TIDMFPO
RNS Number : 5451G
First Property Group PLC
26 November 2020
Date: 26 November 2020
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 2020
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 2020.
Highlights:
-- Significant cash reserves at period end: GBP21.21 million (31 March 2020: GBP7.34 million);
-- Substantially reduced net debt: GBP19.83 million (31 March 2020: GBP57.19 million);
-- Well positioned to weather the crisis and make judicious
investments as the UK, Poland and Romania emerge from it;
-- Fund management division AUM: GBP557 million (31 March 2020: GBP567 million);
-- Weighted average unexpired fund management contract term: 4
years, 5 months (31 March 2020: 5 years, 0 months);
-- Interim dividend maintained at 0.45 pence per share.
Financial Summary:
Unaudited Unaudited Percentage Audited
Six months Six months change Year to
to 30 Sept to 30 Sept 31 March
2020 2019 2020
------------------------- ------------ ------------ ----------- --------------
Income Statement:
------------------------- ------------ ------------ ----------- --------------
Statutory profit before GBP2.08m GBP2.98m -30.20% GBP5.52m
tax
Diluted earnings per
share 0.46p 2.07p -77.78% 4.29p
Total dividend per
share 0.45p 0.45p - 1.67p
Average EUR/GBP rate 1.1159 1.1246 - 1.1453
Balance Sheet at period
end:
------------------------- ------------ ------------ ----------- --------------
Investment properties GBP47.48m GBP82.98m -42.78% GBP47.10m
and Inventories at
book value
Investment properties GBP56.82m GBP96.26m -40.97% GBP56.30m
and Inventories at
market value
Cash balances GBP21.21m GBP8.55m +148.07% GBP7.34m
Cash per share 19.21p 7.72p +148.83% 6.65p
Gross debt GBP41.04m GBP67.50m -39.20% GBP64.53m
Net debt GBP19.83m GBP58.95m -66.36% GBP57.19m*
Gearing ratio at book
value** 46.56% 59.24% - 57.32%
Gearing ratio at market
value*** 40.09% 49.93% - 50.94%
Net assets at book GBP47.11m GBP46.45m +1.42% GBP48.05m
value
Net assets at market GBP61.34m GBP67.68m -9.37% GBP62.15m
value
Adjusted net assets
per share (EPRA basis) 54.28p 59.65p -9.00% 55.00p
Period end EUR/GBP
rate 1.1025 1.1303 - 1.1301
* Prior to completion of the sale of CH8 in April 2020.
** Gearing ratio = Gross debt divided by gross debt plus
net assets at book value.
*** Gearing ratio = Gross debt divided by gross debt plus
net assets at market value.
Commenting on the results, Ben Habib, Chief Executive of First
Property Group, said:
"The sale of Cha ubińskiego 8 (CH8) in April released some GBP17
million in cash and put the Group in a strong position from which
to navigate the economic fallout of the COVID pandemic.
"As a consequence of the sale there has been a reduction in
rental income, which is the primary reason for the reduction in
earnings reported today.
"This reduction should be temporary and last only until we
reinvest the cash. We expect to do so in association with clients
of the Group. Our aim is to invest some 10-20% of the equity
required in any acquisition which, when coupled with bank debt,
should enable us to acquire up to some GBP300 million in
property.
"There is a great deal of flux in the market at the moment and
we expect interesting opportunities to emerge next year. "
A briefing for analysts will be held at 11:00hrs today via
Investor Meet Company. To participate it is necessary to register
at
https://www.investormeetcompany.com/first-property-group-plc/register-investor
and select to meet the Company. Those who have already registered
and selected to meet the company will be automatically invited. A
copy of the accompanying investor presentation and a recording of
the call will be posted on the company website.
For further information please contact:
First Property Group plc Tel: +44 (20) 7340
0270
Ben Habib (Chief Executive Officer) www.fprop.com
Laura James (Interim Group Finance investor.relations@fprop.com
Director)
Jeremy Barkes (Director, Business
Development)
Jill Aubrey (Company Secretary)
Arden Partners (NOMAD & Broker) Tel: + 44 (20) 7614
5900
John Llewellyn-Lloyd (Director, Corporate
Finance)
Ben Cryer (Corporate Finance)
Newgate Communications (PR) Tel: + 44 7540106366
Robin Tozer / Tom Carnegie / Isabelle firstproperty@newgatecomms.com
Smurfit
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 twelve 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 include eight directly held properties in
Poland and Romania, and non-controlling interests in ten of the
twelve 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 2020.
Revenue earned by the Group was GBP6.33 million (30 September
2019: GBP8.08 million) yielding a profit before tax of GBP2.08
million (30 September 2019: GBP2.98 million).
The decrease in profit before tax was mainly attributable
to:
-- A loss incurred by Cha ubińskiego 8 (CH8) which reduced
profit before tax by GBP135,000 following completion of its sale on
24 April 2020 (30 September 2019: profit GBP600,000);
-- Reduced contribution from Associates and investments of
GBP796,000 (30 September 2019: GBP1.27 million), a decrease of
GBP475,000 mainly due to:
a) a loss incurred by Fprop Phoenix Ltd of which the Group's
share amounted to GBP219,000 (30 September 2019: profit GBP8,000);
and
b) Foregone rent and service charge in Fprop Opportunities plc
(FOP) and Fprop Galeria Corso (FGC) from rent holidays granted to
tenants by the Polish government during the first lockdown, of
which the Group's share amounted to GBP132,000.
-- No performance fees earned by our fund management division
(FPAM) (30 September 2019: GBP247,000).
Diluted earnings per share decreased to 0.46 pence (30 September
2019: 2.07 pence), more than the decrease in profit before tax, due
to a deferred tax charge of GBP1.14 million (30 September 2019:
GBP27,000) resulting from the write-off of a previously recognised
deferred tax asset following the repayment of the loan secured
against CH8 in April 2020. The subsidiary company which held the
property retains the benefit of the crystallised tax loss to
relieve future taxable profits if earned.
