Daejan Holdings (DJAN)

 

LSE:DJAN: Interim Results

Daejan Holdings

29 Nov 2012 10:30:02

Daejan Hldgs PLC

RNS Number : 3126S
Daejan Holdings PLC
29 November 2012
 



 

29 November 2012-----------------------------------------------------------------------------------

 

DAEJAN HOLDINGS PLC

INTERIM RESULTS ANNOUNCEMENT for the half year ended 30 September 2012

 

The Board is pleased to present the Interim Statement for the half year ended 30 September 2012.

 

 

 

30/9/12

30/9/11

31/3/12


£000


£000


£000







Profit/(Loss) before tax

23,266


(121)


41,849







Profit/(Loss) after tax

22,856


(783)


36,133







Basic and diluted earnings per share

£1.40


£(0.05)


£2.21







Equity shareholders' funds per share

£54.25


£51.53


£52.90

 

 

·     The profit before tax for the period was £23.3 million (2011: £0.1 million loss) after accounting for net valuation gains on investment properties of £11.4 million (2011: £0.8 million loss) and valuation losses on financial instruments of £3.0 million (2011: £9.7 million). There was an increase of 3.5% in gross rental income and a reduction of 4% in property operating expenses compared to the equivalent period last year. The underlying net profit before tax, i.e. excluding net valuation movements, was £14.9 million (2011: £10.4 million)

 

·     The property portfolio has been valued by the Directors based on the recommendations of the Group's external advisors. The overall net valuation gain of £11.4 million (2011: £0.8 million loss) reflects net gains in both the UK and USA portfolios. London residential property continues to perform well, while offices and shops outside London have seen reductions in value.

 

·     The redevelopment of Africa House, WC2 continued throughout the period and is likely to be available for occupation in mid 2013.

 

·     The principal risk factors affecting the remainder of the financial year continue to be exposure to movements in the valuation of the Group's investment properties and financial instruments and to any increase in voids or bad debts which may arise from the continuation of the current difficult economic conditions.

 

·     The business outlook continues to be challenging, with reduced economic activity in the UK and the possible negative impacts of the as yet unresolved Eurozone issues as well as the risk of a US budgetary crisis. These factors create uncertainty so that it is by no means clear when we will see a return to more positive sustained growth in the markets in which we operate. We believe that our long term, prudent approach of maintaining a strong balance sheet with relatively low gearing is particularly appropriate in present times. Notwithstanding the general economic climate, we remain confident that the Group will continue to progress.

 

·     An interim dividend of 25p per share will be paid on 8 March 2013 to shareholders on the register on 8 February 2013.

 

 

 

 

 

B S E Freshwater

Chairman

29 November 2012

 

For further information please contact:

 

Mark Jenner

Nick Oborne

Company Secretary

Weber Shandwick Financial

Daejan Holdings PLC


Tel: 020 7836 1555

Tel: 020 7067 0700

 

 

 



 

Consolidated Income Statement for the six months ended 30 September 2012























Unaudited


Unaudited


Audited









Six months


Six months


Year









ended


ended


ended









30/9/12


30/9/11


31/3/12






















£000


£000


£000















Total rental & related income from investment property


53,301


52,492


107,094















Property operating expenses




(32,451)


(33,802)


(68,036)















Net rental & related income from investment property




20,850


18,690


39,058









Profit on disposal of investment property

4,248


2,166


16,254















Net valuation gains/(losses) on investment property


11,440


(782)


15,683













Administrative expenses





(5,238)


(5,461)


(11,135)















Net operating profit before net financing costs


31,300


14,613


59,860


Fair value losses on fixed rate loans and borrowings

(2,281)


(7,406)


(4,717)


Fair value losses on derivative financial instruments


(704)


(2,308)


(2,167)


Fair value losses on current investments


(1)


(12)


(3)


 

Other financial income





301


272


512













Financial expenses





(5,349)


(5,280)


(11,636)















Net financing costs





(8,034)


(14,734)


(18,011)


























Profit/(loss) before taxation


23,266


(121)


41,849















Income tax





(410)


(662)


(5,716)















Profit/(loss) for the period





22,856


(783)


       36,133


Attributable to :












Equity holders of the parent




22,801


(785)


35,951


Minority interest





55


2


182















Profit/(loss) for the period





22,856


(783)


36,133




























Basic and diluted earnings/(loss) per share


£1.40


£(0.05)


£2.21


























 

 

 

Consolidated Statement of Comprehensive Income for the six months ended 30 September 2012
















Unaudited


Unaudited


Audited






Six Months


Six Months


Year






ended


ended


ended






30/9/12


30/9/11


31/3/12
















£000


£000


£000


















Profit/(loss) for the period

22,856


(783)


36,133

 

Foreign exchange translation differences

(760)


2,312


204







Total comprehensive income for the period

22,096


1,529


36,337






















Attributable to :







Equity holders of the parent

22,041


1,522


36,155

Minority interest

55


7


182











Total comprehensive income for the period

22,096


1,529


36,337












 

 

 

Consolidated Statement of Changes in Equity for the six months ended 30 September 2012


