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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| West Pioneer | LSE:WPR | London | Ordinary Share | VGG955191074 | ORD USD0.10 (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 10.25 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMWPR
RNS Number : 2357J
West Pioneer Properties Limited
28 June 2011
Press Release 28 June 2011
West Pioneer Properties Limited
("West Pioneer" or the "Company")
Preliminary Results
West Pioneer Properties Limited (AIM:WPR), a leading developer and operator of shopping malls and mixed use developments in west and south India, announces its preliminary results for the year ended 31 March 2011.
Highlights
Hot Features
Premium
-- Trading and footfall figures at Metro Junction Mall in
Kalyan continue to perform well, with retailer and visitor
responses improving
-- Mall leasing levels increased to 74% with a leading national
departmental store signed as a tenant during the period.
Negotiations continue with additional retailers on desirable
terms to increase leasing levels further
-- Continuing focus on quality of tenants and tenant mix
to position the Metro Junction Mall as a leading value
and lifestyle destination
-- Residential development at Kalyan continues to progress
well with over 80% of available units already sold. Units
are now being sold at prices approximately 48% higher
than launch price
-- Commercial Plaza at Kalyan received pre-launch bookings
for approximately 20% of the area designated for sale,
with the average sale price at approximately a 50% premium
on the current residential sale price
-- Design plans finalised at Nashik, with ground break expected
to commence in the next six months. The Company is currently
in advanced negotiations with a number of anchor tenants
with a view to pre-leasing space in the mall
-- Balance sheet remains robust as a result of prudent cash
management and low gearing with year end cash and cash
equivalents of $2.2m
-- Ability to finance Nashik development through proceeds
from pre-sales of further residential units at Kalyan
and a principally approved funding facility of US$5m
-- Management actively investing cash and resources in exploring
and evaluating opportunities to generate value in the
retail, residential, commercial and leisure spaces
Commenting on the results, Amit Jatia, Chairman of West Pioneer, said: "I am pleased to report a year of significant progress at West Pioneer. At our Kalyan development, good steps have been made in diversifying the tenant mix to position the mall as a leading value shopping and lifestyle destination combined with strong progress made in sales and leasing at the residential, retail and commercial developments. The Board is excited about the future of the Nashik development now that design plans have been finalised and with construction due to commence in the current financial year. We remain confident in our ability to deliver value to shareholders from our retail, hospitality, residential and commercial developments."
-Ends-
For further information:
Evolution Securities
Jeremy Ellis / Chris Clarke Tel: +44 (0) 20 7071
4300
Media enquiries:
Abchurch Communications
Sarah Hollins / Mark Dixon Tel: +44 (0) 20 7398
7729
mark.dixon@abchurch-group.com www.abchurch-group.com
Chairman's Statement
Indian Economy
The medium and long term prospects for the Indian economy continue to be optimistic with the country witnessing GDP growth of 8.5% in 2010/11 and 8% growth estimated in 2011/12. Domestic consumption has been steady over the period and foreign direct investment in the retail sector is expected to be relaxed offering West Pioneer potential partnership opportunities with leading Western brands looking to gain exposure to the Indian retail market. However, inflation levels of 10% continue to be an issue for the economy, resulting in pressures being placed on consumption patterns.
Retail
The outlook for the organised retail sector in India remains promising with levels expected to rise from the current 6% to 11% by 2013 according to Knight Frank. Increasingly, the focus of retailers is shifting towards value as a growth driver rather than volume driven growth, with West Pioneer expected to benefit from this shift due to its mix of tenants and customers. With the onset of the global financial crisis, retailers began to increasingly reassess their business models which in turn led to renegotiation of rentals deals in order to focus on operational efficiencies, resizing and the closing down of unprofitable stores. Some sense of stability is now returning with both retailers and developers (including West Pioneer) looking at partnership models with revenue sharing deals incorporating minimum rental guarantees and long term sustainability as key terms.
Residential
India's growing middle class and the associated increasing levels of disposable income are generating demand for residential housing and second homes. This demand for residential housing has in turn led to volume and price increases over the last six months with a degree of stabilisation now being experienced.
