Interim Results
20 Agosto 2003 - 2:01AM
UK Regulatory
RNS Number:8560O
Haslemere N.V.
20 August 2003
20 August 2003
HASLEMERE N.V. ("Haslemere")
Interim Report - June 2003
Haslemere NV reports a net loss of #3.8 (Euro5.5) million over the first 6 months
of the financial year ending 31 December 2003, compared with a net profit of
#31.4 (Euro45.3) million over the corresponding period for 2002, as the company
moves into the second phase of its business plan.
FINANCIAL RESULTS
Accounting Principles
The results for the half year ended 30 June 2003 have been prepared by
management under Dutch GAAP, adopting the same accounting principles used in the
accounts for the year ended 31 December 2002, applied on a consistent basis. All
amounts are stated in sterling and, in brackets, translated for convenience into
euros at the exchange rate prevailing on 30 June 2003 of #1 = Euro1.442585 (Euro1 =
#0.6932).
The Interim Report has not been audited.
Operating Performance
Haslemere reports a net loss of #3.8 (Euro5.5) million for the first six months of
the year ending 31 December 2003. Revaluation of the portfolio as at 30 June
2003 and profits arising from property sales, together with other movements in
reserves contributed to a negative total performance for the 6 months of #18.3
(Euro26.4) million.
Portfolio Activity
The deficit on revaluation of the property portfolio during the period amounted
to approximately #12.9 (Euro18.6) million. This figure takes into account profits
on sales amounting to #5.4 (Euro7.8) million and an external revaluation of the
portfolio as at 30 June 2003. Gross proceeds from the sale of property in the
half year were #275.1 (Euro396.9) million.
The revaluation for the corresponding period in 2002 produced a surplus of #18.6
(Euro26.8) million.
Shareholders' Equity
Net result, revaluation results, currency results and other movements in
shareholders' equity during the first half year produced a negative total
performance of #18.3 (Euro26.4) million compared with a positive total performance
of #33.6 (Euro48.5) million for the first half of 2002.
Shareholders' equity has decreased from #254.2 (Euro366.7) million at 31 December
2002 to #235.9 (Euro340.3) million at 30 June 2003.
Debt Financing
Total borrowings decreased during the half year from #537.6 (Euro775.5) million to
#287.6 (Euro414.9) million. This decrease includes the buy-in of #61.6 (Euro88.9)
million of the #200m 2024 Jersey bond, as previously reported, and the repayment
of certain variable rate borrowings. The company also disposed of a derivative
(fixed rate swap) contract during the half year.
The adjustment required to increase the value of fixed interest debt to its fair
value, is estimated at #38.1 (Euro55.0) million gross, and #26.7 (Euro38.5) million
net of tax relief, at 30 June 2003. The corresponding figures at the end of
December 2002 were #31.2 (Euro45.0) million and #21.9 (Euro31.6) million respectively.
Haslemere Partners
The company reported, on 17 June 2003, the first of the joint venture investment
partnerships under the title "Haslemere Partners", being a #230 (Euro332) million
joint venture owning five shopping centres in the UK. The company has a 20%
interest in this venture and actively manages the assets on behalf of the
partnership.
Management Changes
The company has announced, in a separate press release today, the departure of
Chris Bartram as chief executive of the group on 31 December 2003, to be
succeeded by Richard Debney.
In addition to this, the Annual General Meeting on 3 April 2003 approved the
proposed appointment to the Management Board of Richard Debney, Gary Felce
(Investment and Financial Analysis), David Lee (Finance) and Maaike Groos (Legal
Compliance).
The Management Board is also pleased to announce the promotion of Hannah Smith
to Head of Retail and to the board of the groups' principal retail asset
vehicle.
Outlook
As outlined in the full year results issued on 28 February 2003, we believe that
the short term outlook for UK commercial property remains uncertain, especially
in terms of rental growth. During the transition from phase one to phase two of
the business plan we anticipate that the company will revert to net
profitability.
Rotterdam, 19 August 2003
The Management Board
For further information contact:
Haslemere N.V.
