RNS Number:1373Q
Panther Securities PLC
25 September 2003
Panther Securities PLC, the property investment company has today announced its
interim results for the six months to 30 June 2003.
CHAIRMAN'S STATEMENT
I am pleased to report the interim figures for the six months to 30 June 2003.
Pre-tax profits amount to #1,407,000 compared to #1,417,000 for the same period
for the previous year, and although virtually the same, the quality of our
revenue has improved as it derives almost entirely from rental income.
Rental income receivable during the half year was #4,423,000 compared to
#3,508,000 in the comparable period of last year.
Eurocity Properties PLC
This company, which was taken over towards the end of last year, is now a wholly
owned subsidiary of Panther Securities PLC and following a review of its
expenses contributed a pre tax profit of #140,000 for the current period.
Major Transactions
There were no major acquisitions during the period under review although in
August we completed the acquisition of 32 & 32a Darley Street, Bradford. This
property, located in the best part of the pedestrianised section of Bradford,
cost #1.82 million and produces approximately #150,000 per annum exclusive from
Specsavers, Orange Group and others. Included in the property is some vacant
space that could be refurbished to produce extra income and we are currently
investigating this possibility.
Panther House Redevelopment
We are in advanced discussions about the potential sale of our entire Panther
House/Gray's Inn Road site with two separate parties. Under the conditional
terms agreed with both parties we would receive an initial sum and a share of
the profits on any future redevelopment. Should either of these proposals
proceed, it would be at an initial figure substantially in excess of the current
book value. A transaction of this size and nature would require shareholders'
approval, when full details would be presented to all members.
Bristol Redevelopment
I mentioned, at some length, in my last Annual Statement, the problems we are
encountering with this development. Whilst it appears that William Morrison
Supermarkets have now obtained their required changes to implement the scheme,
we have indicated that we are not prepared to proceed unless there is a more
realistic assessment placed on the value of our interests. Our own valuers
indicate that, even under compulsory purchase, we would achieve better terms
than proposed by Bristol Council which still requires an excessive amount of
social benefit from the funds raised from the sale of the site.
Finance
We currently have unutilised bank facilities of approximately #8 million
available for investment or trading, and cash balances of over #7 million which
will allow us to respond speedily to attractive opportunities which may arise.
Dividends
On 20th June 2003 we paid a special 30th anniversary interim dividend of 5p per
share. A further interim dividend of 3.5p per share will be paid on 31st October
2003, and it is the Board's intention to recommend a final dividend of no less
than 3.5p per share in due course.
Outlook
Many small to medium sized companies have experienced difficult trading
conditions as a result of additional burdens placed upon them by Central and
Local Government in the form of extra taxation and red tape. Nevertheless, we
are still securing rent increases on most properties that come up for review and
effecting satisfactory new lettings on vacant premises.
I am pleased to be able to repeat once again that with our rising rent roll,
conservative gearing, fixed interest rates and resources available to us, your
Board remains confident that our company is well placed for continued success
and, as always, I look forward to the future with optimism.
Andrew S. Perloff
Chairman 25th September 2003
Panther Securities P.L.C.
INTERIM CONSOLIDATED RESULTS
for the six months ended 30th June 2003
Six months to Six months to Year ended
30th June 30th June 31st December
2003 2002 2002
(Unaudited) (Unaudited) (Audited)
#' 000 #' 000 #' 000
Turnover 4,758 3,846 8,240
Cost of sales (894) (533) (1,389)
___________ __________ ___________
Gross profit 3,864 3,313 6,851
Administrative expenses (609) (561) (1,194)
___________ __________ ___________
Operating profit 3,255 2,752 5,657
Income from participating interests (2) 18 9
Profit on sale of investment property - - 342
Interest receivable 180 192 327
Interest payable (2,026) (1,545) (3,379)
___________ __________ ___________
Profit on ordinary activities before 1,407 1,417 2,956
taxation
Taxation (413) (457) (951)
___________ __________ ___________
Profit on ordinary activities after 994 960 2,005
taxation
Minority interests 9 (16) (11)
___________ __________ ___________
Profit attributable to members of the
parent undertaking 1,003 944 1,994
Dividends (850) (592) (1,183)
___________ __________ ___________
Retained profits for the year 153 352 811
Transferred from revaluation reserve - - 151
Purchase of own shares - - (67)
Transferred from negative goodwill reserve - - 911
Retained profit brought forward 12,297 10,491 10,491
___________ __________ ___________
Retained profit carried forward 12,450 10,843 12,297
___________ __________ ___________
Earnings per share 5.9p 5.6p 11.8p
Notes:
1. Results
The six months results have been prepared on the historical cost basis modified
to include the revaluation of fixed asset land and buildings, although no
further revaluation has been undertaken on any part of the property portfolio
since results were last reported. They are unaudited and do not constitute
statutory accounts within the meaning of section 240 of the Companies Act 1985.
2. Accounts
The figures for the year to 31st December 2002 have been extracted from the
statutory accounts which have been reported on by the Group's auditors and have
been delivered to the Registrar of Companies. The auditor's report was
unqualified and did not contain any statement under section 237(2), (3) or (4)
of the Companies Act 1985.
3. Accounting policies
Accounting policies and presentation are consistent to previous periods.
