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Development Secs.PLC DSC Half Yearly Report

  Development Secs.PLC (DSC) - Half Yearly Report

RNS Number : 2670P
Development Securities PLC
23 October 2012




23rd October 2012

                                      

                 DEVELOPMENT SECURITIES PLC - INTERIM RESULTS

                  FOR THE SIX MONTHS ENDED 31st August 2012

    Trading gains strengthening as further results of strategy are secured





Development Securities PLC  ("Development Securities" or  the "Company"),  the 
leading property development and  investment company, today announces  interim 
results for the six months ended 31st August 2012.





Key financials:

· Net  assets  attributable  to  shareholders  of  £304.4  million  (29th 
February 2012: £311.3  million), a reduction  of £6.9 million  (2.2 per  cent) 
after:

o £3.9  million final  dividend in  respect of  the 14-month  period to  29th 
February 2012

o £3.7 million of negative interest rate swap valuations

o £4.4  million  of  negative valuation  movements  in  investment  portfolio 
including our share of joint venture investment assets



· £11.9 million of gains from development and trading portfolio increased
over prior periods (29th February 2012: £8.6 million, 31st December 2010: £5.0
million) - further profits to  be generated in the  next twelve months and  in 
the medium-term



· Progress made to realise cash from legacy assets:

o Planning consent achieved at 19-acre residential land in Broughton

o Planning application submitted for  mixed-use scheme anchored by  Morrisons 
foodstore at 399 Edgware Road



·  Realised   gains   recycled   into  further   selected   real   estate 
opportunities. Acquisitions  (including  those  in joint  venture)  of  £161.1 
million in the year to date including two bank loan portfolios at £103 million
and £40 million 



· Net debt of £147.1 million representing gearing of 48.3 per cent  (29th 
February 2012: £152.9 million and 48.8 per cent)



· Interim dividend of 2.4 pence per share (30th June 2011: 2.4 pence  per 
share)









Financial summary:

unaudited for the six months ended 31st August 2012



                                 31st August 2012 30th June 2011 29th February
                                                                         2012*
                                        unaudited      unaudited       audited
                                        £ million      £ million     £ million
Loss before income tax                      (0.7)          (1.3)        (10.1)
Net assets attributable to                  304.4          329.6         311.3
Shareholders
Net debt**                                (147.1)        (128.5)       (152.9)
Basic and diluted loss per share            (1.4)          (0.9)        (10.3)
(pence)
Basic net assets per share***                 249            269           254
(pence)
Dividends per share declared***               2.4            2.4           5.6
(pence)



* 14-month period to 29th February 2012

** Refer notes 10 and 17

*** Refer note 17





For further enquiries:

Michael Marx/Graham Prothero/Lucy Grimble

Development Securities PLC: 020 7828 4777



Tom Nutt/Bethan Halls

The Communication Group plc: 020 7630 1411









Chairman's statement





It is pleasing to report that in the  six months to 31st August 2012, we  have 
realised gains of £11.9 million within our development and trading  portfolio. 
These profits are an increase over the £8.6 million of gains that we  reported 
in the 14-month  period to 29th  February 2012  and also the  £5.0 million  of 
gains reported in the year to 31st December 2010. We remain confident that  we 
will unlock a series  of further gains  in the next twelve  months and in  the 
medium-term through disposals of selected assets. As anticipated, the  results 
of our  strategy are  coming towards  fruition. Notwithstanding,  against  the 
backdrop of weak economic activity and continued downward pressure on  capital 
returns across the majority of the market, your Company reports a pre-tax loss
of £0.7 million for the six months to 31st August 2012, reduced from the  loss 
of £1.3 million for the six months to 30th June 2011.

Net assets  attributable to  Shareholders reduced  by £6.9  million to  £304.4 
million from £311.3 million at 29th February 2012, equivalent to 249 pence per
share as compared to 254 pence per share as at 29th February 2012. As well  as 
the approved 2012 final dividend of £3.9 million, the main components to  this 
reduction were negative valuation movements of £4.4 million in our  investment 
portfolio including our  share of  joint venture investment  assets, and  £3.7 
million negative interest rate swap valuations. The Directors have declared an
interim dividend of 2.4 pence per share payable on 30th November 2012 to those
shareholders on the register on 2nd November 2012 bringing the total dividends
approved since the August 2009 equity raise to £16.7 million or 15.2 pence per
share.

Market overview

The UK economy entered double-dip recession  earlier this year in the face  of 
continuing uncertainty within  the euro-zone  and a  gradually slowing  global 
economy. This recession, together  with the accompanying  record low level  of 
interest rates, effectively  triggered the valuation  adjustments within  both 
our investment portfolio and interest rate hedging strategy and thus  hindered 
our ability to report a growth in net assets in this period. It is our  belief 
that in due  course both  of these valuation  adjustments will  unwind in  our 
favour as and when economic growth emerges.

We believe that our strategy  is the right one for  the current market. In  an 
economy which is not generating GDP growth, let alone a double-dip  recession, 
it would be unrealistic to expect any significant rental growth to emerge on a
consistent basis from the property sector. With government policy now holding
interest rates at an all-time low, the prospect of any further yield shift  to 
sustain or grow property values  is almost non-existent. Accordingly, we  will 
continue to identify those assets where we can apply our real estate expertise
to drive  capital growth  and  deliver strong  returns.  These gains  will  be 
secured both by capturing the value uplift created by repositioning  redundant 
or functionally obsolete real estate into sectors where demand is in  evidence 
and by taking  advantage of  other pricing  inefficiencies in  the market  via 
trading activity.

Disposals

A number of realisations  were achieved during the  six months to 31st  August 
2012 as we recycled  cash from those development  and trading assets  acquired 
since July  2009. In  particular,  the sales  of  the residential  and  retail 
components at Westminster  Palace Gardens  were completed  for £21.9  million, 
realising  an  additional  profit  of   £1.5  million.  At  the  Wick   Site, 
Littlehampton, we  disposed of  the property  to Morrisons  for £12.5  million 
realising £2.4 million of profit. Sales within the Rock portfolio, which  was 
acquired in 2010  from a  bank, continued  on plan  with the  disposal of  the 
42,000 sq. ft. retail park in Burnley for £6.5 million, realising a profit  of 
£0.9 million. 66 per cent by value  of the Rock portfolio has now been  sold, 
generating cumulative revenue and  profits of £30.0  million and £6.4  million 
respectively. In July 2012,  at The MVMNT in  Greenwich town centre, the  £110 
million mixed-use scheme in  joint venture with Cathedral  Group, we sold  the 
residential land element to Willmott Dixon  for £16.2 million and disposed  of 
the 358 bed student village component to McLaren for £9.0 million, enabling us
to report an initial gain of £1.3 million.