Issued

Share



Equity




share

premium

Translation

Retained

shareholders'

Minority

Total


capital

account

reserve

earnings

funds

interest

equity










£000

£000

£000

£000

£000

£000

£000









Balance at 1 April 2011

4,074

555

18,416

815,055

 

838,100

162

838,262









Profit for the year

-

-

-

35,951

35,951

182

36,133









Foreign exchange translation differences

-

-

204

-

204

-

204









Movements in  minority interest

-

-

-

-

-

(26)

(26)









Dividends to equity shareholders

-

-

-

(12,222)

(12,222)

-

(12,222)

















Balance at 1 April 2012

4,074

555

18,620

838,784

862,033

318

862,351









Profit for the period

-

-

-

22,801

22,801

55

22,856









Foreign exchange translation differences

-

-

(760)

-

(760)

-

(760)









Movements in  minority interest

-

-

-

-

-

(201)

(201)









Dividends to equity shareholders

-

-

-

-

-

-

-









Balance at 30 September 2012

4,074

555

17,860

861,585

884,074

172

884,246









 

 

 

Consolidated Balance Sheet as at 30 September 2012
























Unaudited


Unaudited


Audited








30/9/12


30/9/11


31/3/12




















£000


£000


£000

Assets












Investment property





1,273,463


1,236,454


1,254,094

Deferred tax assets





9,227


9,155


8,539













Total non-current assets





1,282,690


1,245,609


1,262,633

Trade and other receivables




50,911


49,064


69,578

Current investments






217


205


220

Cash and cash equivalents






54,858


35,671


32,474













Total current assets





105,986


84,940


102,272













Total assets






1,388,676


1,330,549


1,364,905

Equity












Share capital






4,074


4,074


4,074

Share premium





555


555


555

Translation reserve





17,860


20,723


18,620

Retained earnings





861,585


814,270


838,784













Total equity attributable to equity









holders of the parent





884,074


839,622


862,033

Minority interest





172


153


318













Total equity






884,246


839,775


862,351

Liabilities











Loans and borrowings



210,872


202,524


213,085

Deferred tax liabilities





192,158


199,581


194,656













Total non-current liabilities




403,030


402,105


407,741












Bank overdrafts



-


1


150

Loans and borrowings



20,124


15,986


17,941

Trade and other payables





46,009


49,297


44,528

Current taxation





35,267


23,385


32,194











Total current liabilities





101,400


88,669


94,813












Total liabilities






504,430


490,774


502,554











Total equity and liabilities





1,388,676


1,330,549


1,364,905











Equity shareholders' funds per share





£54.25


£51.53


£52.90











 

 

 

Consolidated Statement of Cash Flows for the six months ended 30 September 2012























Unaudited



Unaudited



Audited








Six months



Six months



Year








ended



ended



ended








30/9/12



30/9/11



31/3/12





















£000

£000


£000

£000


£000

£000

Cash flows from operating activities









Net cash generated from operations

13,989



11,283



22,274


Interest received

164



224



509


Interest paid





(5,342)



(5,183)



(11,525)


Distributions to minority interest

(201)



(16)



(26)


UK corporation tax paid

-



-



-


Overseas tax paid

(90)



(146)



(122)
















Net cash from operating activities


8,520



6,162



11,110










Cash flows from investing activities









Acquisition and development of investment property

(10,690)



(5,491)



(25,618)


Proceeds from sale of investment property

25,680



2,245



7,620
















Net cash from investing activities


14,990



(3,246)



(17,998)











Cash flows from financing activities










Repayment of bank loans

(837)



(41,687)



(42,375)


New bank loans and overdrafts

-



-



150


Repayment of mortgages

(8,206)



(1,331)



(28,900)


New mortgages

7,933



247



47,283


Dividends paid

-



-



(12,222)
















Net cash absorbed by financing activities


(1,110)



(42,771)



(36,064)










Net increase/(decrease) in cash and cash equivalents


22,400



(39,855)



(42,952)









Cash and cash equivalents brought forward

32,324



75,296



75,296









Effect of exchange rate fluctuations on cash held

134



229



(20)









Cash and cash equivalents

54,858



35,670



32,324

 

 

 

 

Notes to the Consolidated Interim Financial Statements for the six months ended 30 September 2012

 

Basis of preparation 

 

This interim financial information has been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting, applying the accounting policies and presentation that were applied in the preparation of the Company's published consolidated financial statements for the year ended 31 March 2012.  As required by the Listing Rules of the Financial Services Authority, the Directors have considered the result of the endorsement by the EU of new or changed International Financial Reporting Standards that are applicable or available for early adoption in the preparation of the Company's next consolidated financial statements for the year ending 31 March 2013 and concluded that they have no material effect on either the current or prior periods.

