TIDMBML
RNS Number : 9247B
Balmoral International Land PLC
28 February 2011
Balmoral reports results for 2010
Balmoral International Land plc has released its preliminary
results for the year ended 31 December 2010.
-- Improved operating result:
- Net rental income up 8% to EUR14.7 million.
- Finance costs down 8% to EUR6.7 million.
- Administrative expenses down 14% to EUR3.8 million.
-- Group net assets down EUR30.3 million due to further reductions
in valuations, though rate of decline reduced significantly.
-- Net assets at 31 December 2010 EUR30.0 million compared
to EUR60.3 million at preceding year end, giving net asset
value per share of EUR0.0514 compared to EUR0.1032 previously.
-- Summary of Movement in Net Assets 2010 2009
EUR'm EUR'm
Net rental income 14.7 13.6
Finance costs (6.7) (7.3)
Administration costs (3.8) (4.4)
------- -------
Operating income 4.2 1.9
Fair value adjustments:
Wholly/majority owned property (29.9) (84.9)
Equity accounted investees (3.1) (21.3)
Translation effect of foreign exchange (net) (0.6) (1.0)
Income tax (0.9) 15.5
------- -------
Movement in net assets (30.3) (89.8)
======= =======
Commenting on the results, Balmoral International Land plc
chairman, Carl McCann, said:
"The continuing difficult economic conditions resulted in
further reductions in property values in 2010, particularly in
Ireland, although the rate of decline slowed significantly.
Balmoral continues to closely manage its portfolio of assets to
maximise income, minimise costs and optimise values in anticipation
of a recovery in the property market when general economic
conditions improve."
Balmoral International Land plc
28 February 2011
For further information, please contact:
Brian Bell, WHPR - Tel: +353-1-669-0030
Balmoral International Land plc
Preliminary results to 31 December 2010
Operating review
Against a backdrop of continuing subdued economic activity, 2010
was another difficult year in the property market. The period saw
further disappointing reductions in valuations for Balmoral,
particularly in Ireland, although the rate of decline slowed
significantly. Toward the end of the year, agents began to report
some signs of recovery in activity in certain market segments and
geographies. With a steadying economy and very little new
construction taking place, it may not be unreasonable to anticipate
that a turn in market conditions may be approaching.
Developments during the year
As in the previous year, Balmoral undertook only essential
investment expenditure in 2010. The following were the principal
developments in the business during the year:
-- Following the passing of a special resolution at an
extraordinary general meeting of the company on 7 October 2010, the
company changed its name to Balmoral International Land plc from
Blackrock International Land plc. The change of name arose
following the resolution of a trade mark dispute between the
company and BlackRock Inc., a US-based international management and
investment company. As a result of the settlement, the terms of
which are to remain confidential, the company did not suffer any
financial loss in connection with the direct costs of the name
change.
-- Two disposals were concluded during the year, both at prices
at or in excess of their book value at the time. In March, a
3,700m(2) industrial facility in Dundalk was sold for EUR2.9
million. In June, the disposal of the 1,570m(2) office building in
Milton Keynes was completed for proceeds of EUR3.85 million.
-- These two transactions helped to strengthen the group's cash
on hand position, resulting in a net balance at 31 December 2010 of
EUR10.7m.
-- In February 2010, Balmoral acquired the remaining 50%
interest in the Drum Estate, Edinburgh from the administrator of
Applecross Properties Limited for a nominal consideration. Drum
Estate consists of 316 acres of strategic land to the south of
Edinburgh city centre with medium to long term potential for mixed
use development.
-- Good progress was made during the year on moving forward the
planning process in relation to several of the group's land
holdings, including those in Scotland and East London.
-- In the Netherlands, the lease on the office building in
Maastricht was successfully regeared, extending the fixed lease
term until 2019. A number of smaller lettings were also completed
in the Vida building, Amsterdam and in Amersfoort.
-- In Belgium, significant progress was made on letting the
Leopold III office building in Brussels, with occupancy increasing
from 42% to 73% by the year end.
-- Overall, Balmoral continued to benefit from a robust rental
income stream and no defaults arose among lessees during the
year.
-- The rate of decline in the value of the group's property
portfolio slowed significantly in the year - in Ireland, the
reduction was 25% (2009: 39%); in the UK, 3% (2009: 21%); in
Continental Europe, 6% (2009: 9%).
Future Plans
The group will continue working to enhance the value of its
assets through the pursuit of improved designations, maximising
income opportunities and minimising property and operating
costs.