It is the accounting policy of the Group to carry its properties
and interests in associates at the lower of cost or market value.
Market values are independently assessed at least once a year, on
31 March. The Group ended the period with net assets under the cost
basis of accounting of GBP47.11 million (31 March 2020: GBP48.05
million). The net assets of the Group when adjusted to their market
value less any deferred tax liabilities (EPRA basis) at the period
end was GBP61.34 million (31 March 2020: GBP62.15 million).
Gross debt at the period end amounted to GBP41.04 million (31
March 2020: GBP64.53 million), the reduction being due to the
completion of the sale of CH8 and the repayment of the
corresponding bank loan. This in turn reduced the Group's gearing
ratio at book value from 57.32% at 31 March 2020 to 46.56%, and at
market value from 50.94% at 31 March 2020 to 40.09%. Net debt
reduced to GBP19.83 million (31 March 2020: GBP57.19 million).
Group cash balances at the period end stood at GBP21.21 million
(31 March 2020: GBP7.34 million prior to the completion of the sale
of CH8 in April 2020). This represents 19.21 pence per share (31
March 2020: 6.65 pence per share).
Dividend:
The Directors have resolved to maintain the interim dividend at
0.45 pence per share (30 September 2019: 0.45 pence per share)
which will be paid on 8 January 2021 to shareholders on the
register at 4 December 2020, with an ex-dividend date of 3 December
2020.
REVIEW OF OPERATIONS
PROPERTY FUND MANAGEMENT (First Property Asset Management Ltd or
FPAM)
Third party assets under management at period end amounted to
GBP557 million (31 March 2020: GBP567 million). This 1.8% decrease
was primarily attributable to reductions in the value of properties
held by our UK property funds. Some 65% of third-party assets under
management were located in the UK, 33% in Poland, and 2% in
Romania. A further GBP80 million of committed but as yet
un-invested equity remains available to be drawn by funds managed
by FPAM.
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 a
given property's 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
(totalling GBP1.38 million as at 30 September 2020).
Revenue earned by this division decreased by 18% to GBP1.66
million, resulting in profit before unallocated central overheads
and tax of GBP633,000 (30 September 2019: GBP1.00 million),
representing 22% of Group profit before unallocated central
overheads and tax. The decrease was primarily due to no performance
fees being earned in the period (30 September 2019:
GBP247,000).
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 GBP3.02 million (31 March
2020: GBP3.13 million).
FPAM's weighted average unexpired fund management contract term
at the period end was 4 years, 5 months (31 March 2020: 5 years, 0
months).
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 2020 375.7 191.3 567.0 69
----------------------- --------- -------- -------- ---------
Purchases - - - -
New fund mandates - - - -
Property sales - - - -
Capital expenditure 0.1 - 0.1 -
Property depreciation - - - -
Property revaluation (14.7) (0.6) (15.3) -
FX revaluation - 4.8 4.8 -
As at 30 Sept 2020 361.1 195.5 556.6 69
----------------------- --------- -------- -------- ---------
An overview of the value of assets and maturity of each of the
funds managed by FPAM is set out below:
Fund Country Fund Assets No of % of total Assets
of investment expiry under properties third-party under management
management assets at market
at market under value at
value management 31 March
at 2020
30 Sept
2020
------------ ---------------- ---------- ------------ ------------ ------------- ------------------
Fund management division GBPm. GBPm.
------------------------------ ---------- ------------ ------------ ------------- ------------------
SAM & DHOW UK Rolling * * * *
UK PPP UK Feb 2022 67.1 20 12.0 70.3
5PT Poland Dec 2022 8.2 3 1.5 8.0
OFFICES UK Jun 2024 139.5 5 25.1 143.4
SIPS UK Jan 2025 136.9 24 24.6 143.4
FOP Poland Oct 2025 72.5 5 13.0 71.3
FRS Romania Jan 2026 1.0 1 0.2 1.0
FGC Poland Mar 2026 22.9 1 4.1 22.4
SPEC OPPS UK Jan 2027 17.7 4 3.2 18.6
FKR Poland Mar 2027 23.6 1 4.2 23.0
FCL Romania Jun 2028 8.0 1 1.5 7.8
FPL Poland Jun 2028 59.2 4 10.6 57.8
------------ ---------------- ---------- ------------ ------------ ------------- ------------------
Total Third-Party
AUM 556.6 69 100.0 567.0
------------------------------ ---------- ------------ ------------ ------------- ------------------
* Not subject to recent revaluation;
The sub sector weightings of investments in FPAM funds is set
out in the table below:
UK Poland Romania Total % of Total
-------------------- ------ ------- -------- ------- -----------
GBPm. GBPm. GBPm. GBPm.
-------------------- ------ ------- -------- ------- -----------
Offices 209.3 108.1 8.0 325.4 58.4%
Retail warehousing 92.8 - - 92.8 16.7%
Supermarkets 50.8 20.0 1.0 71.8 12.9%
Shopping centres - 58.4 - 58.4 10.5%
Industrial 8.2 - - 8.2 1.5%
-------------------- ------ ------- -------- ------- -----------
Total 361.1 186.5 9.0 556.6 100.0%
-------------------- ------ ------- -------- ------- -----------
% of Total
Third-Party
AUM 64.9% 33.5% 1.6% 100.0%
-------------------- ------ ------- -------- ------- -----------
Average rent collection rates by funds managed by FPAM in the
six months to 30 September 2020 were as follows:
UK Poland Romania
-----------------
Rent collected as
a percentage of what
would have been invoiced
prior to COVID related
concessions 92.3% 90.1% 98.03%
------------------------------ ----------------- ----------------- -----------------
Offices Retail Offices Retail Offices Retail
95.9% 88.3% 97.2% 75.4% 100.0% 85.9%
------------------------------ -------- ------- -------- ------- -------- -------
Rent collected after 95.1%* 98.1%** 98.03%***
adjustments for concessions
granted due to COVID
------------------------------ ----------------- ----------------- -----------------
Offices Retail Offices Retail Offices Retail
96.3% 93.2% 99.1% 95.7% 100.0% 85.9%
------------------------------ -------- ------- -------- ------- -------- -------
*In the UK no rent discounts were granted, only deferrals of
payment;
**After adjusting for rent waivers statutorily imposed upon
landlords of non-essential retail outlets during the first lockdown
and for cash concessions granted to tenants in return for lease
extensions;
***In Romania no rent discounts were granted, only deferrals of
payment.
