TIDMFPO
RNS Number : 1290U
First Property Group PLC
21 November 2019
Date: 21 November 2019
On behalf First Property Group plc ("First Property" or
of: "the Group")
Embargoed: 0700hrs
First Property Group plc
Interim Results for the six months to 30 September 2019
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 to 30 September 2019.
Financial Highlights:
-- Profit before tax up 8.0% to GBP2.98 million (2018 proforma: GBP2.76 million);
-- Diluted earnings per share up 22.5% to 2.07 pence (2018: 1.69 pence);
-- Adjusted NAV up 3.8% to 59.65 pence per share (31 March 2019: 57.48 pence per share);
-- Interim dividend up 2.3% to 0.45 pence per share (2018: 0.44 pence per share).
Operational Highlights:
-- Total assets under management GBP698 million (31 March 2019: GBP706 million);
-- Third party assets under management GBP602 million (31 March 2019: GBP611 million);
-- Weighted average unexpired fund management contract term: 5.2
years (31 March 2019: 5.8 years);
-- Approved by the Financial Conduct Authority (FCA) as
full-scope Alternative Investment Fund Manager (AIFM) enabling the
Group to raise and manage third party funds in excess of EUR500
million.
Financial Summary:
Unaudited Unaudited Unaudited Percentage Audited
Six months Six months Six months change Year to
to 30 Sept to 30 Sept to 31 March
2019 2018 PROFORMA* 30 Sept 2019
2018
---------------------------- ------------ ---------------- ------------ ----------- ----------
Income Statement:
---------------------------- ------------ ---------------- ------------ ----------- ----------
Revenue GBP8.08m GBP7.36m* GBP11.16m +9.8%* GBP20.44m
Statutory profit before GBP2.98m GBP2.76m* GBP3.82m +8.0%* GBP8.31m
tax
----------------
Diluted earnings per
share 2.07p 1.69p +22.5% 4.85p
Dividend per share 0.45p 0.44p +2.3% 1.66p
Average GBP/EUR rate 0.889 0.886 0.881
---------------------------- ------------ ---------------- ------------ ----------- ----------
* Recalculated on a Proforma basis in order to enable like for
like comparison with the current period, by treating the deconsolidated
entity Fprop Opportunities plc (FOP) as an associate rather than
a subsidiary. (See Note 2 Reconciliation and Note 3 Segmental
Analysis in the notes to the accounts).
Percentage
change
vs. 31
March
2019
---------------------------- ------------ ---------------- ------------ ----------- ----------
Balance Sheet at period
end:
---------------------------- ------------ ---------------- ------------ ----------- ----------
Adjusted net assets
per share (EPRA basis) 59.65p 62.21p +3.8% 57.48p
Cash Balances GBP8.55m GBP10.01m** -12.2% GBP9.74m
Period end GBP/EUR
rate 0.885 0.891 0.862
---------------------------- ------------ ---------------- ------------ ----------- ----------
Properties at market GBP96.3m GBP178.3m** +1.8% GBP94.6m
value
LTV of properties at
market value 70.1% 67.8% 70.4%
Associates and Investments GBP30.3m GBP20.1m +2.7% GBP29.5m
at market value
Group gearing ratio 49.9% 62.7% 50.4%
---------------------------- ------------ ---------------- ------------ ----------- ----------
**Prior to deconsolidation of Fprop Opportunities plc (FOP),
which held GBP2.03 million of cash.
Total assets under GBP698m GBP730m GBP706m
management:
-------------------- -------- -------- --------
United Kingdom 57.5% 58.0% 58.9%
Poland 40.2% 39.9% 38.9%
Romania 2.3% 2.1% 2.2%
Commenting on the results, Ben Habib, Chief Executive of First
Property Group, said:
"I am pleased to be reporting on another satisfactory six months
for the Group.
"Our profit before tax increased by 8% to GBP2.98 million,
mainly due to an increased contribution from our fund management
division and Cha ubińskiego 8 (CH8), one of the two office towers
in Warsaw owned by the Group. In view of this profit growth and the
sustainability of the Group's earnings, the directors have once
again recommended an increased interim dividend.
The occupational market for properties under our management
remains generally healthy. New investment opportunities are harder
to find at present but they always exist. As ever, I look forward
to the future with confidence."
A briefing for analysts will be held at 10:30hrs today at the
headquarters of First Property Group plc, 32 St James's Street,
London, SW1A 1HD. Participants can also attend by telephone on +44
330 336 9401, passcode 514362. A copy of the accompanying investor
presentation can be accessed simultaneously at
http://www.fprop.com/media-news/presentations/. An audio recording
of the call will subsequently be posted on the company website,
www.fprop.com/audio/.
For further information please contact:
First Property Group plc Tel: 020 7340 0270
Ben Habib (Chief Executive & Chief www.fprop.com
Investment Officer)
George Digby (Group Finance Director)
Jeremy Barkes (Director, Business
Development)
Arden Partners Tel: 020 7614 5900
John Llewellyn-Lloyd/ Ben Cryer
Newgate Communications Tel: 020 3757 6880
Robin Tozer/ Tom Carnegie firstproperty@newgatecomms.com
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 thirteen 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 comprise nine commercial properties in Poland
and Romania and non-controlling interests in ten of the thirteen
funds managed by FPAM.
Listed on AIM the Company has offices in London, Warsaw and
Bucharest. Around one third of the shares in the Company are owned
by management and their families. Further information about the
Company and its products 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 2019. Please note the 2018 income statement has been
recalculated on a "Proforma" basis to enable like for like
comparison with the current period, by treating the deconsolidated
entity Fprop Opportunities plc (FOP) as an associate rather than a
subsidiary. (See Note 2 Reconciliation and Note 3 Segmental
Analysis)
Revenue earned by the Group increased by 9.8% on a proforma
basis (following the deconsolidation of FOP) to GBP8.08 million
(2018 proforma: GBP7.36 million) yielding an 8.0% increase in
profit before tax of GBP2.98 million (2018 proforma: GBP2.76
million). The increase in profit before tax is mainly attributable
to higher contributions from the fund management division and Cha
ubińskiego 8 (CH8), one of the two office towers in Warsaw owned by
the Group.
Diluted earnings per share increased by 22.5% to 2.07 pence
(2018: 1.69 pence), more than the increase in profit before tax,
due to a lower deferred tax charge.
The Group ended the period with net assets under the cost basis
of accounting of GBP46.55 million (31 March 2019: GBP46.29
million). It is the accounting policy of the Group to carry its
properties and interests in associates at the lower of cost or
market value. The net assets of the Group when adjusted to their
market value less any deferred tax liabilities (EPRA basis)
increased by 3.3% from the financial year-end to GBP67.68 million
(31 March 2019: GBP65.51 million).
Group cash balances at the period end stood at GBP8.55 million
(30 September 2018: GBP10.01 million, of which GBP2.03 million was
held by FOP [since deconsolidated]). Capital expenditure on the
nine directly owned Group properties which was not recoverable from
tenants amounted to GBP0.78 million (2018: GBP0.58 million), of
which some GBP0.7 million was incurred on Cha ubińskiego 8 (CH8).
