We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
First Property Group Plc | LSE:FPO | London | Ordinary Share | GB0004109889 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 19.60 | 19.20 | 20.00 | 19.60 | 19.60 | 19.60 | 4,704 | 07:34:22 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Real Estate Agents & Mgrs | 7.25M | 1.92M | 0.0173 | 11.33 | 21.73M |
TIDMFPO
RNS Number : 2913X
First Property Group PLC
23 November 2017
Date: 23 November 2017 On behalf First Property Group plc ("First of: Property" or "the Group") Embargoed: 0700hrs
First Property Group plc
Interim Results for the six months to 30 September 2017
First Property Group plc (AIM: FPO), the award winning property fund manager and investor with operations in the United Kingdom and Central Europe, today announces its interim results for the six months to 30 September 2017.
Financial Highlights:
-- Profit before tax up 11% to GBP4.98 million (2016: GBP4.47 million);
-- Contribution to profit by Group Properties was GBP6.08 million (2016: GBP5.84 million) prior to deduction of unallocated central overheads and tax;
-- Fund management fee revenue up 63% to GBP1.49 million (2016: GBP0.92 million);
-- Cash reduced to GBP10.00 million (2016: GBP14.12 million) due to investments and capital expenditure of GBP5.14 million;
-- Interim dividend up 5% to 0.42 pence per share (2016: 0.40 pence per share); -- Adjusted NAV per share up 12% to 51.25 pence per share (2016: 45.86 pence per share);
-- Growth in adjusted NAV, together with dividends paid, since 2006 has equated to 26% per annum on an annualised basis.
Operational Highlights:
-- Total assets under management up 37% to GBP554 million (2016: GBP405 million); -- Third party assets under management up 63% to GBP382 million (2016: GBP235 million); -- Weighted average unexpired fund management contract term: 6.08 years (2016: 6.42 years);
-- New fund management contract, Fprop Offices LP: GBP182 million in equity (of which GBP51 million has been invested so far) to be invested in office properties in England.
Financial Summary:
Unaudited Unaudited Percentage Audited Six months Six months change Year to to 30 to 31 March Sept 2017 30 Sept 2017 2016 -------------------------- ------------ ------------ ----------- ---------- Income Statement: -------------------------- ------------ ------------ ----------- ---------- Revenue GBP12.09m GBP11.12m +8.7% GBP23.66m Statutory profit GBP4.98m GBP4.47m +11.4% GBP9.14m before tax Diluted earnings per share 2.84p 2.40p +18.3% 6.61p Dividend per share 0.42p 0.40p +5.0% 1.55p Average GBP/EUR rate 0.881 0.822 +7.2% 0.841 -------------------------- ------------ ------------ ----------- ---------- Balance Sheet at period end: -------------------------- ------------ ------------ ----------- ---------- Net assets per share 35.68p 29.50p +21.0% 34.84p Adjusted net assets per share (EPRA basis) 51.25p 45.86p +11.8% 47.64p Cash Balances GBP10.00m GBP14.12m -29.2% GBP15.95m Period end GBP/EUR rate 0.881 0.865 +1.8% 0.855 -------------------------- ------------ ------------ ----------- ---------- Group Property portfolio at period end: -------------------------- ------------ ------------ ----------- ---------- Group Properties GBP146.3m GBP144.3m +1.4% GBP143.5m at book value Group Properties GBP171.9m GBP170.3m +0.9% GBP164.5m at market value Gross Debt (non-recourse GBP117.8m GBP122.0m -3.4% GBP117.5m to the Group) LTV% 68.6% 71.6% 71.5% -------------------------- ------------ ------------ ----------- ---------- Total assets under GBP554m GBP405m +36.8% GBP477m management: -------------------------- ------------ ------------ ----------- ---------- Poland 40.8% 48.6% 45.4% United Kingdom 57.0% 46.6% 51.4% Romania 2.2% 4.8% 3.2%
Commenting on the results, Ben Habib, Chief Executive of First Property Group, said:
"This has been another excellent six months for First Property.
"All our funds under management and the properties we own are performing well and third party assets under management have increased by 63% since last year.
"Our prospects are excellent, underpinned by our bedrock of recurring income streams and the opportunities open to us in the various markets in which we operate.
"We look forward to delivering continued growth and increasing levels of profitability for our clients and shareholders."
A briefing for analysts will be held at 10:30hrs today at the headquarters of First Property Group plc, 32 St James's Street, London, SW1A 1HD. Participants can also attend by telephone on +44 330 336 9104, passcode 787807. A copy of the accompanying investor presentation can be accessed simultaneously at http://www.fprop.com/media-news/presentations/. An audio recording of the call will subsequently be posted on the company website, www.fprop.com/audio/.
For further information please contact:
First Property Group plc Tel: 020 7340 0270 Ben Habib (Chief Executive www.fprop.com & Chief Investment Officer) George Digby (Group Finance Director) Jeremy Barkes (Director, Business Development) Arden Partners Tel: 020 7614 5900 Chris Hardie/ Ben Cryer Redleaf Communications Tel: 020 7382 4747 Robin Tozer/ Elisabeth Cowell firstproperty@redleafpr.com
Notes to Investors and Editors:
First Property Group plc is an award winning property fund manager and investor with operations in the United Kingdom and Central Europe. Around one third of the shares in the Company are owned by management and their families.
Its focus is on higher yielding commercial property with sustainable cash flows. The company is flexible and takes an active approach to asset management. Its earnings are derived from:
-- Fund management - via its FCA regulated and AIFMD approved subsidiary, First Property Asset Management Ltd (FPAM), which earns fees from investing for third parties in property. FPAM currently manages twelve funds which are invested across the United Kingdom, Poland and Romania.
-- Group Properties - principal investments by the Group, to earn a return on its own capital, usually in partnership with third parties. Investments include ten directly held properties in Poland and Romania (including five held by Fprop Opportunities plc [FOP], in which the Group is currently the majority shareholder), and non-controlling interests in nine other funds managed by FPAM.