GROUP PROPERTIES
At the period end Group Properties comprised eight directly
owned commercial properties in Poland and Romania and interests in
ten of the twelve funds managed by FPAM (which are invested in the
UK, Poland and Romania).
The contribution to Group profit before tax and unallocated
central overheads from the Group Properties division was GBP2.30
million (30 September 2019: GBP3.10 million), representing 78% of
Group profit before unallocated central overheads and tax.
Approximately 65% of this contribution was from the eight directly
owned properties and 35% was from the Group's Associates and other
investments.
1. Directly owned Group Properties (all accounted for under the cost model):
Two of the Group's eight directly owned properties account for
80% of the value (GBP37.8 million). Both are office buildings in
Poland of which one is in Warsaw (11,000 m(2) ) and the other in
Gdynia (15,500 m(2) ). The balance of 20% by value (GBP9.6 million)
is invested in three mini-supermarkets in Poland, a development
site in Warsaw, an office block in Bucharest and a warehouse in
Romania.
Country Sector No. of Book Market *Contribution *Contribution
properties value value to Group to Group
profit profit
before before
tax - period tax - period
to to
30 Sept 30 Sept
2020 2019
--------- ---------------- ------------ ------- ------- -------------- --------------
GBPm. GBPm. GBPm. GBPm.
Poland Offices 2 37.8 43.9 1.9 2.6
Poland Supermarkets 4 5.4 6.1 0.1 0.1
Office
Romania and logistics 2 4.2 6.8 0.2 0.1
Total 8 47.4 56.8 2.2 2.8
--------------------------- ------------ ------- ------- -------------- --------------
*Prior to the deduction of direct overhead and unallocated
central overhead expenses.
The eight directly owned properties generated a profit before
unallocated central overheads and tax of GBP1.50 million (30
September 2019: GBP1.83 million). The decrease was almost entirely
attributable to completion in April 2020 of the sale of Cha
ubińskiego 8 (CH8), an office tower in Warsaw, resulting in no
further rental contributions from this property. The impact from
COVID was minimal, mainly because none of the remaining eight
properties are shopping centres (see next section, "Associates and
Investments" for fuller details).
Free cash generation of the eight directly owned properties for
the six months to 30 September 2020 was EUR973,000 (30 September
2019: EUR829,000).
6 months 6 months 12 months
to 30 Sept to 30 Sept to 31 March
2020 2019* 2020*
---------------------------- ------------ ------------ -------------
EUR'000 EUR'000 EUR'000
---------------------------- ------------ ------------ -------------
Net operating income
(NOI) 3,945 3,979 8,024
Interest expense on
bank loans/ finance
leases (356) (397) (775)
---------------------------- ------------ ------------ -------------
NOI after interest expense 3,589 3,582 7,249
---------------------------- ------------ ------------ -------------
Current tax (430) (600) (1,110)
Debt amortisation (2,174) (2,096) (4,368)
Capital expenditure (12) (57) (566)
---------------------------- ------------ ------------ -------------
Free Cash 973** 829 1,205
---------------------------- ------------ ------------ -------------
*Excluding CH8;
**of which EUR881,000 was from the property in Gdynia.
The average rent collection rates across the eight properties in
the six months to 30 September 2020 are shown in the table below.
The high collection rate is testament both to the quality of our
properties and our asset management capabilities.
Poland Romania
------------------------------------------ ------- --------
Rent collected as a percentage of what
would have been invoiced prior to COVID
related concessions 98.8% 94.2%
------------------------------------------ ------- --------
Rent collected after adjustments for
concessions granted due to COVID 98.8% 94.5%
------------------------------------------ ------- --------
The debt secured against the eight Group Properties reduced to
GBP41.04 million (31 March 2020: GBP64.53 million) following the
sale of CH8. The loans secured against the eight properties are
held in separate non-recourse special purpose vehicles.
30 Sept 2020 30 Sept 2019
GBPm GBPm
Book value 47.4 49.4*
Market value 56.8 60.9*
Gross debt (all non-recourse
to Group) 41.0 44.1*
LTV at book value % 86.5% 89.3%
LTV at market value % 72.2% 72.4%
Weighted average borrowing cost 1.70% 1.84%
Weighted average debt term excluding 4 yrs 7 mths 5 yrs 10 mths
Gdynia
Weighted average debt term including 1 yr 10 mths 2 yrs 11 mths
Gdynia
*Comparable figure has been adjusted to exclude the property CH8
and the associated bank loan.
The Group has been depreciating the value of the Gdynia property
in anticipation of the near simultaneous expiry of both the over
rented lease to its sole tenant and the bank financing (on 21
February 2021). The Group is now in negotiations with the lending
bank about terms on which to renew/ restructure the financing. We
are also in discussions with the tenant.
When the Group sold Cha ubińskiego 8 (CH8) at the end of the
last financial year, it guaranteed the rent and service charge
income on the residual vacant space until March 2025 as a condition
of the sale (amounting to EUR1.34 million per annum), and undertook
to pay fit out costs associated with new lettings of up to circa
EUR1.50 million. An accrual was recognised in the year ended 31
March 2020 for one year's worth of this rent guarantee and the full
fit-out costs, totalling EUR2.85 million (GBP2.52 million).
