Daejan Holdings (DJAN)

 

LSE:DJAN: Interim Results

Daejan Holdings

25 Nov 2010 11:37:30

Daejan Hldgs PLC

RNS Number : 8079W
Daejan Holdings PLC
25 November 2010
 



 

25 November 2010-----------------------------------------------------------------------------------------------

 

DAEJAN HOLDINGS PLC

 

The Board is pleased to present the Interim Statement for the half year ended 30 September 2010.

 

30/9/10


30/9/09


31/3/10


£000


£000


£000







Profit before tax

29,306


16,163


61,129







Profit after tax

20,491


11,513


45,655







Basic Diluted Earnings per Share

125.7p


70.6p


280.1p







Equity Shareholders' Funds per Share

£49.19


£46.40


£48.17

 

     

·    Profit before tax for the period was £29.3million (2009: £16.2million) after accounting for valuation movements in investment properties and financial instruments. There have been no material changes in overall vacancy and rental levels within the portfolio since March 2010 and the total rental income has continued in line with expectations.

 

·    An interim dividend of 25p per share will be paid on 4 March 2011 to shareholders on the register on 4 February 2011.

 

·    The property portfolio has been valued by the Directors based on the recommendations of the Group's external advisers.  The valuation surplus of £20.3 million (2009: £4.6 million deficit) arises almost entirely in the UK with US property values showing no significant overall movement in US Dollar terms.  Uncertainty continues to dominate the immediate outlook for the property market and the positive movement since 31 March 2010 may not be continued in the remainder of the financial year.

 

·    Contracts for the redevelopment of Africa House, WC2 have now been signed, with work on site due to start in January 2011. Completion of the work to provide 130,000 square feet of prime office space is scheduled for late 2012.

 

·    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 any increase in voids due to the current economic circumstances.

 

·    The Group's prudent approach to risk has resulted in its continued stability and low-gearing of 14.7%. Current development activities are already fully funded and the Group remains well placed to take advantage of new opportunities as they arise.

 

B S E Freshwater

Chairman

25 November 2010

 

For further information please contact:

 

Mark Jenner

Nick Dibden / Clare Thomas

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 2010























Unaudited


Unaudited


Audited









6 Months


6 Months


Year









Ended


Ended


ended









30/9/10


30/9/09


31/3/10






















£000


£000


£000















Total Rental & Related Income





50,987


47,676


99,913















Property Operating Expenses




 (30,467)


 (26,249)


(55,983)















Net Rental & Related Income




       20,520


21,427


43,930









Profit on Disposal of Investment Properties

3,386


2,435


5,073















Net Valuation Gains/(Losses) on Investment Properties





20,291


(4,555)


24,997













Administrative Expenses





(4,899)


(4,714)


(10,013)















Net Operating Profit before Net Financing Costs


39,298


14,593


63,987


Fair Value (Losses)/Gains on Financial Instruments and Current Investments

(4,552)


6,651


8,262


Financial Income





243


395


571


Financial Expenses





(5,683)


(5,476)


(11,691)















Net Financing Costs





(9,992)


1,570


(2,858)


























Profit Before Taxation





29,306


16,163


61,129















Income Tax Expense





(8,815)


(4,650)


(15,474)















Profit for the Period





20,491


11,513


45,655


Attributable to :












Equity Holders of the Parent




       20,486


11,500


45,636


Minority Interest





5


13


19















Profit for the Period





20,491


11,513


45,655




























Basic Diluted Earnings per Share


125.7

p

70.6

p

280.1

p
















 

Consolidated Statement of Comprehensive Income for the six months ended 30 September 2010


















Unaudited


Unaudited


Audited







6 Months


6 Months


Year







ended


ended


ended







30/9/10 


30/9/09


31/3/10


















£000


£000


£000



















Profit for the Period

20,491


11,513


45,655

 

Foreign Exchange translation differences

(3,951)


(14,681)


(8,063)







Total Comprehensive Income for the Period

16,540


(3,168)


37,592























Attributable to :







Equity Holders of the Parent

16,540


(3,167)


37,580

Minority Interest

0


(1)


12












Total Comprehensive Income for the Period

16,540


(3,168)


37,592












 

 



 

Consolidated Statement of Changes in Equity for the six months ended 30 September 2010

 