Listed on AIM the Company has offices in London, Warsaw and Bucharest. Further information about the Company and its products can be found at: www.fprop.com.
CHIEF EXECUTIVE'S STATEMENT
Performance:
I am pleased to report interim results for the six months ended 30 September 2017.
Revenue earned by the Group amounted to GBP12.09 million (2016: GBP11.12 million) yielding a profit before tax of GBP4.98 million (2016: GBP4.47 million). Diluted earnings per share were 2.84 pence (2016: 2.40 pence).
The Euro was on average 7.2% stronger versus Sterling during the period at an average rate of GBP0.881 (2016: GBP0.822). This resulted in Group profit before tax being GBP392,000 higher than it would have been on a constant currency basis.
The Group ended the period with reported net assets of GBP44.91 million (2016: GBP36.43 million). It is the accounting policy of the Group to carry its properties and interests in associates at the lower of cost or market value. The net assets of the Group when adjusted to their market value less any deferred tax liabilities, stood at GBP60.84 million (2016: GBP54.43 million). The growth in adjusted net assets, together with dividends paid, since 2006 has equated to 26% per annum on an annualised basis.
Group cash balances stood at GBP10.00 million (2016: GBP14.12 million) at the period end. The reduction in cash balances was primarily attributable to investments of GBP3.48 million and capital expenditure of GBP1.66 million. Of the cash held, GBP2.83 million (2016: GBP5.34 million) was held by FOP (67.3% owned by the Group) and GBP750,000 was held by Corp Sp. z o.o. (90% owned by the Group), the property management company for Blue Tower in Warsaw.
Dividend:
The Directors have resolved to increase the interim dividend by 5% to 0.42 pence per share (2016: 0.40 pence per share) which will be paid on 30 December 2017 to shareholders on the register at 2 December 2017, with an ex-dividend date of 1 December 2017.
Review of Operations:
PROPERTY FUND MANAGEMENT - (First Property Asset Management Ltd or FPAM)
As at 30 September 2017 aggregate assets under management, calculated by reference to independent third party property valuations, stood at GBP554 million (2016: GBP405 million), including some GBP172 million (2016: GBP170 million) of properties held by the Group and FOP. Of these 57% were located in the UK, 41% in Poland, and 2% in Romania.
Fund management fees are generally levied monthly by FPAM by reference to the value of properties under management. In the case of Fprop Offices LP the Group does not receive any fees but instead shares in the profits earned by the fund.
Revenue earned from fund management amounted to GBP1.49 million (2016: GBP0.92 million), resulting in a profit before unallocated central overheads and tax of GBP804,000 (2016: GBP273,000). This represents 11.7% (2016: 4.5%) of Group profit before unallocated central overheads and tax.
At the period end FPAM's fund management fee income, excluding performance fees, was being earned at an annualised rate of GBP2.64 million (2016: GBP1.90 million), a year on year increase of 38.9%.
FPAM's weighted average unexpired fund management contract term at the period end was 6.08 years (2016: 6.42 years).
Third party funds under management grew by some 22% since 31 March 2017 to GBP382 million, and by some 63% since 30 September 2016.
During the period we were awarded a new fund management contract by Fprop Offices LP, to invest in office properties in England. The fund received equity commitments of GBP182 million and is entitled to borrow up to a further GBP80 million enabling it to invest up to GBP262 million in property. Of this amount we have thus far invested GBP51 million, leaving a further GBP211 million to be invested.
The reconciliation of movement in funds under management during the period is shown below:
Funds managed Group Totals for third parties Properties (including funds (including in which the Group FOP) is a minority shareholder) ---------------- ----------------------------------- ----------------- ----------------- UK CEE Total No. All No. AUM No. GBPm. GBPm. GBPm. of CEE of GBPm. of prop's GBPm. prop's prop's ---------------- ------- ------- ------- -------- ------- -------- ------- -------- As at 1 April 2017 245.3 67.7 313.0 63 164.5 10 477.5 73 ---------------- ------- ------- ------- -------- ------- -------- ------- -------- Purchases 15.4 - 15.4 3 - - 15.4 3 New fund mandates 51.1 - 51.1 3 - - 51.1 3 Property sales - (3.7) (3.7) (3) - - (3.7) (3) Capital expenditure - - - - 1.8 - 1.8 - Property depreciation - - - - (1.1) - (1.1) - Property revaluation 4.1 - 4.1 - 1.6 - 5.7 - FX revaluation - 2.0 2.0 - 5.1 - 7.1 - As at 30 Sept 2017 315.9 66.0 381.9 66 171.9 10 553.8 76 ---------------- ------- ------- ------- -------- ------- -------- ------- --------
FPAM now manages twelve (2016: nine) closed-end funds. A brief synopsis of the value of assets and maturity of each of these vehicles is set out below:
Fund Country Fund Assets % of Assets of investment expiry under total under management assets management at market under at market value management value at at 30 Sept 30 Sept 2017 2016 ----------- --------------- -------- ------------- ------------ ------------ SAM & DHOW UK Rolling * * * RPT Poland Aug GBP7.1m 1.3% GBP7.0m 2020 5PT Poland Dec GBP8.7m 1.6% GBP8.5m 2022 UK PPP UK Feb GBP93.3m 16.9% GBP93.1m 2022 PDR UK May Nil - Nil 2018 SIPS UK Jan GBP156.1m 28.2% GBP95.3m 2025 FRS Romania Sept GBP6.7m 1.2% GBP10.2m 2025 FGC Poland Aug GBP21.2m 3.8% GBP20.4m 2024 FKR Poland Apr GBP22.3m 4.0% - 2024 SPEC OPPS UK Jan GBP15.4m 2.8% - 2027 OFFICES UK Jun GBP51.1m 9.2% - 2024 (Commitment of GBP182m) Sub Total GBP381.9m 69.0% GBP234.5m ----------- --------------- -------- ------------- ------------ ------------ FOP Poland Oct GBP73.9m 13.3% GBP67.0m 2025 GRP PROPS Poland n/a GBP98.0m 17.7% GBP103.3m & Romania ----------- --------------- -------- ------------- ------------ ------------ Sub Total GBP171.9m 31.0% GBP170.3m ----------- --------------- -------- ------------- ------------ ------------ Total GBP553.8m 100% GBP404.8m ----------- --------------- -------- ------------- ------------ ------------
* Not subject to recent revaluation
GROUP PROPERTIES
Group Properties comprises ten commercial properties in Poland and Romania, five of which are held by FOP (in which the Group is currently the majority shareholder), and non-controlling interests in nine of the twelve funds managed by FPAM, as set out in the tables below.
