TIDMFPO

RNS Number : 9978G

First Property Group PLC

26 November 2015

 
 Date:        26 November 2015 
 On behalf    First Property Group plc ("First 
  of:          Property" or "the Group") 
 Embargoed:   0700hrs 
 

First Property Group plc

Interim Results for the six months to 30 September 2015

First Property Group plc (AIM: FPO), the property fund manager and investor, today announces its interim results for the six months to 30 September 2015.

Financial Highlights:

 
                                   Unaudited       Unaudited   Percentage     Audited 
                                  Six months      Six months       change        Year 
                                          to              to                       to 
                                30 September    30 September                 31 March 
                                        2015            2014                     2015 
----------------------------  --------------  --------------  -----------  ---------- 
 
   Income Statement: 
----------------------------  --------------  --------------  -----------  ---------- 
 Statutory profit                   GBP5.93m        GBP5.42m        +9.4%    GBP8.08m 
  before tax 
 Diluted earnings 
  per share                            4.13p           4.07p        +1.5%       6.93p 
 Dividend per share                   0.385p           0.35p       +10.0%       1.35p 
 Average EUR/ GBP 
  rate used                            1.386           1.250       -10.9%       1.285 
----------------------------  --------------  --------------  -----------  ---------- 
 
   Balance Sheet at 
   period end: 
----------------------------  --------------  --------------  -----------  ---------- 
 Net assets                        GBP32.06m       GBP26.62m                GBP31.02m 
 Net assets per share                 27.14p          22.72p                   26.30p 
 Adjusted net assets 
  per share*                          40.29p          26.15p                   35.75p 
 Cash Balances                     GBP14.20m       GBP12.05m                GBP12.24m 
 Period-end EUR/ GBP 
  rate                                 1.357           1.283                    1.382 
----------------------------  --------------  --------------  -----------  ---------- 
 
   Group Property Portfolio 
   at period end: 
----------------------------  --------------  --------------  -----------  ---------- 
 Group Properties**                GBP125.9m        GBP63.1m                GBP126.9m 
  at book value 
 Group Properties**                GBP145.3m        GBP72.5m                GBP142.0m 
  at market value 
 Gross Debt secured                GBP108.3m        GBP50.7m                GBP107.8m 
  against Group 
  Properties 
 LTV%                                  74.5%           69.9%                    75.9% 
----------------------------  --------------  --------------  -----------  ---------- 
 
   Total assets under                GBP283m         GBP333m 
   management:                                                                GBP327m 
----------------------------  --------------  --------------  -----------  ---------- 
 Poland                                53.8%           66.9%                    64.7% 
 United Kingdom                        43.6%           30.5%                    33.1% 
 Romania                                2.6%            2.6%                     2.2% 
----------------------------  --------------  --------------  -----------  ---------- 
 
 
 *               Calculated according to EPRA triple net 
                  valuation methodology, which includes adjustments 
                  for fair values of i) financial instruments, 
                  ii) debt, and iii) deferred taxes. 
 **              Excludes the Group's non-controlling interests 
                  in four other FPAM managed funds. 
 

Operational Highlights and Explanatory Notes:

   --      Interim dividend increased by 10% to 0.385 pence per share. 

-- The contribution to Group profit before tax and unallocated central overhead costs from Group

Properties increased to GBP5.22 million (2014: GBP2.97 million) largely due to the contribution made by the

properties acquired in Poland and Romania by the Group and FOP between July and December 2014.

-- The contribution to Group profit before tax and unallocated central overhead costs from fund

management decreased to GBP1.19 million (2014: GBP2.90 million) due to both reduced performance fees

earned by Fprop PDR and the expiry of our fund management contract with USS. Fund management

fee income, excluding performance fees, is currently being earned at the rate of some GBP1.3 million per

annum but should grow from here as we continue to invest the SIPS mandate and as we win new

contracts.

-- Excluding the fair value adjustment, the impact of a weaker Euro versus Sterling resulted in profit

before tax being cGBP512,000 lower.

Commenting on the results, Ben Habib, Chief Executive of First Property Group, said:

"I am very pleased by the continued good progress made by the Group.

"We are now reaping the rewards of the investments made by Fprop Opportunities plc and ourselves over the last two years, which contributed some GBP5.2 million to Group profit before tax in the first half.

"We intend to continue to invest in high income generating property, most likely in Poland and ideally in partnerships with third parties. We are currently working on several such opportunities.

"The visibility of our earnings into 2016 and beyond is good and I look to the future with confidence."

A briefing for analysts will be held at 10:30hrs today at the headquarters of First Property Group plc, 32 St James's Street, London, SW1A 1HD. Participants can also attend by telephone on +44 (20) 7984 7578 (pin 617692). A copy of the accompanying investor presentation can be accessed simultaneously at http://www.fprop.com/plc-results/81/88/. A recorded copy of the audio call will subsequently be posted on the company website, www.fprop.com.