In addition, the Group purchased 500,000 of its own Ordinary Shares
for a total consideration of GBP214,000. These are now held in
treasury.
Dividend:
The Directors have resolved to increase the interim dividend by
2.3% to 0.45 pence per share (2018: 0.44 pence per share) which
will be paid on 3 January 2020 to shareholders on the register at
29 November 2019, with an ex-dividend date of 28 November 2019.
Review of Operations:
PROPERTY FUND MANAGEMENT (First Property Asset Management Ltd or
FPAM)
Third party assets under management reduced by 1.6% since the
financial year-end to GBP602 million (31 March 2019: GBP611
million). The decrease was primarily attributable to the sale of
one property in the UK on behalf of the fund managed for SIPS. Some
67% of third party assets under management were located in the UK,
32% in Poland, and 1% in Romania.
Fund management fees are generally levied monthly by FPAM by
reference to the value of properties under management. In the case
of Fprop Offices LP, the Group is entitled to a share of total
profits in lieu of fund management fees and to receive annual
payments on account equivalent to 10% of total cumulative income
profits and realised capital gains. Under its accounting policy the
Group will not recognise unrealised property revaluations above the
properties' original cost. These payments are adjusted annually, if
necessary, for any overpayments made in previous years up to a
maximum of total past cumulative payments received.
Revenue earned by this division increased by 11.5% to GBP2.03
million (2018 proforma: GBP1.82 million), resulting in profit
before unallocated central overheads and tax increasing by 25.0% to
GBP1.00 million (2018: GBP0.80 million), representing 24.4% of
Group profit before unallocated central overheads and tax (2018
proforma: 20.0%). The increase in revenue and profit earned by this
division is mainly due to accrued contributions of GBP247,000 from
Fprop Offices LP (2018: GBPnil). Future entitlements to payment in
respect of this fund are being earned at a rate of some GBP750,000
- GBP950,000 per annum before property revaluations and thus act as
a buffer against possible refund liabilities in the future.
At the period end FPAM's fund management fee income, excluding
performance fees and the profit share from Fprop Offices LP, was
being earned at an annualised rate of GBP3.56 million (31 March
2019: GBP3.34 million).
FPAM's weighted average unexpired fund management contract term
at the period end was 5.2 years (2018: 6.3 years).
On 1 November 2019 FPAM's application to be a full scope
Alternative Investment Fund Manager (AIFM) was approved by the
Financial Conduct Authority (FCA), enabling the Group to raise and
manage third party funds in excess of EUR500 million.
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 April 2019 416.0 195.1 611.1 71
----------------------- -------- -------- -------- ----------
Purchases - - - -
New fund mandates - - - -
Property sales (8.0) - (8.0) (1)
Capital expenditure 1.2 0.2 1.4 -
Property depreciation - (0.2) (0.2) -
Property revaluation (7.7) (0.2) (7.9) -
FX revaluation - 5.1 5.1 -
As at 30 Sept 2019 401.5 200.0 601.5 70
----------------------- -------- -------- -------- ----------
At the period end FPAM managed 12 (2018: 12) closed-end third
party funds. A brief synopsis of the value of assets and maturity
of each of these vehicles is set out below:
Fund Country Fund % of total Assets under Assets under
of investment expiry assets management management
under management at market at market
value at value at
30 Sept 30 Sept
2019 2018
------------ ---------------- ---------- ------------------ ------------- -------------
%age GBPm GBPm
SAM & DHOW UK Rolling - * *
5PT Poland Dec 2022 1.3 8.1 8.2
UK PPP UK Feb 2022 14.0 84.2 92.0
SIPS UK Jan 2025 25.2 151.6 166.3
Sept
FRS Romania 2025 0.2 1.1 2.5
FGC Poland Aug 2024 3.7 22.2 22.2
FKR Poland Apr 2024 3.9 23.6 23.4
SPEC OPPS UK Jan 2027 3.2 19.1 19.1
June
OFFICES UK 2024 24.4 146.5 145.8
June
FPL Poland 2028 10.6 63.7 64.0
June
FCL Romania 2028 1.3 7.9 7.9
FOP Poland Oct 2025 12.2 73.5 -
Total 100.0 601.5 551.4
------------------------------------------ ------------------ ------------- -------------
* Not subject to recent revaluation
GROUP PROPERTIES
At the period end Group Properties comprised:
1. Nine directly owned commercial properties in Poland and
Romania which are accounted for under the cost model as set out in
the table below:
Country Sector No. of Book Market Contribution Contribution
properties value value to Group to Group
profit before profit before
tax tax
period to period to
30 Sept 30 Sept
2019* 2018*
--------- -------------- ------------ ------- ------- --------------- ---------------
GBPm GBPm GBPm GBPm
Poland Offices 3 72.5 83.9 2.6 2.0
Convenience
Poland retail 4 5.2 5.5 0.1 0.0
Office
Romania & logistics 2 4.2 6.9 0.1 0.1
Total 9 81.9 96.3 2.8 2.1
------------------------- ------------ ------- ------- --------------- ---------------
*Prior to the deduction of direct overhead and unallocated
central overhead expenses.
2. Non-controlling interests in ten of the thirteen funds
managed by FPAM of which seven are accounted for as Associates
under the cost model and three are accounted for as Investments in
funds:
Fund % owned Book value Current Group's PROFORMA
by of First market share Group's
First Property's value of of post-tax share
Property share in holdings profits of post-tax
Group fund earned by profits
fund earned by
30 Sept fund
2019 30 Sept
2018
--------------- ---------- ------------ ---------- ------------- -------------
%age GBP'000 GBP'000 GBP'000 GBP'000
--------------- ---------- ------------ ---------- ------------- -------------
a) Associates
5PT 37.8% 1,053 1,206 73 25
RPT/E AND
S - - - - (9)*
FRS 24.1% 161 268 11 275
FOP 40.0% 10,572 10,722 751 720
FGC 28.2% 2,214 2,530 156 168
FKR 18.1% 1,379 1,910 97 85
FPL 23.4% 2,057 9,909 8 (59)
FCL 17.4% 501 480 43 (2)
--------------- ---------- ------------ ---------- ------------- -------------
Sub Total 17,937 27,025 1,139 1,203
--------------------------- ------------ ---------- ------------- -------------
b) Investments
UK PPP 0.9% 799 799 33 29
SPEC OPPS 4.8% 553 553 32 20
OFFICES 1.6% 1,954 1,954 67 108
----------- ----- ------ ------ ---- ----
Sub Total 3,306 3,306 132 157
------------------ ------ ------ ---- ----
Total 21,243 30,331 1,271 1,360
------- ------- ------- ------ ------
* Representing the Group's share of the loss from its associate
share in RPT/E AND S prior to its consolidation into the Group's
accounts on 1 August 2018.
