TIDMFPO
RNS Number : 3373T
First Property Group PLC
24 November 2021
Date: 24 November 2021
On behalf First Property Group plc ("First Property" or
of: "the Group")
Embargoed: 0700hrs
First Property Group plc
Interim Results for the six months to 30 September 2021
First Property Group plc (AIM: FPO), the award-winning property
fund manager and investor with operations in the United Kingdom and
Central Europe, today announces its interim results for the six
months to 30 September 2021.
Highlights:
-- Profit before tax: GBP6.67 million (30 September 2020: GBP2.08 million);
-- Cash reserves: GBP12.24 million (31 March 2021: GBP16.24 million);
-- Substantially reduced net debt: GBP12.56 million (31 March 2021: GBP18.85 million);
-- One new fund established, Fprop Fulcrum Property LP;
-- AUM: GBP576 million (31 March 2021: GBP569 million), of which
GBP533 million managed for third parties (31 March 2021: GBP527
million);
-- Weighted average unexpired fund management contract term: 3
years, 5 months (31 March 2021: 3 years, 11 months);
-- The market value less gross debt of Group Properties amounts
to some GBP46.49 million, of which some 93% or GBP43.44 million is
invested in Poland and Romania;
-- Interim dividend: 0.25 pence per share (30 September 2020: 0.45 pence per share).
Financial Summary:
Unaudited Unaudited Percentage Audited
Six months Six months change Year to
to 30 Sept to 30 Sept 31 March
2021 2020 2021
---------------------------- ------------ ------------ ----------- -----------
Income Statement:
---------------------------- ------------ ------------ ----------- -----------
Statutory profit/ GBP6.67m GBP2.08m 220.7% (GBP5.09m)
(loss) before tax
Diluted earnings/
(loss) per share 5.72p 0.46p 1,143.5% (6.59p)
Total dividend per
share 0.25p 0.45p -44.4% 0.45p
Average EUR/GBP rate 1.1632 1.1159 - 1.1246
Balance Sheet at period
end:
---------------------------- ------------ ------------ ----------- -----------
Investment properties GBP36.87m GBP47.48m -22.3% GBP34.95m
and Inventories at
book value
Investment properties GBP42.91m GBP56.82m -24.5% GBP41.57m
and Inventories at
market value
Associates and investments GBP21.63m GBP21.61m 0.1% GBP21.64m
at book value
Associates and investments GBP28.38m GBP27.86m 1.9% GBP27.47m
at market value
Cash balances GBP12.24m GBP21.21m -42.3% GBP16.24m
Cash per share 11.09p 19.21p -42.3% 14.71p
Gross debt GBP24.80m GBP41.04m -39.6% GBP35.09m
Net debt GBP12.56m GBP19.83m -36.7% GBP18.85m
Gearing ratio at book
value* 36.48% 46.56% - 48.82%
Gearing ratio at market
value** 30.99% 40.09% - 42.05%
Net assets at book GBP43.20m GBP47.11m -8.3% GBP36.79m
value
Net assets at market GBP55.23m GBP61.34m -9.9% GBP48.36m
value
Adjusted net assets
per share (EPRA basis) 48.88p 54.28p -9.9% 42.80p
Period end EUR/GBP
rate 1.1634 1.1025 - 1.1739
* Gearing ratio = Gross debt divided by gross debt plus
net assets at book value.
** Gearing ratio = Gross debt divided by gross debt plus
net assets at market value.
Commenting on the results, Ben Habib, Chief Executive of First
Property Group, said:
"The first half has seen a sharp turnaround in our fortunes,
principally due to the restructuring of a finance lease secured
against our largest Group Property which reduced our debt liability
by some EUR9 million.
"Our balance sheet remains strong with some GBP43 million of net
assets of which some GBP12 million is in cash.
"Our prospects are bright - we have cash to invest, there are
many investment opportunities and occupational demand should pick
up from the lockdown induced lows with a commensurate increase in
the value of our own properties."
Investor Presentation:
A briefing for existing and potential shareholders will be held
at 11:00am GMT today via Investor Meet Company. To participate it
is necessary to register at
https://www.investormeetcompany.com/first-property-group-plc/register-investor
and select to meet the Company. Those who have already registered
and selected to meet the company will have already been invited. A
copy of the accompanying investor presentation and a recording of
the call will be posted on the company website. Questions can be
submitted via the Investor Meet Company dashboard at any time
during the live presentation.
For further information please contact:
First Property Group plc Tel: +44 (20) 7340
0270
Ben Habib (Chief Executive Officer) www.fprop.com
Laura James (Group Finance Director) investor.relations@fprop.com
Jeremy Barkes (Director, Business
Development)
Jill Aubrey (Company Secretary)
Arden Partners (NOMAD & Broker) Tel: + 44 (20) 7614
5900
John Llewellyn-Lloyd (Director, Corporate
Finance)
Antonio Bossi (Director, Corporate
Finance)
SEC Newgate (PR) Tel: + 44 7540106366
Robin Tozer/ Richard Bicknell/ Isabelle firstproperty@secnewgate.co
Smurfit .uk
Notes to Investors and Editors :
First Property Group plc is an award-winning property fund
manager and investor with operations in the United Kingdom and
Central Europe. Its focus is on higher yielding commercial property
with sustainable cash flows. The company is flexible and takes an
active approach to asset management. Its earnings are derived
from:
-- Fund Management - via its FCA regulated and AIFMD approved
subsidiary, First Property Asset Management Ltd (FPAM), which earns
fees from investing for third parties in property. FPAM currently
manages thirteen funds which are invested across the United
Kingdom, Poland and Romania.
-- Group Properties - principal investments by the Group to earn
a return on its own capital, usually in partnership with third
parties. Investments include seven directly held properties in
Poland and Romania, and non-controlling interests in eleven of the
thirteen funds managed by FPAM.
Listed on AIM the Company has offices in London, Warsaw and
Bucharest. Around one third of the shares in the Company are owned
by management and their families. Further information about the
Company and its products can be found at: www.fprop.com .
CHIEF EXECUTIVE'S STATEMENT
Performance:
I am pleased to report interim results for the six months ended
30 September 2021.
Revenue earned by the Group was GBP4.03 million (30 September
2020: GBP6.33 million) yielding a profit before tax of GBP6.67
million (30 September 2020: GBP2.08 million). The reduction in
revenue was mainly associated with the expiry of the previously
over-rented lease at the Group's office block in Gdynia. The
increase in profit before tax was largely attributable to a
reduction of EUR9 million (GBP7.81 million) from EUR25 million to
EUR16 million in the amount owed to ING Bank in final settlement of
the finance lease secured against the Group's office block in
Gdynia, Poland. As part of the transaction, ING was paid EUR4
million and the remainder of the finance lease liability was
replaced by a non-interest bearing loan of EUR12 million (GBP10.31
million) repayable by June 2024.
Diluted earnings per share increased to 5.72 pence (30 September
2020: 0.46 pence).
It is the accounting policy of the Group to carry its properties
and interests in associates at the lower of cost or market value.