For further information please contact:

 
 First Property Group plc         Tel: 020 7340 
                                   0270 
 Ben Habib (Chief Executive       www.fprop.com 
  & Chief Investment Officer) 
  George Digby (Group Finance 
  Director) 
  Jeremy Barkes (Director, 
  Business Development) 
 
 Arden Partners                   Tel: 020 7614 
                                   5900 
 Chris Hardie/ Ben Cryer 
 
 Redleaf Communications           Tel: 020 7382 
                                   4747 
 Richard Gotla/ Henry Columbine   firstproperty@redleafpr.com 
 

Notes to Investors and Editors:

First Property Group plc is a property fund manager and investor with operations in the United Kingdom and Central Europe. Its earnings are derived from:

-- Fund management - via its FCA regulated and AIFMD approved subsidiary, First Property Asset Management Ltd (FPAM), which earns fees from investing for third parties in property:

o Management fees are levied by reference to the value of properties under management;

o Performance fees are levied where appropriate, usually payable upon realisation of profits above an agreed hurdle.

-- Group Properties - principal investments by the Group, to earn a return on its own capital, usually in partnership with third parties.

FPAM funds have ranked No.1 versus the Investment Property Databank (IPD) Central & Eastern Europe (CEE) universe for the annualised periods from the commencement of its operations in Poland in 2005 to the end of each of the years between 31 December 2008 and 31 December 2014.

First Property Asset Management Limited is authorised and regulated by the Financial Conduct Authority. Further information about the Company and its products can be found at: www.fprop.com.

CHIEF EXECUTIVE'S STATEMENT

Financial Results

I am pleased to report interim results for the six months ended 30 September 2015.

Revenue earned by the Group amounted to GBP10.95 million (2014: GBP7.79 million) yielding a profit before tax of GBP5.93 million (2014: GBP5.42 million). The increase in revenue and profit before tax is largely attributable to the contribution made to earnings by Group Properties, which benefitted from a full contribution during the period from the six properties it acquired in Poland and Romania between July and December 2014.

Diluted earnings per share were 4.13 pence (2014: 4.07 pence).

The Group ended the period with net assets of GBP32.06 million (2014: GBP26.62 million). Its cash balance was GBP14.20 million (2014: GBP12.05 million), of which GBP3.26 million (2014: GBP4.28 million) was held by Fprop Opportunities plc (76.2% owned by the Group) and GBP461,000 (2014: GBP481,000) was held by Corp Sp z o,o. (90% owned by the Group), the property management company for Blue Tower in Warsaw.

Dividend

The Directors have resolved to increase the interim dividend by 10% to 0.385 pence per share (2014: 0.35 pence per share) which will be paid on 31 December 2015 to shareholders on the register at 4 December 2015, with an ex-dividend date of 3 December 2015.

Review of Operations:

Property Fund Management - (First Property Asset Management Ltd or FPAM)

As at 30 September 2015 aggregate assets under management, calculated by reference to independent third party property valuations, stood at GBP283 million (2014: GBP333 million), including some GBP145.3 million (2014: GBP72.5 million) of properties held by the Group and FOP. Of these 53.8% were located in Poland, 43.6% in the UK and 2.6% in Romania. Fees are levied by FPAM by reference to the value of funds under management excluding cash.

(MORE TO FOLLOW) Dow Jones Newswires

November 26, 2015 02:01 ET (07:01 GMT)

Revenue earned by this division reduced to GBP1.85 million (2014: GBP3.55 million), resulting in a profit before tax and unallocated central overhead costs of GBP1.19 million (2014: GBP2.90 million). This represents 18.5% (2014: 49.4%) of Group profit before tax and unallocated central overhead costs. The reduction in revenue and profit before tax of this division is attributable to a reduction in performance fees earned by Fprop PDR with GBP0.86 million earned during the period (2014: GBP1.9 million), and the wind down and subsequent expiry in August of our fund management contract with USS, which yielded GBP301,000 in fee income during the period (2014: GBP908,000).

A synopsis of each of the funds managed by the Group as at 30 September 2015 is set out below:

 
     Fund              Country   Established      Fund          Assets          % of          Assets 
                 of investment                  expiry           under         total           under 
                                                            management        assets      management 
                                                             at market         under       at market 
                                                                 value    management           value 
                                                                    at                            at 
                                                          30 September                  30 September 
                                                                  2015                          2014 
-------------  ---------------  ------------  --------  --------------  ------------  -------------- 
 SAM Property               UK      Aug 2004   Rolling               *             *               * 
  Company 
  Ltd (SAM) 
 Regional               Poland      Aug 2004       Aug         GBP6.3m          2.2%         GBP6.7m 
  Property                                        2020 
  Trading 
  Ltd (RPT) 
 5(th)                  Poland      Dec 2004       Dec         GBP7.8m          2.8%         GBP8.5m 
  Property                                        2017 
  Trading 
  Ltd (5PT) 
 USS Fprop              Poland      Aug 2005       Aug             Nil             -       GBP140.7m 
  Managed                                         2015 
  Property 
  Portfolio 
  LP 
 UK Pension                 UK      Feb 2010       Feb        GBP95.1m         33.7%        GBP93.4m 
  Property                                        2017 
  Portfolio 
  LP (UK 
  PPP) 
 
 
 Fprop       UK   Oct 2013     May   Nil (commitment       -    GBP11.2m 
  PDR LP                      2018        of GBP42m) 
 SIPS        UK   Jan 2015     Jan          GBP28.0m    9.9%         Nil 
  Property                    2025       (commitment 
  Nominee                                of GBP125m) 
  Ltd 
----------  ---  ---------  ------  ----------------  ------  ---------- 
 Sub Total                                 GBP137.2m   48.6%   GBP260.5m 
----------------------------------  ----------------  ------  ---------- 
 