Investment property
Total investment property assets at 31 December 2010 amounted to
EUR208.8 million compared to EUR237.1 million at the preceding year
end. The movements in values are analysed geographically as
follows:
Continental
Ireland UK Europe Total
EUR'm EUR'm EUR'm EUR'm
Value at 1 January 2010 94.8 66.3 76.0 237.1
Investments during year 0.2 5.4 0.2 5.8
Disposals during the
year (2.9) (3.8) - (6.7)
Fair value adjustments (23.2) (1.9) (4.8) (29.9)
Translation of sterling
denominated properties - 2.5 - 2.5
-------- ------ ------------ -------
Value at 31 December
2010 68.9 68.5 71.4 208.8
======== ====== ============ =======
The most significant investment in the period was in the UK
following the acquisition of the remaining 50% of the Drum Estate
in Edinburgh.
Equity Accounted Investees
Total equity accounted investees at 31 December 2010 amounted to
EUR4.9 million, compared to
EUR6.7 million at the preceding year end. The movements in
values are analysed geographically as follows:
Continental
Ireland UK Europe Total
EUR'm EUR'm EUR'm EUR'm
Value at 1 January 2010 6.4 0.3 - 6.7
Investments during year 0.9 0.6 0.6 2.1
Disposals during the
year - (0.8) - (0.8)
Fair value adjustments (5.3) 0.3 1.9 (3.1)
-------- ------ ------------ ------
Value at 31 December
2010 2.0 0.4 2.5 4.9
======== ====== ============ ======
Impact of foreign exchange on movement in net assets
The movement in the value of the group's UK property assets
included an increase of EUR2.5 million arising from the
strengthening of sterling against the euro during the year. This
benefit was offset by a net EUR3.1 million decrease in net assets
arising on the translation of loans and cash denominated in
sterling and other movements. The net impact of foreign exchange on
the group's net assets for the period was a decrease of EUR0.6
million.
The translation effect of foreign exchange on the value of the
group's equity accounted investees has been accounted for through
the Statement of Comprehensive Income. The other translation
effects have been dealt with through the Income Statement.
Analysis of property assets by geography and sector
In reviewing the group's investment property portfolio, it is
useful to consider the following geographic and sectoral
analysis:
Continental
Ireland UK Europe Total
EUR'm EUR'm EUR'm EUR'm
Industrial 50.4 23.4 - 73.8
Office 6.4 12.7 52.2 71.3
Mixed use 10.1 19.6 19.2 48.9
Residential 2.0 12.8 - 14.8
-------- ------ ------------ ------
Total 68.9 68.5 71.4 208.8
======== ====== ============ ======
Percentage 33% 33% 34% 100%
-------- ------ ------------ ------
Overall, the group's property portfolio at 31 December 2010
comprised 35% industrial, 34% office, 24% mixed use and 7%
residential. In Ireland, 73% was weighted to industrial, 15% to
mixed use, 9% to office and 3% to residential. In the UK, it is 34%
industrial, 28% mixed use, 19% office and 19% residential. In
Continental Europe, it is 73% office and 27% mixed use.
The equity accounted investees portfolio valued at EUR4.9m at 31
December 2010 comprised 50% office, 40% industrial and mixed use
10%.
All of the principal properties in the group's portfolio at year
end were subject to independent valuation primarily by Lisneys in
Ireland, by Lambert Smith Hampton, BTW Shiells, Brown & Lee and
Colliers International in the UK and by Delta State and Jones Lang
LaSalle for Continental Europe.
Financial review
Finance
The group's financing arrangements fall into three broad
categories. In general, equity accounted investees are financed by
separate project-specific debt. Similarly, the Dutch and Belgian
portfolios and the investment in the Drum Estate in Edinburgh are
funded on a stand-alone basis. The group's remaining property
assets are financed by a general corporate facility that is subject
to a loan-to-value covenant. The current and previous year end
balance sheets disclose relevant ratios on this facility that are
in excess of the stipulated 50%.
The loan facility on the Dutch portfolio matured on 31 December
2010 and several other of the group's loans are, or will be,
subject to review and/or repayment in 2011. The company is engaged
in discussions with each of the relevant banks, including the
provider of the general corporate facility, on extensions of these
various arrangements. The group currently anticipates reaching
satisfactory conclusions on these discussions and, accordingly,
expects to have sufficient resources to meet its ongoing
requirements.
International Financial Reporting Standards
The group's annual statutory financial statements are prepared
in accordance with International Financial Reporting Standards
(IFRS) as adopted by the European Union. The information contained
herein comprises an extract from the draft financial statements
prepared on this basis.
Net rental income
Gross rental income for the year was EUR16.5 million (2009:
EUR16.9 million). Property outgoings were EUR1.8 million (2009:
EUR3.4 million), which figure is stated after inclusion of a
receipt of EUR1.2 million (2009: EURNil) relating to compensation
for dilapidations on termination of a lease during the year.
