RNS Number:9588U
London Town PLC
17 April 2007
London Town plc
("London Town" or "the Company")
Results for the year ended 31 December 2006
The Board of London Town announces the results of the Company for the year ended
31 December 2006.
Highlights
* Acquisition of a significant portfolio of pubs during the year - at 31
December 2006 London Town owned 181 leased and tenanted pubs. Since the year end
the Company has purchased a further 44 pubs.
* Mark Crowther appointed Chief Executive in March 2007. Mark has over 15
years' experience in the leisure, food and beverage sector and joined the
Company from Carlsberg, where he was UK on-trade sales director.
* London Town intends to grow its business by acquiring additional pub
assets, improving revenue and margins in the existing portfolio, recruiting and
retaining high quality tenants and actively managing the portfolio.
* The results for 2006 include only:
- seven months income from the 14 pubs acquired on 31 May 2006, and
- ten days income from the 162 pubs acquired on 21 December 2006.
* Operating profit for the year was #125,000 (2005: operating loss of
#719,000)
After net finance costs of #647,000 (2005:#280,000) the loss before tax was
#552,000 (2005: #990,000).
+---------------------------------------+--------------------------------------+
|For further information, please | |
|contact: | |
+---------------------------------------+--------------------------------------+
|Smithfield Consultants |Tel. 020 7360 4900 |
+---------------------------------------+--------------------------------------+
|John Kiely / George Hudson | |
+---------------------------------------+--------------------------------------+
Business Review
Principal activities
During the year to 31 December 2006 London Town plc and its subsidiaries ("the
Group") purchased a significant portfolio of mostly freehold pub assets and at
31 December 2006 held 181 leased and tenanted pubs, located principally in
England. Since the year end the Group has purchased a further 44 pubs and
currently owns 225 pubs.
The principal activities of the Group is property investment, principally in
pubs under lease and tenancy agreements with lessees and tenants and the
development of selected sites with a view to subsequent disposal. The Group's
agreements with tenants, which comprise both tied and free of tie arrangements,
generate income from rents, sales of beer and other drinks, and through profit
share arrangements for income from leisure machines.
Results for the year
The year to 31 December 2006 is the first year that the Group has reported under
International Financial Reporting Standards ("IFRS"). As stated in note 2 this
has had no effect on the profit, net assets and cash flow previously reported
under UK GAAP.
The consolidated income statement for the year is set out below. Gross property
income for the year amounted to #741,000 (2005: #Nil). This income comprises
rents, sales of beer and other drinks, and income from leisure machines. Net
property income was #407,000, an overall margin of 55%. These results reflect
seven months income from 14 pubs acquired on 31 May 2006 and 10 days income from
167 pubs acquired on 21 December 2006. There were no disposals of development
properties during the year. The 2005 disposal proceeds of #11.6m principally
reflect the disposal of the Hopton Street development during that year.
Operating profit for the year was #125,000 (2005: operating loss of #719,000).
After net finance costs of #647,000 (2005: #280,000) the loss before tax for the
year was #522,000 (2005: #999,000).
Pub assets
The Group's 181 pub assets at 31 December 2006 are included in the consolidated
balance sheet at a total #101.8 million comprising investment properties of
#94.6 million and development properties of #7.2 million. The average value per
pub at 31 December 2006 amounted to #562,000.
Under IFRS the investment properties of #94.6 million are carried at fair value
and accordingly these assets were valued by the Directors on 31 December 2006 on
an open market basis. This valuation recorded the pub assets at the purchase
price, as the Directors consider that this approximates the open market value of
the pubs given the relatively short amount of time elapsed since their purchase
and 31 December 2006.
The development properties of #7.2 million, which comprise pub assets held for
development and resale, are carried at the lower of cost and net realisable
value.
Financing
The Group's pub assets are financed by a combination of bank debt, deep discount
bonds and shareholders' equity.
Bank debt at 31 December 2006 amounted to #76.6 million which represents
approximately 75% of the Group's pub assets. At 31 December 2006, 50% of the
interest rate risk of the debt was hedged with derivative financial instruments.