Legacy assets

Good progress  has also  been  achieved at  two  of our  significant  'legacy' 
assets, at our residential land in Broughton, near Chester and at 399  Edgware 
Road, North London. In  September, we were advised  by the Welsh Minister  for 
Environment, Sustainability and Housing that planning consent had been granted
in respect of the  19-acre residential development site  in Broughton. In  the 
interim, the land had been marketed for sale and is now under offer to a house
builder at a price  in line with  our expectations. At  399 Edgware Road,  we 
have recently submitted  a planning application  for a mixed-use  regeneration 
scheme following positive  feedback from our  public consultation. The  scheme 
will be anchored by an 80,000 sq. ft. food store pre-let to Morrisons  subject 
to planning.



Planning and letting activity

Further progress  was achieved  at Cross  Quarter, Abbey  Wood in  South  East 
London where we  signed an  agreement with  Sainsbury's for  a 25-year  lease, 
subject to  planning,  for a  46,000  sq. ft.  net  sales area  foodstore.  A 
planning application is scheduled for submission in Q1 2013 following a recent
positive public consultation process.

At Eastgate Quarter, Llanelli, the 72,000 sq. ft. edge of town leisure scheme,
letting interest has been  strong and the  scheme is now  72 per cent  pre-let 
with a  further  12  per  cent  of space  under  offer.  It  is  particularly 
gratifying to note that the quality of this new development was able to secure
such a strong  line-up of tenants  prior to practical  completion in  November 
2012. Accordingly, we anticipate a disposal early in 2013.

At The Old Vinyl Factory  in Hayes, West London, we  submitted in July 2012  a 
planning application  for a  1.5 million  sq. ft.  mixed-use scheme  following 
positive public consultation.  Determination of the  planning application  is 
anticipated later this year.

In April  2012,  we  entered  into  a joint  venture  with  Realstar  for  the 
acquisition of  a vacant  East  London residential  building adjacent  to  the 
Olympic Park for  £15.7 million.  Wick Lane  Wharf comprises  112 units  over 
116,000 sq. ft. and an additional 12,000 sq. ft. of retail/employment  space. 
The residential apartments have been refurbished and mostly let. We have  been 
able to  secure  rental  tones  significantly  better  than  our  expectation, 
enabling us to create a successful en bloc rental investment.

Acquisitions

In August 2012, we entered  into a joint venture  with Pears Group to  acquire 
from NAMA (National Asset  Management Agency), a portfolio  of loans for  £103 
million. The loans, which were secured against 39 investment and  development 
assets, comprise a majority in the Central London residential market, with the
remainder incorporating a number of  neighbourhood retail schemes anchored  by 
Tesco convenience  stores.  Some  disposals of  property  have  already  been 
achieved and the loans repaid to the joint venture. The remaining  properties 
will  either  be  sold  or  actively  repositioned  through  change  of   use, 
refurbishment and other asset management initiatives by the end of 2013.

In September 2012, in partnership with Cathedral Group, the Company  announced 
that it had acquired a 2-acre freehold and 17-acre leasehold interest with  32 
years remaining  in  a  regeneration  site, Morden  Wharf,  on  the  Greenwich 
Peninsula. The  partnership will  develop a  masterplan to  bring forward  the 
development of a residential-led, mixed-use scheme  on the site which has  500 
metres of  Thames frontage  and is  adjacent to  the O2  Arena. Previously  a 
glucose factory developed by Tate and Lyle in the 1960s, the 19-acre site  has 
been cleared and remediated, and is  vacant except for an office building  and 
two warehouses totalling circa 128,000 sq. ft.

Earlier this month, we completed the acquisition of a £40 million portfolio of
bank loans, secured against 17 investment and development assets. These assets
are located in London and the South  East of England and comprise 76 per  cent 
commercial and 24 per cent residential assets. The Company expects to  realise 
the repayment of the loans through the sale of all of the assets as rapidly as
markets will allow. The  Company anticipates that  returns generated from  the 
realisation of these loans will approximate to those normally achieved  within 
its current risk adjusted return parameters.

Investment portfolio



During the  period, our  investment portfolio,  including our  share of  joint 
venture investment  assets,  declined  by £4.4  million,  approximating  to  a 
reduction of 1.7 per cent. This  compared positively against the 2.4 per  cent 
decline in the 6-month  universal IPD index  which includes representation  of 
Central London, out of town shopping centres and leisure, sectors which showed
a predominant  positive capital  movement in  the period.  Void rates  in  our 
directly held investment  portfolio decreased to  8.3 per cent  in the  period 
from 11.4 per cent as at 29th February 2012.



The reduction in the value of our investment portfolio was largely a result of
declining yields in the secondary retail sector where capital falls in  excess 
of 5 per cent have been the norm. In addition, the performance was impacted by
valuation falls on certain assets as a result of specific property events such
as the  administration  of Clinton  Cards  which affected  our  properties  in 
Nailsea, Ringwood and Carmarthen.  As our experience of  the Peacocks CVA  has 
confirmed earlier this year, it is possible to see values rebound as and  when 
re-lettings are  secured  post-administration.  We  remain  committed  to  our 
principles  of  stock  selection  and  active  asset  management  across   our 
investment assets  and we  believe that  this will  continue to  enable us  to 
offset some of the valuation declines affecting areas of our portfolio.







Finance



Our net debt at 31st August  2012 was £147.1 million, representing gearing  of 
48.3 per cent. Including our share  of joint ventures, it was £206.1  million, 
representing 67.7 per cent against our net  asset value as at that date,  with 
the weighted  average  maturity of  our  borrowings being  a  respectable  7.4 
years.

During June and July 2012, the Group purchased 123,397 of its own ordinary
shares at an average price of 137.4 pence per share, which are now held as
Treasury shares. This reduced the balance of shares with voting rights to
122,229,107 shares.

People

On 19th  June 2012,  we  notified the  market  that Graham  Prothero,  Finance 
Director, will be  leaving to  join the  board of  Galliford Try  plc. We  are 
pleased to announce that a new Group Finance Director has now been  appointed, 
Marcus Shepherd,  who will  join the  board on  a date  to be  advised in  due 
course. Marcus will join Development Securities from Aviva Investors where  he 
has been Finance Director (Global Real Estate) since January 2009.



We were sorry to see both Victoria Mitchell and Michael Soames step down  from 
the Board, both  after nearly  nine years  of truly  supportive and  committed 
service to  your Company.  We much  appreciated the  level of  experience  and 
expertise they brought to our Board deliberations for which we must remain  in 
their debt.



It remains for me also  to thank our management  team, staff and advisors  for 
their commitment,  hard  work  and  professionalism during  what  has  been  a 
particularly productive period in the execution of our strategic objectives.







D S Jenkins

Chairman







Financial review



Total comprehensive income  for the  six months was  a loss  of £2.9  million, 
(30th June 2011: £0.6 million loss, 29th February 2012: £15.4 million  loss). 
After the dividend payment  of £3.9 million, net  asset value attributable  to 
shareholders fell by £6.9  million to £304.4 million  (30th June 2011:  £329.6 
million, 29th February 2012: £311.3 million).

