Daejan Hldgs PLC - Half-year Report

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

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