TIDM37QC
RNS Number : 3103Q
Meadowhall Finance PLC
30 July 2010
The Annual Report and Accounts for the year ended 31 March 2010, 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/investors/securitisations/meadowhallsec2/meadowhalls
c/meadowhallsec_reports
MEADOWHALL FINANCE PLC
COMPANY NO: 5987141
ANNUAL REPORT AND ACCOUNTS
YEAR ENDED 31 MARCH 2010
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| REPORT OF THE DIRECTORS | |
+-----------------------------------------------------------------------+----------+
| for the year ended 31 March 2010 | |
+-----------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| The directors submit their report and financial statements for the | |
| year ended 31 March 2010. | |
+-----------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| Principal Activities | |
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| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| 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 | |
| company's principal activity is to provide funding to fellow | |
| subsidiaries of MSC Property Intermediate Holdings Limited, the joint | |
| venture. | |
+ +----------+
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+ +----------+
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+-----------------------------------------------------------------------+----------+
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+----------+--------+--------+--------+--------+--------+--------+------+----------+
| Business Review | |
+-----------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| As shown in the company's profit and loss account, the profit before | |
| tax remains consistent with prior year. Interest payable and | |
| receivable also remain consistent with prior year. | |
+-----------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| The directors do not recommend the payment of a dividend (2009 - | |
| GBPnil). | |
+-----------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| The balance sheet on page 6 shows that the company's financial | |
| position at the year end is, in net liability terms, a decrease from | |
| the prior year. This is primarily due to the movement on the interest | |
| rate derivative liability. | |
+ +----------+
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+----------+--------+--------+--------+--------+--------+--------+------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| Details of significant events since the balance sheet date are | |
| contained in note 14 of the financial statements. | |
+-----------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| Risk Management | |
+-----------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| This company is part of a large property investment group. As such, | |
| the fundamental underlying risks for this company are those of the | |
| property group as discussed below. | |
+-----------------------------------------------------------------------+----------+
| The company generates returns to shareholders through long-term | |
| investment decisions requiring the evaluation of opportunities | |
| arising in the following areas: | |
| | |
+ +----------+
| | |
+-----------------------------------------------------------------------+----------+
| - demand for space from occupiers against available supply; | |
| - differential pricing for premium locations and buildings; | |
| - alternative use for buildings; | |
| - demand for returns from investors in property, compared to other | |
| asset classes; | |
| - economic cycles, including their impact on tenant covenant | |
| quality, interest rates, inflation and property values; | |
| - price differentials for capital to finance the business; | |
| - legislative changes, including planning consents and taxation; | |
| and | |
| - construction pricing and programming. | |
+ +----------+
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+ +----------+
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+ +----------+
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+ +----------+
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+-----------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| 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. | |
+ +----------+
| | |
+ +----------+
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+-----------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| The company's preference for prime assets and their secure long term | |
| contracted rental income, primarily with upward only rent review | |
| clauses, presents lower risks than many other property portfolios. | |
+ +----------+
| | |
+-----------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| 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 variable rate debt. | |
+ +----------+
| | |
+-----------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| 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. | |
+ +----------+
| | |
+-----------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
+-------------+----------+--------+--------+--------+--------+--------+------+----------+
| 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. | |
+ +----------+
| | |
+ +----------+
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+ +----------+
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+----------------------------------------------------------------------------+----------+
| | | | | | | | | |
+-------------+----------+--------+--------+--------+--------+--------+------+----------+
| Directors | |
+----------------------------------------------------------------------------+----------+
| | | | | | | | | |
+-------------+----------+--------+--------+--------+--------+--------+------+----------+
| The directors who served throughout the period | | | | |
| were: | | | | |
+---------------------------------------------------+--------+--------+------+----------+
| | | | | | |
+-------------+----------+--------+--------+---------------------------------+----------+
| A M Jones (Resigned 6 November 2009) | | | | | |
+------------------------------------------+--------+--------+--------+------+----------+
| M A Stirling (Resigned 6 November | | | | | |
| 2009) | | | | | |
+------------------------------------------+--------+--------+--------+------+----------+
| M J Dillon (Appointed 6 November | | | | | |
| 2009) | | | | | |