Chris Bartram, Chief Executive +44 (0)20 7467 4500
David Lee, Finance Director +44 (0)20 7467 4500
Investor Relations +31 (0)10 201 36 21
Gavin Anderson & Company +44 (0)20 7554 1400
Byron Ousey / Charlotte Stone
Website : www.haslemerenv.com
Consolidated Profit and Loss Account
30 June 2003 30 June 2002 30 June 2003 30 June 2002
Half Year Half Year Quarter Ended Quarter Ended
(Unaudited) (Unaudited)
(Unaudited) (Unaudited) #m #m
#m #m
Gross rental
income 27.2 53.8 12.6 26.9
Operating
costs (5.1) (6.8) (2.4) (3.8)
---------- --------- --------- ---------
Net rental
income 22.1 47.0 10.2 23.1
Result of
participating
interest in
RoProperty - 4.1 - 1.1
Interest
income 0.7 1.0 0.2 0.7
Interest
expense (22.5) (14.6) (12.8) (6.7)
Management
costs and
supervisory
directors'
fees (3.8) (3.7) (2.2) (2.5)
---------- --------- --------- ---------
Net (loss)/
profit before
minority
interests and
tax (3.5) 33.8 (4.6) 15.7
Corporation
tax (0.3) (1.0) (0.2) (0.4)
---------- --------- --------- ---------
Net (loss)/
profit before
minority
interests (3.8) 32.8 (4.8) 15.3
Minority
interests - (1.4) - (0.7)
---------- --------- --------- ---------
Net (loss)/
profit (3.8) 31.4 (4.8) 14.6
Movements in
the reserves
as a result
of:
Revaluation
of property (12.9) 18.6 (12.6) 19.1
Currency
results 0.1 (0.1) - -
Management
costs (1.6) (1.6) (0.9) (1.1)
Costs in
connection
with the
acquisition
by Brack
Capital Real
Estate BV - (10.7) - (10.7)
Taxation
including
deferred
tax - (1.8) - (1.8)
Other
movements in
equity (0.1) (1.5) (0.1) 1.2
Minority
interests - (0.7) - (0.8)
---------- --------- --------- ---------
Total
performance (18.3) 33.6 (18.4) 20.5
---------- --------- --------- ---------
Net (loss)/
profit per
share3 (#0.17) #1.38 (#0.21) #0.64
Total
performance
per share3 (#0.80) #1.48 (#0.80) #0.90
Consolidated Balance Sheet
30 June '03 31 December '02
(Unaudited) (Audited)
#m #m
Assets
Investments
Land and buildings
Property 466.8 747.9
Development projects 3.3 4.7
Participating interests
Interest in RoProperty 0.1 1.1
----------- -----------
Total investments 470.2 753.7
Accounts receivable 16.1 28.3
Other assets
Cash 73.1 72.0
----------- -----------
Total assets 559.4 854.0
=========== ===========
Liabilities
Provisions 1.3 1.4
External financing
Mortgages 287.6 537.6
Accounts payable
Other accounts payable 34.6 60.8
----------- -----------
Total liabilities 323.5 599.8
=========== ===========
Shareholders' equity 235.9 254.2
=========== ===========
Composition of shareholders' equity:
Share capital 126.8 119.0
Share premium reserve 127.5 135.3
Revaluation reserve (41.0) (26.5)
General reserve and undistributed profits 26.4 26.4
(Loss) for the financial period to date (3.8) -
----------- -----------
Total shareholders' equity 235.9 254.2
----------- -----------
Net asset value per share #10.325 #11.115
Leverage 51.41% 62.95%
Movements in Shareholders' Equity: Half Year
30 June 2003 30 June 2002
(Unaudited) (Unaudited)
#m #m
Opening equity 254.2 1,061.1
Total performance (18.3) 33.6
Tax settlement - (19.5)
Sale of own shares - 4.5
-------- --------
Closing equity 235.9 1,079.7
-------- --------
Segment results
Industrial Office Retail Group Total
#m #m #m #m
6 months to 30 June 2003
Gross rental revenue 1.8 13.1 12.3 27.2
Net rental revenue 1.5 11.4 9.2 22.1
As at 30 June 2003
Land and buildings 123.8 236.4 109.9 470.1
6 months to 30 June 2002
Gross rental revenue 9.8 19.3 24.7 53.8
Net rental revenue 9.3 17.0 20.7 47.0
As at 31 December 2002
Land and buildings 154.9 295.1 302.6 752.6
Consolidated Cashflow Statement: Half Year
30 June 2003 30 June 2002
(Unaudited) (Unaudited)
