TIDMHCFT
RNS Number : 6065K
Highcroft Investments PLC
03 September 2021
Highcroft Investments PLC
Interim Report for the six months ended 30 June 2021
Key Highlights:
*Gross rental income decreased 2% to GBP2,977,000 (2020
GBP3,044,000)
*Net rental income decreased 2% to GBP2,735,000 (2020
GBP2,777,000)
*89% occupancy in the property portfolio (2020 99%)
*90% of Q1 rent, 96% of Q2 rent and 95% of Q3 rent, due to date,
collected
*Adjusted earnings per share reduced 21% to 28.3p (2020
35.9p)
*Total earnings per share 118.8p (2020 51.4p loss)
*Property valuation increased by 5.7% to GBP86,745,000 (December
2020 GBP82,060,000)
*Net assets per share increased 7.3% to 1185p (June 2020 1095p,
December 2020 1104p)
*Loan to value 31.4% (June 2020 31.9%, December 2020 33.1%)
Dear Shareholder
I am writing to report our half year 2021 results. Whilst the
effects of COVID-19 have continued to impact on our everyday life
it would appear we are starting to see the situation improve
slightly off the back of a hugely appreciated effort by the NHS to
vaccinate as many of us as possible.
When considering the recent challenging circumstances, I am very
pleased with our performance for the first half of 2021 with 93% of
rent collected for the period and just a 2% fall in gross and net
rental income. A very strong 5.7% increase in property valuation
which in turn has led to an 7.3% increase in net assets per share
to 1185p that takes the net asset value back above the pre-pandemic
level (December 2019, 1175p per share). This 5.7% increase is made
up of a 4.3% negative movement in our high street retail properties
which now only account for 6.1% of our portfolio but a strong
upward movement of 10% in our industrial portfolio. This overall
movement compares favourably with the MSCI All property index of
2.9% for the same period and is underpinned by new leases at our St
Austell property and one of our Wisbech units, one positive rent
review. At the period end three of our properties were void,
representing 11% of our rental income. We are negotiating a new
lease on one of these units representing 4% of our rental income,
and we are actively engaged in seeking new tenants for the
others.
We continue to take a conservative view on debt and remain
comfortable with our 31.4% LTV position at the period end.
During the period we exchanged contracts, with a conditional
completion arrangement, for the sale of long-leasehold retail
warehouse property in Andover let to Jewsons. I am pleased to
report that the conditions were met last week, and we completed the
transaction, after the period end, on 23 August 2021 generating
gross sales proceeds of GBP3.55m, a premium of 9.2% over the
valuation at 31 December 2020.
Dividend
I am pleased to report an interim property income distribution
of 22p (2020 21p) per share, payable on 15 October 2021 to
shareholders on the register at 17 September 2021 (with an
ex-dividend date of 16 September 2021).
Outlook
Whilst there appears to be growing evidence that the COVID-19
pandemic is abating we, as a board, will continue to take a prudent
view and monitor the situation closely. We will continue to work
closely with our tenants and support them where we can whilst at
the same time keeping our gearing low and a healthy cash balance to
ensure we are well positioned as we start to return to some degree
of normality again.
Charles Butler
Chairman
2 September 2021
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 which is part of UK law
by virtue of the European Union (Withdrawal) Act 2018.
For further information, contact:
Highcroft Investments PLC
Charles Butler/Roberta Miles +44 (0)1869 352766
Singer Capital Markets Advisory LLP
Peter Steel / Amanda Gray - Corporate Finance
Tom Salvesen - Corporate Broking
+44 (0)20 7496 3000
Independent review report to Highcroft Investments PLC
We have been engaged by Highcroft Investments PLC ("the
Company") to review the financial information for the six months
ended 30 June 2021 which comprises the condensed consolidated
interim statement of comprehensive income, the condensed
consolidated interim statement of financial position, the condensed
consolidated interim statement of changes in equity, the condensed
consolidated interim statement of cash flows and related notes 1 to
13. We have read the other information contained in the interim
report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial
information.