+------------------------------------------+--------+--------+--------+------+----------+
| B T Grose (Appointed 6 November 2009) | | | | | |
+------------------------------------------+--------+--------+--------+------+----------+
| J Bishop (Appointed 8 April 2009) | | | | | |
+------------------------------------------+--------+--------+--------+------+----------+
| J Duzniak (Appointed 8 April 2009) | | | | | |
+------------------------------------------+--------+--------+--------+------+----------+
| P L Vaughan (Appointed 8 April 2009) | | | | |
+---------------------------------------------------+--------+--------+------+----------+
| N M Webb (Appointed 8 April 2009) | | | | | |
+------------------------------------------+--------+--------+--------+------+----------+
| C M J Forshaw | | | | |
+---------------------------------------------------+--------+--------+------+----------+
| T A Roberts (Appointed 8 April 2009) | | | | |
+---------------------------------------------------+--------+--------+------+----------+
| S M Little | |
+----------------------------------------------------------------------------+----------+
| M McGann | |
+----------------------------------------------------------------------------+----------+
| H R Mould | | | | | |
+------------------------------------------+--------+--------+--------+------+----------+
| A D Smith | | | | | |
+------------------------------------------+--------+--------+--------+------+----------+
| | | | | | | | | |
+-------------+----------+--------+--------+--------+--------+--------+------+----------+
| | | | | | | | | |
+-------------+----------+--------+--------+--------+--------+--------+------+----------+
| Directors' responsibilities statement | |
+----------------------------------------------------------------------------+----------+
| | | | | | | | | |
+-------------+----------+--------+--------+--------+--------+--------+------+----------+
| 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). Under company law the directors must not | |
| approve the financial statements unless they are satisfied that they | |
| 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, and | |
+-------------+--------------------------------------------------------------+----------+
| | | | | | | | | |
+-------------+----------+--------+--------+--------+--------+--------+------+----------+
| - | 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 adequate accounting records | |
| that are sufficient to show and explain the company's transactions and | |
| disclose with reasonable accuracy at any time the financial position of | |
| the company and enable them to ensure that the financial statements | |
| comply with Companies Act 2006. 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. | |
+ +----------+
| | |
+ +----------+
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+ +----------+
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+ +----------+
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+----------------------------------------------------------------------------+----------+
| | | | | | | | | |
+-------------+----------+--------+--------+--------+--------+--------+------+----------+
| 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. | |
+----------------------------------------------------------------------------+----------+
| | | | | | | | | |
+-------------+----------+--------+--------+--------+--------+--------+------+----------+
| Payments policy | |
+----------------------------------------------------------------------------+----------+
| In the absence of dispute, amounts due to trade and other suppliers are | |
| settled as expeditiously as possible upon presentation. | |
+ +----------+
| | |
+-------------+----------+--------+--------+--------+--------+--------+------+----------+
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| 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 s418 of the Companies Act 2006. | |
+ +----------+
| | |
+-----------------------------------------------------------------------+----------+
| Auditors | | | | | | | | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
| A resolution to reappoint Deloitte LLP as the company's auditors will | |
| be proposed at the Annual General Meeting. | |
+-----------------------------------------------------------------------+----------+
| | |
+-----------------------------------------------------------------------+----------+
| This report was approved by the Board on 26 July 2010 | |
+----------+--------+--------+--------+--------+--------+--------+------+----------+
+----------+----------+----------+--------+------------------+---+-+-----------+----------+
| INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF | |
+------------------------------------------------------------------------------+----------+
| Meadowhall Finance PLC | |
+------------------------------------------------------------------------------+----------+
| for the year ended 31 March 2010 | |
+------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+--------+------------------+---+-+-----------+----------+
| We have audited the financial statements of Meadowhall Finance PLC for the | |
| year ended 31 March 2010 which comprise the Profit and Loss Account, the | |
| Balance Sheet, the Statement of Total Recognised Gains and Losses and the | |
| related notes 1 to 15. The financial reporting framework that has been | |
| applied in their preparation is applicable law and United Kingdom Accounting | |
| Standards (United Kingdom Generally Accepted Accounting Practice). | |
+ +----------+
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+ +----------+
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+ +----------+
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+------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+--------+------------------+---+-+-----------+----------+
| This report is made solely to the company's members, as a body, in | |
| accordance with Chapter 3 of part 16 of the Companies Act 2006. 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 | |
+------------------------------------------------------------------------------+----------+
| As explained more fully in the Directors' Responsibilities Statement, the | |
| directors are responsible for the preparation of the financial statements | |
| and for being satisfied that they give a true and fair view. Our | |
| responsibility is to audit the financial statements in accordance with | |
| applicable law and International Standards on Auditing (UK and Ireland). | |
| Those standards require us to comply with the Auditing Practices Board's | |
| (APB's) Ethical Standards for Auditors. | |
+ +----------+
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+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+--------+------------------+---+-+-----------+----------+
| Scope of the audit of the financial statements | |
+------------------------------------------------------------------------------+----------+
| An audit involves obtaining evidence about the amounts and disclosures in | |
| the financial statements sufficient to give reasonable assurance that the | |
| financial statements are free from material misstatement, whether caused by | |
| fraud or error. This includes an assessment of: whether the accounting | |
| policies are appropriate to the company's circumstances and have been | |
| consistently applied and adequately disclosed; the reasonableness of | |
| significant accounting estimates made by the directors; and the overall | |
| presentation of the financial statements. | |
+ +----------+
| | |
+------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+--------+------------------+---+-+-----------+----------+
| Opinion on financial statements | |
+------------------------------------------------------------------------------+----------+
| In our opinion the financial statements: | |
+------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+--------+------------------+---+-+-----------+----------+
| - | give a true and fair view of the state of the company's affairs | |
| | as at 31 March 2010 and of its profit for the year then ended; | |
+----------+ +----------+
| | | |
+----------+-------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+--------+------------------+---+-+-----------+----------+
| - | have been properly prepared in accordance with United Kingdom | |
| | Generally Accepted Accounting Practice; and | |
+----------+-------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+--------+------------------+---+-+-----------+----------+
| - | have been prepared in accordance with the requirements of the | |
| | Companies Act 2006. | |
+----------+-------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+--------+------------------+---+-+-----------+----------+
| Opinion on other matter prescribed by the Companies Act 2006 | |
+------------------------------------------------------------------------------+----------+
| In our opinion the information given in the Directors' Report for the | |
| financial year for which the financial statements are prepared is consistent | |
| with the financial statements. | |
+------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+--------+------------------+---+-+-----------+----------+
| Matters on which we are required to report by exception | |
+------------------------------------------------------------------------------+----------+
| We have nothing to report in respect of the following matters where the | |
| Companies Act 2006 requires us to report to you if, in our opinion: | |
+------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+--------+------------------+---+-+-----------+----------+
| - | adequate accounting records have not been kept, or returns | |
| | adequate for our audit have not been received from branches not | |
| | visited by us; or | |
+----------+ +----------+
| | | |
+----------+-------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+--------+------------------+---+-+-----------+----------+
| - | the financial statements are not in agreement with the accounting | |
| | records and returns; or | |
+----------+-------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+--------+------------------+---+-+-----------+----------+
| - | certain disclosures of directors' remuneration specified by law | |
| | are not made; or | |
+----------+-------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+----------+----------+--------+------------------+---+-+-----------+----------+
| - | we have not received all the information and explanations we | |
| | require for our audit. | |
+----------+-------------------------------------------------------------------+----------+
| | |
+------------------------------------------------------------------------------+----------+
| Deloitte LLP | |
+------------------------------------------------------------------------------+----------+
| Chartered Accountants and Statutory Auditors | |
+------------------------------------------------------------------------------+----------+
| Cambridge, UK | |
+------------------------------------------------------------------------------+----------+
| 29 July 2010 | |
+----------+----------+----------+--------+------------------+---+-+-----------+----------+
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| PROFIT AND LOSS ACCOUNT | |
+-------------------------------------------------------------------------------------------+--------------+
| for the year ended 31 March 2010 | |
+-------------------------------------------------------------------------------------------+--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| | | | Note | Year | | Year | |
| | | | | ended | | ended | |
| | | | | 2010 | | 2009 | |
+--------------+-------+---------------+-------+ +----------+ +--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+ +----------+ +--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| | | | | GBP | | GBP | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| Operating | | | | - | | - | |
| profit | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| Interest receivable | | | | | | |
+----------------------+---------------+-------+--------------+----------+------------------+--------------+
| Group | | | | 41,625,902 | | 41,639,484 | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| Interest | | | | | | | |
| payable | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| External - Loan | | | (41,621,673) | | (41,635,335) | |
| note interest | | | | | | |
+----------------------+---------------+-------+--------------+----------+------------------+--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| Profit on ordinary activities before | 2 | 4,229 | | 4,149 | |
| taxation | | | | | |