It is the Group's policy to carry its properties and interests in associates at the lower of cost or market value for accounting purposes, and to recognise dividends when received.
1. Directly held properties (including five held by FOP) held at 30 September 2017: Country No. Book Market Contribution Contribution of properties value value to Group to Group profit profit before before tax tax period period to to 30 Sept 30 Sept 2017 2016 ------------ --------------- ---------- ---------- --------------- ------------------ Poland 3 GBP79.6m GBP92.5m GBP3.46m GBP3.15m Romania 2 GBP4.2m GBP5.5m GBP0.46m GBP0.58m FOP (all 5 GBP62.5m GBP73.9m GBP1.90m GBP1.92m in Poland) ------------ --------------- ---------- ------------ ------------- ------------------ Total 10 GBP146.3m GBP171.9m GBP5.82m GBP5.65m ------------ --------------- ---------- ------------ ------------- ------------------ 2. Non-controlling interests in funds and joint ventures managed by FPAM at 30 September 2017: Fund % owned Book Current Group's Group's by value market share share First of First value of pre-tax of pre-tax Property Property's of holdings profits profits Group share earned earned in by fund by fund fund 30 Sept 30 Sept 2017 2016 ----- ---------- ------------- ------------- ------------ ------------ Interest in associates 5PT 37.8% GBP664,000 GBP1,151,000 GBP56,000 GBP61,000 RPT 28.6% GBP218,000 GBP270,000 GBP27,000 GBP26,000 FRS 24.1% GBP649,000 GBP803,000 GBP482,000 GBP83,000 FGC 28.2% GBP1,784,000 GBP1,987,000 GBP134,000 GBP101,000 FKR 18.1% GBP1,160,000 GBP1,598,000 GBP41,000 - ----- ---------- ------------- ------------- ------------ ------------ Sub Total GBP4,475,000 GBP5,809,000 GBP740,000 GBP271,000 ----------------- ------------- ------------- ------------ ------------ Investments UK PPP 0.9% GBP884,000 GBP884,000 GBP33,000 GBP18,000 PDR 5.0% GBP13,000 GBP13,000 - - SPEC OPPS 4.8% GBP760,000 GBP760,000 - - OFFICES 1.6% GBP908,000 GBP908,000 - -
OTHER GBP693,000 GBP693,000 - - ----------------- ------------- ------------- ---------- ---------- Sub Total GBP3,258,000 GBP3,258,000 GBP33,000 GBP18,000 ----------------- ------------- ------------- ---------- ---------- Total GBP7,733,000 GBP9,067,000 GBP773,000 GBP289,000 ------ ------------- ------------- ----------- -----------
Revenue from Group Properties amounted to GBP10.60 million (2016: GBP10.20 million), generating a profit before unallocated central overheads and tax of GBP6.08 million (2016: GBP5.84 million) and representing 88.3% (2016: 95.5%) of Group profit before unallocated central overheads and tax.
The contribution to earnings by the Group's ten properties, including the five held by FOP (in which the Group held 67.3%), is detailed below. The table below excludes the Group's non-controlling interests in funds managed by FPAM. The reduction in net operating income is very largely as a result of the sale of a Group property located in Ploiesti, Romania in March 2017.
Six months to Six months 30 Sept 2017 to 30 Sept 2016 EURm. EURm. --------------------- -------------- ----------- Net operating income (NOI) 9.41 9.66 Interest expense on bank loans/ finance leases (1.59) (1.67) --------------------- -------------- ----------- NOI after interest expense 7.82 7.99 Current tax (0.71) (0.61) Debt amortisation (3.66) (3.60) Capital expenditure (2.10) (0.46) --------------------- -------------- ----------- Free cash 1.35 3.32 --------------------- -------------- ----------- Market value of properties EUR195.08 EUR196.87 Average yield on market value 9.6% 9.8% Bank loans/ finance leases outstanding EUR133.74 EUR141.00 Loan to value (LTV) 68.6% 71.6% Weighted average 3.13 yrs 3.73 yrs unexpired lease term (WAULT) Vacancy rate 1.5% 1.8% --------------------- -------------- -----------
The loans secured against these ten properties are each held in separate non-recourse special purpose vehicles.
In order to mitigate the effects of potential interest rate rises we have fixed the interest rate on around 40% of the loans. A one percentage point increase from current market interest rates would increase the annual interest bill by GBP563,000 per annum (2016: GBP602,000). The current weighted average borrowing cost is 2.46% (2016: 2.59%) per annum.
Fprop Opportunities plc (FOP):
The contribution by FOP to Group profit before tax amounted to GBP1.51 million (2016: GBP1.65 million).
Galeria Ostrowiec, FOP's largest asset, was revalued by CBRE at EUR35.1 million, an uplift of EUR7.1 million (GBP6.26 million) from its previous appraised value, following the completion of the works to create some 4,800 m(2) of additional retail space at the centre. Capital expenditure incurred to date in this development amounted to GBP3.2 million, all of which has been capitalised. The net uplift in value is not reflected in the Group's accounts because of the Group's accounting policy to hold its assets at the lower of cost or market value. The new tenants are now completing their respective fit-outs and are expected to commence trading over the next few months. FOP's net operating income will increase as a result of this expansion and the new tenancies.
The Group has continued to sell shares held by it in FOP because it is not the Group's business model to be a controlling shareholder in funds which it manages and to simplify the Group's structure. Sales of shares in FOP during the period resulted in a capital profit for the Group of GBP101,000 (2016: GBP144,000). At the period end the Group held 67.3% (31 March 2017: 69.2%) of the issued share capital in FOP.