The weighted average vacancy rate across all eight properties is
10%. The weighted average unexpired lease term (WAULT) of all eight
properties as at 30 September 2020 was 1 year and 3 months.
2. Associates and Investments
These comprise non-controlling interests in ten of the twelve
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 and held at fair value.
The contribution to Group profit before tax and unallocated
central overheads from its seven associates and three investments
decreased by 37% to GBP796,000 million (30 September 2019: GBP1.27
million). This contribution represents 27% of Group profit before
unallocated central overheads and tax and 35% of the contribution
by Group Properties. The reduction was largely attributable to the
loss generated by Fprop Phoenix Ltd, of which the Group's 23.4%
share amounted to GBP219,000 (30 September 2019: profit GBP8,000)
and also the impact of COVID on the two funds which own shopping
centres, Fprop Opportunities plc (FOP) and Fprop Galeria Corso
(FGC).
During the first lockdown in Poland, which lasted from 14 March
to 4 May, all shops except for food retailers and pharmacies were
forcibly closed and tenants absolved from paying rent, subject to
those tenants wishing to benefit from the rent holiday extending
their leases on the same terms by the period of the ban plus a
further six months. The two funds affected suffered a total loss of
rent and service charge income of GBP589,000, of which the Group's
share amounted to GBP204,000. In the six months to 30 September the
impact was GBP132,000, with the balance having been already
recognised in the financial year ended 31 March 2020. Further rent
concessions on top of these government-imposed rent holidays were
granted in exchange for lease extensions. These amounted to
GBP465,000 for the six months to 30 September 2020 in terms of cash
flow but their impact on profit before tax is minimal due to the
rent reductions being amortised over the remaining life of the
respective leases.
The rent collection rate amongst the Group's associates and
investments is shown in a table in the fund management section of
this report. With the exception of Fprop Phoenix Ltd (FPL), which
is a turnaround, these funds are invested in well let commercial
property.
An overview of the Group's Associates and Investments is set out
in the table below:
Fund % owned Book value Current Group's Group's
by of First market share share
First Property's value of of post-tax of post-tax
Property share in holdings profits profits
Group fund earned by earned by
fund fund
30 Sept 30 Sept
2020 2019
--------------- ---------- ------------ ---------- ------------- --------------
% GBP'000 GBP'000 GBP'000 GBP'000
--------------- ---------- ------------ ---------- ------------- --------------
a) Associates
5PT 37.8% 1,200 1,299 72 73
FRS 24.1% 179 269 11 11
FOP 40.4% 10,866 10,936 627 751
FGC 28.2% 2,445 2,784 99 156
FKR 18.1% 1,543 1,986 92 97
FPL 23.4% 1,690 6,900 (219) 8
FCL 17.4% 560 558 41 43
--------------- ---------- ------------ ---------- ------------- --------------
Sub Total 18,483 24,732 723 1,139
--------------------------- ------------ ---------- ------------- --------------
b) Investments
UK PPP 0.9% 656 656 14 33
SPEC OPPS 4.8% 502 502 17 32
OFFICES 1.6% 2,002 2,002 42 67
----------- ----- ------ ------ --- ----
Sub Total 3,160 3,160 73 132
------------------ ------ ------ --- ----
Total 21,643 27,892 796 1,271
------- ------- ------- ---- ------
Commercial Property Markets Outlook
Poland:
Poland is likely to be one of the least affected in the EU by
the pandemic with GDP forecast to have returned to pre-pandemic
levels by early 2022. Government debt as a percentage of GDP
remains low by western European standards (at around 55%), making
its COVID-19 stimulus package affordable. Like elsewhere, the
retail and hospitality sectors have suffered more than others from
COVID. But our own experience of rent collection has been good, as
evidenced in the divisional reports above. Capital value reductions
have been limited and transaction volumes are only down by around
10% year to date, although the percentage of transactions in
industrial and logistics property has increased.
Romania:
Similar to Poland, Romania is expected to return to pre-pandemic
levels of economic growth early in 2022. Like Poland, Romania
benefits from low government debt as a ratio of GDP (at around
41%), giving it fiscal headroom to help speed its recovery.
Commercial property turnover in 2020 is likely to be less than the
EUR1 billion of recent years.
United Kingdom:
According to Bank of England analysis of independent forecasts,
GDP will have shrunk by around 10% in 2020 but will grow by 7% next
year. In the meantime, the occupier market for commercial property
is suffering. Notwithstanding this, office tenants are generally
continuing to pay rent (unless their business has been directly
impacted) but rent collection rates amongst retail and hospitality
tenants is lower. Overall, this is bound to exert downward pressure
on rent levels, more so in some sub-sectors than others. It should
also exert downward pressure on capital values, but renewed
quantitative easing and zero percent interest rates have reduced
the impact, and in some cases served to boost capital values. The
market is in a state of flux.
Current Trading and Prospects
The sale of Cha ubińskiego 8 (CH8) in April released some GBP17
million in cash and put the Group in a strong position from which
to navigate the economic fallout of the COVID pandemic.
As a consequence of the sale there has been a reduction in
rental income, which is the primary reason for the reduction in
earnings reported today.
This reduction should be temporary and last only until we
reinvest the cash. We expect to do so in association with clients
of the Group. Our aim is to invest some 10-20% of the equity
required in any acquisition which, when coupled with bank debt,
should enable us to acquire up to some GBP300 million in
property.
There is a great deal of flux in the market at the moment and we
expect interesting opportunities to emerge next year.
