TIDMFPO
RNS Number : 3750U
First Property Group PLC
23 November 2023
Date: 23 November 2023
On behalf First Property Group plc ("First Property" or
of: the "Group" or the "Company")
Embargoed: 0700hrs
First Property Group plc
Interim results for the six months to 30 September 2023
First Property Group plc (AIM: FPO), the award-winning property
fund manager and investor with operations in the United Kingdom and
Central Europe, today announces its interim results for the six
months ended 30 September 2023.
Highlights:
-- Statutory loss before tax: GBP0.65 million (30 September 2022
profit before tax: GBP2.39 million)
-- Cash: GBP6.71 million (31 March 2023: GBP7.65 million)
-- Net debt: GBP22.22 million (31 March 2023: GBP22.01 million)
-- Third party Assets Under Management ("AUM"): GBP304 million (31 March 2023: GBP400 million)
-- Total AUM: GBP358 million (31 March 2023: GBP454 million)
-- Weighted average unexpired fund management contract term at
30 September 2023: 2 years, 1 month (31 March 2023: 2 years, 9
months)
Financial summary:
Unaudited Unaudited Percentage Audited
six months six months change year to
to to 30 Sep 31 Mar
30 Sep 2023 2022 2023
Income Statement:
Statutory (loss)/ profit (GBP0.65m) GBP2.39m -127.2% GBP2.49m
before tax
Diluted (loss)/ profit
earnings per share (0.99p) 1.83p -154.1% 1.70p
Total dividend per share 0.00p 0.25p -100% 0.50p
Average EUR/ GBP rate 1.1590 1.1698 - 1.1567
Unaudited Audited Percentage Unaudited
change
six months year to six months
to 30 Sep to 30 Sep
2023 2022
31 Mar 2023 (restated)
Balance Sheet at period
end:
Investment properties GBP47.13m GBP47.01m +0.3% GBP42.56m
at book value
Investment properties GBP53.28m GBP53.97m -1.3% GBP48.67m
at market value
Associates and investments GBP20.03m GBP22.13m -9.5% GBP25.33m
at book value
Associates and investments GBP22.30m GBP25.27m -11.8% GBP29.83m
at market value
Cash balances GBP6.71m GBP7.65m -12.3% GBP5.98m
Cash per share 6.05p 6.90p -12.3% 5.39p
Gross debt* GBP28.93m GBP29.66m -2.5% GBP29.53m
Net debt* GBP22.22m GBP22.01m +1.0% GBP23.55m
Gearing ratio at book
value** 41.0% 40.6% - 40.5%
Gearing ratio at market
value*** 37.0% 36.1% - 35.7%
Net assets at book value GBP41.65m GBP43.44m -4.1% GBP43.47m
Net assets at market GBP49.22m GBP52.54m -6.3% GBP53.25m
value
Adjusted net assets
per share (EPRA basis) 43.56p 46.50p -6.3% 47.12p
Period end EUR/ GBP
rate 1.1528 1.1381 - 1.1395
*Debt comprises financial liabilities and other financial
liabilities including those of 5(th) Property Trading Limited
("5PT").
** Gearing ratio = Gross debt divided by Gross assets.
*** Attributable to the owners of the parent, excludes
non-controlling interest.
Commenting on the results, Ben Habib, Chief Executive of First
Property, said:
"Markets have been as challenging over the last year as I have
ever known them. The rapid increase in interest rates, with a
commensurate collapse in demand for commercial property, both
occupationally and for investment, had created a perfect storm. For
fifteen years interest rates had been near zero and global markets
supported by borrowings in dollars with investment in developing
countries and more "risky" assets - the so called carry trade.
"With the Federal Reserve aggressively increasing interest
rates, that carry trade has reversed equally aggressively with
capital flooding back to the United States.
"So, whilst it is disappointing to report a loss, this was
created by a mark down in property values and not as a result of a
deterioration in trading. The Group is robust.
"Inflation is now reducing, and interest rates are likely to be
close to their peak. They have already been reduced in Poland.
"Markets are steadying and we are seeing an uptick in investment
demand, though it is too early to be certain.
"We also have occupational demand for the vacant space in the
office blocks we own in Warsaw and Gdynia, with particular demand
for the former. As we lease up this space, we will start again to
generate good levels of cash, as we have historically done.
"In the meantime, our cash balance is good, with over GBP6
million on the balance sheet, giving us the firepower we need to
fitout the space as it is leased.
"We are also seeing some interesting lending propositions for
our new debt division. We have yet to make a loan but our market
knowhow and the number of deals we are considering has considerably
increased.
"I am once again beginning to be excited about the future."
Investor presentation:
A briefing for analysts and investors will be held at 11.00hrs
today via Investor Meet Company. To participate it is necessary to
register at
https://www.investormeetcompany.com/first-property-group-plc/register-investor
and select to meet the Company. Those who have already registered
and selected to meet the Company will be automatically invited. A
copy of the accompanying investor presentation and a recording of
the call will be posted on the Group's website.
For further information please contact:
First Property Group plc Tel: +44 (20) 7340
0270
Ben Habib (Chief Executive Officer) www.fprop.com
Laura James (Group Finance Director) investor.relations@fprop.com
Jeremy Barkes (Director, Business
Development)
Jill Aubrey (Director, Compliance
& Company Secretary)
Allenby Capital (NOMAD & Broker) Tel: + 44 (0) 20 3328
5656
Nick Naylor / Daniel Dearden-Williams
(Corporate Finance)
Amrit Nahal / Tony Quirke (Sales and
Corporate Broking)
Notes to Investors and Editors :
First Property Group plc is an award-winning property fund
manager and investor with operations in the United Kingdom and
Central Europe. Its focus is on higher yielding commercial property
with sustainable cash flows. The Company is flexible and takes an
active approach to asset management. 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. FPAM
currently manages twelve funds which are invested across the United
Kingdom, Poland and Romania.
-- Group Properties - principal investments by the Group, to
earn a return on its own capital, usually in partnership with third
parties. Investments include six directly held properties in Poland
and one in Romania, and non-controlling interests in nine of the
twelve funds managed by FPAM.
Quoted on AIM, First Property has offices in London and Warsaw.
Around one third of the shares in First Property are owned by
directors, management and their families. Further information about
the Group and its properties can be found at: www.fprop.com .
CHIEF EXECUTIVE'S STATEMENT
Performance:
I am pleased to report interim results for the six months ended
30 September 2023.
Revenue earned by the Group was GBP3.97 million (30 September
2022: GBP4.19 million) yielding a loss before tax of GBP0.65
million (30 September 2022 profit before tax: GBP2.39 million). The
loss was caused by a reduction of GBP0.82 million in the fair value
of the Group's investment in one of its associates, Fprop
Opportunities plc ("FOP"). Otherwise, the Group has been trading in
line with market expectations.
The rapid increase in interest rates and consequent flight of
capital from our markets has materially impacted property values.
The Group has been shielded from much of this by its accounting
policy of holding properties at the lower of cost or value.
