TIDM37QC
RNS Number : 6938W
Meadowhall Finance PLC
31 July 2009
The Annul Report and Accounts for the year ended 31 March 2009, attached below
in accordance with DTR 6.3.5(2), has been submitted to the Financial Service
Authority and will shortly be available for inspection at the UK Listing
Authority's Documents Viewing Facility which is situated at The Financial
Services Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS.
The Annual Report and Accounts are also available at
http://www.britishland.com/meadowhallsec_reports.htm
MEADOWHALL FINANCE PLC
COMPANY NO: 5987141
ANNUAL REPORT AND ACCOUNTS
YEAR ENDED 31 MARCH 2009
+-----------+----------+----------+----------+----------+----------+----------+---------++
| REPORT OF THE DIRECTORS |
+----------------------------------------------------------------------------------------+
| for the year ended 31 March 2009 |
+----------------------------------------------------------------------------------------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| The directors present their Annual Report and audited Accounts for the year ended 31 |
| March 2009. |
+----------------------------------------------------------------------------------------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| Principal Activities |
+----------------------------------------------------------------------------------------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| The company is a wholly owned subsidiary of Meadowhall Limited Partnership, which |
| itself is wholly owned by MSC Property Intermediate Holdings Limited (the 'Group'). |
+ +
| | |
+----------------------------------------------------------------------------------------+-----------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| MSC Property Intermediate Holdings Limited operates as a joint venture between The |
| British Land Company PLC and LSP Green Park Property Trust. The joint venture was |
| created on 11 February 2009 when The British Land Company PLC sold a 50% interest to |
| LSP Green Park Property Trust. |
+ +
| | |
+ +-----------+
| | |
+----------------------------------------------------------------------------------------+-----------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| The company's principal activity is to provide funding to fellow subsidiaries of MSC |
| Property Intermediate Holdings Limited, the joint venture. |
+ +
| | |
+----------------------------------------------------------------------------------------+-----------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| Business Review |
+----------------------------------------------------------------------------------------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| As shown in the company's profit and loss account on page 5, the profit before tax |
| remains consistent with prior year. |
+----------------------------------------------------------------------------------------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| The directors do not recommend the payment of a dividend (2008- GBPnil). |
+----------------------------------------------------------------------------------------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| The balance sheet on page 6 shows that the company's financial position at the year |
| end has changed due to the valuation movement on the interest rate SWAP which has been |
| recorded in the hedging and translation reserve. This has had the effect of putting |
| the company into a net liability position. |
+ +
| | |
+ +-----------+
| | |
+----------------------------------------------------------------------------------------+-----------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| The company's directors believe that further key performance indicators for the |
| company are not necessary or appropriate for an understanding of the development, |
| performance or position of the business. |
+ +
| | |
+----------------------------------------------------------------------------------------+-----------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| Details of significant events since the balance sheet date are contained in note 16 of |
| the financial statements. |
+----------------------------------------------------------------------------------------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| Risk Management |
+----------------------------------------------------------------------------------------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| This company is part of a property investment group. As such fundamental underlying |
| risks for this company are that of the property group as discussed below. |
+ +
| | |
+----------------------------------------------------------------------------------------+-----------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| The Group's objective is to achieve attractive long-term returns whilst minimising |
| risks. In order to identify and evaluate risks and design controls to mitigate them, a |
| regular comprehensive assessment is undertaken which has identified certain individual |
| risks affecting the Group and company, most of which arise out of natural market |
| volatility, relating to supply and demand imbalances in the following areas: |
| |
+ +
| | |
+ +-----------+
| | |
+ +-----------+
| | |
+----------------------------------------------------------------------------------------+-----------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| - demand for space from occupiers against available supply (including new |
| developments); |
| - differential pricing for premium locations and buildings; |
| - alternative uses for buildings (including redevelopment); |
| - demand for returns from investors in property, compared to other asset classes; |
| - price differentials for capital to finance the business; |
| - legislative changes, including planning consents and taxation; |
| - economic cycles, including the impact on tenant covenant quality, interest rates, |
| inflation and property values; and |
| - construction pricing and programming. |
+ +
| | |
+ +-----------+
| | |
+ +-----------+
| | |
+ +-----------+
| | |
+ +-----------+
| | |
+ +-----------+
| | |
+ +-----------+
| | |
+----------------------------------------------------------------------------------------+-----------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| These opportunities also represent risks, the most significant being change to the |
| value of the property portfolio. This risk has high visibility to senior executives |
| and is considered and managed on a continuous basis. Executives use their knowledge |
| and experience to knowingly accept a measured degree of market risk. |
+ +
| | |
+ +-----------+
| | |
+----------------------------------------------------------------------------------------+-----------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| The company's preference for prime assets and their secure long term contracted rental |
| income, primarily with upward only rent review clauses, present lower risks than many |
| other property portfolios. |
+ +
| | |
+----------------------------------------------------------------------------------------+-----------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| The directors consider that in the medium to long term interest rates will rise again |
| and since the company is fully hedged, performance will remain unaffected. Also the |
| ability of the company to meet its external debt servicing is also unaffected by |
| adverse movements from the mark to market of interest rate derivatives. |
+ +
| | |
+ +-----------+
| | |
+ +-----------+
| | |
+----------------------------------------------------------------------------------------+-----------+
| External loans are subsequently lent on to a related partnership, Meadowhall Limited |
| Partnership. This partnership holds investment properties valued at GBP1,142m and has |
| net assets of GBP329m and is considered to be well capitalised. |
+ +
| | |
+ +-----------+
| | |
+----------------------------------------------------------------------------------------+-----------+
| The directors consider the company to be a going concern and the accounts are prepared |
| on this basis. Details of this are shown in note 1 of the financial statements. |
+ +
| | |
+----------------------------------------------------------------------------------------+-----------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| Interest rate management |
+----------------------------------------------------------------------------------------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+----------+
| The company borrows at fixed and floating rates and uses derivatives (primarily |
| interest rate swaps) to achieve a 100% fixed rate profile (refer to note 9). The |
