TIDMCRC
RNS Number : 5974K
Circle Property PLC
17 December 2018
17 December 2018
Circle Property Plc
("Circle" or the "Company")
Interim Results show continued strong NAV and income growth
Circle Property Plc (AIM: CRC), the specialist regional UK
office investment and development company today announces its
results for the six months to 30 September 2018. The results show a
continuation of the strong asset management led total returns that
the Company has achieved since IPO in February 2016.
Financial highlights
-- NAV per share up 30.33% to GBP2.75 (30 September 2017:
GBP2.11), representing a 19.80% uplift since 31 March 2018
(GBP2.30p). The Company's NAV has now increased by 84.56% since IPO
in February 2016.
-- Portfolio valuation up 12.37% to GBP124.8m (31 March 2018: GBP111.13m).
-- Since IPO, Circle has delivered a NAV compound average growth
rate of 29.5% and a total return compound average growth rate of
32.1%.
-- 9.9% increase in annualised contracted rental income to
GBP7.51m (31 March 2018: GBP6.83m). A further GBP214,582 of
contracted rent has been signed since the period end.
-- 25.2% increase in net rental income to GBP3.80m (30 September 2017: GBP3.01m).
-- 60% increase in profit before tax to GBP13.80m (30 September 2017: GBP8.6m).
-- 28% increase in net operating profit to GBP2.30m excluding
gains on investment properties (30 September 2017: GBP1.80m).
-- Due to investment sales above valuation and valuation
uplifts, LTV has reduced to 40% (31 March 2018: 45.5%).
-- Interim dividend of 3.0p per share, which maintains the level
of dividend paid for the previous reporting period. This dividend
will be paid on 31 January 2019 to shareholders on the register on
28 December 2018 with an ex-dividend date of 27 December 2018.
Operational highlights
-- The Company's current redevelopment and refurbishment
pipeline is now complete, with Somerset House, providing 38,805 sq
ft (10.33% of the Company's asset total office floor area)
completed and let within the last 12 months. BE Offices' fit-out of
Somerset House is expected to be complete in Spring 2019 with one
third of the space already reserved for licensees of the serviced
office operator.
-- Portfolio occupancy of 90%
-- WAULT of 10.15 years to break (31 March 2018: 7.24 years) and
11.07 years (31 March 2018: 10.50 years) to expiry.
-- Leasing momentum continues on competitive terms:
-- In July 2018, ALD Automotive Ltd leased 5,400 sq ft in Park
House, Northampton at a rent of GBP77,462 per annum (GBP14.32 psf)
for a 10-year term with a five-year tenant break.
-- Two new five-year leases completed at 36 Great Charles Street
Birmingham, for a combined annual headline rent of GBP93,264,
before incentives. In June 2018, Vectos Microsim Ltd took the 1,253
sq ft rear suite of the seventh floor and in July 2018, Shaw Trust
leased the 3,600 sq ft first floor.
-- In September, a lease variation was completed with the
Company's largest tenant, Compass Contract Services Limited (part
of Compass Group) at Kents Hill Park, Milton Keynes, whereby the 15
and 20 year break options on a 25 year lease were removed, whilst
the 3% per annum fixed rental increases were replaced by annual RPI
increases.
-- In November 2018 (post period end) the remaining 13,500 sq ft
on the ground floor at K2 Kents Hill Business Park, Milton Keynes
was let to Deutsche Telekom subsidiary, T-Systems Ltd, at
GBP214,582 pa (GBP15.50 per sq ft) on a 10-year term with tenant
break at the fifth year.
Portfolio restructuring and disposal programme
-- In line with the Company's strategy of disposing of legacy
non-core assets and focusing its portfolio on the undersupplied
regional office market, a petrol filling station let to the
Co-Operative Group in Amesbury was sold to an institutional
investor for GBP3.5m in July 2018, representing an 18.64% uplift on
the 31 March 2018 valuation. The sale was simultaneous with the
completion of a lease extension from 2 to 15 years, without
breaks.