Revenue from Group Properties increased by 9.2% to GBP6.05
million (2018 proforma: GBP5.54 million), generating a profit
before unallocated central overheads and tax of GBP3.10 million
(2018 proforma: GBP3.20 million) and representing 75.6% (2018
proforma: 80.0%) of Group profit before unallocated central
overheads and tax. Of this, GBP1.83 million (2018 proforma: GBP1.84
million) was contributed by the Group's nine directly owned
properties and GBP1.27 million (2018 proforma: GBP1.36 million) was
contributed by the Group's non-controlling interests in ten of its
thirteen funds. The reduction in profit from the Group's
non-controlling interests in funds was mainly attributable to the
non-repeat of profit on sale (2018: GBP216,000) by an Associate
(Fprop Romanian Supermarkets).
The yield (annualised net operating income divided by market
value) of all nine directly owned properties is some 10%. Total
gross debt secured against them amounted to GBP67.5 million (31
March 2019: GBP66.7 million). Interest expense in the first half in
respect of them amounted to some GBP0.67 million. The current
weighted average borrowing cost is 1.84% (31 March 2019: 2.15%) per
annum. In order to mitigate the effects of potential interest rate
rises, we have fixed the interest rate on some 42% of the loans by
value. A one percentage point increase from current interest rates
on the balance of the loan interest which is not fixed would
increase the Group's interest bill by GBP460,000 per annum (31
March 2019: GBP485,000).
Loan repayments in respect of the nine directly owned properties
in the first half amounted to some GBP2.75 million.
A summary of the three largest directly owned properties is
below:
1. Cha ubińskiego 8, Warsaw (CH8, value circa EUR40 million) -
prime location in Warsaw's central business district, some 300
metres from Warsaw's central station. In recent years the property
has benefitted from capital expenditure to upgrade the lobby, the
mechanical and electrical equipment and thirteen of the eighteen
floors owned by the Group. The property is now around 80% let
(2018: circa 60% let). Net operating income is being earned at an
annualised rate of EUR1.3 million (2018: EUR0.7 million) and should
rise to some EUR3.2 million once fully let;
2. Prokom Building, Gdnyia (net book value circa EUR30 million)
- has been let to Warsaw Stock Exchange listed Asseco since it was
first built in 2005. It contributes some EUR2.6 million per annum
to Group profit before tax Asseco's lease is scheduled to expire on
28 October 2020. It is no longer in full occupation of the building
and has sub-let some of it. We have begun negotiations to re-lease
the property, some of which we would hope to conclude prior to the
end of the current lease period. However, it is likely that there
will be some vacancy from November 2020, with a consequent
reduction in operating income generated by the property, until all
the vacant space can be re-leased;
3. Blue Tower, Warsaw (value circa EUR25 million) - prime
location in Warsaw's central business district. The Group owns 48%
of the tower and 90% of Corp Sp. z o.o., the company which is
constitutionally tied to manage the building. The Group's 48% share
is virtually fully let. In recent years the property has benefited
from capital expenditure to upgrade the ground floor reception and
retail area and all of the fifteen floors owned by the Group. Net
operating income is being earned at an annualised rate of some
EUR1.83 per annum (2018: EUR1.74 million).
Commercial Property Markets Outlook
Poland:
GDP continues to grow at some 3.5% per annum or more.
The scale of commercial property development which has
accompanied this economic growth has resulted in pressure on rents
and capital values. There are signs, however, that the balance of
pricing power may be changing in favour of landlords in some
sub-sectors, such as offices in Warsaw, where take-up has exceeded
supply for some time now.
Investor demand for commercial property remains high with
volumes expected to finish 2019 at around EUR7 billion (2018:
EUR7.1 billion).
Banking terms for commercial property loans are comparable to
those obtainable in Western Europe.
Romania:
GDP growth is expected to slow in 2019 to 4.1% per annum, and to
slow further still in 2020 and 2021 to around 3.5% per annum.
The occupier market is growing with the economy but, as in
Poland, rental growth remains elusive given the scale of new
development.
Investor demand for commercial property continues to improve but
volumes remain below larger peers in CEE. Around EUR1 billion of
commercial property is expected to transact in 2019, as it did in
2018. Bank lending margins continue to be under downward pressure,
which should boost investment demand for commercial property
(although bank appetite for long exposures remains low). Some
regional cities are starting to become more attractive for
secondary market investors with Cluj-Napoca leading the pack.
United Kingdom:
GDP growth has slowed to an annualised rate of around 0.5%, not
helped by political uncertainty.
The commercial property market generated total returns of only
1.9% in the year to 30 September, mainly due to a reduction in
capital values in the retail sector. However, secondary older
office buildings are performing well because they are diminishing
in number as conversions to residential use take place, which is
leading to rental growth.
Total transaction volumes over the same period are around a
third lower compared to the previous year. Our sense is that a
standoff exists between buyers, who require a discount in
compensation for political uncertainty, and sellers who are
generally unwilling to sell at such prices.
We remain broadly positive about the prospects of the UK
commercial property market.
Current Trading and Prospects
I am pleased to be reporting on another satisfactory six months
for the Group.
Our profit before tax increased by 8% to GBP2.98 million, mainly
due to an increased contribution from our fund management division
and Cha ubińskiego 8 (CH8), one of the two office towers in Warsaw
owned by the Group. In view of this profit growth and the
sustainability of the Group's earnings, the directors have once
again recommended an increased interim dividend.
The occupational market for properties under our management
remains generally healthy. New investment opportunities are harder
to find at present but they always exist. As ever, I look forward
to the future with confidence.
Ben Habib
Chief Executive
21 November 2019
CONSOLIDATED INCOME STATEMENT
for the six months to 30 September 2019
Notes Six months Six months Six months Year to
to 30 Sept to 30 Sept to
2019 2018 PROFORMA*
(unaudited) 30 Sept 31 Mar
2018 2019
(unaudited) (audited)
-------------------------------- ------ -------------- ---------------- -------------- --------------
Total results Total results Total results Total results
-------------------------------- ------ -------------- ---------------- -------------- --------------
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 8,077 7,356 11,157 20,437
-------------------------------- ------ -------------- ---------------- -------------- --------------
Cost of sales (1,705) (1,469) (2,452) (4,491)
Gross profit 6,372 5,887 8,705 15,946
Profit on sale of 'FOP'
shares - 32 32 64
Gain on loss of control
of subsidiary - - - 4,827
Write down/ impairment
loss to an investment
property 7 - - 32 (2,984)
Impairment of goodwill
on acquisition - (27) (27) (27)
Loss on disposal of subsidiary - (5) (5) (5)
Operating expenses (4,006) (3,804) (4,110) (9,320)
Operating profit 2,366 2,083 4,627 8,501
Share of results in associates 8 1,139 1,203 483 1,600
Investment income 132 157 157 273
Interest income 4 42 17 47 114
Interest expense 4 (696) (703) (1,495) (2,180)
Profit before tax 2,983 2,757 3,819 8,308
Tax charge 5 (613) (817) (1,052) (1,943)
-------------------------------- ------ -------------- ---------------- -------------- --------------
Profit for the period 2,370 1,940 2,767 6,365
Attributable to:
Owners of the parent 2,350 1,924 1,924 5,514
Non-controlling interests 20 16 843 851
2,370 1,940 2,767 6,365
Earnings per share
Basic 6 2.11p 1.73p 1.73p 4.95p
Diluted 6 2.07p 1.69p 1.69p 4.85p
-------------------------------- ------ -------------- ---------------- -------------- --------------
* Recalculated on a Proforma basis in order to enable like for
like comparison with the current period, by treating the
deconsolidated entity Fprop Opportunities plc (FOP) as an associate
rather than a subsidiary. (See Note 2 Reconciliation and Note 3
Segmental Analysis).