However, the cost of the Group's share in FOP, which is invested in
five commercial properties in Poland, was rebased in October 2018
when the Group's share in it reduced below 50%, resulting in it
being deconsolidated from the accounts of the Group and recognised
as an associate at the then prevailing property values. In the six
months to 30 September 2023 the five properties owned by FOP
decreased in value by GBP2.2 million, of which the Group's share
amounted to GBP0.82 million.
Diluted loss per share amounted to 0.99 pence (30 September 2022
earnings per share: 1.83 pence).
The Group ended the period with net assets calculated under the
cost basis of accounting of GBP41.65 million (31 March 2023:
GBP43.44 million), equating to 37.56 pence per share (31 March
2023: 39.18 pence per share). The net assets of the Group with
property values adjusted to their market value less any deferred
tax liabilities (EPRA basis) was GBP49.22 million, or 43.56 pence
per share (31 March 2023: GBP52.54 million, or 46.50 pence per
share). The market values of Group properties are independently
assessed once a year, on 31 March, except for the five properties
held by FOP which are also assessed as at 30 September.
Gross debt at the period end amounted to GBP28.93 million (31
March 2023: GBP29.66 million), which was secured against six
commercial properties in Poland and one in Romania. Of this,
GBP16.95 million was non-interest bearing and represents deferred
consideration payable for the purchase of two properties in
Poland.
The Group's gearing ratio, calculated with its seven directly
owned properties at book value, was 40.99% (31 March 2023: 40.57%).
Using market values for these properties the gearing ratio was
37.02% (31 March 2023: 36.08%).
The Group's seven directly owned properties are held in separate
non-recourse special purpose vehicles without any cross
collateralisation of the debt or Group guarantees.
Group cash balances at the period end stood at GBP6.71 million
(31 March 2023: GBP7.65 million), equivalent to 6.05 pence per
share (31 March 2023: 6.90 pence per share).
Dividend:
The Directors have resolved not to pay a dividend (30 September
2022: 0.25 pence per share) until the Group returns to
profitability. Our cash balances are good and it is important we
preserve this until we emerge from these turbulent times.
REVIEW OF OPERATIONS
PROPERTY FUND MANAGEMENT ("First Property Asset Management Ltd"
or "FPAM")
Third party assets under management at the period end decreased
by 24% to GBP304.6 million (31 March 2023: GBP400.4 million). The
decrease was attributable mainly to the decrease in value of
properties held in third party managed funds of GBP87.1
million.
The large decrease in value of third-party funds was mainly
related to the write down in value of properties held by Fprop
Offices LP ("Fprop Offices") and Fprop Phoenix Ltd ("Fprop
Phoenix"), which experienced write downs of GBP28.8 million and
GBP47.0 million, respectively. We do not earn a fixed fee from
Fprop Offices, and the reduction in value of the fund does not
reduce our recurring fee income. Fprop Offices is due to be wound
up next year.
63.3% of third-party assets under management were located in the
UK, 33.9% in Poland and 2.8% in Romania.
Revenue earned by this division decreased to GBP1.26 million (30
September 2022: GBP1.66 million), resulting in profit before
unallocated central overheads and tax decreasing to GBP0.16 million
(30 September 2022: GBP0.52 million).
At the period end fund management fee income, excluding
performance fees, was being earned at an annualised rate of GBP2.06
million (31 March 2023: GBP2.55 million).
FPAM's weighted average unexpired fund management contract term
at the period-end was 2 years, 1 month (31 March 2023: 2 years, 9
months).
The reconciliation of movement in third party funds under
management during the period is shown below:
Funds managed for third parties
(including funds in which the
Group is a minority shareholder)
---------------------- ----------------------------------------
UK CEE Total No. of
GBPm. GBPm. GBPm. prop's
---------------------- --------- -------- -------- ---------
As at 1 Apr 2023 241.4 159.0 400.4 53
---------------------- --------- -------- -------- ---------
Property purchases - - - -
Property sales (6.7) - (6.7) (2)
Capital expenditure - - - -
Property revaluation (41.9) (45.2) (87.1) -
FX revaluation - (2.0) (2.0) -
As at 30 Sep 2023 192.8 111.8 304.6 51
---------------------- --------- -------- -------- ---------
An overview of the value and maturity of each of the funds
managed by FPAM is set out below:
Fund Country Fund expiry Assets No of % of total Assets
of investment under management properties third-party under management
at market assets under at market
value at management value at
30 Sep 31 Mar
2023 2023
------------ ---------------- ------------- ------------------ ------------ -------------- ------------------
GBPm. % GBPm.
------------------------------ ------------- ------------------ ------------ -------------- ------------------
SAM & DHOW UK Rolling * * * *
OFFICES UK Jun 2024 53.0 4 17.4 84.9
SIPS UK Jan 2025 96.8 21 31.8 104.7
FOP Poland Oct 2025 61.6 5 20.2 64.5
FGC Poland Mar 2026 21.7 1 7.1 22.0
UKPPP UK Jan 2027 20.5 8 6.7 28.1
SPEC OPPS UK Jan 2027 14.4 4 4.7 14.9
FKR Poland Mar 2027 16.5 1 5.4 16.8
FCL Romania Jun 2028 8.6 1 2.8 8.7
FPL Poland Jun 2028 3.4 4 1.2 47.0
FUL UK Indefinite 8.1 2 2.7 8.8
------------ ---------------- ------------- ------------------ ------------ -------------- ------------------
Total Third Party
AUM 304.6 51 100.0 400.4
------------------------------ ------------- ------------------ ------------ -------------- ------------------
* Not subject to recent revaluation.
The sub sector weightings of investments in FPAM funds is set
out in the table below:
UK Poland Romania Total % of Total
-------------------- ------ ------- -------- ------ -----------
GBPm. GBPm. GBPm. GBPm.
-------------------- ------ ------- -------- ------ -----------
Offices 109.3 41.5 8.6 159.4 52.3
Retail warehousing 56.9 - - 56.9 18.7
Shopping centres - 49.7 - 49.7 16.3
Supermarkets 26.6 12.0 - 38.6 12.7
Total 192.8 103.2 8.6 304.6 100.0
-------------------- ------ ------- -------- ------ -----------
% of Total 63.3 33.9 2.8 100.0
-------------------- ------ ------- -------- ------ -----------
GROUP PROPERTIES DIVISION
At the period end the Group Properties division comprised seven
directly owned commercial properties in Poland and Romania valued
at GBP53.28 million (31 March 2023: GBP53.97 million), and
interests in nine of the twelve funds managed by FPAM (classified
as Associates and Investments) valued at GBP22.30 million (31 March
2023: GBP25.27 million).
The contribution to Group profit before tax and unallocated
central overheads from this division was GBP0.09 million (30
September 2022: GBP2.40 million), of which the seven directly owned
properties contributed GBP0.27 million (30 September 2022: GBP0.98
million) and the Associates and Investments contributed a loss of
GBP0.18 million (30 September 2022 profit: GBP1.42 million) .
The reduced contribution from the Associates and Investments was
mainly due to the write down by GBP0.82 million in value of the
Group's share in FOP. In addition, distributions in respect of the
Group's 11.1% share in Fprop UK Special Opportunities LP ("SPEC
OPPS") of GBP0.08 million were less than the contribution in the
same period last year of GBP1.20 million. Last year's higher
contribution was driven by property sales.