| interest rate profile is closely monitored as part of the management of the overall |
| financial effect of transactions. The finance raised has been lent on to a fellow |
| group undertaking, Meadowhall Limited Partnership, interest is charged to this |
| partnership at external rates plus a 0.01% margin. |
+ +
| | |
+ +-----------+
| | |
+ +-----------+
| | |
+ +-----------+
| | |
+----------------------------------------------------------------------------------------+-----------+
| | | | | | | | |
+-----------+----------+----------+----------+----------+----------+----------+---------++
Liquidity and cash management
+----------+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+
| | | | | | | | |
+----------------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| The company maintains undrawn revolving bank facilities to provide financial liquidity. These can |
| be drawn/repaid at short notice without additional expense, reducing the need to hold liquid |
| resources in cash and deposits. |
+ +
| | |
+----------------------------------------------------------------------------------------------------+----------+
| Environment | | | | | | | |
+----------------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| | | | | | | | |
+----------------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| The company recognises the importance of its environmental responsibilities, monitors its impact |
| on the environment, and designs and implements policies to reduce any damage that might be caused |
| by the company's activities. The company operates in accordance with best practice policies and |
| initiatives designed to minimise the company's impact on the environment include safe disposal of |
| manufacturing waste, recycling and reducing energy consumption. |
+ +
| | |
+ +----------+
| | |
+ +----------+
| | |
+----------------------------------------------------------------------------------------------------+----------+
| | | | | | | | |
+----------------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Directors |
+----------------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| The directors who served throughout the period were, except as | | | |
| noted: | | | |
+----------------------------------------------------------------+-----------+-----------+-----------+
| | | | | |
+----------------+-----------+-----------+-----------+-----------------------------------------------+
| S A M Hester (Resigned 15 November 2008) |
+----------------------------------------------------------------------------------------------------+
| G C Roberts (Resigned 4 February 2009) |
+----------------------------------------------------------------------------------------------------+
| A Braine (Resigned 4 February 2009) |
+----------------------------------------------------------------------------------------------------+
| L M Bell (Resigned 4 February 2009) |
+----------------------------------------------------------------------------------------------------+
| P C Clarke (Resigned 4 February 2009) |
+----------------------------------------------------------------------------------------------------+
| J Bishop (Alternate) (Appointed 8 April 2009) | | | | |
+----------------------------------------------------+-----------+-----------+-----------+-----------+
| C M J Forshaw (Alternate) (Appointed 6 March 2009) | | | |
+----------------------------------------------------------------+-----------+-----------+-----------+
| J Duzniak (Alternate) (Appointed 8 April 2009) | | | | |
+----------------------------------------------------+-----------+-----------+-----------+-----------+
| A M Jones (Appointed 4 February 2009) |
+----------------------------------------------------------------------------------------------------+
| S M Little (Appointed 11 February 2009) |
+----------------------------------------------------------------------------------------------------+
| M McGann (Appointed 11 February 2009) |
+----------------------------------------------------------------------------------------------------+
| H R Mould (Appointed 11 February 2009) | | | | |
+----------------------------------------------------+-----------+-----------+-----------+-----------+
| T A Roberts (Alternate) (Appointed 8 April 2009) | | | |
+----------------------------------------------------------------+-----------+-----------+-----------+
| A D Smith (Appointed 4 February 2009) | | | | |
+----------------------------------------------------+-----------+-----------+-----------+-----------+
| M A Stirling (Appointed 4 February 2009) | | | | |
+----------------------------------------------------+-----------+-----------+-----------+-----------+
| P L Vaughan (Alternate) (Appointed 8 April 2009) | | | |
+----------------------------------------------------------------+-----------+-----------+-----------+
| N M Webb (Alternate) (Appointed 8 April 2009) | | | | |
+----------------------------------------------------+-----------+-----------+-----------+-----------+
| | | | | | | | |
+----------------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Statement of directors' responsibilities |
+----------------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| The directors are responsible for preparing the Annual Report and the financial statements in |
| accordance with applicable law and regulations. |
+----------------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Company law requires the directors to prepare financial statements for each financial year. Under |
| that law the directors have elected to prepare the financial statements in accordance with United |
| Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable |
| law). The financial statements are required by law to give a true and fair view of the state of |
| affairs of the company and of the profit or loss of the company for that period. In preparing |
| these financial statements, the directors are required to: |
+----------------------------------------------------------------------------------------------------+
| |
+----------------------------------------------------------------------------------------------------+
| | | | | | | | |
| | | | | | | | |
+----------------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| - | select suitable accounting policies and then apply them consistently; |
+----------------+-----------------------------------------------------------------------------------+
| | | | | | | | |
+----------------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| - | make judgments and estimates that are reasonable and prudent; |
+----------------+-----------------------------------------------------------------------------------+
| | | | | | | | |
+----------------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| - | state whether applicable UK Accounting Standards have been followed, subject to |
| | any material departures disclosed and explained in the financial statements; |
+----------------+ +
| | |
+----------------+-----------------------------------------------------------------------------------+
| | | | | | | | |
+----------------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| - | prepare the financial statements on the going concern basis unless it is |
| | inappropriate to presume that the company will continue in business. |
+----------------+ +
| | |
+----------------+-----------------------------------------------------------------------------------+
| | | | | | | | |
| | | | | | | | |
+----------------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| The directors are responsible for keeping proper accounting records that disclose with reasonable |
| accuracy at any time the financial position of the company and enable them to ensure that the |
| financial statements comply with the Companies Act 1985. They are also responsible for |
| safeguarding the assets of the company and hence for taking reasonable steps for the prevention |
| and detection of fraud and other irregularities. |
| The directors are responsible for the maintenance and integrity of the corporate and financial |
| information included on the company's website. Legislation in the United Kingdom governing the |
| preparation and dissemination of financial statements may differ from legislation in other |
| jurisdictions |
| |
+ +
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+----------------------------------------------------------------------------------------------------+----------+
| Disclosure of information to Auditors |
+----------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| Each of the persons who is a director at the date of approval of this report confirms that: |
+----------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| (a) so far as the director is aware, there is no relevant audit information of which the |
| company's auditors are unaware; and |
+----------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| (b) the director has taken all the steps that he/she ought to have taken as a director in |
| order to make himself/herself aware of any relevant audit information and to establish that |
| the company's auditors are aware of that information. |
+----------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| This confirmation is given and should be interpreted in accordance with the provisions of |
| s234ZA of the Companies Act 1985. |
+ +
| | |
+----------------------------------------------------------------------------------------------+----------+
| |
| |
| Auditors |
| |
+----------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+-----------+-----------+-----------+-----------+-----------+-----------+-----------+
| The auditors, Deloitte LLP are willing to continue in office, and a resolution to reappoint |
| them will be proposed at the Annual General Meeting. |
+ +
| | |
+----------------------------------------------------------------------------------------------+----------+
| This report was approved by the Board on 27 July 2009 |
+----------+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+
+----------+---+---+----------+----------+----------+----------+----------+--------------+
| INDEPENDENT AUDITORS' REPORT |
+----------------------------------------------------------------------------------------+
| for the year ended 31 March 2009 |
+----------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+-------+----------+----------+----------+----------+----------+--------------+
| To the members | Meadowhall Finance PLC | | | |
| of | | | | |
+------------------+--------------------------------+----------+----------+--------------+
| | | | | | | | |
+----------+-------+----------+----------+----------+----------+----------+--------------+
| We have audited the financial statements of Meadowhall Finance PLC for the year ended |
| 31 March 2009 which comprise the profit and loss account, statement of total |
| recognised gains and losses, note of historical cost profits and losses, balance sheet |
| and the related notes 1 to 17. These financial statements have been prepared under the |
| accounting policies set out therein. |
+ +
| | |
+ +----------+
| | |
+----------------------------------------------------------------------------------------+----------+
| | | | | | | | |
+----------+---+--------------+----------+----------+----------+----------+--------------+
| This report is made solely to the company's members, as a body, in accordance with |
| section 235 of the Companies Act 1985. Our audit work has been undertaken so that we |
| might state to the company's members those matters we are required to state to them in |
| an auditors' 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 and the |
| company's members as a body, for our audit work, for this report, or for the opinions |
| we have formed. |
+ +
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+----------------------------------------------------------------------------------------+----------+
| | | | | | | | |
+----------+---+--------------+----------+----------+----------+----------+--------------+
| Respective responsibilities of directors and auditors |
+----------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+---+--------------+----------+----------+----------+----------+--------------+
| The directors' responsibilities for preparing the financial statements in accordance |
| with applicable law and United Kingdom Accounting Standards (United Kingdom Generally |
| Accepted Accounting Practice) and for being satisfied that the financial statements |
| give a true and fair view are set out in the Statement of Directors' Responsibilities. |
+ +
| | |
+ +----------+
| | |
+----------------------------------------------------------------------------------------+----------+
| | | | | | | | |
+----------+---+--------------+----------+----------+----------+----------+--------------+
| Our responsibility is to audit the financial statements in accordance with relevant |
| legal and regulatory requirements and International Standards on Auditing (UK and |
| Ireland). |
+ +
| | |
+----------------------------------------------------------------------------------------+----------+
| | | | | | | | |
+----------+---+--------------+----------+----------+----------+----------+--------------+
| We report to you our opinion as to whether the financial statements give a true and |
| fair view and are properly prepared in accordance with the Companies Act 1985. We also |
| report to you whether in our opinion the information given in the Directors' Report is |
| consistent with the financial statements. |
+ +
| | |
+ +----------+
| | |
+----------------------------------------------------------------------------------------+----------+
| | | | | | | | |
+----------+---+--------------+----------+----------+----------+----------+--------------+
| In addition we report to you if, in our opinion, the company has not kept adequate |
| accounting records, if we have not received all the information and explanations we |
| require for our audit, or if information specified by law regarding directors' |
| remuneration and other transaction is not disclosed. |
+ +
| | |
+ +----------+
| | |
+----------------------------------------------------------------------------------------+----------+
| | | | | | | | |
+----------+---+--------------+----------+----------+----------+----------+--------------+
| We read the Directors' Report and consider the implications for our report if we |
| become aware of any apparent misstatements within it. |
+ +
| | |
+----------------------------------------------------------------------------------------+----------+
| | | | | | | | |
+----------+---+--------------+----------+----------+----------+----------+--------------+
| Basis of audit opinion |
+----------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+---+--------------+----------+----------+----------+----------+--------------+
| We conducted our audit in accordance with International Standards on Auditing (UK and |
| Ireland) issued by the Auditing Practices Board. An audit includes examination, on a |
| test basis, of evidence relevant to the amounts and disclosures in the financial |
| statements. It also includes an assessment of the significant estimates and judgments |
| made by the directors in the preparation of the financial statements, and of whether |
| the accounting policies are appropriate to the company's circumstances, consistently |
| applied and adequately disclosed. |
+ +
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+----------------------------------------------------------------------------------------+----------+
| | | | | | | | |
+----------+---+--------------+----------+----------+----------+----------+--------------+
| We planned and performed our audit so as to obtain all the information and |
| explanations which we considered necessary in order to provide us with sufficient |
| evidence to give reasonable assurance that the financial statements are free from |
| material misstatement, whether caused by fraud or other irregularity or error. In |
| forming our opinion we also evaluated the overall adequacy of the presentation of |
| information in the financial statements. |
+ +
| | |
+ +----------+
| | |
+----------------------------------------------------------------------------------------+----------+
| | | | | | | | |
+----------+---+--------------+----------+----------+----------+----------+--------------+
| Opinion |
+----------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+---+--------------+----------+----------+----------+----------+--------------+
| In our opinion: |
+----------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+---+--------------+----------+----------+----------+----------+--------------+
| - | the financial statements give a true and fair view, in accordance with |
| | United Kingdom Generally Accepted Accounting Practice, of the state of the |
| | company's affairs as at 31 March 2009 and of its profit for the year then |
| | ended; |
+----------+ +
| | |
+----------+ +
| | |
+----------+-----------------------------------------------------------------------------+
| | | | | | | | |
+----------+---+--------------+----------+----------+----------+----------+--------------+
| - | the financial statements have been prepared in accordance with the |
| | Companies Act 1985; and |
+----------+-----------------------------------------------------------------------------+
| | | | | | | | |
+----------+---+--------------+----------+----------+----------+----------+--------------+
| - | the information given in the Directors' Report is consistent with the |
| | financial statements. |
+----------+-----------------------------------------------------------------------------+