-- In November 2018, two shops let to Morrisons and A-Plan
Insurance in Week Street, Maidstone were disposed of for GBP1.35m,
in line with the valuation.
John Arnold, CEO of Circle Property Plc, commented:
"Circle's continued focus on the active management of its
regional office assets, particularly the leasing of space in the
redevelopment and refurbishment pipeline, has once again delivered
strong portfolio valuation growth and strengthened the Company's
income profile during the first half of the year.
This has been achieved despite the increased levels of
hesitation in signing new tenancies, which we believe largely
results from the nervousness created by extended uncertainty
surrounding Brexit negotiations. However, as anticipated, this has
led to a number of buying opportunities emerging and we are finding
more off-market deals as a result.
As a consequence of our active asset management, we are also
pleased to have disposed of non-core assets at or above
valuation.
We have continued to sign tenants since the period end which
gives us confidence in our ability to lease the remaining vacant
space in the portfolio, adding further income and value to our
assets."
S
This announcement is inside information for the purposes of
Article 7 of EU Regulation 596/2014.
+44 (0)20 7930
Circle Property Plc 8503
John Arnold, CEO
Edward Olins, COO
+44 (0) 20 7397
Cenkos Securities plc 8900
Azhic Basirov
Katy Birkin
Radnor Capital
Joshua Cryer +44 (0) 20 3897
Iain Daly 1830
FTI Consulting +44 (0)20 3727 1000
Giles Barrie Circle@fticonsulting.com
Richard Sunderland
Eve Kirmatzis
Chief Executive's Statement
We have had another strong start to the year building on the
momentum achieved in the previous reporting periods and delivering
on the strategy we set out at the time of the IPO. Our efforts have
translated to significant growth in NAV and portfolio valuation.
Further increases to contracted rent roll, as well as double-digit
net rental income growth, combined with an extension of the average
lease length to over 11 years have resulted in the portfolio
generating higher quality and more visible income to underpin the
Company's dividend.
We have now completed the Company's current redevelopment and
refurbishment programme and our focus is now firmly on both leasing
the remaining 10% of the portfolio which was vacant at the end of
the period and continuing to explore ways to grow the Company.
In terms of leasing up space, we have made good progress after a
strong first half, with additional lets occurring since the period
end. The fact that our stock selection and asset management
programme means we are able to offer well located and recently
refurbished high quality space at competitive rents, combined with
the ongoing decline in regional office supply due to residential
conversion permitted development rights, gives us confidence in our
ability to continue to attract tenants.
In addition to creating value and income through leasing vacant
space, we will also continue to undertake initiatives that allow us
to drive returns from our leased stock such as through the lease
re-gear we agreed at Kents Hill Park, Milton Keynes, which resulted
in Circle securing a 25 year RPI linked lease without break with
the tenant.
With this established strong platform we continue to assess ways
to grow the Company including refinancing with our existing and
other lenders, as well as potentially seeking capital from new
investors. We will also continue to dispose of our non-core legacy
assets, with further progress made in this regard early in the
second half, as well as selectively disposing of our standing
assets where we receive a compelling offer. Both of these
initiatives would provide us with capital to reinvest into
opportunities where we believe we can create greater returns by
applying our asset management skills.
Portfolio overview
Kents Hill Park
In November 2018, we completed a letting to Deutsche Telekom
subsidiary, T-Systems Ltd, at GBP214,582 per annum on the remaining
ground floor area. With 50% of the building now let, we are pleased
with the level of interest in the remaining space. Once we make
further progress in the lettings, we intend to take back K3 from
the tenant to undertake a further refurbishment.
Somerset House
The office refurbishment has completed and are let entirely to
BE Group Limited, a serviced office provider, at an annual rent of
GBP795,729. The two ground floor restaurant units are let to Las
Iguanas and Camerons Brewery at a combined annual rental of
GBP395,000.
Great Charles Street, Birmingham
36 Great Charles Street, Birmingham, is being marketed and
during the reporting period, we let two offices totalling 4,853 sq
ft to Vectos Microsim and the Shaw Trust. The combined annual
headline rent is GBP93,264 before incentives. We still have half of
the building available to let, with 12,638 sq ft available in four
floors which are highly divisible to suit current occupancy
trends.