The deep discount bonds amounted to #15.9 million at 31 December 2006. The
discount rate is 10% per annum which is accrued in the consolidated income
statement and not paid until the bond is redeemed. The Group has the option to
redeem these bonds with discount accrued to date at any time and without
penalty. On 13 April 2007 the Group redeemed the deep discount bond issued on 31
May 2006 to a third party at a redemption price of #1.8 million. The remaining
bonds, which amounted to #14.1 million at 31 December 2006, are held by the
three principal shareholders of the Group. The Group intends to redeem these
bonds as soon as practical, either from the proceeds of disposal of development
properties or through a future issue of shares.
The Group has benefited in its recent growth from the support of its three
principal shareholders who presently account for approximately 98% of the issued
share capital. The Group believes that these shareholders are willing to support
further growth whilst acknowledging that the Group intends to widen its
shareholder base as soon as possible.
Net assets
Net assets at 31 December 2006 amounted to #13.3 million (2005: #0.1 million).
Net assets per share at 31 December 2006 amounted to 79.0 pence (2005: 2.4
pence).
The effect of the share placing on 13 April 2007 referred to below is to
increase net assets per share by approximately 8 pence.
Earnings before interest, tax and depreciation ("EBITDA")
EBITDA will be a key measure for monitoring Group performance. For the year to
31 December 2006, which reflected a minimal trading period for the 167 pub
assets acquired on 21 December 2006, EBITDA was a positive #130,000 (2005:
negative #703,000).
Further information on the pubs assets
Geographic location
The regional distribution of the pub assets at 31 December 2006 was as follows:
Location Number Percentage
Scotland 2 1%
North East 1 1%
North West 66 36%
York/Humber 14 8%
East Midlands 4 2%
West Midlands 25 14%
Wales 4 2%
East of England 17 9%
South East 12 7%
South West 36 20%
Total 181 100%
Gross and net property income
The gross and net property income from pub assets for the year to 31 December
2006 comprises the following:
#'000
Gross property income:
Rent 218
Sale of beer and other drinks 520
Income from leisure machines 3
Total 741
Net property income:
Rent 218
Sale of beer and other drinks 210
Income from leisure machines 3
Other costs (24)
Total 407
Purchases of pub assets
During the year the Group purchased two portfolios of pub assets:
On 31 May 2006 the Group completed the purchase of a portfolio of 14 freehold
pubs for an aggregate cash consideration of #5.6 million (including transaction
costs) which was principally funded by bank debt, net of expenses, of #3.7
million and a five year term deep discount bond issued at a subscription price
of #1.7 million by the Group to a third party.
On 21 December 2006 the Group purchased a portfolio of 167 pubs comprising 162
freehold and 5 long leasehold pub assets from Save Investments Limited (a
company controlled by Petchey Holdings Plc) for an aggregate cash consideration
of #96.2 million (including transaction costs). The purchase was funded by a new
bank debt facility of #72.1 million, net of expenses, with the remaining
purchase funds, including working capital, funded by the issue for cash of
shares and deep discount bonds. A placing of 13,752,881 new ordinary shares of
25p each at 104 pence per share raised #13.6 million net of expenses. The
balance of funds was provided by the issue of five year term deep discount bonds
at a subscription price of #14.0 million.
Since 31 December 2006 the Group has purchased a further 44 pubs, comprising 35
freehold pubs and 9 long leasehold pubs for an aggregate cash consideration of
approximately #20.3 million (including transaction costs). The purchase of 5
pubs from Mentor Inns Limited was completed on 19 March 2007 and the purchase of
a further 39 pubs from Save Investments Limited was completed on 13 April 2007.
These purchases have been funded by bank debt of #12.4 million, net of expenses,
and the issue of shares for cash. On 13 April 2007 a placing of 9,434,237 new
ordinary shares of 25p each at 104 pence per share raised #9.8 million before
expenses. The net proceeds of #9.7 million were used to provide the balance of
purchase funds for the 44 pubs as well as the redemption of the deep discount
bond issued on 31 May 2006 at a price of #1.8 million.
