Invesco Prop Inc Annual Financial Report -6-

at fair value in accordance with the relevant IFRS. 
 
The properties classified as held for sale are those that were being marketed 
for sale at the period end. The Directors assessed the sale of these properties 
as highly probable as at the reporting date. As the result the properties were 
classified as assets held for sale and valued at fair value or net realisable 
value or net realisable value, being the expected selling price, as per offers 
received. 
 
Valuation of derivatives 
 
All derivatives are measured at fair value. Fair values of the Group's 
derivatives are determined by reference to observable market prices and so 
valued using quoted prices obtained from financial institutions. The pricing 
methodology does not entail material subjectivity because the methodologies 
utilised do not include significant judgement and unobservable inputs but 
actively quoted prices. The ultimate realisable value and fair value at any 
period end date will fluctuate depending upon market movements principally in 
interest rates and foreign exchange rates. The ultimate realisable value at the 
value date of the derivative contracts may materially differ from the fair 
value at the period end. 
 
Details of the fair value estimation for derivatives have been provided in 
notes 1(i) and 23 to these financial statements. 
 
(c) Principal Activity 
 
The principal activity of the Company and its subsidiaries (together the 
`Group') was investment in investment properties and is now the realisation of 
the investments held. 
 
(d) Basis of Consolidation 
 
The consolidated financial statements include the financial statements of the 
Company and its subsidiary undertakings made up to Statement of Financial 
Position (SoFP) date. 
 
Subsidiaries are consolidated from the date on which control is transferred to 
the Group and cease to be consolidated from the date on which control is 
transferred out of the Group. 
 
(e) Segmental Reporting 
 
A business segment is a group of assets and operations engaged in providing 
products or services that are subject to risks and returns that are different 
from those of other business segments. A geographical segment is engaged in 
providing products or services within a particular economic environment that is 
subject to risks and returns which are different from those segments operating 
in other economic environments. 
 
2. Interest receivable and other income 
 
                                                                YEAR       YEAR 
                                                               ENDED      ENDED 
                                                            31 MARCH   31 MARCH 
                                                                2014       2013 
                                                               GBP'000      GBP'000 
 
Interest receivable                                                3          5 
 
Other income                                                      13        702 
 
                                                                  16        707 
 
3. Profit/(loss) before finance costs and tax 
 
Profit/(loss) before finance costs and tax is stated after charging: 
 
                                      YEAR ENDED               YEAR ENDED 
                                     31 MARCH 2014           31 MARCH 2013 
 
                                REVENUE  CAPITAL   TOTAL  REVENUE CAPITAL TOTAL 
                                  GBP'000    GBP'000   GBP'000    GBP'000   GBP'000 GBP'000 
 
Directors' fees                     123        -     123      125       -   125 
 
Fees payable to the Company's        92        -      92       92       -    92 
Auditor for the audit of the 
financial statements - Current 
period 
 
Fees payable to the Company's       116        -     116      111       -   111 
Auditor for the audit of the 
Company's subsidiaries 
pursuant to legislation - 
Current period 
 
Total audit fees - Current          208        -     208      203       -   203 
period 
 
Other fees payable to the 
Company's Auditor: 
 
  Tax services                       80        -      80       67       -    67 
 
  Corporate finance services          -        -       -       18       -    18 
 
Total non-audit fees                 80        -      80       85       -    85 
 
4. Stated capital 
 
                                                                   2014    2013 
                                                                  GBP'000   GBP'000 
 
Authorised: 
 
153,000,000 ordinary shares of no par value                           -       - 
 
Allotted, called-up and fully paid: 
 
153,000,000 ordinary shares of no par value                     101,368 101,368 
 
5. Net asset value per ordinary share 
 
(a) The net asset value per ordinary share and the net asset values 
attributable at the year end calculated in accordance with the Articles of 
Association were as follows: 
 
                                          2014                  2013 
 
                                 NET ASSET   NET ASSETS  NET ASSET   NET ASSETS 
                                     VALUE ATTRIBUTABLE      VALUE ATTRIBUTABLE 
                                                  GBP'000                   GBP'000 
 
Ordinary shares                    (24.6)p     (37,674)    (22.9)p     (34,988) 
 
Net asset value per ordinary share is based on net assets at the year end and 
153,000,000 ordinary shares, being the number of ordinary shares in issue at 
the year end. 
 
