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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Nordic Land | LSE:NLD | London | Ordinary Share | JE00B1Z91C77 | 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% | 10.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMNLD
RNS Number : 7541Y
Nordic Land PLC
31 December 2010
Nordic Land plc - In Liquidation
Interim Report for the period from 1 April 2010 to 30 September 2010
The board of directors (the "Board") of Nordic Land plc - In Liquidation ("Nordic Land" or the "Company") is pleased to present the interim results of the Company and its subsidiaries (the "Group") for the 6 month period ended 30 September 2010.
For further information please contact:
Nordic Land plc
Ray Horney, Chairman +44 20 7367 8888
(c/o Bankside Consultants)
SP Angel Corporate Finance LLP
Robert Wooldridge / Tercel Moore +44 20 7647 9650
Matrix Corporate Capital LLP
Stephen Mischler +44 20 3206 7203
Bankside Consultants
Simon Rothschild +44 20 7367 8888
Chairman's statement
Operating review
The results for the six months ended 30 September 2010 cover the last full period in which the Group owned its portfolio of properties in Sweden. Subsequent to the period end, all of the properties have been sold and the Group has commenced an orderly winding up of its operations.
Sale of properties and winding up of the Group
At a general meeting of the shareholders held on 7 October 2010, shareholders approved the sale of the Group's property portfolio on terms as set out in a circular to shareholders dated 17 September 2010.
The sale of the Group's two largest properties, Terminalen 1 in Helsingborg and Lackeraren 3 in Borlange, were completed on 15 October 2010 at gross property values of SEK 490 million (GBP46.0 million) and SEK 148 million (GBP13.9 million) respectively. Out of the gross consideration, SEK 15 million (GBP1.4 million) from the sale of Terminalen and SEK 2.5 million (GBP0.2 million) from the sale of Borlange have been placed in escrow to cover potential warranty claims that may be brought by the purchasers of each property. Provided that no such claims are brought (and that the mortgage certificates for the Sicklaon property are delivered to its buyer - see below), these escrow amounts will be released to the Group on 14 October 2011 and 14 February 2012 respectively.
The sale of the third property ("Sickla"), in Sicklaon, had to be renegotiated because the original lender, Lehman Brothers International (Europe) (In Administration), in its capacity as security agent for the bank borrowings and as holder of the mortgage certificates for the property, was not able to locate these mortgage certificates. Without the mortgage certificates the sale of Sickla could not be completed as planned. Under the renegotiated terms, the property was sold for the same gross consideration of SEK 35 million (GBP3.3 million), but out of this SEK 12 million (GBP1.1 million) has been retained in a pledged account until the replacement mortgage certificates can be provided to the purchaser. The purchaser has also taken a second charge on the Terminalen and Borlange escrow amounts. Replacement mortgage certificates are expected to be obtained in approximately 12 months. The sale of Sickla completed on 25 November 2010.
Following the sale of the properties and the repayment of the Group's bank borrowings, the operations of the Group effectively ceased.
Following approval at a shareholder meeting on 6 December 2010, the Group commenced a summary winding up of its operations. The winding up of the Company is being administered by the Board under applicable Jersey law.
Results of operations
As a consequence of the decision to sell the subsidiaries that own the portfolio, the properties and associated assets and liabilities are shown in the Group statement of financial position as non-current assets and liabilities classified as held for sale. The operating results arising from the properties are classified as discontinued activities.
The Group's continuing activities represent the administrative functions not directly associated with the property operations. In the 6 months ended 30 September 2010, these administrative expenses were GBP0.4 million (30 September 2009: 0.3 million) and the loss on continuing operations was GBP0.4 million (30 September 2009: 0.3 million).
For the discontinued property operations, net rental income for the 6 months ended 30 September 2010 was GBP1.9 million (30 September 2009: GBP1.9 million), administrative expenses were GBP0.4 million (30 September 2009: GBP0.4 million) and costs associated with the sale of the properties were GBP0.9 million (30 September 2009: nil). There was a gain of GBP0.3 million (30 September 2009: loss of GBP4.3 million) relating to the revaluation of the investment properties to their fair values which were determined on the basis of the ultimate sale prices of each property.