+--------------------------------------+-------+--------------+----------+------------------+--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| Taxation | | | 4 | (1,184) | | (1,162) | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| Profit on ordinary activities before | | 3,045 | | 2,987 | |
| taxation | | | | | |
+--------------------------------------+-------+--------------+----------+------------------+--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| Turnover and results are derived from continuing operations within the | |
| United Kingdom. The company has only one significant class of business, | |
| that of providing funding to fellow subsidiaries of the joint venture | |
| between The British Land Company PLC and LSP Green Park Property Park | |
| Trust, in the United Kingdom. | |
+ +--------------+
| | |
+ +--------------+
| | |
+-------------------------------------------------------------------------------------------+--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES | |
+-------------------------------------------------------------------------------------------+--------------+
| for the year ended 31 March 2010 | |
+-------------------------------------------------------------------------------------------+--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| | | | Note | Year | | Year | |
| | | | | ended | | ended | |
| | | | | 2010 | | 2009 | |
+--------------+-------+---------------+-------+ +----------+ +--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+ +----------+ +--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| | | | | GBP | | GBP | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| Profit on ordinary activities before | | 3,045 | | 2,987 | |
| taxation | | | | | |
+--------------------------------------+-------+--------------+----------+------------------+--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| Derivative valuation movements on | 10 | 1,620,517 | | (8,000,760) | |
| net investments | | | | | |
+--------------------------------------+-------+--------------+----------+------------------+--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
| Deferred tax on derivative valuation |8, 10 | (530,956) | | 2,054,033 | |
| movements on net investments | | | | | |
+--------------------------------------+-------+--------------+----------+------------------+--------------+
| | | | | | | |
+----------------------+---------------+-------+--------------+----------+------------------+--------------+
| Total recognised gains and losses | | 1,092,606 | | (5,943,740) | |
| relating to the financial year | | | | | |
+--------------------------------------+-------+--------------+----------+------------------+--------------+
| | | | | | | | |
+--------------+-------+---------------+-------+--------------+----------+------------------+--------------+
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| BALANCE SHEET | |
+-------------------------------------------------------------------------------------+----------+
| as at 31 March 2010 | |
+-------------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| | | |Note | 2010 | 2009 | |
+----------+--+--+------+------------------------------+------------------------------+----------+
| | | | | GBP | GBP | GBP | GBP | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| Current assets | | | | | | |
+----------------+------+--------------+---------------+--------------+---------------+----------+
| Debtors - due | 5 | 30,184,960 | | 11,324,938 | | |
| within one | | | | | | |
| year | | | | | | |
+----------------+------+--------------+---------------+--------------+---------------+----------+
| Debtors - due | 5 | 812,470,767 | | 834,278,083 | | |
| after more | | | | | | |
| than one year | | | | | | |
+----------------+------+--------------+---------------+--------------+---------------+----------+
| | | | | | | | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| | | | | 842,655,727 | | 845,603,021 | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| | | | | | | | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| Creditors due | 6 | (35,601,900) | | (18,365,440) | | |
| within one | | | | | | |
| year | | | | | | |
+----------------+------+--------------+---------------+--------------+---------------+----------+
| | | | | | | | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| | | | | | | | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| Net current | | | 807,053,827 | | 827,237,581 | |
| assets | | | | | | |
+----------------+------+--------------+---------------+--------------+---------------+----------+
| | | | | | | | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| Total assets | | | 807,053,827 | | 827,237,581 | |
| less current | | | | | | |
| liabilities | | | | | | |
+----------------+------+--------------+---------------+--------------+---------------+----------+
| | | | | | | | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| | | | | | | | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| Creditors due | 7 | | (810,947,690) | | (832,224,050) | |
| after one year | | | | | | |
+----------------+------+--------------+---------------+--------------+---------------+----------+
| | | | | | | |
+----------------+------+--------------+---------------+--------------+---------------+----------+
| | | | | | | | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| | | | | | | | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| Net | | | (3,893,863) | | (4,986,469) | |
| liabilities | | | | | | |
+----------------+------+--------------+---------------+--------------+---------------+----------+
| | | | | | | | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| Capital and | | | | | | |
| reserves | | | | | | |
+----------------+------+--------------+---------------+--------------+---------------+----------+
| | | | | | | | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| Called up | 9 | | 12,502 | | 12,502 | |
| share capital | | | | | | |
+----------------+------+--------------+---------------+--------------+---------------+----------+
| Hedging and | 10 | | (3,916,483) | | (5,006,044) | |
| translation | | | | | | |
| reserve | | | | | | |
+----------------+------+--------------+---------------+--------------+---------------+----------+
| Profit and | 10 | | 10,118 | | 7,073 | |
| loss account | | | | | | |
+----------------+------+--------------+---------------+--------------+---------------+----------+
| | | | | | | | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| Shareholders' | 10 | | (3,893,863) | | (4,986,469) | |
| deficit | | | | | | |
+----------------+------+--------------+---------------+--------------+---------------+----------+
| | | | | | | | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| | |
+-------------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
| The financial statements of Meadowhall Finance PLC, company number 5987141, | |
| were approved by the Board of | |
| Directors on 26 July 2010. | |
+ +----------+
| | |
+----------+--+--+------+--------------+---------------+--------------+---------------+----------+
+------------+-------+-------+-------+-------+-------+-------+-+----+----------+
| Notes to the accounts | |
+-------------------------------------------------------------------+----------+
| for the year ended 31 March 2010 | |
+-------------------------------------------------------------------+----------+
| | | | | | | | | | |
+------------+-------+-------+-------+-------+-------+-------+-+----+----------+
| 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 other fixed asset investments. | |
+ +----------+
| | |
+-------------------------------------------------------------------+------------+
| | | | | | | | | | |
+------------+-------+-------+-------+-------+-------+-------+-+----+----------+
| | | | | | | | | | |
+------------+-------+-------+-------+-------+-------+-------+-+----+----------+
| Basis of Preparation | | | | | | | |
+----------------------------+-------+-------+-------+-------+-+----+----------+
| | | | | | | | | | |
+------------+-------+-------+-------+-------+-------+-------+-+----+----------+
| Having reviewed the company's forecast working capital and cash | |
| flow requirements, in addition to making enquiries and examining | |
| areas which could give risk to financial exposure, the directors | |
| have a reasonable expectation that the company has adequate | |
| resources to continue its operations for the foreseeable future. | |
| As a result they continue to adopt the going concern basis in | |
| preparing the accounts. | |
+ +----------+
| | |
+-------------------------------------------------------------------+------------+
| | | | | | | | | | |
+------------+-------+-------+-------+-------+-------+-------+-+----+----------+
| Financial assets | |
+-------------------------------------------------------------------+----------+
| The company classified all financial assets, with the exception | |
| of derivative financial instruments into the category Loans and | |
| Debtors. Loans and Debtors are initially measured at fair value | |
| including any transaction costs. They are subsequently measured | |
| at amortised cost using the effective interest rate method. | |
+ +----------+
| | |
+ +------------+
| | |
+-------------------------------------------------------------------+------------+
| | | | | | | | | | |
+------------+-------+-------+-------+-------+-------+-------+-+----+----------+
| Cash flow statement | |
+-------------------------------------------------------------------+----------+
| | | | | | | | | | |
+------------+-------+-------+-------+-------+-------+-------+-+----+----------+
| The company is exempt under FRS 1 (Revised) from preparing a | |
| cashflow 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, derivative financial instruments are | |
| measured 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. | |
| Any ineffective portion is recognised in the profit and loss | |
| account. | |
+ +----------+
| | |
+ +------------+
| | |
+-------------------------------------------------------------------+------------+
| | | | | | | | | | |
+------------+-------+-------+-------+-------+-------+-------+-+----+----------+
| 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). | |
+ +----------+
| | |
+ +------------+
| | |
+-------------------------------------------------------------------+------------+
| | | | | | | | | | |
+------------+-------+-------+-------+-------+-------+-------+-+----+----------+
| 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 company'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 | | |
+------------------------------------------------------------------+-----------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| A notional charge of GBP1,200 (2009: GBP1,200) per company is deemed | |
| payable to Deloitte LLP in respect of the audit of the financial | |
| statements. Actual amounts payable to Deloitte LLP are paid by | |
| Meadowhall Limited Partnership. | |
+ +----------+
| | |
+------------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| 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 (2009: nil). | |
+------------------------------------------------------------------------------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| | | | | | Year | | | |
| | | | | | ended | | Year | |
| | | | | | 2010 | | ended | |
| | | | | | | | 2009 | |
+----------+--------+--------+--------+--------+ +----------+ +----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+ +----------+ +----------+
| 4. | | | | | | | | |
| Taxation | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| | | | | | GBP | | GBP | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| Current | | | | | | | | |
| tax | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| UK corporation | | | | 1,184 | | 1,162 | |
| tax | | | | | | | |
+-------------------+--------+--------+--------+--------+----------+-----------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| Total current tax | | | | 1,184 | | 1,162 | |
| charge | | | | | | | |
+-------------------+--------+--------+--------+--------+----------+-----------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| Deferred | | | | | | | | |
| tax | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| Origination and reversal of timing | | | | | |
| differences | | - | | - | |
+-------------------------------------+--------+--------+----------+-----------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| Total deferred | | | | | | | |
| tax credit | | | | - | | - | |
+-------------------+--------+--------+--------+--------+----------+-----------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| Total taxation | | | | 1,184 | | 1,162 | |