Profits  from  development  and  trading  operations  were  £11.9  million  as 
realisations gained momentum (29thFebruary  2012: £8.6 million, 31st  December 
2010: £5.0  million).  These were  generated  both from  direct  real  estate 
holdings, amounting to £9.1 million  recognised within gross profit, and  from 
indirect holdings,  with  £1.5 million  arising  in joint  ventures  and  £1.3 
million captured as increases in fair value of financial instruments (both  of 
the latter supported by underlying realised profits).

Net revaluations of our investment assets including those within our share  of 
joint ventures,  was a  negative  £4.4 million.  This comprised  of:  negative 
revaluations in our directly held  investment portfolio of £7.3 million  (30th 
June 2011:  £1.3  million  gain,  29th  February  2012:  £4.8  million  loss), 
resulting in a reduced operating profit of £0.9 million (30th June 2011:  £1.9 
million, 29th February 2012: £1.0 million);  and a revaluation uplift of  £2.9 
million in respect of our investment assets held in joint venture.

Net finance  costs were  £5.8  million (30th  June  2011: £4.0  million,  29th 
February 2012: £10.6 million) including £0.9 million of mark-to-market  change 
in respect  of currency  and interest  rate swaps.  This was  compounded by  a 
mark-to-market charge of £2.8 million in respect of the currency and  interest 
rate swap reported in Other comprehensive income.

Following the completion of  the residential and  retail sales at  Westminster 
Palace Gardens, the  partner's share, carried  as a minority  interest in  the 
Group balance  sheet, was  settled,  which is  reflected  within equity  as  a 
reduction in non-controlling interests to £0.1 million (30th June 2011:  £nil, 
29th February 2012: £1.9 million).

During the period we secured  new bank finance of  £62.4 million from HSBC  in 
respect of the £103 million loan portfolio acquisition (in joint venture  with 
Pears Group), and £11.0 million from Royal Bank of Scotland in respect of  the 
acquisition of  Wick Lane  Wharf,  in joint  venture  with Realstar.  We  also 
arranged development finance of  £4.0 million in respect  of HDD projects.  In 
October we  were pleased  to conclude  a twelve-month  extension to  our  bank 
facility of  £47.5  million  with  Lloyds Banking  Group  in  respect  of  the 
Manchester Arena Complex, taking maturity to June 2014.

Net debt as at  31st August was £147.1  million, representing gearing of  48.3 
per cent (30th  June 2011:  £128.5 million and  39.0 per  cent, 29th  February 
2012: £152.9 million and 48.8 per cent). In addition our share of net debt in
joint ventures increased to £59.0 million, increasing our effective gearing to
67.7 per cent (30th  June 2011: 47.3  per cent, 29th  February 2012: 58.9  per 
cent). The  weighted  average maturity  of  our debt  is  8.8 years,  with  a 
weighted average  interest  rate of  6.0  per  cent. The  proportion  of  our 
portfolio which is  subject to fixed  interest rates has  reduced to 87.6  per 
cent. If our share  of debt in joint  ventures is included, weighted  average 
maturity is 7.4  years, the average  interest rate  is 5.4 per  cent, and  the 
proportion of fixed rate debt is 73.4 per cent.

Our Annual Report  to 29th February  2012 describes our  risk profile and  our 
approach to  managing  our  principal risks.  These  principal  risks  remain 
unchanged as at 31st August 2012. With regard to the second half of the  year, 
the Board remains cautious in its view of macro-economic prospects, as set out
in the Chairman's Statement. We maintain  a strong focus on potential  tenant 
defaults, and other counterparty risks.



Portfolio analysis





Tenant profile

1 FTSE 100            3%
2 Government          1%
3 PLC/Nationals      62%
4 Regional Multiples 16%
5 Local Traders      18%



Lease profile

1 0-5 years   37%
2 5-10 years  32%
3 10-15 years 14%
4 15-20 years  8%
5 20 years+    9%



Location profile

1 London     13%
2 South East 44%
3 South West 16%
4 Midlands    4%
5 North      15%
6 Wales       8%



Analysis by sector

1 Retail      58%
2 Office       7%
3 Mixed       25%
4 Industrial   9%
5 Residential  1%



Income generating properties as at 31st August 2012



Top five occupiers                 31st August 2012
                   Annual rent % of contracted rent

                           £'m
Waitrose                  1.82                11.95
Primark Stores            0.49                 3.19
Martin McColl Ltd         0.47                 3.09
Sportsworld               0.46                 2.99
Brausch & Co              0.42                 2.75



Top five occupiers               29th February 2012
                   Annual rent % of contracted rent

                           £'m
Waitrose                  1.82                12.22
Primark Stores            0.49                 3.26
Martin McColl Ltd         0.47                 3.16
Sports World              0.46                 3.06
Brausch & Co              0.42                 2.81





Income generating properties - Like-for-like                  31st August 2012
rental income received
                         Properties owned                            Total net
                    throughout the period Acquisitions Disposals rental income

                                £ million    £ million £ million     £ million
Investment                            7.0          1.0         -           8.0
properties
Development and                       0.9          0.3       0.2           1.4
trading properties
Joint ventures                        0.8          0.8         -           1.6
                                      8.7          2.1       0.2          11.0









                                                                30th June 2011
                         Properties owned                            Total net
                    throughout the period Acquisitions Disposals rental income

                                £ million    £ million £ million     £ million
Investment                            6.3            -       0.1           6.4
properties
Development and                       1.7          0.1       0.5           2.3
trading properties
Joint ventures                        0.8            -         -           0.8
                                      8.8          0.1       0.6           9.5





Investment property - key statistics

                                                                          Rate of
                                                                                    rent
                                                                 Voids collections
                                                                  (excluding   within 30
                            Number      New Initial           developable        days
                                  of lettings   yield                  land)
         Portfolio Contracted assets       in      in Equivalent                       %
             value       rent   held   period  period      yield           %

         £ million  £ million    No.        £       %          %
                                     million/
                                         '000
                                       sq.ft.
31st         231.4       15.2     42   £0.6 /     7.5        7.6         8.3        95.3
August                                     40
2012                                   sq.ft.
29th         237.9       14.9     42   £0.8 /     7.3        7.5        11.4        95.3
February                                   67
2012                                   sq.ft.
31st         199.2       12.5     37   £1.3 /     6.1        7.3         8.0        92.3
December                                  101
2010                                   sq.ft.
31st         181.0       11.6     33   £1.3 /     6.8        8.1         7.5        91.9
December                                   99
2009                                   sq.ft.