Nearly one third of the vacant office space in the Group's
directly held office properties in Gdynia and Warsaw (Blue Tower),
which it acquired in 2021 and 2022 respectively and which totalled
some 20,000 square metres, has been leased. Net operating income
should improve by some EUR2 million per annum once this vacant
space is fully let. Tenant demand remains steady in both
cities.
1. Directly owned properties (all accounted for under the cost model):
The book value of the Group's seven directly owned properties
was GBP47.13 million. Their market value, as at 30 September 2023,
was GBP53.28 million.
Country Sector Property/ No. of Book Market *Contribution *Contribution
fund name properties value value to Group to Group
as at as at as at profit before profit before
30 Sep 30 Sep 30 Sep tax - tax -
2023 2023 2023 period period
to to
30 Sep 30 Sep
2023 2022
--------- -------------- ------------ ------------ -------- -------- --------------- ---------------
GBPm. GBPm. GBPm. GBPm.
Poland Offices Gdynia 1 14.20 14.32 (0.14) (0.21)
Poland, Offices Blue Tower 1 20.71 23.89 0.46 0.64
Poland Supermarkets Praga 1 1.96 2.91 0.05 0.20
Romania Office Dr Felix 1 2.32 3.82 0.05 0.02
Poland Multi-let 5PT 3 7.94 8.34 0.18 **
------------------------- ------------ ------------ -------- -------- --------------- ---------------
Total* 7 47.13 53.28 0.60 0.65
------------------------- ------------ ------------ -------- -------- --------------- ---------------
Profit on the sale of investment
properties - 1.06
Other overhead costs allocated
to the direct property division (0.33) (0.73)
Total contributions to PBT from
Group Properties 0.27 0.98
----------------------------------------------------- -------- -------- --------------- ---------------
* Prior to the deduction of unallocated central overhead
expenses.
**5PT, a fund in which the Group gained a controlling interest
in financial year ended 31 March 2023 (previously recognised as an
associate).
The debt secured against these seven properties amounted to
GBP28.93 million (31 March 2023: GBP29.66 million), including
deferred consideration of GBP16.95 million (31 March 2023: GBP17.02
million) which is non-interest bearing.
Interest costs on the GBP11.99 million of interest-bearing debt
amounted to GBP0.38 million in the period (30 September 2022:
GBP0.19 million) . This equates to an average borrowing cost of
2.6% per annum when expressed as a percentage of total Group debt,
or 6.3% if the non-interest-bearing element is excluded. A one
percentage point increase in interest rates would impact the cost
of the floating rate loans and would increase the Group's annual
interest bill by some GBP120,000 per annum (31 March 2023:
GBP127,000).
All five bank loans are held in separate non-recourse special
purpose vehicles and are not guaranteed by the Group.
Directly owned Properties 30 Sep 2023 31 Mar 2023
Book value GBP47.13m GBP47.01m
Market value GBP53.28m GBP53.97m
Debt (all non-recourse to the GBP28.93m GBP29.66m
Group)
LTV at book value % 61.38% 63.09%
LTV at market value % 54.30% 54.96%
Average borrowing cost (including
non-interest-bearing loans) 2.6% 1.8%
----------------------------------- ------------ ------------
The Weighted Average Unexpired Lease Term (WAULT) of the seven
properties as at 30 September 2023 was 4 years, 3 months (31 March
2023: 3 years, 6 months).
In July the Group acquired for GBP0.21 million the minority
interest (being 23%) in E and S Estates Ltd ("E and S"), a fund
managed by the Group, resulting in it owning 100% of the shares in
issue. E and S owns a supermarket in Praga, a suburb of Warsaw,
valued at EUR3.36 million. It contributed some GBP50,000 in net
profit in the six months just ended, a return on net equity of
around 7% on an annualised basis.
Associates and Investments ("A&I's")
These comprise non-controlling interests in nine of the twelve
funds managed by FPAM, of which five are accounted for as
"associates" under the cost model and four are accounted for as
"investments in funds" and held at fair value. It is the accounting
policy of the Group to carry its interests in associates at the
lower of cost or market value.
The contribution from this segment amounted to a loss before tax
and unallocated central overheads of GBP0.18 million (30 September
2022: profit GBP1.42 million), mainly due to the write down by
GBP0.82 million of the Group's 45.71% share in FOP. At their new
value of GBP61.5 million, the properties held by FOP yield income
of some 8.5% per annum, they are 97% leased by net lettable area
and the vast majority of rent payable is subject to annual
increases linked to inflation.
The book value of the five associates was GBP17.06 million (31
March 2023: GBP17.59 million). Their market value was GBP19.33
million (31 March 2023: GBP20.73 million).
The value of the four investments in funds reduced to GBP2.97
million (31 March 2023: GBP4.54 million). The reduction was mainly
due to the decrease in value by GBP1.0 million of the Group's
co-investment in Fprop Offices, an explanation for which is in the
section entitled "Fund Management Division".
An overview of the Associates and Investments is set out in the
table below:
Fund Country % owned Book value Current Group's Group's
of investment by of First market share share
First Property's value of of post-tax of post-tax
Property share in holdings profits profits
Group fund earned by earned by
fund fund
30 Sep 30 Sep
2023 2022
---------------- ---------------- ---------- ------------ ---------- ------------- --------------
% GBP'000 GBP'000 GBP'000 GBP'000
---------------- ---------------- ---------- ------------ ---------- ------------- --------------
a) Associates
5PT Poland 47.20 * * * 59
FOP Poland 45.71 12,305 12,305 442 347
FGC Poland 29.09 2,918 3,136 92 119
FKR Poland 18.07 1,181 1,253 27 (2)
FPL Poland 23.38 - 1,730 (60) (435)
FCL Romania 21.17 652 901 16 29
---------------- ---------------- ---------- ------------ ---------- ------------- --------------
Sub Total 17,056 19,325 517 117
b) Investments
UK PPP UK 0.94 196 196 14 23
SPEC OPPS UK 11.06 2,142 2,142 82 1,196
OFFICES UK 1.64 461 461 18 74
FUL UK 2.50 174 174 - 9
---------------- ---------------- ---------- ------------ ---------- ------------- --------------
Sub Total 2,973 2,973 114 1,302
---------------------------------- ---------- ------------ ---------- ------------- --------------
Total 20,029 22,298 631 1,419
---------------------------------- ---------- ------------ ---------- ------------- --------------
*Consolidated into the Group
New Loan Division (secured lending against commercial
property):
Since its establishment in June 2023, this division has
originated over GBP600 million in enquiries for new senior loans.
It has yet to complete its first loan but we are hopeful of doing
so soon.
The division is offering senior loans at a relatively high loan
to value of 65% without obliging the borrower to amortise the debt
during its term. This enables the properties against which such
loans are advanced to support relatively high interest rates of 9%
to 10% per annum.
As previously reported, no new employees will, initially, be
required to be employed to roll out this product and the Group does
not intend to use its own cash to make such loans. It may, however,
invest alongside third parties in any fund structures set up to
make such loans.
