Share Name Share Symbol Market Type Share ISIN Share Description
Panther Securities Plc LSE:PNS London Ordinary Share GB0005132070 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 175.00 150.00 200.00 175.00 175.00 175.00 1,000 00:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment & Services 14.2 -5.0 -23.1 - 30

Panther Securities PLC Half-year Report

24/09/2019 7:00am

UK Regulatory (RNS & others)

Panther Securities (LSE:PNS)
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Panther Securities PLC

24 September 2019

Panther Securities PLC

Interim Report - Six months ended 30 June 2019


I am pleased to be able to report our results for the six months ended 30 June 2019 which show a profit of GBP885,000 before tax, which is much reduced when compared to last year's figure of GBP11,193,000, which benefitted from some very large value sales and positive revaluations of properties during that period.

The profit figure for the period under review was also reduced by an increased deficit on our swap liability of GBP1,864,000, as short-term interest and bond interest rates are currently around an all-time low.

However, our basic trading is sound with the current period rental income receivable at GBP7,023,000 compared to GBP7,069,000 for the half year period ended 30 June 2018.

For the most part rental income is holding up and also being successfully replaced by new acquisitions. We have, to date, only partially utilised the funds produced by our successful property sales over the last two years.

There was only one freehold sale included in this period's accounts, being that of Victoria Street, Wolverhampton for GBP710,000, a cleared site on which we had obtained planning permission for a large shop with flats or student accommodation above, which showed a good profit over book value. This exchanged in the period and completed after the period end.

Shareholders will recall that last November we purchased a freehold department store let to Debenhams' in a prime position in Dumfries. It was a relatively risky purchase at the time because of Debenhams' well publicised trading situation. They have since entered into and concluded a successful company voluntary arrangement (CVA) which allowed them to halve the rent and, surprisingly, also the business rates payable by the store. We still receive GBP168,000 p.a. on our GBP1,100,000 cost, which we consider to be a good return. With the approximately GBP65,000 p.a. business rates saving they achieved, it is quite possible that this store will continue to thrive for some time to everyone's benefit.

At the accounting half-year date, our current borrowings were approximately GBP58,981,000 compared to GBP74,931,000 the previous year, and we still had cash balances of about GBP14,510,000 available to invest.

In June 2019 we had a GBP15,000,000 unused facility, which is available for future property purchases. This is due to us paying down that amount out of the previous year's substantial and profitable sales, plus an option of a further GBP10,000,000 of facility, subject to credit approval.

Post Account Acquisitions

New Century and Jackson House, Gateshead

In July 2019 we completed on the freehold purchase of New Century and Jackson House in Gateshead for GBP4.65m. This is a large block of retail, offices and leisure with a net internal area of 91,663 sq. ft. located in the centre of Gateshead directly opposite the metro station and approximately a mile from Newcastle City Centre. The block is anchored by Pure Gym on a long lease, with J D Wetherspoons, Argos and Peacocks being some of the other headline tenants. At the date of acquisition, the block was producing an income of GBP790,000 per annum. There are various asset management opportunities to improve its income by letting some vacant space.

De Clare Business Park, Pontygwindy Road, Caerphilly

On 4 September 2019 we completed the freehold acquisition of De Clare Business Park, Caerphilly, South Wales for GBP2.7m. This business park is made up of four independent modern office buildings with the majority of the offices let to the government and local council. In total there is circa 48,241 sq. ft. of office space with parking for 163 vehicles. With a current rent roll of GBP376,000 per annum, this represents a return of 13.9% and adds non-retail diversification to our portfolio. There is some vacant space available and we may be able to increase the rents, enhancing the scheme's value under our own management. During the acquisition process we were able to agree terms for a letting of one of the vacant suites, which we hope to complete shortly at a higher rent per square foot than had previously been expected.

Business Rates

I have decided to repeat what I said in last year's interim statement as nothing has changed with regard to the Government's neglect of the high street's problems.

"Problems with the high street premises continue. These are almost entirely due to government greed and failure to act sensibly in good time. As well as central government/bureaucratic financial incompetence which we all expect, I would have thought that the political implications for the government which shows the dreadful state of the high street are immense as on every high street other than within the M25, with its numerous vacant or closing down stores is a billboard advertising the failure of government policies. The high street should be the beating heart of most communities and if its vibrancy improves most of its area residents 'happiness factor' improves."