Market values are independently assessed at least once a year, on
31 March. The Group ended the period with net assets under the cost
basis of accounting of GBP43.20 million (31 March 2021: GBP36.79
million). The net assets of the Group when adjusted to their market
value less any deferred tax liabilities (EPRA basis) at the period
end was GBP55.23 million (31 March 2021: GBP48.36 million).
Gross debt at the period end amounted to GBP24.80 million (31
March 2021: GBP35.09 million). This in turn reduced the Group's
gearing ratio with properties at book value to 36.48% (31 March
2021: 48.82%) and with properties at market value to 30.99% (31
March 2021: 42.05%). Net debt reduced to GBP12.56 million (31 March
2021: GBP18.85 million).
Group cash balances at the period end stood at GBP12.24 million
(31 March 2021: GBP16.24 million), equivalent to 11.09 pence per
share (31 March 2021: 14.71 pence per share). The reduction from
the financial year end is attributable to the payment of EUR4
million (GBP3.43 million) in part settlement of the finance lease
at the property in Gdynia.
Dividend:
In view of the marked improvement in the Group's position since
the lockdown induced set-back, the Directors have resolved to pay
an interim dividend of 0.25 pence per share (30 September 2020:
0.45 pence per share). It will be paid on 7 January 2022 to
shareholders on the register at 3 December 2021, with an
ex-dividend date of 2 December 2021.
REVIEW OF OPERATIONS
PROPERTY FUND MANAGEMENT (First Property Asset Management Ltd or
FPAM)
Third party assets under management at period end increased to
GBP533 million (31 March 2021: GBP527 million). There were no
purchases or sales of property in the period. Some 66% of
third-party assets under management were located in the UK, 32% in
Poland and 2% in Romania.
One new fund was established in the period, Fprop Fulcrum
Property LP, with an initial equity commitment of GBP10
million.
After the period end the life of The U.K. Pension Property
Portfolio LP was extended by some five years to 13 January 2027. As
part of this restructuring, the Group invested a further GBP3.24
million, increasing its interest to 12.04% (11.1% indirectly via
Fprop UK Special Opportunities LP and 0.94% directly).
Fund management fees are generally levied monthly by reference
to the value of properties under management. In the case of Fprop
Offices LP, the Group is entitled to a share of total profits in
lieu of fund management fees and to receive annual payments on
account equivalent to 10% of total cumulative income profits and
realised capital gains. Under its accounting policy the Group will
not recognise unrealised property revaluations above a given
property's original cost. These payments are adjusted annually, if
necessary, for any overpayments made in previous years up to a
maximum of total past cumulative payments received. As at 30
September 2021 this totalled GBP1.59 million.
Revenue earned by this division increased by 15% to GBP1.91
million (30 September 2020: GBP1.66 million), resulting in profit
before unallocated central overheads and tax of GBP829,000 (30
September 2020: GBP633,000), representing 9% of Group profit before
unallocated central overheads and tax. The increase was primarily
due to a performance fee of GBP206,000 in respect of Fprop Offices
LP (30 September 2020: GBPNil).
At the period end FPAM's fund management fee income, excluding
performance fees and the profit share from Fprop Offices LP, was
being earned at an annualised rate of GBP2.89 million (31 March
2021: GBP2.90 million).
FPAM's weighted average unexpired fund management contract term
at the period end was 3 years, 5 months (31 March 2021: 3 years, 11
months).
The reconciliation of movement in third party funds under
management during the period is shown below:
Funds managed for third parties
(including funds in which the
Group is a minority shareholder)
---------------------- ----------------------------------------
UK CEE Total No. of
GBPm. GBPm. GBPm. prop's
---------------------- --------- -------- -------- ---------
As at 1 April 2021 349.8 177.4 527.2 68
---------------------- --------- -------- -------- ---------
Purchases - - - -
New fund mandates - - - -
Property sales - - - -
Capital expenditure 0.4 0.1 0.5 -
Property revaluation 2.5 1.1 3.6 -
FX revaluation - 1.6 1.6 -
As at 30 Sept 2021 352.7 180.2 532.9 68
---------------------- --------- -------- -------- ---------
An overview of the value of assets and maturity of each of the
funds managed by FPAM is set out below:
Fund Country Fund Assets No of % of total Assets
of investment expiry under properties third-party under management
management assets at market
at market under value at
value management 31 March
at 2021
30 Sept
2021
------------ ---------------- ------------ ------------ ------------ ------------- ------------------
GBPm. % GBPm.
------------------------------ ------------ ------------ ------------ ------------- ------------------
SAM & DHOW UK Rolling * * * *
5PT Poland Dec 2022 7.8 3 1.4 7.7
OFFICES UK Jun 2024 132.5 5 24.9 133.5
SIPS UK Jan 2025 137.3 24 25.8 134.3
FOP Poland Oct 2025 63.3 5 11.9 61.6
FGC Poland Mar 2026 21.3 1 4.0 21.1
SPEC OPPS UK Jan 2027 17.0 4 3.2 17.2
UK PPP UK Jan 2027 65.9 20 12.3 64.8
FKR Poland Mar 2027 20.9 1 3.9 20.7
FCL Romania Jun 2028 8.8 1 1.7 8.7
FPL Poland Jun 2028 58.1 4 10.9 57.6
FUL UK/Poland Indefinite - - - -
------------ ---------------- ------------ ------------ ------------ ------------- ------------------
Total Third-Party
AUM 532.9 68 100.0 527.2
------------------------------ ------------ ------------ ------------ ------------- ------------------
* Not subject to recent revaluation;
The sub sector weightings of investments in FPAM funds is set
out in the table below:
UK Poland Romania Total % of Total
-------------------- ------ ------- -------- ------ -----------
GBPm. GBPm. GBPm. GBPm.
-------------------- ------ ------- -------- ------ -----------
Offices 199.1 103.5 8.8 311.4 58.4
Retail warehousing 92.1 - - 92.1 17.3
Supermarkets 52.2 17.5 - 69.7 13.1
Shopping centres - 50.4 - 50.4 9.4
Industrial 9.3 - - 9.3 1.8
-------------------- ------ ------- -------- ------ -----------
Total 352.7 171.4 8.8 532.9 100.0
-------------------- ------ ------- -------- ------ -----------
% of Total 66.2 32.2 1.6 100.0
-------------------- ------ ------- -------- ------ -----------
GROUP PROPERTIES
At the period end Group Properties comprised seven directly
owned commercial properties in Poland and Romania and interests in
eleven of the thirteen funds managed by FPAM (which are invested in
the UK, Poland and Romania).
The contribution to Group profit before tax and unallocated
central overheads from the Group Properties was GBP8.13 million (30
September 2020: GBP2.30 million), representing 91% of Group profit
before unallocated central overheads and tax. Approximately 96% of
this was attributable to the restructuring of the finance lease
secured against the office block in Gdynia, Poland, which resulted
in the amount owed to ING Bank in final settlement reducing by EUR9
million (GBP7.81 million) from EUR25 million to EUR16 million.