#m #m
Operational activities
Net (loss) / profit before minority interests (3.8) 32.8
Result from non-consolidated participating
interests - (2.2)
Decrease / Increase in accounts receivable 12.2 (11.8)
Decrease / Increase in other accounts payable (26.2) 7.7
----------- -----------
(17.8) 26.5
Investment activities
Net dis-investments in property 268.7 178.1
Net dis-investments in development projects 0.9 0.1
Decrease in loan to RoProperty - 50.4
Dividend from RoProperty 1.0 52.8
----------- -----------
270.6 281.4
Financing activities
Net decrease in external financing (250.0) (190.1)
Dividend distribution to minority shareholders - (3.6)
Sale of own shares - 4.5
----------- -----------
(250.0) (189.2)
Other activities
Currency differences on working capital 0.1 0.8
Surtax settlement - (19.5)
Other movements in revaluation reserve excluding
deferred tax (1.8) (16.0)
----------- -----------
(1.7) (34.7)
Increase in cash 1.1 84.0
Cash at opening date 72.0 21.9
----------- -----------
Cash at closing date 73.1 105.9
----------- -----------
Supervisory and Management Board
Supervisory Board
Ronny Izaki - Co Chairman
Shimon Weintraub - Co Chairman
Michel J. Anghel
William S. Benjamin
Peter N. Blauw
Marty L. Edelman
Russell P. Jewell
Michael E. Kelley
W. Graeme Knox
Harry Leliveld
Jan H. van der Meer
Mark H. Newman
John M. Robertson
Management Board
Christopher J. Bartram, Chairman
Richard J. Debney
Gary J. Felce
Maaike Th. M. Groos
David R. Lee
Wilbert O.C.M. van Twuijver
Addresses
Haslemere N.V.
(investment company with variable capital, registered in Rotterdam, the
Netherlands)
Weena 327-329
2nd Floor
NL-3013 AL Rotterdam
Postbox 1370
NL-3000 BJ Rotterdam
Telephone (31)(10) 201 3604
Fax (31)(10) 201 3605
Internet www.haslemerenv.com
Haslemere Estates Management Ltd
43-45 Portman Square
London W1H 6HE
Telephone (44)(20) 7467 4500
Fax (44)(20) 7467 4505
Haslemere is a closed-end property investment company operating in the United
Kingdom. Haslemere is quoted on the Euronext Amsterdam stock market, has
secondary listings in London and Frankfurt and is listed on the Marche Libre in
Paris.
Other data
Interests of major investors
Statement pursuant to article 21, paragraph 2, sections b and c of Besluit
toezicht beleggingstellingen (Act on the Supervision of Investment Institutions,
or Btb).
The company knows of one party to be considered a major investor within the
context of this regulation, namely Brack Capital Real Estate BV.
During the period under review no material transactions, as defined in article
21, paragraph 2, section c of Btb took place.
Expense ratio
The expense ratio for this six month period was 7.5%, compared to 3.7% for the
corresponding period in 2002. This ratio is calculated as the total costs
compared to the weighted average net asset value over financial quarters. Total
costs include operating expenses, interest, management costs (including amounts
charged directly to revaluation reserve), taxation and other movements in
equity.
Contracted out services
The Company has a service agreement ("the Service Agreement") with Freeland
Corporate Advisors NV ("Freeland"). Under the Service Agreement, Freeland
provides the Company with (head) office facilities and staff in the Netherlands,
certain corporate services, including legal, regulatory, financial and tax
compliance services, and investor relations services.
Mr W O C M van Twuijver, a managing director of the Company, indirectly holds a
33.3% interest in Freeland. Mr van Twuijver is also a managing director of
Freeland.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAPPNFSXDEFE