Daejan Hldgs PLC DJAN Interim Results
Daejan Hldgs PLC (DJAN) - Interim Results
RNS Number : 3126S
Daejan Holdings PLC
29 November 2012
29 November
2012-----------------------------------------------------------------------------------
DAEJAN HOLDINGS PLC
INTERIM RESULTS ANNOUNCEMENT for the half year ended 30 September 2012
The Board is pleased to present the Interim Statement for the half year ended
30 September 2012.
30/9/12 30/9/11 31/3/12
£000 £000 £000
Profit/(Loss) before tax 23,266 (121) 41,849
Profit/(Loss) after tax 22,856 (783) 36,133
Basic and diluted earnings per share £1.40 £(0.05) £2.21
Equity shareholders' funds per share £54.25 £51.53 £52.90
· The profit before tax for the period was £23.3 million (2011: £0.1
million loss) after accounting for net valuation gains on investment
properties of £11.4 million (2011: £0.8 million loss) and valuation losses on
financial instruments of £3.0 million (2011: £9.7 million). There was an
increase of 3.5% in gross rental income and a reduction of 4% in property
operating expenses compared to the equivalent period last year. The underlying
net profit before tax, i.e. excluding net valuation movements, was £14.9
million (2011: £10.4 million)
· The property portfolio has been valued by the Directors based on the
recommendations of the Group's external advisors. The overall net valuation
gain of £11.4 million (2011: £0.8 million loss) reflects net gains in both the
UK and USA portfolios. London residential property continues to perform well,
while offices and shops outside London have seen reductions in value.
· The redevelopment of Africa House, WC2 continued throughout the period
and is likely to be available for occupation in mid 2013.
· The principal risk factors affecting the remainder of the financial year
continue to be exposure to movements in the valuation of the Group's
investment properties and financial instruments and to any increase in voids
or bad debts which may arise from the continuation of the current difficult
economic conditions.
· The business outlook continues to be challenging, with reduced economic
activity in the UK and the possible negative impacts of the as yet unresolved
Eurozone issues as well as the risk of a US budgetary crisis. These factors
create uncertainty so that it is by no means clear when we will see a return
to more positive sustained growth in the markets in which we operate. We
believe that our long term, prudent approach of maintaining a strong balance
sheet with relatively low gearing is particularly appropriate in present
times. Notwithstanding the general economic climate, we remain confident that
the Group will continue to progress.
· An interim dividend of 25p per share will be paid on 8 March 2013 to
shareholders on the register on 8 February 2013.
B S E Freshwater
Chairman
29 November 2012
For further information please contact:
Mark Jenner Nick Oborne
Company Secretary Weber Shandwick Financial
Daejan Holdings PLC
Tel: 020 7836 1555 Tel: 020 7067 0700
Consolidated Income Statement for the six months ended 30
September 2012
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30/9/12 30/9/11 31/3/12
£000 £000 £000
Total rental & related income from
investment property 53,301 52,492 107,094
Property operating expenses (32,451) (33,802) (68,036)
Net rental & related income from
investment property 20,850 18,690 39,058
Profit on disposal of investment
property 4,248 2,166 16,254
Net valuation gains/(losses) on
investment property 11,440 (782) 15,683
Administrative expenses (5,238) (5,461) (11,135)
Net operating profit before net
financing costs 31,300 14,613 59,860
Fair value losses on fixed rate loans
and borrowings (2,281) (7,406) (4,717)
Fair value losses on derivative
financial instruments (704) (2,308) (2,167)
Fair value losses on current
investments (1) (12) (3)
Other financial income 301 272 512
Financial expenses (5,349) (5,280) (11,636)
Net financing costs (8,034) (14,734) (18,011)
Profit/(loss) before taxation 23,266 (121) 41,849
Income tax (410) (662) (5,716)
Profit/(loss) for the period 22,856 (783) 36,133
Attributable to :
Equity holders of the parent 22,801 (785) 35,951
Minority interest 55 2 182
Profit/(loss) for the period 22,856 (783) 36,133
Basic and diluted earnings/(loss) per
share £1.40 £(0.05) £2.21
Consolidated Statement of Comprehensive Income for the six months ended 30
September 2012
Unaudited Unaudited Audited
Six Months Six Months Year
ended ended ended
30/9/12 30/9/11 31/3/12
£000 £000 £000
Profit/(loss) for the period 22,856 (783) 36,133
Foreign exchange translation differences (760) 2,312 204