Ben Habib
Chief Executive
CONSOLIDATED INCOME STATEMENT
for the six months to 30 September 2020
Notes Six months Six months Year to
to 30 Sept to
2020
(unaudited) 30 Sept 31 Mar 2020
2019
(unaudited) (audited)
--------------------------------- ------ -------------- -------------- --------------
Total results Total results Total results
--------------------------------- ------ -------------- -------------- --------------
GBP'000 GBP'000 GBP'000
Revenue 6,330 8,077 16,287
--------------------------------- ------ -------------- -------------- --------------
Cost of sales (1,194) (1,705) (3,969)
Gross profit 5,136 6,372 12,318
Profit on sale of an investment
property - - 1,527
Operating expenses (3,492) (4,006) (8,612)
Operating profit 1,644 2,366 5,233
Share of results in associates 7 723 1,139 1,220
Investment income 73 132 324
Interest income 3 45 42 80
Interest expense 3 (403) (696) (1,338)
Profit before tax 2,082 2,983 5,519
Corporation tax 4 (404) (586) (974)
Deferred tax 4 (1,140) (27) 360
--------------------------------- ------ -------------- -------------- --------------
Profit for the period 538 2,370 4,905
Attributable to:
Owners of the parent 515 2,350 4,859
Non-controlling interests 23 20 46
538 2,370 4,905
Earnings per share
Basic 5 0.47p 2.11p 4.38p
Diluted 5 0.46p 2.07p 4.29p
--------------------------------- ------ -------------- -------------- --------------
All operations are continuing.
CONDENSED CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
for the six months to 30 September 2020
Six months Six months Year to
to 30 Sept to 31 Mar
2020 30 Sept 2020
2019
(unaudited) (unaudited) (audited)
--------------------------------------- -------------- -------------- ----------
Total results Total results Total
results
--------------------------------------- -------------- -------------- ----------
GBP'000 GBP'000 GBP'000
--------------------------------------- -------------- -------------- ----------
Profit for the period 538 2,370 4,905
--------------------------------------- -------------- -------------- ----------
Other comprehensive income
--------------------------------------- -------------- -------------- ----------
Items that may subsequently
be reclassified to profit
or loss
Exchange differences on retranslation
of foreign subsidiaries (53) (451) (502)
Net gain/(loss) on financial
assets at fair value through
Other Comprehensive Income (52) (52) (195)
Taxation - - -
--------------------------------------- -------------- -------------- ----------
Total comprehensive income
for the period 433 1,867 4,208
--------------------------------------- -------------- -------------- ----------
Total comprehensive income
for the period attributable
to:
Owners of the parent 412 1,847 4,135
--------------------------------------- -------------- -------------- ----------
Non-controlling interests 21 20 73
--------------------------------------- -------------- -------------- ----------
433 1,867 4,208
--------------------------------------- -------------- -------------- ----------
All operations are continuing.
CONDENSED CONSOLIDATED BALANCE SHEET
as at 30 September 2020
Notes As at As at As at
30 Sept 31 Mar 30 Sept
2020 (unaudited) 2020 (audited) 2019 (unaudited)
------------------------------- ------ ------------------ ---------------- ------------------
GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill 153 153 153
Investment properties 6 32,544 32,537 67,956
Property, plant and equipment 56 64 61
Investment in associates 7a 18,483 17,698 17,937
Other financial assets
at fair value through OCI 7b 3,128 3,174 3,306
Other receivables 8 730 922 1,133
Right of use assets 584 584 -
Deferred tax assets 2,307 2,659 2,828
------------------------------- ------ ------------------ ---------------- ------------------
Total non-current assets 57,985 57,791 93,374
Current assets
Inventories - land and
buildings 14,940 14,558 15,025
Current tax assets 133 122 29
Trade and other receivables 8 3,216 44,845 4,890
Cash and cash equivalents 21,207 7,337 8,553
------------------------------- ------ ------------------ ---------------- ------------------
Total current assets 39,496 66,862 28,497
Current liabilities
Trade and other payables 9 (5,464) (9,158) (4,923)
Financial liabilities 10a (25,803) (49,073) (6,749)
Current tax liabilities (78) (71) (193)
------------------------------- ------ ------------------ ---------------- ------------------
Total current liabilities (31,345) (58,302) (11,865)
------------------------------- ------ ------------------ ---------------- ------------------
Net current assets 8,151 8,560 16,632
------------------------------- ------ ------------------ ---------------- ------------------
Total assets less current
liabilities 66,136 66,351 110,006
------------------------------- ------ ------------------ ---------------- ------------------
Non-current liabilities
Financial liabilities 10b (15,241) (15,461) (60,745)
Lease liabilities (584) (584) -
Deferred tax liabilities (3,049) (2,102) (2,712)
Net assets 47,262 48,204 46,549
------------------------------- ------ ------------------ ---------------- ------------------
Equity
Called up share capital 1,166 1,166 1,166
Share premium 5,791 5,791 5,791
Share-based payment reserve 179 179 179
Foreign exchange translation
reserve (1,311) (1,260) (1,180)
Purchase of own shares
reserve (2,653) (2,653) (2,462)
Investment revaluation
reserve (288) (236) (93)
Retained earnings 44,228 45,060 43,046
------------------------------- ------ ------------------ ---------------- ------------------
Equity attributable to
the owners of the parent 47,112 48,047 46,447
Non-controlling interests 150 157 102
------------------------------- ------ ------------------ ---------------- ------------------
Total equity 47,262 48,204 46,549
------------------------------- ------ ------------------ ---------------- ------------------
Net assets per share 5 42.68p 43.53p 41.90p
------------------------------- ------ ------------------ ---------------- ------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months to 30 September 2020
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 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
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
Profit for the
period - - - - - - 2,535 - 2,535
Net gain/ (loss)
on financial
assets at fair
value through
other
comprehensive
income - - - - - (143) - - (143)