Financial expenses of the discontinued operations were GBP3.7 million (30 September 2009: GBP1.4 million) including a charge of GBP2.2 million (30 September 2009: nil) for the increase in value of the bank borrowings arising from the break costs that became payable on early redemption of the borrowings.
The loss after tax for the discontinued operations was GBP2.8 million (30 September 2009: loss of GBP3.3 million).
The total loss after tax for the period was GBP3.2 million (30 September 2009: GBP3.6 million) equivalent to 16.1 pence per share (30 September 2009: 18.0 pence).
The net asset value per share of the Group as at 30 September 2010 was 30.8 pence compared to 69.7 pence as at 30 September 2009.
Cash distributions
No dividend is proposed for the period ended 30 September 2010.
The free cash arising from the sale of the property portfolio, after providing for a proportion of the expected costs of winding up the Group will be distributed to shareholders as soon as the completion accounts for the subsidiaries that were sold have been finalised. This is expected to be in January 2011. The initial cash distribution is expected to be approximately 10 pence per share. Further details of this will be announced in due course.
As and when the respective escrow amounts associated with the sales of the properties have become available to the Group, further cash distributions will be made of the escrow amounts released, less a retention for all the remaining expected costs of the winding up. These further distributions are expected to be approximately 12 pence per share in aggregate and are expected to be made by the end of the first quarter of 2012.
Current activities
On completion of the sales and commencement of the winding up, the Board has taken measures to reduce as much as possible the ongoing operational costs of the Group. The management agreement with Lathe Investments (Nordic) LLP and the agreements with other service providers in connection with the properties have been terminated and administrative costs have been greatly reduced. The Board, which has responsibility for the winding up of the Group, has agreed to a 50% reduction in its fees bringing them to a level of GBP30,000 per annum in aggregate for all four directors.
The Board has determined that in the short term, it remains in shareholders' best interests to retain the admission to listing on AIM of the Company's shares so as to provide continued liquidity for shareholders as well as potential strategic benefits. The Board will seek the views of shareholders and this position will be reviewed during the first quarter of 2011.
The Board and shareholders have had to face some difficult issues during the last year, but I believe that the decisions reached and actions taken have been in the best interests of the Company's shareholders.
Ray Horney
Chairman
30 December 2010
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2010
Six months Six months Year ended to 30 September to 30 September 31 March 2010 2009 2010 (Unaudited) (Unaudited) (Audited) Note GBP000 GBP000 GBP000 Continuing Operations Administrative expenses (359) (318) (579) ----------------- ----------------- ----------- Operating loss (359) (318) (579) Financial income 2 5 8 ----------------- ----------------- ----------- Loss before income tax (357) (313) (571) Income tax 5 (3) (5) (11) ----------------- ----------------- ----------- Loss for the period from continuing operations (360) (318) (582) ----------------- ----------------- ----------- Discontinued operations 6 Net rental income 1,873 1,880 3,656 Administrative expenses (350) (352) (683) Disposal costs (935) - - Profit /(loss) on revaluation of investment properties 296 (4,308) (9,252) ----------------- ----------------- ----------- Operating profit /(loss) 884 (2,780) (6,279) Financial expenses 7 (3,727) (1,446) (2,963) ----------------- ----------------- ----------- Loss before income tax (2,843) (4,226) (9,242) Income tax 5 - 967 1,425 ----------------- ----------------- ----------- Loss for the period from discontinued operations (2,843) (3,259) (7,817) ----------------- ----------------- ----------- Total loss for the period attributable to equity holders (3,203) (3,577) (8,399) Other comprehensive income Foreign currency translation differences 198 738 838 ----------------- ----------------- ----------- Total other comprehensive income for the period 198 738 838 ----------------- ----------------- ----------- Total comprehensive loss for the period (3,005) (2,839) (7,561) ----------------- ----------------- ----------- Earnings per share - basic 8 (16.1)p (18.0)p (42.3)p
The notes form part of these condensed consolidated interim financial statements.