Commercial Property Market Outlook
Poland:
GDP growth contracted by 0.8% per annum in the first half of
2023, resulting in forecasters downgrading their full year GDP
growth estimates to 0.2% per annum, the lowest it has been in our
entire time investing in that country. GDP growth is expected to
rebound in 2024, to 2.8% per annum (previous forecasts were at 2.2%
per annum).
Unemployment was at a historic low of 5.0% in August, which, in
combination with strong nominal wage increases, is expected to
drive economic activity in 2024.
The National Bank of Poland's key policy interest rate was cut
in September by 75bp and in October by 25bp and now stands at 5.75%
per annum. Inflation has fallen from some 17% year on year to
around 4%.
Investment demand for commercial property remains weak but
occupational demand remains steady. The development of new property
is at a cyclical low.
Rental values in Poland are contractually mostly linked to
inflation, which offers some protection from inflation as long as
the economy remains buoyant, and tenants can afford to pay their
contractual increases.
United Kingdom:
The Bank of England held interest rates at 5.25% per annum in
September and again in October, unchanged for the first time in 15
meetings of the Monetary Policy Committee ("MPC"). The Consumer
Price Index ("CPI") increased by 4.7% on an annualised basis in
October, a rate which is less than half of its peak of 11.1% in
October 2022, but still above the 2% target of the Bank of England.
Economic growth is close to nil.
The commercial property investment market remains generally
weak, in particular for offices and shopping centres. The occupier
market is also generally weak, including for industrial property,
where strong demand over the last several years has stalled.
Current Trading and Prospects
Markets have been as challenging over the last year as I have
ever known them. The rapid increase in interest rates, with a
commensurate collapse in demand for commercial property, both
occupationally and for investment, had created a perfect storm. For
fifteen years interest rates had been near zero and global markets
supported by borrowings in dollars with investment in developing
countries and more "risky" assets - the so called carry trade.
With the Federal Reserve aggressively increasing interest rates,
that carry trade has reversed equally aggressively with capital
flooding back to the United States.
So, whilst it is disappointing to report a loss, this was
created by a mark down in property values and not as a result of a
deterioration in trading. The Group is robust.
Inflation is now reducing, and interest rates are likely to be
close to their peak. They have already been reduced in Poland.
Markets are steadying and we are seeing an uptick in investment
demand, though it is too early to be certain.
We also have occupational demand for the vacant space in the
office blocks we own in Warsaw and Gdynia, with particular demand
for the former. As we lease up this space, we will start again to
generate good levels of cash, as we have always historically
done.
In the meantime, our cash balance is good, with over GBP6
million on the balance sheet, giving us the firepower we need to
fitout the space as it is leased.
We are also seeing some interesting lending propositions for our
new debt division. We have yet to make a loan but our market
knowhow and the number of deals we are considering has considerably
increased.
I am once again beginning to be excited about the future.
Ben Habib
Chief Executive
CONSOLIDATED INCOME STATEMENT
for the six months to 30 September 2023
Notes Six months Six months Year to
to 30 Sep to
2023
(unaudited) 30 Sep 2022 31 Mar 2023
(unaudited) (audited)
---------------------------------- ------ -------------- ------------- -------------
GBP'000 GBP'000 GBP'000
Revenue 3,966 4,188 7,249
Cost of sales (1,763) (1,697) (2,257)
---------------------------------- ------ -------------- ------------- -------------
Gross profit 2,203 2,491 4,992
Profit on sale of investment
properties - 1,061 1,779
Operating expenses (2,386) (2,466) (4,767)
---------------------------------- ------ -------------- ------------- -------------
Operating (loss)/profit (183) 1,086 2,004
---------------------------------- ------ -------------- ------------- -------------
Share of results in associates 8a 517 117 273
Share of associates' revaluation
(loss)/gain 8a (816) - (901)
Investment income 114 1,302 1,497
Interest income 3 95 75 145
Interest expense 3 (379) (188) (530)
---------------------------------- ------ -------------- ------------- -------------
(Loss)/profit before tax (652) 2,392 2,488
Tax charge 4 (257) (297) (449)
(Loss)/profit for the period (909) 2,095 2,039
Attributable to:
Owners of the parent (1,122) 2,065 1,919
Non-controlling interests 213 30 120
---------------------------------- ------ -------------- ------------- -------------
(909) 2,095 2,039
---------------------------------- ------ -------------- ------------- -------------
(Loss)/Earnings per share
Basic 5 (1.01p) 1.86p 1.73p
Diluted 5 (0.99p) 1.83p 1.70p
---------------------------------- ------ -------------- ------------- -------------
All operations are continuing.
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
for the six months to 30 September 2023
Notes Six months Six months Year to
to 30 Sep to 31 Mar
2023 30 Sep 2023
2022
(unaudited) (unaudited) (audited)
--------------------------------------- ------ ------------ ------------ ----------
GBP'000 GBP'000 GBP'000
--------------------------------------- ------ ------------ ------------ ----------
(Loss)/ profit for the period (909) 2,095 2,039
--------------------------------------- ------ ------------ ------------ ----------
Other comprehensive income
--------------------------------------- ------ ------------ ------------ ----------
Items that may subsequently
be reclassified to profit
or loss:
Exchange differences on retranslation
of foreign subsidiaries 91 (86) 944
Net (loss) on financial assets
at fair value through Other
Comprehensive Income 8b (1,137) (1,047) (1,412)
Taxation - - -
--------------------------------------- ------ ------------ ------------ ----------
Total comprehensive income
for the period (1,955) 962 1,571
--------------------------------------- ------ ------------ ------------ ----------
Total comprehensive income
for the period attributable
to:
Owners of the parent (2,110) 923 1,324
Non-controlling interests 155 39 247
--------------------------------------- ------ ------------ ------------ ----------
(1,955) 962 1,571
--------------------------------------- ------ ------------ ------------ ----------
All operations are continuing.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 September 2023
Notes As at As at As at
30 Sep 31 Mar 30 Sep
2023 (unaudited) 2023 (audited) 2022
(unaudited)
(restated)
------------------------------- ------ ------------------- ----------------- --------------
GBP'000 GBP'000 GBP'000
Non-current assets
Investment properties 6 47,134 47,009 22,839
Right of use Asset 647 197 790
Property, plant and equipment 67 80 106
Investment in associates 8a 17,056 17,588 19,834
Other financial assets
at fair value through OCI 8b 2,973 4,544 5,493
Goodwill 153 153 153
Deferred tax assets 970 930 913
------------------------------- ------ ------------------- ----------------- --------------
Total non-current assets 69,000 70,501 50,128
------------------------------- ------ ------------------- ----------------- --------------
Current assets
Inventories - land and
buildings 7 - - 19,722
Current tax assets 113 79 7
Right of use assets 457 457 444
Trade and other receivables 9 5,354 3,729 6,113
Cash and cash equivalents 6,707 7,647 5,977
------------------------------- ------ ------------------- ----------------- --------------
Total current assets 12,631 11,912 32,263
------------------------------- ------ ------------------- ----------------- --------------
Current liabilities
Trade and other payables 10 (4,713) (3,310) (4,486)
