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

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