| |
+----------------------------------------------------------------------------------------+
| Deloitte LLP |
+----------------------------------------------------------------------------------------+
| Chartered Accountants and Registered Auditors |
+----------------------------------------------------------------------------------------+
| London |
+----------------------------------------------------------------------------------------+
| UK | | | |
+----------+---------------------------------------------------+----------+--------------+
| 30 July | | | |
| 2009 | | | |
+----------+---+---+----------+----------+----------+----------+----------+--------------+
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+-------------+
| PROFIT AND LOSS ACCOUNT |
+------------------------------------------------------------------------------------------------------+
| for the year ended 31 March 2009 |
+------------------------------------------------------------------------------------------------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| | | | Note | Year | | Year |
| | | | | ended | | ended |
| | | | | 2009 | | 2008 |
+-------------+-------------+-------------------------+-------+ +----------+ +
| | | | | | | |
+-------------+-------------+-------------------------+-------+ +----------+ +
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| | | | | GBP | | GBP |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| Interest | | | | | | |
| receivable | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| Group | | | | 41,639,484 | | 42,069,232 |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| Interest | | | | | | |
| payable | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| External - Loan note | | | (41,635,335) | | (42,065,040) |
| interest | | | | | |
+---------------------------+-------------------------+-------+--------------+----------+--------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| Profit on ordinary activities before taxation | 2 | 4,149 | | 4,192 |
+-----------------------------------------------------+-------+--------------+----------+--------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| Taxation | | | 4 | (1,162) | | (1,258) |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| Profit for the financial | | 12 | 2,987 | | 2,934 |
| year | | | | | |
+---------------------------+-------------------------+-------+--------------+----------+--------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| Turnover and results are derived from continuing operations in the United Kingdom. |
| The company has only one significant class of business. |
+ +
| | |
+------------------------------------------------------------------------------------------------------+-------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES |
+------------------------------------------------------------------------------------------------------+
| for the year ended 31 March 2009 |
+------------------------------------------------------------------------------------------------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| | | | | Year | | Year |
| | | | | ended | | ended |
| | | | | 2009 | | 2008 |
+-------------+-------------+-------------------------+-------+ +----------+ +
| | | | | | | |
+-------------+-------------+-------------------------+-------+ +----------+ +
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| | | | | GBP | | GBP |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| Profit for the financial | | | 2,987 | | 2,934 |
| year | | | | | |
+---------------------------+-------------------------+-------+--------------+----------+--------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| Unrealised deficit on valuation of interest rate | 12 | (8,000,760) | | (1,219,652) |
| derivatives | | | | |
+-----------------------------------------------------+-------+--------------+----------+--------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| Deferred tax on movement on interest rate |10,12 | 2,054,033 | | - |
| derivatives | | | | |
+-----------------------------------------------------+-------+--------------+----------+--------------+
| | | | | | |
+---------------------------+-------------------------+-------+--------------+----------+--------------+
| Total recognised gains and losses relating to the | | (5,943,740) | | (1,216,718) |
| financial year | | | | |
+-----------------------------------------------------+-------+--------------+----------+--------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| NOTE OF HISTORICAL COST PROFITS AND LOSSES |
+------------------------------------------------------------------------------------------------------+
| for the year ended 31 March 2009 |
+------------------------------------------------------------------------------------------------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| | | | | Year | | Year |
| | | | | ended | | ended |
| | | | | 2009 | | 2008 |
+-------------+-------------+-------------------------+-------+ +----------+ +
| | | | | | | |
+-------------+-------------+-------------------------+-------+ +----------+ +
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| | | | | GBP | | GBP |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| Profit on ordinary activities before taxation | 4,149 | | 4,192 |
+-------------------------------------------------------------+--------------+----------+--------------+
| | | | | | |
+---------------------------+-------------------------+-------+--------------+----------+--------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| Historical cost profit on ordinary activities | | 4,149 | | 4,192 |
| before taxation | | | | |
+-----------------------------------------------------+-------+--------------+----------+--------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+
| Historical cost profit for the year retained after | | 2,987 | | 2,934 |
| taxation | | | | |
+-----------------------------------------------------+-------+--------------+----------+--------------+
| | | | | | | |
+-------------+-------------+-------------------------+-------+--------------+----------+--------------+-------------+
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| BALANCE SHEET |
+----------------------------------------------------------------------------------------------+
| as at 31 March 2009 |
+----------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| | | | Note | 2009 | 2008 |
+----------------+--+--+-------+--------------------------------+------------------------------+
| | | | | GBP | GBP | GBP | GBP |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| Non - Current | | | | | |
| assets | | | | | |
+----------------------+-------+---------------+----------------+--------------+---------------+
| Loans to group | 5 | | 832,224,050 | | 834,616,650 |
| companies | | | | | |
+----------------------+-------+---------------+----------------+--------------+---------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| | | | | | 832,224,050 | | 834,616,650 |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| Current assets | | | | | |
+----------------------+-------+---------------+----------------+--------------+---------------+
| Debtors | 6 | 13,378,971 | | 12,509,074 | |
+----------------------+-------+---------------+----------------+--------------+---------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| | | | | 13,378,971 | | 12,509,074 | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| Creditors due | 7 | (18,365,440) | | (11,551,803) | |
| within one | | | | | |
| year | | | | | |
+----------------------+-------+---------------+----------------+--------------+---------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| Net current | | | (4,986,469) | | 957,271 |
| (liabilities)/assets | | | | | |
+----------------------+-------+---------------+----------------+--------------+---------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| Total assets | | | 827,237,581 | | 835,573,921 |
| less current | | | | | |
| liabilities | | | | | |
+----------------------+-------+---------------+----------------+--------------+---------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| Creditors due | 8 | | (832,224,050) | | (834,616,650) |
| after one year | | | | | |
+----------------------+-------+---------------+----------------+--------------+---------------+
| | | | | | |
+----------------------+-------+---------------+----------------+--------------+---------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| Net | | | (4,986,469) | | 957,271 |
| (liabilities)/assets | | | | | |
+----------------------+-------+---------------+----------------+--------------+---------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| Capital and | | | | | |
| reserves | | | | | |