Consolidated statement of comprehensive income

             unaudited for the six months ended 31st August 2012



                                                                                                       14-month
                                                                                         Six       Six   period
                                                                                   months to months to    ended
                                                                                        31st 30th June     29th
                                                                                      August      2011 February
                                                                                        2012               2012
                                                                                   unaudited unaudited  audited
                                                                             Notes £ million £ million        £
                                                                                                        million
Revenue                                                                        2        56.7      19.0     80.0
Direct costs                                                                   2      (41.8)    (12.2)   (59.6)
Gross profit                                                                   2        14.9       6.8     20.4
Operating costs                                                                2       (6.7)     (6.2)   (14.8)
Gain on disposal of investment properties                                      2           -         -      0.2
(Loss)/gain on revaluation of investment property
portfolio                                                                      2       (7.3)       1.3    (4.8)
Operating profit                                                                         0.9       1.9      1.0
Other income                                                                   2         0.3         -      0.7
Exceptional impairment and provision for serviced office segment                                    

                                                                                           -         -    (2.8)
Share of post-tax profits of joint                                             2         3.9       0.8
ventures                                1.6
Profit before interest and income tax                                          2         5.1       2.7      0.5
Finance income                                                                 3         1.1       1.3      2.6
Finance costs                                                                  3       (6.9)     (5.3)   (13.2)
Loss before income tax                                                                 (0.7)     (1.3)   (10.1)
Income tax                                                                     4       (1.0)       0.1    (1.9)
Loss after income tax for the period                                                   (1.7)     (1.2)   (12.0)
(Loss)/profit attributable to:
Owners of the parent                                                                   (1.6)     (1.2)   (12.6)
Non-controlling interest                                                               (0.1)         -      0.6
                                                                                       (1.7)     (1.2)   (12.0)
Other comprehensive income:
Loss for the period                                                                    (1.7)     (1.2)   (12.0)
Loss on revaluation of operating properties                                                -         -    (0.1)
Change in value of available-for-sale financial assets                                   1.3         -        -
(Loss)/gain on valuation of cross-currency interest rate swap                                       

                                                                                       (2.8)       0.8    (4.3)
Deferred income tax credit/(charge)                                            4         0.3     (0.2)      1.0
Total comprehensive income for the period                                              (2.9)     (0.6)   (15.4)
Attributable to:
Owners of the parent                                                                   (2.8)     (0.6)   (16.0)
Non-controlling interest                                                               (0.1)         -      0.6
                                                                                       (2.9)     (0.6)   (15.4)
Basic loss per share                                                           6      (1.4)p    (0.9)p  (10.3)p
Diluted loss per share                                                         6      (1.4)p    (0.9)p  (10.3)p



                                      

Notes 1 to 17 form an integral part of these condensed Consolidated interim
financial statements



                          Consolidated balance sheet

                       unaudited as at 31st August 2012



                                           31st August 30th June 29th February
                                                  2012      2011          2012
                                             unaudited unaudited       audited
                                     Notes   £ million £ million     £ million
Non-current assets
Direct real estate interests
Investment properties                  7         231.4     210.0         237.9
Operating property                                 0.9       1.2           0.9
Trade and other receivables                        5.0       4.4           4.3
                                                 237.3     215.6         243.1
Indirect real estate interests
Investments in associates                          4.3       2.0           4.3
Investments in joint ventures                     44.4      22.5          26.6
Intangible assets - goodwill                       1.3       1.3           1.3
Development participation rights                   5.0       5.0           5.0
Loans to joint operations              9          20.4      16.9          20.9
Loans to other real estate
businesses                                         8.5       8.5           8.6
                                                  83.9      56.2          66.7
Other non-current assets
Other plant and equipment                          3.4       5.1           3.4
Deferred income tax assets                         2.6       4.6           3.2
Derivative financial instruments                     -       6.2             -
                                                   6.0      15.9           6.6
Total non-current assets                         327.2     287.7         316.4
Current assets
Inventory - development and trading
properties                             8         147.1     178.8         155.2
Other financial assets                             4.0       0.2           1.7
Trade and other receivables                       18.2      24.4          28.8
Monies held in restricted accounts
and deposits                                      13.5      15.2          14.6
Cash and cash equivalents                         40.7      60.4          35.6
                                                 223.5     279.0         235.9
Total assets                                     550.7     566.7         552.3
Current liabilities
Trade and other payables                        (29.6)    (26.3)        (26.5)
Current income tax liabilities                   (1.6)     (0.6)         (1.1)
Borrowings                            10         (5.9)     (6.5)         (9.9)
                                                (37.1)    (33.4)        (37.5)
Non-current liabilities
Borrowings                            10       (195.4)   (197.6)       (193.2)
Derivative financial instruments                 (8.3)         -         (2.5)
Deferred income tax liabilities                  (2.6)     (4.6)         (3.2)
Provisions for other liabilities and
charges                               11         (2.8)     (1.5)         (2.7)
                                               (209.1)   (203.7)       (201.6)
Total liabilities                              (246.2)   (237.1)       (239.1)
Net assets                                       304.5     329.6         313.2
Equity
Share capital                         12          61.2      61.2          61.2
Other reserves                                   142.6     148.0         144.0
Retained earnings                                100.6     120.4         106.1
Equity attributable to the owners of
the parent                                       304.4     329.6         311.3
Non-controlling interests                          0.1         -           1.9
Total equity                                     304.5     329.6         313.2
                                                               
Basic/diluted net assets per share
attributable to owners of the parent   6     249p/249p 269p/270p     254p/254p
Basic net assets per share based on
total net assets                       6          249p      269p          256p





Notes 1 to 17 form an integral part of these condensed Consolidated interim
financial statements.