Condensed Consolidated Statement of Financial Position as at 30 September 2010
30 Sept 2010 30 Sept 2009 31 Mar 2010 (Unaudited) (Unaudited) (Audited) Note GBP000 GBP000 GBP000 ASSETS Non-current assets Investment properties 9 - 64,568 61,253 ------------- ------------- ------------ Current assets Trade and other receivables 10 19 225 393 Cash and cash equivalents 11 2,611 5,638 4,767 ------------- ------------- ------------ 2,630 5,863 5,160 ------------- ------------- ------------ Non-current assets classified as held for sale 12 65,309 - - ------------- ------------- ------------ Total assets 67,939 70,431 66,413 ------------- ------------- ------------ LIABILITIES Current liabilities Borrowings 13 58,546 - - Trade and other payables 14 233 2,498 2,323 Income tax provisions 14 22 18 ------------- ------------- ------------ 58,793 2,520 2,341 ------------- ------------- ------------ Non-current liabilities Borrowings 13 - 53,616 54,950 Deferred tax liability 15 - 452 - ------------- ------------- ------------ - 54,068 54,950 ------------- ------------- ------------ Liabilities directly associated with non-current assets classified as held for sale 16 3,029 - - ------------- ------------- ------------ Total liabilities 61,822 56,588 57,291 ------------- ------------- ------------ Net assets 6,117 13,843 9,122 ------------- ------------- ------------ EQUITY Ordinary share capital 199 199 199 Share premium 17,523 17,523 17,523 Foreign currency translation reserve 2,895 2,597 2,697 Retained earnings (14,500) (6,476) (11,297) ------------- ------------- ------------ Total shareholders' equity 6,117 13,843 9,122 ------------- ------------- ------------ Net asset value per 17 30.8 p 69.7 p 45.9 p share - basic
These condensed consolidated interim financial statements were approved by the Board of Directors on 30 December 2010 and were signed on its behalf by:
Richard Thomas Keith Jenkins Director Director
The notes form part of these condensed consolidated interim financial statements.
Condensed Consolidated Statement of Changes in Equity for the six months ended 30 September 2010
Ordinary share Share Translation Retained Total capital premium reserve earnings equity GBP000 GBP000 GBP000 GBP000 GBP000 Balance at 1 April 2009 199 17,523 1,859 (2,936) 16,645 ------------- -------- ------------ --------- -------- Total Comprehensive income/(loss) for the period Loss for the period - - - (3,577) (3,577) Other Comprehensive income/(loss) for the period Foreign exchange differences - - 738 - 738 ------------- -------- ------------ --------- -------- Total comprehensive income/(loss)for the period - - 738 (3,577) (2,839) ------------- -------- ------------ --------- -------- Transactions with owners, recorded directly in equity Share-based payments - - - 37 37 ------------- -------- ------------ --------- -------- Total transactions with owners - - - 37 37 ------------- -------- ------------ --------- -------- Balance at 30 September 2009 199 17,523 2,597 (6,476) 13,843 ------------- -------- ------------ --------- -------- Total Comprehensive income / (loss) for the period Loss for the period - - - (4,822) (4,822) Other Comprehensive income for the period Foreign exchange differences - - 100 - 100 ------------- -------- ------------ --------- -------- Total comprehensive income/(loss)for the period - - 100 (4,822) (4,722) ------------- -------- ------------ --------- -------- Transactions with owners, recorded directly in equity Share-based payments - - - 1 1 ------------- -------- ------------ --------- -------- Total transactions with owners - - - 1 1 ------------- -------- ------------ --------- -------- Balance at 31 March 2010 199 17,523 2,697 (11,297) 9,122 ------------- -------- ------------ --------- -------- Total Comprehensive income/(loss) for the period Loss for the period - - - (3,203) (3,203) Other Comprehensive income for the period Foreign exchange differences - - 198 - 198 ------------- -------- ------------ --------- -------- Total comprehensive income/(loss)for the period - - 198 (3,203) (3,005) ------------- -------- ------------ --------- -------- Balance at 30 September 2010 199 17,523 2,895 (14,500) 6,117 ------------- -------- ------------ --------- --------
The notes form part of these condensed consolidated interim financial statements.
