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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 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMDJAN
RNS Number : 8048U
Daejan Holdings PLC
17 July 2018
17 July 2018
DAEJAN HOLDINGS PLC
UNAUDITED PRELIMINARY RESULTS ANNOUNCEMENT for the year ended 31 March 2018
The Chairman, Mr B S E Freshwater, today announced Preliminary Results for the year to 31 March 2018.
The financial highlights for the year ended 31 March 2018 are as follows:
Hot Features
Premium
2018 2017
GBP000 GBP000
Investment property 2,373,184 2,256,800
Net rental and related income
from investment property 66,478 64,800
Profit before taxation 201,262 198,396
Income tax 1,696 (36,266)
Profit for the year 202,958 162,130
Total equity 1,812,993 1,655,955
Equity shareholders' funds GBP111.25 GBP101.61
per share
Earnings per share GBP12.45 GBP9.93
The revaluation of the investment property portfolio at the year end has resulted in a net valuation surplus for the year of GBP146,438,000 (2017 - GBP144,508,000). As a result of the reduction in the USA corporation tax rate from 35% to 21%, the Group has benefitted from a release of GBP39.9m from the provision for deferred tax. The Board has recommended a final dividend of 68p per share in respect of the year ended 31 March 2018 payable on 2 November 2018 to shareholders on the register on 5 October 2018. This will make a total dividend for the year of 103p (2017 - 98p).
Earnings per share is calculated by reference to profit on ordinary activities after taxation attributable to equity holders of the parent of GBP202,889,000 (2017 - GBP161,779,000) and 16,295,357 (2017 - 16,295,357) ordinary shares being the weighted average number of ordinary shares in issue during the year. Equity shareholders' funds per share is calculated by reference to total equity attributable to equity holders of the parent of GBP1,812,902,000 (2017 - GBP1,655,715,000) and the ordinary shares detailed above.
DAEJAN HOLDINGS PLC
CONSOLIDATED INCOME STATEMENT
FOR THE YEARED 31 MARCH 2018
Year Year
ended ended
31 March 31 March
2018 2017
GBP000 GBP000
Gross rental income 131,323 125,522
Service charge income 11,562 15,216
------------------------------------------------------ --------- ---------
Total rental and related income from investment
property 142,885 140,738
Property operating expenses (76,407) (75,938)
------------------------------------------------------ --------- ---------
Net rental and related income from investment
property 66,478 64,800
Profit on disposal of investment property 11,893 14,594
Net valuation gains on investment property 146,438 144,508
Administrative expenses (13,263) (12,559)
------------------------------------------------------ --------- ---------
Net operating profit before net financing
costs 211,546 211,343
------------------------------------------------------ --------- ---------
Fair value gains on derivative financial instruments 1,923 86
Fair value gains on current investments 6 -
Other financial income 581 499
Financial expenses (12,794) (13,532)
------------------------------------------------------ --------- ---------
Net financing expense (10,284) (12,947)
------------------------------------------------------ --------- ---------
Profit before taxation 201,262 198,396
Income tax 1,696 (36,266)
------------------------------------------------------ --------- ---------
Profit for the year 202,958 162,130
------------------------------------------------------ --------- ---------
Attributable to:-
Equity holders of the parent 202,889 161,779
Non-controlling interest 69 351
------------------------------------------------------ --------- ---------
Profit for the year 202,958 162,130
------------------------------------------------------ --------- ---------
Basic and diluted earnings per share GBP12.45 GBP9.93
------------------------------------------------------ --------- ---------
DAEJAN HOLDINGS PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 MARCH 2018
Year ended Year ended
31 March 31 March
2018 2017
GBP000 GBP000
Profit for the year 202,958 162,130
Foreign exchange translation differences (29,759) 29,076
------------------------------------------ ----------- -----------
Total comprehensive income for the year 173,199 191,206
------------------------------------------ ----------- -----------
Attributable to:
Equity holders of the parent 173,156 190,845
Non-controlling interest 43 361
------------------------------------------ ----------- -----------
Total comprehensive income for the year 173,199 191,206
------------------------------------------ ----------- -----------
DAEJAN HOLDINGS PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 MARCH 2018
Issued Equity
share Translation Retained shareholders' Minority
capital Share premium reserve earnings funds interest Total equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1
April 2016 4,074 555 32,051 1,443,345 1,480,025 69 1,480,094
Profit for the
year - - - 161,779 161,779 351 162,130
Foreign exchange
translation
differences - - 29,066 - 29,066 10 29,076
Distributions to
non-controlling
interest - - - - - (190) (190)
Dividends to
equity
shareholders - - - (15,155) (15,155) - (15,155)
----------------- ---------- -------------- ------------ ----------- ----------------- ---------- -------------
Balance at 31