Administrative expenses
Administrative expenses for the year were EUR3.8 million (2009:
EUR4.4 million).
Net finance expense
Net finance expense was EUR9.8 million (2009: EUR14.0 million),
comprising interest and charges incurred on bank borrowings of
EUR7.0 million (2009: EUR7.7 million) and a loss on translation of
sterling loans and financial assets of EUR3.1 million (2009: EUR6.6
million) offset by interest received on cash deposits and loans to
joint ventures of EUR0.3 million (2009: EUR0.3 million).
Taxation
The tax charge for the year of EUR0.9 million (2009: credit
EUR15.5 million) includes an increase of
EUR1.1 million (2009: credit EUR15.6 million) in the provision
for deferred tax. This has been accounted for in accordance with
IAS 12 and, accordingly, includes full provision for any tax that
might arise in the event that the group disposes of a property for
the amount stated in the balance sheet.
Results per share
Basic and diluted result per share for the period was
(EUR0.0517) (2009:EUR0.1539).
Dividend
Consistent with the stated distribution policy of the company,
no dividend has been declared for the period.
Total equity attributable to shareholders
Total equity attributable to shareholders at 31 December 2010
amounted to EUR30.0m (2009: EUR60.2m), resulting in basic and
diluted net asset values per share of EUR0.0514 (2009:
EUR0.1032).
Net borrowings
The group's net borrowings at 31 December 2010 amounted to
EUR180.5 million (2009: EUR181.4 million). The year-end ratio of
group net borrowings to group property was 84.5% (2009: 74.4%).
Conclusion
The year ended 31 December 2010 was another difficult period for
the property sector. However, the group continues to benefit from a
substantial portfolio of attractive and well diversified properties
that have the potential to show significant value uplifts from year
end levels when an improvement in market conditions emerges. In the
meantime, Balmoral remains focused on maximising rental income,
reducing costs and adding value to its properties wherever
possible.
28 February 2011
Consolidated income statement
for the year ended 31 December 2010
2010 2009
Continuing Operations EUR'000 EUR'000
Gross rental and related income 16,499 16,924
Property outgoings (1,835) (3,365)
--------- ----------
Net rental and related income 14,664 13,559
Net property valuation movement (27,373) (79,320)
--------- ----------
Net property and related expense (12,709) (65,761)
Administrative expenses (3,832) (4,355)
--------- ----------
Result from operating activities (16,541) (70,116)
Share of result of equity accounted
investees (3,084) (21,297)
Finance income 697 306
Finance expense (10,463) (14,285)
--------- ----------
Net finance expense (9,766) (13,979)
--------- ----------
Result before tax (29,391) (105,392)
Income tax (expense)/credit
- current 253 (70)
- deferred (1,142) 15,603
--------- ----------
Net income tax (889) 15,533
--------- ----------
Result for the year (30,280) (89,859)
--------- ----------
Attributable to:
Equity shareholders of the company (30,176) (89,780)
Non-controlling interest (104) (79)
--------- ----------
Result for the year (30,280) (89,859)
========= ==========
Basic & diluted result per share
(euro cent) (5.17) (15.39)
========= ==========
Consolidated statement of comprehensive income
for the year ended 31 December 2010
2010 2009
EUR'000 EUR'000
Result for the year (30,280) (89,859)
Other comprehensive income
Foreign currency translation
on foreign operations (33) 14
--------- ---------
Total comprehensive income for
the year (30,313) (89,845)
========= =========
Attributable to:
Shareholders of the company (30,209) (89,766)
Non-controlling interest (104) (79)
--------- ---------
Total comprehensive income for
the year (30,313) (89,845)
--------- ---------
Consolidated statement of changes in equity
for the year ended 31 December 2010
31 December 2010
Attributable to equity holders of the parent
Currency
Share Share Retained translation Non-controlling Total
capital premium earnings reserve Total interest equity
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Balance at
31 December
2009 5,833 201,085 (139,370) (7,372) 60,176 147 60,323
Total
comprehensive
income - - (30,176) (33) (30,209) (104) (30,313)
-------- -------- ---------- ------------ --------- ---------------- ---------
Balance at
31 December
2010 5,833 201,085 (169,546) (7,405) 29,967 43 30,010
======== ======== ========== ============ ========= ================ =========
31 December 2009
Attributable to equity holders of the parent
Currency
Share Share Retained translation Non-controlling Total
capital premium earnings reserve Total interest equity
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Balance at
31 December
2008 5,833 201,085 (49,590) (7,386) 149,942 226 150,168
Total
comprehensive
income - - (89,780) 14 (89,766) (79) (89,845)
