RNS Number:7724I
Daejan Holdings PLC
29 November 2007
29 November 2007
DAEJAN HOLDINGS PLC
INTERIM RESULTS ANNOUNCEMENT for the half year ended 30 September 2007
The Board is pleased to present the Interim Statement for the half year ended 30
September 2007.
30/9/07 30/9/06
#000 #000
--------------------------------------------------------------------------------
Profit before tax 16,117 15,566
Profit after tax 28,707 10,903
* Overall, performance for the first half has been satisfactory and
continues to develop in line with expectations. The Group's financial
position continues to be strong.
* An interim dividend of 25p per share will be paid on 7 March 2008 to
shareholders on the register on 8 February 2008.
* Properties are not revalued at the half year, a full valuation of all
the Group's properties will be carried out by external professional valuers
at March 2008. Based on current expectations it is unlikely that this
revaluation will produce surpluses at the level which have been experienced
in recent years.
* There have been no significant property sales in the period; profits on
disposal relate to lease extensions.
* The Group's net deferred tax liabilities have been reduced from 30% to
28% following the reduction in Corporation Tax levels with effect from 1
April 2008. This has resulted in a credit of #17,522,000 to the consolidated
income statement.
* Our refurbishment and redevelopment projects continue to progress
satisfactorily with 164 Shaftesbury Avenue due to complete in December and
Worship Street in the City of London on course for completion late next
year.
* Repair expenditure has been running at a level somewhat below that of
recent periods largely as a result of the completion of the current cycle of
major works at our Park West property.
* There have been no material changes in vacancy and rental levels within
our portfolio since 31st March 2007. Rental income has continued in line
with expectations.
* So far as the outlook for the remainder of the financial year is
concerned, the principal risk affecting the Group remains exposure to
movements in the valuation of the Group's investment properties.
B S E Freshwater
Chairman
29 November 2007
For further information please contact:
Mark Jenner Terry Garrett
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 2007
Unaudited Unaudited Audited
6 Months 6 Months Year
ended ended ended
30/9/07 30/9/06 31/3/07
--------- ---------- --------
#000 #000 #000
Gross Rental Income 42,670 44,521 90,176
Property Operating Expenses (22,951) (26,514) (49,808)
--------- ---------- --------
Net Rental & Related Income 19,719 18,007 40,368
Profit on Disposal of
Investment Properties 3,335 5,710 17,169
Net Valuation Gains on
Investment Properties 0 0 153,872
Administrative Expenses (4,596) (4,028) (7,630)
--------- ---------- --------
Operating Profit before Net
Financing Costs 18,458 19,689 203,779
Fair Value Gains on Financial
Instruments and current investments 601 764 2,578
Financial Income 1,053 759 1,669
Financial Expenses (3,995) (5,646) (9,710)
--------- ---------- --------
Net Financing Costs (2,341) (4,123) (5,463)
--------- ---------- --------
--------- ---------- --------
Profit Before Taxation 16,117 15,566 198,316
Income Tax Credit/(Expense) 12,590 (4,663) (56,487)
--------- ---------- --------
Profit for the Period 28,707 10,903 141,829
========= ========== ========
Attributable to:
Equity holders of the parent 28,665 10,643 141,536
Minority Interest 42 260 293
--------- ---------- --------
Profit for the Period 28,707 10,903 141,829
========= ========== ========
Basic Diluted Earnings per Share 175.9 p 65.3 p 868.6 p
========= ========== ========
Consolidated Interim Statement of Recognised Income & Expense for the six months ended 30
September 2007
Unaudited Unaudited Audited
6 Months 6 Months Year
ended ended ended
30/9/07 30/9/06 31/3/07
--------- ---------- ---------
#000 #000 #000
Foreign Exchange Losses (4,671) (9,331) (14,505)
--------- ---------- ---------
Income & Expense Recognised
Directly in Equity (4,671) (9,331) (14,505)
Profit for the Period 28,707 10,903 141,829
--------- ---------- ---------
Total Recognised Income
& Expense for the Period 24,036 1,572 127,324
========= ========== =========
Attributable to :
Equity Holders of the
Parent 23,994 1,312 127,031
Minority Interest 42 260 293
--------- ---------- ---------
Total Recognised Income &
Expense for the Period 24,036 1,572 127,324
========= ========== =========
Consolidated Balance Sheet as at 30 September 2007
Unaudited Unaudited Audited
30/9/07 30/9/06 31/3/07
--------- --------- ---------
#000 #000 #000
Assets
------
Investment Properties 1,230,834 1,087,656 1,233,885
Other Investments 0 617 617
Deferred Tax Assets 1,551 2,384 1,842
--------- ---------- ---------
Total Non-Current Assets 1,232,385 1,090,657 1,236,344
--------- ---------- ---------
Trade & Other Receivables 36,972 34,226 33,924
Investments 231 217 226
Cash at Bank 41,711 31,541 31,926
--------- ---------- ---------
Total Current Assets 78,914 65,984 66,076
--------- ---------- ---------
--------- ---------- ---------
Total Assets 1,311,299 1,156,641 1,302,420
========= ========== =========
Equity
------
Issued Capital 4,074 4,074 4,074
Share Premium Account 555 555 555
Retained Earnings 881,092 741,971 857,098
--------- ---------- ---------
Total Equity Attributable to Equity
Holders of the Parent 885,721 746,600 861,727