One Castlepark, Tower Hill Bristol
Refurbishment of the 2(nd) floor north comprising 6,351 sq ft
has completed following the JISC surrender of the second floor
suite and re-grant of the third floor at almost double the rent per
sq ft previously passing.
135 Aztec West, Bristol
We are preparing for a comprehensive refurbishment of this
13,258 sq ft property as our tenant only has one year remaining on
their lease where the current rent equated to only GBP13.20 p.s.f.
The current rental value, post refurbishment is likely to exceed
GBP20 per sq. ft.
Outlook
This time last year we reported that there had been a slowdown
in the wider lettings market which, as mentioned above, remains the
case today and we do not expect a return to normality until the
uncertainty around the country's divorce from the EU is clarified.
Despite this, the location and quality of our refurbished assets
has been proven and we have continued to lease existing space. With
our refurbishment programme complete and with less than 8%
portfolio vacancy, we would not expect the same significant
period-on-period return in the second half of 2018 onwards, from
the current portfolio.
However, we continue to look for acquisition opportunities and
are confident that the platform and track record we have
established since IPO, having delivered a total return compound
average growth rate of 32.1% stands us in good stead to continue to
deliver shareholder value in the future.
Dividend Announcement
The Board declares an interim dividend of 3.0 pence per share,
which maintains the level of dividend paid for the previous
reporting period. This dividend will be paid on 31 January 2019 to
shareholders on the register on 28 December 2018 with an
ex-dividend date of 27 December 2018.
Circle Property Plc
Condensed consolidated statement of comprehensive
income
for the 6 months ended 30 September
2018
6 months 6 months 12 months
to to to
30 September 30 September 31 March
2018 2017 2018
Note (unaudited) (unaudited) (audited)
GBP GBP GBP
--------------------------------------- ----- -------------- -------------- ------------
Rental income 4 3,644,353 2,943,673 6,211,820
Other income 4 157,473 92,736 142,585
--------------------------------------- ----- -------------- -------------- ------------
3,801,826 3,036,409 6,354,405
Property expenses 5 (277,512) (425,210) (831,189)
Net rental income 3,524,314 2,611,199 5,523,216
Administrative expenses 6 (1,250,374) (801,185) (2,368,220)
Operating profit before gains
on investment properties 2,273,940 1,810,014 3,154,996
Gains on disposal of investment
properties 494,933 - 1,497
Gains on revaluation of investment
properties 11 11,733,347 7,307,151 11,980,810
Operating profit 14,502,220 9,117,165 15,137,303
Finance income 7 2,056 1,293 3,620
Finance costs 8 (738,061) (553,225) (1,149,720)
Net finance costs (736,005) (551,932) (1,146,100)
Profit for the period before taxation 13,766,215 8,565,233 13,991,203
Taxation 9 (227,372) 99,030 534,864
Profit after taxation 13,538,843 8,664,263 14,526,067
--------------------------------------- ----- -------------- -------------- ------------
Earnings per share 10 0.48 0.31 0.51
--------------------------------------- ----- -------------- -------------- ------------
NAV per share 2.75 2.11 2.30
--------------------------------------- ----- -------------- -------------- ------------
There is no comprehensive income other than that included in the profit
for the period. All of the profit for the period is attributable to
the owners of the Company.
All items in the above statement derive from
continuing operations.
The accompanying notes form an integral part of these condensed consolidated
interim financial statements.