Condensed Consolidated Statement of Cash Flows for the six months ended 30 September 2010
Six months to Six months Year ended 30 September to 30 September 31 March 2010 2009 2010 (Unaudited) (Unaudited) (Audited) Note GBP000 GBP000 GBP000 Cash flows from operating activities Loss for the period (3,203) (3,577) (8,399) Interest receivable (2) (5) (8) Interest payable and other finance costs 3,727 1,446 2,963 Income tax 3 (962) (1,414) Adjustments for non-cash items: (Profit)/Loss on revaluation of investment properties (296) 4,308 9,252 Share-based payments - 37 38 ---------------- ----------------- ----------- Operating profit before changes in working capital 229 1,247 2,432 Other movements arising from operations: (Increase) / decrease in trade and other receivables (12) 152 (15) Increase in trade and other payables 929 296 116 Tax paid - (3) (12) ---------------- ----------------- ----------- Net cash generated from operations 1,146 1,692 2,521 Interest received 2 5 6 Interest paid (1,453) (1,424) (2,845) ---------------- ----------------- ----------- Net cash flows from/(used in) operating activities (305) 273 (318) ---------------- ----------------- ----------- Cash flows used in investing activities Acquisition and development of investment properties (77) (1,137) (1,474) ---------------- ----------------- ----------- Cash flows used in investing activities (77) (1,137) (1,474) ---------------- ----------------- ----------- Cash flows from financing activities Net drawdown of borrowings - 894 858 ---------------- ----------------- ----------- Cash flows from financing activities - 894 858 ---------------- ----------------- ----------- Net increase/(decrease) in cash and cash equivalents (382) 30 (934) Opening cash and cash equivalents 4,767 5,336 5,336 Exchange gains/(losses) (12) 272 365 ---------------- ----------------- ----------- Closing cash and cash equivalents 11 4,373 5,638 4,767 ---------------- ----------------- -----------
The notes form part of these condensed consolidated interim financial statements.
Notes to the condensed consolidated interim financial statements
Note 1 General Information
Nordic Land plc - In Liquidation (the "Company") is a Jersey company incorporated on 3 April 2007. As at 30 September 2010 the Group owned three investment properties in Sweden.
After the period end, following approval at a shareholder meeting on 7 October 2010, the Group sold its entire property portfolio, repaid its bank borrowings and effectively ceased operations (see note 19). On 6 December 2010, following approval by shareholders at a subsequent general meeting, the directors commenced a summary winding up of the Company and its remaining subsidiaries. The directors intend to distribute the net cash resources of the Company, after meeting the costs of the disposal and the costs of the winding up, to shareholders.
The condensed consolidated interim financial statements for the Company and its subsidiaries (together referred to as the "Group") have been prepared as at 30 September 2010 and for the six month period then ended. The condensed consolidated interim financial statements, which do not represent statutory accounts, have not been audited.
The unaudited condensed consolidated interim financial statements were authorised for issuance by the board of directors of the Company on 30 December 2010.
Note 2 Basis of preparation
These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of
the Group as at and for the year ended 31 March 2010.
The preparation of condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements as at and for the year ended 31 March 2010 together with judgements associated with the accounting for the Group's discontinued activities and its assets and liabilities held for sale (in accordance with IFRS 5 - Non-current assets held for sale and discontinued operations). Information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the condensed consolidated interim financial statements is included in the following notes:
Note 6 - Discontinued operations
Note 9 - Investment properties
Note 12 - Non-current assets classified as held for sale
Note 13 - Borrowings
Note 16 - Liabilities directly associated with non-current assets classified as held for sale
The condensed consolidated interim financial statements have been prepared on the historical cost basis modified for the revaluation of investment properties and derivative financial instruments which are both measured at fair value.
The consolidated financial statements have been prepared on a going concern basis which assumes that the Group will be able to meet its liabilities as they fall due. The Group's working capital forecasts show that the Group has sufficient cash resources to meet its liabilities as they fall due over the next 12 months and until the winding up has been completed.
Note 3 Significant Accounting Policies
The interim financial statements have been prepared following the same accounting policies as adopted in the most recent set of annual financial statements for the year ended 31 March 2010. Where accounting policies differ from policies previously adopted, they are stated and explained below.
The Company has followed the requirements of IFRS 5 - Non-current assets held for sale and discontinued operations. As the decision to sell the properties had been taken prior to the period end, the results of its property ownership have been treated as discontinued activities and the properties and associated assets and liabilities have been classified as assets and liabilities held for sale. The investment properties have been revalued to their fair value which has been determined on the basis of the agreed sale prices at which the properties were sold.
The bank borrowings have been revalued at the period end to include the break costs which became payable on early redemption of the loans which took place when the properties were sold.