March 2017 4,074 555 61,117 1,589,969 1,655,715 240 1,655,955
Profit for the
year - - - 202,889 202,889 69 202,958
Foreign exchange
translation
differences - - (29,733) - (29,733) (26) (29,759)
Distributions to
non-controlling
interest - - - - - (192) (192)
Dividends to
equity
shareholders - - - (15,969) (15,969) - (15,969)
----------------- ---------- -------------- ------------ ----------- ----------------- ---------- -------------
Balance at 31
March 2018 4,074 555 31,384 1,776,889 1,812,902 91 1,812,993
----------------- ---------- -------------- ------------ ----------- ----------------- ---------- -------------
DAEJAN HOLDINGS PLC
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2018
31 March 31 March
2018 2017
GBP000 GBP000
Assets
Investment property 2,373,184 2,256,800
Deferred tax assets 197 524
Total non-current assets 2,373,381 2,257,324
--------------------------------------------- ---------- -----------
Trade and other receivables 62,714 65,062
Current investments 158 162
Cash and cash equivalents 98,752 84,283
--------------------------------------------- ---------- -----------
Total current assets 161,624 149,507
--------------------------------------------- ---------- -----------
Total assets 2,535,005 2,406,831
--------------------------------------------- ---------- -----------
Equity
Share capital 4,074 4,074
Share premium 555 555 Translation reserve 31,384 61,117 Retained earnings 1,776,889 1,589,969 --------------------------------------------- ---------- ----------- Total equity attributable to equity holders of the parent 1,812,902 1,655,715 Non-controlling interest 91 240 --------------------------------------------- ---------- ----------- Total equity 1,812,993 1,655,955 --------------------------------------------- ---------- ----------- Liabilities Loans and borrowings 296,501 303,242 Deferred tax liabilities 271,807 299,756 --------------------------------------------- ---------- ----------- Total non-current liabilities 568,308 602,998 --------------------------------------------- ---------- ----------- Loans and borrowings 53,958 49,297 Trade and other payables 52,489 51,360 Current taxation 47,257 47,221 --------------------------------------------- ---------- ----------- Total current liabilities 153,704 147,878 --------------------------------------------- ---------- ----------- Total liabilities 722,012 750,876 --------------------------------------------- ---------- ----------- Total equity and liabilities 2,535,005 2,406,831 --------------------------------------------- ---------- -----------
DAEJAN HOLDINGS PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 31 MARCH 2018
Year Year
ended ended
31 March 31 March
2018 2017
GBP000 GBP000 GBP000 GBP000
Cash flows from operating activities
Cash generated from operations 56,480 39,150
Interest received 581 500
Interest paid (12,592) (13,529)
Tax paid (8,967) (7,132)
Net cash from operating activities 35,502 18,989
------------------------------------------- --------- ---------- --------- ---------
Cash flows from investing activities
Acquisition and development of investment
property (39,424) (27,726)
Proceeds from sale of investment
property 16,085 18,242
------------------------------------------- --------- ---------- --------- ---------
Net cash absorbed by investing activities (23,339) (9,484)
------------------------------------------- --------- ---------- --------- ---------
Cash flows from financing activities
Repayment of bank loans (2,509) (1,871)
New bank loans 15,000 -
Repayment of mortgages (58,398) (6,899)
New mortgages 70,216 8,057
Dividends paid to equity holders
of the parent (15,969) (15,155)
Payments to non-controlling interest (192) (190)
------------------------------------------- --------- ---------- --------- ---------
Net cash generated from/(absorbed
by) financing activities 8,148 (16,058)
------------------------------------------- --------- ---------- --------- ---------
Net increase/(decrease) in cash
and cash equivalents 20,311 (6,553)
Cash and cash equivalents brought
forward 84,283 84,863
Effect of exchange rate fluctuations
on cash held (5,842) 5,973
------------------------------------------- --------- ---------- --------- ---------
Cash and cash equivalents 98,752 84,283
------------------------------------------- --------- ---------- --------- ---------
DAEJAN HOLDINGS PLC
Notes
1. The financial information set out in this Preliminary Announcement does not constitute the Company's statutory accounts for the years ended 31 March 2018 or 2017. The financial information for 2017 is derived from the statutory accounts for 2017 which have been delivered to the Registrar of Companies. The Auditors have reported on the 2017 accounts; their report was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under Section 498(2) or (3) of the Companies Act 2006. The statutory accounts for 2018 will be finalised on the basis of the financial information presented by the Directors in this Preliminary Announcement and using policies consistent in all material respects with the policies applied in the Company's statutory accounts for 2017, as set out in those accounts as delivered to the Registrar of Companies. The statutory accounts for 2018 will be delivered to the Registrar of Companies following the Company's next Annual General Meeting.
