The Board is pleased to present the Interim Statement for the half year ended 30 September 2018.
|
30 Sep 2018 |
|
30 Sep 2017 |
|
31 Mar 2018 |
|
|
|
£000 |
|
£000 |
|
£000 |
|
|
|
|
|
|
|
|
Profit before tax |
61,100 |
|
56,643 |
|
201,262 |
|
|
|
|
|
|
|
|
Profit after tax |
48,858 |
|
45,474 |
|
202,958 |
|
|
|
|
|
|
|
|
Basic and diluted earnings per share |
£2.99 |
|
£2.79 |
|
£12.45 |
|
|
|
|
|
|
|
|
Equity shareholders' funds per share |
£115.77 |
|
£103.28 |
|
£111.25 |
· The profit before tax for the period was £61.1 million (2017: £56.6 million) after accounting for the net valuation gain on investment properties of £32.5 million (2017: £29.5 million).
· The property portfolio has been valued by the Directors based on the recommendations of the Group's external advisers and in the UK continues to show modest growth whilst the USA has been flat following increases in local interest rates.
· We continue to see some increase in rental income in the UK and USA, primarily driven by the letting of completed development projects.
· Brexit continues to provide political and economic uncertainty which has led to reduced forecasts for economic growth. This combination of factors will provide a challenging environment for our UK business. In the USA the economic outlook is more encouraging and should provide a positive environment to grow our business.
· 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, movements in the sterling/dollar exchange rate and the incidence of voids and bad debts.
· An interim dividend of 35p per share will be paid on 8 March 2019 to shareholders on the register on 8 February 2019.
B S E Freshwater
Chairman
28 November 2018
|
Consolidated Income Statement for the six months ended 30 September 2018 |
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|
|
Unaudited |
|
Unaudited |
|
Audited |
|
|
|
|
|
|
|
|
|
|
Six months |
|
Six months |
|
Year |
|
|
|
|
|
|
|
|
|
|
ended |
|
ended |
|
ended |
|
|
|
|
|
|
|
|
|
|
30 Sep 2018 |
|
30 Sep 2017 |
|
31 Mar 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£000 |
|
£000 |
|
£000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental & related income from investment property |
|
73,966 |
|
71,270 |
|
142,885 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses |
|
|
|
(37,015) |
|
(38,923) |
|
(76,407) |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net rental & related income from investment property |
|
|
|
36,951 |
|
32,347 |
|
66,478 |
|
||||
|
|
|
|
|
|
|
|
|||||||
|
Profit on disposal of investment property |
4,929 |
|
6,720 |
|
11,893 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net valuation gains on investment property |
|
32,521 |
|
29,536 |
|
146,438 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Administrative expenses |
|
|
|
|
(6,940) |
|
(6,395) |
|
(13,263) |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating profit before net financing costs |
|
67,461 |
|
62,208 |
|
211,546 |
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Fair value gains on derivative financial instruments |
|
840 |
|
1,309 |
|
1,923 |
|
||||||
|
Fair value gains on current investments |
|
– |
|
– |
|
6 |
|
||||||
|
Other financial income |
|
|
|
|
482 |
|
266 |
|
581 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Financial expenses |
|
|
|
|
(7,683) |
|
(7,140) |
|
(12,794) |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net financing expense |
|
|
|
|
(6,361) |
|
(5,565) |
|
(10,284) |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Profit before taxation |
|
61,100 |
|
56,643 |
|
201,262 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax |
|
|
|
|
(12,242) |
|
(11,169) |
|
1,696 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
|
|
|
|
48,858 |
|
45,474 |
|
202,958 |
|
|||
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
||
|
Equity holders of the parent |
|
|
|
48,789 |
|
45,423 |
|
202,889 |
|
||||
|
Non-controlling interest |
|
|
|
|
69 |
|
51 |
|
69 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
|
|
|
|
48,858 |
|
45,474 |
|
202,958 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share |
|
£2.99 |
|
£2.79 |
|
£12.45 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Consolidated Statement of Comprehensive Income for the six months ended 30 September 2018 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
Unaudited |
|
Audited |
|
|
|
|
|
|
|
Six Months |
|
Six Months |
|
Year |
|
|
|
|
|
|
|
ended |
|
ended |
|
ended |
|
|
|
|
|
|
|
30 Sep 2018 |
|
30 Sep 2017 |
|
31 Mar 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£000 |
|
£000 |
|
£000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
48,858 |
|
45,474 |
|
202,958 |
|||||
|
Foreign exchange translation differences |
24,830 |
|
(18,101) |
|
(29,759) |
|||||
|
|
|
|
|
|
|
|||||
|
Total comprehensive income for the period |
73,688 |
|
27,373 |
|
173,199 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
||||
|
Equity holders of the parent |
73,612 |
|
27,338 |
|
173,156 |
|||||
|
Non-controlling interest |
76 |
|
35 |
|
43 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
73,688 |
|
27,373 |
|
173,199 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
All other comprehensive income may be reclassified as profit and loss in the future.