Basis of consolidation
The condensed consolidated interim financial statements incorporate the net assets and liabilities of the Group at the statement of financial position date and its results for the period then ended. Results of subsidiaries acquired or disposed during a period are included from the effective date of acquisition or up to the effective date of disposal as appropriate. The results of subsidiaries are included in the condensed consolidated interim financial statements from the date that control commences up to the date that control ceases. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
A change in the ownership interest of a subsidiary, without a change in control, is accounted for as an equity transaction.
Functional and presentational currency
Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the 'functional currency'). The Group's condensed consolidated interim financial statements are presented in sterling, which
is also the parent company's functional and presentational currency.
Note 4 Operating segments
During the period the Group operated in one business segment, being property investment and development in the Nordic region, and as such no further segmental information is required. Following the decision to sell these properties, these activities have been treated as discontinued operations.
The Group's continuing operations relate to the administrative costs associated with the non-property owning companies in the Group.
Note 5 Income tax
Six months Six months Year ended to 30 September to 30 September 31 March 2010 2009 2010 (Unaudited) (Unaudited) (Audited) GBP000 GBP000 GBP000 Continuing operations Current income tax charge (3) (5) (11) ----------------- ----------------- ----------- Tax charge for continuing operations (3) (5) (11) ----------------- ----------------- ----------- Discontinued operations Deferred taxation credit - 967 1,425 Tax credit for discontinued operations - 967 1,425 ----------------- ----------------- ----------- Total tax (charge) / credit (3) 962 1,414 ----------------- ----------------- -----------
Note 6 Discontinued operations
The income and expenses arising from the ownership of the properties have been shown as discontinued operations as the decision to sell the properties had been taken prior to the period end. The properties were sold in October 2010 and November 2010 - see note 19.
The cash flows arising from the discontinued operations were:
Six months Six months Year ended to 30 September to 30 September 31 March 2010 2009 2010 (Unaudited) (Unaudited) (Audited) GBP000 GBP000 GBP000 Net cash flows (used in) / from operating activities (31) 461 182 Cash flows used in investing activities (77) (1,137) (1,474) Cash flows from financing activities - 894 858
Note 7 Financial expenses
Financial expenses represent interest and other financial costs arising on the Group's bank borrowings and are part of the Group's discontinued operations.
Six months Six months Year ended to 30 September to 30 September 31 March 2010 2009 2010 (Unaudited) (Unaudited) (Audited) GBP000 GBP000 GBP000 Interest on bank loans 1,497 1,391 2,850 Other finance costs 31 55 113 Break fees payable on early redemption of bank loans 2,199 - - ----------------- ----------------- ----------- Interest payable and other finance costs 3,727 1,446 2,963 ----------------- ----------------- -----------
Note 8 Earnings per share
The loss per share has been calculated by dividing the loss for the period attributable to equity shareholders by the weighted average number of shares in issue during the period of 19,859,561 (30 September 2009 and 31 March 2010: 19,859,561).
Basic and diluted earnings per share are the same, as the issued share options are currently anti-dilutive.
Note 9 Investment properties
As at 30 September As at 30 September As at 31 March 2010 2009 2010 (Unaudited) (Unaudited) (Audited) GBP000 GBP000 GBP000 Opening balance 61,253 64,203 64,203 Capital expenditure on properties 77 1,137 1,474 Foreign exchange gains 1,525 3,536 4,828 Gain/(Loss) on revaluation 296 (4,308) (9,252) ------------------- ------------------- --------------- 63,151 64,568 61,253 Classified as held for sale (note 12) (63,151) - - ------------------- ------------------- --------------- Closing balance - 64,568 61,253 ------------------- ------------------- ---------------
The fair value of investment properties as at 30 September 2010 has been determined on the gross property prices achieved on the sales of the properties. These sale agreements were signed in mid-September 2010, conditional on shareholder approval, and the disposals were completed, following approval from shareholders, on 15 October 2010 for two properties and 25 November 2010 for the final property.
Note 10 Trade and other receivables
As at 30 September As at 30 September As at 31 March 2010 2009 2010 (Unaudited) (Unaudited) (Audited) GBP000 GBP000 GBP000 Rental debtors - 25 255 Prepayments and accrued income 19 93 104 Other debtors - 107 34 ------------------- ------------------- --------------- 19 225 393 ------------------- ------------------- ---------------
As at 30 September 2010 trade and other receivables relating to discontinued operations have been included within non-current assets classified as held for sale (note 12).