Associates and Investments:
The Group's non-controlling interests in funds managed by FPAM contributed GBP740,000 (2016: GBP271,000) to Group profit before tax prior to the deduction of unallocated central overheads. The bulk of this increase (GBP397,000) was received from Fprop Romanian Supermarkets Ltd, which sold three of its nine properties and distributed the profit to shareholders.
Commercial Property Markets Outlook
Poland:
GDP growth in Poland is expected to exceed 4% in 2017 and continues to exceed that of most other EU nations. Inflation has picked up but at just over 2% per annum is manageable. Government debt remains low by international standards at some 54% of GDP.
Investor demand for commercial property remains high. Volumes are expected to match or exceed that of 2016 (around EUR5 billion), itself the second highest year on record. Rental growth has been more elusive, particularly in some sub sectors, such as offices in Warsaw, where there has been considerable new development in recent years. Capital values for good secondary property remain attractive, yielding around one third more than equivalent property in Western Europe at around 7-9% per annum.
Romania:
The economic outlook for Romania is at its best since before the credit crunch. GDP growth accelerated to 8.8% year on year in the third quarter just ended and is comfortably set to exceed 4% for the year.
Investor demand for commercial property continues to improve but volumes remain slim. Around EUR1 billion of commercial property is expected to transact in 2017. The occupier market is picking up too, as the economy continues to expand but, as in Poland, rental growth remains elusive given the scale of new development.
Bank lending margins are beginning to reduce, which should boost investment demand for commercial property.
United Kingdom:
The Bank of England's recent decision to raise interest rates by 0.25% should have little impact on the commercial property market given the Bank's continued loose monetary policy program, and the continued limited availability of bank debt.
The buying window for commercial property which we identified last year following the UK's referendum on its membership of the EU remains opens for specific kinds of property, in particular the larger institutional lot sizes.
We therefore remain bullish about the prospects of the UK commercial property market and particularly Fprop Offices LP which is currently in the process of investing its capital commitments.
Current Trading and Prospects
This has been another excellent six months for First Property.
All our funds under management and the properties we own are performing well and third party assets under management have increased by 63% since last year.
Our prospects are excellent, underpinned by our bedrock of recurring income streams and the opportunities open to us in the various markets in which we operate.
We look forward to delivering continued growth and increasing levels of profitability for our clients and shareholders.
Ben Habib
Chief Executive
23 November 2017
CONSOLIDATED INCOME STATEMENT
for the six months to 30 September 2017
Six months Six months Year to to 30 to Sept 2017 (unaudited) 30 Sept 31 March 2016 2017 (unaudited) (audited) -------------------------- --- ------------- ------------- ----------- Total Total Total results results results -------------------------- --- ------------- ------------- ----------- GBP'000 GBP'000 GBP'000 Revenue 12,089 11,121 23,663 -------------------------- --- ------------- ------------- ----------- Cost of sales (2,179) (1,893) (5,065) Gross profit 9,910 9,228 18,598 Profit on sale of an investment property - - 890 Profit on sale of FOP shares 101 144 552 Reversal of impairment loss /(impairment loss) to investment properties 6 167 142 (219) Operating expenses (4,415) (3,897) (8,207) Operating profit 5,763 5,617 11,614 Share of results in associates 7 740 271 519 Distribution income 33 18 60 Interest income 3 75 81 135 Interest expense 3 (1,631) (1,514) (3,191) Profit before tax 4,980 4,473 9,137 Tax charge 4 (1,122) (1,220) (547) -------------------------- --- ------------- ------------- ----------- Profit for the period 3,858 3,253 8,590 Attributable to: Owners of the parent 3,364 2,849 7,833 Non-controlling interest 494 404 757 3,858 3,253 8,590 Earnings per share Basic 5 2.90p 2.46p 6.75p Diluted 5 2.84p 2.40p 6.61p
-------------------------- --- ------------- ------------- -----------
CONDENSED CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
for the six months to 30 September 2017
Six months Six months Year to to 30 to 31 March Sept 2017 30 Sept 2017 2016 (unaudited) (unaudited) (audited) ----------------------------------- ------------ ------------ ---------- GBP'000 GBP'000 GBP'000 ----------------------------------- ------------ ------------ ---------- Profit for the period 3,858 3,253 8,590 ------------------------------------ ------------ ------------ ---------- Other comprehensive income Exchange difference on retranslation of foreign subsidiaries (1,245) 286 2,008 Revaluation of available-for-sale financial assets - - (29) Taxation - - - Total comprehensive income for the period 2,613 3,539 10,569 ------------------------------------ ------------ ------------ ---------- Total comprehensive income for the period: Owners of the parent 2,306 3,321 9,974 Non-controlling interest 307 218 595 ------------------------------------ ------------ ------------ ---------- 2,613 3,539 10,569 ----------------------------------- ------------ ------------ ----------
All operations are continuing.