Minority Interest 125 143 135
--------- ---------- ---------
Total Equity 885,846 746,743 861,862
--------- ---------- ---------
Liabilities
-----------
Interest Bearing Loans & Borrowings 114,312 122,079 111,940
Deferred Tax Liabilities 246,976 218,633 264,686
--------- ---------- ---------
Total Non-Current Liabilities 361,288 340,712 376,626
--------- ---------- ---------
Bank Overdrafts 183 0 30
Interest Bearing Loans & Borrowings 117 2,217 3,188
Trade & Other Payables 40,720 45,643 37,729
Taxation 23,145 21,326 22,985
--------- ---------- ---------
Total Current Liabilities 64,165 69,186 63,932
--------- ---------- ---------
Total Liabilities 425,453 409,898 440,558
--------- ---------- ---------
Total Equity & Liabilities 1,311,299 1,156,641 1,302,420
========= ========== =========
Consolidated Statement of Cash Flows for the six months ended 30 September 2007
Unaudited Unaudited
Audited
6 Months 6 Months
Year
Ended ended
ended
30/9/07 30/9/06
31/3/07
-------------------- --------------------
--------------------
#000 #000 #000 #000 #000
#000
Cash Flows From
---------------
Operating Activities
--------------------
Net Cash Generated
from Operations 15,697 16,008 28,716
Interest Received 1,053 759 1,673
Interest Paid (3,755) (4,879) (9,858)
Drawings by Minority
Interests in USA partnership (52) (447) (488)
U.K. Corporation Tax Paid (5,085) (855) (4,765)
Overseas Tax Paid (91) (284) (655)
-------- -------- -------
Net Cash from
Operating Activities 7,767 10,302
14,623
Cash Flows from
---------------
Investing Activities
--------------------
Acquisitions and Additions
to Investment Properties (3,609) (2,709) (3,488)
Proceeds from Sale of
Investment Properties 3,774 6,937 19,558
-------- -------- -------
Net cash from
Investing Activities 165 4,228
16,070
Cash Flows from
---------------
Financing Activities
-------------------
New Secured Loans 0 0 20,000
Repayment of Secured Loans 0 (24,681) (48,377)
Repayment of Mortgage
Advances (5,363) (621) (1,186)
New Mortgage Advances 7,513 6,188 5,906
Dividends Paid 0 0 (10,592)
-------- -------- -------
Net Cash from
Financing Activities 2,150 (19,114)
(34,249)
---------- ----------
----------
Net Increase/(Decrease) 10,082 (4,584)
(3,556)
in Cash & Cash Equivalents
Cash & Cash Equivalents
Brought Forward 31,896 37,285
37,285
Effect of Exchange Rate
Fluctuations on Cash Held (450) (1,160)
(1,833)
--------- --------
---------
Cash & Cash Equivalents 41,528 31,541
31,896
========= ========
=========
Basis of preparation
This interim financial information has been prepared in accordance with
International Financial Reporting Standard 34 (IFRS) 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 2007. 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 IFRSs 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 2008 and concluded that they
have no material effect on either the current or prior periods.
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 240 of the Companies Act 1985. The auditors' report on the
statutory accounts for the year to 31 March 2007 was unqualified and did not
contain a statement under section 237 of the Companies Act 1985. Statutory
accounts for the year to 31 March 2007 have been delivered to the Registrar of
Companies. The interim financial statements were approved by the Board of
Directors on 28 November 2007. The preparation of the interim financial
statements 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.
Dividends
No dividends were paid in the 6 months to 30 September 2007(6 months to 30
September 2006 (Nil)
Investment Properties
Freehold Long Leasehold Short Leasehold Total 30September2007
#000 #000 #000 #000
Professional
Valuation at 1
April 2007 969,833 248,733 15,319 1,233,885
Disposals (111) (328) 0 (439)
Acquisitions 843 246 0 1,089
Additions to
Existing
Properties 3,272 92 0 3,364
Foreign Exchange
Movements (5,837) (1,228) 0 (7,065)
At 30 September
2007 968,000 247,515 15,319 1,230,834
Properties are not re-valued at the half year. A full valuation of all the
Group's properties will be carried out by external professional valuers at 31
March 2008.
Related Party Transactions
Day-to-day management of the Group's properties in the United Kingdom 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
and are also interested in the share capital of Highdorn Limited.
Mr BSE Freshwater, Mr SI Freshwater and Mr D Davis are also directors of the
parent company of Freshwater Property Management Limited but have no beneficial
interest in either company.
The net amounts paid for the provision of various management services charged by
the Group's managing agents Highdorn Co Limited and Freshwater Property
Management Limited were #1.6 million (year to 31 March 2007 #2.9 million).
At 30 September 2007 #5.0 million was due to Highdorn Co Limited and Freshwater
Property Management Limited (31 March 2007 #4.4 million).
Statement of Director's 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 427 and DTR 428.
The Directors of Daejan Holdings PLC are listed in the Daejan Holdings PLC
Annual Report for 31 March 2007. A list of current directors is maintained on
the Daejan Holdings PLC website daejanholdings.com.
B S E Freshwater
Chairman
29 November 2007
Solomon I Freshwater
29 November 2007
This information is provided by RNS
The company news service from the London Stock Exchange
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