PNS Panther Securities Plc

 
TIDMPNS 
 
26 February 2021 
 
This announcement contains inside information for the purposes of Article 7 of 
the Market Abuse Regulation EU 596/2014 as it forms part of retained EU law (as 
defined in the European Union (Withdrawal) Act 2018). 
 
                            Panther Securities PLC 
                        (the "Company" or the "Group") 
 
             Update on refinance, property valuations and dividend 
 
In the interim results for the six months ended 30 June 2020 published on 16 
October 2020, the Chairman stated that the Directors hoped to be in a position 
to be able to declare a 6p interim dividend for the year ended 31 December 2020 
in February 2021, but that such declaration will be subject to gaining a 
clearer understanding of COVID-19 and its financial effects on our Group. 
 
The Directors are now providing an update on the status of the refinancing of 
the Group's banking facilities, the details of an external valuation of the 
Group's properties and the deferment of a decision whether to declare an 
interim dividend. 
 
Refinance 
 
As previously announced the Group's banking facilities were due to expire in 
April 2021.  Discussions with our joint lenders ("the Lenders") have continued 
regarding the refinancing of our current facilities.  However, as a result of 
COVID these discussions have taken longer to conclude than anticipated.  The 
Group is encouraged that one of the joint lenders has advised that its element 
of the refinancing has received full credit approval. However, the other joint 
lender has advised that its internal processes are continuing and full credit 
approval has not yet been obtained.  The Directors expect to be able to provide 
confirmation within March 2021 that credit approval has been obtained from the 
other joint Lender.  It is anticipated that a three month extension on the 
current loan facilities will be provided to July 2021 (and has been offered by 
one Lender) to allow time to carry out the necessary paperwork and any required 
legal due diligence required by the Lenders, once the refinancing terms are 
credit approved by the final Lender. 
 
Property valuation 
 
As part of this refinancing process, an external valuation of the Group's 
charged properties was undertaken by Carter Jonas on behalf of the Lenders. 
The draft valuation of the charged portfolio, consisting of 95 properties 
spread over many locations and property uses, came in at £158m.  The 
properties' valuation will remain draft until approved by both of the Lenders, 
who have their own in-house property experts to review the valuation reports. 
These same properties were valued by the Directors as at 31 December 2019 at £ 
153m, but since that date the Group has spent circa £2m on enhancement 
expenditure. 
 
Within the investment portfolio, the industrial properties (now representing 
29.3% of the charged portfolio's value) and those with residential planning, 
use or potential, showed the largest growth, with our retail investments having 
less consistent movements, many with write downs but others holding value or 
showing small improvements. 
 
Two currently uncharged properties are also being taken into charge and they 
have been valued, on behalf of the Lenders, by Lambert Smith Hampton at an 
aggregate value of £3m. 
 
Once the new properties are charged, based on the current borrowing levels and 
the draft valuation of the charged portfolio being approved by the Lenders, the 
Group is expected to have a loan to value ("LTV") of below 40% on the currently 
drawn £63m. 
 
Based on the draft valuation, together with the properties valued at circa £ 
12.5m which are uncharged, the Group has a total portfolio with a value of 
circa £173.5m. 
 
For the accounts for the year ended 31 December 2020, the final external 
valuations will be adopted as year end valuations and the Directors will value 
the uncharged properties.  Based on the draft external valuations and the 
Directors' preliminary valuations of the uncharged properties, the Directors 
are expecting to see a positive movement in the fair value of the properties as 
at 31 December 2020 in the order of £6.1m.  To reiterate shareholders should be 
aware that the external valuations remain draft until both of the Lenders have 
approved them and therefore remain subject to change. 
 
Swap movements 2020 
 
As shareholders will be aware, the Company has certain interest rate swap 
arrangements in place.  The Directors estimate that as at 31 December 2020, the 
liability increased by £5.5m and this non-cash item will be reflected in the 
results for the year ended 31 December 2020 (as well as the positive valuation 
movement on the investment properties). 
 
Swap restructuring 
 
The Group has paid £5m in February 2021 to vary a long-term swap agreement. 
The agreement varied was an interest rate swap fixed at 5.06% until 31 August 
2038 on a nominal value of £35m and has circa 17.5 years remaining.  Following 
the variation, the Group's fixed rate will drop on 1 September 2023 to 3.40% 
saving the Group £581,000pa in cash flow until the end point of the instrument. 
 
Property purchase 
 
In late January 2021, the Group exchanged contracts to purchase an industrial 
building in Trowbridge for £3.3m, paying a 5% deposit.  Completion is at a time 
of the seller's option with the earliest date being 15 months and the latest 
being 30 months from exchange.  The seller also has the ability to take a 
leaseback at completion at a market rent.  The industrial unit is well located 
and is a 96,000sq ft building on circa six acres of land. 
 
COVID-19 and dividend update 
 
The Directors announced in October 2020 that they would be declaring a dividend 
in February 2021 once they had a clearer understanding of the financial effects 
of COVID-19. 
 
The Directors consider that it is prudent to wait until full credit approval 
has been obtained for the refinancing and the negotiated terms of the 
refinancing are confirmed before declaring any dividend.  However, the 
Directors can confirm that the Group is collecting approximately 80% of its 
invoiced income (based on invoices issued since the first lock down on 23 March 
2020). 
 
A further announcement will be made in due course. 
 
 
For further information: 
 
Panther Securities plc:                               Tel: 01707 667 300 
Andrew Perloff/ Simon Peters 
 
Allenby Capital Limited (Nomad and Joint              Tel: 020 3328 5656 
Broker) 
David Worlidge/ Alex Brearley 
 
 
 
END 
 
 

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