The Directors have declared an interim dividend of 6p per share to shareholders on the register on 8 November 2019 (ex-dividend on 7 November 2019) which is to be paid on 28 November 2019. Subsequently, the Board will assess the business' situation, but expects to pay a total dividend of no less than 12p per share for the full year.

Andrew S Perloff


24 September 2019


In 1965, when I first started in the property business, it did not take me long to realise that profits were easier to make if you could create added value to a property.

There are many ways to do this, but obtaining a planning permission for a different use or larger structure, with more useable space was one of the best ways to improve value, thus making it necessary to enlist the services of architects. This was a complicated process then, and still is, with a myriad of rules with which to comply. The architects we called all had different abilities, some had extensive planning knowledge, but all had their own agendas and ideas, often producing grandiose designs, when all we wanted were simple, cost effective ways to create more value.

Probably around the late 60s an architect was recommended to us who was very reliable and his pricing structures were commensurate with our means. We were told "he knows his stuff!". Indeed, he did. He had encyclopaedic knowledge of all the laws, intricacies, rules and precedents of planning and procedures.

He was never happier than when he came to see us to show us what he felt was possible with some of our projects. In his late fifties, tall, thin, unkempt, of mild manner and was unnoticeable in a crowd. We dealt with him over the next ten to fifteen years and we guessed he was single, as he worked very long hours and never mentioned a wife, children or holidays, but only talked with enthusiasm for his schemes.

He told us of the hidden benefits of corner properties and the benefits of owning properties both sides of a road as you then owned the airspace over the road. Having knowledge of previous uses, ideally from pre-1964 as the use was then considered established, even if in non-conforming zones, your automatic right for a 10% extension of floor space and if you had high ceilings, even more than 10%, and much more.

We understood he was a leading light in MENSA and had such a high IQ they had to create a new higher IQ band. His cost was low and he would wait until we were in funds to be paid so our calls upon him were frequent, but he often needed a small sub as he was often more short of money than us.

His main claim to fame (in my eyes) was when one of his big clients, who owned a six storey warehouse just off Tottenham Court Road near Oxford Street, asked for his help. The previous occupant, a large company with a number of branches around the country, had used the building for its central storage BUT ALSO had used one floor as its head office. Gerry managed to prove that as its head office was based in the building, the entire building should be, and was classified, as head office use. Once classified as such, the building was refurbished in its entirety as an office building which then became almost 20 times the value of when it was a warehouse.

Thus, one day in the early 80s when we were offered a building in Slough with similar characteristics (but much smaller), we instantly called in Gerry.

Originally it was the rear part of a larger building, the front part being a prime trading position shop on Slough's high street. It had about 30 ft. of frontage and a depth of about 150 ft., built on two floors over the full length of the site. However, the original building had been split so that the shop was cut off at about 60 ft. depth and a 3 ft. side door had been made as an entrance to the rear warehouse and office space. The ground floor was very dark and dingy and had few windows. However, the first floor had many windows and was laid out as small individual offices and possibly one bigger communal office. This vacant building felt like the "Mary Celeste", with desk and papers and old wooden filing cabinets everywhere, it was probably last used in the 50s and totalled about 5000 sq. ft., but even the most misleading estate agent would struggle to say it "only needed some re-decoration!" Other than solid brick exterior walls, it was internally derelict. However, it was cheap; about GBP30,000 for the vacant freehold.

The one other feature I remember was that the very damp ground floor had a giant fungus growing through the floorboards at about 5ft high, shaped like an elephant's ear! If we had seen the film or read "The Day of the

Triffids" we would have run away.   However, Malcolm and I hadn't. 

We called Gerry and we returned again with him, better prepared to view with torches, etc. I drove the three of us from central London, parked just off the high street (you could do that in those days) and inspected. At this stage you might believe that my story is about a great property transaction. Well the transaction was, but the story is about Gerry. He gave us advice and later prepared plans and we cleared out the property (and the Triffid), making it look like offices, which we then later sold it for a goodly profit.

As stated, my story is really about Gerry. When parking we had noticed an excellent old fashioned fish and chip shop and instantly decided that after our inspection we would go to lunch and treat Gerry to a proper sized portion of fish and chips.