All operations are continuing.
CONDENSED CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
for the six months to 30 September 2019
Six months Six months Six months Year to
to 30 Sept to 30 Sept to 31 Mar
2019 2018 30 Sept 2019
2018
(unaudited) PROFORMA* (unaudited) (audited)
--------------------------------------- -------------- -------------- -------------- --------------
Total results Total results Total results Total results
--------------------------------------- -------------- -------------- -------------- --------------
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------------- -------------- -------------- -------------- --------------
Profit for the period 2,370 1,940 2,767 6,365
--------------------------------------- -------------- -------------- -------------- --------------
Other comprehensive income
--------------------------------------- -------------- -------------- -------------- --------------
Items that may subsequently
be reclassified to profit
or loss
--------------------------------------- -------------- -------------- -------------- --------------
Exchange differences on retranslation
of foreign subsidiaries (451) (1,329) (1,453) (1,784)
--------------------------------------- -------------- -------------- -------------- --------------
Foreign exchange profit recycled
to the Income Statement on
disposal - - - (721)
--------------------------------------- -------------- -------------- -------------- --------------
Net gain/(loss) on financial
assets at fair value through
Other Comprehensive Income (52) - - 29
--------------------------------------- -------------- -------------- -------------- --------------
Taxation - - - -
--------------------------------------- -------------- -------------- -------------- --------------
Total comprehensive income
for the period 1,867 611 1,314 3,889
--------------------------------------- -------------- -------------- -------------- --------------
Total comprehensive income
for the period attributable
to:
Owners of the parent 1,847 595 595 3,414
--------------------------------------- -------------- -------------- -------------- --------------
Non-controlling interests 20 16 719 475
--------------------------------------- -------------- -------------- -------------- --------------
1,867 611 1,314 3,889
--------------------------------------- -------------- -------------- -------------- --------------
* Recalculated on a Proforma basis in order to enable like for
like comparison with the current period, by treating the
deconsolidated entity Fprop Opportunities plc (FOP) as an associate
rather than a subsidiary. (See Note 2 Reconciliation and Note 3
Segmental Analysis).
All operations are continuing.
CONDENSED CONSOLIDATED BALANCE SHEET
as at 30 September 2019
Notes As at As at As at
30 Sept 31 Mar 30 Sept
2019 (unaudited) 2019 (audited) 2018 (unaudited)
------------------------------- ------ ------------------ ---------------- ------------------
GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill 153 153 153
Investment properties 7 67,956 67,348 137,062
Property, plant and equipment 61 58 50
Interest in associates 8a 17,937 17,054 5,993
Other financial assets
at fair value through
OCI 8b 3,306 3,539 3,543
Other receivables 9 1,133 1,312 1,574
Deferred tax assets 2,828 2,779 4,417
------------------------------- ------ ------------------ ---------------- ------------------
Total non-current assets 93,374 92,243 152,792
Current assets
Inventories - land and
buildings 15,025 14,817 15,505
Current tax assets 29 28 59
Trade and other receivables 9 4,890 5,918 4,714
Cash and cash equivalents 8,553 9,738 10,009
------------------------------- ------ ------------------ ---------------- ------------------
Total current assets 28,497 30,501 30,287
Current liabilities
Trade and other payables 10 (4,923) (7,078) (5,627)
Financial liabilities 11a (6,749) (6,329) (10,057)
Current tax liabilities (193) (80) (326)
------------------------------- ------ ------------------ ---------------- ------------------
Total current liabilities (11,865) (13,487) (16,010)
------------------------------- ------ ------------------ ---------------- ------------------
Net current assets 16,632 17,014 14,277
------------------------------- ------ ------------------ ---------------- ------------------
Total assets less current
liabilities 110,006 109,257 167,069
------------------------------- ------ ------------------ ---------------- ------------------
Non-current liabilities
Financial liabilities 11b (60,745) (60,348) (112,095)
Deferred tax liabilities (2,712) (2,623) (4,210)
Net assets 46,549 46,286 50,764
------------------------------- ------ ------------------ ---------------- ------------------
Equity
Called up share capital 1,166 1,166 1,166
Share premium 5,791 5,791 5,790
Share-based payment reserve 179 179 203
Foreign exchange translation
reserve (1,180) (731) 69
Purchase of own shares
reserve (2,462) (2,248) (2,291)
Investment revaluation
reserve (93) (41) (70)
Retained earnings 43,046 42,056 38,955
------------------------------- ------ ------------------ ---------------- ------------------
Equity attributable to
the owners of the parent 46,447 46,172 43,822
Non-controlling interests 102 114 6,942
------------------------------- ------ ------------------ ---------------- ------------------
Total equity 46,549 46,286 50,764
------------------------------- ------ ------------------ ---------------- ------------------
Net assets per share 6 41.90p 41.46p 39.39p
------------------------------- ------ ------------------ ---------------- ------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months to 30 September 2019
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
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
At 1 April 2018 1,166 5,789 203 1,398 (95) (70) 38,344 6,187 52,922
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
Profit for the
period - - - - - - 2,767 - 2,767
Net gain/ (loss) - - - - - - - - -
on financial
assets at fair
value through
other
comprehensive
income
Movement on
foreign
exchange - - - (1,329) - - - (124) (1,453)
Total
Comprehensive
Income - - - (1,329) - - 2,767 (124) 1,314
Change in
proportion held
by
non-controlling
interests - - - - - - - 58 58
Sale of treasury
shares - 1 - - 5 - - - 6
Purchase of
treasury shares - - - - (2,201) - - - (2,201)
Non-controlling
interests - - - - - - (843) 843 -
Dividends paid - - - - - - (1,313) (22) (1,335)
At 30 Sept 2018 1,166 5,790 203 69 (2,291) (70) 38,955 6,942 50,764
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
Profit for the
period - - - - - - 3,598 - 3,598
Net gain/ (loss)
on financial
assets at fair
value through
other
comprehensive
income - - - - - 29 - - 29
Foreign exchange
profit recycled - - - (721) - - - - (721)
Movement on
foreign
exchange - - - (79) - - - (252) (331)
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
Total
Comprehensive
Income - - - (800) - 29 3,598 (252) 2,575
Change in
proportion held
by
non-controlling
interests - - - - - - - 1,015 1,015
Deconsolidation
of FOP - - - - - - - (7,598) (7,598)
Sale of treasury
shares - 1 - - 5 - - - 6
Exercise of
share options - - (24) - 38 - - - 14
Non-controlling
interests - - - - - - (8) 8 -
Dividends paid - - - - - - (489) (1) (490)
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
At 1 April 2019 1,166 5,791 179 (731) (2,248) (41) 42,056 114 46,286
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
Profit for the
period - - - - - - 2,370 - 2,370
Net gain/ (loss)
on financial
assets at fair
value through
other
comprehensive
income - - - - - (52) - - (52)
Movement on
foreign
exchange - - - (449) - - - (2) (451)
Total
Comprehensive
Income - - - (449) - (52) 2,370 (2) 1,867
Purchase of
treasury shares - - - - (214) - - - (214)
Non-controlling
interests (20) 20 -
Dividends paid - - - - - - (1,360) (30) (1,390)
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
At 30 Sept 2019 1,166 5,791 179 (1,180) (2,462) (93) 43,046 102 46,549
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
for the six months to 30 September 2019
Notes Six months Six months Year to
to to 30 Sept
2018 (unaudited)
30 Sept 31 Mar
2019 (unaudited) 2019
(audited)
------------------------------------------ ------ ------------------- ------------------ ------------
GBP'000 GBP'000 GBP'000
------------------------------------------ ------ ------------------- ------------------ ------------
Cash flows from operating activities
Operating profit 2,366 4,627 8,501
Adjustments for:
Depreciation of investment
property, and property, plant
& equipment 1,057 1,177 5,167
Profit on the sale of 'FOP'
shares - (32) (64)