CONDENSED CONSOLIDATED BALANCE SHEET
as at 30 September 2017
Notes As at As at As at 30 Sept 30 Sept 31 March 2017 (unaudited) 2016 (unaudited) 2017 (audited) ------------------------------ ------ ------------------ ------------------ ----------- GBP'000 GBP'000 GBP'000 Non-current assets Goodwill 153 153 153 Investment properties 6 130,892 129,333 128,428 Property, plant and equipment 78 181 97 Interest in associates 7a 4,475 3,098 4,347 Other financial assets 7b 3,258 918 897 Other receivables 8 1,905 139 2,108 Deferred tax assets 4,213 3,430 4,341 ------------------------------ ------ ------------------ ------------------ ----------- Total non-current assets 144,974 137,252 140,371 Current assets Inventories - land and buildings 15,391 14,998 15,115 Current tax assets 78 123 160 Trade and other receivables 8 5,308 5,307 4,890 Cash and cash equivalents 9,998 14,115 15,946 ------------------------------ ------ ------------------ ------------------ ----------- Total current assets 30,775 34,543 36,111 Current liabilities Trade and other payables 9 (7,283) (7,685) (9,848) Financial liabilities 10a (8,861) (8,383) (19,641) Current tax liabilities (165) (187) (314) ------------------------------ ------ ------------------ ------------------ ----------- Total current liabilities (16,309) (16,255) (29,803) ------------------------------ ------ ------------------ ------------------ ----------- Net current assets 14,466 18,288 6,308 ------------------------------ ------ ------------------ ------------------ ----------- Total assets less current liabilities 159,440 155,540 146,679 ------------------------------ ------ ------------------ ------------------ ----------- Non-current liabilities Financial liabilities 10b (111,104) (115,519) (100,043) Deferred tax liabilities (3,423) (3,593) (3,208) Net assets 44,913 36,428 43,428 ------------------------------ ------ ------------------ ------------------ ----------- Equity Called up share capital 1,166 1,166 1,166 Share premium 5,785 5,777 5,781 Share-based payment reserve 203 203 203 Foreign exchange translation reserve (1,039) (1,679) 19 Investment revaluation reserve (67) (38) (67) Retained earnings 35,343 28,789 33,311 ------------------------------ ------ ------------------ ------------------ ----------- Equity attributable to the owners of the parent 41,391 34,218 40,413 Non-controlling interest 3,522 2,210 3,015 ------------------------------ ------ ------------------ ------------------ ----------- Total equity 44,913 36,428 43,428 ------------------------------ ------ ------------------ ------------------ ----------- Net assets per share 5 35.68p 29.50p 34.84p ------------------------------ ------ ------------------ ------------------ -----------
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
for the six months to 30 September 2017
Share Share Share Foreign Purchase Investment Retained Non-controlling Total Capital Premium Based Exchange of own Revaluation Earnings Interest Payment Translation Shares Reserve Reserve Reserve -------------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- -------- GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 -------------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- -------- At 1 April 2016 1,166 5,773 203 (2,151) (103) (38) 27,334 1,906 34,090 -------------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- -------- Profit for the period - - - - - - 3,253 - 3,253 Fair value (or - - - - - - - - - revaluation) gains on available-for-sale financial assets to profit or loss Movement on foreign exchange - - - 472 - - - (186) 286 Total comprehensive income - - - 472 - - 3,253 (186) 3,539 Change in proportion held by non-controlling interests - - - - - - - 100 100 Sale of treasury shares - 4 - - 2 - - - 6 Non-controlling interest - - - - - - (404) 404 - Dividends paid - - - - - - (1,293) (14) (1,307) At 30 Sept 2016 1,166 5,777 203 (1,679) (101) (38) 28,890 2,210 36,428 -------------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- -------- Profit for the period - - - - - - 5,337 - 5,337 Fair value (or revaluation) gains on available-for-sale financial assets to profit or loss - - - - - (29) - - (29) Movement on foreign exchange - - - 1,698 - - - 24 1,722
-------------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- -------- Total comprehensive income - - - 1,698 - (29) 5,337 24 7,030 Change in proportion held by non-controlling interests - - - - - - - 456 456 Sale of treasury shares - 4 - - 2 - - - 6 Non-controlling interest - - - - - - (353) 353 - Dividends paid - - - - - - (464) (28) (492) -------------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- -------- At 1 April 2017 1,166 5,781 203 19 (99) (67) 33,410 3,015 43,428 -------------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- -------- Profit for the period - - - - - - 3,858 - 3,858 Fair value (or - - - - - - - - - revaluation) gains on available-for-sale financial assets to profit or loss Movement on foreign exchange - - - (1,058) - - - (187) (1,245) Total comprehensive income - - - (1,058) - - 3,858 (187) 2,613 Change in proportion held by non-controlling interests - - - - - - - 224 224 Sale of treasury shares - 4 - - 2 - - - 6 Non-controlling interest - - - - - - (494) 494 - Dividends paid - - - - - - (1,334) (24) (1,358) -------------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- -------- At 30 Sept 2017 1,166 5,785 203 (1,039) (97) (67) 35,440 3,522 44,913 -------------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
for the six months to 30 September 2017
Six months Six months Year to to to 30 30 Sept 2016 (unaudited) 30 Sept 31 March 2017 (unaudited) 2017 (audited) ----------------------------------- ------ ------------------- ------------------ ------------ Notes GBP'000 GBP'000 GBP'000 ----------------------------------- ------ ------------------- ------------------ ------------ Cash flows from operating activities Operating profit 5,763 5,617 11,614 Adjustments for: Depreciation of investment property, and property, plant & equipment 1,138 976 1,960 Profit on the sale of an investment property - - (890) Profit on the sale of FOP shares (101) (144) (552) (Reversal of impairment loss)/ impairment loss to investment properties 6 (167) (142) 219 (Increase)/ decrease in inventories (149) (135) (130) (Increase)/ decrease in trade and other receivables (122) (122) 305 (Decrease)/ increase in trade and other payables (2,649) (364) 1,637 Other non-cash adjustments 86 (112) 615 Cash generated from operations 3,799 5,574 14,778 Income taxes paid (727) (667) (1,156) ----------------------------------- ------ ------------------- ------------------ ------------ Net cash flow from operating activities 3,072 4,907 13,622 ----------------------------------- ------ ------------------- ------------------ ------------ Cash flow from investing activities Capital expenditure on investment properties (1,663) (176) (1,990) Proceeds from partial disposal of available-for-sale assets 612 153 239 Purchase of property, plant and equipment (13) (16) (26) Consideration from the sale of FOP shares 326 244 1,108 Purchase of investments (2,361) - - Investment in shares of new associates - - (1,119) Interest received 3 75 81 135 Dividends from associates 7a - 64 96 Distributions received 33 18 64 Net cash flow (used in)/ from investing activities (2,991) 368 (1,493) ----------------------------------- ------ ------------------- ------------------ ------------ Cash flow from financing activities Net repayment of shareholder loans in subsidiaries (158) (75) (227) Proceeds from bank loan - - - Repayment of finance leases/ bank loans (3,243) (2,958) (6,075) Repayment from the sale of FOP shareholder loan 131 152 534 Short term loan to an associate - 5,083 5,083 Sale of shares held in Treasury 6 6 12 Interest paid (1,486) (1,455) (3,100) Dividends paid (1,334) (1,293) (1,757) Dividends paid to non-controlling interest (24) (14) (42) ----------------------------------- ------ ------------------- ------------------ ------------ Net cash flow (used in)/ from financing activities of continuing operations (6,108) (554) (5,572) Net (decrease)/ increase in cash and cash equivalents (6,027) 4,721 6,557 ----------------------------------- ------ ------------------- ------------------ ------------ Cash and cash equivalents at the beginning of period 15,946 8,975 8,975 ----------------------------------- ------ ------------------- ------------------ ------------ Currency translation gains/ (losses) on cash and cash equivalents 79 419 414 ----------------------------------- ------ ------------------- ------------------ ------------ Cash and cash equivalents at the end of the period 9,998 14,115 15,946 ----------------------------------- ------ ------------------- ------------------ ------------
NOTES TO THE ACCOUNTS
for the six months ended 30 September 2017
1. Basis of Preparation
-- These interim consolidated financial statements for the six months ended 30 September 2017 have not been audited or reviewed and do not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006. They have been prepared in accordance with the Group's accounting policies as set out in the Group's latest annual financial statements for the year ended 31 March 2017 and are in compliance with IAS 34 "Interim Financial Reporting". These accounting policies are drawn up in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and as adopted by the European Union (EU).