+-------------------+--------+--------+--------+--------+----------+-----------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| Tax | | | | | | | |
| reconciliation | | | | | | | |
+-------------------+--------+--------+--------+--------+----------+-----------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| Profit on ordinary | | | 4,229 | | 4,149 | |
| activities before taxation | | | | | | |
+----------------------------+--------+--------+--------+----------+-----------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| Tax on profit on ordinary activities at UK | | | | |
| corporation tax rate of 28% | | | | |
+----------------------------------------------+--------+----------+-----------------+----------+
| (2009: | | | | | 1,184 | | 1,162 | |
| 28%) | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| | | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
| Current tax | | | | 1,184 | | 1,162 | |
| charge | | | | | | | |
+----------+--------+--------+--------+--------+--------+----------+-----------------+----------+
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| 5. | | | | | | | 2010 | | 2009 | |
| Debtors | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | GBP | | GBP | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| Current debtors (receivable within one | | | | | | |
| year) | | | | | | |
+---------------------------------------------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| Amounts owed by group | | | | | | | | |
| companies | | | | | | | | |
+------------------------+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| -current accounts | | | | | | | | 12,893 | |
| | | | | | | - | | | |
+--------------------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| -interest accrued on | | | | | 8,904,606 | | 8,919,445 | |
| subordinated loan | | | | | | | | |
+------------------------+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| -loans to group | | | | | | 21,276,360 | | 2,392,600 | |
| companies | | | | | | | | | |
+--------------------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| Other | | | | | | | 3,994 | | | |
| debtors | | | | | | | | | - | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | | |
+------------------------+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | 30,184,960 | | 11,324,938 | |
+----------------------------------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| Long-term debtors (receivable after more than one | | | | | |
| year) | | | | | |
+-------------------------------------------------------+----------+---------------------+----------+---------------------------+----------+
| Amounts owed by group companies - Long term | | | 810,947,690 | | 832,224,050 | |
| loans | | | | | | |
+---------------------------------------------+---------+----------+---------------------+----------+---------------------------+----------+
| Deferred tax asset | | | | | | 1,523,077 | | 2,054,033 | |
| (see note 8) | | | | | | | | | |
+--------------------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | 812,470,767 | | 834,278,083 | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| 6. Creditors due within one | | | | 2010 | | 2009 | |
| year | | | | | | | |
+----------------------------------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | GBP | | GBP | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| Amounts owed to group | | | | | | | 1,258 | |
| companies | | | | | - | | | |
+------------------------+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| Debenture loans (see | | | | | 21,276,360 | | 2,392,600 | |
| note 7) | | | | | | | | |
+------------------------+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| Corporation tax | | | | 1,162 | | 1,162 | |
+----------------------------------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| Interest accrued on loan notes | | | | 8,366,748 | | 8,634,586 | |
+----------------------------------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| Interest rate | | | | | | 5,957,630 | | 7,335,834 | |
| derivative | | | | | | | | | |
| liability* | | | | | | | | | |
+--------------------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | 35,601,900 | | 18,365,440 | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| *Includes contracted cash flow with a maturity greater than one year at fair value. | |
+-------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| 7. Creditors due after one year (including | | 2010 | | 2009 | |
| borrowings) | | | | | |
+-------------------------------------------------------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | GBP | | GBP | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| Debentures and | due 1 to 2 | | | | 21,276,360 | | 21,276,360 | |
| loans | years | | | | | | | |
+--------------------+-------------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | due 2 to 5 | | | | 66,709,080 | | 63,829,080 | |
| | | years | | | | | | | |
+----------+---------+-------------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | due after 5 | | | | 722,962,250 | | 747,118,610 | |
| | | years | | | | | | | |
+----------+---------+-------------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | 810,947,690 | | 832,224,050 | |
+--------------------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| Hedge accounting | | | |
+----------------------------------------------------------------------------------------+----------+---------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| The company uses interest rates swaps to hedge exposure to the variability in cash flows on | |
| floating rate debt. At 31 March 2010 the market value of these derivatives, which have been | |
| designated cash flow hedges under FRS 26, is a liability of GBP6.0m (2009 - GBP7.3m). | |
+ +----------+
| | |
+ +----------+
| | |
+-------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | |
+----------+---------+---+---------+----------+---------+----------+---------------------+----------+---------------------------+----------+
| 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 variable 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. | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------+-------------------------------------+
| | | | | | | | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| The ineffectiveness recognised in the income statement on cash flow hedges in the year ended 31 March 2010 was GBPnil (2009 | |