Company Strategy
West Pioneer's strategy is to become a leading developer and operator of shopping malls and mixed use developments in west and south India. By capitalising on the synergies created through building and operating mixed use developments, the Company is not solely a mall developer and operator but also one that deals with consumers directly through its residential and commercial projects. By leveraging this mixed use development strategy, West Pioneer is in a strong position to create value, generate sustainable operating income and achieve breakeven economics at project launch levels through pre-leasing and advance sale bookings. The Company continues to focus its activities in tier II cities where rapid growth and competitive land pricing is more achievable than in established tier I cities. In addition, West Pioneer's favoured route of entering into agreements through joint development or joint venture methods successfully reduces capital expenditure requirements.
Financial Review
In the year ended 31 March 2011, West Pioneer achieved revenue and other income of US$8.7m (2010: US$7.9m), including property rentals and other operating income of US$4.4m (2010: US$3.2m). Profit before tax was US$3.15m (2010: US$3m) and basic earnings per share was US$0.053 (2010: US$0.016). Net assets at the year end were US$67.1m (2010: US$63.3m), including cash and short term deposits of US$2.2m (2010: US$3.9m). Interest bearing loans and borrowings increased from US$7.6m to US$7.9m during the period, inclusive of debt repayments.
Operating Review
Kalyan
Good progress has been made during the year at the Company's development in Kalyan. As a mixed use development, the Company has the benefit of dealing directly with consumers through the residential and commercial projects which in turn offers valuable consumer insight and synergies for use in the mall itself. As a result of these insights, the strategic focus for the mall is now based on consumer value, with the successful positioning of the mall as a value and lifestyle destination.
Phase I of the 500,000 sq. ft. mall has been developed as planned and includes a fully functional food court and entertainment zone on the second floor along with three restaurants and a five screen multiplex cinema. In February 2011 the Company announced that one of India's leading department store operators had entered into an agreement to lease 43,750 sq. ft. of retail space. As a result, leasing at the mall increased to 74% and the Company is currently in negotiation with a number of major brands to lease the remaining retail space. The mall continues to experience a steady growth of walk-in footfall with over 8 million visitors to the mall during the year. As detailed last year, there is an increasing number of people visiting the mall by car, which not only reflects the relative affluence of the customer as well as their intention to purchase, but also generates income for the Company from other revenue streams including income from car parking, advertising and kiosks.
Phase II of the development at Kalyan, the three-tower residential project of 560,000 sq. ft., has continued to progress well over the period. 80% of units have been pre-sold in the first two towers and pre-sales in the third tower are expected to commence later this year.The residential development maintains its status as the most premium development in the Kalyan area and units have achieved a 48% escalation from their sale price at launch. The project is expected to generate net profit of US$17m within the next three to four years.
Phase III of the development, a commercial plaza of 68,000 sq. ft., has been pre-launched with small commercial units for leasing on the ground floor and for sale on the first and second floors, with a target market of self-employed professionals such as doctors, lawyers and architects. Response to marketing the development has been very positive with 20% of the sale space already booked at a c.50% premium over current residential sale rates, which is in line with management's strategy to take advantage of opportunities where premium value can be generated. The project, entitled 'Metro Plaza', is expected to lead to a net cash inflow of US$2m over next two years from unit sales. In addition, when fully leased, rental from commercial space on the ground floor is expected to yield US$0.5m per annum following launch.
Nashik & Aurangabad
During the period, the Company finalised design plans for Nashik. The development will include a 300,000 sq. ft. shopping mall and the Company is currently in advanced negotiations with a number of anchor tenants with a view to pre-leasing space in the mall. Further potential has been identified for a hotel on the site with a management agreement with InterContinental Hotels Group in place for the development of a Holiday Inn hotel.
The development of land at Aurangabad will follow the development of Nashik. Outlook
West Pioneer's key near term goals are to maintain the positioning of the Kalyan as a value and lifestyle destination in order to drive further footfall and maximise rental values and quality of tenants and tenant mix rather than short-term occupancy. The Company will also continue to develop Kalyan's commercial plaza alongside the development of the residential site and its corresponding sales plan.