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 2009

4,074

555

29,112

725,552

759,293

135

759,428









Profit for the Year

0

0

0

45,636

45,636

19

45,655









Other Comprehensive Income for the Year

0

0

(8,056)

0

(8,056)

(7)

(8,063)









Distributions to Minority Interest

0

0

0

0

0

(4)

(4)









Dividends to Equity Shareholders

0

0

0

(11,897)

(11,897)

0

(11,897)









Balance at 31 March 2010

4,074

555

21,056

759,291

784,976

143

785,119

























Balance at 1 April 2010

4,074

555

21,056

759,291

784,976

143

785,119









Profit for the Period

0

0

0

20,486

20,486

5

20,491









Other Comprehensive Income for the Period

0

0

(3,946)

0

(3,946)

(5)

(3,951)









Investment by Minority Interest

0

0

0

0

0

22

22









Dividends to Equity Shareholders

0

0

0

0

0

0

0









Balance at 30 September 2010

4,074

555

17,110

779,777

801,516

165

801,681

 

 

 

 

 



 

 

Consolidated Balance Sheet as at 30 September 2010
























Unaudited


Unaudited


Audited








30/9/10


30/9/09


31/3/10




















£000


£000


£000

Assets












Investment Properties





1,174,467


1,100,804


1,155,384

Deferred Tax Assets





6,808


5,982


5,533













Total Non-Current Assets





1,181,275


1,106,786


1,160,917

 

Trade and Other Receivables




42,090


37,631


40,274

Investments






248


249


256

Cash at Bank






37,184


28,949


28,268













Total Current Assets





79,522


66,829


68,798













Total Assets






1,260,797


1,173,615


1,229,715

Equity












Issued Capital






4,074


4,074


4,074

Share Premium





        555


555


555

Retained Earnings





796,887


751,497


780,347













Total Equity Attributable to Equity









Holders of the Parent





801,516


756,126


784,976

Minority Interest





165


134


143













Total Equity






801,681


756,260


785,119

Liabilities











Interest Bearing Loans & Borrowings



178,850


171,371


185,506

Deferred Tax Liabilities





196,665


182,760


191,048













Total Non-Current Liabilities




375,515


354,131


376,554












Bank Overdrafts






        224


500


210

Interest Bearing Loans & Borrowings



       6,572


1,492


3,313

Trade and Other Payables





      60,020


52,897


53,365

Taxation





16,785


8,335


11,154











Total Current Liabilities





83,601


63,224


68,042












Total Liabilities






459,116


417,355


444,596











Total Equity & Liabilities





1,260,797


1,173,615


1,229,715











Equity Shareholders Funds Per Share





£49.19


£46.40


£48.17

 

 



 













 

Consolidated Statement of Cash Flows for the six months ended 30 September 2010









Unaudited



Unaudited



Audited








6 Months



6 Months



Year








Ended



Ended



ended








30/9/10



30/9/09



31/3/10





















£000

£000


£000

£000


£000

£000

Cash Flows From Operating Activities









Net Cash Generated from Operations

16,173



14,327



29,456


Interest Received

519



409



565


Interest Paid





(5,861)



(5,295)



(11,541)


Investment by/(Distributions to)  Minority Interest

22



(14)



(4)


UK Corporation Tax Refund/(Paid)


1,482



(3,769)



(1,249)


Overseas Tax Paid




(324)



(179)



(260)
















Net Cash from Operating Activities


12,011



5,479



16,967

Cash Flows from Investing Activities









Acquisitions and Additions to Investment Properties

(7,748)



(2,992)



(16,932)


Proceeds from Sale of Investment Properties

4,063



2,439



5,255
















Net cash from Investing Activities


(3,685)



(553)



(11,677)

Cash Flows from Financing Activities










Repayment of Secured Loans

(687)



(687)



(11,375)


Repayment of Mortgage Advances

(1,144)



(5,025)



(1,678)


New Mortgage Advances

2,795



4,957



22,549


Dividends Paid

0



0



(11,897)
















Net Cash from Financing Activities


964



(755)



(2,401)

Net Increase in Cash and Cash Equivalents


9,290



4,171



2,889

Cash and Cash Equivalents Brought Forward

28,058



26,174



26,174









Effect of Exchange Rate Fluctuations on Cash Held

(388)



(1,896)



(1,005)









Cash and Cash Equivalents                     

36,960



28,449



28,058

 

 

 



Notes to the Consolidated Financial Statements for the six months ended 30 September 2010

Basis of preparation 

This interim financial information has been prepared in accordance with International Accounting Standard 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 2010.  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 2011 and concluded that they have no material effect on either the current or prior periods.