Consolidatedstatement of changes in equity

unaudited as at 31st August 2012

                                                                  Non-
                         Share     Other  Retained         controlling
                       capital  reserves  earnings   Total    interest   Total
                             £                           £                   £
                       million £ million £ million million   £ million million
At 1st January 2011       61.2     147.4     124.5   333.1           -   333.1
 Loss for the six
months ended 30th June
2011                         -         -     (1.2)   (1.2)           -   (1.2)
 Other comprehensive
income:
 Gain on valuation
of cross-currency
interest rate swap           -       2.9         -     2.9           -     2.9
 Exchange loss on
valuation of
cross-currency
 interest rate swap        -     (2.1)         -   (2.1)           -   (2.1)
 Deferred income tax
charged directly to
equity                       -     (0.2)         -   (0.2)           -   (0.2)
Total comprehensive
income for the six
month period ended
30th June 2011               -       0.6     (1.2)   (0.6)           -   (0.6)
 Final dividend
relating to 2010             -         -     (2.9)   (2.9)           -   (2.9)
Total contributions by
and distributions to
owners of the Company        -         -     (2.9)   (2.9)           -   (2.9)
Balance at 30th June
2011                      61.2     148.0     120.4   329.6           -   329.6
 Loss for the eight
months ended 29th
February 2012                -         -    (11.4)  (11.4)         0.6  (10.8)
 Other comprehensive
income:
 Loss on revaluation
of operating
properties                   -     (0.1)         -   (0.1)           -   (0.1)
 Loss on valuation
of cross-currency
interest rate swap           -     (8.1)         -   (8.1)           -   (8.1)
 Exchange gain on
valuation of
cross-currency
 interest rate swap        -       3.0         -     3.0           -     3.0
 Deferred income tax
credited directly to
equity                       -       1.2         -     1.2           -     1.2
Total comprehensive                                                  
income for the eight
month period ended                                                 0.6
29th February 2012           -     (4.0)    (11.4)  (15.4)              (14.8)
 Interim dividend
relating to 2012             -         -     (2.9)   (2.9)           -   (2.9)
Total contributions by
and distributions to
owners of the Company        -         -     (2.9)   (2.9)           -   (2.9)
Transactions with                                -       -
non-controlling
interest                     -         -                           1.3     1.3
Balance at 29th                                                    1.9
February 2012             61.2     144.0     106.1   311.3               313.2
 Loss for the six                                              (0.1)
months ended 31st
August 2012                  -         -     (1.6)   (1.6)               (1.7)
 Other comprehensive
income:
 Change in value of
available-for-sale
financial assets             -       1.3         -     1.3           -     1.3
 Loss on valuation
of cross-currency
interest rate swap           -     (4.8)         -   (4.8)           -   (4.8)
 Exchange gain on
valuation of
cross-currency
 interest rate swap        -       2.0         -     2.0           -     2.0
 Deferred income tax
credited directly to
equity                       -       0.3         -     0.3           -     0.3
Total comprehensive                                                  
income for the six
month period ended                                               (0.1)
31st August 2012             -     (1.2)     (1.6)   (2.8)               (2.9)
Purchase of treasury
shares                       -     (0.2)         -   (0.2)           -   (0.2)
 Final dividend
relating to 2012             -         -     (3.9)   (3.9)           -   (3.9)
Total contributions by
and distributions to
owners of the Company        -     (0.2)     (3.9)   (4.1)           -   (4.1)
Transactions with
non-controlling
interest                     -         -         -       -       (1.7)   (1.7)
Balance at 31st August                                             0.1
2012                      61.2     142.6     100.6   304.4               304.5

                                      

                                      

 Notes 1 to 17 form an integral part of these condensed Consolidated interim
                            financial statements.

                       Consolidated cash flow statement

             unaudited for the six months ended 31st August 2012



                                                 
                                                                      14-month
                                     Six months to Six months to  period ended
                                       31st August     30th June 29th February
                                              2012          2011          2012
                                         unaudited     unaudited       audited
                               Notes     £ million     £ million     £ million
Cash flows from operating       13            27.6        (25.1)
activities                                                              (18.9)
Cash used in operations:
Interest paid                                (6.0)         (5.3)        (12.3)
Income tax paid                              (0.2)         (0.1)         (0.3)
Net cash generated from/(used)                21.4        (30.5)
in operating activities                                                 (31.5)
Cash flows from investing
activities:
Interest received                              0.4           0.4           1.0
Proceeds on disposal of                                      0.1
investment properties                            -                         0.3
Purchase of plant and                        (0.3)         (0.7)
equipment                                                                (1.2)
Purchase of investment                       (1.3)         (9.5)
properties                                                              (22.2)
Purchase of investments in                  (14.2)        (12.1)
joint ventures and associates                                           (16.9)
Investment in financial assets               (9.9)         (3.2)         (8.7)
Cash inflow from joint
ventures                                       0.5             -             -
Cash inflow from financial
assets                                        10.1             -           2.3
Net cash used in investing                  (14.7)        (25.0)
activities                                                              (45.4)
Cash flows from financing
activities:
Dividends paid                                   -             -         (5.9)
Repayments of borrowings                     (9.0)         (2.1)        (18.7)
New bank loans raised (net of                  9.8          29.3
transaction costs)                                                        46.3
Equity repayment from
non-controlling interest                     (1.7)             -           1.0
Payments to purchase Treasury
shares                                       (0.2)             -             -
Decrease in monies held in
restricted accounts and
deposits                                       1.1          11.8          12.4
Net cash generated from                        0.0          39.0
financing activities                                                      35.1
Net increase/(decrease) in                     6.7        (16.5)
cash and cash equivalents                                               (41.8)
Cash and cash equivalents at                  34.4          76.3
the beginning of the period                                               76.3
Net foreign currency                                          
differences arising on
                                             (0.4)           0.3             
re-translation of cash and
cash equivalents                                                         (0.1)
Cash and cash equivalents at                  40.7          60.1
the end of the period                                                     34.4
Cash and cash equivalents
comprise:
Cash at bank and in hand                      40.7          60.4          35.6
Bank overdrafts                                  -         (0.3)         (1.2)
Cash and cash equivalents at                  40.7          60.1
the end of the period                                                     34.4
                                                                      14-month
                                     Six months to Six months to  period ended
                                       31st August     30th June 29th February
                                              2012          2011          2012
                                         unaudited     unaudited       audited
                               Notes     £ million     £ million     £ million
Net debt comprises:
Cash and short-term deposits                  40.7          60.4          35.6
Monies held in restricted                     13.5          15.2
accounts and deposits                                                     14.6
Financial liabilities:
Current borrowings              10           (5.9)         (6.5)         (9.9)
Non-current borrowings          10         (195.4)       (197.6)       (193.2)
Net debt                                   (147.1)       (128.5)       (152.9)



                                      

 Notes 1 to 17 form an integral part of these condensed Consolidated interim
                            financial statements.

                  Notes to the interim financial information

unaudited for the six months ended 31st August 2012



1. BASIS OF PREPARATION AND ACCOUNTING POLICIES



a) General information

These condensed Consolidated interim financial  statements for the six  months 
ended  31st  August  2012  comprise  the  results  of  the  Company  and   its 
subsidiaries and were authorised by the Board for issue on 22nd October 2012.



The Company is a public  limited company which is  listed on the London  Stock 
Exchange and  is incorporated  and domiciled  in the  UK. The  address of  its 
registered office is Portland House, Bressenden Place, London, SW1E 5DS.



The condensed  Consolidated  interim  financial  statements  do  not  comprise 
statutory accounts within  the meaning  of section  434 of  the Companies  Act 
2006. Statutory accounts  for the  14-month period ended  29th February  2012, 
which were  prepared  in  accordance with  International  Financial  Reporting 
Standards ("IFRS"), as endorsed  by the European Union,  were approved by  the 
board of  directors  on  1st  May  2012 and  delivered  to  the  Registrar  of 
Companies. The report of the auditors  on those accounts was unqualified,  did 
not contain an emphasis of matter paragraph and did not contain any  statement 
under section 498 of the Companies Act 2006.