The market value less gross debt of the Group Properties amounts
to some GBP46.49 million, of which some 93% or GBP43.44 million is
invested in Poland and Romania.
1. Directly owned Group Properties (all accounted for under the cost model):
Two of the Group's seven directly owned properties account for
72% of their book value (GBP26.64 million). Both are office
buildings in Poland of which one is in Warsaw (11,000 m(2) ) and
the other in Gdynia (14,000 m(2) ). The balance of 28% by book
value (GBP10.23 million) is invested in two mini-supermarkets in
Poland, a development site in Warsaw, an office block in Bucharest
and a warehouse in Tureni, Romania.
Country Sector No. of Book Market *Contribution *Contribution
properties value value to Group to Group
profit before profit before
tax - period tax - period
to to
30 Sept 30 Sept
2021 2020
--------- ---------------- ------------ ------- ------- --------------- ---------------
GBPm. GBPm. GBPm. GBPm.
Poland,
Gdynia Offices 1 13.75 13.75 **7.51 1.35
Poland,
Warsaw Offices 1 12.89 15.97 0.67 0.66
Poland Supermarkets 3 6.30 6.87 ***0.02 0.08
Offices
Romania and logistics 2 3.93 6.32 0.17 0.18
Total 7 36.87 42.91 8.37 2.27
--------------------------- ------------ ------- ------- --------------- ---------------
* Prior to the deduction of direct overhead and unallocated
central overhead expenses.
**Includes EUR9 million (GBP7.81 million) debt reduction
following restructuring of the finance lease at Gdynia.
***Of which two are let and the third is being redeveloped,
scheduled for completion in FY2023.
The seven directly owned properties generated a profit before
unallocated central overheads and tax of GBP7.73 million (30
September 2020: GBP1.50 million). The increase was almost entirely
attributable to the restructuring of the finance lease secured
against the office block in Gdynia (following the expiry of the
over-rented lease), which resulted in the amount owed to ING Bank
reducing by EUR9 million (GBP7.81 million) from EUR25 million to
EUR16 million. As part of the transaction, ING was paid EUR4
million and the remainder of the finance lease liability was
replaced by a non-interest bearing loan of EUR12 million (GBP10.31
million) repayable by June 2024. The property is largely vacant
(since Feb 2021) and contributed a loss of GBP295,000 (30 September
2020: a profit of GBP1.35 million). We have agreed terms to lease
some 10% of the building and are actively marketing the
remainder.
During the period the Group leased 73% of the vacant office
space in Cha ubińskiego 8 (CH8), the office tower in Warsaw which
was sold at the end of the financial year ended 31 March 2020 but
on which a rent guarantee over the vacant space was provided by the
Group to the new owner, worth around GBP1 million per annum. The
Group's maximum residual liability over the remaining life of the
rent guarantee (until April 2025) has now reduced to some EUR1.37
million (GBP1.19 million), equivalent to some EUR392,000 per annum.
A provision of some EUR532,000 (GBP461,000) has been made as at 30
September 2021 against this remaining liability.
The debt secured against the seven Group Properties reduced to
GBP24.80 million (31 March 2021: GBP35.09 million), mainly as a
result of the restructuring of the finance lease secured on the
office block in Gdynia. The loans secured against the seven
properties are held in separate non-recourse special purpose
vehicles. The loan secured against the property in Bucharest was
increased by EUR1.50 million (GBP1.30 million).
Directly owned Group Properties 30 Sept 2021 31 March 2021
Book value GBP36.87m GBP34.95m
Market value GBP42.91m GBP41.57m
Gross debt (all non-recourse GBP24.80m GBP35.09m
to Group)
Market value less gross debt GBP18.11m GBP6.48m
LTV at book value % 67.28% 100.41%
LTV at market value % 57.81% 84.41%
Weighted average borrowing cost 1.14% 1.60%
Weighted average debt term 4 yrs 1 mths 2 yrs 0 mths
The weighted average unexpired lease term (WAULT) of all seven
properties as at 30 September 2021 was 5 years and 9 months.
2. Associates and Investments
These comprise non-controlling interests in eleven of the
thirteen funds managed by FPAM, of which seven are accounted for as
associates under the cost model, and four are accounted for as
investments in funds and held at fair value.
The contribution to Group profit before tax and unallocated
central overheads from its seven associates and four investments
decreased by 49% to GBP406,000 (30 September 2020: GBP796,000). The
reduction was largely attributable to the Group's shareholding in
Fprop Opportunities plc (FOP), a fund which experienced a reduction
in rent payable following the granting of two new (material) leases
during lockdown at lower rents than were previously being
received.
An overview of the Group's Associates and Investments is set out
in the table below:
Fund % owned Book value Current Group's Group's
by of First market share share
First Property's value of of post-tax of post-tax
Property share in holdings profits profits
Group fund earned by earned by
fund fund
30 Sept 30 Sept
2021 2020
---------------- ---------- ------------ ---------- ------------- --------------
% GBP'000 GBP'000 GBP'000 GBP'000
---------------- ---------- ------------ ---------- ------------- --------------
a) Associates
5PT 40.6 1,319 1,336 72 72
FRS 24.1 - 75 47 11
FOP 43.8 11,114 11,589 175 627
FGC 28.2 2,550 2,651 71 99
FKR 18.1 1,647 1,767 56 92
FPL 23.4 1,350 7,136 (180) (219)
FCL 17.4 600 780 35 41
---------------- ---------- ------------ ---------- ------------- --------------
Sub Total 18,580 25,334 276 723
b) Investments
UK PPP 0.9 621 621 30 14
SPEC OPPS* 4.0 464 464 23 17
OFFICES 1.6 1,964 1,964 77 42
FUL** 2.5 - - - -
---------------- ---------- ------------ ---------- ------------- --------------
Sub Total 3,049 3,049 130 73
---------------- ---------- ------------ ---------- ------------- --------------
Total 21,629 28,383 406 796
---------------- ---------- ------------ ---------- ------------- --------------
* On 16 November 2021 the Group's investment in Fprop UK Special
Opportunities LP increased to 11.07%.
** New fund established - Fprop Fulcrum Property LP. As at 30
September 2021 no funds had been invested.
The contribution from Fprop Krakow Ltd (FKR), a multi-let office
tower in Krakow, was lower due to the expiry in July of the lease
to its largest tenant,representing 4,790m(2) or nearly half the net
internal area.
The loss in Fprop Phoenix Ltd (FPL), which owns an office park
near Krakow Airport, narrowed slightly but is expected to increase
in the second half. Its largest tenant vacated in August. We have
invested substantially in the park both before and during the
pandemic and it now offers very cost effective office space with
first class amenities - including its own railway station, a creche
and kindergarten, a gym, sports ground, BBQ area and conference
centre. The challenge now is to lease it up.
Commercial Property Market Outlook
Poland:
Poland's GDP is forecast to grow by 4.8% in 2021 and 5.0% in
2022, marginally more than forecast inflation. The country's
central bank has increased its key policy interest rate by 40bps to
0.50% in October, and by 75bps to 1.25% in November. It is expected
to increase interest rates to 2.50% by the end of 2022.