 
 Fprop                Poland   Oct 2010     Oct    GBP55.5m   19.6%   GBP48.8m 
  Opportunities                            2020 
  plc (FOP) 
 Group                Poland        n/a     n/a    GBP89.8m   31.8%   GBP23.7m 
  Properties       & Romania 
  (excluding 
  FOP) 
---------------  -----------  ---------  ------  ----------  ------  --------- 
 Sub Total                                        GBP145.3m   51.4%   GBP72.5m 
-----------------------------------------------  ----------  ------  --------- 
 
 
 Total   GBP282.5m   100%   GBP333.0m 
------  ----------  -----  ---------- 
 

* Not subject to recent revaluation

Fprop PDR completed the sale of its last remaining property in July, resulting in the Group earning a performance fee of GBP1.87 million, of which GBP0.86 million was recognised during the period (2014: GBP1.9 million), with the balance having already been recognised in the prior period. This fund ceased making new investments in 2014.

We are making reasonable progress in investing the new SIPS mandate, awarded to us in January. At 30 September the value of the properties acquired stood at GBP28 million. Since the period end we have exchanged contracts and completed the purchase of a further GBP11 million of commercial property on its behalf, and we have a further GBP32 million of property under offer.

Fund management fee income, excluding performance fees, is currently being earned at a rate of some GBP1.3 million per annum. We expect this rate to increase as we continue to invest the SIPS fund and win more fund management contracts.

Group Properties

Group Properties comprise eleven commercial properties held by the Group, including five held by FOP (in which the Group is a 76.2% shareholder), and non-controlling interests in four of the seven funds managed by FPAM, as set out in the tables below. It is the Group's policy to carry its investments at the lower of cost or market value for accounting purposes, and to recognise dividends when received.

Directly Held Properties at 30 September 2015:

 
 Property                     No.        Book      Market   Contribution   Contribution 
  / Country         of properties       value       value       to Group       to Group 
                                                                  profit         profit 
                                                                  before         before 
                                                              tax period     tax period 
                                                                   to 30          to 30 
                                                               September      September 
                                                                    2015           2014 
----------------  ---------------  ----------  ----------  -------------  ------------- 
 Poland                         3    GBP69.9m    GBP82.4m       GBP2.79m       GBP0.72m 
 Romania                        3     GBP5.2m     GBP7.4m       GBP0.45m      GBP1.31m* 
 FOP (Poland                    5    GBP50.8m    GBP55.5m       GBP1.72m       GBP0.80m 
  - consolidated 
  undertaking). 
----------------  ---------------  ----------  ----------  -------------  ------------- 
 Total                         11   GBP125.9m   GBP145.3m       GBP4.96m       GBP2.83m 
----------------  ---------------  ----------  ----------  -------------  ------------- 
 
 
 *   Includes GBP1.123m of negative goodwill 
      arising from the refinancing of the subsidiary. 
 

Non-controlling interests in funds managed by FPAM at 30 September 2015:

 
 Fund           % owned          Book        Current         Group's         Group's 
                     by         value         market           share           share 
                  First      of First          value      of pre-tax      of pre-tax 
               Property    Property's    of holdings         profits         profits 
                  Group         share                         earned          earned 
                                   in                        by fund         by fund 
                                 fund                   30 September    30 September 
                                                                2015            2014 
-----------  ----------  ------------  -------------  --------------  -------------- 
 Interest in associates 
 5(th)            37.8%    GBP530,000   GBP1,038,000       GBP59,000       GBP81,000 
  Property 
  Trading 
  Ltd (5PT) 
 Regional         28.6%    GBP145,000     GBP193,000        GBP6,000       GBP26,000 
  Property 
  Trading 
  Ltd (RPT) 
-----------  ----------  ------------  -------------  --------------  -------------- 
 Share of results          GBP675,000   GBP1,231,000       GBP65,000      GBP107,000 
  in associates 
 
 
 Investments 
 UK Pension   0.9%   GBP903,000   GBP903,000    GBP29,000   GBP30,000 
  Property 
  Portfolio 
  LP (UK 
  PPP) 
 Fprop          5%    GBP13,000    GBP13,000   GBP163,000         Nil 
  PDR LP 
-----------  -----  -----------  -----------  -----------  ---------- 
 Sub Total           GBP916,000   GBP916,000   GBP192,000   GBP30,000 
------------------  -----------  -----------  -----------  ---------- 
 
 
 Total   GBP1,591,000   GBP2,147,000   GBP257,000   GBP137,000 
------  -------------  -------------  -----------  ----------- 
 

Revenue from Group Properties amounted to GBP9.10 million (2014: GBP4.24 million), generating a profit before tax and unallocated central overhead costs of GBP5.22 million (2014: GBP2.97 million). This represents 81.5% (2014: 50.6%) of Group profit before tax and unallocated central overhead costs.

The increase in profit before tax earned by Group Properties resulted mainly from a full period contribution from the six properties acquired by the Group and FOP in Poland and Romania between July and December 2014, which amounted to GBP2.69 million (2014: GBP162,000).

Commercial Property Markets Outlook

Poland:

GDP growth in Poland is forecast to be 3.5% in both 2015 and 2016.

In October's general election, the incumbent Civic Platform Party (PO) was ousted by the conservative (but apparently less business friendly) Law and Justice Party (PiS), to form Poland's first non-coalition government since the fall of Communism. It has pledged to use all available monetary and fiscal policy tools to boost GDP growth towards 5%-6% per annum but has suggested the introduction of new taxes on retailers and banks. It is also expected to cut interest rates by 0.5% to 1% in the first quarter of 2016.