These Consolidated  interim  financial  statements  have  been  reviewed,  not 
audited.



b) Basis of preparation of half-year report

These condensed Consolidated interim financial  statements for the six  months 
ended 31st August 2012  have been prepared in  accordance with the  Disclosure 
and Transparency Rules of  the Financial Services Authority  and with IAS  34, 
'Interim financial reporting' as adopted by the European Union. The  condensed 
Consolidated interim financial statements should  be read in conjunction  with 
the Group's financial statements for  the 14-month period ended 29th  February 
2012, which have  been prepared  in accordance with  IFRSs as  adopted by  the 
European Union.



Going concern basis

The Group has considerable financial resources. Rental income continues to be
robust, with the  risk of  significant default  assessed by  the Directors  as 
low. Development and trading activities  are well diversified across  regions 
and sectors. Debt finance is secured for appropriate periods and the Group is
comfortable with its covenant  positions. As a  result the Directors  believe 
that the  Group is  well placed  to manage  its business  risks  successfully, 
despite the  continuing  uncertain economic  outlook.  The Directors  have  a 
reasonable expectation that the Company and the Group have adequate  resources 
to continue in operational  existence for the  foreseeable future. Thus  they 
continue to  adopt the  going concern  basis of  accounting in  preparing  the 
financial statements.



c) Judgements and key sources of estimation uncertainty

The  preparation  of   financial  statements  requires   management  to   make 
judgements,  assumptions  and  estimates   that  affect  the  application   of 
accounting policies and reported amounts of assets and liabilities, income and
expense. Actual results may differ from these estimates.



In preparing  the condensed  Consolidated interim  financial information,  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 
that applied to the Consolidated financial statements for the 14-month  period 
ended 29th February 2012.



d) Accounting policies

The accounting  policies  applied  in  these  condensed  Consolidated  interim 
financial statements  are  consistent with  those  of the  Group's  financial 
statements for the 14-month period ended  29th February 2012, as described  in 
those financial statements.



New and amended standards and interpretations need to be adopted in the  first 
interim financial statements  issued after  their effective date  (or date  of 
early adoption). There are no new IFRSs  or IFRICs that are effective for  the 
first time for this interim period that  would have a material impact on  this 
Group.



e) Financial risk management



Financial risk factors



The Group's activities expose it to a variety of financial risks: market  risk 
(including currency risk, fair  value interest rate  risk, cash flow  interest 
rate risk and price risk), credit risk and liquidity risk.



The interim condensed  Consolidated financial  statements do  not include  all 
financial risk management information and  disclosures required in the  annual 
financial statements,  and should  be  read in  conjunction with  the  Group's 
financial statements as at 29th February 2012.



There have  been no  changes in  risk  management or  in any  risk  management 
policies since the period end.



Fair value estimation



The table  below analyses  financial  instruments carried  at fair  value,  by 
valuation method. The different levels have been defined as follows:

· Quoted  prices  (unadjusted)  in  active markets  for  identical  assets  or 
liabilities (level 1).

· Inputs other than quoted prices included within level 1 that are  observable 
for the asset or liability, either directly (that is, as prices) or indirectly
(that is, derived from prices) (level 2).

· Inputs for the asset  or liability that are  not based on observable  market 
data (that is, unobservable inputs) (level 3).





The following  table presents  the  Group's assets  and liabilities  that  are 
measured at fair value at 31st August 2012:

                                                 Level 1 Level 2 Level 3 Total
Assets
Derivative financial instruments:
Cross-currency interest rate swap                      -       -       -     -
Derivative financial instruments at fair value
through profit or loss                                 -       -       -     -
Available-for-sale financial assets                    -       -    25.6  25.6
Total assets                                           -       -    25.6  25.6
Liabilities
Derivative financial instruments:
Cross-currency interest rate swap                      -   (6.8)       - (6.8)
Derivative financial instruments at fair value
through profit or loss                                 -   (1.5)       - (1.5)
Total liabilities                                      -   (8.3)       - (8.3)



The following  table presents  the  Group's assets  and liabilities  that  are 
measured at fair value at 30th June 2011:

                                            Level 1   Level 2   Level 3  Total
Assets
Derivative financial instruments:
Cross-currency interest rate swap                 -       6.2         -    6.2
Derivative financial instruments at fair
value through profit or loss                      -         -         -      -
Available-for-sale financial assets               -         -      21.9   21.9
Total assets                                      -       6.2      21.9   28.1
Liabilities
Derivative financial instruments:               -         -         -      -
Cross-currency interest rate swap                 -         -         -      -
Derivative financial instruments at fair
value through profit or loss                      -         -         -      -
Total liabilities                                 -         -         -      -


The following table presents the Group's assets and liabilities that are
measured at fair value at 29th February 2012:
                                            Level 1   Level 2   Level 3  Total
Assets
Derivative financial instruments:
Cross-currency interest rate swap                 -         -         -      -
Derivative financial instruments at fair
value through profit or loss                      -         -         -      -
Available-for-sale financial assets               -         -      25.9   25.9
Total assets                                      -         -      25.9   25.9
Liabilities
Derivative financial instruments:
Cross-currency interest rate swap                 -     (1.9)         -  (1.9)
Derivative financial instruments at fair
value through profit or loss                      -     (0.6)         -  (0.6)
Total liabilities                                 -     (2.5)         -  (2.5)



In the period there have been no significant changes in business circumstances
that affect  the fair  value of  the Group's  financial assets  and  financial 
liabilities. Continued uncertainty in the  Eurozone has had an adverse  effect 
on the Group's cross-currency interest rate swap.



There have been no reclassifications of financial assets.





2. SEGMENTAL ANALYSIS



For  management  purposes,  the  Group  is  organised  into  three   operating 
divisions, whose principal activities are as follows:



Investment              -  management  of  the  Group's  investment   property 
                        portfolio,  generating  rental  income  and  valuation 
                        surpluses from property management;
Development and Trading -  managing  the   Group's  development  and   trading 
                        properties.   Revenue   is   received   from   project 
                        management fees, development profits and the  disposal 
                        of inventory; and
Operating               - serviced office  operations. Revenue is  principally 
                        received from short-term licence fee income.



These divisions are the basis on which the Group reports its primary segmental
information. As at 31st  August 2012 all operations  occur and all assets  are 
located in the United Kingdom. As at 29th February 2012 the Group held  assets 
of £0.1 million located in The Netherlands and as at 30th June 2011 the  Group 
held assets of £0.3 million located in France and The Netherlands. All revenue
arises from continuing operations.