Rents in Poland are contractually mostly linked to Eurozone
inflation. We therefore expect rental values broadly to keep pace
with inflation.
Commercial property transactions are picking up as the economy
reopens. Prime yields generally range from 5-6%.
Romania:
Romania's GDP is expected to grow by some 7% in 2021 and 4% in
2022, marginally more than forecast inflation in 2021 but behind
forecast inflation for 2022.
Rents in Romania are contractually mostly linked to Eurozone
inflation. We therefore expect rental values broadly to keep pace
with inflation.
Commercial property transactions are picking up as the economy
reopens. Prime yields generally range from 7-8%.
United Kingdom:
The United Kingdom's GDP growth is rebounding, mainly based on
consumption, as restrictions to economic activity are eased. GDP is
expected to return to its pre-pandemic level in early 2022.
Inflation is also increasing but at a lesser rate than the growth
in GDP.
Investor demand for commercial property is rebounding too, with
capital values for "all commercial property" increasing by 3.8% in
Q3 2021, the fastest rate since Q1 2010. Capital growth year to
date is 6.4%. Rental growth is more elusive.
Our favoured sectors remain retail warehouses and regional
offices but we are also beginning to see value on the high street.
Yields for good secondary commercial property remain
attractive.
Current Trading and Prospects
The first half has seen a sharp turnaround in our fortunes,
principally due to the restructuring of a finance lease secured
against our largest Group Property which reduced our debt liability
by some EUR9 million.
Our balance sheet remains strong with some GBP43 million of net
assets of which some GBP12 million is in cash.
Our prospects are bright - we have cash to invest, there are
many investment opportunities and occupational demand should pick
up from the lockdown induced lows with a commensurate increase in
the value of our own properties.
Ben Habib
Chief Executive
CONSOLIDATED INCOME STATEMENT
for the six months to 30 September 2021
Notes Six months Six months Year to
to 30 Sept to
2021
(unaudited) 30 Sept 31 Mar 2021
2020
(unaudited) (audited)
---------------------------------- ------ ------------- ------------- -------------
GBP'000 GBP'000 GBP'000
Revenue 4,033 6,330 12,119
Cost of sales (1,298) (1,194) (4,128)
Gross profit 2,735 5,136 7,991
Profit on sale of an investment
property - - 161
Debt reduction following 7,809 - -
restructuring of finance
lease
Recycled foreign exchange
gain - - 1,163
Impairment loss to an investment
property - - (7,023)
Operating expenses (4,258) (3,492) (7,363)
Operating profit 6,286 1,644 (5,071)
Share of results in associates 8a 234 723 3,467
Share of associates' revaluation
gain/ (losses) 8a 42 - (2,997)
Investment income 130 73 185
Interest income 3 130 45 67
Interest expense 3 (157) (403) (740)
Profit/ (loss) before tax 6,665 2,082 (5,089)
Corporation tax 4 (129) (404) (179)
Deferred tax 4 (51) (1,140) (2,133)
---------------------------------- ------ ------------- ------------- -------------
Profit/ (loss) for the period 6,485 538 (7,401)
Attributable to:
Owners of the parent 6,457 515 (7,449)
Non-controlling interests 28 23 48
6,485 538 (7,401)
Earnings/ (loss) per share
Basic 5 5.85p 0.47p (6.75p)
Diluted 5 5.72p 0.46p (6.59p)
---------------------------------- ------ ------------- ------------- -------------
All operations are continuing.
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
for the six months to 30 September 2021
Notes Six months Six months Year to
to 30 Sept to 31 Mar
2021 30 Sept 2021
2020
(unaudited) (unaudited) (audited)
--------------------------------------- ------ ------------ ------------ ----------
GBP'000 GBP'000 GBP'000
--------------------------------------- ------ ------------ ------------ ----------
Profit/ (loss) for the period 6,485 538 (7,401)
--------------------------------------- ------ ------------ ------------ ----------
Other comprehensive income
--------------------------------------- ------ ------------ ------------ ----------
Items that may subsequently
be reclassified to profit
or loss:
Exchange differences on retranslation
of foreign subsidiaries 24 (53) (685)
Foreign exchange profit recycled
to the Income Statement - - (1,163)
Net (loss)/ gain on financial
assets at fair value through
Other Comprehensive Income 8b (14) (52) (119)
Taxation - - -
--------------------------------------- ------ ------------ ------------ ----------
Total comprehensive income
for the period 6,495 433 (9,368)
--------------------------------------- ------ ------------ ------------ ----------
Total comprehensive income
for the period attributable
to:
Owners of the parent 6,409 412 (9,440)
Non-controlling interests 86 21 72
--------------------------------------- ------ ------------ ------------ ----------
6,495 433 (9,368)
--------------------------------------- ------ ------------ ------------ ----------
All operations are continuing.
CONSOLIDATED BALANCE SHEET
as at 30 September 2021
Notes As at As at As at
30 Sept 31 Mar 30 Sept
2021 (unaudited) 2021 (audited) 2020 (unaudited)
------------------------------- ------ ------------------ ---------------- ------------------
GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill 153 153 153
Investment properties 6 24,090 22,456 32,544
Property, plant and equipment 130 157 56
Investment in associates 8a 18,580 18,577 18,483
Other financial assets
at fair value through OCI 8b 3,049 3,061 3,128
Other receivables 9 293 487 730
Right of use assets 686 686 584
Deferred tax assets 1,596 1,518 2,307
------------------------------- ------ ------------------ ---------------- ------------------
Total non-current assets 48,577 47,095 57,985
Current assets
Inventories - land and
buildings 7 12,775 12,494 14,940
Current tax assets 5 296 133
Trade and other receivables 9 4,919 5,149 3,216
Cash and cash equivalents 12,239 16,244 21,207
------------------------------- ------ ------------------ ---------------- ------------------
Total current assets 29,938 34,183 39,496
Current liabilities
Trade and other payables 10 (4,635) (3,447) (3,638)
Provisions 11 (1,767) (2,076) (1,826)
Financial liabilities 12a (1,316) (22,637) (25,803)
Current tax liabilities (31) (12) (78)
------------------------------- ------ ------------------ ---------------- ------------------
Total current liabilities (7,749) (28,172) (31,345)
------------------------------- ------ ------------------ ---------------- ------------------
Net current assets 22,189 6,011 8,151
------------------------------- ------ ------------------ ---------------- ------------------
Total assets less current
liabilities 70,766 53,106 66,136
------------------------------- ------ ------------------ ---------------- ------------------
Non-current liabilities
Financial liabilities 12b (13,173) (12,457) (15,241)
Other financial liabilities 13 (10,314) - -
Lease liabilities (686) (686) (584)
Deferred tax liabilities (3,142) (2,974) (3,049)
Net assets 43,451 36,989 47,262
------------------------------- ------ ------------------ ---------------- ------------------
Equity
Called up share capital 1,166 1,166 1,166
Share premium 5,791 5,791 5,791
Share-based payment reserve 179 179 179
Foreign exchange translation