The Polish Zloty/Euro exchange rate remains relatively stable at around PLN 4.1-4.3, as it has been for several years. However, the Sterling/Euro rate has weakened by some 20 per cent since 2013.

Rents for offices in Warsaw have fallen in recent years due to the large development pipeline but appear to have now stabilised. Rents and occupancy levels for other asset classes remain broadly stable.

(MORE TO FOLLOW) Dow Jones Newswires

November 26, 2015 02:01 ET (07:01 GMT)

Investment demand is mainly from German, US and UK investors and is focused on prime properties of large lot sizes. The transaction volume for 2015 is expected to exceed EUR3 billion, a level similar to that of 2014.

United Kingdom:

GDP is now 5.9% above the pre-crisis peak reached in the first quarter of 2008 and the rate of GDP growth is forecast to average 2-3% over the next couple of years.

The growth in the economy is likely to continue the trend of increased occupational demand and increasing rents.

Investor demand remains buoyant, although there is a growing market expectation that yield stabilisation is approaching, with future gains expected from rental growth. According to IPD the average net initial yield for all commercial property is now back to its 2007 peak of 4.9%, with the implied equivalent yield (after taking into account reversionary rent levels) at 5.9%.

The temporary extension to Permitted Development Rights for the automatic conversion of offices to residential use has been made permanent, although we still await details of the terms on which this extension has taken place.

Current Trading and Prospects

I am very pleased by the continued good progress made by the Group.

We are now reaping the rewards of the investments made by Fprop Opportunities plc and ourselves over the last two years, which contributed some GBP5.2 million to Group profit before tax in the first half.

We intend to continue to invest in high income generating property, most likely in Poland and ideally in partnership with third parties. We are currently working on several such opportunities.

The visibility of our earnings into 2016 and beyond is good and I look to the future with confidence.

Ben Habib

Chief Executive

26 November 2015

CONDENSED CONSOLIDATED INCOME STATEMENT

for the six months to 30 September 2015

 
                                 Notes     Six months          Six months          Year to 
                                                   to                  to         31 March 
                                              30 Sept             30 Sept             2015 
                                                 2015    2014 (unaudited)        (audited) 
                                          (unaudited) 
                                                            Total results    Total results 
                                                Total             GBP'000          GBP'000 
                                              results 
                                              GBP'000 
 
 Revenue                           2           10,947               7,785           18,523 
------------------------------  ------  -------------  ------------------  --------------- 
 Cost of sales                                (1,773)               (910)          (3,156) 
 Gross profit                                   9,174               6,875           15,367 
 Recognition of negative 
  goodwill on 
  refinancing of subsidiary                         -               1,123            1,123 
 Recognition of negative 
  goodwill on the 
  acquisition of subsidiaries                       -                   -              716 
 Fair value adjustment 
  to investment 
  properties                                      556                (89)            (876) 
 Operating expenses                           (2,609)             (1,726)          (6,925) 
 Operating profit                  2            7,121               6,183            9,405 
 Share of results 
  in associates                                    65                 107              185 
 Distribution income                              192                  30              694 
 Interest income                                   69                  35              145 
 Interest expense                             (1,518)               (934)          (2,346) 
 Profit before tax                 2            5,929               5,421            8,083 
 Tax credit /(charge)              3            (661)               (433)              328 
------------------------------  ------  -------------  ------------------  --------------- 
 Profit for the period                          5,268               4,988            8,411 
 
 Attributable to: 
 Owners of the parent                           4,888               4,792            8,172 
 Non-controlling interest                         380                 196              239 
                                                5,268               4,988            8,411 
 
 Earnings per Ordinary 
  1p share 
 -basic                            4            4.28p               4.24p            7.21p 
 -diluted                          4            4.13p               4.07p            6.93p 
------------------------------  ------  -------------  ------------------  --------------- 
 

CONDENSED CONSOLIDATED STATEMENT OF

COMPREHENSIVE INCOME

for the six months to 30 September 2015

 
                                      Notes    Six months   Six months     Year to 
                                                    to 30           to    31 March 
                                                Sept 2015      30 Sept        2015 
                                                                  2014 
                                                unaudited    unaudited     audited 
-----------------------------------  -------  -----------  -----------  ---------- 
                                                  GBP'000      GBP'000     GBP'000 
-----------------------------------  -------  -----------  -----------  ---------- 
 
 Profit for the period                              5,268        4,988       8,411 
--------------------------------------------  -----------  -----------  ---------- 
 
 Other comprehensive 
  income 
 
 Exchange difference 
  on retranslation of 
  foreign subsidiaries                            (3,161)      (1,091)         272 
 Revaluation of available-for-sale 
  financial assets                                     13           43          37 
 Taxation                                               -            -           - 
 Total comprehensive 
  income for the period                             2,120        3,940       8,720 
--------------------------------------------  -----------  -----------  ---------- 
 
 
 Total comprehensive 
  income for the period:                            2,130        4,007       8,505 
  Owners of the parent                               (10)         (67) 
  Non-controlling interest 
--------------------------------------------  -----------  ----------- 
                                                                               215 
 -------------------------------------------  -----------  -----------  ---------- 
                                                    2,120        3,940       8,720 
 -------------------------------------------  -----------  -----------  ---------- 
 

