Panther Securities COVID-19 and Dividend Update

 
TIDMPNS 
 
17 April 2020 
 
Prior to publication, the information contained within this announcement was 
deemed by the Company to constitute inside information as stipulated under the 
Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of 
this announcement, this information is now considered to be in the public 
domain. 
 
                            Panther Securities PLC 
 
                        (the "Company" or the "Group") 
 
                         COVID-19 and dividend update 
 
The Company today provides an update on the impact of the evolving global 
COVID-19 pandemic on the Group's business. 
 
In the worst health crisis of a generation our thoughts are with those affected 
both personally or financially due to the consequences of the pandemic or the 
actions taken to protect us. 
 
We anticipate that we will announce our results for the year ended 31 December 
2019 in early May.  This will have more detail on the current situation as well 
as the usual review of the 2019 year. 
 
Our approach 
 
In these circumstances we are approaching requests from tenants for rental 
relief on a case by case basis. In general, we have been supportive to our 
tenants, particularly the smaller and independent traders that are less 
resilient to the enforced closures.  With those who have bigger shoulders than 
us we have applied more pressure to continue to have them honour their 
obligations.  However, in all instances we believe that our approach is 
sensible and for the best long-term interest of our shareholders.  As well as 
monitoring income, we have, where possible, reduced our overheads and kept good 
communication with our stakeholders, including our lenders. 
 
Our income during the pandemic lockdown 
 
We have a large spread of tenancies and a robust income stream, which the 
Directors believe is much stronger than other comparable property investment 
businesses of our market size, as we favour property investments of a secondary 
nature, which are higher yielding and generally multi-let. 
 
We estimate that approximately 41% of our rental income comes from businesses 
that have not been forced to close or been recommended to close under 
government guidelines. The annual income from these businesses is approximately 
GBP5.6m and would be enough to cover our interest obligations to our lenders of 
approximately GBP4.1m and most of our overheads.  We also took advantage of the 
market in 2018 by selling GBP41m of property, realising a profit of GBP11m.  We 
substantially de-geared the Group's balance sheet at that time which left us 
with bank facilities that we were able to re-draw and also cash funds. We 
currently have over GBP12.5m of free cash in our current account to utilise on 
top of any potential income. 
 
Given our cash funds, potential income and the significant quantum of uncharged 
properties, the Directors believe that the Group has sufficient liquid 
resources to continue trading for at least a further 21 months and probably 
even longer.  This is on a "worst case" basis, where the lockdown is maintained 
at the current level of restrictions over the whole of that period. 
 
Future earnings 
 
The Directors believe that it is too early to tell what impact the pandemic 
virus will have on our results for the year ending 31 December 2020, but of 
course it will not have a positive effect. 
 
Dividend 
 
We are very proud of our dividend track record and our Chairman believes that 
we have a 37-year track record of never reducing or missing a dividend.  As 
such it is the Directors' current intention to pay a further 6p per share 
dividend to our loyal shareholders for the year ended 31 December 2019.  We 
have significant cash reserves and distributable reserves to justify this 
dividend. 
 
Loan renewal 
 
Mainly earned by our actions over successive financial downturns, we are 
fortunate to have lenders who have been very supportive to date, as evidenced 
by our ability to draw down.  We have recently drawn GBP4m of our unutilised bank 
facility and our lenders have also provided access to a further GBP1.5m of 
restricted funds (restricted to approved property purchases).  This GBP5.5m is 
included in the available cash balances mentioned above. 
 
We have had positive discussions with our lenders regarding our loan renewal 
and the Directors are confident that we will conclude negotiations later in the 
year after the lockdown ends or, if this is not possible, they believe that the 
lenders will be amenable to a short term extension.  Our current loan matures 
in April 2021 so we do have time on our side. 
 
Andrew Perloff, Chairman, said: 
 
"Even in these extremely difficult times we are confident our Group will come 
through and continue to thrive over the years ahead." 
 
For further information: 
 
Panther Securities plc:                               Tel: [phone] 
 
Andrew Perloff/ Simon Peters 
 
Allenby Capital Limited (Nomad and Joint              Tel: [phone] 
Broker) 
 
David Worlidge/ Alex Brearley 
 
 
 
END 
 

(END) Dow Jones Newswires

April 17, 2020 02:00 ET (06:00 GMT)