Entering the shop, we asked Gerry what he wanted, assuming he wanted lunch. He was obviously too polite to refuse and said "the same as you" - I loudly ordered "three large portions of cod and chips please, salt, vinegar and two pickles, and three cups of tea!!". They served it wrapped in the previous day's newspaper and had some rudimentary utensils to use. We all sat at a table and Malcolm and I tucked in with gusto, but Gerry ate slowly, picking at the fish and occasional chip and was obviously under great pressure as to how to deal with this meal, having broken out in a sweat and seemingly unaware as to how to eat in an unorthodox way. After picking at the food and eating about one third of it, he, red-faced and sweating, said he was absolutely full. Well, as you know, one of my favourite sayings is 'every cloud has a silver lining'. So, we tucked in to what he had left and polished that off in about three minutes flat. We finished our tea and left for the drive back to the office. Gerry went back to his office to cogitate on the property and Malcolm and I had an afternoon nap.

I did not think too much about this matter for some time, but gradually over the years I have thought about Gerry and remember he lived in a commercial squat (of an old large redundant G.L.C. building), which doubled as an office with a number of other business/residential squatters. He seemed to have no family life, took no holidays, did not drive, lived frugally with little or no luxuries and was really not interested in any matters other than architectural planning and rules, and possible building alterations, had a limited social life, and was probably incapable of understanding all the myriad of what happens in family life and the outside world. So clever, but so out of touch with everyday life.

He was an extreme example of a magnificent brain, but out of touch with the majority of people's life experiences.

I have come across a few people like this over the years and it is my belief that this is one of the problems of our government and bureaucracy. Brilliantly clever people are making rules that, although probably conceptually superb, are out of touch with the realities and intricacies of most people's everyday lives and problems and, as a consequence, their rules often make life worse and more difficult for the majority.

What we need is some non-brilliant, ordinary clever people (i.e. those with a big dose of common sense!) with more real life experience of life's problems who can produce understandable rules for society to try and live by after all as long ago as the mid-18th century, the French philosopher, Voltaire, stated "common sense is not so common".

We have seen for the last two to three years how shambolic and neglectful all of our politicians have become when having to deal with a very simple decision made democratically by the majority of actual voters of our population.