Provisions 11 (113) (158) (773)
Lease liabilities (469) (469) (408)
Financial liabilities 12 (1,067) (1,116) (5,648)
Other financial liabilities 13 (12,286) (939) (907)
Current tax liabilities (41) (28) (93)
------------------------------- ------ ------------------- ----------------- --------------
Total current liabilities (18,689) (6,020) (12,315)
------------------------------- ------ ------------------- ----------------- --------------
Net current assets (6,058) 5,892 19,948
------------------------------- ------ ------------------- ----------------- --------------
Total assets less current
liabilities 62,942 76,393 70,076
------------------------------- ------ ------------------- ----------------- --------------
Non-current liabilities
Financial liabilities 12 (10,921) (11,519) (7,114)
Other financial liabilities 13 (4,660) (16,082) (15,863)
Lease liabilities (658) (267) (890)
Deferred tax liabilities (3,203) (3,050) (2,509)
Net assets 43,500 45,475 43,700
------------------------------- ------ ------------------- ----------------- --------------
Equity
Called up share capital 1,166 1,166 1,166
Share premium 5,635 5,635 5,635
Share-based payment reserve 497 179 179
Foreign exchange translation
reserve (2,204) (2,353) (3,392)
Purchase of own shares
reserve (2,440) (2,440) (2,440)
Investment revaluation
reserve (1,865) (728) (363)
Retained earnings 40,861 41,983 42,683
------------------------------- ------ ------------------- ----------------- --------------
Equity attributable to
the owners of the parent 41,650 43,442 43,468
Non-controlling interests 1,850 2,033 232
------------------------------- ------ ------------------- ----------------- --------------
Total equity 43,500 45,475 43,700
------------------------------- ------ ------------------- ----------------- --------------
Net assets per share 5 37.56p 39.18p 39.20p
------------------------------- ------ ------------------- ----------------- --------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months to 30 September 2023
Share Share Share- Foreign Purchase Investment Retained Non-Controlling Total
Capital Premium Based Exchange of Own Revaluation Earnings Interests
Payment Translation Shares Reserve
Reserve Reserve
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
Restated GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
At 1 Apr 2022 1,166 5,791 179 (3,297) (2,653) 684 40,895 229 42,994
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
Profit for the
period - - - - - - 2,095 - 2,095
Net (loss) on
financial
assets at fair
value through
other
comprehensive
income - - - - - (1,047) - - (1,047)
Movement on
foreign
exchange - - - (95) - - - 9 (86)
Total
Comprehensive
Income - - - (95) - (1,047) 2,095 9 962
Sale of treasury
shares - (156) - - 213 - - - 57
Non-controlling
interests - - - - - - (30) 30 -
Dividends paid - - - - - - (277) (36) (313)
At 30 Sep 2022 1,166 5,635 179 (3,392) (2,440) (363) 42,683 232 43,700
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
Profit for the
period - - - - - - (56) - (56)
Net gain/ (loss)
on financial
assets at fair
value through
other
comprehensive
income - - - - - (365) - - (365)
Movement on
foreign
exchange - - - 1,039 - - - 118 1,157
Non-controlling
interest in 5PT - - - - - - - 1,606 1,606
Total
Comprehensive
Income - - - 1,039 - (365) (56) 1,724 2,342
Sale of treasury - - - - - - - - -
shares
Purchase of - - - - - - - - -
treasury shares
Non-controlling
interests - - - - - - (90) 90 -
Dividends paid - - - - - - (554) (13) (567)
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
At 1 Apr 2023 1,166 5,635 179 (2,353) (2,440) (728) 41,983 2,033 45,475
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
Profit for the
period - - - - - - (909) - (909)
Net (loss) on
financial
assets at fair
value through
other
comprehensive
income - - - - - (1,137) - - (1,137)
Change in the
proportion held
in
non-controlling
interests - - - - - - - (265) (265)
Movement on
foreign
exchange - - - 149 - - - (58) 91
Total
Comprehensive
Income - - - 149 - (1,137) (909) (323) (2,220)
Share options
charge - - 318 - - - - - 318
Non-controlling
interests - - - - - - (213) 213 -
Dividends paid - - - - - - - (73) (73)
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
At 30 Sep 2023 1,166 5,635 497 (2,204) (2,440) (1,865) 40,861 1,850 43,500
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
CONSOLIDATED CASH FLOW STATEMENT
for the six months to 30 September 2023
Notes Six months Six months Year to
to to 30 Sep
2022 (unaudited)
30 Sep 31 Mar
2023 (unaudited) 2023
(audited)
------------------------------------- ------ ------------------- ------------------ ------------
GBP'000 GBP'000 GBP'000
------------------------------------- ------ ------------------- ------------------ ------------
Cash flows from/ (used in)
operating activities
Operating (loss)/ profit (183) 1,086 2,004
Adjustments for:
Depreciation of investment
property, and property, plant
& equipment 34 14 99
Profit on the sale of investment
property - (1,061) (1,779)
(Increase)/ decrease in inventories - (59) -
(Increase)/ Decrease in trade
and other receivables (1,626) (1,679) 777
(Decrease)/ increase in trade
and other payables 1,348 (415) 2,813
Share options charge 318 - -
Other non-cash adjustments 194 3 180
Cash generated from operations 85 (2,111) 4,094
Income taxes paid (169) (124) (616)
------------------------------------- ------ ------------------- ------------------ ------------
Net cash flow (used in)/
from operating activities (84) (2,235) 3,478
------------------------------------- ------ ------------------- ------------------ ------------
Cash flow from/ (used in)
investing activities
Capital expenditure on investment
properties 6 (315) (81) (1,017)
Purchase of property, plant
and equipment (21) (8) (10)
Purchase of inventories - (1,070) -
Proceeds from the sale of
an investment property - 2,967 8,612
Purchase of investment property - - (7,443)
Cash paid on acquisition
of new subsidiaries - - (165)
Cash and cash equivalents
received on acquisitions - - 83
Investment in funds 8b - (2) (3)
Proceeds from funds 8b 434 907 1,492
Proceeds from Investment
in shares of associates 8a 233 175 176
Interest received 3 95 7 145
Investment in shares of associates 8a - (757) (606)
Dividends from associates 8a - - -
Distributions received 114 1,300 1,494
Net cash flow from/ (used
in) investing activities 540 3,438 2,758
------------------------------------- ------ ------------------- ------------------ ------------
Cash flow from/ (used in)
financing activities
Proceeds from bank loan - 1,686 1,474
Repayment of bank loans (911) (2,977) (5,215)
Sale of shares held in treasury - 119 57
Interest paid 3 (369) (188) (530)
Dividends paid - (277) (831)
Dividends paid to non-controlling
interests (73) (36) (49)
------------------------------------- ------ ------------------- ------------------ ------------
Net cash flow (used in)/
from financing activities (1,353) (1,673) (5,094)
Net (decrease)/ increase
in cash and cash equivalents (897) (470) 1,142
------------------------------------- ------ ------------------- ------------------ ------------
Cash and cash equivalents
at the beginning of period 7,647 6,419 6,419
------------------------------------- ------ ------------------- ------------------ ------------
Currency translation gains/
(losses) on cash and cash
equivalents (43) 28 86
------------------------------------- ------ ------------------- ------------------ ------------
Cash and cash equivalents
at the end of the period 6,707 5,977 7,647
------------------------------------- ------ ------------------- ------------------ ------------
NOTES TO THE ACCOUNTS
for the six months ended 30 September 2023
1. Basis of Preparation
-- These interim consolidated financial statements for the six
months ended 30 September 2023 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 2023 and are in compliance with IAS 34 "Interim Financial
Reporting". These accounting policies are drawn up in accordance
with UK-adopted International Accounting Standards.
