TIDMNLD
RNS Number : 7541Y
Nordic Land PLC
31 December 2010
Nordic Land plc - In Liquidation
Interim Report for the period from 1 April 2010 to 30 September
2010
The board of directors (the "Board") of Nordic Land plc - In
Liquidation ("Nordic Land" or the "Company") is pleased to present
the interim results of the Company and its subsidiaries (the
"Group") for the 6 month period ended 30 September 2010.
For further information please contact:
Nordic Land plc
Ray Horney, Chairman +44 20 7367 8888
(c/o Bankside Consultants)
SP Angel Corporate Finance LLP
Robert Wooldridge / Tercel Moore +44 20 7647 9650
Matrix Corporate Capital LLP
Stephen Mischler +44 20 3206 7203
Bankside Consultants
Simon Rothschild +44 20 7367 8888
Chairman's statement
Operating review
The results for the six months ended 30 September 2010 cover the
last full period in which the Group owned its portfolio of
properties in Sweden. Subsequent to the period end, all of the
properties have been sold and the Group has commenced an orderly
winding up of its operations.
Sale of properties and winding up of the Group
At a general meeting of the shareholders held on 7 October 2010,
shareholders approved the sale of the Group's property portfolio on
terms as set out in a circular to shareholders dated 17 September
2010.
The sale of the Group's two largest properties, Terminalen 1 in
Helsingborg and Lackeraren 3 in Borlange, were completed on 15
October 2010 at gross property values of SEK 490 million (GBP46.0
million) and SEK 148 million (GBP13.9 million) respectively. Out of
the gross consideration, SEK 15 million (GBP1.4 million) from the
sale of Terminalen and SEK 2.5 million (GBP0.2 million) from the
sale of Borlange have been placed in escrow to cover potential
warranty claims that may be brought by the purchasers of each
property. Provided that no such claims are brought (and that the
mortgage certificates for the Sicklaon property are delivered to
its buyer - see below), these escrow amounts will be released to
the Group on 14 October 2011 and 14 February 2012 respectively.
The sale of the third property ("Sickla"), in Sicklaon, had to
be renegotiated because the original lender, Lehman Brothers
International (Europe) (In Administration), in its capacity as
security agent for the bank borrowings and as holder of the
mortgage certificates for the property, was not able to locate
these mortgage certificates. Without the mortgage certificates the
sale of Sickla could not be completed as planned. Under the
renegotiated terms, the property was sold for the same gross
consideration of SEK 35 million (GBP3.3 million), but out of this
SEK 12 million (GBP1.1 million) has been retained in a pledged
account until the replacement mortgage certificates can be provided
to the purchaser. The purchaser has also taken a second charge on
the Terminalen and Borlange escrow amounts. Replacement mortgage
certificates are expected to be obtained in approximately 12
months. The sale of Sickla completed on 25 November 2010.
Following the sale of the properties and the repayment of the
Group's bank borrowings, the operations of the Group effectively
ceased.
Following approval at a shareholder meeting on 6 December 2010,
the Group commenced a summary winding up of its operations. The
winding up of the Company is being administered by the Board under
applicable Jersey law.
Results of operations
As a consequence of the decision to sell the subsidiaries that
own the portfolio, the properties and associated assets and
liabilities are shown in the Group statement of financial position
as non-current assets and liabilities classified as held for sale.
The operating results arising from the properties are classified as
discontinued activities.
The Group's continuing activities represent the administrative
functions not directly associated with the property operations. In
the 6 months ended 30 September 2010, these administrative expenses
were GBP0.4 million (30 September 2009: 0.3 million) and the loss
on continuing operations was GBP0.4 million (30 September 2009: 0.3
million).
For the discontinued property operations, net rental income for
the 6 months ended 30 September 2010 was GBP1.9 million (30
September 2009: GBP1.9 million), administrative expenses were
GBP0.4 million (30 September 2009: GBP0.4 million) and costs
associated with the sale of the properties were GBP0.9 million (30
September 2009: nil). There was a gain of GBP0.3 million (30
September 2009: loss of GBP4.3 million) relating to the revaluation
of the investment properties to their fair values which were
determined on the basis of the ultimate sale prices of each
property.
Financial expenses of the discontinued operations were GBP3.7
million (30 September 2009: GBP1.4 million) including a charge of
GBP2.2 million (30 September 2009: nil) for the increase in value
of the bank borrowings arising from the break costs that became
payable on early redemption of the borrowings.