Andrew S Perloff


24 September 2019

         Panther Securities P.L.C. 
  for the six months ended 30 June 2019 
                                                      Notes   Six months   Six months          Year 
                                                                   ended        ended         ended 
                                                                 30 June      30 June   31 December 
                                                                    2019         2018          2018 
                                                                 GBP'000      GBP'000       GBP'000 
                                                               Unaudited    Unaudited       Audited 
 Revenue                                               2           7,023        7,069        13,607 
 Cost of sales                                         2         (1,240)      (2,072)       (3,947) 
                                                             -----------  -----------  ------------ 
 Gross profit                                                      5,783        4,997         9,660 
 Other income                                                         66          263           457 
 Administrative expenses                                           (750)        (790)       (1,819) 
 Bad debt expense                                                  (538)        (736)         (796) 
                                                             -----------  -----------  ------------ 
                                                                   4,561        3,734         7,502 
 Profit on disposal of investment properties                         560        6,487        11,750 
 Movement in fair value of investment properties       6               -        2,300       (6,396) 
                                                             -----------  -----------  ------------ 
                                                                   4,121       12,521        12,856 
 Finance costs - bank loan interest                              (1,198)      (1,304)       (2,526) 
 Finance costs - swap interest                                   (1,197)      (1,284)       (2,533) 
 Investment income                                                    23            1            24 
 Loss on disposal of fixed assets                                      -            -          (41) 
 Profit realised on the disposal of investments                        -            -            34 
 Movement in derivative financial liabilities          7         (1,864)        1,259           886 
                                                             -----------  -----------  ------------ 
 Profit before income tax                                            885       11,193         8,700 
 Income tax expense                                    3           (201)      (1,830)       (1,653) 
                                                             -----------  -----------  ------------ 
 Profit for the period                                               684        9,363         7,047 
                                                             ===========  ===========  ============ 
 Earnings per share 
 Basic and diluted - continuing operations             5            3.9p        52.9p         39.9p 
                                                             -----------  -----------  ------------ 
                 Panther Securities P.L.C. 
          for the six months ended 30 June 2019 
                                                                           Six months   Six months          Year 
                                                                                ended        ended         ended 
                                                                              30 June      30 June   31 December 
                                                                                 2019         2018          2018 
                                                                              GBP'000      GBP'000       GBP'000 
                                                                            Unaudited    Unaudited       Audited 
 Profit for the period                                                            684        9,363         7,047 
                                                                          -----------  -----------  ------------ 
 Items that will not be reclassified subsequently to profit or loss 
 Movement in fair value of investments taken to equity                          (135)            -         (197) 
 Deferred tax relating to movement in fair value of investments taken to 
  equity                                                                           23            -            34 
 Other comprehensive loss for the period, net of tax                            (112)            -         (163) 
 Total comprehensive income for the period                                        572        9,363         6,884 
                                                                          -----------  -----------  ------------ 
 Attributable to: 
 Equity holders of the parent                                                     572        9,363         6,884 
                                                                                  572        9,363         6,884 
                                                                          -----------  -----------  ------------ 
                                       Panther Securities P.L.C. 
                                        Company number 293147 
                                          As at 30 June 2019 
                                                          Notes     30 June     30 June   31 December 
                                                                       2019        2018          2018 
                                                                    GBP'000     GBP'000       GBP'000 
 ASSETS                                                           Unaudited   Unaudited       Audited 
 Non-current assets 
 Plant and equipment                                                      -          43             - 
 Investment properties                                     6        170,371     189,235       170,236 
 Deferred tax asset                                                   2,151           -         1,811 
 Investments                                                          1,715          17         1,850 
                                                                 ----------  ----------  ------------ 
                                                                    174,237     189,295       173,897 
 Current assets 
 Stock properties                                                       448         448           448 
 Trade and other receivables                                          5,821      21,817         4,896 
 Cash and cash equivalents (restricted)                               7,722       1,494        14,436 
 Cash and cash equivalents                                            6,788       7,656         5,614 
                                                                 ----------  ----------  ------------ 
                                                                     20,779      31,415        25,394 
 Total assets                                                       195,016     220,710       199,291 
                                                                 ----------  ----------  ------------ 
 Equity attributable to equity holders of the parent 
 Capital and reserves 
 Share capital                                                        4,437       4,437         4,437 
 Share premium account                                                5,491       5,491         5,491 
 Treasury shares                                                      (213)       (213)         (213) 
 Capital redemption reserve                                             604         604           604 
 Retained earnings                                                   80,568      87,250        83,710 
 Total equity                                                        90,887      97,569        94,029 