(b) Reconciliation of consolidated NAV per share to adjusted NAV: 
 
                                                2014               2013 
 
                                             PENCE              PENCE 
                                         PER SHARE    GBP'000 PER SHARE    GBP'000 
 
Consolidated NAV per accounts               (24.6) (37,674)    (22.9) (34,988) 
 
Adjustments: 
 
  Deferred tax liability                       4.2    6,409       8.3   12,761 
 
  Interest Rate Swaps                          0.9    1,474       3.1    4,670 
 
Adjusted NAV                               (19.5)p (29,791)   (11.5)p (17,557) 
 
The adjusted NAV is per the European Public Real Estate Association (`EPRA') 
measure, published in August 2011. The EPRA NAV per share excludes the fair 
value adjustments for debt and interest rate derivatives, deferred taxation on 
revaluations, capital allowances and goodwill. 
 
6. Related party transactions 
 
No director has an interest in any transactions which are or were unusual in 
their nature or significant to the nature of the Group. The Directors of the 
Group received fees for their services. Further details are provided in the 
Report of the Directors. 
 
On 31 March 2008, the Company entered into an agreement with Invesco Limited 
(`Invesco'), the parent company of the Investment Manager, under which Invesco 
agreed to provide a credit facility of up to GBP10 million at 8% per annum. The 
facility agreement was amended on 31 March 2011, extending the termination date 
to 28 September 2014. No further interest will accrue on amounts outstanding 
and no further draw downs are available. At the year end GBP2 million had been 
drawn down and GBP0.3 million of interest was accrued (2013: GBP2 million drawn 
down and GBP0.3 million accrued). 
 
On 17 June 2013 the Company's Luxembourg subsidiaries entered into agreements 
with IREM, an Invesco group company, for the provision of administration and 
company secretarial services. Fees payable to IREM amounted in aggregate to up 
to GBP165,326 (plus VAT if applicable) to be adjusted annually by reference to 
inflation. 
 
As disclosed in the Report of the Directors, Mr. Angus Spencer-Nairn retired on 
31 December 2009 as the Senior Partner of Rawlinson & Hunter Jersey, which owns 
R&H Fund Services (Jersey) Limited (`R&H'), the Company Secretary and 
Administrator appointed on 30 March 2007. Mr. Spencer-Nairn retired as a 
director of R&H on 1 January 2010. R&H were paid fees of GBP65,000 (2013: GBP 
60,000) and out of pocket expenses. 
 
7. Subsequent Events 
 
Three of the assets classified as held for sale were sold post financial year 
end providing net proceeds of GBP13.9 million which was applied to debt 
reduction, and a further asset, Le Verdun has exchanged contracts to complete 
in December 2014 for q5.0 million. The Company also repaid GBP7.5 million and GBP12 
million of bank borrowings from proceeds of sales completed prior to the 
reporting date. 
 
The cross currency swaps have been settled subsequent to the year end. The 
liability of GBP7.761 million owed on closing has been transferred, with the 
agreement of the lending bank, to the loan balance. In addition the remaining 
sterling interest rate swaps expired in September 2014. 
 
On 14 October 2014 the lending bank granted a three-month extension to the 
facility beyond 28 September 2014, and has agreed with the Company proposals 
for: (a) the sale of the remaining property assets by 31 December 2014; (b) a 
creditor standstill during the sales process; (c) provision to be made for 
trade and other unsecured liabilities, actual and expected, to be met; and (d) 
loan amounts outstanding following such provision and the repayment of the net 
sales proceeds to be treated as no longer owed by the Group. This would allow 
the Company and its subsidiaries to wind up solvently. 
 
. 
 
The audited Annual Financial Report will be posted to shareholders shortly. 
Copies may be obtained during normal business hours from the Company's 
Registered Office, Ordnance House, 31 Pier Road, St Helier, Jersey, JE4 8PW and 
will be available shortly from Invesco Perpetual on the following website: 
www.invescoperpetual.co.uk/investmenttrusts 
 
The Annual General Meeting will be held on 24 February 2015 at 12 noon at 
Ordnance House, 31 Pier Road, St Helier, Jersey, JE4 8PW. 
 
By Order of the Board 
 
R&H Fund Services (Jersey) Limited 
 
Company Secretary 
 
18 July 2013 
 
Enquiries to: 
 
Invesco Asset Management Limited 
 
Angus Pottinger 
020 3753 1000 
 
Rory Morrison, 
020 7543 3581 
 
 
 
END