Total comprehensive income for the period 22,096 1,529 36,337
Attributable to :
Equity holders of the parent 22,041 1,522 36,155
Minority interest 55 7 182
Total comprehensive income for the period 22,096 1,529 36,337
Consolidated Statement of Changes in Equity for the six months ended 30 September
2012
Issued Share Equity
share premium Translation Retained shareholders' Minority Total
capital account reserve earnings funds interest equity
£000 £000 £000 £000 £000 £000 £000
Balance at 1 4,074 555 18,416 815,055 838,100 162 838,262
April 2011
Profit for - - - 35,951 35,951 182 36,133
the year
Foreign
exchange
translation
differences - - 204 - 204 - 204
Movements
in minority
interest - - - - - (26) (26)
Dividends to
equity
shareholders - - - (12,222) (12,222) - (12,222)
Balance at 1
April 2012 4,074 555 18,620 838,784 862,033 318 862,351
Profit for
the period - - - 22,801 22,801 55 22,856
Foreign
exchange
translation
differences - - (760) - (760) - (760)
Movements
in minority
interest - - - - - (201) (201)
Dividends to
equity
shareholders - - - - - - -
Balance at
30 September
2012 4,074 555 17,860 861,585 884,074 172 884,246
Consolidated Balance Sheet as at 30 September 2012
Unaudited Unaudited Audited
30/9/12 30/9/11 31/3/12
£000 £000 £000
Assets
Investment property 1,273,463 1,236,454 1,254,094
Deferred tax assets 9,227 9,155 8,539
Total non-current assets 1,282,690 1,245,609 1,262,633
Trade and other receivables 50,911 49,064 69,578
Current investments 217 205 220
Cash and cash equivalents 54,858 35,671 32,474
Total current assets 105,986 84,940 102,272
Total assets 1,388,676 1,330,549 1,364,905
Equity
Share capital 4,074 4,074 4,074
Share premium 555 555 555
Translation reserve 17,860 20,723 18,620
Retained earnings 861,585 814,270 838,784
Total equity attributable to equity
holders of the parent 884,074 839,622 862,033
Minority interest 172 153 318
Total equity 884,246 839,775 862,351
Liabilities
Loans and borrowings 210,872 202,524 213,085
Deferred tax liabilities 192,158 199,581 194,656
Total non-current liabilities 403,030 402,105 407,741
Bank overdrafts - 1 150
Loans and borrowings 20,124 15,986 17,941
Trade and other payables 46,009 49,297 44,528
Current taxation 35,267 23,385 32,194
Total current liabilities 101,400 88,669 94,813
Total liabilities 504,430 490,774 502,554
Total equity and liabilities 1,388,676 1,330,549 1,364,905
Equity shareholders' funds per share £54.25 £51.53 £52.90
Consolidated Statement of Cash Flows for the six months ended 30
September 2012
Unaudited Unaudited Audited
Six Six
months months Year
ended ended ended
30/9/12 30/9/11 31/3/12
£000 £000 £000 £000 £000 £000
Cash flows from
operating activities
Net cash generated
from operations 13,989 11,283 22,274
Interest received 164 224 509
Interest
paid (5,342) (5,183) (11,525)
Distributions to
minority interest (201) (16) (26)
UK corporation tax
paid - - -
Overseas tax paid (90) (146) (122)
Net cash from
operating activities 8,520 6,162 11,110
Cash flows from
investing activities
Acquisition and
development of
investment property (10,690) (5,491) (25,618)
Proceeds from sale
of investment
property 25,680 2,245 7,620
Net cash from
investing activities 14,990 (3,246) (17,998)
Cash flows from
financing
activities
Repayment of bank
loans (837) (41,687) (42,375)
New bank loans and
overdrafts - - 150
Repayment of
mortgages (8,206) (1,331) (28,900)
New mortgages 7,933 247 47,283
Dividends paid - - (12,222)
Net cash absorbed by
financing activities (1,110) (42,771) (36,064)
Net
increase/(decrease)
in cash and cash
equivalents 22,400 (39,855) (42,952)
Cash and cash equivalents
brought forward 32,324 75,296 75,296
Effect of exchange rate
fluctuations on cash held 134 229 (20)
Cash and cash equivalents 54,858 35,670 32,324
Notes to the Consolidated Interim Financial Statements for the six months
ended 30 September 2012
Basis of preparation
This interim financial information has been prepared in accordance with
International Accounting Standard (IAS) 34 Interim Financial Reporting,
applying the accounting policies and presentation that were applied in the
preparation of the Company's published consolidated financial statements for
the year ended 31 March 2012. As required by the Listing Rules of the
Financial Services Authority, the Directors have considered the result of the
endorsement by the EU of new or changed International Financial Reporting
Standards that are applicable or available for early adoption in the
preparation of the Company's next consolidated financial statements for the
year ending 31 March 2013 and concluded that they have no material effect on
either the current or prior periods.
