Company will, as far as possible, enter into fixed interest rate swap arrangements. The purpose of such transactions is to manage the interest rate risks arising from the Group's operations and its sources of finance.

 
                                        30 June             30 June            31 December 
                                         2022                 2021                2021 
                                        GBP'000             GBP'000              GBP'000 
 Bank loans                      Unaudited    Rate     Unaudited   Rate     Audited    Rate 
 Interest is charged 
  as to: 
 Fixed/ Hedged 
 HSBC Bank plc*                     35,000   7.76%   35,000       7.01%      35,000   7.76% 
 HSBC Bank plc                           -       -   25,000       6.58%           -       - 
 Santander Bank plc                 25,000   4.71%        -           -      25,000   4.71% 
 Unamortised loan arrangement 
  fees                               (590)       -        -           -       (737)       - 
 
 Floating element 
 HSBC Bank plc                           -            3,000                 (3,250) 
 Shawbrook Bank plc                      -               84                      60 
                                ----------          -------              ---------- 
                                    59,410           63,084                  56,073 
                                ==========          =======              ========== 
 
 

* Fixed rate came into effect on 1 September 2008 and lasts for 30 years. The rate includes 2.70% margin (1.95% prior to 16 July 2021). There are no breaks and the rate drops to 3.40% on 1 September 2023 to the end of its term on 31 August 2038.

Bank loans totalling GBP60,000,000 (2021 - GBP60,000,000) are fixed using interest rate swaps removing the Group's exposure to interest rate risk. The remaining borrowings are arranged at floating rates, thus exposing the Group to cash flow interest rate risk. The Group at the period end had a GBP54,500,000 term facility (after loan amortisation repayments) and a GBP11,000,000 revolving (with only GBP5,500,000 drawn).

The derivative financial assets and liabilities are designated as held for trading.

 
                            Hedged      Rate        Duration          30 June       30 June   31 December 
                            amount     (without    of contract           2022          2021          2021 
                                       margin)      remaining      Fair value    Fair value    Fair value 
                           GBP'000                    years           GBP'000       GBP'000       GBP'000 
                                                                    Unaudited     Unaudited       Audited 
 Derivative financial 
  liability 
 Interest rate 
  swap*                      35,000      5.060%       16.19           (4,676)      (14,169)      (12,833) 
 Interest rate 
  swap**                     25,000      4.630%         -                   -         (512)             - 
 Interest rate 
  swap                       25,000      2.013%       9.42                750       (3,002)       (2,422) 
                                                                                             ------------ 
                                                                     (3,926)       (17,683)      (15,255) 
                                                                 ------------  ------------  ------------ 
            Movement in derivative financial liabilities               11,329        14,326        16,754 
                                                                 ============  ============  ============ 
 

*The Group has paid GBP5m in February 2021 to vary this long-term swap agreement. The agreement varied the fixed rate previously at 5.06% until 31 August 2038 on a nominal value of GBP35m. Following the variation, the Group's fixed rate will drop on 1 September 2023 to 3.40% saving the Group circa GBP581,000pa in cash flow until the end point of the instrument.

**This swap agreement ended on 30 November 2021.

As the Group's new loan facility entered into in July 2021 is referenced to SONIA rather than LIBOR, the Group recently altered its swap agreements onto the same basis.

Interest rate derivatives are shown at fair value in the Statement of Financial Position, with charges in fair value taken to the Income Statement. Interest rate swaps are classified as level 2 in the fair value hierarchy specified in IFRS 13.

The vast majority of the derivative financial liabilities are due in over one year and therefore they have been disclosed as all due in over one year.

The above fair values are based on quotations from the Group's banks and Directors' valuation.

Treasury management

The long-term funding of the Group is maintained by three main methods, all with their own benefits. The Group has equity finance, has surplus profits and cash flow which can be utilised and also has loan facilities with financial institutions. The various available sources provide the Group with more flexibility in matching the suitable type of financing to the business activity and ensure long-term capital requirements are satisfied.

   8.   Deferred taxation 

The following are the major deferred tax assets and liabilities recognised by the Group, and the movements thereon, during the current and prior reporting periods.

 
                                               Total 
                                             GBP'000 
 Asset at 1 January 2021                       3,810 
 Debit to equity for the year                   (51) 
 Debit to Income Statement for the year      (1,507) 
 
 Asset at 1 January 2022                       2,252 
 Debit to equity for the period                   12 
 Debit to Income Statement for the period    (3,356) 
                                            -------- 
 Liability at 30 June 2022                   (1,092) 
                                            ======== 
 
 

Deferred taxation arises in relation to:

Deferred tax

 
                                     30 June   30 June   31 December 
                                        2022      2021          2021 
                                     GBP'000   GBP'000       GBP'000 
 Deferred tax liabilities: 
 Investment properties               (2,540)   (2,678)       (2,016) 
 
 Deferred tax assets: 
 Tax allowances in excess of book 
  value                                  323       271           323 
 Fair value of investments               143        96           131 
 Derivative financial liability          982     3,360         3,814 
                                    -------- 
 Net deferred tax asset              (1,092)     1,049         2,252 
                                    ========  ========  ============ 
 

As at 30 June 2022 the substantively enacted rate was 25% (30 June 2021: 19% and 31 December 2021: 25%) and this has been used for the deferred tax calculation.

   9.   Net asset value per share 
 
                        30 June     30 June   31 December 
                           2022        2021          2021 
 
                      Unaudited   Unaudited       Audited 
 Basic and diluted         599p        527p          553p 
                     ==========  ==========  ============ 
 

10. Copies of this report are to be sent to all shareholders and are available from the Company's registered office at Unicorn House, Station Close, Potters Bar, EN6 1TL and will also be available for download from our website www.pantherplc.com .

For further information:

Panther Securities plc: Tel: 01707 667 300

Andrew Perloff / Simon Peters

Allenby Capital Limited (Nomad and Joint Broker) Tel: 020 3328 5656

David Worlidge / Alex Brearley

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END

IR FLFSAARILFIF

(END) Dow Jones Newswires

September 22, 2022 02:01 ET (06:01 GMT)

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