This report is made solely to the Company in accordance with
International Standard on Review Engagements (UK and Ireland) 2410
issued by the Financial Reporting Council and our Engagement Letter
dated 07 July 2021. Our work has been undertaken so that we might
state to the Company those matters we are required to state to them
in an independent review report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company, for our review
work, for this report, or for the conclusions we have formed.
Respective responsibilities of directors and auditor
The interim report, including the financial information
contained therein, is the responsibility of, and has been approved
by, the Directors. The Directors are responsible for preparing the
interim report in accordance with International Accounting Standard
34, 'Interim Financial Reporting', as adopted by the United Kingdom
and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority, which requires that the
interim report must be prepared and presented in a form consistent
with that which will be adopted in the Company's annual accounts
having regard to the accounting standards applicable to such annual
accounts.
Our responsibility is to express to the Company a conclusion on
the condensed consolidated financial information in the interim
report based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Financial Reporting Council for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed consolidated financial
information in the interim report does not give a true and fair
view of the financial position of the parent and subsidiary
entities as at 30 June 2021 and of its financial performance and
its cash flows for the six months then ended, in accordance with
International Accounting Standard 34, 'Interim Financial
Reporting', as adopted by the United Kingdom and the Disclosure
Guidance and Transparency Rules of the United Kingdom's Financial
Conduct Authority.
Stephen Eames (Senior Statutory Auditor) for and on behalf of
Mazars LLP
Chartered Accountants and Statutory Auditor
The Pinnacle
160 Midsummer Boulevard
Milton Keynes
MK9 1FF
2 September 2021
Notes:
(a) The maintenance and integrity of the Highcroft Investments
PLC's web site is the responsibility of the Directors; the work
carried out by us does not involve consideration of these matters
and, accordingly, we accept no responsibility for any changes that
may have occurred to the interim report since it was initially
presented on the web site.
(b) Legislation in the United Kingdom governing the preparation
and dissemination of financial information may differ from
legislation in other jurisdictions.
Condensed consolidated interim statement of comprehensive income
(unaudited)
for the six months ended 30 June 2021
Unaudited Unaudited
First half 2021 First half 2020
---- ---------------------------- ----------------------------
Revenue Capital Total Revenue Capital Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---- -------- -------- -------- -------- -------- --------
Continuing operations
---- -------- -------- -------- -------- -------- --------
Gross rental income 2,977 - 2,977 3,044 - 3,044
---- -------- -------- -------- -------- -------- --------
Bad debt provision (127) - (127) (195) - (195)
---- -------- -------- -------- -------- -------- --------
Property operating
expenses (115) - (115) (72) - (72)
---- -------- -------- -------- -------- -------- --------
Net rental income 2,735 - 2,735 2,777 - 2,777
---- -------- -------- -------- -------- -------- --------
Valuation gains on
investment property - 5,275 5,275 - 600 600
---- -------- -------- -------- -------- -------- --------
Valuation losses on
investment property - (590) (590) - (5,115) (5,115)
---- -------- -------- -------- -------- -------- --------
Net valuation gains/(losses)
on investment property 7 - 4,685 4,685 - (4,515) (4,515)
---- -------- -------- -------- -------- -------- --------
Administrative expenses (539) - (539) (471) - (471)
---- -------- -------- -------- -------- -------- --------
Operating profit before
net financing costs 2,196 4,685 6,881 2,306 (4,515) (2,209)
---- -------- -------- -------- -------- -------- --------
Finance income 1 - 1 2 - 2
---- -------- -------- -------- -------- -------- --------
Finance expenses (425) - (425) (458) - (458)
---- -------- -------- -------- -------- -------- --------
Net finance costs (424) - (424) (456) - (456)
---- -------- -------- -------- -------- -------- --------
Profit/(loss) before
tax 1,772 4,685 6,457 1,850 (4,515) (2,665)
---- -------- -------- -------- -------- -------- --------
Income tax (charge)/credit 4 (304) - (304) 8 - 8
---- -------- -------- -------- -------- -------- --------
Total profit/(loss)
and comprehensive
income for the financial
period 1,468 4,685 6,153 1,858 (4,515) (2,657)