Management arrangements
The day to day accounting and administrative tasks involved in managing the pub
assets is carried out by County Estate Management (Pubs) Limited ("County")
under a management contract. County's services includes raising rent demands,
arranging the supply of and invoicing for beer and other drinks, debt collection
and the provision of detailed monthly management and accounting information.
County account to the Group on a monthly basis for net rental income, net income
arising on sales of beer and other drinks and net profit shares from leisure
machines. A deduction is made for County's management fee, being 7% of net
rental income and 10% of other net income from beer and other drinks and from
leisure machines.
Board
The board was strengthened on 26 March 2007 by the appointment of Mark Crowther
as Chief Executive Officer. Mark has over 15 years experience of the leisure,
food and beverages sectors and will be instrumental in building the next phase
of the Group's growth strategy. Prior to joining London Town, Mark was On-Trade
Sales Director for Carlsberg UK where he was responsible for running all
national accounts, independent free trade, wholesale and regional brewer
businesses and the purchasing team. Mark is also currently a non-executive
director of The Close Imperial Pub Company plc and the Close Trading Companies.
Strategic objectives
The Group's principal strategic objectives are:
- The purchase of additional assets to expand the business
- The improvement of revenues and margins across the portfolio generally, with
particular attention to barrelage and machine income in trade tied pubs
- The recruitment and retention of lessees and tenants capable of growing the
businesses. This will be assisted by the implementation of the appropriate
leases and tenancy agreements
- The identification of those pubs where alternative use of the whole or part of
the site may be appropriate or where disposal may provide optimum value for
shareholders
Principal risks and uncertainties
Smoking ban
The Group's pubs operate principally in England where a smoking ban will be
introduced in July 2007. In conjunction with County the Group is working with
lessees and tenants to ensure that they are able both to minimise any adverse
trading impact resulting from the ban as well as take advantage of new trading
opportunities such as food sales that may arise from a smoke free environment.
Recruitment and retention of lessees and tenants
The recruitment and retention of lessees and tenants able to grow the business
will be a principal focus of the Group's management team since this will be a
key driver for the overall improvement in the quality and profitability of the
pub assets. The market for good lessees and tenants is a competitive one and the
Group will work closely with current and prospective lessees and tenants to
ensure that Group offers the right physical and business environment for both
parties to prosper.
Interest rate risk
The Group borrows at a floating rate of interest at a margin above LIBOR and
uses derivative financial instruments principally comprising an interest rate
cap for 50% of its outstanding borrowing to limit the Group's exposure to
increasing interest rates.
Current trading and outlook
Since the year end the Group has traded in line with expectations and remains
committed to its strategic objectives as set out above.