reserve (3,142) (3,108) (1,311)
Purchase of own shares
reserve (2,653) (2,653) (2,653)
Investment revaluation
reserve (369) (355) (288)
Retained earnings 42,225 35,768 44,228
------------------------------- ------ ------------------ ---------------- ------------------
Equity attributable to
the owners of the parent 43,197 36,788 47,112
Non-controlling interests 254 201 150
------------------------------- ------ ------------------ ---------------- ------------------
Total equity 43,451 36,989 47,262
------------------------------- ------ ------------------ ---------------- ------------------
Net assets per share 5 39.13p 33.33p 42.68p
------------------------------- ------ ------------------ ---------------- ------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months to 30 September 2021
Share Share Share- Foreign Purchase Investment Retained Non-controlling Total
Capital Premium Based Exchange of own Revaluation Earnings Interests
Payment Translation Shares Reserve
Reserve Reserve
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
At 1 April 2020 1,166 5,791 179 (1,260) (2,653) (236) 45,060 157 48,204
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
Profit for the
period - - - - - - 538 - 538
Net (loss)/ gain
on financial
assets at fair
value through
other
comprehensive
income - - - - - (52) - - (52)
Movement on
foreign
exchange - - - (51) - - - (2) (53)
Total
Comprehensive
Income - - - (51) - (52) 538 (2) 433
Purchase of - - - - - - - - -
treasury shares
Non-controlling
interests - - - - - - (23) 23 -
Dividends paid - - - - - - (1,347) (28) (1,375)
At 30 Sept 2020 1,166 5,791 179 (1,311) (2,653) (288) 44,228 150 47,262
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
Profit for the
period - - - - - - (7,939) - (7,939)
Net gain/ (loss)
on financial
assets at fair
value through
other
comprehensive
income - - - - - (67) - - (67)
Movement on
foreign
exchange - - - (634) - - - 26 (608)
Foreign exchange
profit recycled
to the income
statement - - - (1,163) - - - - (1,163)
Total
Comprehensive
Income - - - (1,797) - (67) (7,939) 26 (9,777)
Sale of treasury - - - - - - - - -
shares
Purchase of - - - - - - - - -
treasury shares
Non-controlling
interests - - - - - - (25) 25 -
Dividends paid - - - - - - (496) - (496)
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
At 1 April 2021 1,166 5,791 179 (3,108) (2,653) (355) 35,768 201 36,989
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
Profit for the
period - - - - - - 6,485 - 6,485
Net gain/ (loss)
on financial
assets at fair
value through
other
comprehensive
income - - - - - (14) - - (14)
Movement on
foreign
exchange - - - (34) - - - 58 24
Total
Comprehensive
Income - - - (34) - (14) 6,485 58 6,495
Purchase of - - - - - - - - -
treasury shares
Non-controlling
interests - - - - - - (28) 28 -
Dividends paid - - - - - - - (33) (33)
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
At 30 Sept 2021 1,166 5,791 179 (3,142) (2,653) (369) 42,225 254 43,451
----------------- -------- -------- -------- ------------ --------- ------------ --------- ---------------- --------
CONSOLIDATED CASH FLOW STATEMENT
for the six months to 30 September 2021
Notes Six months Six months Year to
to to 30 Sept
2020 (unaudited)
30 Sept 31 Mar
2021 (unaudited) 2021
(audited)
----------------------------------------- ------ ------------------- ------------------ ------------
GBP'000 GBP'000 GBP'000
----------------------------------------- ------ ------------------- ------------------ ------------
Cash flows (used in)/ from
operating activities
Operating profit / (loss) 6,286 1,644 (5,071)
Adjustments for:
Depreciation of investment
property, and property, plant
& equipment 38 949 1,362
Profit on the sale of investment
property - - (161)
Loss on the sale of inventory - - 217
Impairment loss on an investment
property - - 7,023
Debt reduction following restructuring (7,809) - -
of finance lease
(Increase)/ decrease in inventories (77) 21 (129)
Decrease/ (increase) in trade
and other receivables 189 41,999 38,858
Increase/ (decrease) in trade
and other payables 811 (4,242) (2,607)
Other non-cash adjustments 47 23 (126)
Cash generated from operations (515) 40,394 39,366
Income taxes paid 182 (407) (640)
----------------------------------------- ------ ------------------- ------------------ ------------
Net cash flow (used in)/ from
operating activities (333) 39,987 38,726
----------------------------------------- ------ ------------------- ------------------ ------------
Cash flow (used in)/ from investing
activities
Capital expenditure on investment
properties 6 (1,333) (12) (160)
Proceeds from partial disposal 8a - - -
of financial assets held at
fair value through Other Comprehensive
Income
Purchase of property, plant
and equipment (2) - (134)
Proceeds from the sale of an
investment property - - 1,505
Investment in funds 8b (2) (6) (6)
Proceeds from funds 8a 31 - 172
Investment in shares of associates 8a - (62) (605)
Interest received 3 130 45 67
Dividends from associates 8a 242 - 24
Distributions received 130 73 185
Net cash flow (used in)/ from
investing activities (804) 38 1,048
----------------------------------------- ------ ------------------- ------------------ ------------
Cash flow (used in)/ from financing
activities
Proceeds from bank loan 1,289 - -
Repayment of bank loans (574) (23,126) (25,077)
Repayment of finance lease (3,434) (1,358) (2,970)
Purchase of new treasury shares - - -
Sale of shares held in Treasury - - -
Exercise of share options - - -
Interest paid 3 (157) (403) (740)
Dividends paid - (1,347) (1,843)
Dividends paid to non-controlling
interests (33) (28) (28)
----------------------------------------- ------ ------------------- ------------------ ------------
Net cash flow (used in)/ from
financing activities (2,909) (26,262) (30,658)
Net (decrease)/ increase in
cash and cash equivalents (4,046) 13,763 9,116
----------------------------------------- ------ ------------------- ------------------ ------------
Cash and cash equivalents at
the beginning of period 16,244 7,337 7,337
----------------------------------------- ------ ------------------- ------------------ ------------
Currency translation gains/
(losses) on cash and cash equivalents 41 107 (209)
----------------------------------------- ------ ------------------- ------------------ ------------
Cash and cash equivalents at
the end of the period 12,239 21,207 16,244
----------------------------------------- ------ ------------------- ------------------ ------------
NOTES TO THE ACCOUNTS
for the six months ended 30 September 2021
1. Basis of Preparation
-- These interim consolidated financial statements for the six
months ended 30 September 2021 have not been audited or reviewed
and do not constitute statutory accounts within the meaning of
section 435 of the Companies Act 2006. They have been prepared in
accordance with the Group's accounting policies as set out in the
Group's latest annual financial statements for the year ended 31
March 2021 and are in compliance with IAS 34 "Interim Financial
Reporting". These accounting policies are drawn up in accordance
with International Accounting Standards (IAS) and International
Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board and as adopted by the European Union
(EU).