---- -------- -------- -------- -------- -------- --------
Basic and diluted
earnings
per share 6 118.8p (51.4p)
---- -------- -------- -------- -------- -------- --------
Condensed consolidated interim statement of financial position
(unaudited)
as at 30 June 2021
Unaudited Audited
30 June 31 December
2021 2020
Note GBP'000 GBP'000
Assets
---- --------- ------------
Investment property 7 83,195 78,810
---- --------- ------------
Total non-current assets 83,195 78,810
---- --------- ------------
Current assets
---- --------- ------------
Trade and other receivables 1,616 1,692
---- --------- ------------
Cash at bank and in hand 2,772 3,295
---- --------- ------------
4,388 4,987
---- --------- ------------
Assets classified as held for sale 7 3,550 3,250
---- --------- ------------
Total current assets 7,938 8,237
---- --------- ------------
Total assets 91,133 87,047
---- --------- ------------
Liabilities
---- --------- ------------
Current liabilities
---- --------- ------------
Interest bearing loan 8 (7,500) -
---- --------- ------------
Trade and other payables (2,510) (2,726)
---- --------- ------------
Total current liabilities (10,010) (2,726)
---- --------- ------------
Non-current liabilities
---- --------- ------------
Interest-bearing loans and borrowings 8 (19,700) (27,200)
---- --------- ------------
Total non-current liabilities (19,700) (27,200)
---- --------- ------------
Total liabilities (29,710) (29,926)
---- --------- ------------
Net assets 61,423 57,121
---- --------- ------------
Equity
---- --------- ------------
Issued share capital 1,296 1,294
---- --------- ------------
Share premium 117 51
---- --------- ------------
Share based payment reserve 58 43
---- --------- ------------
Other equity reserve (121) (53)
---- --------- ------------
Revaluation reserve - property 16,803 12,814
---- --------- ------------
Revaluation reserve - other - -
---- --------- ------------
Capital redemption reserve 95 95
---- --------- ------------
Realised capital reserve 28,995 28,995
---- --------- ------------
Retained earnings 14,180 13,882
---- --------- ------------
Total equity 61,423 57,121
---- --------- ------------
Condensed consolidated interim statement of changes in
equity
for the six months ended 30 June 2021
Issued Share Share Other Capital Realised Retained Total
share premium based equity redemption Capital earnings
capital payment reserve Revaluation
(note reserve
10) property
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
At 1 January 2021 1,294 51 43 (53) 12,814 95 28,995 13,882 57,121
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Transactions with
owners:
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Dividends - - - - - - (1,866) (1,866)
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Issue of shares 2 66 - (68) - - - - -
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
2 66 - (68) - - - (1,866) (1,866)
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Reserve transfers:
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Non-distributable
items recognised
in income statement:
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Revaluation losses - - - - (590) - - 590 -
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Revaluation gains - - - - 5,275 - - (5,275) -
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Excess of cost over
revalued amount
taken to retained
earnings - - - - (696) - - 696 -
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
- - - - 3,989 - - (3,989) -
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Share award expensed - - 15 - - - - - 15
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Total profit and
comprehensive income
for the period - - - - - - - 6,153 6,153
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
At 30 June 2021 1,296 117 58 (121) 16,803 95 28,995 14,180 61,423
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Issued Share Share Other Capital Realised Retained Total
share premium based equity redemption Capital earnings
capital payment reserve Revaluation
First half 2020 (note reserve reserve
Unaudited 10) property
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
At 1 January 2020 1,292 - 12 - 12,931 95 28,995 17,396 60,721
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Transactions with
owners:
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Dividends - - - - - - - (1,397) (1,397)
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Issue of shares 2 51 - (53) - - - - -
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
2 51 - (53) - - - (1,397) (1,397)
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Reserve transfers:
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Non-distributable
items recognised
in income statement:
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Revaluation losses - - - - (5,115) - - 5,115 -