-------- -------- ---------- ------------ --------- ---------------- ---------
Balance at
31 December
2009 5,833 201,085 (139,370) (7,372) 60,176 147 60,323
======== ======== ========== ============ ========= ================ =========
Consolidated balance sheet
at 31 December 2010
2010 2009
EUR'000 EUR'000
Assets
Non-current assets
Investment property 208,759 237,067
Property, plant and equipment 34 69
Investments in equity accounted
investees 4,922 6,707
Deferred tax assets 5,843 4,492
---------- ----------
Total non-current assets 219,558 248,335
========== ==========
Current assets
Trade and other receivables 2,093 3,074
Cash and cash equivalents 10,676 4,409
---------- ----------
Total current assets 12,769 7,483
---------- ----------
Total assets 232,327 255,818
========== ==========
Equity
Issued share capital 5,833 5,833
Share premium 201,085 201,085
Other reserves (176,951) (146,742)
---------- ----------
Total equity attributable to
equity shareholders of the
company 29,967 60,176
Non-controlling interest 43 147
---------- ----------
Total equity 30,010 60,323
---------- ----------
Liabilities
Non-current liabilities
Loans and borrowings 4,029 57,610
Deferred tax liabilities 4,905 2,412
Total non-current liabilities 8,934 60,022
---------- ----------
Current liabilities
Trade and other payables 6,110 7,136
Employee benefits 108 104
Loans and borrowings 187,165 128,233
---------- ----------
Total current liabilities 193,383 135,473
---------- ----------
Total liabilities 202,317 195,495
---------- ----------
Total liabilities and equity 232,327 255,818
========== ==========
Net asset value per share (euro
cent): 5.14 10.32
========== ==========
Consolidated statement of cash flows
for the year ended 31 December 2010
2010 2009
EUR'000 EUR'000
Result before tax (29,391) (105,392)
Adjustments for:
Net property valuation movement 27,373 79,320
Depreciation 35 36
Finance income (433) (306)
Finance expense 7,070 7,686
Share of result of equity accounted
investees 3,084 21,297
Exchange difference on non-property
net assets 3,129 6,599
--------- ----------
Operating result before changes
in working capital 10,867 9,240
Decrease in trade and other
payables (1,286) (796)
Decrease in trade and other
receivables 981 1,957
--------- ----------
Cash generated from operations 10,562 10,401
Interest paid (7,121) (7,686)
Income tax received/(paid) 203 (70)
--------- ----------
Net cash inflow from operating
activities 3,644 2,645
--------- ----------
Cash flows from investing activities
Acquisition of investment property (389) (1,053)
Net cash outflow on acquisition
of subsidiary (40) -
Net cash outflow from additional
investment in equity accounted
investees (2,169) (3,051)
Proceeds from disposal of investment
property 6,683 -
Interest received 433 306
--------- ----------
Net cash inflow/(outflow)from
investing activities 4,518 (3,798)
--------- ----------
Cash flows from financing activities
Repayment of borrowings (1,974) (1,483)
--------- ----------
Net cash (outflow) from financing
activities (1,974) (1,483)
--------- ----------
Net increase/(decrease) in cash
and cash equivalents 6,188 (2,636)
Cash and cash equivalents at
beginning of year 4,409 6,986
Foreign exchange gain on cash
and cash equivalents 79 59
--------- ----------
Cash and cash equivalents at
end of year 10,676 4,409
========= ==========
Notes to the preliminary results for year end 31 December
2010
1 Basis of preparation
The financial information set out in this document does not
constitute the full statutory audited financial statements for the
years ended 31 December 2010 or 2009 but is derived from same. The
full statutory financial statements are prepared in accordance with
International Financial Reporting Standards as adopted by the EU
(EU IFRS) and interpretations adopted by the International
Accounting Standards Board (IASB), on the basis of EU IFRSs in
issue that are effective for accounting periods ending on or before
the reporting date, 31 December 2010.
The statutory financial statements will be presented in euro,
rounded to the nearest thousand. They are prepared on the
historical cost basis except for investment property and derivative
financial instruments which are measured at fair value.
The accounting policies applied by the group in this preliminary
announcement are the same as those set out in our most recent
published annual report to 31 December 2009, except as otherwise
set out below. These have been applied consistently by all group
companies and to all periods presented for the purposes of the
consolidated financial statements.
New accounting standards applied during 2010
The group has applied revised IFRS 3 Business Combinations which
became effective for financial periods beginning on or after 1 July
2009. The change in accounting policy has been applied
prospectively only and has no effect on earnings per share.