-- The comparative figures for the financial year ended 31 March
2021 are not the full statutory accounts for the financial year but
are abridged from those accounts prepared under IFRS which have
been reported on by the Group's auditors and delivered to the
Registrar of Companies. The report of the auditors was unqualified,
did not include references to any matter to which the auditors drew
attention by way of emphasis without qualifying their report and
did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
-- These interim financial statements were approved by a
committee of the Board on 16 November 2021.
2. Segmental Analysis
Segment reporting for the six months to 30 September 2021
Direct costs incurred by First Property Group plc relating to
the cost of the Board and the related share listing costs are shown
separately under unallocated central costs. The staff incentive
accrual is included under unallocated central costs but will be
reallocated across all segments at the year end.
Fund Management Group Properties
Division Division
-------------------------- ----------------- ------------------------------- ------------ --------
Property Group Associates Unallocated TOTAL
fund management properties and investments central
overheads
-------------------------- ----------------- ------------ ----------------- ------------ --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- ----------------- ------------ ----------------- ------------ --------
Rental income - 1,520 - - 1,520
Service charge
income - 605 - - 605
Asset management
fees 1,702 - - - 1,702
Performance related
fee income 206 - - - 206
-------------------------- ----------------- ------------ ----------------- ------------ --------
Total revenue 1,908 2,125 - - 4,033
-------------------------- ----------------- ------------ ----------------- ------------ --------
Depreciation and
amortisation (25) (68) - - (93)
-------------------------- ----------------- ------------ ----------------- ------------ --------
Operating profit 829 7,788 - (2,331) 6,286
Share of results
in associates - - 234 - 234
Fair value adjustment
to associate - - 42 - 42
Investment income - - 130 - 130
Interest income - 94 - 36 130
Interest expense - (157) - - (157)
Profit/ (loss)
before tax 829 7,725 406 (2,295) 6,665
-------------------------- ----------------- ------------ ----------------- ------------ --------
Analysed as:
Underlying profit/
loss before tax
before adjusting
for the following
items: 423 25 364 (411) 401
Write down, impairment - - - - -
loss/ reversals
Interest on loan
to 'FOP' - 112 - - 112
Debt reduction
following restructuring
of finance lease - 7,809 - - 7,809
Group's share of
revaluation gain
on associates - - 42 - 42
Provision for rent
guarantee - (184) - - (184)
Performance related
fee income 206 - - - 206
One-off AM fee
income from Tesco
deal (FOP) 192 - - - 192
Depreciation on - - - - -
investment property
Staff incentives - - - (1,850) (1,850)
Realised foreign
currency (losses)/
gains 8 (37) - (34) (63)
Profit/ (loss)
before tax 829 7,725 406 (2,295) 6,665
-------------------------- ----------------- ------------ ----------------- ------------ --------
Revenue for the six months to 30 September 2021 from continuing
operations consists of revenue arising in the United Kingdom 29%
(30 September 2020: 14%) and Central and Eastern Europe 71% (30
September 2020: 86%) and all relates solely to the Group's
principal activities.
Segment reporting for the six months to 30 September 2020
Fund Management Group Properties
Division Division
------------------------ ----------------- ------------------------------- ------------ --------
Property Group Associates Unallocated TOTAL
fund management properties and investments central
overheads
------------------------ ----------------- ------------ ----------------- ------------ --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ ----------------- ------------ ----------------- ------------ --------
Rental income - 4,006 - - 4,006
Service charge
income - 663 - - 663
Asset management
fees 1,661 - - - 1,661
Performance related - - - - -
fee income
------------------------ ----------------- ------------ ----------------- ------------ --------
Total revenue 1,661 4,669 - - 6,330
------------------------ ----------------- ------------ ----------------- ------------ --------
Depreciation and
amortisation (10) (976) - - (986)
------------------------ ----------------- ------------ ----------------- ------------ --------
Operating profit 633 1,884 - (873) 1,644
Share of results
in associates - - 723 - 723
Investment income - - 73 - 73
Interest income - 21 - 24 45
Interest expense - (403) - - (403)
Profit/ (loss)
before tax 633 1,502 796 (849) 2,082
------------------------ ----------------- ------------ ----------------- ------------ --------
Analysed as:
Underlying profit/
loss before tax
before adjusting
for the following
items: 644 2,572 796 (680) 3,332
Write down, impairment - - - - -
loss/ reversals
Profit on the sale - - - - -
of 'FOP' shares
Goodwill write - - - - -
off on acquisition
of associates
Group's share of - - - - -
revaluation losses
on associates
Performance related - - - - -
fee income
Depreciation on
investment property - (884) - - (884)
Staff incentives - - - (397) (397)
Realised foreign
currency (losses)/
gains (11) (186) - 228 31
Profit/ (loss)
before tax 633 1,502 796 (849) 2,082
------------------------ ----------------- ------------ ----------------- ------------ --------
Segment reporting for the year to 31 March 2021
Fund Management Group Properties
Division Division
----------------------- ----------------- ------------------------------- ------------ ---------
Property Group Associates Unallocated TOTAL
fund management properties and investments central
overheads
----------------------- ----------------- ------------ ----------------- ------------ ---------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- ----------------- ------------ ----------------- ------------ ---------
Rental income - 6,087 - - 6,087
Service charge
income - 1,544 - - 1,544
Sale of a property
held in inventory - 1,103 - - 1,103
Asset management
fees 3,345 - - - 3,345
Performance related
fee income 40 - - - 40
----------------------- ----------------- ------------ ----------------- ------------ ---------
Total revenue 3,385 8,734 - - 12,119
----------------------- ----------------- ------------ ----------------- ------------ ---------
Depreciation and
amortisation (21) (1,425) - - (1,446)
----------------------- ----------------- ------------ ----------------- ------------ ---------
Operating profit 1,304 (5,090) - (1,285) (5,071)
Share of results
in associates - - 3,467 - 3,467
Fair value adjustment
on associates - - (2,997) - (2,997)
Investment income - - 185 - 185
Interest income - 31 - 36 67
Interest expense - (740) - - (740)
Profit/ (loss)
before tax 1,304 (5,799) 655 (1,249) (5,089)
----------------------- ----------------- ------------ ----------------- ------------ ---------
Analysed as:
Underlying profit/
(loss) before tax
before adjusting
for the following
items: 1,294 3,023 1,472 (1,213) 4,576
Provision in respect
of rent guarantee - (1,030) - - (1,030)
Profit on the sale
of group properties - 161 - - 161
Loss on the sale
of a property held
in inventory - (217) - - (217)
Impairment to an
investment property - (7,023) - - (7,023)
One-off additional
income from our
share of associates
(FOP) - - 2,180 - 2,180
Fair value adjustment
on associates (FOP) - - (2,997) - (2,997)
Recycled foreign
exchange gain - 1,163 - - 1,163
Depreciation - (1,327) - - (1,327)
Performance related
fee income 40 - - - 40
Staff incentives - - - - -
Realised foreign
currency (losses)/
gains (30) (549) - (36) (615)
Total 1,304 (5,799) 655 (1,249) (5,089)
----------------------- ----------------- ------------ ----------------- ------------ ---------
Assets - Group 836 43,873 3,061 14,931 62,701
Share of net assets
of associates - - 18,885 (308) 18,577
Liabilities (120) (44,001) - (168) (44,289)
----------------------- ----------------- ------------ ----------------- ------------ ---------
Net assets 716 (128) 21,946 14,455 36,989
----------------------- ----------------- ------------ ----------------- ------------ ---------
3. Interest Income/ (Expense)
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 Mar 2021
2021 2020
---------------------------------- ---------------------- ---------------------- ------------------------
GBP'000 GBP'000 GBP'000
Interest income -
bank deposits - 24 26
Interest income -
other 130 21 41
Total interest income 130 45 67
---------------------------------- ---------------------- ---------------------- ------------------------
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 Mar 2021
2021 2020
----------------------------------- ---------------------- ---------------------- ------------------------
GBP'000 GBP'000 GBP'000
Interest expense
- property loans (151) (257) (467)
Interest expense
- bank and other (6) (22) (47)
Finance charges on
finance leases - (124) (226)
----------------------------------- ---------------------- ---------------------- ------------------------
Total interest expense (157) (403) (740)
----------------------------------- ---------------------- ---------------------- ------------------------
4. Tax Expense
The tax charge is based on a combination of actual current and
deferred tax charged at an effective rate that is expected to apply
to the profits for the full year.