                                                                 ----------  ----------  ------------ 
 Non-current liabilities 
 Long-term borrowings                                      7         57,946      73,772        58,864 
 Derivative financial liability                            7         27,378      25,141        25,514 
 Deferred tax liabilities                                                 -         863             - 
 Obligations under finance leases                                     7,512       7,512         7,510 
                                                                 ----------  ----------  ------------ 
                                                                     92,836     107,288        91,888 
 Current liabilities 
 Trade and other payables                                             9,071      11,905        10,192 
 Accrued dividend payable                                  4          1,061       1,238             - 
 Short-term borrowings                                     7          1,035       1,159         1,071 
 Current tax payable                                                    126       1,551         2,111 
                                                                 ----------  ----------  ------------ 
                                                                     11,293      15,853        13,374 
 Total liabilities                                                  104,129     123,141       105,262 
                                                                 ----------  ----------  ------------ 
 Total equity and liabilities                                       195,016     220,710       199,291 
                                                                 ----------  ----------  ------------ 
                Panther Securities P.L.C. 
         for the six months ended 30 June 2019 
                              Share      Share     Treasury   Capital redemption    Retained 
                            capital    premium       shares              reserve    earnings     Total 
                            GBP'000    GBP'000      GBP'000              GBP'000     GBP'000   GBP'000 
 Balance at 1 January 
  2018 (audited)              4,437      5,491        (213)                  604      80,893    91,212 
 Total comprehensive 
  income for the 
  period                          -          -            -                    -       9,363     9,363 
 Dividends paid                   -          -            -                    -     (1,768)   (1,768) 
 Dividends due                    -          -            -                    -     (1,238)   (1,238) 
                          ---------  ---------  -----------  -------------------  ----------  -------- 
 Balance at 30 
  June 2018 (unaudited)       4,437      5,491        (213)                  604      87,250    97,569 
                          ---------  ---------  -----------  -------------------  ----------  -------- 
 Balance at 1 January 
  2018 (audited)              4,437      5,491        (213)                  604      80,893    91,212 
 Total comprehensive 
  income for the 
  period                          -          -            -                    -       6,884     6,884 
 Dividends paid                   -          -            -                    -     (4,067)   (4,067) 
                          ---------  ---------  -----------  -------------------  ----------  -------- 
 Balance at 1 January 
  2019 (audited)              4,437      5,491        (213)                  604      83,710    94,029 
 Total comprehensive 
  income for the 
  period                          -          -            -                    -         572       572 
 Dividends paid                   -          -            -                    -     (2,653)   (2,653) 
 Dividends due                    -          -            -                    -     (1,061)   (1,061) 
 Balance at 30 
  June 2019 (unaudited)       4,437      5,491        (213)                  604      80,568    90,887 
                          =========  =========  ===========  ===================  ==========  ======== 
                                              Panther Securities P.L.C. 
                                       for the six months ended 30 June 2019 
                                                                      Notes      30 June     30 June   31 December 
                                                                                    2019        2018          2018 
                                                                                 GBP'000     GBP'000       GBP'000 
                                                                               Unaudited   Unaudited       Audited 
 Cash flows from operating activities 
 Profit from operating activities                                                  4,561       3,734         7,502 
 Add: Depreciation charges for the period                                              -          10            13 
 Less: Rent paid treated as interest                                               (285)       (286)         (571) 
 Profit before working capital change                                              4,276       3,458         6,944 
 Increase in receivables                                                           (301)       (903)       (1,219) 
 (Decrease)/ increase in payables                                                (1,118)         708         (319) 
                                                                              ----------  ----------  ------------ 
 Cash generated from operations                                                    2,857       3,263         5,406 
 Interest paid                                                                   (2,028)     (2,065)       (4,375) 
 Income tax paid                                                                 (2,503)       (840)       (2.743) 
                                                                              ----------  ----------  ------------ 
 Net cash (used in)/ generated from operating activities                         (1,674)         358       (1,712) 
 Cash flows from investing activities 
 Purchase of investment properties                                                 (285)       (145)       (3,894) 
 Purchase of investments*                                                              -           -       (2,271) 
 Proceeds from sale of investment property                                            85       4,343        40,790 
 Proceeds from sale of investments                                                     -           -           275 
 Dividend income received                                                              -           -             5 
 Interest income received                                                             23           1            19 
                                                                              ----------  ----------  ------------ 
 Net cash (used in)/ generated from investing activities from continuing 
  operations                                                                       (177)       4,199        34,924 
 Cash flows from financing activities 
 New loans received                                                                    -         500           500 
 Repayments of loans                                                             (1,036)        (80)      (15,161) 
 Loan arrangement fees and associated costs                                            -           -         (375) 
 Dividends paid                                                                  (2,653)     (1,768)       (4,067) 
 Net cash used in financing activities                                           (3,689)     (1,348)      (19,103) 
 Net (decrease)/ increase in cash and cash equivalents                           (5,540)       3,209        14,109 
 Cash and cash equivalents at the beginning of period                             20,050       5,941         5,941 
 Cash and cash equivalents at the end of period**                                 14,510       9,150        20,050 
                                                                              ----------  ----------  ------------ 