By order of the Board
I G Robinson
Director
17 April 2007
Consolidated income statement for the year ended 31 December 2006
2006 2005
#'000 #'000
Gross property income 741 -
Property outgoings (334) -
_______ _______
Net property income 407 -
Proceeds from sale of development properties - 11,600
Carrying value of development properties sold - (11,558)
_______ _______
Profit on disposal of development properties - 42
Administrative expenses (282) (761)
_______ _______
Net operating profit / (loss) before net finance
costs 125 (719)
Finance income 267 37
Finance expense (914) (317)
_______ _______
Net finance costs (647) (280)
_______ _______
Loss before tax (522) (999)
Tax expense - -
_______ _______
Loss for the year attributable to the equity
holders of the parent company (522) (999)
_______ _______
Earnings per share: As Restated
Basic (15.99p) (44.84p)
Diluted (15.99p) (44.84p)
Consolidated statement of recognised income and expense for the year ended 31
December 2006
Statement of total recognised income and expense
2006 2005
#'000 #'000
Loss for the year (522) (999)
_______ _______
Total recognised income and expense for the period
attributable to equity holders of the parent company (522) (999)
_______ _______
Consolidated balance sheet at 31 December 2006
2006 2005
#'000 #'000
Assets
Non-current assets
Property, plant and equipment 6 11
Investment property 94,554 -
Derivative financial instruments 167 -
_______ _______
94,727 11
Current assets
Inventories 7,240 -
Trade and other receivables 2,761 45
Cash and cash equivalents 2,682 454
_______ _______
12,683 499
_______ _______
Total assets 107,410 510
_______ _______
Liabilities
Current liabilities
Trade and other payables 2,416 442
_______ _______
2,416 442
Non-current liabilities
Derivative financial instruments 5 -
Financial liabilities 91,687 -
_______ _______
91,692 -
_______ _______
Total liabilities 94,108 442
_______ _______
Total net assets 13,302 68
_______ _______
Capital and reserves
Called up share capital 841 144
Share premium account 13,059 -
Retained earnings (598) (76)
_______ _______
Total equity attributable to equity holders of the
parent 13,302 68
company
_______ _______
Consolidated cash flow statement for the year ended 31 December 2006
2006 2005
#'000 #'000
Operating activities
Loss before tax (522) (999)
Depreciation 5 16
Finance income (267) (37)
Finance expense 914 317
Gain on sale of property, plant and equipment - (2)
(Increase) / decrease in inventories (7,240) 11,200
(Increase) / decrease in trade and other receivables (2,716) 164
Increase / (decrease) in trade and other payables 1,974 (351)
_______ _______
Cash (outflow) / inflow from operating activities (7,852) 10,308
Investing activities
Purchase of investment properties (94,554) -
Sale of property, plant and equipment - 25
Purchase of property, plant and equipment - (14)
Redemption of loan stock in joint venture companies - 40
_______ _______
Cash (outflow) / inflow from investing activities (94,554) 51
Financing activities
Issue of ordinary shares 14,503 -
Share issue expense paid (747) -
Proceeds from bank borrowings 76,618 -
Repayment of bank borrowings - (1,900)
Proceeds from issue of deep discount bonds 15,715 -
Repayment of deep discount bonds - (6,509)
Repayment of other borrowings - (1,616)
Purchase of interest rate hedge (188) -
Finance transaction expense paid (844) -
Interest paid (690) (40)
Interest received 267 37
_______ _______
Cash inflow / (outflow) from financing activities 104,634 (10,028)
_______ _______
Increase in cash and cash equivalents 2,228 331
Cash and cash equivalents at beginning of period 454 123
_______ _______
Cash and cash equivalents at end of period 2,682 454
_______ _______
Notes forming part of the preliminary results announcement for the year ended 31
December 2006
1 Accounting policies
Basis of preparation
The principal accounting policies adopted in the preparation of the financial
statements are set out below. The policies have been consistently applied to all
the years presented, unless otherwise stated.
These financial statements have been prepared in accordance with International
Financial Reporting Standards ("IFRSs" and IFRIC interpretations as adopted by
the European Union) issued by the International Accounting Standards Board
("IASB") and with those parts of the Companies Act 1985 applicable to companies
preparing their accounts under IFRS. This is the first time the Group has
prepared its financial statements in accordance with IFRS, having previously
prepared its financial statements under UK Generally Accepted Accounting
Principles ("UK GAAP"). Details of how the transition from UK GAAP to IFRS has
affected the Group's reported financial position, financial performance and cash
flows are given in note 2.
The parent company and subsidiary financial statements continue to be prepared
under UK GAAP.
A summary of the principal Group IFRS accounting policies is set out below.
First time adoption
In preparing these financial statements, the Group has elected to apply the
following transitional arrangements permitted by IFRS 1 "First-time Adoption of
International Financial Reporting Standards":
* Business combinations effected before 1 January 2005 have not been restated.
* Goodwill written off directly to reserves on business combinations effected
before 1 January 1998 has not retrospectively been capitalised and will not be
transferred to the income statement on the disposal of a subsidiary to which it
relates.