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 Mar 2021
2021 2020
------------------------- ---------------------- ---------------------- ------------------------
GBP'000 GBP'000 GBP'000
Current tax (129) (404) (179)
Deferred tax (51) (1,140) (2,133)
------------------------- ---------------------- ---------------------- ------------------------
Total (180) (1,544) (2,312)
------------------------- ---------------------- ---------------------- ------------------------
The deferred tax charge for the year ended 31 March 2021 relates
to the reversal of a previously recognised deferred tax asset
following the repayment of the bank loan secured against the
property CH8 in April 2020 .
5. Earnings/ NAV Per Share
The basic earnings per ordinary share is calculated on the
profit on ordinary activities after taxation and after
non-controlling interests on the weighted average number of
ordinary shares in issue, during the period.
Figures in the table below have been used in the
calculations.
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 Mar 2021
2021 2020
-------------------------------------- ----------------------- --------------------------- ------------------------
Basic earnings/ (loss) per
share 5.85p 0.47p (6.75p)
Diluted earnings/ (loss)
per share 5.72p 0.46p (6.59p)
-------------------------------------- ----------------------- --------------------------- ------------------------
Number Number Number
-------------------------------------- ----------------------- --------------------------- ------------------------
Weighted average number of
Ordinary shares in issue
(used for basic earnings
per share calculation) 110,382,332 110,953,578 110,382,332
Number of share options 2,610,000 2,610,000 2,610,000
-------------------------------------- ----------------------- --------------------------- ------------------------
Total number of Ordinary
shares used in the
diluted
earnings per share
calculation 112,992,332 113,563,578 112,992,332
-------------------------------------- ----------------------- --------------------------- ------------------------
GBP'000 GBP'000 GBP'000
-------------------------------------- ----------------------- --------------------------- ------------------------
Basic earnings 6,457 515 (7,449)
Notional interest on share
options assumed to be
exercised 4 4 7
-------------------------------------- ----------------------- --------------------------- ------------------------
Diluted earnings/ (loss) 6,461 519 (7,442)
-------------------------------------- ----------------------- --------------------------- ------------------------
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 Mar 2021
2021 2020
------------------------------------------ ---------------------- ---------------------- ------------------------
Net assets per share 39.13p 42.68p 33.33p
Adjusted net assets per share 48.88p 54.28p 42.80p
------------------------------------------ ---------------------- ---------------------- ------------------------
Adjusted net assets per share are calculated using the fair
value of all investments.
The following numbers have been used to calculate both the net
assets and adjusted net assets per share:
Six months Six months Year
ended ended ended
30 Sept 30 Sept 31 Mar 2021
2021 2020
------------------------------------------ ----------------------- ----------------------- ------------------------
Number Number Number
------------------------------------------ ----------------------- ----------------------- ------------------------
Number of shares in issue
at period end 110,382,332 110,382,332 110,382,332
------------------------------------------ ----------------------- ----------------------- ------------------------
GBP'000 GBP'000 GBP'000
------------------------------------------ ----------------------- ----------------------- ------------------------
Net assets excluding
Non-controlling
interest 43,197 47,112 36,788
For adjusted net assets per Number Number Number
share
------------------------------------------ ----------------------- ----------------------- ------------------------
Number of shares in issue
at period end 110,382,332 110,382,332 110,382,332
Number of share options
assumed
to be exercised 2,610,000 2,610,000 2,610,000
------------------------------------------ ----------------------- ----------------------- ------------------------
Total 112,992,332 112,992,332 112,992,332
------------------------------------------ ----------------------- ----------------------- ------------------------
For adjusted net assets per GBP'000 GBP'000 GBP'000
share
------------------------------------------ ----------------------- ----------------------- ------------------------
Net assets excluding
Non-controlling
interests 43,197 47,112 36,788
Investment properties at
fair value net of deferred
taxes 2,305 4,564 2,663
Inventories at fair value
net of deferred taxes 2,590 3,034 2,701
Investments in associates
at fair value 6,753 6,246 5,827
Other items 381 381 381
------------------------------------------ ----------------------- ----------------------- ------------------------
Total 55,226 61,337 48,360
------------------------------------------ ----------------------- ----------------------- ------------------------
6. Investment Properties
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2021 30 Sept
2021 2020
--------------------------------------------- ---------------------- ------------------- ----------------------
GBP'000 GBP'000 GBP'000
--------------------------------------------- ---------------------- ------------------- ----------------------
1 April 22,456 32,537 32,537
Capital expenditure 1,333 160 12
Disposals - (241) -
Depreciation (3) (1,327) (939)
Impairment loss to an investment - (7,023) -
property
Foreign exchange translation 304 (1,650) 934
Total at end of period 24,090 22,456 32,544
--------------------------------------------- ---------------------- ------------------- ----------------------
Investment properties owned by the Group are stated at cost less
depreciation and accumulated impairment losses.
In 2015 the Directors resolved to depreciate the value of the
property in Gdynia over the remaining term of the lease (which
expired in February 2021) to reflect its residual value. No
depreciation was charged on this property for the period to 30
September 2021. No other property has been depreciated as their
respective estimated residual values are expected to be higher than
their carrying value.
At 31 March 2021, the Directors wrote down the value of the
Gdynia property by GBP7.02 million to reflect the value of the
final settlement agreed with the lending bank, following the
restructuring of the financing in June 2021.