For acquisitions on or after 1 January 2010, the group measures
goodwill at the acquisition date as:
-- the fair value of the consideration transferred; plus
-- the recognised amount of any non-controlling interests in the
acquiree; plus
-- if the business combination is achieved in stages, the fair
value of the existing equity interest in the acquiree; less
-- the net recognised amount (generally fair value) of the
identifiable assets acquired and liabilities assumed.
When the excess is negative, a bargain purchase gain is
recognised immediately in profit or loss.
The consideration transferred does not include amounts related
to the settlement of pre-existing relationships. Such amounts are
generally recognised in profit or loss.
Costs related to the acquisition, other than those associated
with the issue of debt or equity securities, that the group incurs
in connection with a business combination are expensed as
incurred.
Any contingent consideration payable is recognised at fair value
at the acquisition date. If the contingent consideration is
classified as equity, it is not re-measured and settlement is
accounted for within equity. Otherwise, subsequent changes to the
fair value of the contingent consideration are recognised in profit
or loss.
The group also applied IAS 27 Consolidated and Separate
Financial Statements in the year; however, this had no material
impact on the accounts during the year.
Estimates and assumptions
The preparation of financial statements in conformity with EU
IFRS's requires management to make judgements, estimates and
assumptions that may affect the application of accounting policies
and the reported amounts of assets and liabilities and income and
expenses. The estimates and associated assumptions are based on
experience and various other factors that are believed to be
reasonable under the circumstances. Actual results may differ from
these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the year in which the estimate is revised if the revision affects
only that period, or in the period of the revision and future
periods if the revision affects both current and future years.
Financing
The directors have a reasonable expectation that the group has
adequate resources to continue in operational existence for the
foreseeable future. In particular, in arriving at this view, the
board has had regard to the current financing arrangements and its
planned activities for the next 18 months. As further elaborated on
below, Balmoral currently anticipates having sufficient resources
to meet its ongoing requirements and, accordingly, the directors
consider that the going concern basis continues to be appropriate
for these financial statements.
The group's financing arrangements fall into three broad
categories. In general, equity accounted investees are financed by
separate project-specific debt. Similarly, the Dutch and Belgian
portfolios and the investment in the Drum Estate in Edinburgh are
funded on a stand-alone basis. The group's remaining property
assets are financed by a general corporate facility that is subject
to a loan-to-value covenant. The current and previous year end
balance sheets disclose relevant ratios on this facility that are
in excess of the stipulated 50%.
The loan facility on the Dutch portfolio matured on 31 December
2010 and several other of the group's loans are or will be subject
to review and/or repayment in 2011. The company is engaged in
discussions with each of the relevant banks, including the provider
of the general corporate facility, on extensions of these various
arrangements. The group currently anticipates reaching satisfactory
conclusions on these discussions and, accordingly, expects to have
sufficient resources to meet its ongoing requirements. It is likely
that the group's auditors will make reference to this matter in
their opinion on the financial statements.
Consequent on the year end loan-to-value ratio on the general
corporate facility, all of the related borrowings are required to
be shown as current liabilities in the group's balance sheet and
have been presented as such herein.
2 Operating segments
Segment information is presented in the consolidated financial
statements in respect of the group's geographical segments which
represent the principal basis by which the group manages its
business. Information regarding the result of each reportable
segment is included below. Performance is measured based on segment
results as included in the internal management reports that are
reviewed by the group chief operating decision makers which
management believe is the most relevant information when evaluating
the results of certain segments relative to other entities that
operate within the industry. There are no significant inter segment
transactions.