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Revaluation gains - - - - 600 - - (600) -
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Excess of cost over
revalued amount
taken to retained
earnings - - - - 1,098 - - (1,098) -
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
- - - - (3,417) - - 3,417 -
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Share award expensed - - 7 - - - - - 7
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Loss and total
comprehensive
income for the
period - - - - - - - (2,657) (2,657)
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
At 30 June 2020 1,294 51 19 (53) 9,514 95 28,995 16,759 56,674
-------- -------- -------- -------- ----------- ----------- -------- --------- -------
Condensed consolidated interim statement of cashflows
for the six months ended 30 June 2021
Unaudited Unaudited
First First
half half
2021 2020
GBP'000 GBP'000
Operating activities
--------- ---------
Profit/(loss) before tax for the period 6,457 (2,665)
--------- ---------
Adjustments for:
--------- ---------
Net valuation (gains)/losses on investment
property (4,685) 4,515
--------- ---------
Share based payment expense 15 7
--------- ---------
Finance income received (1) (2)
--------- ---------
Finance expense paid 425 458
--------- ---------
Operating cash flow before changes in working
capital and provisions 2,211 2,313
--------- ---------
Decrease/(increase) in trade and other receivables 76 (393)
--------- ---------
(Decrease)/increase in trade and other payables (216) 131
--------- ---------
Cash generated from operations 2,071 2,051
--------- ---------
Finance income received 1 2
--------- ---------
Finance expense paid (425) (458)
--------- ---------
Income tax (paid)/received (304) 22
--------- ---------
Net cash flows from operating activities 1,343 1,617
--------- ---------
Investing activities
--------- ---------
Purchase of fixed assets - investment property - -
--------- ---------
Sale of fixed assets - equity investments - -
--------- ---------
Net cash flows from investing activities - -
--------- ---------
Financing activities
--------- ---------
Dividends paid (1,866) (1,397)
--------- ---------
Repayment of bank borrowings - -
--------- ---------
New bank borrowings - -
--------- ---------
Net cash flows from financing activities (1,866) (1,397)
--------- ---------
Net (decrease)/increase in cash and cash equivalents (523) 220
--------- ---------
Cash and cash equivalents at 1 January 3,295 1,559
--------- ---------
Cash and cash equivalents at period end 2,772 1,779
--------- ---------
Notes (Unaudited)
for the six months ended 30 June 2021
1. Nature of operations and general information
Highcroft Investments PLC ('Highcroft' or 'company') and its
subsidiaries' (together 'the group') principal activity is
investment in property. It is incorporated and domiciled in Great
Britain. The address of Highcroft's registered office, which is
also its principal place of business, is Park Farm Technology
Centre, Akeman Street, Kirtlington, OX5 3JQ. Highcroft's condensed
consolidated interim financial statements are presented in Pounds
Sterling (GBP), which is also the functional currency of the group.
These condensed consolidated interim financial statements have been
approved for issue by the directors on 2 September 2021. The
financial information for the period ended 30 June 2021 set out in
this interim report does not constitute statutory accounts as
defined in Section 404 of the Companies Act 2006. The group's
statutory financial statements for the year ended 31 December 2020
have been filed with the Registrar of Companies. The auditor's
report on those financial statements was unqualified and did not
contain statements under Section 498(2) or Section 498(5) of the
Companies Act 2006.
2. Basis of preparation
These unaudited condensed consolidated interim financial
statements are for the six months ended 30 June 2021. They have
been prepared in accordance with IAS 34, Interim Financial
Reporting. They do not include all of the information required for
full annual financial statements and should be read in conjunction
with the consolidated financial statements of the group for the
year ended 31 December 2020.
These unaudited condensed consolidated interim financial
statements have been prepared under the historical cost convention,
as modified by the revaluation of investment properties. These
unaudited condensed consolidated interim financial statements have
been prepared in accordance with the accounting policies adopted in
the last annual financial statements for the year to 31 December
2020.
The accounting policies have been applied consistently
throughout the group for the purposes of preparation of these
unaudited condensed consolidated interim financial statements.