+----------------------+-------+---------------+----------------+--------------+---------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| Called up | 11 | | 12,502 | | 12,502 |
| share capital | | | | | |
+----------------------+-------+---------------+----------------+--------------+---------------+
| Hedging and | 12 | | (5,006,044) | | 940,683 |
| translation | | | | | |
| reserve | | | | | |
+----------------------+-------+---------------+----------------+--------------+---------------+
| Profit and | 12 | | 7,073 | | 4,086 |
| loss account | | | | | |
+----------------------+-------+---------------+----------------+--------------+---------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| Shareholders' | 12 | | (4,986,469) | | 957,271 |
| funds | | | | | |
+----------------------+-------+---------------+----------------+--------------+---------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| |
+----------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
| These financial statements were approved by the Board of Directors on | |
| 27 July 2009 | |
+------------------------------------------------------------------------------+---------------+
| | | | | | | | |
+----------------+--+--+-------+---------------+----------------+--------------+---------------+
+----------+----------+----------+----------+----------+----------+----------+---+------+
| Notes to the accounts |
+---------------------------------------------------------------------------------------+
| for the year ended 31 March 2009 |
+---------------------------------------------------------------------------------------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| 1. Accounting policies |
+---------------------------------------------------------------------------------------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| The principal accounting policies adopted by the directors are summarised below. They |
| have been applied consistently throughout the current and previous year. |
+ +
| | |
+---------------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| Accounting basis |
+---------------------------------------------------------------------------------------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| The financial statements are prepared in accordance with applicable United Kingdom |
| law and Accounting Standards and under the historical cost convention as modified by |
| the revaluation of investment properties and financial instruments. |
+ +
| | |
+---------------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| Going Concern Basis |
+---------------------------------------------------------------------------------------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| Having reviewed the company's forecast working capital cash flow requirements and |
| available facilities, in addition to making enquiries and examining areas which could |
| give risk to financial exposure including maintaining compliance with covenants, the |
| directors have a reasonable expectation that the company has adequate resources to |
| continue its operations for the foreseeable future. The company's net current |
| liability and net liability position arises from the revaluation of a derivative, the |
| cash flows from which have been reflected in the company's cash flow requirements. As |
| a result the Directors continue to adopt the going concern basis in preparing the |
| accounts. |
+ +
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+---------------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| Cash flow statement |
+---------------------------------------------------------------------------------------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| The company is exempt under FRS 1 (Revised) from preparing a cash flow statement. |
+---------------------------------------------------------------------------------------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| Financial liabilities | | | | | | |
+--------------------------------+----------+----------+----------+----------+---+------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| Debt instruments are stated at their net proceeds on issue. Finance charges including |
| premiums payable on settlement or redemption and direct issue costs are spread over |
| the period to redemption, using the effective interest method. |
+ +
| | |
+---------------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| Derivative financial | | | | | | |
| instruments | | | | | | |
+--------------------------------+----------+----------+----------+----------+---+------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| As defined by FRS 26, cash flow and fair value hedges are carried at fair value in |
| the balance sheet. Changes in the fair value of derivatives that are designated and |
| qualify as effective cash flow hedges are recognised directly in the hedging reserve. |
| Changes in the fair value of derivatives that are designated and qualify as effective |
| fair value hedges are recorded in the income statement, along with any changes in the |
| fair value of the hedged item that is attributable to the hedged risk. Any |
| ineffective portion is recognised in the income statement. |
+ +
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+---------------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| Investments |
+---------------------------------------------------------------------------------------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| Fixed asset investments are stated at cost less provision for impairment. |
+---------------------------------------------------------------------------------------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| Taxation | | | | | | | | |
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| Current tax is based on taxable profit for the year and is calculated using tax rates |
| that have been enacted or substantively enacted. Taxable profit differs from net |
| profit as reported in the profit and loss account because it excludes items of income |
| or expense that are not taxable (or tax deductible). In particular the group |
| (including this company) became a REIT on 1 January 2007 and income and gains on |
| qualifying assets are now exempt from taxation. |
+ +
| | |
+---------------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
| Deferred tax is recognised in respect of all timing differences that have originated |
| but not reversed at the balance sheet date where transactions or events that result |
| in an obligation to pay more tax in the future or a right to pay less tax in the |
| future have occurred at the balance sheet date. Timing differences are differences |
| between the group's taxable profits and its results as stated in the financial |
| statements that arise from the inclusion of gains and losses in tax assessments in |
| periods different from those in which they are recognised in the financial |
| statements. A net deferred tax asset is regarded as recoverable and therefore |
| recognised only when, on the basis of all available evidence, it can be regarded as |
| more likely than not that there will be suitable taxable profits from which the |
| future reversal of the underlying timing differences can be deducted. |
+ +
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+----------+----------+----------+----------+----------+----------+----------+---+------+
+----------+----------+----------+----------+------------------+-----------+-----------+----------+----------+
| 2. Profit on ordinary activities before taxation | |
+--------------------------------------------------------------------------------------+----------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| There have been no disclosable items charged/(credited) in arriving at the profit on |
| ordinary activities before taxation. |
+-------------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| A notional charge of GBP1,200 (2008: GBP1,040) is deemed payable to Deloitte LLP in |
| respect of the audit of the financial statements and is borne by another company. |
+ +
| | |
+-------------------------------------------------------------------------------------------------+----------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| 3. Staff costs | | | | | |
+--------------------------------+----------+------------------+-----------+-----------+----------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| No director received any remuneration for services to the company in either year. |
+-------------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| Average number of employees, excluding directors, of the company during the current |
| and preceding years is nil (2008-nil). |
+-------------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| | | | | | Year | | Year |
| | | | | | ended | | ended |