(a) Geographical segments
Continental
Income statement Ireland UK Europe Consolidated
for the year ended 31
December 2010 EUR'000 EUR'000 EUR'000 EUR'000
Gross rental income 5,014 4,210 5,954 15,178
Service charge income 309 144 868 1,321
Property operating
expenses (826) 808 (1,817) (1,835)
Net rental and related
income 4,497 5,162 5,005 14,664
--------- --------- ------------ -------------
Valuation movement on
investment properties (23,239) 567 (4,701) (27,373)
--------- --------- ------------ -------------
Operating result (18,742) 5,729 304 (12,709)
Share of result of equity
accounted investees (5,324) 298 1,942 (3,084)
--------- --------- ------------ -------------
Operating result before
corporate expenses,
finance expenses & income
tax (24,066) 6,027 2,246 (15,793)
========= ========= ============
Reconciliation to result
for the year
Corporate expenses (3,832)
Net finance expense (9,766)
Net income tax expense (889)
-------------
Result for year (30,280)
=============
Continental
Income statement Ireland UK Europe Consolidated
for the year ended 31
December 2009 EUR'000 EUR'000 EUR'000 EUR'000
Gross rental income 5,109 4,485 5,812 15,406
Service charge income 376 143 999 1,518
Property operating
expenses (883) (469) (2,013) (3,365)
--------- --------- ------------ -------------
Net rental and related
income 4,602 4,159 4,798 13,559
--------- --------- ------------ -------------
Valuation movement on
investment properties (61,763) (10,360) (7,197) (79,320)
--------- --------- ------------ -------------
Operating result (57,161) (6,201) (2,399) (65,761)
Share of result of equity
accounted investees (15,817) (388) (5,092) (21,297)
--------- --------- ------------ -------------
Operating result before
corporate expenses,
finance expenses & income
tax (72,978) (6,589) (7,491) (87,058)
========= ========= ============
Reconciliation to result
for the year
Corporate expenses (4,355)
Net finance expense (13,979)
Net income tax credit 15,533
-------------
Result for year (89,859)
=============
Balance sheet
for the year ended 31 December 2010
Continental
Segment assets Ireland UK Europe Consolidated
EUR'000 EUR'000 EUR'000 EUR'000
Investment property 68,850 68,469 71,440 208,759
Investment in equity
accounted investees 2,048 421 2,453 4,922
Trade and other receivables 471 246 1,376 2,093
-------- -------- ------------ -------------
71,369 69,136 75,269 215,774
======== ======== ============
Reconciliation to total assets as reported in the group balance
sheet
Deferred tax asset 5,843
Property, plant and
equipment 34
Cash and cash equivalents 10,676
-------------
Total assets 232,327
=============
Continental
Segment liabilities Ireland UK Europe Consolidated
EUR'000 EUR'000 EUR'000 EUR'000
Loans and borrowings 30,734 102,896 57,564 191,194
Trade and other payables 2,013 1,890 2,207 6,110
32,747 104,786 59,771 197,304
======== ======== ============
Reconciliation to total liabilities as reported in the group
balance sheet
Deferred tax liabilities 4,905
Employee benefits 108
-------------
Total liabilities 202,317
=============
Balance sheet
for the year ended 31 December 2009
Continental
Segment assets Ireland UK Europe Consolidated
EUR'000 EUR'000 EUR'000 EUR'000
Investment property 94,885 66,192 75,990 237,067
Investment in equity
accounted investees 6,356 351 - 6,707
Trade and other receivables 943 783 1,348 3,074
-------- -------- ------------ -------------
102,184 67,326 77,338 246,848
======== ======== ============
Reconciliation to total assets as reported in the group balance
sheet
Deferred tax asset 4,492
Property, plant and
equipment 69
Cash and cash equivalents 4,409
-------------
Total assets 255,818
=============
Continental
Segment liabilities Ireland UK Europe Consolidated
EUR'000 EUR'000 EUR'000 EUR'000
Loans and borrowings 30,734 95,974 59,135 185,843
Trades and other payables 2,595 1,536 3,005 7,136
33,329 97,510 62,140 192,979
======== ======== ============
Reconciliation to total liabilities as reported in the group
balance sheet
Deferred tax liabilities 2,412
Employee benefits 104
-------------
Total liabilities 195,495
=============
(b) Categories of property assets
The group manages its business principally on the basis of
geographical segments. Supplementary information based on the
following categorisations has also been provided as this is also
used by the chief operating decision makers:
Continental
2010 Ireland UK Europe Total
EUR'000 EUR'000 EUR'000 EUR'000
Industrial 50,350 23,419 - 73,769
Office 6,400 12,683 52,250 71,333
Mixed Use 10,100 19,626 19,190 48,916
Residential 2,000 12,741 - 14,741
-------- -------- ------------ --------
Total 68,850 68,469 71,440 208,759
======== ======== ============ ========
Continental
2009 Ireland UK Europe Total
EUR'000 EUR'000 EUR'000 EUR'000
Industrial 70,835 23,482 - 94,317
Office 6,900 16,514 55,410 78,824
Mixed Use 14,000 13,827 20,580 48,407
Residential 3,150 12,369 - 15,519
-------- -------- ------------ --------
Total 94,885 66,192 75,990 237,067
======== ======== ============ ========
3 Net finance expense
2010 2009
EUR'000 EUR'000
Interest receivable on bank deposits 126 51
Interest receivable on loans to equity accounted
investees 201 255
Foreign currency translation gain on cash
and cash equivalents 264 -
Other finance income 106 -
Finance income 697 306
--------- ---------
Foreign currency translation loss on borrowings (3,393) (6,417)