2. SEGMENTAL ANALYSIS continued



Six months to 31st August 2012 (unaudited)
                                                                                        Development                   
                                                                             Investment and trading Operating   Total 
                                                                              £ million   £ million £ million       £ 
                                                                                                              million
Segment revenue                                                                     8.0        46.7       2.0    56.7 
Direct costs                                                                      (1.6)      (37.6)     (2.6)  (41.8) 
Segment result                                                                      6.4         9.1     (0.6)    14.9 
Operating costs                                                                   (1.9)       (4.8)         -   (6.7) 
Loss on revaluation of investment property portfolio                              (7.3)           -         -   (7.3) 
Operating (loss)/profit                                                           (2.8)         4.3     (0.6)     0.9 
Other income                                                                        0.2         0.1         -     0.3 
Share of post-tax profits of joint                                                  2.4         1.5         -     3.9 
ventures
(Loss)/profit before interest and income tax                                      (0.2)         5.9     (0.6)     5.1 
Finance income                                                                      0.5         0.6         -     1.1 
Finance costs                                                                     (2.7)       (4.2)         -   (6.9) 
(Loss)/profit before income tax                                                   (2.4)         2.3     (0.6)   (0.7) 
Income tax                                                                                                      (1.0) 
                                                                                                                   
                                                                                                                      
Loss after income tax                                                                                           (1.7)
                                                                                                                      
Assets and liabilities                                                                                                
Segment assets                                                                    281.9       241.2       4.7   527.8 
Unallocated assets                                                                                               22.9 
Total assets                                                                                                    550.7 
                                                                                                                      
Segment liabilities                                                             (147.1)      (76.0)     (3.7) (226.8) 
Unallocated liabilities                                                                                        (19.4) 
Total liabilities                                                                                             (246.2) 
                                                                                                                      
                                                                                                                      
Revenue                                                                                                               
Rental income                                                                       8.0         1.4         -     9.4 
Operating property income                                                             -           -       2.0     2.0 
Project management fees                                                               -         0.6         -     0.6 
Trading property sales                                                                -        16.1         -    16.1 
Other trading property income                                                         -         1.4         -     1.4 
Construction contract revenue                                                         -         8.2         -     8.2 
Development proceeds                                                                  -        17.3         -    17.3 
Other                                                                                 -         1.7         -     1.7 
                                                                                    8.0        46.7       2.0    56.7 







                                                                               Six months to 30th June 2011 (unaudited)
                                                                                        Development                   
                                                                             Investment and trading Operating   Total 
                                                                              £ million   £ million £ million       £ 
                                                                                                              million
Segment revenue                                                                     6.6        10.4       2.0    19.0 
Direct costs                                                                      (1.0)       (8.6)     (2.6)  (12.2) 
Segment result                                                                      5.6         1.8     (0.6)     6.8 
Operating costs                                                                   (2.1)       (4.1)         -   (6.2) 
Gain on revaluation of investment property portfolio                                1.3           -         -     1.3 
Operating profit/(loss)                                                             4.8       (2.3)     (0.6)     1.9 
Share of post-tax profits/(losses) of joint                                         0.9       (0.1)         -     0.8 
ventures
Profit/(loss) before interest and income tax                                        5.7       (2.4)     (0.6)     2.7 
Finance income                                                                      0.7         0.6         -     1.3 
Finance costs                                                                     (3.2)       (2.1)         -   (5.3) 
Profit/(loss) before income tax                                                     3.2       (3.9)     (0.6)   (1.3) 
Income tax                                                                                                        0.1 
                                                                                                                   
                                                                                                                      
Loss after income tax                                                                                           (1.2)
                                                                                                                      
Assets and liabilities                                                                                                
Segment assets                                                                    254.7       249.2       7.3   511.2 
Unallocated assets                                                                                               55.5 
Total assets                                                                                                    566.7 
                                                                                                                      
Segment liabilities                                                             (149.4)      (73.6)     (3.0) (226.0) 
Unallocated liabilities                                                                                        (11.1) 
Total liabilities                                                                                             (237.1) 
                                                                                                                      
                                                                                                                      
2. SEGMENTAL ANALYSIS continued
                                                                                                                      

Revenue                                                                                                               
Rental income                                                                       6.4         2.3         -     8.7 
Operating property income                                                             -           -       2.0     2.0 
Project management fees                                                               -         0.1         -     0.1 
Asset management fees                                                               0.1         0.3         -     0.4 
Trading property sales                                                                -         1.5         -     1.5 
Other trading property income                                                         -         0.8         -     0.8 
Construction contract revenue                                                         -         3.6         -     3.6 
Development proceeds                                                                  -         1.6         -     1.6 
Other income                                                                        0.1         0.2         -     0.3 
                                                                                    6.6        10.4       2.0    19.0 





                       14-month period ended 29th February 2012 (audited) 
                                               Development
                                    Investment and trading Operating     Total
                                     £ million   £ million £ million £ million
Segment revenue                           17.1        58.4       4.5      80.0
Direct costs                             (3.7)      (49.9)     (6.0)    (59.6)
Segment result                            13.4         8.5     (1.5)      20.4
Operating costs                          (4.3)      (10.5)         -    (14.8)
Gain on disposal on investment
properties                                 0.2           -         -       0.2
Loss on revaluation of investment
property portfolio                       (4.7)           -     (0.1)     (4.8)
Operating profit/(loss)                    4.6       (2.0)     (1.6)       1.0
Other income                               0.3         0.4         -       0.7
Exceptional impairment and
provision for services office
segment                                      -           -     (2.8)     (2.8)
Share of post-tax profits of joint
venture                                    1.5         0.1         -       1.6
Profit/(loss) before interest and
income tax                                 6.4       (1.5)     (4.4)       0.5
Finance income                             1.4         1.2         -       2.6
Finance costs                            (8.6)       (4.6)         -    (13.2)
Loss before income tax                   (0.8)       (4.9)     (4.4)    (10.1)
Income tax                                                               (1.9)
                                                                            

Loss after income tax                                                   (12.0)
Assets and liabilities
Segment assets                           278.1       237.4       4.9     520.4
Unallocated assets                                                        31.9
Total assets                                                             552.3
Segment liabilities                    (150.6)      (75.7)     (3.8)   (230.1)
Unallocated liabilities                                                  (9.0)
Total liabilities                                                      (239.1)
Revenue
Rental income                             16.9         4.1         -      21.0
Serviced office income                       -           -       4.5       4.5
Project management fees                      -         0.4         -       0.4
Trading property sales                       -        17.2         -      17.2
Other trading property income                -         2.5         -       2.5
Construction contract revenue                -        16.5         -      16.5
Development proceeds                         -        17.7         -      17.7
Other income                               0.2           -         -       0.2
                                          17.1        58.4       4.5      80.0

                                                                             



