1 / 27

Interim Results for the Six Months ended 31 st March 2002 20 June 2002

Interim Results for the Six Months ended 31 st March 2002 20 June 2002. Contents. Corporate Statement Financial Highlights for Six Months ended 31st March 2002 Summary Profit and Loss Account Market Value Balance Sheet NAV Movements Cashflow Debt/Gearing Tenanted Residential

baird
Download Presentation

Interim Results for the Six Months ended 31 st March 2002 20 June 2002

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Interim Resultsfor the Six Monthsended 31st March 2002 20 June 2002

  2. Contents • Corporate Statement • Financial Highlights for Six Months ended 31st March 2002 • Summary Profit and Loss Account • Market Value Balance Sheet • NAV Movements • Cashflow • Debt/Gearing • Tenanted Residential • Bromley Joint Venture • Development and Trading • Management Structure • Way Forward

  3. Corporate Statement • Grainger Trust is the UK’s largest quoted residential property investor, directly owning and managing some 5,000 units. Through its joint venture in BPT Limited it has exposure to a further 11,000 units • Its tenanted residential and development activities are strongly cash generative, producing operating cash flows of some £80m pa • Current investment value of tenanted residential portfolio is £324m compared to a vacant possession value of £442m • It also acquires, develops and trades residential and commercial property sites

  4. Financial Highlightsfor Six Months ended 31st March 2002 2002 2001 (restated) Increase • Pre tax profit (2001: pre exceptional item) • NAV per share * • NNNAV per share • Dividend per share • Tenanted residential sales • Market value of all properties * • VP value of tenanted residential stock * • BPT rationalisation continues - £151m of sales achieved since acquisition • Tenanted residential spend in the first half of £54m * Note: Properties last revalued 30th September 2001 £16.8m £13.12 £9.03 3.05p £26.1m £466m £442m £13.7m £13.56 £9.00 2.65p £15.1m £428m £389m +23% -3% - +15% +73% +9% +14%

  5. Summary Profit and Loss Account 2002 £m 2001 £m (Restated) Turnover Operating Contributions:- Tenanted Residential Development and Trading Bromley Joint Venture Net Interest Payable:- Group Exceptional charge Bromley Joint Venture Profit before Tax 104.9 16.7 5.0 15.0 36.7 (4.1) - (15.8) (19.9) 16.8 54.4 9.9 11.5 - 21.4 (7.7) (3.5) - (11.2) 10.2

  6. Market Value Balance Sheet(Prior to contingent tax) (Restated) 31st March 2002 £m 30th Sept 2001 £m Properties at market value Tenanted Residential Development and Trading Total Properties Investments Other Assets Cash Total Assets Formal Debt Net Current Liabilities Deferred Tax Total Liabilities Equity Brought Forward Retained Earnings Taxation taken to reserves Valuation Movements Goodwill Equity Carried Forward Total Liabilities plus Equity 324 142 466 109 3 24 602 (257) (16) (5) (278) (335) (7) - 11 7 (324) (602) 288 140 428 126 1 23 578 (224) (14) (5) (243) (241) (8) 2 (25) (63) (335) (578)

  7. NAV Movements GT £ Bromley £ Total £ Total £m 12.22 1.34 13.56 0.27 (0.42) (0.02) (0.27) (0.44) 13.12 (0.18) (3.91) (4.09) 9.03 301.5 33.0 334.5 6.6 (10.2) (0.4) (6.6) (10.6) 323.9 (4.3) (96.6) (100.9) 223.0 Opening at 30th September 2001 FRS 19 adjustments Restated at 30th September 2001 Retained earnings Valuation movements on sales Tax through reserves Goodwill movements Total movement Closing NAV Less FRS 13 Contingent tax Total adjustments Closing NNNAV (0.04) 0.42 (0.34) (0.02) (0.01) 0.05 (0.15) (1.93) (2.08) 1.38 (0.15) (0.08) (0.26) (0.49) (0.03) (1.98) (2.01)