| | | | | | 2009 | | 2008 |
+----------+----------+----------+----------+------------------+ +-----------+ +
| | | | | | | | |
+----------+----------+----------+----------+------------------+ +-----------+ +
| 4. | | | | | | | |
| Taxation | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| | | | | | GBP | | GBP |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| Current | | | | | | | |
| tax | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| UK corporation tax | | | | 1,162 | | 1,258 |
+---------------------+----------+----------+------------------+-----------+-----------+----------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| Total current tax | | | | 1,162 | | 1,258 |
| charge | | | | | | |
+---------------------+----------+----------+------------------+-----------+-----------+----------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| Deferred | | | | | | | |
| tax | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| Origination and reversal of timing | | - | | - |
| differences | | | | |
+-------------------------------------------+------------------+-----------+-----------+----------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| Total deferred tax | | | | - | | - |
| credit | | | | | | |
+---------------------+----------+----------+------------------+-----------+-----------+----------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| Total taxation | | | | 1,162 | | 1,258 |
+---------------------+----------+----------+------------------+-----------+-----------+----------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| Tax reconciliation | | | | | | |
+---------------------+----------+----------+------------------+-----------+-----------+----------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| Profit on ordinary activities | | | 4,149 | | 4,192 |
| before taxation | | | | | |
+--------------------------------+----------+------------------+-----------+-----------+----------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| Tax on profit on ordinary activities at UK corporation tax | 1,162 | | 1,258 |
| rate of 28% (2008 - 30%) | | | |
+--------------------------------------------------------------+-----------+-----------+----------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+
| Current tax charge | | | | 1,162 | | 1,258 |
+---------------------+----------+----------+------------------+-----------+-----------+----------+
| | | | | | | | |
+----------+----------+----------+----------+------------------+-----------+-----------+----------+----------+
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+-----------+
| 5. Investments and loans to group companies | | |
+-----------------------------------------------------------------------------+--+--------------+
| | | | | | | | | | Loans to |
| | | | | | | | | | Group |
| | | | | | | | | | companies |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | | | GBP |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| At cost | | | | | | | |
+------------------------------+------------+--+------------+--+--------------+--+--------------+
| At 1 April 2008 | | | 834,616,650 |
+--------------------------------------------------------------+--------------+--+--------------+
| Loan repayments under normal schedule | | | (2,392,600) |
+--------------------------------------------------------------+--------------+--+--------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| 31 March 2009 | | | | | | | | 832,224,050 |
+------------------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| At cost and net book value | | | | | | | |
+------------------------------+------------+--+------------+--+--------------+--+--------------+
| 31 March 2009 | | | | | | | | 832,224,050 |
+------------------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| At 1 April 2008 | | | | | | | 834,616,650 |
+------------------------------+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| Investments and loans to group companies consist entirely of external borrowings, as set |
| out in note 9, subordinated to Meadowhall Limited Partnership, a fellow group |
| undertaking. The interest charged is the interest payable on the external borrowings plus |
| a margin of 0.01% of the interest charged. |
+ +
| | |
+ +-----------+
| | |
+-----------------------------------------------------------------------------------------------+-----------+
| | | | | | | | 2009 | | 2008 |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | GBP | | GBP |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| Loans to group companies due after one | | | | 832,224,050 | | 834,616,650 |
| year | | | | | | |
+-------------------------------------------+--+------------+--+--------------+--+--------------+
| Loans to group companies due within one | | | | 2,392,600 | | 2,392,600 |
| year | | | | | | |
+-------------------------------------------+--+------------+--+--------------+--+--------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | 834,616,650 | | 837,009,250 |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| 6. | | | | | | | 2009 | | 2008 |
| Debtors | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | GBP | | GBP |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| Amounts due within one | | | | | | | | |
| year: | | | | | | | | |
+------------------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| Amounts owed by group | | | | | | | |
| companies | | | | | | | |
+------------------------------+------------+--+------------+--+--------------+--+--------------+
| -current accounts | | | | | | 12,893 | | 12,871 |
+------------------------+-----+------------+--+------------+--+--------------+--+--------------+
| -interest accrued on | | | | | 8,919,445 | | 9,038,939 |
| subordinated loan | | | | | | | |
+------------------------------+------------+--+------------+--+--------------+--+--------------+
| -loans to group companies | | | | | 2,392,600 | | 2,392,600 |
| (see note 5) | | | | | | | |
+------------------------------+------------+--+------------+--+--------------+--+--------------+
| Interest rate | | | | | | - | | 1,064,664 |
| derivative asset* | | | | | | | | |
+------------------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | |
+------------------------------+------------+--+------------+--+--------------+--+--------------+
| | | | | 11,324,938 | | 12,509,074 |
+-------------------------------------------+--+------------+--+--------------+--+--------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| *Includes contracted cash flow with a maturity greater than one year at fair value. |
+-----------------------------------------------------------------------------------------------+
| Amounts due after one | | | | | | | | |
| year: | | | | | | | | |
+------------------------+-----+------------+--+------------+--+--------------+--+--------------+
| Deferred Tax Asset (see note | | | | | 2,054,033 | | - |
| 10) | | | | | | | |
+------------------------------+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | 13,378,971 | | 12,509,074 |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| 7. Creditors due within one year | | | | 2009 | | 2008 |
+-------------------------------------------+--+------------+--+--------------+--+--------------+
| | | | | | | | GBP | | GBP |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| Amounts owed to group | | | | | 1,258 | | - |
| companies | | | | | | | |
+------------------------------+------------+--+------------+--+--------------+--+--------------+
| Loan notes (see note 9) | | | | | 2,392,600 | | 2,392,600 |
+------------------------------+------------+--+------------+--+--------------+--+--------------+
| Corporation tax | | | | 1,162 | | 1,258 |
+-------------------------------------------+--+------------+--+--------------+--+--------------+
| Interest accrued on loan notes | | | | 8,634,586 | | 9,157,945 |
+-------------------------------------------+--+------------+--+--------------+--+--------------+
| Interest rate | | | | | | 7,335,834 | | - |
| derivative liability* | | | | | | | | |
+------------------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | 18,365,440 | | 11,551,803 |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| *Includes contracted cash flow with a maturity greater than one year at fair value. |
+-----------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| 8. Creditors due after one year | | | | 2009 | | 2008 |
+-------------------------------------------+--+------------+--+--------------+--+--------------+
| | | | | | | | GBP | | GBP |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| | | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+
| Loan notes (see note | | | | | | 832,224,050 | | 834,616,650 |
| 9) | | | | | | | | |
+-----------+------------+-----+------------+--+------------+--+--------------+--+--------------+-----------+