CONDENSED CONSOLIDATED BALANCE SHEET

as at 30 September 2015

 
                                 Notes          As at               As at             As at 
                                              30 Sept             30 Sept          31 March 
                                                 2015    2014 (unaudited)    2015 (audited) 
                                          (unaudited)             GBP'000           GBP'000 
                                              GBP'000 
------------------------------  ------  -------------  ------------------  ---------------- 
 
 Non-current assets 
 Goodwill                                         153                 153               153 
 Investment properties             5          112,956              51,026           114,262 
 Property, plant and 
  equipment                                       162                  53                43 
 Interest in associates           6a              675                 707               671 
 Other financial assets           6b              916               2,400             1,531 
 Other receivables                 7              228                 349               283 
 Deferred tax assets                            4,100                 846             3,803 
------------------------------  ------  -------------  ------------------  ---------------- 
 Total non-current 
  assets                                      119,190              55,534           120,746 
 
 Current assets 
 Inventories - land 
  and buildings                                12,958              12,170            12,639 
 Current tax assets                                52                  55               236 
 Trade and other receivables       7            5,378               3,565             5,744 
 Cash and cash equivalents                     14,202              12,048            12,240 
------------------------------  ------  -------------  ------------------  ---------------- 
 Total current assets                          32,590              27,838            30,859 
 Current liabilities 
 Trade and other payables          8          (6,398)             (2,894)           (8,134) 
 Financial liabilities             9          (6,101)             (2,172)          (11,788) 
 Current tax liabilities                        (162)               (242)             (108) 
------------------------------  ------  -------------  ------------------  ---------------- 
 Total current liabilities                   (12,661)             (5,308)          (20,030) 
------------------------------  ------  -------------  ------------------  ---------------- 
 Net current assets                            19,929              22,530            10,829 
------------------------------  ------  -------------  ------------------  ---------------- 
 Total assets less 
  current liabilities                         139,119              78,064           131,575 
------------------------------  ------  -------------  ------------------  ---------------- 
 
 Non-current liabilities 

(MORE TO FOLLOW) Dow Jones Newswires

November 26, 2015 02:01 ET (07:01 GMT)

 Financial liabilities             9        (104,061)            (50,486)          (97,925) 
 Deferred tax liabilities                     (3,003)               (962)           (2,631) 
 Net assets                                    32,055              26,616            31,019 
------------------------------  ------  -------------  ------------------  ---------------- 
 
 Equity 
 Called up share capital                        1,149               1,149             1,149 
 Share premium                                  5,508               5,503             5,505 
 Foreign Exchange Translation 
  Reserve                                     (3,389)             (1,742)             (618) 
 Investment revaluation 
  reserve                                        (36)                (43)              (49) 
  Share-based payment 
   reserve                                        218                 218               203 
 Retained earnings                             27,547              20,718            23,735 
------------------------------  ------  -------------  ------------------  ---------------- 
 Equity attributable 
  to the owners of the 
  parent                                       30,997              25,803            29,925 
 Non-controlling interest                       1,058                 813             1,094 
------------------------------  ------  -------------  ------------------  ---------------- 
 Total equity                                  32,055              26,616            31,019 
------------------------------  ------  -------------  ------------------  ---------------- 
 
 Net assets per share              4           27.14p              22.72p            26.30p 
------------------------------  ------  -------------  ------------------  ---------------- 
 

CONDENSED CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY

for the six months to 30 September 2015

 
                       Share     Share                                                         Retained                       TOTAL 
                     capital   premium     Share       Foreign                    Investment   Earnings   Non-controlling 
                                           Based      Exchange   Purchase/Sale   Revaluation                     Interest 
                                         Payment   Translation   of own Shares       Reserve 
                                         Reserve       Reserve 
 
                     GBP'000   GBP'000   GBP'000       GBP'000         GBP'000       GBP'000    GBP'000           GBP'000 
------------------  --------  --------  --------  ------------  --------------  ------------  ---------  ----------------  -------- 
 At 1 April 2014       1,149     5,498       203         (914)           (310)          (86)     17,027               895    23,462 
------------------  --------  --------  --------  ------------  --------------  ------------  ---------  ----------------  -------- 
 Profit for the 
  period 
  Fair value (or 
  revaluation) 
  gains on 
  available- for- 
  sale financial           -         -         -         (828)               -             -      4,988             (263)     3,897 
  assets to profit 
  or loss                  -         -         -             -               -            43          -                 -        43 
 Share based 
  payments                 -         -        15             -               -             -          -                 -        15 
 Non-controlling 
  interest                 -         -         -             -               -             -      (196)               196         - 
 Treasury shares           -         5         -             -             101             -          -                 -       106 
 Dividends paid            -         -         -             -               -             -      (892)              (15)     (907) 
 At 30 Sept 2014       1,149     5,503       218       (1,742)           (209)          (43)     20,927               813    26,616 
------------------  --------  --------  --------  ------------  --------------  ------------  ---------  ----------------  -------- 
 Profit for the 
  period                   -         -         -           828               -             -      3,423               263     4,514 
 Fair value (or 
  revaluation) 
  gains on 
  available- for- 
  sale financial 
  assets to profit 
  or loss                  -         -         -             -               -           (6)          -                 -       (6) 
 Movement on 
  foreign exchange         -         -         -           296               -             -          -              (24)       272 
 Share based 
  payments                 -         -      (15)             -               -             -          -                 -      (15) 
 Non-controlling 
  interest                 -         -         -             -               -             -       (43)                43         - 
 Treasury Shares           -         2         -             -              36             -          -                 -        38 
 Dividends paid            -         -         -             -               -             -      (399)               (1)     (400) 
------------------  --------  --------  --------  ------------  --------------  ------------  ---------  ----------------  -------- 
 At 1 April 2015       1,149     5,505       203         (618)           (173)          (49)     23,908             1,094    31,019 
------------------  --------  --------  --------  ------------  --------------  ------------  ---------  ----------------  -------- 
 Profit for the 
  period 
  Fair value (or 
  revaluation) 
  gains on 
  available- for- 
  sale financial           -         -         -                                           -      5,268                 -     5,268 
  assets to profit                                                           - 
  or loss                  -         -         -                             -            13          -                 -        13 
 Movement on 
  foreign exchange         -         -         -       (2,771)               -             -          -             (390)   (3,161) 
 Share based 
  payments                 -         -        15             -               -             -          -                 -        15 
 Non-controlling 
  interest                 -         -         -             -               -             -      (380)               380         - 
 Treasury shares           -         3         -             -              66             -          -                 -        69 
 Dividends paid            -         -         -             -               -             -    (1,142)              (26)   (1,168) 
------------------  --------  --------  --------  ------------  --------------  ------------  ---------  ----------------  -------- 
 At 30 Sept 2015       1,149     5,508       218       (3,389)           (107)          (36)     27,654             1,058    32,055 
------------------  --------  --------  --------  ------------  --------------  ------------  ---------  ----------------  -------- 
 