Status of the interim financial information
The interim financial information in this statement has not been audited or
reviewed by auditors pursuant to the Auditing Practices Board guidance on
review of interim financial information and does not constitute statutory
accounts, as defined in section 435 of the Companies Act 2006. The auditors'
report on the statutory accounts for the year ended 31 March 2012 was
unqualified and did not contain a statement under section 498 of the Companies
Act 2006. Statutory accounts for the year ended 31 March 2012 have been
delivered to the Registrar of Companies. The interim financial statements
were approved by the Board of Directors on 28 November 2012. The preparation
of the interim financial information requires management to make assumptions
and estimates about future events which are uncertain, the actual outcome of
which may result in a materially different outcome from that anticipated.
Segmental Analysis
UK USA Eliminations Total
For the six months ended 30 £000 £000 £000 £000
September 2012
Rental and related income 37,260 16,041 - 53,301
Property operating expenses (22,358) (10,093) - (32,451)
Profit/(loss) on disposal of 4,546 (298) - 4,248
property
Net valuation movements on property 9,892 1,548 - 11,440
Administrative expenses (4,806) (432) - (5,238)
Profit before finance costs 24,534 6,766 - 31,300
Net financing costs (3,822) (4,212) - (8,034)
Profit before taxation 20,712 2,554 - 23,266
Income tax credit/(charge) 938 (1,348) - (410)
Profit for the period 21,650 1,206 - 22,856
Capital expenditure 9,548 1,142 - 10,690
As at 30 September 2012
Investment property 1,010,968 262,495 - 1,273,463
Other assets 79,962 39,922 (4,671) 115,213
Total segment assets 1,090,930 302,417 (4,671) 1,388,676
Total segment liabilities (298,758) (210,343) 4,671 (504,430)
Capital employed 792,172 92,074 - 884,246
UK USA Eliminations Total
For the six months ended 30 £000 £000 £000 £000
September 2011
Rental and related income 37,793 14,699 - 52,492
Property operating expenses (23,526) (10,276) - (33,802)
Profit on disposal of property 2,166 - - 2,166
Net valuation movements on property (2,189) 1,407 - (782)
Administrative expenses (5,090) (371) - (5,461)
Profit before finance costs 9,154 5,459 - 14,613
Net financing costs (6,250) (8,484) - (14,734)
Profit/(loss) before taxation 2,904 (3,025) - (121)
Income tax charge (293) (369) - (662)
Profit/(loss) for the period 2,611 (3,394) - (783)
Capital expenditure 4,136 1,355 - 5,491
As at 30 September 2011
Investment property 984,597 251,857 - 1,236,454
Other assets 71,125 27,808 (4,838) 94,095
Total segment assets 1,055,722 279,665 (4,838) 1,330,549
Total segment liabilities (301,727) (193,885) 4,838 (490,774)
Capital employed 753,995 85,780 - 839,775
Dividends
No dividends were paid in the six months ended 30 September 2012 (six months
ended 30 September 2011: £Nil).
Investment properties
The Directors have estimated the value of the investment properties at 30
September 2012 after consultation with the Group's advisers. A full valuation
of the Group's properties will be carried out by independent professional
valuers at 31 March 2013.
Related party transactions
Day-to-day management of the Group's properties in the UK is mainly carried
out by Highdorn Co. Limited and by Freshwater Property Management Limited. Mr
BSE Freshwater and Mr SI Freshwater are directors of both companies. They
have no beneficial interest in the share capital of Highdorn Co. Limited. Mr
BSE Freshwater, Mr SI Freshwater and Mr D Davis are directors of the parent
company of Freshwater Property Management Limited but have no beneficial
interest in either company. Mr RE Freshwater has a beneficial interest in a
trust holding interests in shares in Highdorn Co. Limited.
In their capacity as managing agents, Highdorn Co. Limited and Freshwater
Property Management Limited collect rents and incur direct property expenses
on behalf of the Group. At 30 September 2012, the aggregate net amounts due
to the Group from Highdorn Co. Limited and Freshwater Property Management
Limited in relation to such agency receipts and payments was £3 million (2011:
Due from the Group £2.0 million). These amounts are not secured and are
payable on demand. No guarantees have been given or received and the amounts
are settled in cash.
The amounts paid by the Group during the period for the provision of property
and other management services by Highdorn Co. Limited and Freshwater Property
Management Limited, not included above, were £1.7 million (six months ended 30
September 2011: £1.9 million).
The board considers that the Directors are the key management personnel of the
Group and their remuneration is disclosed in the Daejan Holdings PLC Annual
Report for 31 March 2012.
Statement of Directors' responsibilities
The Directors confirm that this condensed set of financial statements has been
prepared in accordance with IAS 34 as adopted by the European Union, and that
the interim management report herein includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8.
The Directors of Daejan Holdings PLC are listed in the Daejan Holdings PLC
Annual Report for 31 March 2012. A list of current Directors is maintained on
the Daejan Holdings PLC website www.daejanholdings.com.
B S E Freshwater
Chairman
29 November 2012
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UKARRUOAAUAA -0- Nov/29/2012 10:30 GMT
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