|
Consolidated Statement of Changes in Equity for the six months ended 30 September 2018 |
|||||||
|
|
|
|
|
|
Equity |
Non- |
|
|
|
Share |
Share |
Translation |
Retained |
shareholders' |
controlling |
Total |
|
|
capital |
premium |
reserve |
earnings |
funds |
interest |
equity |
|
|
|
|
|
|
|
|
|
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
Balance at 1 April 2017 |
4,074 |
555 |
61,117 |
1,589,969 |
1,655,715 |
240 |
1,655,955 |
|
|
|
|
|
|
|
|
|
|
Profit for the period |
– |
– |
– |
202,889 |
202,889 |
69 |
202,958 |
|
|
|
|
|
|
|
|
|
|
Foreign exchange translation differences |
– |
– |
(29,733) |
– |
(29,733) |
(26) |
(29,759) |
|
Payments to non-controlling interest |
– |
– |
– |
– |
– |
(192) |
(192) |
|
|
|
|
|
|
|
|
|
|
Dividends to equity shareholders |
– |
– |
– |
(15,969) |
(15,969) |
– |
(15,969) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 April 2018 |
4,074 |
555 |
31,384 |
1,776,889 |
1,812,902 |
91 |
1,812,993 |
|
|
|
|
|
|
|
|
|
|
Profit for the period |
– |
– |
– |
48,789 |
48,789 |
69 |
48,858 |
|
|
|
|
|
|
|
|
|
|
Foreign exchange translation differences |
– |
– |
24,823 |
– |
24,823 |
7 |
24,830 |
|
Payments to non-controlling interest |
– |
– |
– |
– |
– |
(11) |
(11) |
|
|
|
|
|
|
|
|
|
|
Dividends to equity shareholders |
– |
– |
– |
– |
– |
– |
– |
|
|
|
|
|
|
|
|
|
|
Balance at 30 September 2018 |
4,074 |
555 |
56,207 |
1,825,678 |
1,886,514 |
156 |
1,886,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheet as at 30 September 2018 |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
Unaudited |
|
Audited |
|
|
|
|
|
|
|
|
30 Sep 2018 |
|
30 Sep 2017 |
|
31 Mar 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£000 |
|
£000 |
|
£000 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Investment property |
|
|
|
|
2,468,822 |
|
2,262,773 |
|
2,373,184 |
||
|
Deferred tax assets |
|
|
|
|
54 |
|
302 |
|
197 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets |
|
|
|
|
2,468,876 |
|
2,263,075 |
|
2,373,381 |
||
|
Trade and other receivables |
|
|
|
81,398 |
|
70,639 |
|
62,714 |
|||
|
Current investments |
|
|
|
|
|
154 |
|
161 |
|
158 |
|
|
Cash and cash equivalents |
|
|
|
|
|
92,794 |
|
79,917 |
|
98,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
|
|
174,346 |
|
150,717 |
|
161,624 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
2,643,222 |
|
2,413,792 |
|
2,535,005 |
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
|
|
|
|
4,074 |
|
4,074 |
|
4,074 |
|
|
Share premium |
|
|
|
|
555 |
|
555 |
|
555 |
||
|
Translation reserve |
|
|
|
|
56,207 |
|
43,032 |
|
31,384 |
||
|
Retained earnings |
|
|
|
|
1,825,678 |
|
1,635,392 |
|
1,776,889 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity attributable to equity |
|
|
|
|
|
|
|
|
|||
|
holders of the parent |
|
|
|
|
1,886,514 |
|
1,683,053 |
|
1,812,902 |
||
|
Non-controlling interest |
|
|
|
|
156 |
|
81 |
|
91 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
|
|
|
1,886,670 |
|
1,683,134 |
|
1,812,993 |
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Loans and borrowings |
|
|
308,746 |
|
297,535 |
|
296,501 |
||||
|
Deferred tax liabilities |
|
|
|
|
287,981 |
|
295,713 |
|
271,807 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current liabilities |
|
|
|
596,727 |
|
593,248 |
|
568,308 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and borrowings |
|
|
58,035 |
|
35,669 |
|
53,958 |
||||
|
Trade and other payables |
|
|
|
|
54,572 |
|
54,734 |
|
52,489 |
||
|
Current taxation |
|
|
|
|
47,218 |
|
47,007 |
|
47,257 |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Total current liabilities |
|
|
|
|
159,825 |
|
137,410 |
|
153,704 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
|
756,552 |
|
730,658 |
|
722,012 |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Total equity and liabilities |
|
|
|
|
2,643,222 |
|
2,413,792 |
|
2,535,005 |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Equity shareholders' funds per share |
|
|
|
|
£115.77 |
|
£103.28 |
|
£111.25 |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||