Movement on
foreign
exchange - - - (80) - - - 29 (51)
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
Total
Comprehensive
Income - - - (80) - (143) 2,535 29 2,341
Sale of treasury
shares - - - - 12 - - - 12
Purchase of
treasury shares - - - - (203) - - - (203)
Non-controlling
interests - - - - - - (26) 26 -
Dividends paid - - - - - - (495) - (495)
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
At 1 April 2020 1,166 5,791 179 (1,260) (2,653) (236) 45,060 157 48,204
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
Profit for the
period - - - - - - 538 - 538
Net gain/ (loss)
on financial
assets at fair
value through
other
comprehensive
income - - - - - (52) - - (52)
Movement on
foreign
exchange - - - (51) - - - (2) (53)
Total
Comprehensive
Income - - - (51) - (52) 538 (2) 433
Purchase of - - - - - - - - -
treasury shares
Non-controlling
interests - - - - - - (23) 23 -
Dividends paid - - - - - - (1,347) (28) (1,375)
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
At 30 Sept 2020 1,166 5,791 179 (1,311) (2,653) (288) 44,228 150 47,262
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
for the six months to 30 September 2020
Notes Six months Six months Year to
to to 30 Sept
2019 (unaudited)
30 Sept 31 Mar
2020 (unaudited) 2020
(audited)
----------------------------------------- ------ ------------------- ------------------ ------------
GBP'000 GBP'000 GBP'000
----------------------------------------- ------ ------------------- ------------------ ------------
Cash flows from operating activities
Operating profit 1,644 2,366 5,233
Adjustments for:
Depreciation of investment
property, and property, plant
& equipment 949 1,057 2,178
Profit on the sale of investment
property - - (1,527)
(Increase)/decrease in inventories 21 (48) (258)
(Increase)/decrease in trade
and other receivables 41,999 1,301 1,040
(Decrease)/increase in trade
and other payables (4,242) (2,193) (483)
Other non-cash adjustments 23 153 168
Cash generated from operations 40,394 2,636 6,351
Income taxes paid (407) (473) (1,013)
----------------------------------------- ------ ------------------- ------------------ ------------
Net cash flow from operating
activities 39,987 2,163 5,338
----------------------------------------- ------ ------------------- ------------------ ------------
Cash flow (used in)/from investing
activities
Capital expenditure on investment
properties 6 (12) (777) (1,258)
Proceeds from partial disposal
of financial assets held at
fair value through Other Comprehensive
Income 7a - 256 576
Purchase of property, plant
and equipment - (6) (42)
Investment in funds 7b (6) - (48)
Proceeds from funds 7b - 218 218
Investment in shares of associates 7a (62) - -
Interest received 3 45 42 80
Dividends from associates 7a - - -
Distributions received 73 95 276
Net cash flow (used in)/from
investing activities 38 (172) (198)
----------------------------------------- ------ ------------------- ------------------ ------------
Cash flow (used in)/from financing
activities
Proceeds from bank loan - 1,769 1,769
Repayment of bank loans (23,126) (1,458) (3,054)
Repayment of finance lease (1,358) (1,291) (2,562)
Purchase of new treasury shares - (214) (417)
Sale of shares held in Treasury - - 12
Exercise of share options - - -
Interest paid 3 (403) (656) (1,338)
Dividends paid (1,347) (1,360) (1,855)
Dividends paid to non-controlling
interests (28) (30) (30)
----------------------------------------- ------ ------------------- ------------------ ------------
Net cash flow (used in)/from
financing activities (26,262) (3,240) (7,475)
Net (decrease)/increase in
cash and cash equivalents 13,763 (1,249) (2,335)
----------------------------------------- ------ ------------------- ------------------ ------------
Cash and cash equivalents at
the beginning of period 7,337 9,738 9,738
----------------------------------------- ------ ------------------- ------------------ ------------
Currency translation gains/(losses)
on cash and cash equivalents 107 64 (66)
----------------------------------------- ------ ------------------- ------------------ ------------
Cash and cash equivalents at
the end of the period 21,207 8,553 7,337
----------------------------------------- ------ ------------------- ------------------ ------------
NOTES TO THE ACCOUNTS
for the six months ended 30 September 2020
1. Basis of Preparation
-- These interim consolidated financial statements for the six
months ended 30 September 2020 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 2020 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
2020 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 18 November 2020.
2. Segmental Analysis
Segment reporting for the six months to 30 September 2020
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 - 4,006 - - 4,006
Service charge
income - 663 - - 663
Asset management
fees 1,661 - - - 1,661
Performance related - - - - -
fee income
-------------------------- ----------------- ------------ ----------------- ------------ --------
Total revenue 1,661 4,669 - - 6,330
-------------------------- ----------------- ------------ ----------------- ------------ --------
Depreciation and
amortisation (10) (976) - - (986)
-------------------------- ----------------- ------------ ----------------- ------------ --------
Operating profit 633 1,884 - (873) 1,644
Share of results
in associates - - 723 - 723
Investment income - - 73 - 73
Interest income - 21 - 24 45
Interest expense - (403) - - (403)
Profit/(loss) before
tax 633 1,502 796 (849) 2,082
-------------------------- ----------------- ------------ ----------------- ------------ --------
Analysed as:
Underlying profit/loss
before tax before
adjusting for the
following items: 644 2,572 796 (680) 3,332
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
Performance related - - - - -
fee income
Depreciation on
investment property - (884) - - (884)
Staff incentives - - - (397) (397)
Realised foreign
currency (losses)/gains (11) (186) - 228 31
Profit/(loss) before
tax 633 1,502 796 (849) 2,082
-------------------------- ----------------- ------------ ----------------- ------------ --------
Revenue for the six months to 30 September 2020 from continuing
operations consists of revenue arising in the United Kingdom 14%
(30 September 2019: 12%) and Central and Eastern Europe 86% (30
September 2019: 88%) and all relates solely to the Group's
principal activities.