At the date of authorisation of these financial statements, the following
Standards and Interpretations were in issue but not yet effective:
* IAS 23 "Borrowing costs" (issued March 2007 and effective for periods
beginning on or after 1 January 2009)
* IFRS 7 "Financial instruments: disclosures" (effective for periods beginning
on or after 1 January 2007)
* IFRS 8 "Operating segments" (effective for periods beginning on or after 1
January 2009)
* IFRIC 7 "Applying the Restatement Approach under IAS 29, Financial Reporting
in Hyperinflationary Economies" (effective for periods beginning on or after 1
March 2006)
* IFRIC 8 "Scope of IFRS 2" (effective for periods beginning on or after 1 May
2006)
* IFRIC 9 "Reassessment of Embedded Derivatives" (effective for periods
beginning on or after 1 June 2006)
* IFRIC 10 "Interim Financial Reporting and Impairment" (effective for periods
beginning on or after 1 November 2006)
* IFRIC 11 "IFRS 2 - Group and Treasury Share Transactions" (effective for
periods beginning on or after 1 March 2007)
* IFRIC 12 "Service Concession Agreements" (effective for periods beginning on
or after 1 January 2008)
Entities in EU Member States can only apply IFRSs and IFRICs that have been
endorsed by the European Union. Of the standards and interpretations listed
above, IAS 23, IFRS 8, IFRIC 10, IFRIC 11 and IFRIC 12 had not yet been endorsed
by the European Union at the date these financial statements were authorised for
issue. They are expected to be endorsed during 2007.
The Directors anticipate that the adoption of these Standards and
Interpretations in future periods will have no material financial impact on the
financial statements of the Group.
Except as noted above, the following principal accounting policies have been
applied consistently in the preparation of these financial statements:
Basis of consolidation
The consolidated financial statements incorporate the results of the parent
company London Town plc ("the Company" or "the parent company") and all of its
subsidiary undertakings (together referred to as "the Group") at 31 December
2006. The results of subsidiary undertakings are included from the date of
acquisition and cease to be consolidated on the date of sale. Intercompany
transactions and balances between Group companies are eliminated in full.
Net property income
Net property income represents the total return earned from property investment
activities. The return is earned through a combination of rental income, profit
from drink sales, and share of machine income.
Gross property income represents income receivable from goods and services
provided in the normal course of business net of discounts and VAT.
The Group invests in pubs under lease and tenancy agreements with lessees and
tenants. The Group's agreements, which comprise both tied and free of tie
arrangements, generate income from rents, sales of beer and other drinks, and
through profit share arrangements for income from leisure machines.
Gross property income comprises:
* Rental income - Rental income is recognised on a straight line basis over
the term of the lease.
* Drink sales - Revenue from supply of drinks to tied premises is recognised
at the point at which the goods are provided, net of any discounts or volume rebates.
* Machine income - The Group's share of net machine income is recognised in
the period to which it relates.
The cost of drink sales is included within property outgoings.
Sale of development properties
Revenue from the sale of development properties is recognised on completion of
the sale.
Investment property
The Group's investment property is revalued annually to open market value, with
changes in the carrying value recognised in the income statement.
Where an incentive (such as a rent free period) is given to a tenant, the
carrying value of the investment property excludes any amount reported as a
separate asset as a result of recognising rental income on this basis.
2 First time adoption of International Financial Reporting Standards
The transition to IFRS has had no effect on the profit, net assets and cash flow
previously reported under UK GAAP. The only changes that have been made are
presentational.