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

for the six months to 30 September 2015

 
                                                                                       Six months to   Six months to 30 Sept 2014 (unaudited)          Year to 
                                                                            30 Sept 2015 (unaudited)                                             31 March 2015 
                                                                                                                                                     (audited) 
                                                                                             GBP'000                                  GBP'000          GBP'000 
--------------------------------------------------------------  -------  ---------------------------  ---------------------------------------  --------------- 
 Cash flows from operating activities                             Notes 
 Operating profit                                                                              7,121                                    6,183            9,405 
 Adjustments for: 
 Depreciation of investment property, and property, plant & equipment                            815                                       17              384 
 Fair value adjustment to investment properties                                                (556)                                       89              876 
 Negative goodwill                                                                                 -                                  (1,123)          (1,839) 
 Share based payments                                                                             15                                       15                - 
 (Increase)/decrease in inventories                                                            (141)                                     (70)            (258) 
 (Increase)/decrease in trade and other receivables                                              307                                      664            (486) 
 Increase/(decrease) in trade and other payables                                             (1,230)                                  (2,406)              577 
 Other non-cash adjustments                                                                       43                                       26               84 
 Cash generated from operations                                                                6,374                                    3,395            8,743 
 Income taxes paid                                                                             (357)                                    (322)            (826) 
-----------------------------------------------------------------------  ---------------------------  ---------------------------------------  --------------- 

(MORE TO FOLLOW) Dow Jones Newswires

November 26, 2015 02:01 ET (07:01 GMT)

 Net cash flow from operating activities                                                       6,017                                    3,073            7,917 
-----------------------------------------------------------------------  ---------------------------  ---------------------------------------  --------------- 
 
 Cash flow from investing activities 
 Purchase of investments                                                                           -                                    (651)            (353) 
  Capital expenditure on investment properties                                               (1,009)                                     (38)            (383) 
  Proceeds from partial disposal of available-for-sale assets                                    627                                        -              565 
 Purchase of property, plant and equipment                                                     (125)                                      (6)             (14) 
 Cash paid on control/acquisition of new subsidiaries                                              -                                    (218)          (4,638) 
 Cash and cash equivalents received on control/acquisition of new 
  subsidiaries                                                                                     -                                      437            3,055 
 Dividends from associates                                                                        62                                       75              189 
 Distributions received                                                                          192                                       30              694 
 Interest received                                                                                69                                       35              145 
-----------------------------------------------------------------------  ---------------------------  ---------------------------------------  --------------- 
 Net cash flow from /(used in) investing activities                                            (184)                                    (336)            (740) 
-----------------------------------------------------------------------  ---------------------------  ---------------------------------------  --------------- 
 
 Cash flow from financing activities 
 Net repayment of shareholder loans in subsidiaries                                             (48)                                    (245)            (293) 
 Interest paid                                                                               (1,462)                                    (905)          (2,266) 
 Proceeds from bank loan                                                                       7,813                                    3,491            3,547 
 Repayment of finance lease/bank loans                                                       (9,015)                                  (3,357)          (5,776) 
 Sale of shares held in Treasury                                                                  69                                      106              144 
 Dividends paid                                                                              (1,142)                                    (892)          (1,291) 
 Dividends paid to non-controlling interest                                                     (26)                                     (15)             (16) 
-----------------------------------------------------------------------  ---------------------------  ---------------------------------------  --------------- 
 Net cash flow (used in) financing activities of continuing operations                       (3,811)                                  (1,817)          (5,951) 
 Net increase in cash and cash equivalents                                                     2,022                                      920            1,226 
-----------------------------------------------------------------------  ---------------------------  ---------------------------------------  --------------- 
 Cash and cash equivalents at the beginning of period                                         12,240                                   11,279           11,279 
-----------------------------------------------------------------------  ---------------------------  ---------------------------------------  --------------- 
 Currency translation gains/(losses) on cash and cash equivalents                               (60)                                    (151)            (265) 
-----------------------------------------------------------------------  ---------------------------  ---------------------------------------  --------------- 
 Cash and cash equivalents at the end of the period                                           14,202                                   12,048           12,240 
-----------------------------------------------------------------------  ---------------------------  ---------------------------------------  --------------- 
 