The directors consider that the carrying amount of trade and other receivables approximate to their fair value.
Note 11 Cash and cash equivalents
Cash and cash equivalents comprise cash held by the Group and short-term deposits with an original maturity of three months or less. The carrying value of these assets equals their fair value.
As at 30 September As at 30 September As at 31 March 2010 2009 2010 (Unaudited) (Unaudited) (Audited) GBP000 GBP000 GBP000 Continued operations Cash and cash equivalents 2,611 5,638 4,767 ------------------- ------------------- --------------- Discontinued operations Cash and cash equivalents held for sale (note 12) 1,762 - - ------------------- ------------------- --------------- Total cash and cash equivalents 4,373 5,638 4,767 ------------------- ------------------- ---------------
Note 12 Non-current assets classified as held for sale
As at 30 September 2010, the Group's investment properties and associated assets held by the Group's property owning subsidiaries which have been sold subsequent to the period end have been classified as non-current assets held for sale.
As at 30 September 2010 (unaudited) GBP000 Investment properties (note 9) 63,151 Cash balances 1,762 Rental debtors 316 Prepayments and accrued income 80 ------------------- 65,309 -------------------
The cash balances classified as non-current assets held for sale do not include cash of GBP1,800,000 held in a property owning subsidiary as at 30 September 2010 and which was transferred to another Group company prior to the disposal of the property owning subsidiary.
Note 13 Borrowings
The bank loans as at 30 September 2010 represent borrowings of SEK 602.7 million (30 September 2009 and 31 March 2010: SEK 602.7 million) together with break costs of SEK 24.7 million or GBP2,199,000 (30 September 2009 and 31 March 2010: nil). The loans were repaid in full, together with the break costs, on 15 October 2010 when the disposals of the two largest properties were completed and have been shown as current liabilities as at 30 September 2010.
As at 30 As at 30 September September As at 31 2010 2009 March 2010 (Unaudited) (Unaudited) (Audited) GBP000 GBP000 GBP000 Amounts falling due within 12 months: Bank loans 56,554 - - Break costs payable on early redemption 2,199 - - Unamortised borrowing costs (207) - - ------------- ------------ ------------ 58,546 - - ------------- ------------ ------------ Amounts falling due after more than one year: Bank loans - 53,895 55,178 Unamortised borrowing costs - (279) (228) ------------- ------------ ------------ - 53,616 54,950 ---------------------------------------------- ------------ ------------
As at 30 September 2010 the directors estimate that there is no difference between the fair value and the book value of the loans.
The weighted-average interest rate on loans of SEK 592.7 million is 5.45% per annum. The interest rates on these loans are fixed. The interest rate on the loan of SEK 10 million is variable.
The bank loans are secured on the shares of the borrowing subsidiaries and their investment properties. There are no loan to value covenants.
Note 14 Trade and other payables
As at 30 September As at 30 September As at 31 March 2010 2009 2010 (Unaudited) (Unaudited) (Audited) GBP000 GBP000 GBP000 Accounts payable - trade - 342 336 Deferred income - 1,128 1,081 Accruals 233 922 906 Other creditors - 106 - ------------------- ------------------- --------------- 233 2,498 2,323 ------------------- ------------------- ---------------
As at 30 September 2010 trade and other payables associated with discontinued operations have been included within liabilities associated with non-current assets classified as held for sale (note 16).
The Directors consider that the carrying amount of trade and other payables approximate to their fair value.
Note 15 Deferred tax liability
As at 30 September As at 30 As at 31 March 2010 September 2009 2010 (Unaudited) (Unaudited) (Audited) GBP000 GBP000 GBP000 Opening balance - 1,403 1,403 Net credit for period - (967) (1,425) Foreign exchange differences - 16 22 ------------------- ------------------ --------------- Closing balance - 452 - ------------------- ------------------ ---------------
Note 16 Liabilities directly associated with non-current assets classified as held for sale
Liabilities associated with assets held for sale represent trade creditors, accruals and deferred income as at 30 September 2010 in the property owning subsidiaries which have been sold subsequent to the period end.