-- The comparative figures for the financial year ended 31 March 2017 are not the full statutory accounts for the financial year but are abridged from those accounts prepared under IFRS which have been reported on by the Group's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified, did not include references to any matter to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
-- These interim financial statements were approved by a committee of the Board on 22 November 2017.
2. Segmental Analysis
Segment reporting six months to 30 September 2017
Head office costs and overheads that are common to all segments are shown separately under unallocated central costs. The staff incentive accrual is included under unallocated central costs but will be reallocated across all segments at the year end.
Fund Management Group Properties Division Division --------------------- --------------------- --------------------------------------- --------------------- -------- Property Group properties Group fund Unallocated central TOTAL fund management properties ("FOP") overheads --------------------- --------------------- ----------------- -------------------- --------------------- -------- GBP000 GBP000 GBP000 GBP'000 GBP'000 Rental income - 6,262 3,000 - 9,262 Service charge income - 626 708 - 1,334 Asset management fees 1,304 - - - 1,304 Performance fees 189 - - - 189 Total Revenue 1,493 6,888 3,708 - 12,089 Depreciation and amortisation (19) (997) (122) - (1,138) --------------------- --------------------- ----------------- -------------------- --------------------- -------- Operating profit 804 4,526 2,334 (1,901) 5,763 Share of results in associates - 740 - - 740 Distribution income - 33 - - 33 Interest income - 21 54 - 75 Interest expense - (749) (882) - (1,631) --------------------- --------------------- ----------------- -------------------- --------------------- -------- Profit/ (loss) before tax 804 4,571 1,506 (1,901) 4,980 --------------------- --------------------- ----------------- -------------------- --------------------- -------- Analysed as: Underlying profit/ (loss) before tax before adjusting for the following items: 615 5,111 1,465 (486) 6,705 Sale of FOP shares - 101 - - 101 FPG's share in an associates profit from the sale of investment properties - 397 - - 397 Reversal of impairment loss to investment properties - - 167 - 167 Performance and related fees 189 - - - 189 Depreciation - (870) - - (870) Staff incentive accrual - - - (1,256) (1,256) Realised foreign currency (losses)/ gains - (168) (126) (159) (453) Profit/ (loss) before tax 804 4,571 1,506 (1,901) 4,980 --------------------- --------------------- ----------------- -------------------- --------------------- --------
Revenue for the six months to 30 September 2017 from continuing operations consists of revenue arising in the United Kingdom 8% (2016: 6%) and Central and Eastern Europe 92% (2016: 94%) and all relates solely to the Group's principal activities.
Segment reporting six months to 30 September 2016
Fund Group Properties Management Division Division --------------------- ------------ -------------------------- ------------ -------- Property Group Group Unallocated TOTAL fund properties fund central management properties overheads ("FOP") --------------------- ------------ ------------ ------------ ------------ -------- GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Rental income - 5,960 2,640 - 8,600 Service charge income - 840 763 - 1,603 Asset management fees 918 - - - 918 Performance - - - - - fees --------------------- ------------ ------------ ------------ ------------ -------- Total revenue 918 6,800 3,403 - 11,121 --------------------- ------------ ------------ ------------ ------------ -------- Depreciation and amortisation (17) (864) (95) - (976) --------------------- ------------ ------------ ------------ ------------ -------- Operating profit 273 4,566 2,427 (1,649) 5,617 Share of results in associates - 271 - - 271 Distribution income - 18 - - 18 Interest income - 51 20 10 81 Interest expense - (719) (795) - (1,514) Profit/ (loss) before tax 273 4,187 1,652 (1,639) 4,473 --------------------- ------------ ------------ ------------ ------------ -------- Analysed as: Underlying profit/ (loss) before tax before adjusting for the following items: 273 5,091 1,576 (445) 6,495 Reversal of impairment loss to investment properties - - 142 - 142 Sale of FOP shares - 144 - - 144 Performance - - - - - and related fees Depreciation - (812) - - (812) Provision - - - - - Staff incentive accrual - - - (1,113) (1,113) Realised foreign currency gains/ (losses) - (236) (66) (81) (383) Profit/ (loss) before tax 273 4,187 1,652 (1,639) 4,473 --------------------- ------------ ------------ ------------ ------------ --------
Segment reporting year to 31 March 2017
Fund Group Properties Management Division Division ----------------------- ------------ -------------------------- ------------ ---------- Property Group Group Unallocated TOTAL fund properties fund central management properties overheads ("FOP") ----------------------- ------------ ------------ ------------ ------------ ---------- GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Rental income - 12,165 5,229 - 17,394 Service charge income - 2,464 1,759 - 4,223 Asset management fees 2,046 - - - 2,046 Performance - - - - - fees ----------------------- ------------ ------------ ------------ ------------ ---------- Total revenue 2,046 14,629 6,988 - 23,663 ----------------------- ------------ ------------ ------------ ------------ ---------- Depreciation and amortisation (41) (1,786) (133) - (1,960) ----------------------- ------------ ------------ ------------ ------------ ---------- Operating profit 404 10,192 3,866 (2,848) 11,614 Share of results in associates - 519 - - 519 Distribution income - 60 - - 60 Interest income - 37 48 50 135 Interest expense - (1,535) (1,656) - (3,191) Profit/ (loss) before tax 404 9,273 2,258 (2,798) 9,137 ----------------------- ------------ ------------ ------------ ------------ ---------- Analysed as: Underlying profit/ (loss) before tax before adjusting for the following