Condensed consolidated statement of financial
position
as at 30 September 2018
Note 30 September 30 September 31 March
2018 2017 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
---------------------------------- ------ ------------- ------------- ------------
Non-current assets
Investment properties 11 115,750,716 96,287,600 106,372,636
Property plant and equipment 49,883 26,080 56,287
Trade and other receivables 12 8,516,589 6,768,045 7,201,845
Deferred tax 1,482,055 1,314,814 1,727,959
Financial instruments at fair value
through profit and loss - 86 -
------------------------------------------ ------------- ------------- ------------
125,799,243 104,396,625 115,358,727
Current assets
Trade and other receivables 12 1,242,391 1,352,137 1,141,191
Deferred tax 165,388 148,626 -
Cash and cash equivalents 3,014,269 5,161,605 2,639,783
---------------------------------- ------ ------------- ------------- ------------
4,422,048 6,662,368 3,780,974
Total assets 130,221,291 111,058,993 119,139,701
---------------------------------- ------ ------------- ------------- ------------
Equity
Stated capital 42,542,179 42,542,179 42,542,179
Treasury share reserve (77,486) (380,001) (257,487)
Retained earnings 35,404,032 17,588,004 22,714,092
---------------------------------- ------ ------------- ------------- ------------
Total equity 77,868,725 59,750,182 64,998,784
Non-current liabilities
Borrowings 13 50,100,845 48,800,835 51,815,616
---------------------------------- ------ ------------- ------------- ------------
50,100,845 48,800,835 51,815,616
Current liabilities
Trade and other payables 14 2,251,721 2,507,976 2,325,301
---------------------------------- ------ ------------- ------------- ------------
2,251,721 2,507,976 2,325,301
Total liabilities 52,352,566 51,308,811 54,140,917
---------------------------------- ------ ------------- ------------- ------------
Total liabilities and equity 130,221,291 111,058,993 119,139,701
---------------------------------- ------ ------------- ------------- ------------
The condensed consolidated interim financial statements were approved
by the Board of Directors on 14 December 2018.
The accompanying notes form an integral part of these condensed consolidated
interim financial statements.
Condensed consolidated statement of
cash flows
for the 6 months ended 30 September
2018
6 months 6 months 12 months
to to to
30 September 30 September 31 March
2018 2017 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
-------------------------------------------- -------------- -------------- -------------
Cash flows from operating activities
Profit for the period before taxation 13,766,215 8,565,233 13,991,203
Adjustments for:
Finance income (2,056) (1,293) (3,620)
Finance expense 738,061 553,225 1,149,720
Depreciation 6,404 3,077 7,405
Gains on revaluation of investment
properties (11,733,347) (7,307,151) (11,980,810)
Gains on disposal of investment properties (494,933) - (1,497)
Share based payments 180,001 - 122,514
Amortisation of loan arrangement fees 35,229 29,406 44,188
Fair value movement on interest rate
swaps - 625 710
(Increase) in trade and other receivables (1,415,944) (406,733) (293,097)
(Decrease)/increase in trade and other
payables (155,751) (113,253) 141,050
Cash generated from operating activities 923,879 1,323,136 3,177,766
Interest and other finance costs paid (695,358) (553,312) (1,116,591)
Interest received 2,056 1,293 3,620
Net cash from operating activities 230,577 771,117 2,064,795
---------------------------------------------- -------------- -------------- -------------
Cash flows from investing activities
Cost of refurbishment of investment
properties (702,121) (2,948,608) (4,528,703)
Cost of acquisition of investment
property - - (4,466,652)
Proceeds from disposal of investment
properties 3,444,933 - 1,497
Cost of additions of property plant
and equipment - - (34,534)
Net cash from investing activities 2,742,812 (2,948,608) (9,028,392)
---------------------------------------------- -------------- -------------- -------------
Cash flows from financing activities
Repayment of borrowings (1,750,000) - -
Drawdown of borrowings - 3,181,005 6,181,005
Dividends paid (848,903) (735,716) (1,471,432)
Net cash used in financing activities (2,598,903) 2,445,289 4,709,573
---------------------------------------------- -------------- -------------- -------------
Net increase / (decrease) in cash
and cash equivalents 374,486 267,798 (2,254,024)
Cash and cash equivalents at the beginning
of the period 2,639,783 4,893,807 4,893,807
---------------------------------------------- -------------- -------------- -------------
Cash and cash equivalents at the end
of the period 3,014,269 5,161,605 2,639,783
---------------------------------------------- -------------- -------------- -------------
The accompanying notes form an integral part of these condensed consolidated
interim financial statements.