3 Segmental information
Investment Development Development
activities activities Other Total activities
2006 2006 2006 2006 2005
#'000 #'000 #'000 #'000 #'000
Revenue
Gross property income: -
Rental 218 - - 218 -
income
Drink sales 520 - - 520 -
Machine 3 - - 3 -
income
Proceeds from sale
of development
properties - - - - 11,600
_______ _______ _______ _______ _______
741 - - 741 11,600
_______ _______ _______ _______ _______
Loss for the year 371 - (893) (522) (999)
_______ _______ _______ _______ _______
Assets and
liabilities
Total assets 95,372 7,240 4,798 107,410 510
Total liabilities (1,464) - (92,644) (94,108) (442)
_______ _______ _______ _______ _______
Net assets 93,908 7,240 (87,846) 13,302 68
_______ _______ _______ _______ _______
Other information
Capital expenditure 94,554 7,240 - 103,306 -
Depreciation - - 5 5 16
The Group considers the primary segment to be business segment. There is only
one geographic segment as all activities are conducted in the United Kingdom.
4 Operating profit / (loss)
2006 2005
#'000 #'000
This has been arrived at after charging / (crediting):
Rental income from investment properties (218) -
Auditors' remuneration
- in respect of audit services 39 12
- in respect of tax services 9 7
- in respect of advisory services - 47
Depreciation of property, plant and equipment 5 16
Investment property repairs and maintenance 12 -
Investment property management fees 36 -
Operating leases - land and buildings - 28
Profit on disposal of property, plant and equipment - (2)
________ ________
In addition to auditors remuneration set out above, fees of #316,000 (2005 -
#Nil) were incurred in relation to the purchase of properties.
5 Finance income and expense
Finance income
Finance income consists of bank interest income of #267,000 (2005 - #37,000).
Finance expense
2006 2005
#'000 #'000
Bank loans 550 17
Other interest 140 23
Discount on deep discount bonds 142 277
Finance transaction expense 56 -
Loss on derivatives used to manage fair value interest
rate risk 26 -
_______ _______
914 317
_______ _______
The loss on derivatives used to manage fair value interest rate risk relates to
the fair value adjustment to an interest rate cap purchased by the Group for
#188,000 in December 2006 and a nil cost interest rate cap and collar instrument
purchased in June 2006.
6 Loss per share
The calculation of basic loss per share is based on a loss of #522,000 (2005 -
#999,000) and weighted average number of shares of 3,265,810 (2005 restated -
2,229,110). On 21 December 2006 the parent company completed a share split. The
loss per share for 2005 has been restated to reflect this share split.
There are no potentially dilutive shares in 2006 or 2005 and hence there is no
difference between basic and diluted loss per share.
7 Investment property
Long
Freehold leasehold Total Total
2006 2006 2006 2005
#'000 #'000 #'000 #'000
At 1 January - - - -
Additions 91,705 2,849 94,554 -
_______ _______ _______ _______
At 31 December 91,705 2,849 94,554 -
_______ _______ _______ _______
The additions in the year comprise 13 pub assets purchased in May 2006 and 151
pub assets acquired in December 2006. These pub assets were valued by the
Directors on 31 December on an open market basis. This valuation recorded the
pub assets at the purchase price including purchase costs, as the Directors
consider that this approximates the open market value of the pubs given the
relatively short amount of time elapsed since their purchase and 31 December
2006.
8 Inventories
2006 2005
#'000 #'000
Development properties 7,240 -
_______ _______
9 Cash and cash equivalents
2006 2005
#'000 #'000
Cash available on demand 582 114
Short term deposits 2,100 340
_______ _______
2,682 454
_______ _______
10 Financial liabilities - non-current
2006 2005
#'000 #'000
Secured bank loans 76,618 -
Deep discount bonds 15,857 -
Finance transaction expense (788) -
_______ _______
91,687 -
_______ _______
The bank loans are secured by a fixed charge over the Group's freehold property
and bear interest at floating rates of three month LIBOR plus 1.65%. The bank
loans are for a 5 year term ending on 26 September 2011.