To facilitate comparisons with most other major UK listed property groups, the consolidated statement of cash flows has been presented using the indirect method; no restatement of prior year numbers was required.
2. Significant judgements and estimates
In preparing the financial information the Group must make a number of judgements and estimates. Management consider the following estimates to be particularly significant because of the level of complexity and estimation involved in their application and their impact on the financial information.
i. Property valuations
The valuation of the Group's property portfolio is inherently subjective, depending on many factors, including the individual nature of each property, its location and expected future net rental values, market yields and comparable market transactions. Therefore the valuations are subject to a degree of uncertainty and are made on the basis of assumptions which may not prove to be accurate, particularly in periods of difficult market or economic conditions. All the Group's properties are valued by external valuers with appropriate qualifications and experience.
In the UK the aggregate amount of the valuation is GBP1,799,333,000 at 31 March 2018 (2017 - GBP1,668,630,000) and in the US the aggregate amount of the valuation is GBP592,405,000 at 31 March 2018 (2017 - GBP602,466,000). Both are based on the open market values assessed in accordance with professional standards. The aggregate professional valuations included in the balance sheet have been reduced by an amount of GBP18,554,000 at 31 March 2018 (2017 - GBP14,296,000) relating to lease incentives included in Trade and other receivables.
ii. Income taxes
The tax treatment of some transactions and calculations cannot be determined until a formal resolution has been reached with the relevant tax authorities. In particular, the Group is discussing the treatment of historical financing arrangements with tax authorities. In such cases, a best estimate of the relevant tax charge or credit is made, having regard to the extent of uncertainties associated with it. Where the final outcome of such matters is different from amounts initially recorded, those differences will be reflected in the income and deferred tax amounts at the time of the formal resolution.
3. Segmental Analysis
UK USA Eliminations Total
---------- ---------- -------------- ----------
For the year ended 31 March GBP000 GBP000 GBP000 GBP000
2018
Rental and related income 92,395 50,490 - 142,885
Property operating expenses (47,278) (29,129) - (76,407)
Profit/(loss) on disposal
of property 12,900 (1,007) - 11,893
Net valuation movements on
property 97,504 48,934 - 146,438
Administrative expenses (12,600) (663) - (13,263)
Profit before finance costs 142,921 68,625 - 211,546
Net financing expense (3,352) (6,932) - (10,284)
Profit before taxation 139,569 61,693 - 201,262
Income tax (charge)/credit (21,883) 23,579 - 1,696
Profit for the year 117,686 85,272 - 202,958
========== ========== ============== ==========
Capital expenditure 32,057 8,580 - 40,637
========== ========== ============== ==========
As at 31 March 2018
Investment property 1,783,506 589,678 - 2,373,184
Other assets 84,777 87,821 (10,777) 161,821
---------- ---------- -------------- ----------
Total segment assets 1,868,283 677,499 (10,777) 2,535,005
Total segment liabilities (385,452) (347,337) 10,777 (722,012)
---------- ---------- -------------- ----------
Capital employed 1,482,831 330,162 - 1,812,993
========== ========== ============== ==========
UK USA Eliminations Total
---------- ---------- ------------- ----------
For the year ended 31 March GBP000 GBP000 GBP000 GBP000
2017
Rental and related income 91,859 48,879 - 140,738
Property operating expenses (48,334) (27,604) - (75,938)
Profit on disposal of property 14,204 390 - 14,594
Net valuation movements on
property 109,987 34,521 - 144,508
Administrative expenses (11,782) (777) - (12,559)
Profit before finance costs 155,934 55,409 - 211,343
Net financing expense (4,952) (7,995) - (12,947)
Profit before taxation 150,982 47,414 - 198,396
Income tax charge (17,028) (19,238) - (36,266)
Profit for the year 133,954 28,176 - 162,130
========== ========== ============= ==========
Capital expenditure 23,322 6,856 - 30,178
========== ========== ============= ==========
As at 31 March 2017
Investment property 1,655,922 600,878 - 2,256,800
Other assets 82,730 79,205 (11,904) 150,031
---------- ---------- ------------- ----------
Total segment assets 1,738,652 680,083 (11,904) 2,406,831
Total segment liabilities (359,078) (403,702) 11,904 (750,876)
---------- ---------- ------------- ----------
Capital employed 1,379,574 276,381 - 1,655,955
========== ========== ============= ==========
4. Taxation
The Group's overall effective tax rate was 0.8% credit (2017 - 18.3% charge). In the UK, the effective tax rate was 15.7% (2017 - 11.3%); 2017 benefited from a reduction in the rate of future deferred tax from 18% to 17%. In the USA, the effective rate was 38.2% credit (2017 - 40.6% charge). In the USA we have a tax credit in the current year due to the Trump administration change in the USA corporate tax rate from 35% to 21% which has led us to recalculate our USA deferred tax liabilities.