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 2010 was unqualified and did not contain a statement under section 498 of the Companies Act 2006.  Statutory accounts for the year ended 31 March 2010 have been delivered to the Registrar of Companies.  The interim financial statements were approved by the Board of Directors on 24 November 2010. 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.



Notes to the Consolidated Financial Statements for the six months ended 30 September 2010

Segmental Analysis

 

UK

USA

Eliminations

Total

For the six months ended 30 September 2010

£000

£000

£000

£000

Rental and Related Income

36,911

14,076

0

50,987






Property Operating Expenses

(20,590)

(9,877)

0

(30,467)






Profit on Disposal of Properties

3,281

105

0

3,386






Net Valuation Movements on Properties

21,535

(1,244)

0

20,291






Administrative Expenses

(4,736)

(163)

0

(4,899)






Profit before Finance Costs

36,401

2,897

0

39,298






Net Financing Costs

(4,801)

(5,191)

0

(9,992)






Profit Before Taxation

31,600

(2,294)

0

29,306






Income Tax (Charge)/Credit

(9,616)

801

0

(8,815)






Profit/(Loss) for the Period

21,984

(1,493)

0

20,491






Capital Expenditure

1,720

6,028

0

7,748

As at 30 September 2010

 

 

 

 

Investment Properties

956,592

217,875

0

1,174,467

Other Assets

61,594

32,892

(8,156)

86,330

Total Segment Assets

1,018,186

250,767

(8,156)

1,260,797

Total Segment Liabilities

(301,920)

(165,352)

8,156

(459,116)

Capital Employed

716,266

85,415

0

801,681

 

 

 

 

 

 

UK

USA

Eliminations

Total

For the six months ended 30 September 2009

£000

£000

£000

£000

Rental and Related Income

35,503

12,173

0

47,676






Property Operating Expenses

(17,719)

(8,530)

0

(26,249)






Profit on Disposal of Properties

2,435

0

0

2,435






Net Valuation Movements on Properties

(2,713)

(1,842)

0

(4,555)






Administrative Expenses

(4,514)

(200)

0

(4,714)






Profit before Finance Costs

12,992

1,601

0

14,593






Net Financing Costs

(886)

2,456

0

1,570






Profit Before Taxation

12,106

4,057

0

16,163






Income Tax Charge

(3,538)

(1,112)

0

(4,650)






Profit for the Period

8,568

2,945

0

11,513






Capital Expenditure

1,806

1,186

0

2,992

As at 30 September 2009

 

 

 

 

Investment Properties

890,557

210,247

0

1,100,804

Other Assets

42,350

38,498

(8,037)

72,811

Total Segment Assets

932,907

248,745

(8,037)

1,173,615

Total Segment Liabilities

(268,292)

(157,100)

8,037

(417,355)

Capital Employed

664,615

91,645

0

756,260    

 

 

 

 

 

Notes to the Consolidated Financial Statements for the six months ended 30 September 2010

Dividends 

No dividends were paid in the six months ended 30 September 2010 (six months ended 30 September 2009: £Nil).

Investment Properties

The Directors have estimated the value of the investment properties at 31 September 2010 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 2011.

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 and are also interested in the share capital of Highdorn Co. Limited.

Mr BSE Freshwater, Mr SI Freshwater and Mr D Davis are also directors of the parent company of Freshwater Property Management Limited but have no beneficial interest in either company.

The net amounts payable for the provision of various management services charged by the Group's managing agents, Highdorn Co. Limited and Freshwater Property Management Limited, were £1.6million (six months ended 30 September 2009: £1.5million).

At 30 September 2010, £2.0million was due from Highdorn Co. Limited and Freshwater Property Management Limited (30 September 2009: £Nil).

Statement of Director's 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 2010.  A list of current directors is maintained on the Daejan Holdings PLC website www.daejanholdings.com.

 

B S E Freshwater

Chairman

25 November 2010


This information is provided by RNS
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