* Shares in listed and/or unlisted companies.

** Of this balance GBP7,722,000 (30 June 2018: GBP1,494,000, 31 December 2018: GBP14,436,000) is restricted by the Group's lenders i.e. it can only be used for the purchase of investment property (or otherwise by agreement).

Panther Securities P.L.C.


for the six months ended 30 June 2019

   1.   Basis of preparation of interim financial statements 

The results for the year ended 31 December 2018 have been audited whilst the results for the six months ended 30 June 2018 and 30 June 2019 are unaudited.

The financial information set out in this interim financial report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory accounts for the year ended 31 December 2018 which were prepared under International Financial Reporting Standards ("IFRS") as adopted for use in the European Union, were filed with the Registrar of Companies. The auditors reported on these accounts, their report was unqualified and did not include reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain any statements under Section 498 (2) or Section 498 (3) of the Companies Act 2006.

These condensed consolidated interim financial statements are for the six month period ended 30 June 2019. They have been prepared using accounting policies consistent with IFRS as adopted for use in the European Union. IFRS is subject to amendment and interpretation by the International Accounting Standards Board ("IASB") and the IFRS Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission. The financial information has been prepared on the basis of IFRS that the Board of Directors expect to be applicable as at 31 December 2019.

IFRS 16 affecting leases have been applied by the Group for the first time in preparing this interim financial report which is adopted from 1 January 2019. Under the transition methods chosen, comparative information is not restated. The Directors consider that the application of these standards has not had a material impact on the recognition and measurement of items in the interim financial report.

A number of other new and amended standards and interpretations are effective from 1 January 2019 but they do not have a material effect on the Group's financial statements.

   2.   Revenue and cost of sales 

The Group's only operating segment is investment and dealing in property and securities. All revenue, cost of sales and profit or loss before taxation is generated in the United Kingdom. The Group is not reliant on any key customers.

   3.   Income tax expense 

The charge for taxation comprises the following:

                                    30 June     30 June   31 December 
                                       2019        2018          2018 
                                    GBP'000     GBP'000       GBP'000 
                                  Unaudited   Unaudited       Audited 
 Current period UK corporation 
  tax                                   518       2,150         4,684 
 Prior period UK corporation 
  tax                                     -           -          (71) 
                                 ----------  ----------  ------------ 
                                        518       2,150         4,613 
 Current period deferred 
  tax                                 (317)       (320)       (2,960) 
                                 ----------  ----------  ------------ 
 Income tax expense for 
  the period                            201       1,830         1,653 
                                 ==========  ==========  ============ 

The taxation charge is calculated by applying the Directors' best estimate of the annual effective tax rate to the profit for the period.

   4.           Dividends 

Amounts recognised as distributions to equity holders in the period:

                               30 June     30 June   31 December 
                                  2019        2018          2018 
                               GBP'000     GBP'000       GBP'000 
                             Unaudited   Unaudited       Audited 
 Interim dividend for the 
  year ended 31 December 
  2018 of 6p per share               -           -         1,061 
 Special dividend for the 
  year ended 31 December 
  2018 of 15p (2017 -10p) 
  per share                      2,653       1,768         1,768 
 Final dividend for the 
  year ended 31 December 
  2018 of 6p (2017 - 7p) 
  per share                     *1,061      *1,238         1,238 
                                 3,714       3,006         4,067 
                            ==========  ==========  ============ 

The final dividend of 6p per share for the year ended 31 December 2018 was not paid at the period end but declared and approved (being accrued in these accounts) and was paid on 5 September 2019.

*Accrued at half year and paid after period end.

   5.   Earnings per ordinary share (basic and diluted) 

The calculation of basic and diluted earnings per ordinary share is based on earnings being a profit of GBP684,000 (30 June 2018 - profit of GBP9,363,000 and 31 December 2018 - profit of GBP7,047,000).

The basic earnings per share is based on the weighted average of the ordinary shares in existence throughout the period, being 17,683,469 to 30 June 2019 (17,683,469 to 31 December 2018 and 17,683,469 to 30 June 2018). There are no potential shares in existence for any period therefore diluted and basic earnings per share are equal.

In the year ended 31 December 2017 Panther Securities PLC bought 63,460 ordinary shares that it currently holds in treasury.

   6.   Investment properties 
                                30 June     30 June   31 December 
                                   2019        2018          2018 
                                GBP'000     GBP'000       GBP'000 
                              Unaudited   Unaudited       Audited 
 Fair value of investment 
 At 1 January                   170,236     201,825       201,825 
 Additions                          285         145         3,894 
 Fair value adjustment 
  on property 
  held on operating leases            -           -          (47) 
 Disposals                        (150)    (15,035)      (29,040) 
 Revaluation increase/ 
  (decrease)                          -       2,300       (6,396) 
 At 31 December                 170,371     189,235       170,236 
                             ==========  ==========  ============ 

The directors consider that the fair value of the investment properties has not materially changed from the 31 December 2018 Statement of Financial Position date.

   7.   Derivative financial instruments 

The main risks arising from the Group's financial instruments are those related to interest rate movements. Whilst there are no formal procedures for managing exposure to interest rate fluctuations, the Board continually reviews the situation and makes decisions accordingly. Hence, the Company will, as far as possible, enter into fixed interest rate swap arrangements. The purpose of such transactions is to manage the interest rate risks arising from the Group's operations and its sources of finance.