+------------+--+--+-------+-----+--+-----+-----+--+-------+-----+--+-----+----------+-----+--+-------------+----------+--+----------+
| | | | |
+----------------------------------------------------------+--------------+----------------+------------------------------+
| Hedge accounting |
+-------------------------------------------------------------------------------------------------------------------------+
| | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| The company uses interest rates swaps to hedge exposure to the variability in cash flows on |
| floating rate debt. At 31 March 2009 the market value of these derivatives, which have been |
| designated cash flow hedges under FRS 26, is a liability of GBP7.3m (2008- Asset GBP1.1m). The |
| adverse valuation movement reflects the reduction in interest rates since the beginning of the |
| year. |
+ +
| | |
+ +----------+
| | |
+ +----------+
| | |
+-------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| The Treasury Function |
+-------------------------------------------------------------------------------------------------------------------------+
| | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| The company finances its operations by a mixture of equity and public debt issues. The company |
| borrows in Sterling at both fixed and floating rates of interest, using interest rate derivatives |
| to hedge the interest rate risk on floating rate debt. |
+ +
| | |
+-------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| Risk Management |
+-------------------------------------------------------------------------------------------------------------------------+
| | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| Credit risk is the risk that one party to a financial instrument will fail to discharge an |
| obligation and cause the other party to incur a financial loss. In order to manage this risk, |
| management regularly monitors all amounts that are owed to the company to ensure that amounts are |
| paid in full and on time. |
+ +
| | |
+ +----------+
| | |
+-------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| Liquidity risk is the risk that the entity will encounter difficulty in raising funds to meet |
| commitments associated with financial liabilities. This risk is managed through day to day |
| monitoring of future cash flow requirements to ensure that the company has enough resources to |
| repay all future amounts outstanding. |
+ +
| | |
+ +----------+
| | |
+-------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| The Company's activities expose it primarily to interest rate risk. The group uses interest rate |
| swap contracts to hedge these exposures. The group does not use derivative financial instruments |
| for speculative purposes. |
+ +
| | |
+-------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | 2009 | | 2008 |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| 9. Borrowings | GBP | | GBP |
+----------------------------------------------------------+--------------+----------------+------------------------------+
| | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| Creditors due after one year - note 8 | 832,224,050 | | 834,616,650 |
+----------------------------------------------------------+--------------+----------------+------------------------------+
| Creditors due within one year -note 7 | 2,392,600 | | 2,392,600 |
+----------------------------------------------------------+--------------+----------------+------------------------------+
| Fair value of interest rate | | 7,335,834 | | (1,064,664) |
| derivative liability/(asset) | | | | |
+-----------------------------------------+----------------+--------------+----------------+------------------------------+
| | | | | 841,952,484 | | 835,944,586 |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| Repayments | | | | | | |
| due: | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| Within one year | | | 2,392,600 | | 2,392,600 |
+--------------------------+--------------+----------------+--------------+----------------+------------------------------+
| 1-2 years | | | 21,276,360 | | 2,392,600 |
+--------------------------+--------------+----------------+--------------+----------------+------------------------------+
| 2-5 years | | | 63,829,080 | | 63,829,080 |
+--------------------------+--------------+----------------+--------------+----------------+------------------------------+
| | | | | 87,498,040 | | 68,614,280 |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| After 5 | | | | 747,118,610 | | 768,394,970 |
| years | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| Total | | | | 834,616,650 | | 837,009,250 |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| Fair value of interest rate | | 7,335,834 | | (1,064,664) |
| derivative liability/(asset) | | | | |
+-----------------------------------------+----------------+--------------+----------------+------------------------------+
| Net debt | | | | 841,952,484 | | 835,944,586 |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| Loan Notes | | | | | |
+--------------------------+--------------+----------------+--------------+----------------+------------------------------+
| Class A1 | Secured Bonds 2037 | Fixed | 605,000,000 | | 605,000,000 |
| 4.986% | | | | | |
+---------------+-------------------------+----------------+--------------+----------------+------------------------------+
| Class A2 3M | Secured Bonds 2037 | Floating | 60,000,000 | | 60,000,000 |
| LIBOR + | | | | | |
| 0.22% | | | | | |
+---------------+-------------------------+----------------+--------------+----------------+------------------------------+
| Class B | Secured Bonds 2037 | Fixed | 169,616,650 | | 172,009,250 |
| 4.988% | | | | | |
+---------------+-------------------------+----------------+--------------+----------------+------------------------------+
| | | | | 834,616,650 | | 837,009,250 |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| Fair value of interest rate | | 7,335,834 | | (1,064,664) |
| derivative liability/(asset) | | | | |
+-----------------------------------------+----------------+--------------+----------------+------------------------------+
| Net debt | | | | 841,952,484 | | 835,944,586 |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| On 19 December 2006, Bonds with a nominal value GBP840m were issued by Meadowhall Finance PLC |
| ('Issuer') and the proceeds, equal to the nominal value, were on-lent to Meadowhall Limited |
| Partnership ('Borrower') under the Issuer/Borrower Loan Agreement. Under this agreement Meadowhall |
| Limited Partnership will grant security over its beneficial interest in Meadowhall Shopping Centre |
| ('Mortgaged Property') and all related interests and assets. |
+ +
| | |
+ +----------+
| | |
+ +----------+
| | |
+-------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| At 31 March 2009 the company was financed by GBP834.6m (2008 - GBP837.0m) bonds. The market value |
| of the bonds at 31 March 2009 was GBP137.8m less (2008 - GBP85.2m less) than the book value. |
+ +
| | |
+-------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | |
+---------------+----------+--------------+----------------+--------------+----------------+------------------------------+
| There is an undrawn 364 day revolving liquidity facility totalling GBP75m which is only available |
| for the requirements of the Meadowhall securitisation. |
+ +
| | |
+-------------------------------------------------------------------------------------------------------------------------+----------+
| At 31 March 2009 taking into account the effect of derivatives, 100% of the bonds were fixed (2008 |
| - 100%). The bonds amortise between 2007 and 2032, and are secured on properties of group valued at |
| GBP1,142.9m (2008 - GBP1,516.8m). The weighted average interest rate is 4.98% (2008 - 4.98%) and |
| the weighted average debt maturity is 15.1 years (2008 - 16.1 years). |
+ +
| | |
+ +----------+
| | |
+ +----------+
| | |
+-------------------------------------------------------------------------------------------------------------------------+----------+
| The fair values of securitised debt have been established by obtaining quoted market prices from |
| brokers. The derivatives have been valued by calculating the present value of future cash flows, |
| using appropriate market discount rates, by an independent treasury advisor. |
+ +
| | |
+ +----------+
| | |
+-------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| The Class A1 and B Loan notes expose the entity to fair value interest rate risk while the |
| Class A2 Loan notes expose the company to cash flow interest rate risk. |
+ +
| | |
+-----------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| 10. Deferred | | | | | | | | | |
| tax asset | | | | | | | | | |