Segment reporting for the six months to 30 September 2019
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
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
-------------------------- ----------------- ------------ ----------------- ------------ --------
Segment reporting year to 31 March 2020
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 - 10,403 - - 10,403
Service charge
income - 1,986 - - 1,986
Asset management
fees 3,483 - - - 3,483
Performance related
fee income 415 - - - 415
-------------------------- ----------------- ------------ ----------------- ------------ ---------
Total revenue 3,898 12,389 - - 16,287
-------------------------- ----------------- ------------ ----------------- ------------ ---------
Depreciation and
amortisation (35) (2,443) - - (2,478)
-------------------------- ----------------- ------------ ----------------- ------------ ---------
Operating profit 1,335 5,962 - (2,064) 5,233
Share of results
in associates - - 1,879 - 1,879
Fair value adjustment
on associates - - (659) - (659)
Investment income - - 324 - 324
Interest income - 74 - 6 80
Interest expense - (1,338) - - (1,338)
Profit/(loss) before
tax 1,335 4,698 1,544 (2,058) 5,519
-------------------------- ----------------- ------------ ----------------- ------------ ---------
Analysed as:
Underlying profit/(loss)
before tax before
adjusting for the
following items: 1,344 6,549 2,203 (1,023) 9,073
Profit on the sale
of investment property - 1,527 - - 1,527
Fair value adjustment
on associates - - (659) - (659)
Depreciation (35) (2,443) - - (2,478)
Performance related
fee income 415 - - - 415
Staff incentives (383) (325) - (1,101) (1,809)
Realised foreign
currency (losses)/gains (6) (610) - 66 (550)
Total 1,335 4,698 1,544 (2,058) 5,519
-------------------------- ----------------- ------------ ----------------- ------------ ---------
Assets - Group 1,078 98,591 3,174 4,032 106,875
Share of net assets
of associates - - 18,006 (308) 17,698
Liabilities (338) (74,793) - (1,238) (76,369)
-------------------------- ----------------- ------------ ----------------- ------------ ---------
Net assets 740 23,798 21,180 2,486 48,204
-------------------------- ----------------- ------------ ----------------- ------------ ---------
3. Interest Income/(Expense)
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 Mar 2020
2020 2019
---------------------------------- ---------------------- ---------------------- ------------------------
GBP'000 GBP'000 GBP'000
Interest income -
bank deposits 24 11 26
Interest income -
other 21 31 54
Total interest income 45 42 80
---------------------------------- ---------------------- ---------------------- ------------------------
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 Mar 2020
2020 2019
----------------------------------- ---------------------- ---------------------- ------------------------
GBP'000 GBP'000 GBP'000
Interest expense
- property loans (257) (519) (1,009)
Interest expense
- bank and other (22) (29) (53)
Finance charges on
finance leases (124) (148) (276)
----------------------------------- ---------------------- ---------------------- ------------------------
Total interest expense (403) (696) (1,338)
----------------------------------- ---------------------- ---------------------- ------------------------
4. 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 months Year
ended ended ended
30 Sept 30 Sept 31 Mar 2020
2020 2019
------------------------- ---------------------- ---------------------- ------------------------
GBP'000 GBP'000 GBP'000
Current tax (404) (586) (974)
Deferred tax (1,140) (27) 360
------------------------- ---------------------- ---------------------- ------------------------
Total (1,544) (613) (614)
------------------------- ---------------------- ---------------------- ------------------------
The deferred tax charge relates to the reversal of a previously
recognised deferred tax asset following the repayment of the bank
loan secured against the property CH8 in April 2020 .
5. 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 2020
2020 2019
-------------------------------------- ----------------------- --------------------------- ------------------------
Basic earnings per share 0.47p 2.11p 4.38p
Diluted earnings per share 0.46p 2.07p 4.29p
-------------------------------------- ----------------------- --------------------------- ------------------------
Number Number Number
-------------------------------------- ----------------------- --------------------------- ------------------------
Weighted average number of
Ordinary shares in issue
(used for basic earnings
per share calculation) 110,953,578 111,318,482 110,953,578
Number of share options 2,610,000 2,610,000 2,610,000
-------------------------------------- ----------------------- --------------------------- ------------------------
Total number of Ordinary
shares used in the
diluted
earnings per share
calculation 113,563,578 113,928,482 113,563,578
-------------------------------------- ----------------------- --------------------------- ------------------------
GBP'000 GBP'000 GBP'000
-------------------------------------- ----------------------- --------------------------- ------------------------
Basic earnings 516 2,350 4,859
Notional interest on share
options assumed to be
exercised 4 8 8
-------------------------------------- ----------------------- --------------------------- ------------------------
Diluted earnings 520 2,358 4,867
-------------------------------------- ----------------------- --------------------------- ------------------------
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 Mar 2020
2020 2019
------------------------------------------ ---------------------- ---------------------- ------------------------
Net assets per share 42.68p 41.90p 43.53p
Adjusted net assets per share 54.28p 59.65p 55.00p
------------------------------------------ ---------------------- ---------------------- ------------------------
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 2020
2020 2019
------------------------------------------ ----------------------- ----------------------- ------------------------
Number Number Number
------------------------------------------ ----------------------- ----------------------- ------------------------
Number of shares in issue
at period end 110,383,332 110,854,001 110,382,332
------------------------------------------ ----------------------- ----------------------- ------------------------
GBP'000 GBP'000 GBP'000
------------------------------------------ ----------------------- ----------------------- ------------------------
Net assets excluding
Non-controlling
interest 47,112 46,447 48,047
For adjusted net assets per Number Number Number
share
------------------------------------------ ----------------------- ----------------------- ------------------------
Number of shares in issue
at period end 110,382,332 110,854,001 110,382,332
Number of share options
assumed
to be exercised 2,610,000 2,610,000 2,610,000
------------------------------------------ ----------------------- ----------------------- ------------------------
Total 112,992,332 113,464,001 112,992,332
------------------------------------------ ----------------------- ----------------------- ------------------------
For adjusted net assets per GBP'000 GBP'000 GBP'000
share
------------------------------------------ ----------------------- ----------------------- ------------------------
Net assets excluding
Non-controlling
interests 47,112 46,447 48,047
Investment properties at
fair value net of deferred
taxes 4,564 5,925 4,520
Inventories at fair value
net of deferred taxes 3,034 5,837 2,939
Investments in associates
and other financial
investments 6,246 9,088 6,260
Other items 381 381 381
------------------------------------------ ----------------------- ----------------------- ------------------------
Total 61,337 67,678 62,147
------------------------------------------ ----------------------- ----------------------- ------------------------
6. Investment Properties
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2020 30 Sept
2020 2019
--------------------------------------------- ---------------------- -------------------- ----------------------
GBP'000 GBP'000 GBP'000
--------------------------------------------- ---------------------- -------------------- ----------------------
1 April 32,537 67,348 67,348
Capital expenditure 12 1,258 777
Disposals - (33,192) -
Additions through acquisitions - - -
Depreciation (939) (2,055) (1,021)
Impairment loss to an investment - - -
property
Foreign exchange translation 934 (822) 852
Total at end of period 32,544 32,537 67,956
--------------------------------------------- ---------------------- -------------------- ----------------------
Investment properties owned by the Group are stated at cost less
depreciation and accumulated impairment losses.