The Company also expects to make significant advances in the development of the Nashik site in the current financial year and will update shareholders on progress going forward. West Pioneer is making good progress in its objective of developing a brand that is recognised by retailers and consumers alike for quality and attractive pricing which it expects to lead to desirable returns for shareholders from income growth and asset value.
CONSOLIDATED INCOME STATEMENT
For the year ended 31(st) March 2011
Year ended 31(st) March
2011 2010
------------ ------------
$ $
Revenue
Property rentals 2,100,805 1,612,256
Other operating income 2,272,500 1,656,311
------------ ------------
Total Revenue 4,373,305 3,268,567
Property revaluation 4,117,148 3,897,005
Finance and other income 184,749 831,174
Total Income 8,675,202 7,996,746
------------ ------------
Expenses
Direct operating expenses for
rent-earning properties (2,063,289) (1,671,845)
Administrative expenses (1,922,748) (1,722,812)
Selling and distribution costs (490,176) (454,217)
Finance costs (1,048,174) (1,109,192)
------------ ------------
Total expenses (5,524,387) (4,958,066)
------------ ------------
Profit before tax 3,150,815 3,038,680
Income tax 1,092,426 (1,767,376)
Profit after tax 4,243,241 1,271,304
============ ============
Attributable to:
Equity holders 4,243,241 1,271,304
Earnings per share (attributable
to equity holders)
Basic 0.053 0.016
Diluted 0.053 0.016
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
For the year ended 31(st) March 2011
Year ended 31(st) March
2011 2010
------------ ------------
$ $
Profit for the year 4,243,241 1,271,304
============ ============
Exchange gain/ (loss) on translation
of foreign operations (510,093) 7,992,191
------------ ------------
Other comprehensive income/ (loss)
for the year, net of tax (510,093) 7,992,191
------------ ------------
Total comprehensive income for
the year, net of tax 3,733,148 9,263,495
============ ============
Attributable to:
Equity holders 3,733,148 9,263,495
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31st March 2011
As at 31st March
2011 2010
------------ ------------
$ $
Assets
Non current assets
Property, plant and equipment 3,455,261 3,648,449
Investment properties 75,018,955 73,059,060
Intangible assets 12,755 21,984
Other financial assets 313,781 306,572
Advance income tax 482,167 355,305
Deferred tax asset 3,166,099 -
82,449,018 77,391,370
------------ ------------
Current assets
Inventories 9,953,710 5,382,042
Investments - held for trading 549,527 639,615
Trade and other receivables 1,383,896 1,450,130
Prepayments 50,210 70,450
Cash and short-term deposits 2,191,013 3,966,039
------------ ------------
14,128,356 11,508,276
------------ ------------
Total Assets 96,577,374 88,899,646
============ ============
Equity and Liabilities
Equity attributable to the equity
holders
Issued capital 7,996,130 7,996,130
Share premium 45,717,870 45,717,870
Retained earnings 17,449,183 13,192,220
Employee equity benefit reserve 690,216 650,152
Foreign currency translation reserve (4,742,795) (4,232,702)
67,110,604 63,323,670
------------ ------------
Non current liabilities
Interest bearing loans and borrowings 3,744,675 5,662,879
Advance from sale of residential
units 5,001,611 2,296,616
Other financial liabilities 1,076,772 1,056,036
Other non-financial liabilities 28,276 88,755
Employee benefit liability 51,900 48,113
Deferred tax liability 12,179,414 10,199,789
22,082,648 19,352,188
------------ ------------
Current liabilities
Trade and other payables 2,151,057 3,421,657
Interest bearing loans and borrowings 4,116,708 1,931,473
Other financial liabilities 1,066,790 828,629
Other non-financial liabilities 49,567 42,029
7,384,122 6,223,788
------------ ------------
Total Liabilities 29,466,770 25,575,975
------------ ------------
Total Equity and Liabilities 96,577,374 88,899,646
============ ============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31(st) March 2011
Attributable to equity holders of the parent