| :GBPnil). The table below summarises variable rate debt hedged at 31 March 2010. | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------+-------------------------------------+
| | | | | 2010 | | 2009 | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| | | | | GBP | | GBP | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| Outstanding: | after one | | | 60,000,000 | | 60,000,000 | |
| | year | | | | | | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| | after two | | | 60,000,000 | | 60,000,000 | |
| | years | | | | | | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| | after five | | | 57,120,000 | | 60,000,000 | |
| | years | | | | | | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| | | | | | | | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| Borrowings repayment analysis | | | | |
+-----------------------------------------------------------------------------+------------------+----------+------------------+----------+
| | | | | | | | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| Borrowings are repayable as follows: | | | | | | |
+--------------------------------------------------+---------+----------------+------------------+----------+------------------+----------+
| Within one year | | | 21,276,360 | | 2,392,600 | |
+--------------------------------------------------+---------+----------------+------------------+----------+------------------+----------+
| 1-2 years | | | 21,276,360 | | 21,276,360 | |
+--------------------------------------------------+---------+----------------+------------------+----------+------------------+----------+
| 2-5 years | | | 66,709,080 | | 63,829,080 | |
+--------------------------------------------------+---------+----------------+------------------+----------+------------------+----------+
| | | | | 109,261,800 | | 87,498,040 | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| After 5 years | | | | 722,962,250 | | 747,118,610 | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| Total | | | | 832,224,050 | | 834,616,650 | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| Fair value of interest rate derivative liability | | 5,957,630 | | 7,335,834 | |
+------------------------------------------------------------+----------------+------------------+----------+------------------+----------+
| Net debt | | | | 838,181,680 | | 841,952,484 | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| | | | | | | | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| Secured bonds on the assets of Meadowhall Limited Partnership | | | |
+------------------------------------------------------------------------------------------------+----------+------------------+----------+
| Class A1 4.986% | Secured Bonds 2037 | Fixed | 605,000,000 | | 605,000,000 | |
+-------------------------------------+----------------------+----------------+------------------+----------+------------------+----------+
| Class A2 3M LIBOR + 0.22% | Secured Bonds 2037 | Floating | 60,000,000 | | 60,000,000 | |
+-------------------------------------+----------------------+----------------+------------------+----------+------------------+----------+
| Class B 4.988% | Secured Bonds 2037 | Fixed | 167,224,050 | | 169,616,650 | |
+-------------------------------------+----------------------+----------------+------------------+----------+------------------+----------+
| | | | | 832,224,050 | | 834,616,650 | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| Fair value of interest rate derivative liability | | 5,957,630 | | 7,335,834 | |
+------------------------------------------------------------+----------------+------------------+----------+------------------+----------+
| Net debt | | | | 838,181,680 | | 841,952,484 | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| | | | | | | | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| At 31 March 2010 taking into account the effect of derivatives, 100% of the bonds were fixed (2009 - 100%). The bonds | |
| amortise between 2007 and 2032, and are secured on properties of group valued at GBP1,257m (2009 - GBP1,142.9m). The | |
| weighted average interest rate is 4.98% (2009 - 4.98%) and the weighted average debt maturity is 14.1 years (2009 - 15.1 | |
| years). | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------+-------------------------------------+
| | | | | | | | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| 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 2010 the company was financed by GBP832.2m (2009 - GBP834.6m) bonds. The market value of the bonds at 31 March | |
| 2010 was GBP42.6m less (2009 - GBP137.8m) 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. | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------+-------------------------------------+
| | | | | | | | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
| 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. | |
+-------------------------------------+------------+---------+----------------+------------------+----------+------------------+----------+
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| 8. Deferred tax | | | | | | | | | | | |
| asset | | | | | | | | | | | |
+------------------------+-----------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| | | | | | | | | 2010 | | 2009 | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| | | | | | | | | GBP | | GBP | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| Balance at 1 April | | | | | | | 2,054,033 | | | | |
| 2009 | | | | | | | | | - | | |
+------------------------+-----------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| (Debited) credited to hedging | | | | | | (530,956) | | 2,054,033 | | |
| and translation reserve | | | | | | | | | | |
+------------------------------------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| Balance at 31 March | | | | | | | 1,523,077 | | 2,054,033 | | |
| 2010 | | | | | | | | | | | |
+------------------------+-----------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| The deferred tax asset relates primarily to timing differences arising with | | |
| respect to the revaluation of interest rate derivatives. | | |
+ +-------------------------------+----------+
| | | |
+---------------------------------------------------------------------------------------------------------+-------------------------------+----------+
| | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| 9. Share capital | | | | | | | | | | |