Condensed consolidated statement of changes in
equity
for the 6 months ended 30 September
2018
Share Treasury Retained Total
capital shares earnings
reserve
GBP GBP GBP GBP
------------------------------- ------------ ----------- ------------ ------------
As at 1 April 2017 42,542,179 (380,001) 9,659,457 51,821,635
Profit for the period - - 8,664,263 8,664,263
Dividends - - (735,716) (735,716)
As at 30 September 2017 42,542,179 (380,001) 17,588,004 59,750,182
Profit for the period - - 5,861,804 5,861,804
Share-based payments 122,514 - 122,514
Dividends - - (735,716) (735,716)
As at 31 March 2018 42,542,179 (257,487) 22,714,092 64,998,784
Profit for the period - - 13,538,843 13,538,843
Share-based payments - 180,001 - 180,001
Dividends - - (848,903) (848,903)
As at 30 September 2018 42,542,179 (77,486) 35,404,032 77,868,725
-------------------------------- ------------ ----------- ------------ ------------
The accompanying notes form an integral part of these condensed consolidated
interim financial statements.
Notes to the condensed consolidated interim financial
statements
for the 6 months ended 30 September
2018
1 General information
These condensed consolidated interim financial statements are for
Circle Property Plc ("the Company") and its subsidiary undertakings
(together referred to as the "Group").
The Company's shares are admitted to trading on AIM, a market operated
by the London Stock Exchange plc. The Company is domiciled and registered
in Jersey, Channel Islands. The address of its registered office
is 3rd Floor, Standard Bank House, 47-49 La Motte Street, St Helier,
Jersey, JE2 4SZ.
The nature of the Company's operations and its principal activities
are that of property investment in the UK.
2 Principal accounting policies
Basis of accounting
The condensed consolidated interim financial statements have been
prepared in accordance with the IAS 34 "Interim Financial Reporting",
and should be read in conjunction with the Group's last consolidated
financial statements as at and for the year ended 31 March 2018.
They do not include all of the information required for a complete
set of IFRS financial statements. However, selected explanatory notes
are included to explain events and transactions that are significant
to an understanding of the changes in the Group's financial position
and performance since the last financial statements.
Going concern
The Group's business activities, together with the factors likely
to affect its future development, performance and position are set
out in the Chief Executive's statement. The financial position of
the Group, its cash flows, liquidity position and borrowing facilities
are described in these financial statements.
The Group has adequate financial resources together with long term
rental contracts with a wide range of tenants. As a consequence,
the Directors believe that the Group is well placed to manage its
business risk successfully.
The Directors have a reasonable expectation that the Company and
the Group have adequate resources to continue in operational existence
for the foreseeable future. Accordingly, they have adopted the going
concern basis in preparing the interim financial statements.
Estimates and judgements
In preparing these condensed consolidated interim financial statements,
management has made judgements, estimates and assumptions that affect
the application of accounting policies and the reported amounts of
assets and liabilities, income and expenses. Actual results may differ
from these estimates.
The significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty
were the same as those that applied to the consolidated financial
statements as at and for the year ended 31 March 2018.
3 Operating segments
During the period the Group operated in one geographical segment,
which is the United Kingdom, and one reporting segment, which is
investment in commercial property. Therefore no segmental reporting
is required.