The loss after tax for the discontinued operations was GBP2.8
million (30 September 2009: loss of GBP3.3 million).
The total loss after tax for the period was GBP3.2 million (30
September 2009: GBP3.6 million) equivalent to 16.1 pence per share
(30 September 2009: 18.0 pence).
The net asset value per share of the Group as at 30 September
2010 was 30.8 pence compared to 69.7 pence as at 30 September
2009.
Cash distributions
No dividend is proposed for the period ended 30 September
2010.
The free cash arising from the sale of the property portfolio,
after providing for a proportion of the expected costs of winding
up the Group will be distributed to shareholders as soon as the
completion accounts for the subsidiaries that were sold have been
finalised. This is expected to be in January 2011. The initial cash
distribution is expected to be approximately 10 pence per share.
Further details of this will be announced in due course.
As and when the respective escrow amounts associated with the
sales of the properties have become available to the Group, further
cash distributions will be made of the escrow amounts released,
less a retention for all the remaining expected costs of the
winding up. These further distributions are expected to be
approximately 12 pence per share in aggregate and are expected to
be made by the end of the first quarter of 2012.
Current activities
On completion of the sales and commencement of the winding up,
the Board has taken measures to reduce as much as possible the
ongoing operational costs of the Group. The management agreement
with Lathe Investments (Nordic) LLP and the agreements with other
service providers in connection with the properties have been
terminated and administrative costs have been greatly reduced. The
Board, which has responsibility for the winding up of the Group,
has agreed to a 50% reduction in its fees bringing them to a level
of GBP30,000 per annum in aggregate for all four directors.
The Board has determined that in the short term, it remains in
shareholders' best interests to retain the admission to listing on
AIM of the Company's shares so as to provide continued liquidity
for shareholders as well as potential strategic benefits. The Board
will seek the views of shareholders and this position will be
reviewed during the first quarter of 2011.
The Board and shareholders have had to face some difficult
issues during the last year, but I believe that the decisions
reached and actions taken have been in the best interests of the
Company's shareholders.
Ray Horney
Chairman
30 December 2010
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2010
Six months Six months Year ended
to 30 September to 30 September 31 March
2010 2009 2010
(Unaudited) (Unaudited) (Audited)
Note GBP000 GBP000 GBP000
Continuing
Operations
Administrative
expenses (359) (318) (579)
----------------- ----------------- -----------
Operating loss (359) (318) (579)
Financial income 2 5 8
----------------- ----------------- -----------
Loss before income
tax (357) (313) (571)
Income tax 5 (3) (5) (11)
----------------- ----------------- -----------
Loss for the period
from continuing
operations (360) (318) (582)
----------------- ----------------- -----------
Discontinued
operations 6
Net rental income 1,873 1,880 3,656
Administrative
expenses (350) (352) (683)
Disposal costs (935) - -
Profit /(loss) on
revaluation of
investment
properties 296 (4,308) (9,252)
----------------- ----------------- -----------
Operating profit
/(loss) 884 (2,780) (6,279)
Financial expenses 7 (3,727) (1,446) (2,963)
----------------- ----------------- -----------
Loss before income
tax (2,843) (4,226) (9,242)
Income tax 5 - 967 1,425
----------------- ----------------- -----------
Loss for the period
from discontinued
operations (2,843) (3,259) (7,817)
----------------- ----------------- -----------
Total loss for the
period
attributable to
equity holders (3,203) (3,577) (8,399)
Other comprehensive
income
Foreign currency
translation
differences 198 738 838
----------------- ----------------- -----------
Total other
comprehensive
income for the
period 198 738 838
----------------- ----------------- -----------
Total comprehensive
loss for the
period (3,005) (2,839) (7,561)
----------------- ----------------- -----------
Earnings per share
- basic 8 (16.1)p (18.0)p (42.3)p
The notes form part of these condensed consolidated interim
financial statements.
Condensed Consolidated Statement of Financial Position as at 30
September 2010
30 Sept 2010 30 Sept 2009 31 Mar 2010
(Unaudited) (Unaudited) (Audited)
Note GBP000 GBP000 GBP000
ASSETS
Non-current assets
Investment properties 9 - 64,568 61,253
------------- ------------- ------------
Current assets
Trade and other
receivables 10 19 225 393
Cash and cash equivalents 11 2,611 5,638 4,767
------------- ------------- ------------
2,630 5,863 5,160
------------- ------------- ------------
Non-current assets
classified as held for
sale 12 65,309 - -
------------- ------------- ------------
Total assets 67,939 70,431 66,413
------------- ------------- ------------
LIABILITIES
Current liabilities
Borrowings 13 58,546 - -
Trade and other payables 14 233 2,498 2,323
Income tax provisions 14 22 18
------------- ------------- ------------
58,793 2,520 2,341
------------- ------------- ------------
Non-current liabilities
Borrowings 13 - 53,616 54,950
Deferred tax liability 15 - 452 -
------------- ------------- ------------
- 54,068 54,950
------------- ------------- ------------
Liabilities directly
associated with
non-current assets
classified as held for
sale 16 3,029 - -
------------- ------------- ------------
Total liabilities 61,822 56,588 57,291
------------- ------------- ------------
Net assets 6,117 13,843 9,122
------------- ------------- ------------
EQUITY
Ordinary share capital 199 199 199
Share premium 17,523 17,523 17,523
Foreign currency
translation reserve 2,895 2,597 2,697
Retained earnings (14,500) (6,476) (11,297)
------------- ------------- ------------
Total shareholders'
equity 6,117 13,843 9,122
------------- ------------- ------------
Net asset value per 17 30.8 p 69.7 p 45.9 p
share - basic
These condensed consolidated interim financial statements were
approved by the Board of Directors on 30 December 2010 and were
signed on its behalf by:
Richard Thomas Keith Jenkins
Director Director
The notes form part of these condensed consolidated interim
financial statements.
Condensed Consolidated Statement of Changes in Equity for the
six months ended 30 September 2010
Ordinary
share Share Translation Retained Total
capital premium reserve earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1
April 2009 199 17,523 1,859 (2,936) 16,645
------------- -------- ------------ --------- --------
Total
Comprehensive
income/(loss) for
the period
Loss for the
period - - - (3,577) (3,577)
Other
Comprehensive
income/(loss) for
the period
Foreign exchange
differences - - 738 - 738
------------- -------- ------------ --------- --------
Total
comprehensive
income/(loss)for
the period - - 738 (3,577) (2,839)
------------- -------- ------------ --------- --------
Transactions with
owners, recorded
directly in
equity
Share-based
payments - - - 37 37
------------- -------- ------------ --------- --------
Total
transactions
with owners - - - 37 37
------------- -------- ------------ --------- --------
Balance at 30
September 2009 199 17,523 2,597 (6,476) 13,843
------------- -------- ------------ --------- --------
Total
Comprehensive
income / (loss)
for the period
Loss for the
period - - - (4,822) (4,822)
Other
Comprehensive
income for the
period
Foreign exchange
differences - - 100 - 100
------------- -------- ------------ --------- --------
Total
comprehensive
income/(loss)for
the period - - 100 (4,822) (4,722)
------------- -------- ------------ --------- --------
Transactions with
owners, recorded
directly in
equity
Share-based
payments - - - 1 1
------------- -------- ------------ --------- --------
Total
transactions
with owners - - - 1 1
------------- -------- ------------ --------- --------
Balance at 31
March 2010 199 17,523 2,697 (11,297) 9,122
------------- -------- ------------ --------- --------
Total
Comprehensive
income/(loss) for
the period
Loss for the
period - - - (3,203) (3,203)
Other
Comprehensive
income for the
period
Foreign exchange
differences - - 198 - 198
------------- -------- ------------ --------- --------
Total
comprehensive
income/(loss)for
the period - - 198 (3,203) (3,005)
------------- -------- ------------ --------- --------
Balance at 30
September 2010 199 17,523 2,895 (14,500) 6,117
------------- -------- ------------ --------- --------
The notes form part of these condensed consolidated interim
financial statements.
Condensed Consolidated Statement of Cash Flows for the six
months ended 30 September 2010
Six months to Six months Year ended
30 September to 30 September 31 March
2010 2009 2010
(Unaudited) (Unaudited) (Audited)
Note GBP000 GBP000 GBP000
Cash flows from
operating
activities
Loss for the period (3,203) (3,577) (8,399)
Interest receivable (2) (5) (8)
Interest payable and
other finance
costs 3,727 1,446 2,963
Income tax 3 (962) (1,414)
Adjustments for
non-cash items:
(Profit)/Loss on
revaluation of
investment
properties (296) 4,308 9,252
Share-based payments - 37 38
---------------- ----------------- -----------
Operating profit
before changes in
working capital 229 1,247 2,432
Other movements
arising from
operations:
(Increase) /
decrease in trade
and other
receivables (12) 152 (15)
Increase in trade
and other payables 929 296 116
Tax paid - (3) (12)
---------------- ----------------- -----------
Net cash generated
from operations 1,146 1,692 2,521
Interest received 2 5 6
Interest paid (1,453) (1,424) (2,845)
---------------- ----------------- -----------
Net cash flows
from/(used in)
operating
activities (305) 273 (318)
---------------- ----------------- -----------
Cash flows used in
investing
activities
Acquisition and
development of
investment
properties (77) (1,137) (1,474)
---------------- ----------------- -----------
Cash flows used in
investing
activities (77) (1,137) (1,474)
---------------- ----------------- -----------
Cash flows from
financing
activities
Net drawdown of
borrowings - 894 858
---------------- ----------------- -----------
Cash flows from
financing
activities - 894 858
---------------- ----------------- -----------
Net
increase/(decrease)
in cash and cash
equivalents (382) 30 (934)
Opening cash and
cash equivalents 4,767 5,336 5,336
Exchange
gains/(losses) (12) 272 365
---------------- ----------------- -----------
Closing cash and
cash equivalents 11 4,373 5,638 4,767
---------------- ----------------- -----------
The notes form part of these condensed consolidated interim
financial statements.
Notes to the condensed consolidated interim financial
statements
Note 1 General Information
Nordic Land plc - In Liquidation (the "Company") is a Jersey
company incorporated on 3 April 2007. As at 30 September 2010 the
Group owned three investment properties in Sweden.
After the period end, following approval at a shareholder
meeting on 7 October 2010, the Group sold its entire property
portfolio, repaid its bank borrowings and effectively ceased
operations (see note 19). On 6 December 2010, following approval by
shareholders at a subsequent general meeting, the directors
commenced a summary winding up of the Company and its remaining
subsidiaries. The directors intend to distribute the net cash
resources of the Company, after meeting the costs of the disposal
and the costs of the winding up, to shareholders.
The condensed consolidated interim financial statements for the
Company and its subsidiaries (together referred to as the "Group")
have been prepared as at 30 September 2010 and for the six month
period then ended. The condensed consolidated interim financial
statements, which do not represent statutory accounts, have not
been audited.
The unaudited condensed consolidated interim financial
statements were authorised for issuance by the board of directors
of the Company on 30 December 2010.
Note 2 Basis of preparation
These condensed consolidated interim financial statements have
been prepared in accordance with IAS 34 Interim Financial
Reporting. They do not include all of the information required for
full annual financial statements, and should be read in conjunction
with the consolidated financial statements of
the Group as at and for the year ended 31 March 2010.
The preparation of condensed consolidated interim financial
statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and
the reported amounts of assets and liabilities, income and
expenses. The estimates and associated assumptions are based on
historical experience and various other factors that are believed
to be reasonable under the circumstances the results of which form
the basis of making the judgements about carrying values of assets
and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial
statements, the significant judgements made by management in
applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those applied to the
consolidated financial statements as at and for the year ended 31
March 2010 together with judgements associated with the accounting
for the Group's discontinued activities and its assets and
liabilities held for sale (in accordance with IFRS 5 - Non-current
assets held for sale and discontinued operations). Information
about significant areas of estimation, uncertainty and critical
judgements in applying accounting policies that have the most
significant effect on the amounts recognised in the condensed
consolidated interim financial statements is included in the
following notes:
Note 6 - Discontinued operations
Note 9 - Investment properties
Note 12 - Non-current assets classified as held for sale
Note 13 - Borrowings
Note 16 - Liabilities directly associated with non-current
assets classified as held for sale
The condensed consolidated interim financial statements have
been prepared on the historical cost basis modified for the
revaluation of investment properties and derivative financial
instruments which are both measured at fair value.
The consolidated financial statements have been prepared on a
going concern basis which assumes that the Group will be able to
meet its liabilities as they fall due. The Group's working capital
forecasts show that the Group has sufficient cash resources to meet
its liabilities as they fall due over the next 12 months and until
the winding up has been completed.
Note 3 Significant Accounting Policies
The interim financial statements have been prepared following
the same accounting policies as adopted in the most recent set of
annual financial statements for the year ended 31 March 2010. Where
accounting policies differ from policies previously adopted, they
are stated and explained below.
The Company has followed the requirements of IFRS 5 -
Non-current assets held for sale and discontinued operations. As
the decision to sell the properties had been taken prior to the
period end, the results of its property ownership have been treated
as discontinued activities and the properties and associated assets
and liabilities have been classified as assets and liabilities held
for sale. The investment properties have been revalued to their
fair value which has been determined on the basis of the agreed
sale prices at which the properties were sold.
The bank borrowings have been revalued at the period end to
include the break costs which became payable on early redemption of
the loans which took place when the properties were sold.
Basis of consolidation
The condensed consolidated interim financial statements
incorporate the net assets and liabilities of the Group at the
statement of financial position date and its results for the period
then ended. Results of subsidiaries acquired or disposed during a
period are included from the effective date of acquisition or up to
the effective date of disposal as appropriate. The results of
subsidiaries are included in the condensed consolidated interim
financial statements from the date that control commences up to the
date that control ceases. Control exists when the Company has the
power, directly or indirectly, to govern the financial and
operating policies of an entity so as to obtain benefits from its
activities.
All intra-group transactions, balances, income and expenses are
eliminated on consolidation.
A change in the ownership interest of a subsidiary, without a
change in control, is accounted for as an equity transaction.
Functional and presentational currency
Items included in the financial statements of each of the
Group's entities are measured using the currency of the primary
economic environment in which the entity operates (the 'functional
currency'). The Group's condensed consolidated interim financial
statements are presented in sterling, which
is also the parent company's functional and presentational
currency.
Note 4 Operating segments
During the period the Group operated in one business segment,
being property investment and development in the Nordic region, and
as such no further segmental information is required. Following the
decision to sell these properties, these activities have been
treated as discontinued operations.
The Group's continuing operations relate to the administrative
costs associated with the non-property owning companies in the
Group.
Note 5 Income tax
Six months Six months Year ended
to 30 September to 30 September 31 March
2010 2009 2010
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Continuing operations
Current income tax charge (3) (5) (11)
----------------- ----------------- -----------
Tax charge for continuing
operations (3) (5) (11)
----------------- ----------------- -----------
Discontinued operations
Deferred taxation credit - 967 1,425
Tax credit for
discontinued operations - 967 1,425
----------------- ----------------- -----------
Total tax (charge) /
credit (3) 962 1,414
----------------- ----------------- -----------
Note 6 Discontinued operations
The income and expenses arising from the ownership of the
properties have been shown as discontinued operations as the
decision to sell the properties had been taken prior to the period
end. The properties were sold in October 2010 and November 2010 -
see note 19.
The cash flows arising from the discontinued operations
were:
Six months Six months Year ended
to 30 September to 30 September 31 March
2010 2009 2010
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Net cash flows (used
in) / from operating
activities (31) 461 182
Cash flows used in
investing activities (77) (1,137) (1,474)
Cash flows from financing
activities - 894 858
Note 7 Financial expenses
Financial expenses represent interest and other financial costs
arising on the Group's bank borrowings and are part of the Group's
discontinued operations.
Six months Six months Year ended
to 30 September to 30 September 31 March
2010 2009 2010
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Interest on bank loans 1,497 1,391 2,850
Other finance costs 31 55 113
Break fees payable on
early redemption of bank
loans 2,199 - -
----------------- ----------------- -----------
Interest payable and other
finance costs 3,727 1,446 2,963
----------------- ----------------- -----------
Note 8 Earnings per share
The loss per share has been calculated by dividing the loss for
the period attributable to equity shareholders by the weighted
average number of shares in issue during the period of 19,859,561
(30 September 2009 and 31 March 2010: 19,859,561).
Basic and diluted earnings per share are the same, as the issued
share options are currently anti-dilutive.
Note 9 Investment properties
As at 30 September As at 30 September As at 31 March
2010 2009 2010
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Opening balance 61,253 64,203 64,203
Capital
expenditure on
properties 77 1,137 1,474
Foreign exchange
gains 1,525 3,536 4,828
Gain/(Loss) on
revaluation 296 (4,308) (9,252)
------------------- ------------------- ---------------
63,151 64,568 61,253
Classified as held
for sale (note
12) (63,151) - -
------------------- ------------------- ---------------
Closing balance - 64,568 61,253
------------------- ------------------- ---------------
The fair value of investment properties as at 30 September 2010
has been determined on the gross property prices achieved on the
sales of the properties. These sale agreements were signed in
mid-September 2010, conditional on shareholder approval, and the
disposals were completed, following approval from shareholders, on
15 October 2010 for two properties and 25 November 2010 for the
final property.