  8. Cashflow 2002 £m 2001 £m Income from: Net rentals Tenanted Residential sales Development and Trading sales Working capital movements/administration expenses Gross operating cashflow Interest paid (net of loanstock interest) Tax/dividends paid Net new loans Available for property spend Tenanted Residential acquisitions Development and trading acquisitions Net receipts from JV/other investments Increase in cash in the period 6 25 20 (4) 47 (3) (5) 32 71 (54) (19) 3 1 8 14 39 3 64 (13) (4) (3) 44 (9) (17) - 18

  9. Debt/Gearing at 31st March 2002 31st March 2002 30th September 2001 Variable/Fixed Under One Year Variable/Fixed Under One Year Fixed Rate Fixed Rate £54m @ 10.24% £69m @ 6.1% £55m @ 10.3% £74m @5.68% £67m @ 6.59% Fixed Over One Year £53 @ 6.2% Fixed Over One Year £47m @ 6.2% £62m @ 5.64% Hedged Loans Hedged Loans 31.03.02 30.09.01 Blended Interest Rate 7.2% 6.9% £257m Gross Debt £224m £24m Less: Cash £23m £233m Net Debt £201m £324m Market Value Adjusted Equity £335m 72% Gearing 60%

  10. Tenanted Residential - Overview • Stock units up from 4,946 at 30th September 2001 to 5,128 • VP value up to £442m from £389m, average VP £86,000 (£75,000) • Investment value up to £324m from £288m – no revaluation performed • Sales performance reflects strong housing market:- • Total return from tenanted residential division up by £6.8m (69%) • Cash spend of £54m (2001:£9m) on tenanted residential properties in first half No of units sold Average sale price Trading profits realised 31.03.02 395 £66K £13.2m 31.03.01 335 £45K £7.6m

  11. Tenanted Residential Regional VP Summary 31st March 2002 30th September 2001 Midlands/ North Midlands/ North £137.7m 31.2% £100.5m 25.9% £253.1m 57.3% £242.1m 62.3% London London £45.9m 11.8% £50.8m 11.5% Other South Other South Total £441.6m Total £388.5m

  12. Bromley Joint Venture • Rationalisation programme continues, since acquisition to 31st March £151m of properties sold • Major transactions at an advanced stage - Sale of £70m assured tenancies to an institutional fund - Refinancing of significant proportion (£45m) of life tenancy portfolio • Both transactions will enable BPT to retain a meaningful interest in the properties • BPT and GT working together to improve working practices and realise operating synergies

  13. Development and Trading - Overview • Turnover of £19.5m down from £31.6m – no land sales in the period • Gross rentals down to £2.7m from £4.7m- rationalisation of investment portfolio last year continuing with further sales of £7m to 31st March 2002 • Operating profits down to £5.0m from £11.5m – no land sales but profits from residential development and commercial trading • Good progress being made on major development sites:- - Thurrock, three out of four units sold - Slough, construction due to complete mid 2003 - Pimlico, forward sale of some 50 out of 79 units proceeding • Construction of final stage of the spine road at Kennel Farm now under way - sale of a 7 acre site prior to the year end likely • Grainger Homes has commenced operations, 27 units under construction, potential to develop 354 new units

  14. Management Structure • Stephen Dickinson to become non-executive Deputy Chairman with responsibility for Land Development • Rupert Dickinson to become Managing Director • Sean Slade appointed to the board

  15. Way Forward • Continued focus on high margin tenanted residential activities • Use strong cashflow to invest in entrepreneurial development activities • Continue to maximise cash flows from Kennel Farm land sales • Complete rationalisation of BPT to core regulated business

  16. Appendices • Detailed Profit and Loss Account • Analysis of Profit and Loss Account • NNNAV Analysis • Effect of FRS 19 • Tenanted Residential Performance • Tenanted Residential Stock Analysis • Development and Trading Division • Land Development • Investment in Bromley JV