Gain on loss of control of
subsidiary - - (4,827)
(Reversal of impairment loss)/impairment
loss to investment properties - (32) (32)
Impairment of goodwill on business
acquisition - 27 27
Loss on disposal of subsidiary - 5 5
(Increase)/decrease in inventories (48) 35 96
(Increase)/decrease in trade
and other receivables 1,301 728 (1,285)
(Decrease)/increase in trade
and other payables (2,193) (2,441) (187)
Other non-cash adjustments 153 3 599
Cash generated from operations 2,636 4,097 8,000
Income taxes paid (473) (614) (1,268)
------------------------------------------ ------ ------------------- ------------------ ------------
Net cash flow from operating
activities 2,163 3,483 6,732
------------------------------------------ ------ ------------------- ------------------ ------------
Cash flow (used in)/from investing
activities
Capital expenditure on investment
properties 7 (777) (586) (1,531)
Proceeds from partial disposal
of financial assets held at
fair value through Other Comprehensive
Income 8a 256 93 549
Purchase of property, plant
and equipment (6) (4) (36)
Proceeds from the sale of 'FOP'
shares - 149 2,630
Cash paid on acquisition of
new subsidiaries - (527) (527)
Cash and cash equivalents received
on acquisitions of new subsidiaries - 421 421
Cash disposed following deconsolidation
of subsidiaries - - (2,046)
Investment in funds - (464) (468)
Proceeds from funds 8b 218 537 569
Investment in shares of new
associates - (460) (527)
Payment for Rights Issue 5PT - (138) (138)
Interest received 4 42 47 114
Dividends from associates 8a - 506 590
Distributions received 95 157 273
Net cash flow (used in)/from
investing activities (172) (269) (127)
------------------------------------------ ------ ------------------- ------------------ ------------
Cash flow (used in)/from financing
activities
Net repayment of shareholder
loan in subsidiary - (121) (121)
Proceeds from bank loan 1,769 - -
Repayment of bank loans (1,458) (1,656) (3,179)
Repayment of finance lease (1,291) (1,819) (3,065)
Repayment from the sale of
'FOP' shareholder loan - 21 326
Purchase of new treasury shares (214) (2,201) (2,201)
Sale of shares held in Treasury - 6 12
Exercise of share options - - 47
Interest paid (656) (1,419) (2,180)
Dividends paid (1,360) (1,313) (1,802)
Dividends paid to non-controlling
interests (30) (22) (23)
------------------------------------------ ------ ------------------- ------------------ ------------
Net cash flow (used in)/from
financing activities (3,240) (8,524) (12,186)
Net (decrease)/increase in
cash and cash equivalents (1,249) (5,310) (5,581)
------------------------------------------ ------ ------------------- ------------------ ------------
Cash and cash equivalents at
the beginning of period 9,738 15,315 15,315
------------------------------------------ ------ ------------------- ------------------ ------------
Currency translation gains/(losses)
on cash and cash equivalents 64 4 4
------------------------------------------ ------ ------------------- ------------------ ------------
Cash and cash equivalents at
the end of the period 8,553 10,009 9,738
------------------------------------------ ------ ------------------- ------------------ ------------
NOTES TO THE ACCOUNTS
for the six months ended 30 September 2019
1. Basis of Preparation
-- These interim consolidated financial statements for the six
months ended 30 September 2019 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 2019 and are in compliance with IAS 34 "Interim Financial
Reporting". These accounting policies are drawn up in accordance
with International Accounting Standards (IAS) and International
Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board and as adopted by the European Union
(EU).
-- The comparative figures for the financial year ended 31 March
2019 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 20 November 2019.
2. Reconciliation of prior period to Proforma Income Statement
and Proforma Statement of Comprehensive Income (6 months to 30
September 2018)
Original Less: Add: Adjustment: PROFORMA
-------------------------------- ----------- ----------- ----------------- -------------- -----------
6 months 'FOP' Reinstate 'FOP' 6 months
to 30 (per 'FOP' Contribution to 30
September published Asset as an September
2018 segment) Management Associate 2018
fee elimination
-------------------------------- ----------- ----------- ----------------- -------------- -----------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- ----------- ----------- ----------------- -------------- -----------
Revenue 11,157 4,070 269 - 7,356
Cost of sales (2,452) (983) - - (1,469)
-------------------------------- ----------- ----------- ----------------- -------------- -----------
Gross profit 8,705 3,087 269 - 5,887
Profit on sale of 'FOP'
shares 32 - - - 32
Write down/impairment
loss to investment property 32 32 - - -
Impairment of goodwill
on acquisition of subsidiary (27) - - - (27)
Loss on disposal of subsidiary (5) - - (5)
Operating expenses (4,110) (575) (269) - (3,804)
-------------------------------- ----------- ----------- ----------------- -------------- -----------
Operating profit (4,627) 2,544 - - 2,083
-------------------------------- ----------- ----------- ----------------- -------------- -----------
Share of results in associates 483 - - 720 1,203
Investment income 157 - - - 157
Interest income 47 30 - - 17
Interest expense (1,495) (792) - - (703)
-------------------------------- ----------- ----------- ----------------- -------------- -----------
Profit before tax 3,819 1,782 - 720 2,757
Tax charge
* Current tax (752) (240) - - (512)
* Deferred tax (300) 5 - - (305)
-------------------------------- ----------- ----------- ----------------- -------------- -----------
1,052 (235) - - (817)
-------------------------------- ----------- ----------- ----------------- -------------- -----------
Profit after tax for the
period 2,767 1,547 - 720 1,940
-------------------------------- ----------- ----------- ----------------- -------------- -----------
Attributable to:
Owners of the parent 1,924 720 - 720 1,924
Non-controlling interests 843 827 - - 16
-------------------------------- ----------- ----------- ----------------- -------------- -----------
2,767 1,547 - 720 1,940
-------------------------------- ----------- ----------- ----------------- -------------- -----------
Other comprehensive income
Exchange differences on
retranslation of foreign
subsidiaries (1,453) (124) - - (1,329)
Foreign exchange profit - - - - -
recycled to the Income
Statement on disposal
Net gain/(loss) on financial - - - - -
assets at fair value through
Other Comprehensive Income
Taxation - - - - -
-------------------------------- ----------- ----------- ----------------- -------------- -----------
Total comprehensive income
for the period 1,314 1,423 - 720 611
-------------------------------- ----------- ----------- ----------------- -------------- -----------
Total comprehensive income for the period
attributable to:
---------------------------------------------------------- ----------------- -------------- -----------
Owners of the parent 595 720 - 720 595
Non-controlling interests 719 703 - - 16
-------------------------------- ----------- ----------- ----------------- -------------- -----------
1,314 1,423 - 720 611
-------------------------------- ----------- ----------- ----------------- -------------- -----------
Reconciliation for adjustment to Share of results in
associates:
PROFORMA
------------------------------------------------------ -------- -----------
6 months
to 30
September
2018
------------------------------------------------------ -------- -----------
GBP'000 GBP'000
------------------------------------------------------ -------- -----------
Share of results in associates 483
Adjustments for:
'FOP' profit before tax for 6 months to 30 September
2018 (per Note 3 Segmental Analysis) 1,782
Tax expense attributable to 'FOP' (235)
--------
Profit after tax 1,547
Less:
'FOP' non-controlling interests for 6 months
ended 30 September 2018 (827)
--------
720
------------------------------------------------------ -------- -----------
Share of results in associates on a Proforma
basis 1,203
------------------------------------------------------ -------- -----------
3. Segmental Analysis
Segment reporting for the six months to 30 September 2019
Direct costs incurred by First Property Group plc relating to
the cost of the Board and the related share listing costs are shown
separately under unallocated central costs. The staff incentive
accrual is included under unallocated central costs but will be
reallocated across all segments at the year end.