The unaudited condensed consolidated interim financial
statements are drawn up on a going concern basis. The directors
have a reasonable expectation that the group has adequate resources
to continue in operational existence for the foreseeable future and
consider that there are no material uncertainties that lead to
significant doubt upon the group's ability to continue as a going
concern. Cash flow forecasts are prepared annually as part of the
planning and budgeting process and are monitored and reworked
regularly. The group has fixed-term non-amortising borrowing and
has additional headroom available. The loan that falls due for
repayment within one year can be refinanced under the existing
arrangements with Handelsbanken plc.
3. Segment reporting
The group has one main business segment, property investment
which is based in England and Wales.
In the first six months of 2021 the largest tenant represented
12% (2020 11%) and the second largest tenant represented 9% (2020
7%) of gross commercial property income for the period.
4. Income tax credit/(charge)
First First
half half
2021 2020
GBP'000 GBP'000
Current tax:
-------- --------
On revenue profits - prior year 304 8
current year - -
-------- --------
Total tax 304 8
-------- --------
The current year taxation charge has been based on the estimated
effective tax rate for the full year. As a Real Estate Investment
Trust the group does not pay corporation tax on its profits and
gains from its property activities. The tax charge arising in 2021
in respect of the prior year relates to the write-off of
GBP1.6million of the outstanding PID pool.
Notes (Unaudited) (continued)
for the six months ended 30 June 2020
5. Dividends
On 3 September 2021, the directors declared a property income
distribution of 22p per share (2020 21p per share) payable on 15
October 2021 to shareholders registered at 17 September 2021.
The following property income distributions have been paid by
the company:
First First
half half
2021 2020
GBP'000 GBP'000
2020: final 27p and 2020 special 6p per ordinary
share (2019 final 27p) 1,866 1,397
-------- --------
6. Earnings per share
The calculation of earnings per share is based on the profit for
the period of GBP6,153,000 (2020 loss GBP2,657,000) and on
5,178,943 shares which is the weighted average number of shares in
issue during the period ended 30 June 2021 (2020 5,169,695).
In order to draw attention to the impact of valuation gains and
losses which are included in the income statement but not available
for distribution under the company's articles of association, an
adjusted earnings per share based on the profit available for
distribution of GBP1,468,000 (2020 GBP1,858,000) has been
calculated.
First First
half half
2021 2020
GBP'000 GBP'000
Earnings:
-------- --------
Basic earnings 6,153 (2,657)
-------- --------
Adjustments for:
-------- --------
Net valuation (gains)/losses on investment
property (4,685) 4,515
-------- --------
Adjusted earnings 1,468 1,858
-------- --------
Per share amount:
-------- --------
Earnings per share (unadjusted) 118.8p (51.4p)
-------- --------
Adjustments for:
-------- --------
Net valuation (gains)/ losses on investment
property (90.5p) 87.3p
-------- --------
Adjusted earnings per share 28.3p 35.9p
-------- --------
Notes (Unaudited) (continued)
for the six months ended 30 June 2021
7. Investment property
First
half Full year
2021 2020
GBP'000 GBP'000
Valuation at 1 January 82,060 86,710
-------- ---------
Gain/(loss) on revaluation 4,685 (4,650)
-------- ---------
Valuation at period end 86,745 82,060
-------- ---------
Less property held for sale categorised as
current asset (3,550) (3,250)
-------- ---------
Property categorised as fixed asset 83,195 78,810
-------- ---------
The directors have used an external independent valuation of
properties at 30 June 2021 which has been carried out consistently
with the annual valuation.
8. Interest bearing loans
30 June 31 December
2021 2020
GBP'000 GBP'000
Short-term bank loans due within one year 7,500 -
-------- -----------
Medium-term loans 19,700 27,200
-------- -----------
The medium-term bank loans comprise amounts
falling due as follows:
-------- -----------
Between one and two years - 7,500
-------- -----------
Between two and five years - -
-------- -----------
Over five years 19,700 19,700
-------- -----------
The debt is secured on certain assets within the group's
property portfolio. The group has a facility in place with its
primary banker to enable it to re-finance the loan falling due in
May 2022 on similar terms to the existing loans.