The deep discount bonds are secured by a fixed and floating charge over the
assets and liabilities of the Company, subject to the priority of the secured
bank loans. The deep discount bonds are redeemable at the option of the Company
at any time subject to the priority and consent of the bank. The deep discount
bonds accrue discount at 10% per annum on a compound basis. Details of the bonds
issued are summarised below:
Issue Redemption Subscription Redemption
Date Date Price Price
#'000 #'000
31 May 2006 29 April 2011 1,685 2,692
20 December 2006 20 December 2011 14,030 22,597
_______ _______
15,715 25,289
_______ _______
11 Changes in shareholders' equity
2006 2005
#'000 #'000
Total recognised expense (522) (999)
Issue of shares 14,503 1,489
Share issue expense (747) -
_______ _______
13,234 490
Capital and reserves attributable to equity
holders at the beginning of the period 68 (422)
_______ _______
Capital and reserves attributable to equity
holders at the end of the period 13,302 68
_______ _______
12 Operating leases
The Group's investment property is leased to lessees and tenants for periods of
up to 25 years and generally contains market review clauses both annually and
periodically. The lessees and tenants do not have an option to purchase the
property at the expiry of the lease period. The minimum rent receivable under
non-cancellable operating leases is as follows:
2006 2005
#'000 #'000
Not later than one year 2,505 -
Later than one year but not later than five years 6,657 -
Later than five years 9,779 -
_______ _______
18,941 -
_______ _______
13 Related party transactions
On 21 December the Group acquired a portfolio of 167 freehold pubs from Save
Investments Limited for an open market consideration of #96.2 million including
transaction costs. Save Investments Limited is a wholly owned subsidiary of
Incorporated Holding Limited. Following the transaction, Incorporated Holdings
Limited became a 22.2% shareholder of the Company and therefore Save Investments
Limited is a related party.
On 21 December 2006 and in relation to the purchase of the portfolio of 167
freehold pubs, the parent company issued deep discount bonds at an issue price
of #6.3 million to Burac Invest and Trade Corp.(a 53.9% shareholder which is in
turn a wholly owned subsidiary of The Horizon Charitable Trust), #3.9 million to
Robar Limited (a 22.2% shareholder of the Company) and #3.9 million to
Incorporated Holdings Limited (a 22.2% shareholder of the Company). Details of
the amounts due under the deep discount bonds at the year end to the related
parties are provided in the table below.
2006 2005
#'000 #'000
Burac Invest and Trade Corp.
Subscription price 6,264 -
Accrued discount 19 -
_______ _______
6,283 -
Robar Limited
Subscription price 3,883 -
Accrued discount 12 -
_______ _______
3,895 -
Incorporated Holdings Limited
Subscription price 3,883 -
Accrued discount 12 -
_______ _______
3,895 -
_______ _______
14,073 -
_______ _______
14 Post balance sheet events
Since 31 December 2006 the Group has purchased a further 44 pubs, comprising 35
freehold pubs and 9 long leasehold pubs for an aggregate cash consideration of
approximately #20.3 million (including transaction costs). The purchase of 5
pubs from was completed on 19 March 2007 and the purchase of a further 39 pubs
from Save Investments Limited was completed on 13 April 2007. These purchases
have been funded by bank debt of #12.4 million net of expenses and the issue of
new ordinary shares for cash. On 13 April 2007 a placing of 9,434,237 new
ordinary shares of 25p each at 104 pence per share raised #9.8 million before
expenses. The new ordinary shares rank pari passu in all respects with the
existing ordinary shares. The net proceeds of #9.7 million were used to provide
the balance of purchase funds for the 44 pubs as well as the redemption of the
deep discount bond issued on 31 May 2006 at a price of #1.8 million.
15 Report and Accounts
The financial information set out in this announcement has been extracted from
the audited consolidated financial statements of London Town plc for the year
ended 31 December 2006, which were authorised for issue by the Board as a whole
following their approval on 17 April 2007 and which have an unqualified audit
report. The information set out in this part does not constitute statutory
accounts within the meaning of section 240 of the Companies Act 1985. The
Companies Act 1985 permits Directors to reverse the financial statements
subsequent to issuance if they are found to be defective.
The audited accounts of the Company for the year ended 31 December 2006 will be
posted to Shareholders shortly and will be delivered to the Registrar of
Companies. Copies will be available to the public at the Company's offices, 7
Cowley Street, London, SW1P 3NB.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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