3. FINANCE INCOME AND COSTS



                                                               14-month period
                                  Six months to  Six months to           ended
                                                                 29th February
                               31st August 2012 30th June 2011            2012
                                      unaudited      unaudited         audited
                                      £ million      £ million       £ million
Finance income
Interest receivable                         0.9            0.9             2.2
Other finance income                        0.2            0.1             0.4
Net foreign currency                                                       
differences arising on
retranslation of cash and cash                -            0.3               -
equivalents
Total finance income                        1.1            1.3             2.6
3. FINANCE INCOME AND COSTS
continued
                                                               14-month period
                                  Six months to  Six months to           ended
                                                                 29th February
                               31st August 2012 30th June 2011            2012
                                      unaudited      unaudited         audited
                                      £ million      £ million       £ million
Finance costs
Interest on bank loans and
other borrowings                            4.8            4.0            10.1
Interest on debenture                       1.1            1.1             2.6
Amortisation of transaction
costs                                       0.5            0.2             0.6
Fair value loss on financial
instruments - interest rate
swaps, caps and collars                     0.9              -             0.5
Net foreign currency                          
differences arising on                                                       
retranslation of cash and cash              0.4
equivalents                                                  -             0.1
                                            7.7            5.3            13.9
Capitalised interest on
development and trading
properties                                (0.8)              -           (0.7)
Total finance costs                         6.9            5.3            13.2



In addition the Group recorded a loss of £2.8 million (30th June 2011: gain of
£0.8 million and 29th  February 2012: loss  of £4.3 million)  in respect of  a 
cross-currency  interest  rate  swap.  This   amount  is  reported  in   Other 
comprehensive income in the period.





4. INCOME TAX



Income tax  expense  is  recognised  based on  management's  estimate  of  the 
weighted average annual income tax rate expected for the full financial  year. 
The estimated average  annual tax rate  used for the  period to 29th  February 
2013 is 24.17 per cent (the estimated  tax rate for the six months ended  30th 
June 2011 was  27.0 per cent).  The decrease is  mainly due to  the Group  not 
recognising deferred tax  assets due to  uncertainty over the  timing of  when 
this would unwind.

                                            
                                                               14-month period
                                Six months to  Six months to             ended
                             31st August 2012                    29th February
                                              30th June 2011              2012
                                    unaudited      unaudited           audited
                                    £ million      £ million         £ million
Current tax charge                        0.7              -               0.8
Deferred tax charge/(credit)              0.3          (0.1)               1.1
Total income tax                          1.0          (0.1)               1.9



A £0.7  million deferred  income  tax credit  (30th  June 2011:  £0.2  million 
charge, 29th February 2012: £1.0 million credit) has been recognised  directly 
in reserves in respect of the fair value of cross-currency interest rate  swap 
movement.  A  further  £0.4  million  deferred  income  tax  charge  has  been 
recognised  directly  in  reserves  in  respect  of  a  change  in  value   of 
available-for-sale financial assets.





5. DIVIDENDS

                                                             14-month period
                                                                         ended
                                  Six months to  Six months to
                               31st August 2012 30th June 2011   29th February
                                                                          2012
                                      unaudited      unaudited         audited
                                      £ million       £million       £ million
                                                                          

Amounts recognised as                       3.9            2.9             5.9
distributions to equity
holders in the period
Proposed dividend                           2.9            2.9             3.9
                                          Pence          Pence           Pence
Interim dividend per share                 2.40           2.40            2.40
Final dividend per share                      -              -            3.20



The final dividend of  £3.9 million for the  14-month period to 29th  February 
2012 is payable on 26th October 2012 to ordinary shareholders on the  register 
at the close of business on 28th September 2012.



An interim dividend was declared by the Board on 15th October 2012 and has not
been included as  a liability or  deducted from retained  earnings as at  31st 
August 2012. The interim dividend is payable on 30th November 2012 to Ordinary
shareholders on the register  at the close of  business on 2nd November  2012. 
The interim dividend in respect  of the six month  period to 31st August  2012 
will be recorded in the financial statements for the year ended 28th  February 
2013.



















6. LOSS PER SHARE AND NET ASSETS PER SHARE



Management has chosen to disclose the European Public Real Estate  Association 
(EPRA) adjusted net assets  per share and earnings  per share from  continuing 
activities in  order  to  provide  an indication  of  the  Group's  underlying 
business performance  and  to  assist  comparison  between  European  property 
companies.



The calculation of basic and diluted loss per share and EPRA loss per share is
based on the following data:



                                                                      14-month
                                    Six months to  Six months to  period ended
                                      31st August                29th February
                                             2012 30th June 2011          2012
                                        unaudited      unaudited       audited
Loss
Loss for the purposes of basic and
diluted loss per share (£ million)          (1.6)          (1.2)        (12.6)
Revaluation deficit/(surplus)
(including share of joint venture
revaluation surplus)                          4.4          (2.0)           4.2
Gain on disposal of investment
properties                                      -              -         (0.2)
Gain on disposal of trading
properties                                  (3.0)          (0.2)         (3.8)
Impairment of development and
trading properties                              -              -           1.8
Mark-to-market adjustment on
interest rate swaps, caps and
collars (including share of joint
venture mark-to-market adjustment)            0.9              -           0.6
EPRA adjusted profit/(loss) from
continuing activities attributable
to owners of the Company                      0.7          (3.4)        (10.0)
Number of shares (million)
Weighted average number of Ordinary
shares for the purposes
of basic loss per share                     122.4          122.4         122.4
Effect of dilutive potential
Ordinary shares:
- Share options                                 -              -             -
Weighted average number of Ordinary
shares for the purpose
of diluted loss per share                   122.4          122.4         122.4
Basic loss per share (pence)                (1.4)          (0.9)        (10.3)
Diluted loss per share (pence)              (1.4)          (0.9)        (10.3)
EPRA adjusted profit/(loss) per
share (pence)                                 0.6          (2.7)         (8.2)
EPRA adjusted diluted profit/(loss)
per share (pence)                             0.6          (2.7)         (8.2)



Net assets per share and diluted net assets per share and EPRA net assets  per 
share and EPRA diluted net assets per share have been calculated as follows:



                                                              
                                                                      14-month
                          Six months to            Six months to  period ended
                            31st August           30th June 2011 29th February
                                   2012                                   2012
                              unaudited                unaudited       audited
Net assets (£ million):
Basic net assets per
share attributable to the
owners                            304.4                    329.6         311.3
Cumulative mark-to-market
adjustment on interest
rate swaps                         13.0                      3.5           9.2
EPRA adjusted net assets          317.4                    333.1         320.5
Cumulative mark-to-market
adjustment on interest
rate swaps                       (13.0)                    (3.5)         (9.2)
Fair value of debt                  4.4                      9.6           6.5
EPRA adjusted triple net
assets                            308.8                    339.2         317.8
Effect of dilutive
potential Ordinary shares           1.5                      1.4           1.5
Diluted net assets                305.9                    331.0         312.8
EPRA diluted net assets           318.9                    334.5         322.0
EPRA diluted triple net
assets                            310.3                    340.6         319.3
Basic net assets per
share based on total net
assets                            304.5                    329.6         313.2
Number of shares
(million):
Number of shares in issue
at the balance sheet date         122.4                    122.4         122.4
Effect of dilutive                      The story has been
potential Ordinary shares               truncated,
[TRUNCATED]