items: 907 9,993 2,791 (857) 12,834 Impairment loss to investment properties - - (219) - (219) Sale of FOP shares - 552 - - 552 Sale of property - 890 - - 890 Performance - - - - - and related fees Depreciation - (1,662) - - (1,662) Provision - - - (44) (44) Staff incentive accrual (503) (172) (173) (1,922) (2,770) Realised foreign currency gain/ (loss) - (328) (141) 25 (444) Profit/ (loss) before tax 404 9,273 2,258 (2,798) 9,137 ----------------------- ------------ ------------ ------------ ------------ ---------- Assets - Group 792 95,923 67,026 8,394 172,135 Share of net assets of associates - 4,655 - (308) 4,347 Liabilities (189) (79,817) (50,652) (2,396) (133,054) ----------------------- ------------ ------------ ------------ ------------ ---------- Net assets 603 20,761 16,374 5,690 43,428 ----------------------- ------------ ------------ ------------ ------------ ---------- 3. Interest Income/ (Expense) Six months Six months Year ended ended ended 30 Sept 30 Sept 31 March 2017 2016 2017 ----------------------- ----------- ----------- ---------- GBP'000 GBP'000 GBP'000 Interest income - bank deposits 14 18 35 Interest income - other 61 63 100 Total interest income 75 81 135 ----------------------- ----------- ----------- ---------- Six months Six months Year ended ended ended 30 Sept 30 Sept 31 March 2017 2016 2017 ------------------------ ----------- ----------- ---------- GBP'000 GBP'000 GBP'000 Interest expense - property loans (1,049) (982) (2,192) Interest expense - bank and other (87) (100) (160) Finance charges on finance leases (495) (432) (839) ------------------------ ----------- ----------- ---------- Total interest expense (1,631) (1,514) (3,191) ------------------------ ----------- ----------- ---------- 4. Tax Expense
The tax charge is based on a combination of actual current and deferred tax charged at an effective rate that is expected to apply to the profits for the full year.
Six months Six months Year ended ended ended 30 Sept 30 Sept 31 March 2017 2016 2017 -------------- ----------- ----------- ---------- GBP'000 GBP'000 GBP'000 Current tax (687) (575) (1,155) Deferred tax (435) (645) 608 -------------- ----------- ----------- ---------- Total (1,122) (1,220) (547) -------------- ----------- ----------- ---------- 5. Earnings/ NAV Per Share
The basic earnings per ordinary share is calculated on the profit on ordinary activities after taxation and after non-controlling interests on the weighted average number of ordinary shares in issue, during the period.
Figures in the table below have been used in the calculations.
Six months Six months Year ended ended ended 30 Sept 30 Sept 31 March 2017 2016 2017 --------------------------- ------------ ------------ ------------ Basic - pence per share 2.90p 2.46p 6.75p Diluted - pence per share 2.84p 2.40p 6.61p --------------------------- ------------ ------------ ------------ Number Number Number --------------------------- ------------ ------------ ------------ Weighted average number of ordinary shares in issue for basic 115,992,763 115,967,888 115,975,959 Share options 2,700,000 2,700,000 2,700,000 --------------------------- ------------ ------------ ------------ Total for diluted 118,692,763 118,667,888 118,675,959 --------------------------- ------------ ------------ ------------ GBP'000 GBP'000 GBP'000 --------------------------- ------------ ------------ ------------ Basic earnings 3,364 2,849 7,833 --------------------------- ------------ ------------ ------------ Notional interest on share options assumed to be exercised 4 4 8 Diluted earnings 3,368 2,853 7,841 --------------------------- ------------ ------------ ------------ Six months Six months Year ended ended ended 30 Sept 30 Sept 31 March 2017 2016 2017 ---------------------- ----------- ----------- ---------- Net assets per share 35.68p 29.50p 34.84p Adjusted net assets per share 51.25p 45.86p 47.64p ---------------------- ----------- ----------- ----------
The following numbers have been used to calculate both the net assets and adjusted net assets per share.
Number Number Number --------------------------- ------------ ------------ ------------ Number of shares in issue at period end 116,004,464 115,980,040 115,992,699 --------------------------- ------------ ------------ ------------ GBP'000 GBP'000 GBP'000 --------------------------- ------------ ------------ ------------ Net assets excluding non-controlling interest 41,391 34,218 40,413 Adjusted net assets Number Number Number per share --------------------------- ------------ ------------ ------------ Number of shares in issue at period end 116,004,464 115,980,040 115,992,699 Number of share options assumed to be exercised 2,700,000 2,700,000 2,700,000
--------------------------- ------------ ------------ ------------ Total 118,704,464 118,680,040 118,692,699 --------------------------- ------------ ------------ ------------ Adjusted net assets GBP'000 GBP'000 GBP'000 per share --------------------------- ------------ ------------ ------------ Net assets excluding non-controlling interest 41,391 34,218 40,413 Investment properties at fair value net of deferred taxes 13,315 17,350 10,740 Inventories at fair value net of deferred taxes 4,409 2,009 4,128 Other adjustments 1,726 850 1,267 --------------------------- ------------ ------------ ------------ Total 60,841 54,427 56,548 --------------------------- ------------ ------------ ------------ 6. Investment Properties Six months Six months Year ended ended ended 30 Sept 30 Sept 31 March 2017 2016 2017 ------------------------------ ----------- ----------- ---------- GBP'000 GBP'000 GBP'000 ------------------------------ ----------- ----------- ---------- 1 April 128,428 120,718 120,718 Capital expenditure 1,663 176 1,990 Disposals - - (1,711) Depreciation (1,105) (947) (1,891) Fair value adjustment 167 142 (219) Foreign exchange translation 1,739 9,244 9,541 End of period 130,892 129,333 128,428 ------------------------------ ----------- ----------- ----------
Investment properties owned by the Group, and indirectly via FOP are stated at cost less depreciation and accumulated impairment losses.