+------------------------------------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| | | | | | | | | 2010 | | 2009 | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| | | | | | | | | GBP | | GBP | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| Allotted, called up and fully | | | | | | |
| paid | | | | | | |
+------------------------------------+---------------------------------------+------------+-+-------------+-------------------------------+----------+
| Ordinary shares of GBP1.00 each | | | | | | | | |
+----------------------------------------------------------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| Balance as at 1 April and as at 31 March: 2 shares | | 2 | | 2 | | |
+--------------------------------------------------------------------------+-+------------+-+-------------+-------------------------------+----------+
| | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| Allotted, called up and partly | | | | | | | | | | |
| paid | | | | | | | | | | |
+------------------------------------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| Ordinary shares of GBP1.00 each partly paid up to | | | | | |
| GBP0.25 per share | | | | | |
+----------------------------------------------------------------------------+------------+-+-------------+-------------------------------+----------+
| Balance as at 1 April and as at 31 March: 49,998 | | 12,500 | | 12,500 | | |
| shares | | | | | | |
+--------------------------------------------------------------------------+-+------------+-+-------------+-------------------------------+----------+
| | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| | | | | | | | | |
+----------------------------------------------------------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| | | | | | | | | 12,502 | | 12,502 | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+-------------------------------+----------+
| 10. Reconciliation of movements in shareholders' funds and | | | | | |
| reserves | | | | | |
+-----------------------------------------------------------------------------------------+-+-------------+--------------------+----------+----------+
| | | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| | | | | Share | | Hedging | | Profit | | Total | | | |
| | | | | capital | | and | | and | | | | | |
| | | | | | | translation | | loss | | | | | |
| | | | | | | reserve | | account | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| | | | | GBP | | GBP | | GBP | | GBP | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| | | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| Opening shareholders' funds | | 12,502 | | (5,006,044) | | 7,073 | | (4,986,469) | | | |
| (deficit) | | | | | | | | | | | |
+------------------------------------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| | | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| Profit for the | | | | | | | 3,045 | | 3,045 | | | |
| financial year | | | - | | - | | | | | | | |
+------------------------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| | | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| Derivative valuation movements on | | | 1,620,517 | | | | 1,620,517 | | | |
| net | - | | | | - | | | | | |
+-----------------------------------------------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| investments | | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| | | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| | | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| Taxation on hedging | | | | | (530,956) | | | | (530,956) | | | |
| and translation | | | - | | | | - | | | | | |
| movements | | | | | | | | | | | | |
+ +-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| | | | | | | | | | | | | |
+------------------------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| | | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| | | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| Closing shareholders' funds | | 12,502 | | (3,916,483) | | 10,118 | | (3,893,863) | | | |
| (deficit) | | | | | | | | | | | |
+------------------------------------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| | | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| 11. Capital commitments | | | | | |
+-----------------------------------------------------------------------------------------+-+-------------+--------------------+----------+----------+
| | | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| The company had capital commitments contracted at 31 March 2010 of GBPnil | | | |
| (2009 - GBPnil). | | | |
+---------------------------------------------------------------------------------------------------------+--------------------+----------+----------+
| | | | | | | | | | | | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
| 12. 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. | | | |
+ +--------------------+----------+----------+
| | | | |
+-------------+----------+-----------+----------+----------+-+-------------+-+------------+-+-------------+--------------------+----------+----------+
+----------+----------+--------+--+--------+--+--------+--+--------+--+--------+----------+
| 13. Related parties | | | |
+------------------------------------------------------------------++--------+----------+
| | | | | | | | | | | | |
+----------+----------+--------++--------++--------++--------++--------+----------+
| The company has taken advantage of the exemption granted to wholly owned | |
| subsidiaries not to disclose transactions with group companies under the | |
| provisions of Financial Reporting Standard 8. | |
+ +----------+
| | |
+------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | |
+----------+----------+--------++--------++--------++--------++--------+----------+
| 14. Subsequent events | | | |
+------------------------------------------------------------------++--------+----------+
| | | | | | | | | | | | |
+----------+----------+--------++--------++--------++--------++--------+----------+
| There have been no significant events since the year end. | |
+------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | |
+----------+----------+--------++--------++--------++--------++--------+----------+
| 15. 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 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 URANRRBABOAR
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