 

NOTES TO THE CONDENSED CONSOLIDATED RESULTS

for the six months ended 30 September 2015

   1.   Basis of Preparation 
   --    These interim condensed consolidated financial statements for the six months ended 30 

September 2015 have not been audited or reviewed and do not constitute statutory accounts

within the meaning of section 435 of the Companies Act 2006. They have been prepared in

accordance with the Group's accounting policies as set out in the Group's latest annual financial

statements for the year ended 31 March 2015 and are in compliance with IAS 34 "Interim

Financial Reporting". These accounting policies are drawn up in accordance with International

Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as issued by

the International Accounting Standards Board and as adopted by the European Union (EU).

-- The comparative figures for the financial year ended 31 March 2015 are not the statutory accounts for the financial year but are abridged from those accounts prepared under IFRS which have been reported on by the Group's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified, did not include references to any matter to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

-- These interim financial statements were approved by a committee of the Board on 25 November 2015.

   2.     Segmental Analysis 

Segment reporting six months to 30 September 2015

The parent holding company costs and related listing costs are shown separately under unallocated central costs.

 
                               Property fund   Group properties            Group fund    Unallocated central     TOTAL 
                                  management                       properties ("FOP")              overheads 
                                     GBP'000            GBP'000                GBP000                GBP'000   GBP'000 
 External revenue 
                                       1,845              6,099                 3,003                      -    10,947 
                                       1,845              6,099                 3,003                      -    10,947 
 
 Depreciation and 
  amortisation                          (13)              (747)                  (55)                      -     (815) 
---------------------  ---------------------  -----------------  --------------------  ---------------------  -------- 
 
 Operating profit 
 Existing operations                   1,188              3,952                 2,471                  (490)     7,121 
 Share of results in 
  associates                               -                 65                     -                      -        65 
 Dividend income                           -                192                     -                      -       192 
 Interest income                           -                 14                    45                     10        69 
 Interest expense                          -              (721)                 (797)                      -   (1,518) 
---------------------  ---------------------  -----------------  --------------------  ---------------------  -------- 
 Profit/(loss) before 
  tax                                  1,188              3,502                 1,719                  (480)     5,929 
---------------------  ---------------------  -----------------  --------------------  ---------------------  -------- 
 
 Analysed as: 
 Before performance 
  fees and related 
  items:                                 324              4,324                 1,242                  (480)     5,410 
 
 Performance fees                        864                  -                     -                      -       864 
 Realised foreign 
  currency loss                            -              (105)                  (79)                      -     (184) 
 Depreciation                              -              (717)                     -                      -     (717) 
 Fair value 
  adjustments to 
  investment 
  properties                               -                  -                   556                      -       556 
 Staff incentives                          -                  -                     -                      -         - 
 Profit/(loss) before 
  tax                                  1,188              3,502                 1,719                  (480)     5,929 
---------------------  ---------------------  -----------------  --------------------  ---------------------  -------- 
 

Revenue for the six months to 30 September 2015 from continuing operations consists of revenue arising in the United Kingdom 14% (2014: 34%) and Central and Eastern Europe 86% (2014: 66%) and all relates solely to the Group's principal activities.

(MORE TO FOLLOW) Dow Jones Newswires

November 26, 2015 02:01 ET (07:01 GMT)

Segment reporting six months to 30 September 2014

 
                               Property fund   Group properties            Group fund    Unallocated central     TOTAL 
                                  management                       properties ("FOP")              overheads 
                                     GBP'000            GBP'000                GBP000                GBP'000   GBP'000 
 External revenue                      3,550              1,582                 2,653                      -     7,785 
 
                                       3,550              1,582                 2,653                      -     7,785 
 
 Depreciation and 
  amortisation                          (14)                (3)                     -                      -      (17) 
---------------------  ---------------------  -----------------  --------------------  ---------------------  -------- 
 
 Operating profit 
 -existing operations                  2,903              2,218                 1,525                  (463)     6,183 
 -share of results in 
  associates                               -                107                     -                      -       107 
 -dividend income                          -                 30                     -                      -        30 
 -interest income                          -                  7                    13                     15        35 
 -interest expense                         -              (192)                 (742)                      -     (934) 
---------------------  ---------------------  -----------------  --------------------  ---------------------  -------- 
 Profit/(loss) before 
  tax                                  2,903              2,170                   796                  (448)     5,421 
---------------------  ---------------------  -----------------  --------------------  ---------------------  -------- 
 
 Analysed as: 
 Before performance 
  fees and related 
  items:                                 792              1,047                 1,085                  (448)     2,476 
 
 Performance fees                      2,111                  -                     -                      -     2,111 
 Realised foreign 
  currency loss                            -                  -                 (200)                      -     (200) 
 Recognition of 
  negative goodwill 
  on refinancing of 
  subsidiary                               -              1,123                     -                      -     1,123 
 Fair value 
  adjustments to 
  investment 
  properties                               -                  -                  (89)                      -      (89) 
 Staff incentives                          -                  -                     -                      -         - 
 Profit/(loss) before 
  tax                                  2,903              2,170                   796                  (448)     5,421 
---------------------  ---------------------  -----------------  --------------------  ---------------------  -------- 
 