7. Interest in Associates and Other Financial Assets Six months Six months Year ended ended ended 30 Sept 30 Sept 31 March 2017 2016 2017 ----------------------------- ----------- ----------- ---------- a) Associated undertakings GBP'000 GBP'000 GBP'000 Cost of investment at beginning of period 4,347 3,044 3,044 Additions - - 1,119 Disposals (612) (153) (239) Share of associates profit after tax 740 271 519 Dividends received - (64) (96) Cost of investment at end of period 4,475 3,098 4,347 ----------------------------- ----------- ----------- ---------- Investments in associated undertakings ----------------------------- ----------- ----------- ---------- 5(th) Property Trading Ltd 972 868 916 Regional Property Trading Ltd 218 185 192 Fprop Romanian Supermarkets Ltd 649 766 750 Fprop Galeria Corso Ltd 1,784 1,587 1,678 Fprop Krakow Ltd 1,160 - 1,119 ----------------------------- ----------- ----------- ---------- 4,783 3,406 4,655 Less: Group share of profit after tax withheld on sale of property to an associate in 2007 (308) (308) (308) ----------------------------- ----------- ----------- ---------- Cost of investment at end of period 4,475 3,098 4,347 ----------------------------- ----------- ----------- ---------- The withheld profit figure of GBP308,000 represents the removal of the percentage of intercompany profit resulting from the sale of the property in 2007 to 5(th) Property Trading Ltd (an associate). The figure will reduce when there is a reduction in First Property Group's stake in 5(th) Property Trading Ltd. ------------------------------------------------------------------- b) Other financial assets and investments ----------------------------- ----------- ----------- ---------- Cost of investment at beginning of period 897 914 914 Additions 2,361 4 12 Disposal - - - (Decrease)/increase in fair value during the period - - (29) ----------------------------- ----------- ----------- ---------- Cost of investment at end of period 3,258 918 897 ----------------------------- ----------- ----------- ---------- 8. Trade and Other Receivables Six months Six months Year ended ended ended 30 Sept 30 Sept 31 March 2017 2016 2017 ---------------------------- ----------- ----------- ---------- GBP'000 GBP'000 GBP'000 Current assets Trade receivables 2,514 2,392 2,003 Less provision for impairment of receivables (490) (634) (626) ---------------------------- ----------- ----------- ---------- Trade receivables net 2,024 1,758 1,377 Other receivables 2,426 3,159 2,435 Prepayments and accrued income 858 390 1,078 5,308 5,307 4,890 ---------------------------- ----------- ----------- ---------- Non-current assets 1,905 139 2,108 ---------------------------- ----------- ----------- ----------
Other receivables include a balance of GBP1.88 million relating to the deferred consideration from the sale of an investment property located in Romania, which is receivable after one year. This has been discounted to reflect its current value.
9. Trade and Other Payables Six months Six months Year ended ended ended 30 Sept 30 Sept 31 March 2017 2016 2017 -------------------- ----------- ----------- ---------- GBP'000 GBP'000 GBP'000 Trade payables 3,457 2,787 2,941 Other taxation and social security 891 673 799 Other payables and accruals 2,272 4,214 5,275 Deferred income 663 11 833 7,283 7,685 9,848 -------------------- ----------- ----------- ---------- 10. Financial Liabilities Six months Six months Year ended ended ended 30 Sept 30 Sept 31 March 2017 2016 2017 ---------------------------- ----------- ----------- ---------- GBP'000 GBP'000 GBP'000 a) Current liabilities Loans repayable by subsidiary (FOP) to third party shareholders 2,121 1,918 2,148 Bank loans 3,470 3,340 3,180 Finance leases 3,270 3,125 14,313 8,861 8,383 19,641 ---------------------------- ----------- ----------- ---------- b) Non-current liabilities ---------------------------- ----------- ----------- ---------- Bank loans 63,757 66,022 63,850 Finance leases 47,347 49,497 36,193 ---------------------------- ----------- ----------- ---------- 111,104 115,519 100,043 ---------------------------- ----------- ----------- ---------- c) Total obligations under financial liabilities Repayable within one year 8,861 8,383 19,642 Repayable within one and five years 78,099 99,041 65,725 Repayable after five years 33,005 16,478 34,317 ---------------------------- ----------- ----------- ---------- 119,965 123,902 119,684 ---------------------------- ----------- ----------- ----------
Loans repayable by Fprop Opportunities plc (FOP) to third party shareholders are unsecured and repayable on demand.
Eight bank loans and three finance leases (all denominated in Euros) totalling GBP117.84 million (31 March 2017: GBP117.54 million) included within financial liabilities are secured against investment properties owned by the Group and Fprop Opportunities plc (FOP), and one property owned by the Group shown under inventories. These bank loans and finance leases are otherwise non-recourse to the Group's assets.
The interim results are being circulated to all shareholders and can be downloaded from the company's web site (www.fprop.com). Further copies can be obtained from the registered office at 32 St James's Street, London SW1A 1HD.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BLLLLDFFZFBE
(END) Dow Jones Newswires
November 23, 2017 02:00 ET (07:00 GMT)
1 Year First Property Chart |
1 Month First Property Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions