RNS Number:7287N
St. Modwen Properties PLC
21 July 2003
ST. MODWEN PROPERTIES PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MAY 2003
"We anticipate record full-year results for the eleventh consecutive year "
St Modwen Properties PLC, the regeneration specialist, today announces its
interim results for the six months ended 31 May 2003.
Highlights include:
* Interim profits before tax increased 23% to #17.9m (2002: #14.5m)
* Earnings per share up 20% to 10.1p (2002: 8.4p)
* Dividend increase of 16% to 2.2p per ordinary share (2002: 1.9p)
* Net assets per share increased by 17% to 167.9p (2002: 143.4p)
* 45% increase in gross rent receivable reflecting last year's
acquisitions
* Property development and disposal profits up 12% to #12.2m (2002:
#10.9m)
* Hopper of future opportunities now at highest ever level:
- #113m Alstom portfolio of 19 properties acquired last December
- a further 285 acres of brownfield land acquired in first half
Commenting on the results, Sir Stanley Clarke, Chairman of St. Modwen, said:
"I am pleased to state that this strong start to 2003 provides us with the
confidence to anticipate record full-year results for the eleventh consecutive
year.
We remain on course to grow in line with the long-term objective of
doubling the net worth of the company every five years."
For further information please contact:
St. Modwen Properties PLC www.stmodwen.co.uk
Anthony Glossop, Deputy Chairman & Chief Executive On 21 July - 020 7067 0700
Bill Oliver, Managing Director thereafter - 0121 456 2800
Tim Haywood, Finance Director
Weber Shandwick Square Mile
Reg Hoare 020 7067 0700
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Chairman's Statement
Interim Results
I am delighted to inform you that the first-half results for 2003 have been very
encouraging, with profits before tax increasing by 23% to #17.9m (2002: #14.5m).
The profits include an increase of 45% in gross rent receivable in the half
year, following the acquisitions made during 2002 and at the beginning of the
current financial year.
As a result of the continued expansion of our management team and a further
provision of #1.1m in respect of share option costs, group overheads increased
by #1.9m in the period to #5.3m (2002: #3.4m).
Earnings per share increased by 20% to 10.1p (2002: 8.4p).
Dividend
These results, together with the prospects for the full year, have led the Board
to declare a 16% increase in the interim dividend to 2.2p per ordinary share
(2002: 1.9p).
This dividend will be paid on 12 September 2003 to shareholders on the register
as at 15 August 2003.
Current Trading
The gross annual rent-roll of the income producing portfolio has increased by
18% (#6.2m) to #40.7m since the year end.
Acquisitions net of disposals added #6.1m. New lettings and rent reviews were
slightly ahead of vacations and surrenders, which in the period included a
significant element of pre-development lease terminations.
Profits from property development and disposals increased 12% to #12.2m,
including the sale of two distribution warehouses at Stoke-on-Trent, the second
phase of our shopping centre at Newcastle under Lyme and an 80,000 sq. ft.
headquarters and warehouse building at Cannock.
Looking ahead to the development programme for the balance of 2003 and into
2004:
* The ground reclamation process at Norton Colliery,Stoke-on-Trent, has now been
completed and the first disposal of 13 acres of residential land completed in July.
* In Widnes:
- A 50,000 sq. ft. leisure and retail complex which has been pre-let to JJB
Sports is under construction and will be sold in the second half.
- The provision of a supermarket site for Asda has now gone unconditional and
will be included in profits for 2003.
* Following receipt of planning permission at the Edmonton Green shopping centre,
Enfield, London, the #60m development, which includes a 66,000 sq. ft.
supermarket for Asda, a new leisure centre and 155 residential flats, is
scheduled to commence in the second half.
* The Shrub Hill retail park in Worcester, which has been completed and
substantially let, will shortly be marketed for sale.
The Hopper
The acquisition of a #113m portfolio of 19 sites from Alstom in December through
our Key Property joint venture has boosted the Hopper to its highest level yet.
These assets will be marshalled into the development programme over the next 15
years. The first to contribute to development profits is anticipated to be a
site for residential development at Newton-le-Willows in 2004. Following the
subsequent assignment of the leases on five of the sites from Alstom to Siemens,
two properties in Aberdeen and Lincoln are now being marketed for resale.
We have also acquired 73 acres in Darlington from Corus and have exchanged
contracts to acquire 212 acres in Avonmouth, Bristol from Britannia Zinc.
Future Prospects
I am pleased to state that this strong start to 2003 provides your Board with
the confidence to anticipate record full-year results for the eleventh
consecutive year. We remain on course to grow in line with the long-term
objective of doubling the net worth of the company every five years.
Sir Stanley Clarke CBE, DL, Hon. D.Univ.
Chairman
21 July 2003
Group Profit and Loss Account
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
31 May 31 May 30 Nov
2003 2002 2002
Note #'000 #'000 #'000
---------- ---------- ----------
Turnover
Group and share of joint ventures 1 66,818 57,607 136,893
Less: share of joint ventures' turnover (6,758) (9,137) (28,728)
---------- ---------- ----------
60,060 48,470 108,165
---------- ---------- ----------
Operating profit
Group operating profit 19,328 14,150 28,561
Share of operating profit in
joint ventures 4,945 5,773 12,687
Share of operating profit in associates 425 180 1,093
---------- ---------- ----------
1 24,698 20,103 42,341
Profit on sale of investment properties 1,526 435 832
Net interest payable 2 (8,321) (6,010) (13,161)
---------- ---------- ----------
Profit on ordinary activities before taxation 17,903 14,528 30,012
Taxation (5,232) (4,012) (8,448)
---------- ---------- ----------
Profit on ordinary activities after taxation 12,671 10,516 21,564
Equity minority interests (557) (424) (1,016)
---------- ---------- ----------
Profit attributable to shareholders 12,114 10,092 20,548
Dividends (2,640) (2,296) (6,846)
---------- ---------- ----------
Transferred to reserves 9,474 7,796 13,702
---------- ---------- ----------
Basic earnings per ordinary share 3 10.1p 8.4p 17.1p
Diluted earnings per ordinary share 3 10.1p 8.3p 17.1p
Dividend per ordinary share 2.2p 1.9p 5.7p
Group Balance Sheet
Unaudited Unaudited Audited
at 31 May at 31 May at 30 Nov
2003 2002 2002
Note #'000 #'000 #'000
---------- ---------- ---------
Fixed assets
Tangible fixed assets 4 264,003 229,053 270,007
Investment in joint ventures
Share of gross assets 120,971 50,643 77,348
Share of gross liabilities (101,398) (34,941) (53,650)
19,573 15,702 23,698
Other investments 5 14,327 11,708 14,129
---------- ---------- ---------
297,903 256,463 307,834
---------- ---------- ---------
Current assets
Stocks 92,587 95,266 101,179
Debtors 20,615 8,581 10,072
Cash at bank and in hand 1,205 449 2,927
---------- ---------- ---------
114,407 104,296 114,178
---------- ---------- ---------
Creditors: amounts falling due
within one year (40,141) (33,227) (53,091)
---------- ---------- ---------
Net current assets 74,266 71,069 61,087
---------- ---------- ---------
Total assets less current liabilities 372,169 327,532 368,921
Creditors: amounts falling due after
more than one year (162,838) (149,610) (168,020)
Provisions for liabilities and charges (3,983) (2,772) (3,979)
Equity minority interests (2,549) (1,993) (2,605)
---------- ---------- ---------
Net assets 202,799 173,157 194,317
---------- ---------- ---------
Capital and reserves
Share capital 12,077 12,077 12,077
Other reserves 9,532 9,532 9,532
Revaluation reserve 75,642 63,824 80,191
Profit and loss account 105,548 87,724 92,517
---------- ---------- ---------
Equity shareholders' funds 6 202,799 173,157 194,317
---------- ---------- ---------
Net assets per ordinary share 167.9p 143.4p 160.9p
Gearing 82% 89% 89%
Group Cash Flow Statement
Unaudited Unaudited
6 months 6 months
to 31 May to 31 May
2003 2002
#'000 #'000
----------- ----------
Net cash inflow from operating activities 5,368 14,058
Dividends received from joint ventures 6,000 -
Returns on investments and servicing of finance (5,049) (5,210)
Taxation paid (48) (2,150)
Capital expenditure and financial investment (3,621) (19,468)
Acquisitions and disposals 10,915 2,939
Equity dividends paid (5,166) (4,317)
----------- ----------
Cash inflow/(outflow) before use of liquid resources
and financing 8,399 (14,148)
Net cash (outflow)/inflow from financing (9,956) 12,848
----------- ----------
Decrease in cash in the period (1,557) (1,300)
----------- ----------
Reconciliation of net cash flow to movement in net debt
Decrease in cash in the period (1,557) (1,300)
Cash inflow/(outflow) from change in debt 9,956 (12,848)
----------- ----------
Decrease/(increase) in net debt resulting from cash flows 8,399 (14,148)
Net debt at 30 November (173,774) (140,718)
----------- ----------
Net debt at 31 May (165,375) (154,866)
----------- ----------
Reconciliation of operating profit to net cash flow
from operating activities
Operating profit 19,328 14,150
Depreciation and amortisation of own shares 343 207
Decrease/(increase) in stocks 8,592 (1,226)
(Increase)/decrease in debtors (10,543) 1,836
Decrease in creditors (12,352) (909)
----------- ----------
Net cash inflow from operating activities 5,368 14,058
----------- ----------
Notes to the Accounts
1.Turnover and Profit Analysis
Unaudited Unaudited
6 months to 6 months to
31 May 2003 31 May 2002
Turnover Profit Turnover Profit
#'000 #'000 #'000 #'000
-------- -------- -------- --------
Rental income
Group 15,725 13,335 12,509 10,681
Share of joint ventures 5,583 4,954 2,137 1,893
Property development
Group 43,007 10,662 34,745 6,550
Share of joint ventures 1,175 35 7,000 3,925
Other activities 1,328 637 1,216 300
-------- -------- -------- --------
66,818 29,623 57,607 23,349
-------- --------
Share of operating profit of
associates 425 180
Administrative and other operating
expenses
Group (5,306) (3,381)
Share of joint ventures (44) (45)
-------- --------
Operating profit 24,698 20,103
-------- --------
2. Net Interest Payable
Unaudited Unaudited
at 31 May at 31 May
2003 2002
#'000 #'000
--------- ---------
Group 5,780 4,930
Joint ventures 2,421 1,009
Associates 120 71
--------- ---------
8,321 6,010
--------- ---------
3. Earnings Per Share
Earnings per ordinary share are calculated as follows:
(a) Basic earnings per ordinary share are calculated by dividing the profit
attributable to ordinary shareholders of #12,114,000 (2002: #10,092,000) by the
weighted average number of shares in issue during the year (excluding the shares
held for share incentive schemes which are owned by the Company) of 119,841,955
(2002: 120,302,791).
(b) As the group does not currently intend to issue shares to satisfy
outstanding share options, there will be no dilution of earnings arising from
the exercise of employee share options.
4. Tangible Fixed Assets
Investment properties included in tangible fixed assets have been stated at the
November 2002 valuation. Additions subsequent to the year end have been included
at cost.
5. Other Investments
Unaudited Unaudited
at 31 May at 31 May
2003 2002
#'000 #'000
--------- ---------
Investments in associates 7,819 5,652
Investment in own shares 508 56
Other investments 6,000 6,000
--------- ---------
14,327 11,708
--------- ---------
6. Reconciliation of Movements in Shareholders' Funds
#'000
---------
Profit attributable to shareholders 12,114
Dividends (2,640)
---------
9,474
Taxation on realisation of prior years' revaluation surpluses (992)
---------
Net additions to shareholders' funds 8,482
Shareholders' funds 30 November 2002 194,317
---------
Shareholders' funds 31 May 2003 202,799
---------
7. Other Information
(i) The abridged accounts for the year to 30 November 2002 are an extract from
the full group accounts for that period on which an unqualified report was
made by the group's auditors and which have been delivered to the Registrar
of Companies.
(ii) The results for the six months ended 31 May 2003 are prepared in accordance
with applicable accounting standards, using the same accounting policies as
set out in the group accounts for the year ended 30 November 2002.
(iii) All profits derive from continuing activities.
(iv) The interim statement was approved by the board on 21 July 2003
(v) The interim statement will be posted to all shareholders on 22 July 2003
and will be available at the Company's registered office, Lyndon House,
58/62 Hagley Road, Edgbaston, Birmingham B16 8PE, and on the Company's
website www.stmodwen.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UWSSROVRBAAR