 

Status of the interim financial information

 

The interim financial information in this statement has not been audited or reviewed by auditors pursuant to the Auditing Practices Board guidance on review of interim financial information and does not constitute statutory accounts, as defined in section 435 of the Companies Act 2006. The auditors' report on the statutory accounts for the year ended 31 March 2012 was unqualified and did not contain a statement under section 498 of the Companies Act 2006.  Statutory accounts for the year ended 31 March 2012 have been delivered to the Registrar of Companies.  The interim financial statements were approved by the Board of Directors on 28 November 2012. The preparation of the interim financial information requires management to make assumptions and estimates about future events which are uncertain, the actual outcome of which may result in a materially different outcome from that anticipated.

 

 

 

 

Segmental Analysis

 

UK

USA

Eliminations

Total

For the six months ended 30 September 2012

£000

£000

£000

£000

Rental and related income

37,260

16,041

-

53,301






Property operating expenses

(22,358)

(10,093)

-

(32,451)






Profit/(loss) on disposal of property

4,546

(298)

-

4,248






Net valuation movements on property

9,892

1,548

-

11,440






Administrative expenses

(4,806)

(432)

-

(5,238)






Profit before finance costs

24,534

6,766

-

31,300






Net financing costs

(3,822)

(4,212)

-

(8,034)






Profit before taxation

20,712

2,554

-

23,266






Income tax credit/(charge)

938

(1,348)

-

(410)






Profit for the period

21,650

1,206

-

22,856






Capital expenditure

9,548

1,142

-

10,690

As at 30 September 2012





Investment property

1,010,968

262,495

-

1,273,463

Other assets

79,962

39,922

(4,671)

115,213

Total segment assets

1,090,930

302,417

(4,671)

1,388,676

Total segment liabilities

(298,758)

(210,343)

4,671

(504,430)

Capital employed

792,172

92,074

-

884,246

 

 

 

 

 

 

 

UK

 

USA

 

Eliminations

 

Total

For the six months ended 30 September 2011

£000

£000

£000

£000

Rental and related income

37,793

14,699

-

52,492






Property operating expenses

(23,526)

(10,276)

-

(33,802)






Profit on disposal of property

2,166

-

-

2,166






Net valuation movements on property

(2,189)

1,407

-

(782)






Administrative expenses

(5,090)

(371)

-

(5,461)






Profit before finance costs

9,154

5,459

-

14,613






Net financing costs

(6,250)

(8,484)

-

(14,734)






Profit/(loss) before taxation

2,904

(3,025)

-

(121)






Income tax charge

(293)

(369)

-

(662)






Profit/(loss) for the period

2,611

(3,394)

-

(783)






Capital expenditure

4,136

1,355

-

5,491


 

 

 

 

As at 30 September 2011

 

 

 

 

Investment property

984,597

251,857

-

1,236,454

Other assets

71,125

27,808

(4,838)

94,095

Total segment assets

1,055,722

279,665

(4,838)

1,330,549

Total segment liabilities

(301,727)

(193,885)

4,838

(490,774)

Capital employed

753,995

85,780

-

839,775

 

 

 

 

 

 

 

Dividends 

 

No dividends were paid in the six months ended 30 September 2012 (six months ended 30 September 2011: £Nil).

 

Investment properties

 

The Directors have estimated the value of the investment properties at 30 September 2012 after consultation with the Group's advisers.  A full valuation of the Group's properties will be carried out by independent professional valuers at 31 March 2013.

 

Related party transactions

 

Day-to-day management of the Group's properties in the UK is mainly carried out by Highdorn Co. Limited and by Freshwater Property Management Limited.  Mr BSE Freshwater and Mr SI Freshwater are directors of both companies.  They have no beneficial interest in the share capital of Highdorn Co. Limited.  Mr BSE Freshwater, Mr SI Freshwater and Mr D Davis are directors of the parent company of Freshwater Property Management Limited but have no beneficial interest in either company.  Mr RE Freshwater has a beneficial interest in a trust holding interests in shares in Highdorn Co. Limited.

 

In their capacity as managing agents, Highdorn Co. Limited and Freshwater Property Management Limited collect rents and incur direct property expenses on behalf of the Group.  At 30 September 2012, the aggregate net amounts due to the Group from Highdorn Co. Limited and Freshwater Property Management Limited in relation to such agency receipts and payments was £3 million (2011: Due from the Group £2.0 million).  These amounts are not secured and are payable on demand.  No guarantees have been given or received and the amounts are settled in cash.

 

The amounts paid by the Group during the period for the provision of property and other management services by Highdorn Co. Limited and Freshwater Property Management Limited, not included above, were £1.7 million (six months ended 30 September 2011: £1.9 million).

 

The board considers that the Directors are the key management personnel of the Group and their remuneration is disclosed in the Daejan Holdings PLC Annual Report for 31 March 2012.

 

Statement of Directors' responsibilities

 

The Directors confirm that this condensed set of financial statements has been prepared in accordance with IAS 34 as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8.

The Directors of Daejan Holdings PLC are listed in the Daejan Holdings PLC Annual Report for 31 March 2012.  A list of current Directors is maintained on the Daejan Holdings PLC website www.daejanholdings.com.

 

 

B S E Freshwater

Chairman

29 November 2012


This information is provided by RNS
The company news service from the London Stock Exchange
 
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