---------------------------------------------------------------------------
Employee Foreign
equity currency
Issued Share Retained benefits translation Total
capital premium earnings reserve reserve equity
---------- ----------- ----------- --------- ------------- -----------
$ $ $ $ $ $
Balance as at
1(st) April
2010 7,996,130 45,717,870 13,192,220 650,152 (4,232,702) 63,323,670
Profit for the
year - - 4,243,241 - - 4,243,241
Other
comprehensive
income - - - - (510,093) (510,093)
---------- ----------- ----------- --------- ------------- -----------
Total
comprehensive
income - - 4,243,241 - (510,093) 3,733,148
Share based
payment - - - 53,786 - 53,786
Transfer to
retained
earnings on
options
forfeited - - 13,722 (13,722) - -
Balance as at
31(st) March
2011 7,996,130 45,717,870 17,449,183 690,216 (4,742,795) 67,110,604
========== =========== =========== ========= ============= ===========
Balance as at
1(st) April
2009 7,996,130 45,717,870 11,920,916 515,474 (12,224,893) 53,925,497
Profit for the
year - - 1,271,304 - - 1,271,304
Other
comprehensive
income - - - - 7,992,191 7,992,191
---------- ----------- ----------- --------- ------------- -----------
Total
comprehensive
income - - 1,271,304 - 7,992,191 9,263,495
Share based
payment - - - 134,678 - 134,678
Balance as at
31(st) March
2010 7,996,130 45,717,870 13,192,220 650,152 (4,232,702) 63,323,670
========== =========== =========== ========= ============= ===========
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31st March 2011
Year ended 31(st) March
2011 2010
$ $
Operating activities
Profit before tax 3,150,815 3,038,680
Adjustments to reconcile profit before
tax to net cash flows
Depreciation and amortization 58,036 34,501
Share based payments expense 53,786 134,678
(Increase) in fair value of investment
properties (4,117,148) (3,897,005)
(Increase) in value of investments held-for-sale (24,462) (171,994)
Net (Gain) on sale of investment - (113)
Dividend income (8,845) (18,121)
Interest income (72,744) (142,679)
Interest expense 1,040,439 1,101,125
(Increase) in other assets (non-current) (304) (54,919)
(Decrease) in other payables ( non current
) - (108,480)
Increase in other liabilities ( non current
) 2,665,077 2,467,476
------------ ------------
2,744,650 2,383,149
Working capital adjustments
Decrease / (Increase) in prepayments (current) 19,592 (39,829)
Decrease / (Increase) in trade and other
receivables 1,420,740 (555,231)
(Increase) in Inventories-Residential (2,111,423) (728,977)
(Increase) in Inventories-Mall (79,770) (68,186)
(Decrease) in trade and other payables
(current) (1,270,559) (300,004)
Increase in other liabilities (current) 292,348 15,475
Income tax paid (128,986) (14,922)
------------ ------------
Net cash flows from operating activities 886,592 691,475
------------ ------------
Investing activities
Proceeds from sale of held-for-trading
investments 250,538 850,384
Purchase of property, plant and equipment
and intangible Assets (2,930) (13,189)
Purchase of held-for-trading investments (174,150) (96,346)
(Increase) in prepayments - (510,438)
Capital expenditure in investment property (713,746) (1,216,902)
Dividend income 6,735 94,591
Interest received 22,855 69,111
------------ ------------
Net cash flows (used in) investing activities (610,698) (822,789)
------------ ------------
Financing activities
Proceeds from issue of shares 260 -
Proceeds from borrowings 1,646,012 -
Repayment of borrowings (1,388,856) (1,738,948)
Interest paid (931,013) (1,101,125)
------------ ------------
Net cash flows (used in) financing activities (673,597) (2,840,073)
------------ ------------
Net Increase / (Decrease) in cash and cash
equivalents (397,703) (2,971,387)
Net foreign exchange difference 15,294 101,457
Cash and cash equivalents at 1(st) April
2010 2,573, 422 5,443,352
Cash and cash equivalents at 31(st) March
2011 2,191,013 2,573,422
-------------------------------------------------- ------------ ------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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