-- The comparative figures for the financial year ended 31 March
2023 are not the full 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 23 November 2023.
2. Segmental Analysis
Segment reporting for the six months to 30 September 2023
Fund Management Group Properties
Division Division
----------------------- ----------------- ------------------------------- ------------ --------
Property Group Associates Unallocated TOTAL
fund management properties and investments central
overheads
----------------------- ----------------- ------------ ----------------- ------------ --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- ----------------- ------------ ----------------- ------------ --------
Rental income - 2,030 - - 2,030
Service charge
income - 673 - - 673
Asset management
fees 1,263 - - - 1,263
Performance related - - - - -
fee income
----------------------- ----------------- ------------ ----------------- ------------ --------
Total revenue 1,263 2,703 - - 3,966
----------------------- ----------------- ------------ ----------------- ------------ --------
Depreciation and
amortisation (21) (13) - - (34)
----------------------- ----------------- ------------ ----------------- ------------ --------
Operating profit 158 558 - (899) (183)
Share of results
in associates - - 517 - 517
Fair value adjustment
to associate - - (816) - (816)
Investment income - - 114 - 114
Interest income - 95 - - 95
Interest expense - (379) - - (379)
Profit/ (loss)
before tax 158 274 (185) (899) (652)
----------------------- ----------------- ------------ ----------------- ------------ --------
Analysed as:
Underlying profit/
(loss) before tax
before adjusting
for the following
items: 96 39 631 (570) 196
Interest on loan
to associates - 63 - - 63
Share option charge - - - (318) (318)
Fair value adjustment
to associate - - (816) - (816)
Realised foreign
currency (losses)/
gains 62 172 - (11) 223
Profit/ (loss)
before tax 158 274 (185) (899) (652)
----------------------- ----------------- ------------ ----------------- ------------ --------
Revenue for the six months to 30 September 2023 from continuing
operations consists of revenue arising in the United Kingdom 18%
(30 September 2022: 27%) and Central and Eastern Europe 82% (30
September 2022: 73%) and all relates solely to the Group's
principal activities.
Direct costs incurred by First Property relating to the cost of
the Board and the related share listing costs are shown separately
under unallocated central costs.
Segment reporting for the six months to 30 September 2022
Fund Management Group Properties
Division Division
---------------------- ----------------- ------------------------------- ------------ --------
Property Group Associates Unallocated TOTAL
fund management properties and investments central
overheads
---------------------- ----------------- ------------ ----------------- ------------ --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- ----------------- ------------ ----------------- ------------ --------
Rental income - 1,788 - - 1,788
Service charge
income - 737 - - 737
Asset management
fees 1,437 - - - 1,437
Performance related
fee income 226 - - - 226
---------------------- ----------------- ------------ ----------------- ------------ --------
Total revenue 1,663 2,525 - - 4,188
---------------------- ----------------- ------------ ----------------- ------------ --------
Depreciation and
amortisation (18) (12) - - (30)
---------------------- ----------------- ------------ ----------------- ------------ --------
Operating profit 519 1,089 - (522) 1,086
Share of results
in associates - - 117 - 117
Investment income - - 1,302 - 1,302
Interest income - 75 - - 75
Interest expense - (188) - - (188)
Profit/ (loss)
before tax 519 976 1,419 (522) 2,392
---------------------- ----------------- ------------ ----------------- ------------ --------
Analysed as:
Underlying profit/
(loss) before tax
before adjusting
for the following
items: 294 27 223 (540) 4
Interest on loan
to FOP - 68 - - 68
Profit on Sale
of Group properties - 1,061 - - 1,061
Performance related
fee income 226 - - - 226
Investment income
resulting from
sale of properties - - 1,196 - 1,196
Staff incentives - - - - -
Realised foreign
currency (losses)/
gains (1) (180) - 18 (163)
Profit/ (loss)
before tax 519 976 1,419 (522) 2,392
---------------------- ----------------- ------------ ----------------- ------------ --------
Segment reporting for the year to 31 March 2023
Fund Management Group Properties
Division Division
--------------------------- ----------------- ------------------------------- ------------ ---------
Property Group Associates Unallocated TOTAL
fund management properties and investments central
overheads
--------------------------- ----------------- ------------ ----------------- ------------ ---------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- ----------------- ------------ ----------------- ------------ ---------
Rental income - 3,614 - - 3,614
Service charge
income - 1,115 - - 1,115
Asset management
fees 2,892 - - - 2,892
Performance related
fee income (372) - - - (372)
--------------------------- ----------------- ------------ ----------------- ------------ ---------
Total revenue 2,520 4,729 - - 7,249
--------------------------- ----------------- ------------ ----------------- ------------ ---------
Depreciation and
amortisation (36) (24) - - (60)
--------------------------- ----------------- ------------ ----------------- ------------ ---------
Operating profit 120 3,069 - (1,185) 2,004
Share of results
in associates - - 273 - 273
Fair value adjustment
on associates - - (901) - (901)
Investment income - - 1,497 - 1,497
Interest income - 20 - 125 145
Interest expense - (530) - - (530)
Profit/ (loss)
before tax 120 2,559 869 (1,060) 2,488
--------------------------- ----------------- ------------ ----------------- ------------ ---------
Analysed as:
Underlying profit/
(loss) before tax
before adjusting
for the following
items: 513 752 273 (1,089) 449
Provision in respect
of rent guarantee - 511 - - 511
Profit on the sale
of investment properties - 1,779 - - 1,779
Interest received
on loan to FOP - 125 - - 125
Fair value adjustment
on associates FOP - - (901) - (901)
UK fund distributions
following sale
of properties - - 1,497 - 1,497
Performance related
fee income 222 - - - 222
Clawback of Office
income (594) - - - (594)
Staff incentives (44) (65) - - (109)
Realised foreign
currency (losses)/
gains 23 (543) - 29 (491)
Total 120 2,559 869 (1,060) 2,488
--------------------------- ----------------- ------------ ----------------- ------------ ---------
Assets - Group 795 54,525 4,544 4,727 64,591
Share of net assets
of associates - - 17,588 - 17,588
Liabilities (71) (36,574) - (59) (36,704)
--------------------------- ----------------- ------------ ----------------- ------------ ---------
Net assets 724 17,951 22,132 4,668 45,475
--------------------------- ----------------- ------------ ----------------- ------------ ---------
3. Interest Income/ (Expense)
Six months Six months Year
ended ended ended
30 Sep 2023 30 Sep 2022 31 Mar 2023
------------------------------------ ------------------------ ------------------------ ------------------------
GBP'000 GBP'000 GBP'000
Interest income - bank 2 2 - -
deposits
Interest income - other 73 75 145
Total interest income 95 75 145
------------------------------------ ------------------------ ------------------------ ------------------------
Six months Six months Year
ended ended ended
30 Sep 2023 30 Sep 2022 31 Mar 2023
---------------------------------------- ------------------------ ------------------------ ------------------------
GBP'000 GBP'000 GBP'000
Interest expense - property
loans (373) (180) (516)
Interest expense - bank
and other (6) (8) (14)
Total interest expense (379) (188) (530)
---------------------------------------- ------------------------ ------------------------ ------------------------
4. Tax Expense
The tax 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.