                                             30 June             30 June           31 December 
                                              2019                2018                2018 
                                             GBP'000             GBP'000             GBP'000 
 Bank loans                           Unaudited    Rate   Unaudited    Rate     Audited    Rate 
 Interest is charged as to: 
 Fixed/ Hedged 
 HSBC Bank plc*                          35,000   7.01%      35,000   7.01%      35,000   7.01% 
 HSBC Bank plc**                         25,000   6.58%      25,000   6.58%      25,000   6.58% 
 Unamortised loan arrangement fees        (241)               (407)               (322) 
 Floating element 
 HSBC Bank plc***                       (1,000)              15,000                   - 
 Shawbrook Bank plc                         222                 338                 257 
                                     ----------          ----------          ---------- 
                                         58,981              74,931              59,935 
                                     ==========          ==========          ========== 

* Fixed rate came into effect on 1 September 2008. The rate includes 1.95% margin. The contract includes mutual breaks, the next one being on 23 December 2019 (and every 5 years thereafter).

** This arrangement came into effect on 1 December 2011 when HSBC exercised an option to enter the Group into this interest swap arrangement. The rate includes a 1.95% margin. This contract includes a mutual break on the fifth anniversary and its duration is until 1 December 2021.

***The floating element was negative at the period-end as Panther Securities PLC have fixed for GBP60,000,000 but had only drawn down GBP59,000,000. A further GBP1,000,000 was drawn down shortly after the year-end.

Bank loans totalling GBP60,000,000 (2018 - GBP60,000,000) are fixed using interest rate swaps removing the Group's exposure to interest rate risk - as such we were over fixed at the period end but this changed after the period end when a further GBP1m was drawn. Other borrowings are arranged at floating rates, thus exposing the Group to cash flow interest rate risk.

The derivative financial assets and liabilities are designated as held for trading.

                                   Hedged         Rate          Duration         30 June       30 June   31 December 
                                   amount        (without     of contract           2019          2018          2018 
                                                 margin)       remaining      Fair value    Fair value    Fair value 
                                  GBP'000                        years           GBP'000       GBP'000       GBP'000 
                                                                               Unaudited     Unaudited       Audited 
 Derivative financial 
 Interest rate 
  swap                               35,000          5.060%      19.19          (22,766)      (20,997)      (21,482) 
 Interest rate 
  swap                               25,000          4.630%       2.42           (2,218)       (2,970)       (2,517) 
 Interest rate 
  swap*                              25,000          2.131%      12.42           (2,394)       (1,174)       (1,515) 
                                                                                (27,378)      (25,141)      (25,514) 
                                                                            ------------  ------------  ------------ 
            Movement in derivative financial liabilities                         (1,864)         1,259           886 
                                                                            ============  ============  ============ 

*This swap commences on 1 December 2021 when the GBP25,000,000 4.63% swap ceases, as it is at a lower rate it will result in an annual interest saving of circa GBP625,000 per annum compared to the current structure.

Interest rate derivatives are shown at fair value in the Statement of Financial Position, with charges in fair value taken to the Income Statement. Interest rate swaps are classified as level 2 in the fair value hierarchy specified in IFRS 13.

The vast majority of the derivative financial liabilities are due in over one year and therefore they have been disclosed as all due in over one year.

The above fair values are based on quotations from the Group's banks and Directors' valuation.

Treasury management

The long-term funding of the Group is maintained by three main methods, all with their own benefits. The Group has equity finance, has surplus profits and cash flow which can be utilised and also has loan facilities with financial institutions. The various available sources provide the Group with more flexibility in matching the suitable type of financing to the business activity and ensure long-term capital requirements are satisfied.

   8.   Net asset value per share 
                        30 June     30 June   31 December 
                           2019        2018          2018 
                        GBP'000     GBP'000       GBP'000 
                      Unaudited   Unaudited       Audited 
 Basic and diluted         514p        552p          532p 
                     ==========  ==========  ============ 

9. Copies of this report are to be sent to all shareholders and are available from the Company's registered office at Unicorn House, Station Close, Potters Bar, EN6 1TL and will also be available for download from our website

   Panther Securities PLC            +44 (0) 1707 667 300 
 Andrew Perloff, Chairman 
 Simon Peters, Finance Director 
   Allenby Capital Limited                                                    +44 (0) 20 3328 5656 

David Worlidge

Alex Brearley

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact or visit



(END) Dow Jones Newswires

September 24, 2019 02:00 ET (06:00 GMT)

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