Note 10 Trade and other receivables
As at 30 September As at 30 September As at 31 March
2010 2009 2010
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Rental debtors - 25 255
Prepayments and
accrued income 19 93 104
Other debtors - 107 34
------------------- ------------------- ---------------
19 225 393
------------------- ------------------- ---------------
As at 30 September 2010 trade and other receivables relating to
discontinued operations have been included within non-current
assets classified as held for sale (note 12).
The directors consider that the carrying amount of trade and
other receivables approximate to their fair value.
Note 11 Cash and cash equivalents
Cash and cash equivalents comprise cash held by the Group and
short-term deposits with an original maturity of three months or
less. The carrying value of these assets equals their fair
value.
As at 30 September As at 30 September As at 31 March
2010 2009 2010
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Continued
operations
Cash and cash
equivalents 2,611 5,638 4,767
------------------- ------------------- ---------------
Discontinued
operations
Cash and cash
equivalents held
for sale (note
12) 1,762 - -
------------------- ------------------- ---------------
Total cash and
cash equivalents 4,373 5,638 4,767
------------------- ------------------- ---------------
Note 12 Non-current assets classified as held for sale
As at 30 September 2010, the Group's investment properties and
associated assets held by the Group's property owning subsidiaries
which have been sold subsequent to the period end have been
classified as non-current assets held for sale.
As at 30 September
2010
(unaudited)
GBP000
Investment properties (note 9) 63,151
Cash balances 1,762
Rental debtors 316
Prepayments and accrued income 80
-------------------
65,309
-------------------
The cash balances classified as non-current assets held for sale
do not include cash of GBP1,800,000 held in a property owning
subsidiary as at 30 September 2010 and which was transferred to
another Group company prior to the disposal of the property owning
subsidiary.
Note 13 Borrowings
The bank loans as at 30 September 2010 represent borrowings of
SEK 602.7 million (30 September 2009 and 31 March 2010: SEK 602.7
million) together with break costs of SEK 24.7 million or
GBP2,199,000 (30 September 2009 and 31 March 2010: nil). The loans
were repaid in full, together with the break costs, on 15 October
2010 when the disposals of the two largest properties were
completed and have been shown as current liabilities as at 30
September 2010.
As at 30 As at 30
September September As at 31
2010 2009 March 2010
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Amounts falling due within
12 months:
Bank loans 56,554 - -
Break costs payable on early
redemption 2,199 - -
Unamortised borrowing costs (207) - -
------------- ------------ ------------
58,546 - -
------------- ------------ ------------
Amounts falling due after more
than one year:
Bank loans - 53,895 55,178
Unamortised borrowing costs - (279) (228)
------------- ------------ ------------
- 53,616 54,950
---------------------------------------------- ------------ ------------
As at 30 September 2010 the directors estimate that there is no
difference between the fair value and the book value of the
loans.
The weighted-average interest rate on loans of SEK 592.7 million
is 5.45% per annum. The interest rates on these loans are fixed.
The interest rate on the loan of SEK 10 million is variable.
The bank loans are secured on the shares of the borrowing
subsidiaries and their investment properties. There are no loan to
value covenants.
Note 14 Trade and other payables
As at 30 September As at 30 September As at 31 March
2010 2009 2010
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Accounts payable -
trade - 342 336
Deferred income - 1,128 1,081
Accruals 233 922 906
Other creditors - 106 -
------------------- ------------------- ---------------
233 2,498 2,323
------------------- ------------------- ---------------
As at 30 September 2010 trade and other payables associated with
discontinued operations have been included within liabilities
associated with non-current assets classified as held for sale
(note 16).
The Directors consider that the carrying amount of trade and
other payables approximate to their fair value.
Note 15 Deferred tax liability
As at 30 September As at 30 As at 31 March
2010 September 2009 2010
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Opening balance - 1,403 1,403
Net credit for
period - (967) (1,425)
Foreign exchange
differences - 16 22
------------------- ------------------ ---------------
Closing balance - 452 -
------------------- ------------------ ---------------
Note 16 Liabilities directly associated with non-current assets
classified as held for sale
Liabilities associated with assets held for sale represent trade
creditors, accruals and deferred income as at 30 September 2010 in
the property owning subsidiaries which have been sold subsequent to
the period end.