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 - 5,484 - - 5,484
Service charge
income - 567 - - 567
Asset management
fees 1,779 - - - 1,779
Performance related
fee income 247 - - - 247
-------------------------- ----------------- ------------ ----------------- ------------ --------
Total revenue 2,026 6,051 - - 8,077
-------------------------- ----------------- ------------ ----------------- ------------ --------
Depreciation and
amortisation (15) (899) - - (914)
-------------------------- ----------------- ------------ ----------------- ------------ --------
Operating profit 1,003 2,492 - (1,129) 2,366
Share of results
in associates - - 1,139 - 1,139
Investment income - - 132 - 132
Interest income - 36 - 6 42
Interest expense - (696) - - (696)
Profit/(loss) before
tax 1,003 1,832 1,271 (1,123) 2,983
-------------------------- ----------------- ------------ ----------------- ------------ --------
Analysed as:
Underlying profit/loss
before tax before
adjusting for the
following items: 748 2,853 1,271 (476) 4,396
Write down, impairment - - - - -
loss/reversals
Profit on the sale - - - - -
of 'FOP' shares
Goodwill write - - - - -
off on acquisition
of associates
Group's share of - - - - -
revaluation losses
on associates
Gain on loss of - - - - -
control of subsidiary
Performance related
fee income 247 - - - 247
Depreciation on
investment property - (879) - - (879)
Staff incentives - - - (656) (656)
Realised foreign
currency (losses)/gains 8 (142) - 9 (125)
Profit/(loss) before
tax 1,003 1,832 1,271 (1,123) 2,983
-------------------------- ----------------- ------------ ----------------- ------------ --------
Revenue for the six months to 30 September 2019 from continuing
operations consists of revenue arising in the United Kingdom 12%
(2018: 10%) and Central and Eastern Europe 88% (2018: 90%) and all
relates solely to the Group's principal activities.
Segment reporting for the six months to 30 September 2018
(PROFORMA)
The proforma figures for the six months ended 30 September 2018
have included the removal of FOP as a separate segment and replaced
it with a new segment entitled 'Associates and investments'. The
new segment includes the percentage share of FOP had it been
accounted for as an associate for the first six months 30 September
2018 together with the Group's interests in associates and
distribution income from its other investments (both previously
included within Group Properties). The intercompany elimination of
FOP's asset management charge has been reversed for the proforma
period.
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 - 5,020 - - 5,020
Service charge
income - 515 - - 515
Asset management
fees 1,743 - - - 1,743
Performance related
fee income 78 - - - 78
-------------------------- ----------------- ------------ ----------------- ------------ --------
Total revenue 1,821 5,535 - - 7,356
-------------------------- ----------------- ------------ ----------------- ------------ --------
Depreciation and
amortisation (19) (964) - - (983)
-------------------------- ----------------- ------------ ----------------- ------------ --------
Operating profit 798 2,522 - (1,237) 2,083
Share of results
in associates - - 1,203 - 1,203
Investment income - - 157 - 157
Interest income - 15 - 1 16
Interest expense - (702) - - (702)
Profit/(loss) before
tax 798 1,835 1,360 (1,236) 2,757
-------------------------- ----------------- ------------ ----------------- ------------ --------
Analysed as:
Underlying profit/loss
before tax before
adjusting for the
following items: 720 2,939 1,144 (498) 4,305
Write down, impairment - - - -
loss/reversals
Profit on the sale
of 'FOP' shares - 32 - - 32
Goodwill write
off on acquisition
of associates - (27) - - (27)
Group's share of
revaluation gains
on associates - 216 - 216
Gain on loss of
control of subsidiary - (5) - - (5)
Performance related
fee income 78 - - - 78
Depreciation on
investment property - (874) - - (874)
Staff incentives - - - (735) (735)
Realised foreign
currency (losses)/gains - (230) - (3) (233)
Profit/(loss) before
tax 798 1,835 1,360 (1,236) 2,757
-------------------------- ----------------- ------------ ----------------- ------------ --------
Segment reporting six months to 30 September 2018 (as originally
reported)
Fund Management Group Properties Division
Division
--------------------- --------------------- --------------------------------------- --------------------- --------
Property Group properties Group fund Unallocated central TOTAL
fund management properties ('FOP') overheads
--------------------- --------------------- ----------------- -------------------- --------------------- --------
GBP000 GBP000 GBP000 GBP'000 GBP'000
Rental income - 5,020 3,272 - 8,292
Service charge
income - 515 798 - 1,313
Asset management
fees 1,474 - - - 1,474
Performance related
fee income 78 - - - 78
Total Revenue 1,552 5,535 4,070 - 11,157
Depreciation and
amortisation (19) (964) (194) - (1,177)
--------------------- --------------------- ----------------- -------------------- --------------------- --------
Operating profit 798 2,522 2,544 (1,237) 4,627
Share of results in
associates - 483 - - 483
Investment income - 157 - - 157
Interest income - 15 31 1 47
Interest expense - (702) (793) - (1,495)
--------------------- --------------------- ----------------- -------------------- --------------------- --------
Profit/(loss) before
tax 798 2,475 1,782 (1,236) 3,819
--------------------- --------------------- ----------------- -------------------- --------------------- --------
Analysed as:
Underlying
profit/(loss)
before tax before
adjusting for the
following items: 720 3,363 1,798 (498) 5,383
Profit on the sale
of 'FOP' shares - 32 - - 32
Goodwill on
acquisition of
associates - (27) - - (27)
Group's share of
revaluation gains
on associates - 216 - - 216
Loss on loss of
control of
subsidiary - (5) - - (5)
Reversal of
impairment loss to
investment
properties - - 32 - 32
Performance related
fee income 78 - - - 78
Depreciation on
investment property - (874) - - (874)
Staff incentives - - - (735) (735)
Realised foreign
currency
(losses)/gains - (230) (48) (3) (281)
Profit/(loss) before
tax 798 2,475 1,782 (1,236) 3,819
--------------------- --------------------- ----------------- -------------------- --------------------- --------
Segment reporting year to 31 March 2019