4. Dividends
A special interim dividend of 5p per ordinary share was paid on 20th June 2003
and a further interim dividend of 3.5p per ordinary share will be paid on 31st
October 2003 to shareholders on the Register on 3rd October 2003.
5. Earnings per share
Earnings per ordinary share have been calculated on profit attributable to
members of the holding company and on 16,986,593 (June 2002 - 16,947,117)
ordinary shares being the weighted average number of ordinary shares in issue
throughout the six months ended 30th June 2003.
6. Copies of this report are to be sent to all shareholders and are available
from the Company's registered office at Panther House, 38 Mount Pleasant, London
WC1X 0AP.
Panther Securities P.L.C.
CONSOLIDATED BALANCE SHEET
for the six months ended 30th June 2003
30th June 30th June 31st December
2003 2002 2002
(Unaudited) (Unaudited) (Audited)
#' 000 #' 000 #' 000
Fixed assets
Tangible assets 79,807 76,501 79,769
Negative goodwill (791) (204) (893)
Investments 288 299 290
___________ __________ ___________
79,304 76,596 79,166
___________ __________ ___________
Current assets
Stock 7,104 5,208 7,147
Current asset investments 945 239 1,015
Debtors 2,422 1,841 1,999
Cash at bank and in hand 9,230 10,255 9,690
___________ __________ ___________
19,701 17,543 19,851
Current liabilities
Creditors:
amounts falling due within one year (9,755) (5,355) (7,258)
___________ __________ ___________
Net current assets 9,946 12,188 12,593
___________ __________ ___________
Total assets less current liabilities 89,250 88,784 91,759
Creditors
amounts falling due after more than one year (50,715) (49,610) (53,253)
Minority interests (94) (1,636) (266)
___________ __________ ___________
Net assets 38,441 37,538 38,240
___________ __________ ___________
Capital and reserves
Share capital 4,250 4,237 4,226
Revaluation reserve 18,072 17,913 18,072
Profit and loss account 12,450 10,843 12,297
Share premium account 2,886 2,862 2,862
Negative goodwill reserve 212 1,123 212
Capital redemption reserve 571 560 571
___________ __________ ___________
Shareholders' funds 38,441 37,538 38,240
___________ __________ ___________
Net assets per share 226.2p 221.5p 226.2p
Panther Securities P.L.C.
GROUP CASH FLOW STATEMENT
for the six months ended 30th June 2003
Six months to Six months to Year ended
30th June 30th June 31st December
2003 2002 2002
(Unaudited) (Unaudited) (Audited)
#' 000 #' 000 #' 000
Cash inflow from operating activities 3,356 2,144 3,651
Returns on investments and
servicing of finance
Interest received 180 192 327
Interest paid (2,026) (1,545) (3,379)
Net cash outflow from returns on
investments and servicing of finance (1,846) (1,353) (3,052)
Taxation
Corporate tax paid (14) (7) (864)
Capital expenditure and financial investment
Purchase of investments (264) - (1,000)
Sale of investments - - 1,353
Sale of tangible fixed assets -
Purchase of other tangible fixed assets (44) (3,828) (7,817)
Net cash outflow from capital
expenditure and financial investment (308) (3,828) (7,464)
Acquisitions and disposals
Purchase of subsidiary undertaking - (139) (817)
Cash at bank acquired with subsidiary - 310 310
Net cash inflow/(outflow) from
Acquisitions and disposals - 171 (507)
Equity dividends paid (1,435) (932) (1,524)
___________ __________ ___________
Cash outflow before use of
liquid resources and financing (247) (3,805) (9,760)
Financing
(Decrease)/increase in debt (223) 4,869 10,289
Issue of ordinary share capital 48 - -
Purchase of own shares - - (67)
(175) 4,869 10,222
___________ __________ ___________
Increase/(decrease) in cash (422) 1,064 462
___________ __________ ___________
Panther Securities P.L.C.
NOTES TO GROUP CASH FLOW STATEMENT
for the six months ended 30th June 2003
1. Reconciliation of net cash flow to movement in net debt
Six months to Six months to Year ended
30th June 30th June 31st December
2003 2002 2002
(Unaudited) (Unaudited) (Audited)
#' 000 #' 000 #' 000
Increase/(decrease) in cash in the period (422) 1,064 462
Loans acquired on acquisition - (8,095) (8,094)
Cash (outflow)/inflow from increase in debt 223 (4,869) (10,289)
___________ __________ ___________
Change in net debt arising from cash flows (199) (11,900) (17,921)
Net debt at start of period (46,019) (28,098) (28,098)
___________ __________ ___________
Net debt at period end (46,218) (39,998) (46,019)
___________ __________ ___________
2. Analysis of net debt At At
1st January 30th June
2003 Cash flow 2003
#' 000 #' 000 #' 000
Cash at bank and in hand 9,690 (460) 9,230
Overdrafts (39) 38 (1)
___________ __________ ___________
9,651 (422) 9,229
Debt due within one year (2,418) (2,314) (4,732)
Debt due after one year (53,252) 2,537 (50,715)
___________ __________ ___________
(55,670) 223 (55,447)
___________ __________ ___________
(46,019) (199) (46,218)
___________ __________ ___________
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