4 Revenue 6 months 6 months 12 months
to to to
30 September 30 September 31 March
2018 2017 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------ -------------- -------------- ----------
Rental income 3,122,433 2,676,937 5,816,610
SIC 15 adjustment (spreading of
lease incentives) 521,920 266,736 395,210
-------------------------------------- -------------- -------------- ----------
3,644,353 2,943,673 6,211,820
Insurance recovery 63,473 48,053 99,398
Other income 94,000 44,683 43,187
-------------------------------------- -------------- -------------- ----------
157,473 92,736 142,585
3,801,826 3,036,409 6,354,405
------------------------------------ -------------- -------------- ----------
5 Property expenses 6 months 6 months 12 months
to to to
30 September 30 September 31 March
2018 2017 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------ -------------- -------------- ----------
Property expenses 41,149 140,501 318,002
Property service charges 88,343 144,397 259,588
Property repairs and maintenance
costs - 13,376 29,532
Property insurance 74,967 62,496 130,328
Property rates 73,053 39,440 68,739
Lease variation costs - 25,000 25,000
277,512 425,210 831,189
------------------------------------ -------------- -------------- ----------
6 Administrative expenses 6 months 6 months 12 months
to to to
30 September 30 September 31 March
2018 2017 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------ -------------- -------------- ----------
Staff costs 559,987 397,675 1,321,982
Administration fees 127,307 124,248 250,309
Legal and professional fees 468,441 210,474 504,856
Audit fees 2,004 1,300 51,875
Accountancy fees 2,593 3,221 7,648
Rent, rates and other office costs 32,281 31,533 63,909
Other overheads 51,357 29,657 160,236
Depreciation of tangible fixed
assets 6,404 3,077 7,405
1,250,374 801,185 2,368,220
------------------------------------ -------------- -------------- ----------
7 Finance income 6 months 6 months 12 months
to to to
30 September 30 September 31 March
2018 2017 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
--------------------------------- -------------- -------------- ----------
Bank interest 2,056 1,293 3,620
2,056 1,293 3,620
--------------------------------- -------------- -------------- ----------
8 Finance costs 6 months 6 months 12 months
to to to
30 September 30 September 31 March
2018 2017 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
--------------------------------- -------------- -------------- ----------
Loan interest 682,116 512,518 1,073,998
Loan commitment fees 20,716 10,676 15,824
Loan arrangement fees 35,229 29,406 59,188
Fair value movement on interest
rate swaps - 625 710
738,061 553,225 1,149,720
--------------------------------- -------------- -------------- ----------
9 Taxation 6 months 6 months 12 months
to to to
30 September 30 September 31 March
2018 2017 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
--------------------------------- -------------- -------------- ----------
Current tax 146,856 171,315 (77,031)
Over provision of current tax
in prior year - (77,031) -
Deferred tax charge / (credit) 80,516 57,942 (457,833)
Under provision of deferred tax
credit in prior year - (251,256) -
227,372 (99,030) (534,864)
--------------------------------- -------------- -------------- ----------
10 Earnings per share
Basic earnings per share has been calculated on profit after tax attributable
to ordinary shareholders for the period (as shown on the condensed
consolidated statement of comprehensive income) and the weighted average
number of ordinary shares in issue during the period.
6 months 6 months 12 months
to to to
30 September 30 September 31 March
2018 2017 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
-------------------------------------- --------------- -------------- ------------
Profit for the period 13,538,843 8,664,263 14,526,067
---------------------------------------- --------------- -------------- ------------
Weighted average number of shares 28,296,762 28,296,762 28,296,792
---------------------------------------- --------------- -------------- ------------
Earnings per ordinary share: 0.48 0.31 0.51
---------------------------------------- --------------- -------------- ------------
In the opinion of the Board, treasury shares held to satisfy share
awards to management currently do not have any material value and
hence do not have any dilutive effect. Therefore no diluted earnings
per share has been presented.
11 Investment properties 30 September 30 September 31 March
2018 2017 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
-------------------------------------- --------------- -------------- ------------
Balance brought forward 114,075,000 93,025,000 93,025,000
Cost of refurbishment of investment
properties 594,733 - 4,207,328
Cost of acquisition of investment
property - 2,926,114 4,466,652
Disposal of investment properties (2,950,000) - -
Gains on revaluation of investment
properties 11,733,347 7,307,151 11,980,810
Lease incentive amortisation 1,421,920 266,735 395,210
Fair value of investment properties
per valuation report 124,875,000 103,525,000 114,075,000
---------------------------------------- --------------- -------------- ------------
Unamortised lease incentives (9,124,284) (7,237,400) (7,702,364)
Closing fair value 115,750,716 96,287,600 106,372,636
---------------------------------------- --------------- -------------- ------------
The fair value of the Group's investment properties per the Valuation
Report amounted to GBP124,875,000. The difference between the fair
value of the investment properties per the Valuation Report and the
fair value per the balance sheet of GBP9,124,284 relates to unamortised
lease incentives which are recorded in the financial statements within
non-current and current assets.