As at 30 September
2010
(Unaudited)
GBP000
Accounts payable - trade 419
Other current liabilities 46
Deferred income (including rent in advance) 1,146
Accrued expenses 1,418
3,029
Note 17 Net asset value per share
Net asset value per share has been calculated by dividing the
net assets attributable to the equity shareholders of the Company
by the number of ordinary shares in issue at the period end of
19,859,561 (30 September 2009 and 31 March 2010: 19,859,561).
Basic and diluted net asset value per share are the same, as the
issued share options are currently anti-dilutive.
Note 18 Financial risk management
During the six months to 30 September 2010, the Group's
financial risk management policies were consistent with those
disclosed in the consolidated financial statements for the year
ended 31 March 2010.
Note 19 Events after the date of the statement of financial
position
On 17 September 2010, the Company announced that its subsidiary,
Nordic Land AB, had entered into agreements to sell the companies
which own each of the Group's properties, subject to shareholder
approval. At a general meeting on 7 October 2010, shareholders
approved the disposals.
On 15 October 2010 the sales of the subsidiaries owning
Terminalen 1, Helsingborg, and Lackeraren 3, Borlange, were
completed and all of the Group's bank borrowings were repaid. On 25
November 2010, the sale of the subsidiary owning the properties in
Sicklaon was completed.
The disposals took place at the following gross property
prices:
Fair value as Fair value as
at 30 September at 30 September Disposal Disposal
2010 2010 price price
SEK million GBPm SEK million GBPm
Terminalen 1,
Helsingborg 490 46.0 490 46.0
Lackeraren 3,
Borlange 148 13.9 148 13.9
Sicklaon 117 35 3.3 35 3.3
Total property
value 673 63.2 673 63.2
Proceeds from
sale of other
assets and
liabilities 0.3
---------
Initial gross
sale
consideration
(see below) 63.5
Repayment of
Group
borrowings and
interest (59.6)
Costs of
disposal -
accrued as at 30
September 2010 - (0.9)
other (0.4)
---------
Net proceeds
from the
disposals 2.6
---------
Under the terms of the sale agreements, out of the initial gross
consideration, SEK 15 million (GBP1.4 million) from the sale of
Terminalen and SEK 2.5 million (GBP0.2 million) from the sale of
Borlange have been placed in escrow to cover potential warranty
claims that may be brought by the purchasers of each property.
Provided that no such claims are brought (and that the mortgage
certificates for the Sicklaon property are delivered to its buyer -
see below), these escrow amounts will be released to the Group on
14 October 2011 and 14 February 2012 respectively.
Out of the initial gross consideration from the sale of
Sicklaon, SEK 12 million (GBP1.1 million) has been retained in a
pledged account until the replacement mortgage certificates for the
property can be provided to the purchaser. The purchaser has also
taken a second charge on the Terminalen and Borlange escrow
amounts. Replacement mortgage certificates are expected to be
obtained in approximately 12 months. The sale of Sicklaon completed
on 25 November 2010.
The initial gross consideration was calculated on the basis of
proforma accounts prepared for each of the subsidiaries which were
sold. The final consideration will be determined once the closing
accounts for each subsidiary have been prepared and agreed between
the Group and the buyers. This is expected to be completed in
January 2011.
With the completion of the sale of the properties, the
operations of the Group effectively ceased. Following approval at a
shareholder meeting on 6 December 2010, the directors commenced a
summary winding up of the Group.
Since the period end, the directors have taken measures to
reduce the continuing operational costs of the Group. The
management agreement with Lathe Investments (Nordic) LLP and the
agreements with other service providers in connection with the
properties have been terminated and administrative costs have been
greatly reduced.
The free cash arising from the sale of the property portfolio
together with the other cash in the Group, after providing for a
proportion of the expected costs of winding up the Group, will be
distributed to shareholders as soon as the completion accounts for
the subsidiaries that were sold have been finalised. This is
expected to be in January 2011. The initial cash distribution is
expected to be approximately 10 pence per share. Further details of
this will be announced in due course.
As and when the respective escrow amounts associated with the
sales of the properties have become available to the Group, further
cash distributions will be made of the escrow amounts released,
less a retention for all remaining expected costs of the winding
up. These further distributions are expected to be approximately 12
pence per share in aggregate and are expected to be made by the end
of the first quarter of 2012.
Note 20 Interim report
The report is available on the Company's website:
www.nordicland.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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