Six months Six months Year
ended ended ended
30 Sep 2023 30 Sep 2022 31 Mar 2023
------------------------- ------------------------ ------------------------ ------------------------
GBP'000 GBP'000 GBP'000
Current tax (146) (204) (559)
Deferred tax (111) (93) 110
------------------------- ------------------------ ------------------------ ------------------------
Total (257) (297) (449)
------------------------- ------------------------ ------------------------ ------------------------
5. Earnings/ NAV Per Share
Six months Six months Year
ended ended ended
30 Sep 30 Sep 2022 31 Mar 2023
2023
------------------------------------- ---------------------- ----------------------------- ------------------------
Basic (loss)/ earnings
per
share (1.01p) 1.86p 1.73p
Diluted (loss)/ earnings
per
share (0.99p) 1.83p 1.70p
------------------------------------- ---------------------- ----------------------------- ------------------------
The basic earnings per ordinary share is calculated on the
profit on ordinary activities after taxation and after excluding
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.
GBP'000 GBP'000 GBP'000
--------------------------------------------- ------------------- ------------------------ -------------------
Basic earnings per share (1,122) 2,065 1,919
Notional interest on share
options assumed to be exercised 2 3 2
--------------------------------------------- ------------------- ------------------------ -------------------
Diluted earnings assuming
full dilution (1,120) 2,068 1,921
--------------------------------------------- ------------------- ------------------------ -------------------
Number Number Number
------------------------------------------- ----------------------- ----------------------- -----------------------
Weighted average number of
Ordinary Shares in issue 110,875,483 110,868,671 110,875,483
Number of Share options 2,110,000 2,110,000 2,110,000
------------------------------------------- ----------------------- ----------------------- -----------------------
Total number of Ordinary Shares
used in the diluted earnings
per Share calculation 112,985,483 112,978,671 112,985,483
------------------------------------------- ----------------------- ----------------------- -----------------------
Six months Six months Year
ended ended ended
30 Sep 30 Sep 2022 31 Mar 2023
2023
(restated)
------------------------------------ ----------------------- ------------------------ ------------------------
Net assets per share 37.56p 39.20p 39.18p
Adjusted net assets per
share 43.56p 47.12p 46.50p
------------------------------------ ----------------------- ------------------------ ------------------------
The following numbers have been used to calculate both the net
assets and adjusted net assets per share:
Six months Six months Year
ended ended ended
30 Sep 30 Sep 2022 31 Mar 2023
2023
(restated)
----------------------------------------- ----------------------- ------------------------ ------------------------
GBP'000 GBP'000 GBP'000
----------------------------------------- ----------------------- ------------------------ ------------------------
Net assets excluding
non-controlling
interest 41,650 43,468 43,442
For adjusted net assets GBP'000 GBP'000 GBP'000
per share
----------------------------------------- ----------------------- ------------------------ ------------------------
Net assets excluding
non-controlling
interests 41,650 43,468 43,442
Investment properties at
fair value net of deferred
taxes 4,981 2,102 5,639
Inventories at fair value - 2,847 -
net of deferred taxes
Investments in associates
at fair value 2,269 4,506 3,139
Other items 323 323 324
----------------------------------------- ----------------------- ------------------------ ------------------------
Total 49,223 53,246 52,544
----------------------------------------- ----------------------- ------------------------ ------------------------
6. Investment Properties
Six months Year Six months
ended ended ended
30 Sep 31 Mar 2023 30 Sep 2022
2023
----------------------------------------------- ---------------------- ------------------- ------------------------
GBP'000 GBP'000 GBP'000
----------------------------------------------- ---------------------- ------------------- ------------------------
1 Apr 47,009 23,849 23,849
Reclassification of inventory - 19,795 -
Additions arising on consolidation - 7,621 -
Capital expenditure 315 1,017 81
Disposals - (6,459) (1,723)
Depreciation (134) (134) (14)
Foreign exchange translation (56) 1,320 646
Total at end of period 47,134 47,009 22,839
----------------------------------------------- ---------------------- ------------------- ------------------------
Investment properties owned by the Group are stated at cost less
depreciation and accumulated impairment losses.
7. Inventory - Land and Buildings
Six months Year Six months
ended ended ended
30 Sep 31 Mar 2023 30 Sep 2022
2023
------------------------------------------- ----------------- ------------------ ------------------
GBP'000 GBP'000 GBP'000
------------------------------------------- ----------------- ------------------ ------------------
1 Apr - 12,352 12,352
Purchase including acquisition
costs - 7,443 7,443
Reclassified as investment - (19,795) -
property
Capital expenditure - - 92
Disposals - - -
Depreciation - - (33)
Foreign exchange translation - - (132)
Total at end of period - - 19,722
------------------------------------------- ----------------- ------------------ ------------------
During the year ended 31 March 2023 the Group acquired an
additional 7,171 m(2) of office space in Blue Tower (an office
block in Warsaw) for a consideration of GBP7.20 million, which is
payable in seven instalments over a six-year period. Following this
purchase, the Group's interest in Blue Tower now represents 80.3%
(2022: 48.2%) of the building. As a result of this acquisition the
Group reclassified the building from Inventory to Investment
Property.
8. Investments in associates and other financial investments
Six months Year Six months
ended ended ended
30 Sep 31 Mar 2023 30 Sep 2022
2023
---------------------------------------------- ----------- ------------- -------------
GBP'000 GBP'000 GBP'000
---------------------------------------------- ----------- ------------- -------------
a) Associates
Cost of investment at beginning
of period 17,588 19,135 19,135
Additions - 606 757
Disposals - (1,349) -
Repayment of shareholder
loan (233) (176) (175)
Share of associates profit/(loss)
after tax 517 273 117
Share of associates revaluation
gains (816) (901) -
Dividends received - - -
Cost of investment at end
of period 17,056 17,588 19,834
---------------------------------------------- ----------- ------------- -------------
The disposal in the year ended 31 March 2023 represents the
Group gaining control of 5PT. Following the purchase of additional
shares in this company the Group is now deemed to have control and
has consolidated this fund into the Group.