  17. Detailed Profit and Loss Account Six Months to 31st March 2002 £m Six Months to 31st March 2001 (restated) £m Total GT Group Total GT £m Tenanted Residential Development and Trading GT Total Bromley JV Tenanted Residential Development and Trading 34.3 8.1 (3.4) 4.7 13.2 17.9 (1.2) 16.7 16.7 19.5 2.7 (1.1) 1.6 3.9 5.5 (0.7) 4.8 0.2 5.0 22.8 7.7 (4.0) 3.7 7.6 11.3 (1.4) 9.9 9.9 104.9 10.8 (4.5) 6.3 17.1 23.4 (1.9) 21.5 13.8 0.6 0.7 36.6 (19.8) - (19.8) 16.8 - 16.8 (9.5) 7.3 53.8 10.8 (4.5) 6.3 17.1 23.4 (1.9) 21.5 0.2 21.7 (8.1) 4.0 (4.1) 17.6 - 17.6 (6.4) 11.2 51.1 9.7 (2.0) 7.7 3.2 5.8 16.7 (2.9) 13.8 0.4 0.7 14.9 (11.7) (4.0) (15.7) (0.8) - (0.8) (3.1) (3.9) 31.6 4.8 (0.9) 3.9 7.3 11.2 (0.7) 10.5 1.0 11.5 54.4 12.5 (4.9) 7.6 14.9 22.5 (2.1) 20.4 1.0 21.4 (7.7) - (7.7) 13.7 (3.5) 10.2 (3.7) 6.5 Turnover Gross rents and other income Property expenses Net rents Trading profits Release of negative goodwill Administration costs Operating profit Share of JV operating profit Capital profits Release of negative goodwill Operating Contribution Interest payable Loan stock interest received Total interest Net profit before tax and exceptional Exceptional interest Net profit before tax Taxation Net profit after tax

  18. Analysis of Profit and Loss Account 31st March 2002 £m 31st March 2001 £m Grainger Trust Grainger Trust Total Group Bromley Goodwill Total Bromley Bromley Total Exceptional Operating contribution Write back of negative goodwill External interest Contribution before tax and loan stock interest Loan stock interest received/paid Exceptional interest charge Net profit before tax Tax Tax from FRS 19 Profit after tax Earnings per share (p) 21.7 (8.1) 13.6 4.0 17.6 (5.6) (0.8) 11.2 45.2 8.4 (11.7) (3.3) (4.0) (7.3) 2.2 (5.1) (20.4) 6.5 6.5 6.5 (5.3) 1.2 4.9 8.4 6.5 (11.7) 3.2 (4.0) (0.8) 2.2 (5.3) (3.9) (15.5) 30.1 6.5 (19.8) 16.8 16.8 (3.4) (6.1) 7.3 29.8 21.4 (7.7) 13.7 13.7 (4.5) (0.3) 8.9 36.1 (3.5) (3.5) 1.1 2.4 (9.9) 21.4 (7.7) 13.7 (3.5) 10.2 (3.4) (0.3) 6.5 26.2

  19. NNNAV Analysis 31st March 2002 30th September 2001 per share £ £m per share £ £m Net asset value (restated) FRS 13 adjustment Quoted Debenture Institutional debt Fixed rate debt Derivatives (including BPIL) Total Contingent tax NNNAV 13.12 0.08 0.07 0.03 - 0.18 3.91 9.03 323.9 2.0 1.7 0.6 - 4.3 96.6 223.0 13.56 0.09 0.10 0.03 0.07 0.29 42.7 9.00 334.6 2.2 2.3 0.7 2.0 7.2 105.5 221.9

  20. Effect of FRS 19 • Provisions made for contingent tax liabilities arising on corporate acquisitions to be reversed • Restatement of opening NAV at 30th September 2001 from £301.5m to £334.6m (12.22p per share to 13.56p per share) • Negative goodwill at 30th September 2001 increased to £63m • Goodwill released to profit and loss account in line with sales. Release in first half of the year £6.5m • Group tax charge increases because of lack of provision. “Excess” tax charge amounts to £6.1m, of which £5.3m relates to the Bromley JV. • Going forward, release of goodwill will increase pre tax profits; tax charge as a percentage of profits will remain high