Segment reporting year to 31 March 2015

 
           Property fund management   Group properties                     Group       Unallocated central     TOTAL 
                                                         fund properties ("FOP")                 overheads 
 ----------------------------------  -----------------  ------------------------  ------------------------  -------- 
                            GBP'000            GBP'000                   GBP'000                   GBP'000   GBP'000 
-------------------------  --------  -----------------  ------------------------  ------------------------  -------- 
 External revenue 
 -Existing operations         6,140              2,968                     5,217                         -    14,325 
 -Sale of inventory               -                  -                         -                         -         - 
 -Business acquisitions           -              3,479                       719                         -     4,198 
 Total                        6,140              6,447                     5,936                         -    18,523 
-------------------------  --------  -----------------  ------------------------  ------------------------  -------- 
 
 Depreciation and 
  amortisation                 (18)              (360)                       (6)                         -     (384) 
-------------------------  --------  -----------------  ------------------------  ------------------------  -------- 
 
 Operating profit             4,435              5,454                     2,454                   (2,938)     9,405 
 
 Share of results in 
  associates                      -                185                         -                         -       185 
 Distribution income              -                694                         -                         -       694 
 Interest income                  -                 36                        89                        20       145 
 Interest expense                 -              (730)                   (1,616)                         -   (2,346) 
 Profit/(loss) before tax     4,435              5,639                       927                   (2,918)     8,083 
-------------------------  --------  -----------------  ------------------------  ------------------------  -------- 
 
 Analysed as: 
 Before performance fees 
  and related items           1,605              4,489                     2,272                     (963)     7,403 
 Recognition of negative 
  goodwill on refinancing 
  of subsidiary                   -              1,123                         -                         -     1,123 
  Recognition of negative 
  goodwill on acquisition 
  of subsidiaries                 -                716                         -                         -       716 
 Fair value adjustment to 
  investment properties           -                  -                     (876)                         -     (876) 
 Depreciation                     -              (357)                         -                         -     (357) 
 Performance fees             3,365                  -                         -                         -     3,365 
 Staff incentives             (535)              (194)                     (184)                   (1,955)   (2,868) 
 Realised foreign 
  currency gain/(loss)            -              (138)                     (285)                         -     (423) 
 Profit/(loss) before tax     4,435              5,639                       927                   (2,918)     8,083 
-------------------------  --------  -----------------  ------------------------  ------------------------  -------- 
 
 
 
 
 Assets - Group                       1,633     84,478     58,522     6,301     150,934 
 Share of net assets of associates        -        979          -     (308)         671 
 Liabilities                          (289)   (72,437)   (45,666)   (2,194)   (120,586) 
-----------------------------------  ------  ---------  ---------  --------  ---------- 
 Net Assets                           1,344     13,020     12,856     3,799      31,019 
-----------------------------------  ------  ---------  ---------  --------  ---------- 
 

Assets, liabilities and costs that relate to Group central activities (including free cash) have not been allocated to business segments.

   3.     Tax Expense 

The tax credit / (charge) is based on a combination of actual current and deferred tax charged at an effective rate that is expected to apply to the profits for the full year.

 
             Sept 2015   Sept 2014   March 2015 
----------  ----------  ----------  ----------- 
 Current 
  tax            (588)       (339)        (525) 
 Deferred 
  tax             (73)        (94)          853 
----------  ----------  ----------  ----------- 
 Total           (661)       (433)          328 
----------  ----------  ----------  ----------- 
 
   4.     Earnings/NAV per share 

The basic earnings per ordinary share is calculated on the profit on ordinary activities after taxation and after non-controlling interests on the weighted average number of ordinary shares in issue, during the period.

Figures in the table below have been used in the calculations.

 
                         Six months      Six months          Year 
                              ended           ended         ended 
                            30 Sept    30 Sept 2014      31 March 
                               2015                          2015 
---------------------  ------------  --------------  ------------ 
 Basic - 
  pence per Share             4.28p           4.24p         7.21p 
 Diluted - 
  pence per Share             4.13p           4.07p         6.93p 
---------------------  ------------  --------------  ------------ 
 
                             Number          Number        Number 
---------------------  ------------  --------------  ------------ 
 Weighted average 
  number of ordinary 
  shares in issue 
  for basic             114,177,240     112,953,380   113,348,847 
 Share options            4,450,000       5,050,000     4,850,000 
---------------------  ------------  --------------  ------------ 
 Total for diluted      118,627,240     118,003,380   118,198,847 
---------------------  ------------  --------------  ------------ 
 
                            GBP'000         GBP'000       GBP'000 
---------------------  ------------  --------------  ------------ 
 Basic earnings               4,888           4,792         8,172 
 Diluted earnings 
  assuming full 
  dilution                    4,895           4,807         8,187 
---------------------  ------------  --------------  ------------ 
 
 
                      Six months      Six months        Year 
                           ended           ended       ended 
                         30 Sept    30 Sept 2014    31 March 
                            2015                        2015 
-------------------  -----------  --------------  ---------- 
 Net assets per 

(MORE TO FOLLOW) Dow Jones Newswires

November 26, 2015 02:01 ET (07:01 GMT)

First Property (LSE:FPO)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more First Property Charts.
First Property (LSE:FPO)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more First Property Charts.