9. Share capital
First
half Full year
2021 2020
Allotted, called up and fully paid ordinary
shares of 25p each
--------- ---------
At I January 5,175,175 5,167,240
--------- ---------
Issued in the year in connection with the
Highcroft incentive plan 8,524 7,935
--------- ---------
At period end 5,183,699 5,175,175
--------- ---------
Notes (Unaudited) (continued)
for the six months ended 30 June 2021
10. Related party transactions
Kingerlee Holdings Limited owns, through its wholly owned
subsidiaries, 27.2% (2020 27.2%) of the company's shares and D H
Kingerlee is a director of both the company and Kingerlee Holdings
Limited.
During the period, the group made purchases from Kingerlee
Limited, a subsidiary of Kingerlee Holdings Limited, being a
service charge in relation to services at Thomas House, Kidlington,
the previous registered office of the company of GBP1,000 (2020
GBP7,000). The amount owed at 30 June 2021 was GBPnil (2020
GBPnil). In addition, the group recharged professional fees of
GBP12,000 to Kingerlee Holdings Limited in connection with
additional fees connected with the group reporting requirement for
the 2020 audit. The amount owed at 30 June 2021 was GBPnil (2020
GBPnil). All transactions were undertaken on an arm's length
basis.
During the period GBP507,000 (2020 GBP380,000) of dividend was
paid to the wholly owned subsidiaries of Kingerlee Holdings Limited
in respect of their shareholdings.
During the period ordinary shares of 25p each were issued under
the Highcroft incentive plan to the following directors of the
company: Simon Gill 4,534 (2020 4,309) and Roberta Miles 3,990
(2020 3,626).
During the period the following dividends were paid to directors
of the company in respect of their shareholdings:
First First
half half
2021 2020
GBP'000 GBP'000
Simon Gill 3 1
-------- --------
David Kingerlee 32 24
-------- --------
Roberta Miles 5 3
-------- --------
11. Net assets per share
First First
half half Full year
2021 2020 2020
Net assets GBP61,423,000 GBP56,674,000 GBP57,121,000
------------- ------------- -------------
Ordinary shares in issue 5,183,699 5,175,175 5,175,175
------------- ------------- -------------
Basic net assets per share 1185p 1095p 1104p
------------- ------------- -------------
12. Fair value of financial instruments
The fair values of loans and receivables and financial
liabilities held at amortised cost were not materially different
from book values.
13. Post balance sheet events
After the period end the group completed on the sale of its
long-leasehold investment property in Andover let to Jewsons, for
sales proceeds of GBP3,550,000, its valuation at 30 June 2021 and
9.2% above its valuation at 31 December 2020.
Statement of principal risks and uncertainties
The directors consider that there have been no material changes
to the group's principal risks as set out in detail on pages 30 and
31 of the annual report and accounts for the year ended 31 December
2020. These principal risk areas can be summarised as:
External risks Internal risks
Macro-economic outlook Business strategy
------------------
Political and regulatory outlook Key personnel
------------------
Occupier demand and tenant default
------------------
Commercial property investor demand
------------------
Availability and cost of finance
and debt covenant requirements
------------------
Statement of directors' responsibilities
The directors confirm that, to the best of their knowledge, this
condensed consolidated set of half-year financial statements has
been prepared in accordance with IAS 34. The half-year management
report includes a fair review of the information required by 4.2.7
and 4.2.8 of the Disclosure and Transparency Rules of the United
Kingdom's Financial Conduct Authority, namely:
-- an indication of the important events that have occurred
during the first six months of the financial year ending 31
December 2021 and their impact on the condensed consolidated set of
half-year financial statements, and a description of the principal
risks and uncertainties for the remaining six months of the
financial year; and
-- disclosure of material related party transactions in the
first six months of the financial year, and any material changes in
the related party transactions described in the last annual
report.
A list of current directors is maintained on the Highcroft
Investments PLC website: www.highcroftplc.com.
By order of the board.
Charles Butler
Chairman
2 September 2021
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END
IR FLFVRAFIFIIL
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