RNS Number:0711Q
Gresham House PLC
23 September 2003
GRESHAM HOUSE plc
36 Elder Street, London E1 6BT
Telephone: 020 7588 7352, Facsimile: 020 7377 2946
CHAIRMAN'S INTERIM STATEMENT
The results for the half year ended 30th June, 2003 show a return on ordinary
activities after tax for the Revenue account of #279,000, compared with #430,000
for the comparable period last year and a much improved position for the Capital
account even though this is still showing a loss of #176,000 for the period.
Overall this has resulted in a basic return per ordinary share of 2.3p against a
loss of 30.6p for the comparable period last year.
Underlying revenue streams have remained fairly constant compared with the
similar period last year, the increase being attributable to construction
activities undertaken in the period under review. These activities also largely
account for the increase in Other expenses although the Group has also incurred
additional costs in maintaining its property portfolio.
The investment portfolio reflects improvements in the markets generally and,
whilst the climate for start up situations remains very difficult, we are seeing
many more promising investment opportunities. As stated above, improvements to
the property portfolio have continued during the period and have been met from
Group resources rather than from an increase in borrowings.
Whilst the basic net asset value per ordinary share has fallen by 2.7% to 475.2p
over the period this is solely as a result of the issue of 171,299 ordinary
shares through the exercise of rights under the Company's Share Option schemes
and under the terms of the 8% Secured Redeemable Loan Stock 2006 issued by
Gresham House Finance plc.
Your Board continues its strategy of seeking out innovative early stage
investments but remains cautious as to short term prospects.
A P Stirling
Chairman 23rd September, 2003.
GRESHAM HOUSE plc
INTERIM RESULTS 2003
UNAUDITED CONSOLIDATED STATEMENT OF TOTAL RETURN
for the Half Year ended 30th June, 2003
Six months to Six months to Year ended
30th June, 2003 30th June, 2002 31st December, 2002
(Unaudited) (Unaudited) (Audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
#' 000 #' 000 #' 000 #' 000 #' 000 #' 000 #' 000 #' 000 #' 000
Loss on Investments - (176) (176) - (1,767) (1,767) - (3,497) (3,497)
Income:
Dividend and Interest Income 114 - 114 135 - 135 276 - 276
Rental Income 1,505 - 1,505 1,473 - 1,473 2,908 - 2,908
Other operating income 331 - 331 157 - 157 1,056 - 1,056
______________________________________________________________________________________________
1,950 (176) 1,774 1,765 (1,767) (2) 4,240 (3,497) 743
Other expenses (940) - (940) (606) - (606) (1,767) - (1,767)
______________________________________________________________________________________________
Net return before finance
costs and taxation 1,010 (176) 834 1,159 1,767) (608) 2,473 (3,497) (1,024)
Interest payable and
similar charges (731) - (731) (729) - (729) (1,450) - (1,450)
______________________________________________________________________________________________
Return on ordinary
activities before
taxation 279 (176) 103 430 (1,767) (1,337) 1,023 (3,497) (2,474)
Taxation - - - - - - -
______________________________________________________________________________________________
Return on ordinary
activities after
taxation attributable to
equity shareholders 279 (176) 103 430 (1,767) (1,337) 1,023 (3,497) (2,474)
Dividend - Equity shares - - - - - - (141) - (141)
______________________________________________________________________________________________
Transfer to reserves 279 (176) 103 430 (1,767) (1,337) 882 (3,497) (2,615)
==============================================================================================
Basic return per
Ordinary Share 6.2p (3.9)p 2.3p 9.8p (40.4)p (30.6)p 23.2p (79.5)p (56.3)p
==============================================================================================
Diluted return per
Ordinary Share 6.0p (3.8)p 2.2p 9.3p (40.4)p (31.1)p 21.6p (73.9)p (52.3)p
==============================================================================================
Statement of Total Recognised Gains and Losses
30th June 30th June 31st December
2003 2002 2002
#'000 #'000 #'000
Profit for the financial period 279 430 1,023
Net movement on capital reserves (176) (1,767) (3,497)
________ ________ ________
103 (1,337) (2,474)
======== ======== ========
Notes
(i) The revenue column of this statement is the consolidated profit and loss
account of the group.
(ii) All revenue and capital items in the above statement derive from continuing
operations.