  21. Tenanted Residential Performance Six Months to 31st March 2002 • Overall return up from £9.9m to £16.7m (69%) • Average profit per normal unit sold £51K (2001:£30K) at margin on cost of 54.7% (2001:54.3%) • Gross sales value up to £26.1m from sales of 395 units (2001: £15.1m from 335 units) 31st March 2002 31st March 2001 Trading Profits £m Net Rents £m Total £m Total £m London/SE South/South West Midlands/North Management Expenses net of other income Operating Contribution 1.8 0.6 2.3 4.7 9.2 1.2 2.8 13.2 11.0 1.8 5.1 17.9 (1.2) 16.7 5.8 1.4 4.1 11.3 (1.4) 9.9

  22. Tenanted Residential Stock Analysis At 31st March 2002 Investment Value Cost £m Average VP £K Total VP £m No. of Units Total £m Rent £m % VP Regulated Assured periodic Assured shorthold Life tenancies Vacant Other properties Total Stock 30th September 2001 3,902 244 500 153 329 5,128 5,128 4,946 143.9 7.9 25.5 6.5 12.8 196.6 10.7 207.3 163.1 87 70 67 100 65 83 75 339.2 17.1 33.7 15.3 21.3 426.6 15.0 441.6 388.5 72 72 81 53 90 73 73 243.5 12.3 27.4 8.2 19.1 310.5 13.7 324.2 287.7 12.3 0.9 2.0 0.1 0.0 15.3 0.4 15.7 14.4

  23. Development & Trading Division 31st March 2002 30th September 2001 £m £m Commercial Trading Commercial Trading Investment Investment 16.2 Residential Development Residential Development 20.2 18.4 27.0 15.9 25.5 38.3 37.5 41.3 Residential Land Development Residential Land Development 42.1 Commercial Development Commercial Development 31.03.02 31.09.01 £142.3m Total Trading Valuation £140.1m £101.2m Cost £93.6m £4.5m Current net rentroll £5.4m

  24. Development & Trading Division Major Projects • Landmark Place, Slough 190,000sq.ft. £35m mixed use development. Completion mid 2003, hotel and leisure units prelet, strong interest in ground floor food unit. Office element 69,000 sq.ft. • Thurrock 157,000sq.ft 4 unit award winning industrial scheme. Three units sold for £11m. • Townsend House 80,000sq.ft mixed use development in Victoria. Approach being revised following Inspector’s rejection, existing buildings reversionary and worth more than cost. • Pimlico Construction commenced on mixed used development. Completion mid 2004. GT interest in 79 private apartments, negotiations for forward sale of two thirds of these well advanced. • Macaulay Road, Clapham Application for 90,000sq.ft mixed use scheme submitted. Construction start date estimated 2004. • Clerkenwell Refurbishment of 12,800sq.ft office building complete and Interest from tenants and purchasers.

  25. Land Development no sales in period but will resume once final infrastructure works undertaken. 37 acres available of which 26 acres are conditionally sold. option over 640 acre site, approximately 2000 units allocated in local plan. Reserve of 1,000 units also to be allocated. Masterplanning continues, enquiries in public should commence 2003 with OPP possible in 2005/06. small scale house building division to maximise returns on land sites, mostly in North East England. Construction of 27 houses in hand, with potential currently to develop a total 354 new units. • Kennel Farm • West Waterlooville • Grainger Homes

  26. Investment in Bromley JV Statutory Accounts £m Market Value Balance Sheet £m Opening investment 30th September 2001 Restated for FRS 19 Additional share capital Loan stock repayment Share of retained loss Valuation movements Goodwill eliminated Closing investment 31st March 2002 55.1 0.9 54.2 1.6 (6.3) (3.8) 0.1 - 45.8 91.6 34.0 125.6 1.6 (6.3) (3.8) (1.8) (6.5) 108.8 Note: Underlying investment assets have not been revalued at 31st March 2002.

  27. Interim Resultsfor the Six Monthsended 31st March 2002 20 June 2002

More Related