+------------------+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| | | | | | | | | | | Total |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| | | | | | | | | | | GBP |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| 1 April 2008 | | | | | | | | | - |
+------------------+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| Credited to hedging and | | | | | | | | (2,054,033) |
| translation reserve | | | | | | | | |
+--------------------------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| 31 March 2009 | | | | | | | | | (2,054,033) |
+------------------+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| The deferred tax asset relates primarily to timing differences arising with respect to the |
| revaluation of interest rate derivatives. |
+ +
| | |
+-----------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| 11. Share capital | | | | | | | | |
+--------------------------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| | | | | | | | | 2009 | | 2008 |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| | | | | | | | | GBP | | GBP |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| Authorised | | | | | | | | | |
| | | | | | | | | | |
+------------+-------------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| 99,998 ordinary shares of GBP1 each, | | | | 99,998 | | 99,998 |
| partly paid to 25 pence per share | | | | | | |
+-----------------------------------------------+--+-------------+--+----------------+--------+-------------+
| 2 ordinary shares of GBP1 each, fully | | | | 2 | | 2 |
| paid | | | | | | |
+-----------------------------------------------+--+-------------+--+----------------+--------+-------------+
| | | | | | | | |
+-----------------------------------+-----------+--+-------------+--+----------------+--------+-------------+
| | | | | | | | | 100,000 | | 100,000 |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| Allotted, called up and | | | | |
| fully paid | | | | |
+--------------------------------+----------------------------------+----------------+--------+-------------+
| 49,998 ordinary shares of GBP1 each, | | | | 12,500 | | 12,500 |
| partly paid to 25 pence per share | | | | | | |
+-----------------------------------------------+--+-------------+--+----------------+--------+-------------+
| 2 ordinary shares of GBP1 each, fully | | | | 2 | | 2 |
| paid | | | | | | |
+-----------------------------------------------+--+-------------+--+----------------+--------+-------------+
| | | | | | | | | 12,502 | | 12,502 |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+
| | | | | |
+------------------------------------------------------------------------------------+--------+-------------+----------+--+
| 12. Reconciliation of movements in shareholders' (deficit)/funds and | | | | |
| reserves | | | | |
+------------------------------------------------------------------------------------+--------+-------------+----------+--+
| | | | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| | | | | Share | | Hedging | | Profit and | | Total | | |
| | | | | capital | | and | | loss account | | | | |
| | | | | | | translation | | | | | | |
| | | | | | | reserve | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| | | | | GBP | | GBP | | GBP | | GBP | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| | | | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| Opening shareholders' | | 12,502 | | 940,683 | | 4,086 | | 957,271 | | |
| funds | | | | | | | | | | |
+--------------------------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| | | | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| Profit for the | | | - | | - | | 2,987 | | 2,987 | | |
| financial year | | | | | | | | | | | |
+------------------+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| | | | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| Movement in valuation of SWAP | - | | (8,000,760) | | - | | (8,000,760) | | |
+-----------------------------------+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| | | | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| | | | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| Taxation on | | | - | | 2,054,033 | | - | | 2,054,033 | | |
| hedging and | | | | | | | | | | | |
| translation | | | | | | | | | | | |
| movements | | | | | | | | | | | |
+ +-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| | | | | | | | | | | | |
+------------------+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| | | | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| | | | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| Closing | | | 12,502 | | (5,006,044) | | 7,073 | | (4,986,469) | | |
| shareholders' | | | | | | | | | | | |
| deficit | | | | | | | | | | | |
+------------------+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| | | | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| 13. Capital commitments | | | | |
+------------------------------------------------------------------------------------+--------+-------------+----------+--+
| | | | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| The company had capital commitments contracted at 31 March 2009 of GBPNil (2008-GBPNil). | | |
+-----------------------------------------------------------------------------------------------------------+----------+--+
| | | | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| 14. Contingent liabilities | | | | |
+------------------------------------------------------------------------------------+--------+-------------+----------+--+
| | | | | | | | | | | | | |
+------------+-----+-------------+--+-----------+--+-------------+--+----------------+--------+-------------+----------+--+
| The company is jointly and severally liable with the ultimate holding company and fellow | | |
| subsidiaries for all monies falling due under the group VAT registration. | | |
+ +----------+--+
| | | |
+------------+--+--+-------+-----+--+-----+-----+--+-------+-----+--+-----+----------+-----+--+-------------+----------+--+----------+
+----------+-------------+----------+--+----------+--+----------+--+----------+-+----------+
| 15. Related parties | | |
+-----------------------------------------------------------------------------+-+----------+
| | | | | | | | | | | |
+----------+-------------+----------+--+----------+--+----------+--+----------+-+----------+
| The company has taken advantage of the exemption granted to 90% subsidiaries not to |
| disclose transactions with group companies under the provisions of Financial Reporting |
| Standard 8. |
+ +
| | |
+------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | |
+----------+-------------+----------+--+----------+--+----------+--+----------+-+----------+
| 16. Subsequent events | | |
+-----------------------------------------------------------------------------+-+----------+
| | | | | | | | | | | |
+----------+-------------+----------+--+----------+--+----------+--+----------+-+----------+
| There have been no significant events since the year end. |
+------------------------------------------------------------------------------------------+
| | | | | | | | | | | |
+----------+-------------+----------+--+----------+--+----------+--+----------+-+----------+
| 17. Immediate parent and ultimate holding company | | |
+-----------------------------------------------------------------------------+-+----------+
| | | | | | | | | | | |
+----------+-------------+----------+--+----------+--+----------+--+----------+-+----------+
| The immediate parent is Meadowhall Limited Partnership. |
+------------------------------------------------------------------------------------------+
| | | | | | | | | | | |
+----------+-------------+----------+--+----------+--+----------+--+----------+-+----------+
| MSC Property Intermediate Holdings Limited is the smallest and largest group for which |
| group accounts are available and which include the company. |
+ +
| | |
+------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | |
+----------+-------------+----------+--+----------+--+----------+--+----------+-+----------+
| The ultimate holding company is MSC Property Intermediate Holdings Limited, a joint |
| venture between The British Land Company PLC and Butterfield Trust (Guernsey) Limited |
| and Moulinet Trustees Limited as trustees of LSPGP Trust No.1, a wholly owned subsidiary |
| of LSP Green Park Property Trust. |
+ +
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | |
+----------+-------------+----------+--+----------+--+----------+--+----------+-+----------+
| The accounts of MSC Property Intermediate Holdings Limited can be obtained from The |
| British Land Company PLC, York House, 45 Seymour Street, London, W1H 7LX. |
+ +
| | |
+----------+-------------+----------+--+----------+--+----------+--+----------+-+----------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UAASRKNRBOAR
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