Foreign currency loss on cash and cash equivalents - (182)
Interest payable on borrowings (6,995) (7,686)
Other finance expense (75) -
--------- ---------
Finance expense (10,463) (14,285)
--------- ---------
Net finance expense (9,766) (13,979)
========= =========
Foreign currency amounts accounted for through 2010 2009
the Statement of Comprehensive Income EUR'000 EUR'000
Foreign currency translation (loss)/gain
on equity accounted investees (33) 14
========= =========
4 Income tax expense
2010 2009
EUR'000 EUR'000
Current tax (credit)/expense
Corporation tax on result for the year:
Current year
- Overseas 95 -
Adjustment in respect of prior year
- Ireland (50) -
- Overseas (298) 70
--------- ----------
Total current tax (credit)/expense (253) 70
--------- ----------
Deferred tax expense/(credit)
Origination and reversal of temporary differences 128 (15,603)
Adjustment in respect of prior year 1,014 -
Total deferred tax (credit)/expense 1,142 (15,603)
--------- ----------
Total income tax expense/(credit) 889 (15,533)
========= ==========
Reconciliation of effective tax rate 2010 2009
EUR'000 EUR'000
Result before tax (29,391) (105,392)
Less share of result of equity accounted
investees 3,084 21,297
--------- ----------
(26,307) (84,095)
Income tax using domestic corporation tax
rate (25%) (6,577) (21,024)
Difference between expenses and deductions
for taxation purposes and amounts charged
in the financial statements 369 3,469
Unrecognised deferred tax assets 6,540 590
Difference in tax rates 279 1,469
Additional tax allowance (397) (250)
Other items 9 213
Adjustment in respect of prior year 666 -
--------- ----------
889 (15,533)
========= ==========
5 Investment property
2010 2009
EUR'000 EUR'000
Balance at beginning of the year 237,067 315,336
Additions in the year 5,748 1,051
Disposals of property in the year (6,683) -
Fair value movement (29,868) (84,822)
Foreign currency movement 2,495 5,502
--------- ---------
Balance at end of the year 208,759 237,067
========= =========
The carrying amount of investment property is the fair value of
the property which, in general, is determined by registered
independent appraisers having appropriate recognised professional
qualifications and recent experience in the locations and
categories of the property being valued. Fair values were
determined having regard to recent market transactions and market
rents for similar properties in the same location, where such
information was available.
Attention is drawn to the risks associated with the valuation of
investment properties, particularly in the current economic
climate. Investments in properties are relatively illiquid, which
can affect the group's ability to realise their value in cash in
the short term. The year-end property valuations have been arrived
at in a period of significant market uncertainty. The continuing
difficulties being experienced in the world's financial markets
have resulted in reduced numbers of property transactions in the
markets in which the group operates, with virtually no activity in
some areas. This lack of comparable evidence has decreased the
degree of certainty in valuations compared to those arrived at in
more stable conditions with a normal level of market evidence.
Nonetheless, the fair values of the group's investment properties
have been determined on the basis of advice from independent
professional appraisers as more fully set out below.
The principal property valuation advisors to the group are as
follows:
2010 2009
EUR'000 EUR'000
Lisney (Republic of Ireland) 68,850 94,885
BTW Shiells, Lambert Smith Hampton, Brown & Lee,
Colliers International (UK) 68,469 66,192
Jones Lang La Salle, Delta Estates (Continental
Europe) 71,440 75,990
-------- --------
208,759 237,067
======== ========
6 Loans and borrowings
This note provides information about the contractual terms of
the group's interest-bearing loans and borrowings, all of which are
held at amortised cost.
2010 2009
EUR'000 EUR'000
Non-current liabilities
Secured bank loans 3,563 57,215
Other payables 466 395
-------- --------
4,029 57,610
======== ========
Current liabilities
Unsecured bank loans 129,757 126,708
Secured bank loans 57,408 1,525
-------- --------
187,165 128,233
======== ========
Terms and conditions of outstanding loans were as follows:
31
December 31 December
2010 2009
In Interest
thousands rate Year of Carrying Carrying
of euro Currency arrangement maturity amount amount
EUR'000 EUR'000
Unsecured
bank loan Euro Variable 2011-2012 30,734 30,734
Unsecured
bank loan GBP Variable 2011-2013 99,023 95,974
Secured
bank loan Euro Variable 2011 11,198 11,430
Secured
bank loan Euro Fixed 2011 17,290 17,860
Secured
bank loan Euro Fixed 2011 28,610 29,450
Secured
bank loan GBP Variable 2023 3,873 -
----------- ------------
190,728 185,448
----------- ------------
Terms and debt repayment schedule
2010 2009
EUR'000 EUR'000
Repayable by instalments:
Repayable within 1 year 57,408 1,525
Repayable within 2 years 310 57,215
Repayable within 2 to 5 years 929 -
Repayable after 5 years 2,324 -
Repayable other than by instalments:
Repayable within 1 year 129,757 126,708
Total 190,728 185,448
-------- --------
Variable rate bank loans incur interest based on interbank
market rates plus an agreed margin. Fixed rate bank loans incur
interest at rates between 5.4% and 5.5%.