As at 30 September 2010 (Unaudited) GBP000 Accounts payable - trade 419 Other current liabilities 46 Deferred income (including rent in advance) 1,146 Accrued expenses 1,418 3,029
Note 17 Net asset value per share
Net asset value per share has been calculated by dividing the net assets attributable to the equity shareholders of the Company by the number of ordinary shares in issue at the period end of 19,859,561 (30 September 2009 and 31 March 2010: 19,859,561).
Basic and diluted net asset value per share are the same, as the issued share options are currently anti-dilutive.
Note 18 Financial risk management
During the six months to 30 September 2010, the Group's financial risk management policies were consistent with those disclosed in the consolidated financial statements for the year ended 31 March 2010.
Note 19 Events after the date of the statement of financial position
On 17 September 2010, the Company announced that its subsidiary, Nordic Land AB, had entered into agreements to sell the companies which own each of the Group's properties, subject to shareholder approval. At a general meeting on 7 October 2010, shareholders approved the disposals.
On 15 October 2010 the sales of the subsidiaries owning Terminalen 1, Helsingborg, and Lackeraren 3, Borlange, were completed and all of the Group's bank borrowings were repaid. On 25 November 2010, the sale of the subsidiary owning the properties in Sicklaon was completed.
The disposals took place at the following gross property prices:
Fair value as Fair value as at 30 September at 30 September Disposal Disposal 2010 2010 price price SEK million GBPm SEK million GBPm Terminalen 1, Helsingborg 490 46.0 490 46.0 Lackeraren 3, Borlange 148 13.9 148 13.9 Sicklaon 117 35 3.3 35 3.3 Total property value 673 63.2 673 63.2 Proceeds from sale of other assets and liabilities 0.3 --------- Initial gross sale consideration (see below) 63.5 Repayment of Group borrowings and interest (59.6) Costs of disposal - accrued as at 30 September 2010 - (0.9) other (0.4) --------- Net proceeds from the disposals 2.6 ---------
Under the terms of the sale agreements, out of the initial gross consideration, SEK 15 million (GBP1.4 million) from the sale of Terminalen and SEK 2.5 million (GBP0.2 million) from the sale of Borlange have been placed in escrow to cover potential warranty claims that may be brought by the purchasers of each property. Provided that no such claims are brought (and that the mortgage certificates for the Sicklaon property are delivered to its buyer - see below), these escrow amounts will be released to the Group on 14 October 2011 and 14 February 2012 respectively.
Out of the initial gross consideration from the sale of Sicklaon, SEK 12 million (GBP1.1 million) has been retained in a pledged account until the replacement mortgage certificates for the property can be provided to the purchaser. The purchaser has also taken a second charge on the Terminalen and Borlange escrow amounts. Replacement mortgage certificates are expected to be obtained in approximately 12 months. The sale of Sicklaon completed on 25 November 2010.
The initial gross consideration was calculated on the basis of proforma accounts prepared for each of the subsidiaries which were sold. The final consideration will be determined once the closing accounts for each subsidiary have been prepared and agreed between the Group and the buyers. This is expected to be completed in January 2011.
With the completion of the sale of the properties, the operations of the Group effectively ceased. Following approval at a shareholder meeting on 6 December 2010, the directors commenced a summary winding up of the Group.
Since the period end, the directors have taken measures to reduce the continuing operational costs of the Group. The management agreement with Lathe Investments (Nordic) LLP and the agreements with other service providers in connection with the properties have been terminated and administrative costs have been greatly reduced.
The free cash arising from the sale of the property portfolio together with the other cash in the Group, after providing for a proportion of the expected costs of winding up the Group, will be distributed to shareholders as soon as the completion accounts for the subsidiaries that were sold have been finalised. This is expected to be in January 2011. The initial cash distribution is expected to be approximately 10 pence per share. Further details of this will be announced in due course.
As and when the respective escrow amounts associated with the sales of the properties have become available to the Group, further cash distributions will be made of the escrow amounts released, less a retention for all remaining expected costs of the winding up. These further distributions are expected to be approximately 12 pence per share in aggregate and are expected to be made by the end of the first quarter of 2012.
Note 20 Interim report
The report is available on the Company's website: www.nordicland.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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