7. Inventory - Land and Buildings
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2021 30 Sept
2021 2020
----------------------------------------- ---------------- ------------------ ----------------
GBP'000 GBP'000 GBP'000
----------------------------------------- ---------------- ------------------ ----------------
1 April 12,494 14,558 14,558
Capital expenditure 132 213 20
Disposals - (1,320) -
Depreciation (55) (84) (31)
Foreign exchange translation 204 (873) 393
Total at end of period 12,775 12,494 14,940
----------------------------------------- ---------------- ------------------ ----------------
The Group's total interest in Blue Tower (an office block in
Warsaw) is 48.2% of the building. The fair value of this interest
is EUR18.58 million as at 30 September 2021 and 31 March 2021 but
is stated at cost as above.
The disposal in the year ended 31 March 2021 relates to the sale
of another property related to Blue Tower. Consideration of GBP1.10
million was received in respect of this sale resulting in a loss on
disposal of GBP217,000. The fair value of this interest as at 31
March 2021 was EUR2.10 million.
8. Investments in associates and other financial investments
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2021 30 Sept
2021 2020
--------------------------------- ----------- ------------- -----------
a) Associates GBP'000 GBP'000 GBP'000
Cost of investment at beginning
of period 18,577 17,698 17,698
Additions - 605 62
Disposals - - -
Repayment of shareholder
loan (31) (172) -
Share of associates profit
after tax 234 3,467 723
Share of associates revaluation
losses 42 (2,997) -
Dividends received (242) (24) -
Cost of investment at end
of period 18,580 18,577 18,483
--------------------------------- ----------- ------------- -----------
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2021 30 Sept
2021 2020
------------------------------ ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
------------------------------ ----------- ------------- -----------
Investments in associates
------------------------------ ----------- ------------- -----------
5th Property Trading Ltd 1,627 1,555 1,508
Fprop Romanian Supermarkets
Ltd - 194 179
Fprop Galeria Corso Ltd 2,550 2,479 2,445
Fprop Krakow Ltd 1,648 1,592 1,543
Fprop Cluj Ltd 600 596 560
Fprop Phoenix Ltd 1,349 1,530 1,690
Fprop Opportunities plc 11,114 10,939 10,866
------------------------------ ----------- ------------- -----------
18,888 18,885 18,791
------------------------------ ----------- ------------- -----------
Less: Group share of profit
after tax withheld on sale
of property to an associate
in 2007 (308) (308) (308)
------------------------------ ----------- ------------- -----------
Cost of investment at end
of period 18,580 18,577 18,483
------------------------------ ----------- ------------- -----------
The withheld profit figure of GBP308,000 represents the removal
of the percentage of intercompany profit resulting from the sale of
the property in 2007 to 5th Property Trading Ltd (an associate).
The figure will reduce when there is a reduction in First Property
Group's stake in 5th Property Trading Ltd.
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2021 30 Sept
2021 2020
-------------------------------- ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
-------------------------------- ----------- ------------- -----------
b) Other financial investments
-------------------------------- ----------- ------------- -----------
Cost of investment at 1 April 3,061 3,174 3,174
Additions 2 6 6
Repayments - - -
Disposal - - -
(Decrease)/ increase in fair
value during the period (14) (119) (52)
-------------------------------- ----------- ------------- -----------
Cost of investment at end
of period 3,049 3,061 3,128
-------------------------------- ----------- ------------- -----------
9. Trade and Other Receivables
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2021 30 Sept
2021 2020
-------------------------------- ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
Current assets
Trade receivables 953 1,325 1,222
Less provision for impairment
of receivables (260) (281) (356)
-------------------------------- ----------- ------------- -----------
Trade receivables net 693 1,044 866
Other receivables 3,253 3,408 1,757
Prepayments and accrued income 973 697 593
Total at end of period 4,919 5,149 3,216
-------------------------------- ----------- ------------- -----------
Non-current assets
-------------------------------- ----------- ------------- -----------
Other receivables 293 487 730
-------------------------------- ----------- ------------- -----------
The other receivables balance included in non-current assets of
GBP293,000 (31 March 2021: GBP487,000) relates to the deferred
consideration from the sale of an investment property located in
Romania. This has been discounted to reflect its current value.
10. Trade and Other Payables
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2021 30 Sept
2021 2020
----------------------------- ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
Current liabilities
Trade payables 1,108 2,052 1,841
Other taxation and social
security 252 557 621
Other payables and accruals 2,906 691 993
Deferred income 369 147 183
Total at end of period 4,635 3,447 3,638
----------------------------- ----------- ------------- -----------
11. Provisions
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2021 30 Sept
2021 2020
--------------------- ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
--------------------- ----------- ------------- -----------
Current liabilities 1,767 2,076 1,826
--------------------- ----------- ------------- -----------
The provision at 30 Sept 2021 represents a rent guarantee of
GBP458,000 (31 March 2021: GBP786,000) and fit out costs of
GBP1,309,000 (31 March 2021: GBP1,290,000). These provisions are in
respect of the guarantee given as part of the sale of CH8 which
completed in April 2020.
12. Financial Liabilities
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2021 30 Sept
2021 2020
---------------------------- ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
a) Current liabilities
Bank loans 1,316 1,194 1,302
Finance lease obligations - 21,443 24,501
Total at end of period 1,316 22,637 25,803
---------------------------- ----------- ------------- -----------
b) Non-current liabilities
---------------------------- ----------- ------------- -----------
Bank loans 13,173 12,457 15,241
Finance lease obligations - - -
---------------------------- ----------- ------------- -----------
Total at end of period 13,173 12,457 15,241
---------------------------- ----------- ------------- -----------
c) Total obligations under
financial liabilities
Repayable within one year 1,316 22,637 25,803
Repayable within one and
five years 6,835 11,116 8,833
Repayable after five years 6,338 1,341 6,408
---------------------------- ----------- ------------- -----------
Total at end of period 14,489 35,094 41,044
---------------------------- ----------- ------------- -----------
Four bank loans (all denominated in Euros) totalling GBP14.49
million (31 March 2021: GBP41.04 million), included within
financial liabilities, are secured against investment properties
owned by the Group and one property owned by the Group shown under
inventories. These bank loans are otherwise non-recourse to the
Group's assets.
13. Other Financial Liabilities
Six months Year Six months
ended ended ended
30 Sept 31 Mar 2021 30 Sept
2021 2020
------------------------ ----------- ------------- -----------
GBP'000 GBP'000 GBP'000
------------------------ ----------- ------------- -----------
Non-current liabilities 10,314 - -
------------------------ ----------- ------------- -----------
This non-current liability represents the balance of EUR12.00
million which was a result of the restructuring of a finance lease
secured against the office tower in Gdynia. The restructuring
resulted in the amount owed to ING bank in final settlement
reducing by EUR9.00 million (GBP7.81 million). As part of the deal,
the Group acquired the freehold of the property for EUR16.00
million of which EUR4.00 million has been paid and EUR12.00 million
is owed by June 2024. No interest is payable on this non-current
liability.
The interim results are being circulated to all shareholders and
can be downloaded from the company's web site. Further copies can
be obtained from the registered office at 32 St James's Street,
London SW1A 1HD.
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IR BCBDBUBDDGBX
(END) Dow Jones Newswires
November 24, 2021 01:59 ET (06:59 GMT)
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