Six months Year Six months
ended ended ended
30 Sep 31 Mar 2023 30 Sep 2022
2023
------------------------------------- ----------- ------------- -------------
GBP'000 GBP'000 GBP'000
------------------------------------- ----------- ------------- -------------
Investments in associates
5th Property Trading Ltd - - 1,861
Fprop Galeria Corso Ltd 2,918 3,058 2,888
Fprop Krakow Ltd 1,181 1,154 1,578
Fprop Cluj Ltd 652 636 602
Fprop Phoenix Ltd - 61 478
Fprop Opportunities plc 12,305 12,679 12,735
------------------------------------- ----------- ------------- -------------
17,056 17,588 20,142
------------------------------------- ----------- ------------- -------------
Less: Group share of profit
after tax withheld on sale
of property to an associate
in 2007 - - (308)
------------------------------------- ----------- ------------- -------------
Cost of investment at end
of period 17,056 17,588 19,834
------------------------------------- ----------- ------------- -------------
Six months Year Six months
ended ended ended
30 Sep 31 Mar 2023 30 Sep 2022
2023
---------------------------------------- ----------- ------------- -------------
GBP'000 GBP'000 GBP'000
---------------------------------------- ----------- ------------- -------------
b) Other financial investments
Cost of investment at 1 Apr 4,544 7,445 7,445
Additions - 3 2
Repayments (434) (1,492) (907)
(Decrease) in fair value
during the period (1,137) (1,412) (1,047)
---------------------------------------- ----------- ------------- -------------
Cost of investment at end
of period 2,973 4,544 5,493
---------------------------------------- ----------- ------------- -------------
The Group holds four unlisted investments in funds managed by
FPAM. Each is designated at fair value through "Other Comprehensive
Income" (OCI) as per IFRS 9. The Directors consider their fair
value to not be materially different from their carrying value.
Fair value has been calculated by applying the Group's
percentage holding in the investments to the fair value of their
net assets.
9. Trade and Other Receivables
Six months Year Six months
ended ended ended
30 Sep 31 Mar 2023 30 Sep 2022
2023
-------------------------------- ----------- ------------- -------------
GBP'000 GBP'000 GBP'000
Current assets
Trade receivables 2,534 1,130 1,168
Less provision for impairment
of receivables (225) (242) (96)
-------------------------------- ----------- ------------- -------------
Trade receivables net 2,309 888 1,072
Other receivables 1,852 1,820 3,587
Prepayments and accrued income 1,193 1,021 1,454
Total at end of period 5,354 3,729 6,113
-------------------------------- ----------- ------------- -------------
10. Trade and Other Payables
Six months Year Six months
ended
30 Sep ended ended
2023
31 Mar 2023 30 Sep 2022
(restated)
----------------------------- ------------ ------------- -------------
GBP'000 GBP'000 GBP'000
Current liabilities
Trade payables 1,824 1,227 755
Other taxation and social
security 239 254 277
Other payables and accruals 2,462 1,701 3,297
Deferred income 188 128 157
Total at end of period 4,713 3,310 4,486
----------------------------- ------------ ------------- -------------
11. Provisions
Six months Year Six months
ended ended ended
30 Sep 31 Mar 2023 30 Sep 2022
2023
--------------------- ----------- ------------- -------------
GBP'000 GBP'000 GBP'000
--------------------- ----------- ------------- -------------
Current liabilities 113 158 773
--------------------- ----------- ------------- -------------
The provision at 30 September 2023 represents a rent guarantee
of GBP0.11 million (31 March 2023: GBP0.16 million) and fit out
costs of GBPNil (31 March 2023: GBPNil). These provisions are in
respect of the guarantee given as part of the sale of a property,
Cha ubińskiego 8 ("CH8"), which completed in April 2020.
As a condition of the sale the Group guaranteed the rental and
service charge income up to some EUR1.20 million per annum for five
years. In addition, the Group guaranteed fit-out costs on the
residual vacant space up to some EUR1.50 million.
12. Financial Liabilities
Six months Year Six months
ended ended ended
30 Sep 31 Mar 2023 30 Sep 2022
2023
---------------------------- ----------- ------------- -------------
GBP'000 GBP'000 GBP'000
Current liabilities
Bank loans 1,067 1,116 5,648
Total at end of period 1,067 1,116 5,648
---------------------------- ----------- ------------- -------------
Non-current liabilities
Bank loans 10,921 11,519 7,114
Total at end of period 10,921 11,519 7,114
---------------------------- ----------- ------------- -------------
Total obligations under
financial liabilities
Repayable within one year 1,067 1,116 5,648
Repayable within one and
five years 7,890 8,080 6,629
Repayable after five years 3,031 3,439 485
---------------------------- ----------- ------------- -------------
Total at end of period 11,988 12,635 12,762
---------------------------- ----------- ------------- -------------
Five bank loans (all denominated in Euros) totalling GBP11.99
million (31 March 2023: GBP12.64 million), included within
financial liabilities, are secured against investment properties
owned by the Group. These bank loans are otherwise non-recourse to
the Group's assets.
The interest rate profile of the Group's financial liabilities
at 30 September 2023 and 31 March 2023 was as follows:
Interest Non- Total
bearing interest
bearing
----------------------------- --------- ---------- --------
GBP'000 GBP'000 GBP'000
----------------------------- --------- ---------- --------
Financial liabilities 11,988 - 11,988
Other financial liabilities - 16,946 16,946
At 30 Sep 2023 11,988 16,946 28,934
Financial liabilities 12,635 - 12,635
Other financial liabilities - 17,021 17,021
----------------------------- --------- ---------- --------
At 31 Mar 2023 12,635 17,021 29,656
----------------------------- --------- ---------- --------
A one percentage point increase in interest rates would increase
the annual interest rate bill by GBP0.12 million per annum (31
March 2023: GBP0.13 million per annum).
13. Other Financial Liabilities
Six months Year Six months
ended ended ended
30 Sep 31 Mar 2023 30 Sep 2022
2023
---------------------------- ----------- ------------- -------------
GBP'000 GBP'000 GBP'000
Current liabilities 12,286 939 907
Non-current liabilities 4,660 16,082 15,863
Total at end of period 16,946 17,021 16,770
---------------------------- ----------- ------------- -------------
Total obligations under
financial liabilities
Repayable within one year 12,286 939 907
Repayable within one and
five years 4,660 14,317 14,159
Repayable after five years - 1,765 1,704
---------------------------- ----------- ------------- -------------
Total at end of period 16,946 17,021 16,770
---------------------------- ----------- ------------- -------------
Other financial liabilities includes a balance within current
liabilities of EUR12.00 million which was a result of the
restructuring of a finance lease secured against the office tower
in Gdynia. As part of the deal, the Group acquired the freehold of
the property for EUR16.00 million of which EUR4.00 million has been
paid and EUR12.00 million is payable in the financial year ended 31
March 2025. No interest is payable on this liability.
Other financial liabilities also represents t he Group's
additional 32% investment in Blue Tower, Warsaw, which was financed
by deferred consideration of PLN 40.4 million (GBP7.44 million).
This liability, which is non-interest bearing, is payable in seven
instalments, the first of which has been paid.
The interim results are being circulated to all shareholders and
can be downloaded from the company's web site - www.fprop.com .
Further copies can be obtained from the registered office at 32 St
James's Street, London SW1A 1HD.
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END
IR DLLFLXFLBFBF
(END) Dow Jones Newswires
November 23, 2023 02:00 ET (07:00 GMT)
First Property (LSE:FPO)
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First Property (LSE:FPO)
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