Fund Management Group Properties
Division Division
-------------------------- ----------------- ------------------------------- ------------ ---------
Property Group Group Unallocated TOTAL
fund management properties fund properties central
('FOP') overheads
-------------------------- ----------------- ------------ ----------------- ------------ ---------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Rental income - 9,658 3,272 - 12,930
Service charge
income - 1,748 798 - 2,546
Asset management
fees 3,420 - - - 3,420
Performance related
fee income 1,541 - - - 1,541
-------------------------- ----------------- ------------ ----------------- ------------ ---------
Total revenue 4,961 11,406 4,070 - 20,437
-------------------------- ----------------- ------------ ----------------- ------------ ---------
Depreciation and
amortisation (37) (1,991) (200) - (2,228)
-------------------------- ----------------- ------------ ----------------- ------------ ---------
Operating profit 3,031 2,048 6,136 (2,714) 8,501
Share of results
in associates - 1,687 (87) - 1,600
Investment income - 273 - - 273
Interest income - 78 31 5 114
Interest expense - (1,387) (793) - (2,180)
Profit/(loss) before
tax 3,031 2,699 5,287 (2,709) 8,308
-------------------------- ----------------- ------------ ----------------- ------------ ---------
Analysed as:
Underlying profit/(loss)
before tax before
adjusting for the
following items: 1,981 7,467 2,058 (1,012) 10,494
Write down, impairment
(losses)/reversals - (3,043) 32 - (3,011)
Profit on the sale
of 'FOP' shares - 64 - - 64
Group's share of
revaluation losses
on associates - - (764) - (764)
Gain on loss of
control of subsidiary - 606 4,221 - 4,827
Performance related
fee income 1,541 - - - 1,541
Depreciation on
investment property - (1,740) - - (1,740)
Staff incentives (476) (190) (212) (1,669) (2,547)
Realised foreign
currency (losses)/gains (15) (465) (48) (28) (556)
Total 3,031 2,699 5,287 (2,709) 8,308
-------------------------- ----------------- ------------ ----------------- ------------ ---------
Assets - Group 1,630 98,118 - 5,942 105,690
Share of net assets
of associates - 17,362 - (308) 17,054
Liabilities (398) (74,254) - (1,806) (76,458)
-------------------------- ----------------- ------------ ----------------- ------------ ---------
Net assets 1,232 41,226 - 3,828 46,286
-------------------------- ----------------- ------------ ----------------- ------------ ---------
4. Interest Income/(Expense)
Six months Six months Six months Year
ended ended ended ended
30 Sept 30 Sept 30 Sept 31 Mar
2019 2018 2018 2019
PROFORMA
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
GBP'000 GBP'000 GBP'000 GBP'000
Interest
income -
bank
deposits 11 9 10 18
Interest
income -
other 31 8 37 96
Total
interest
income 42 17 47 114
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Six months Six months Six months Year
ended ended ended ended
30 Sept 30 Sept 30 Sept 31 Mar
2019 2018 2018 2019
PROFORMA
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
GBP'000 GBP'000 GBP'000 GBP'000
Interest
expense
-
property
loans (519) (517) (1,057) (1,571)
Interest
expense
- bank
and other (29) (24) (32) (49)
Finance
charges
on
finance
leases (148) (162) (406) (560)
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Total
interest
expense (696) (703) (1,495) (2,180)
---------------------- ---------------------- ---------------------- ---------------------- ----------------------
5. 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 Six months Year
ended months ended ended
30 Sept ended 30 Sept 31 Mar
2019 30 Sept 2018 2019
2018
PROFORMA
----------------------- ---------------------- --------------------- ---------------------- ----------------------
GBP'000 GBP'000 GBP'000 GBP'000
Current tax (586) (512) (752) (1,284)
Deferred
tax (27) (305) (300) (659)
----------------------- ---------------------- --------------------- ---------------------- ----------------------
Total (613) (817) (1,052) (1,943)
----------------------- ---------------------- --------------------- ---------------------- ----------------------
6. Earnings/NAV Per Share
The basic earnings per ordinary share is calculated on the
profit on ordinary activities after taxation and after
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.
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 Mar 2019
2019 2018
-------------------------------------- ----------------------- --------------------------- ------------------------
Basic earnings per share 2.11p 1.73p 4.95p
Diluted earnings per share 2.07p 1.69p 4.85p
-------------------------------------- ----------------------- --------------------------- ------------------------
Number Number Number
-------------------------------------- ----------------------- --------------------------- ------------------------
Weighted average number of
Ordinary shares in issue
(used for basic earnings
per share calculation) 111,318,482 111,398,291 111,353,468
Number of share options 2,610,000 2,700,000 2,610,000
-------------------------------------- ----------------------- --------------------------- ------------------------
Total number of Ordinary
shares used in the
diluted
earnings per share
calculation 113,928,482 114,098,291 113,963,468
-------------------------------------- ----------------------- --------------------------- ------------------------
GBP'000 GBP'000 GBP'000
-------------------------------------- ----------------------- --------------------------- ------------------------
Basic earnings 2,350 1,924 5,514
Notional interest on share
options assumed to be
exercised 8 4 8
-------------------------------------- ----------------------- --------------------------- ------------------------
Diluted earnings 2,358 1,928 5,522
-------------------------------------- ----------------------- --------------------------- ------------------------
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 Mar 2019
2019 2018
------------------------------------------ ---------------------- ---------------------- ------------------------
Net assets per share 41.90p 39.39p 41.46p
Adjusted net assets per share 59.65p 62.21p 57.48p
------------------------------------------ ---------------------- ---------------------- ------------------------
Adjusted net assets per share are calculated using the fair
value of all investments.