(a) Bank loans of EUR129,757,000 (2009: EUR126,708,000) are
guaranteed by certain nominated subsidiaries and are subject to a
loan to value covenant.
The year end balance sheet disclosed that the relevant ratio on
this facility was in excess of the stipulated 50% and, as a result,
all of the loans are shown as being repayable within one year. The
company is engaged in discussions with the bank in question on an
extension of this arrangement. These loans, denominated in both
euro and pounds sterling, are repayable in full five years from the
date of drawdown. On foot of this provision, the balances
outstanding at 31 December 2010 are, in any event, due to mature at
various dates from 5 June 2011 to 12 June 2013. Interest is payable
at the relevant interbank market rate plus a margin.
(b) A secured bank loan of EUR11,197,500 (2009: EUR11,430,000)
drawn down by a subsidiary is secured by certain investment
properties in Belgium. The loan is denominated in euro and is
repayable in quarterly capital repayments, with the balance due in
October 2011. Interest is payable at the 3 month Euribor rate plus
a margin.
(c) Secured bank loans of EUR45,900,000 (2009: EUR47,310,000)
drawn down by a subsidiary are secured by certain investment
properties in the Netherlands and by a guarantee from the company
(see note 9 for further details). The loans matured at 31 December
2010 and negotiations are ongoing with the relevant bank for the
extension of these facilities.
(d) A secured loan drawn down by a subsidiary of EUR3,873,000 is
secured by certain lands in Scotland and by a guarantee from the
company (see note 9 for further details). The loan is denominated
in sterling and is repayable in quarterly capital repayments over
the next twelve years. Interest is payable at the relevant
interbank market rate plus a margin.
7 Result per share
Basic result per share
The calculation of basic result per share for the year ended 31
December 2010 is based on the result attributable to equity
shareholders in the year and the weighted average number of equity
shares outstanding during the year calculated as follows:
2010 2009
EUR'000 EUR'000
Result attributable to equity shareholders (30,176) (89,780)
============ ===========
Weighted average number of ordinary shares
In thousands of shares
2010 2009
At beginning of year 583,265 583,265
Weighted number of ordinary shares outstanding
during year 583,265 583,265
------------ -----------
Basic result per share (euro cent) (5.17) (15.39)
------------ -----------
Diluted result per share
The calculations of diluted result per share for the years ended
31 December 2010 and 31 December 2009 were based on the results
attributable to ordinary shareholders and the weighted average
number of ordinary shares outstanding during the years ended 31
December 2010 and 31 December 2009 as calculated for basic result
per share above, as there were no potentially dilutive instruments
in issue.
8 Net asset value per share
The calculations of net asset value per share at 31 December
2010 and 31 December 2009 were based upon the total equity
attributable to the shareholders of the company at 31 December 2010
and
31 December 2009 and the number of ordinary shares outstanding
at 31 December 2010 and
31 December 2009 as follows:
2010 2009
EUR'000 EUR'000
Total equity attributable to shareholders
of company 29,967 60,176
============ ===========
In thousands of shares
2010 2009
Total number of ordinary shares outstanding
at year end 583,265 583,265
============ ===========
Net asset value per share (euro cent) 5.14 10.32
------------ -----------
9 Contingencies and guarantees
The main group contingencies and guarantees are as follows:
(a) The company has provided guarantees totalling EUR5.4m in
respect of the capital and interest on the bank borrowings of the
joint venture companies involved in the development of property at
Navan, Ireland.
(b) The company has provided a guarantee of EUR1.5 million in
respect of the bank borrowings of Balmoral International Land Vida
BV in relation to the financing of a building in Amsterdam.
(c) South East Edinburgh Development Company ("SEEDCo") acquired
316 acres of agricultural land south of Edinburgh during 2007. In
2010, the group acquired the remaining 50% of this company that it
did not previously own. Additional consideration may become payable
to the vendor, calculated as 50% of the open market value, net of
all costs, of the land when planning consents have been received.
The company has provided a guarantee in respect of the capital and
interest on the bank borrowings of SEEDCo.
10 Related parties
As in prior years, the group leases a number of its properties
to a related party and certain emoluments payments are made to the
company's directors via related party transfers. Full details will
be provided in our annual report, however, the transactions are
along the lines of those disclosed in our most recent annual
report.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DKPDDFBKDKBB
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