GRESHAM HOUSE plc
INTERIM RESULTS 2003
UNAUDITED CONSOLIDATED BALANCE SHEET
as at 30th June, 2003
30th June, 2003 30th June, 2002 31st December, 2002
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Investments
Securities 6,234 7,958 6,649
Properties 31,666 29,455 30,976
Tangible assets 391 393 382
________ ________ ________
38,291 37,806 38,007
________ ________ ________
Current assets 7,779 7,815 7,087
Creditors - amounts falling due
within one year 5,496 4,408 5,346
________ ________ ________
Net current assets 2,283 3,407 1,741
________ ________ ________
Total assets less current liabilities 40,574 41,213 39,748
Creditors - amounts falling due
after more than one year 18,452 18,132 17,860
Deferred income 245 245 245
________ ________ ________
21,877 22,836 21,643
======== ======== ========
Capital and reserves
Called up share capital (Note 5) 1,151 1,100 1,108
Share premium account 453 287 364
Other reserves
Revaluation reserve 8,064 8,064 8,064
Capital reserve - realised 22,425 22,879 22,403
Capital reserve - unrealised (256) 1,197 (57)
Revenue reserves (9,960) (10,691) (10,239)
________ ________ ________
Equity shareholders' funds 21,877 22,836 21,643
======== ======== ========
Basic Net Asset Value per ordinary share 475.2p 518.9p 488.3p
======== ======== ========
Diluted Net Asset Value per ordinary share 461.4p 489.4p 454.2p
======== ======== ========
GRESHAM HOUSE plc
INTERIM RESULTS 2003
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
for the Half Year ended 30th June, 2003
Six months to Six months to 12 months to
30th June, 2003 30th June, 2002 31st December, 2002
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Cashflow from operating activities
Investment income 81 71 106
received
Interest received 33 64 166
Rental income received 1,477 1,937 3,479
Other cash payments (121) (916) (743)
________ ________ ________
Net cash inflow from operating activities (Note 2) 1,470 1,156 3,008
======== ======== ========
Returns on investment and servicing of finance
Interest paid on 2.5% Secured Redeemable Loan Stock 2001 - (9) (6)
Interest paid on 8% Secured Redeemable Loan Stock 2006 (146) (92) (243)
Interest paid on property loans (577) (711) (1,183)
Net cash outflow from investments ________ ________ ________
and servicing of finance (723) (812) (1,432)
======== ======== ========
Capital expenditure and financial investment
Sale of tangible fixed assets 6 10 10
Purchase of tangible fixed assets (19) - -
Purchase of investments (557) (855) (1,633)
Sale of investments 795 1,333 1,690
Net loans (advanced)/repaid (51) 472 483
Purchase of investment properties (690) (572) (2,093)
Purchase of developments in hand (146) (134) (822)
Net cash (outflow)/inflow from ________ ________ ________
capital expenditure and financial investment (662) 254 (2,365)
======== ======== ========
Corporation tax paid - - -
======== ======== ========
Equity dividends paid (141) (136) (136)
======== ======== ========
Cash (outflow)/inflow before use of liquid
resources and financing (56) 462 (925)
======== ======== ========
Management of liquid resources
Acquisition of listed securities held for dealing (261) (50) (36)
======== ======== ========
Financing
Repayment of loans (391) (542) (1,238)
Receipt of loans 199 1,209 1,929
Share capital issued 132 53 138
Net cash (outflow)/inflow from financing (60) 720 829
======== ======== ========
(Decrease)/increase in Cash (377) 1,132 (132)
======== ======== ========
GRESHAM HOUSE plc
INTERIM RESULTS 2003
RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
Six months to Six months to 12 months to
30th June, 2003 30th June, 2002 31st December, 2002
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Retained profit for the period 279 430 882
Revaluation surplus
Net movement on capital reserves (177) (1,767) (3,497)
Issue of ordinary shares 132 53 138
________ ________ ________
234 (1,284) (2,477)
Shareholders' funds at beginning of period 21,643 24,120 24,120
________ ________ ________
Shareholders' funds at end of period 21,877 22,836 21,643
======== ======== ========
GRESHAM HOUSE plc
INTERIM RESULTS 2003
NOTES TO THE INTERIM STATEMENT
for the Half Year ended 30th June, 2003
1. Basis of preparation
(a) The interim statement has been prepared in accordance with the accounting
policies as set out in the Group's Report and Accounts for the year ended
31st December, 2002.
(b) The interim statement is neither audited nor reviewed. The figures for the
year ended 31st December, 2002 do not comprise statutory accounts for the
purpose of section 240 of the Companies Act 1985, and have been extracted
from the Group's full accounts for that year which received an unqualified
Auditors' Report and did not contain a statement under section 237(2) or
(3) of the Companies Act 1985. The accounts have been filed with the
Registrar of Companies.
(c) In accordance with the Company's accounting policies the above figures take
into account the results of significant investments only to the extent of
dividends received amounting to #1,717 (2002: #1,717).
Six months to Six months to 12 months to
30th June, 2003 30th June, 2002 31st December, 2002
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
2. Reconciliation of operating profit to operating cash flows.
Return on ordinary activities before taxation 279 430 1,023
Interest payable 731 729 1,450
________ ________ ________
1,010 1,159 2,473
Depreciation 4 3 14
Loan provision written back - - 4
(Increase)/decrease in debtors (611) 344 467
Increase/(decrease) in creditors 1,067 (350) 50
________ ________ ________
Net cash flow from operating activities 1,470 1,156 3,008
======== ======== ========
3. Reconciliation of net cash flow to movement in net debt.
(Decrease)/increase in cash for the period (377) 1,132 (132)
Cash outflow from repayment of debt 391 542 1,238
Cash inflow from loans received (199) (1,209) (1,929)
Cash outflow from increase
in liquid resources 261 50 36
________ ________ ________
Movement in net debt in the period 76 515 (787)
Net debt at beginning of period (17,840) (17,053) (17,053)
________ ________ ________
Balance at end of period (17,764) (16,538) (17,840)
======== ======== ========
4. Analysis of net debt
At 1st January Cash flow Other non-cash At 30th June
2003 changes 2003
#'000 #'000 #'000 #'000
Cash in hand and at bank / brokers 2,592 (377) 2,215
Debt due within one year (2,918) 192 592 (2,134)
Debt due after one year (17,860) - (592) (18,452)
________ ________ ________ ________
(20,778) 192 - (20,586)
Current asset investments 346 261 607
________ ________ ________ ________
(17,840) 76 - (17,764)
======== ======== ======== ========
5. Called up share capital
During the period under review 97,000 share options were exercised at par under
the Unapproved Share Option Schemes and, in addition, 74,299 ordinary shares
were issued under the terms of the 8% Secured Redeemable Loan Stock 2006; 26,572
ordinary shares at a price of 180p per share; and 47,727 ordinary shares at a
price of 126p per share.
The allotted share capital has therefore increased by 171,299 ordinary shares.
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