7. Investments in associates and other financial investments
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2020 30 Sept
2020 2019
--------------------------------- ----------- ------------- -----------
a) Associates GBP'000 GBP'000 GBP'000
Cost of investment at beginning
of period 17,698 17,054 17,054
Additions 62 - -
Disposals - - -
Repayment of shareholder
loan - (576) (256)
Share of associates profit
after tax 723 1,879 1,139
Share of associates revaluation - (659) -
losses
Dividends received - - -
Cost of investment at end
of period 18,483 17,698 17,937
--------------------------------- ----------- ------------- -----------
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2020 30 Sept
2020 2019
------------------------------- ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
------------------------------- ----------- ------------- -----------
Investments in associates
------------------------------- ----------- ------------- -----------
5th Property Trading Ltd 1,508 1,436 1,361
Fprop Romanian Supermarkets
Ltd 179 168 161
Fprop Galeria Corso Ltd 2,445 2,346 2,214
Fprop Krakow Ltd 1,543 1,451 1,379
Fprop Cluj Ltd 560 519 501
Fprop Phoenix Ltd 1,690 1,908 2,057
Fprop Opportunities plc (FOP) 10,866 10,178 10,572
------------------------------- ----------- ------------- -----------
18,791 18,006 18,245
------------------------------- ----------- ------------- -----------
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 18,483 17,698 17,937
------------------------------- ----------- ------------- -----------
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 2020 30 Sept
2020 2019
-------------------------------- ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
-------------------------------- ----------- ------------- -----------
b) Other financial investments
-------------------------------- ----------- ------------- -----------
Cost of investment at 1 April 3,174 3,539 3,539
Additions 6 48 37
Repayments - (218) (218)
Disposal - - -
(Decrease)/increase in fair
value during the period (52) (195) (52)
-------------------------------- ----------- ------------- -----------
Cost of investment at end
of period 3,128 3,174 3,306
-------------------------------- ----------- ------------- -----------
8. Trade and Other Receivables
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2020 30 Sept
2020 2019
-------------------------------- ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
Current assets
Trade receivables 1,222 1,423 1,128
Less provision for impairment
of receivables (356) (330) (320)
-------------------------------- ----------- ------------- -----------
Trade receivables net 866 1,093 808
Other receivables 1,757 42,343 2,910
Prepayments and accrued income 593 1,409 1,172
3,216 44,845 4,890
-------------------------------- ----------- ------------- -----------
Non-current assets
-------------------------------- ----------- ------------- -----------
Other receivables 730 922 1,133
-------------------------------- ----------- ------------- -----------
Other receivables, under current assets, as at 31 March 2020
included GBP38.93 million relating to the sale proceeds following
the sale of CH8, which were received in full on 24 April 2020.
Other receivables receivable after one year include a balance of
GBP730,000 (31 March 2020: GBP922,000) relating to the deferred
consideration from the sale of an investment property located in
Romania. This has been discounted to reflect its current value.
9. Trade and Other Payables
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2020 30 Sept
2020 2019
----------------------------- ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
Current liabilities
Trade payables 1,841 2,591 2,296
Other taxation and social
security 621 1,030 938
Other payables and accruals 2,819 5,354 1,343
Deferred income 183 183 346
5,464 9,158 4,923
----------------------------- ----------- ------------- -----------
10. Financial Liabilities
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2020 30 Sept
2020 2019
---------------------------- ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
a) Current liabilities
Bank loans 1,302 23,829 4,079
Finance leases 24,501 25,244 2,670
25,803 49,073 6,749
---------------------------- ----------- ------------- -----------
b) Non-current liabilities
---------------------------- ----------- ------------- -----------
Bank loans 15,241 15,461 36,864
Finance leases - - 23,881
---------------------------- ----------- ------------- -----------
15,241 15,461 60,745
---------------------------- ----------- ------------- -----------
c) Total obligations under
financial liabilities
Repayable within one year 25,803 49,073 6,749
Repayable within one and
five years 8,833 8,770 53,247
Repayable after five years 6,408 6,691 7,498
---------------------------- ----------- ------------- -----------
41,044 64,534 67,494
---------------------------- ----------- ------------- -----------
Five bank loans and one finance lease (all denominated in Euros)
totalling GBP41.04 million (31 March 2020: GBP64.53 million which
includes the bank loan relating to CH8 which was not repaid until
April 2020) 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. Further copies can
be obtained from the registered office at 32 St James's Street,
London SW1A 1HD.
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END
IR BELLLBFLLFBE
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November 26, 2020 02:00 ET (07:00 GMT)
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