The Group has pledged all of its investment properties to secure banking
facilities granted to the Group as detailed in note 13.
The fair value of the Group's investment properties at 30 September
2018 has been arrived at on the basis of valuation carried out by
Savills (UK) Limited. The valuation was carried out in accordance
with the Practice Statements contained in the Appraisal and Valuation
Standards as published by the RICS. In forming their opinion of the
fair value, the independent valuer's had regard to the current best
use of the property, its investment attributes and recent comparable
transactions. The valuation was carried out using the "All Risks Yield"
method taking into consideration both sales and rental evidence and
formulating the opinion of market value taking into account the properties'
locations, specifications and specific characteristics.
During the period the Group disposed of the property at Solstice Park,
Amesbury for a consideration of GBP3,500,000.
12 Trade and other receivables 30 September 30 September 31 March
2018 2017 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
---------------------------------- ------------- ------------- ----------
Non-current
Lease incentives 8,516,589 6,768,045 7,201,845
------------------------------------ ------------- ------------- ----------
Current
Lease incentives 607,695 469,355 500,519
Amounts due from property agents 104,822 92,421 147,689
Amounts due from tenants 384,760 173,707 127,930
VAT - 463,076 167,227
Other receivables 145,114 153,578 197,826
1,242,391 1,352,137 1,141,191
---------------------------------- ------------- ------------- ----------
13 Borrowings 30 September 30 September 31 March
2018 2017 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
--------------------------- ------------- ------------- -----------
Brought forward 51,901,360 45,720,355 45,720,355
Loan repayments (1,750,000) - -
Loan drawdowns - 3,181,005 6,181,005
Facility drawn down 50,151,360 48,901,360 51,901,360
----------------------------- ------------- ------------- -----------
Unamortised lending costs (50,515) (100,525) (85,744)
Total borrowings 50,100,845 48,800,835 51,815,616
----------------------------- ------------- ------------- -----------
The Group entered into to a GBP55 million (2017: GBP50m) revolving facility
with National Westminster Bank plc, with effect from 28 February 2018. The
facility is split into two facilities: (i) a GBP50m Core facility and (ii)
a GBP5m Headroom facility. On the Core facility interest is charged at 1.85%
over LIBOR if the loan to value is less than 55% and 2.75% over LIBOR if
the loan to value is above 55%. On the Headroom facility interest is charged
at 2.35% over LIBOR if the loan to value is less than 55% and 2.75% over
LIBOR if the loan to value is above 55%.
A commitment fee is payable at the rate of 40% per annum of the margin,
where the margin is 1.85% (and the Loan to Value is less than 55%) and 2.75%
(when the Loan to Value is 55% or higher).
14 Trade and other payables 30 September 30 September 31 March
2018 2017 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
----------------------------- ------------- ------------- ----------
Trade payables 103,554 638,437 430,276
Property improvement costs 72,612 498,364 180,000
Wages and salaries - 54,459 443,960
Deferred income 1,511,160 782,446 810,288
Rental deposit accounts 85,586 129,622 129,703
Loan interest payable 291,074 215,333 248,371
VAT 22,379 - -
Valuation fee 15,000 18,000 37,428
Legal and professional fees 3,500 - -
Audit fee - - 45,275
Current taxation 146,856 171,315 -
2,251,721 2,507,976 2,325,301
----------------------------- ------------- ------------- ----------
15 Post balance sheet events
There have been no post balance sheet events that would require disclosure
or adjustment to these financial statements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR LLFVTFVLSLIT
(END) Dow Jones Newswires
December 17, 2018 02:00 ET (07:00 GMT)
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