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 Sept 30 Sept 31 Mar 2019
2019 2018
------------------------------------------ ----------------------- ----------------------- ------------------------
Number Number Number
------------------------------------------ ----------------------- ----------------------- ------------------------
Number of shares in issue
at period end 110,854,001 111,253,003 111,354,001
------------------------------------------ ----------------------- ----------------------- ------------------------
GBP'000 GBP'000 GBP'000
------------------------------------------ ----------------------- ----------------------- ------------------------
Net assets excluding
Non-controlling
interest 46,447 43,822 46,172
For adjusted net assets per Number Number Number
share
------------------------------------------ ----------------------- ----------------------- ------------------------
Number of shares in issue
at period end 110,854,001 111,253,003 111,354,001
Number of share options
assumed
to be exercised 2,610,000 2,700,000 2,610,000
------------------------------------------ ----------------------- ----------------------- ------------------------
Total 113,464,001 113,953,003 113,964,001
------------------------------------------ ----------------------- ----------------------- ------------------------
For adjusted net assets per GBP'000 GBP'000 GBP'000
share
------------------------------------------ ----------------------- ----------------------- ------------------------
Net assets excluding
Non-controlling
interests 46,447 43,822 46,172
Investment properties at
fair value net of deferred
taxes 5,925 11,211 4,664
Inventories at fair value
net of deferred taxes 5,837 4,922 5,416
Investments in associates
and other financial
investments 9,088 - 8,875
Other items 381 10,932 381
------------------------------------------ ----------------------- ----------------------- ------------------------
Total 67,678 70,887 65,508
------------------------------------------ ----------------------- ----------------------- ------------------------
7. Investment Properties
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2019 30 Sept
2019 2018
--------------------------------------------- ---------------------- -------------------- ----------------------
GBP'000 GBP'000 GBP'000
--------------------------------------------- ---------------------- -------------------- ----------------------
1 April 67,348 132,180 132,180
Capital expenditure 777 1,531 586
Disposals - (63,907) -
Additions through acquisitions - 5,406 5,406
Depreciation (1,021) (2,111) (1,146)
Impairment loss to an investment - (2,984) -
property
Fair value adjustment - - 32
Foreign exchange translation 852 (2,767) 4
Total at end of period 67,956 67,348 137,062
--------------------------------------------- ---------------------- -------------------- ----------------------
Investment properties owned by the Group, and indirectly via FOP
are stated at cost less depreciation and accumulated impairment
losses.
8. Investments in associates and other financial investments
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2019 30 Sept
2019 2018
--------------------------------- ----------- ------------- -----------
a) Associates GBP'000 GBP'000 GBP'000
Cost of investment at beginning
of period 17,054 4,725 4,725
Additions - 13,172 1,595
Disposals - (1,304) -
Repayment of shareholder
loan (256) (549) (92)
Transfer from associate to
subsidiary status - - (212)
Share of associates profit
after tax 1,139 2,364 483
Impairment - (764) -
Dividends received - (590) (506)
Cost of investment at end
of period 17,937 17,054 5,993
--------------------------------- ----------- ------------- -----------
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2019 30 Sept
2019 2018
------------------------------- ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
------------------------------- ----------- ------------- -----------
Investments in associates
------------------------------- ----------- ------------- -----------
5th Property Trading Ltd 1,361 1,288 1,192
Fprop Romanian Supermarkets
Ltd 161 150 393
Fprop Galeria Corso Ltd 2,214 2,089 2,040
Fprop Krakow Ltd 1,379 1,308 1,279
Fprop Cluj Ltd 501 458 458
Fprop Phoenix Ltd 2,057 2,049 939
Fprop Opportunities plc (FOP) 10,572 10,020 -
------------------------------- ----------- ------------- -----------
18,245 17,362 6,301
------------------------------- ----------- ------------- -----------
Less: Group share of profit
after tax withheld on sale
of property to an associate
in 2007 (308) (308) (308)
------------------------------- ----------- ------------- -----------
Cost of investment at end
of period 17,937 17,054 5,993
------------------------------- ----------- ------------- -----------
The withheld profit figure of GBP308,000 represents the removal
of the percentage of intercompany profit resulting from the sale of
the property in 2007 to 5th Property Trading Ltd (an associate).
The figure will reduce when there is a reduction in First Property
Group's stake in 5th Property Trading Ltd.
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2019 30 Sept
2019 2018
-------------------------------- ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
-------------------------------- ----------- ------------- -----------
b) Other financial investments
-------------------------------- ----------- ------------- -----------
Cost of investment at 1 April 3,539 4,517 4,517
Additions 37 468 463
Repayments (218) (569) (537)
Disposal - (900) (900)
(Decrease)/increase in fair
value during the period (52) 23 -
-------------------------------- ----------- ------------- -----------
Cost of investment at end
of period 3,306 3,539 3,543
-------------------------------- ----------- ------------- -----------
9. Trade and Other Receivables
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2019 30 Sept
2019 2018
-------------------------------- ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
Current assets
Trade receivables 1,128 1,408 2,124
Less provision for impairment
of receivables (320) (297) (912)
-------------------------------- ----------- ------------- -----------
Trade receivables net 808 1,111 1,212
Other receivables 2,910 2,836 2,459
Prepayments and accrued income 1,172 1,971 1,043
4,890 5,918 4,714
-------------------------------- ----------- ------------- -----------
Non-current assets
-------------------------------- ----------- ------------- -----------
Other receivables 1,133 1,312 1,574
-------------------------------- ----------- ------------- -----------
Other receivables include a balance of GBP1.13 million relating
to the deferred consideration from the sale of an investment
property located in Romania, which is receivable after one year.
This has been discounted to reflect its current value.
10. Trade and Other Payables
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2019 30 Sept
2019 2018
----------------------------- ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
Current liabilities
Trade payables 2,296 2,798 2,841
Other taxation and social
security 938 855 827
Other payables and accruals 1,343 3,235 1,426
Deferred income 346 190 533
4,923 7,078 5,627
----------------------------- ----------- ------------- -----------
11. Financial Liabilities
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2019 30 Sept
2019 2018
------------------------------------ ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
a) Current liabilities
Loans repayable by subsidiary
(FOP) to third party shareholders - - 1,356
Bank loans 4,079 3,780 4,951
Finance leases 2,670 2,549 3,750
6,749 6,329 10,057
------------------------------------ ----------- ------------- -----------
b) Non-current liabilities
------------------------------------ ----------- ------------- -----------
Bank loans 36,864 35,783 68,181
Finance leases 23,881 24,565 43,914
------------------------------------ ----------- ------------- -----------
60,745 60,348 112,095
------------------------------------ ----------- ------------- -----------
c) Total obligations under
financial liabilities
Repayable within one year 6,749 6,329 10,057
Repayable within one and
five years 53,247 54,073 97,876
Repayable after five years 7,498 6,275 14,219
------------------------------------ ----------- ------------- -----------
67,494 66,677 122,152
------------------------------------ ----------- ------------- -----------
Loans repayable by Fprop Opportunities plc (FOP) to third party
shareholders are unsecured and repayable on demand.
Six bank loans and one finance lease (all denominated in Euros)
totalling GBP67.49 million (31 March 2019: GBP66.68 million)
included within financial liabilities are secured against
investment properties owned by the Group and one property owned by
the Group shown under inventories. These bank loans and this
finance lease are otherwise non-recourse to the Group's assets.
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR VBLFLKFFEFBV
(END) Dow Jones Newswires
November 21, 2019 02:00 ET (07:00 GMT)
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