Tax liabilities are recognised when it is considered probable that there will be a future outflow of funds to a tax authority. In assessing the amount of tax due the Group uses professional advisers in both the UK and the USA to assist in assessing tax due on open tax computations. The principal uncertain tax item relates to enquiries opened by HMRC relating to the interpretation of tax legislation regarding historical financing arrangements that had been entered into over several years in the ordinary course of business but have now ceased. On advice of leading Counsel, we continue actively to dispute the assessments from HMRC but at present we estimate the probable range of outcomes of the tax which may become due is GBP23 to GBP52 million. The directors have made an accrual for tax which is within this range, included within the current tax liability and which is in their view an adequate estimate of potential tax that might arise. An accrual has also been made for potential interest. Due to the uncertainty associated with such items, it is possible that at a future date, on reaching a conclusion on these open tax matters, the final outcome may vary significantly.
5. Dividends
Dividends of GBP16.0m (2017 - GBP15.2m) were paid in the year ended 31 March 2018.
6. Investment Properties
A full valuation of the Group's properties has been carried out by individual professional valuers at 31 March 2018.
2018 2017
GBP000 GBP000
Opening valuation 2,256,800 2,009,361
New acquisitions 1,069 472
Additions to existing properties 39,568 29,706
Disposals (4,134) (1,192)
---------- ----------
2,293,303 2,038,347
---------- ----------
Revaluation gain 146,438 144,508
Foreign exchange (loss)/gain (66,557) 73,945
---------- ----------
Closing valuation 2,373,184 2,256,800
---------- ----------
7. Cash generated from operations
2018 2017
GBP000 GBP000
Net operating profit before net financing
costs 211,546 211,343
Adjusted for:
Net valuation gain on investment property (146,438) (144,508)
Net gain on sale of investment property (11,893) (14,594)
Net valuation loss/(gain) on listed investments 10 (3)
---------- ----------
Cash flows from operations before changes
in working capital
Changes in working capital: 53,225 52,238
Change in trade and other receivables 366 (5,040)
Change in trade and other payables 2,889 (8,048)
---------- ----------
Working capital movement 3,255 (13,088)
---------- ----------
Cash generated from continuing operations 56,480 39,150
---------- ----------
8. 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 the 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 interest rate swaps are initially recognised and subsequently recorded at fair value, with any movement being recorded in the consolidated income statement. The fair values of all interest rate swaps and fixed rate loans 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, it's counterparty.
31 March 2018 31 March 2017
Book Value Fair Value Book Value Fair Value
GBP000 GBP000 GBP000 GBP000
Loans and borrowings 350,459 358,199 352,539 366,968
Interest rate swaps 1,161 1,161 3,084 3,084
----------- ----------- ----------- -----------
351,620 359,360 355,623 370,052
----------- ----------- ----------- -----------
Current 55,119 55,898 52,381 54,551
Non-current 296,501 303,462 303,242 315,501
----------- ----------- ----------- -----------
351,620 359,360 355,623 370,052
----------- ----------- ----------- -----------
In both 2018 and 2017 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 instruments of the Group.
9. Related party transactions
Day-to-day management of the Group's properties in the UK is mainly carried out by Highdorn Co. Limited ("Highdorn") and by Freshwater Property Management Limited ("FPM"). Mr BSE Freshwater and Mr SI Freshwater are directors of both companies. They have no beneficial interest in the share capital of Highdorn. Mr BSE Freshwater, Mr SI Freshwater and Mr D Davis are directors of the parent company of FPM but have no beneficial interest in either company. Mr CB Freshwater and Mr RE Freshwater have a beneficial interest in a trust holding interests in shares in Highdorn.
In their capacity as property managing agents, Highdorn and FPM collect rents and incur direct property expenses on behalf of the Group. At 31 March 2018, the aggregate net amount due to the Group from Highdorn and FPM was GBP2.7 million (2017 - GBP6.6 million). 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 amount charged to the Group for the provision of property and other management services by Highdorn and FPM for the year ended 31 March 2018 was GBP6.2 million (2017 - GBP4.5 million).
10. The Annual General Meeting will be held at 2.30 pm on Wednesday 29 August 2018 in The Connaught Rooms, 61-65 Great Queen Street, London WC2B 5DA.
For further information call:
Mark Jenner
Company Secretary
Daejan Holdings PLC
020 7836 1555
Nick Oborne
Weber Shandwick Financial
020 7067 0700
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
FR EAKXKFLKPEFF
(END) Dow Jones Newswires
July 17, 2018 02:00 ET (06:00 GMT)
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