Interim Results
November 27 2003 - 2:00AM
UK Regulatory
RNS Number:5524S
Pillar Property PLC
27 November 2003
PILLAR PROPERTY PLC
("Pillar")
Interim Results for the Six Months Ended 30 September 2003
Pillar, the property investment and development company, is the UK's largest
retail park operator, with 4.8 million sq. ft. on 24 retail parks under
management.
Financial Highlights
Six months to Six months to
30.09.03 30.9.02
Rental Income #34.2m #28.0m
Operating Profit #25.6m #18.9m
(including share of joint ventures)
Profit before tax #2.8m #3.4m
Earnings per share 1.8p 2.5p
Dividend per share 2.4p 2.3p
Net asset value per share** 522p 439p
Funds under management* #2.47bn #2.1bn
*investment properties in HUT/CLOUT
**Based on valuation as at 31 March 2003
Achievements
* Since 30 September, sales agreed for Omni, Edinburgh and Fulham Broadway
leisure schemes. Expected completion by financial year end;
* Since 30 September, sale of Banbury Shopping Centre for consideration of
#103m;
* Liquidity increased in Hercules Unit Trust ("HUT") with #277m of units
traded in the secondary market since marketing began in March 2002;
* Strong performance of HUT, with net unit value up 8.7%;
* Strategy to explore ways of splitting the City of London Office Unit
Trust ("CLOUT")into an income and an opportunity fund continues;
* Significant progress made with expansion into continental Europe; two
retail parks acquired in Portugal and Italy following period end;
* Creation of Pillar Retail Europark Fund ("PREF") underway, with trading
expected to commence early in New Year.
Raymond Mould, Chairman of Pillar, commented:
"We have achieved strong progress in the first half towards our stated goal of
being the leading manager of retail parks in Britain and Continental Europe.
Plans are now well advanced to create PREF, while HUT, our existing UK retail
park fund, continues to perform strongly.
"Also, we remain committed to our strategy to split CLOUT and create an income
based fund alongside an opportunity fund.
"The timing of the major transactions for this year means the bulk of deal flow
falls in the second half.
"The creation of PREF is expected to be completed in the New Year and Pillar
will, as a consequence, be managing three major property funds in Europe, with
assets under management in excess of #2.8bn. The management team therefore
remains extremely confident of the prospects for the Group as a whole."
Enquiries:
Pillar Property PLC Tel: 020 7915 8000
Raymond Mould, Chairman
Humphrey Price, Finance Director
Further information can be found at www.pillarproperty.com
Gavin Anderson & Company Tel: 020 7554 1400
Neil Bennett / Charlotte Stone
CHAIRMAN'S STATEMENT
Results
Profits before tax for the six months to 30 September 2003 were #2.8 million
(2002 - #3.4 million). Whilst these were lower than we anticipated, due to the
timing of a number of transactions, we are confident that the results for the
full year will be fully up to expectations.
Dividend
We are intending to pay an increased interim dividend of 2.4p per share (2002 -
2.3p) and this will be paid on 2 January 2004 to shareholders on the register on
12 December 2003.
Pillar Strategy
We remain committed to our strategy of focusing on retail parks and City of
London offices with those assets being held in Pillar managed funds: Hercules
Unit Trust ("HUT") and City of London Office Unit Trust ("CLOUT"). As part of
this strategy, PillarCaisse, the joint venture with SITQ, has since 30 September
sold its remaining asset, the Castle Quay Shopping Centre, Banbury for #103
million. We have also put our two leisure schemes, at Fulham Broadway and Omni,
Edinburgh, on the market and have received satisfactory offers for both and we
expect that these sales will be concluded before the end of the financial year.
After repayment of related finance, the net proceeds of these two sales of
approximately #70 million will reduce considerably Pillar's overall gearing and
interest costs. Apart from a small residual development at Capability Green and
the development at Cricklewood, all of Pillar's property assets will be in
retail parks and City offices held either directly or in the Trusts.
At the beginning of April, Pillar had in varying stages of development five
retail parks aggregating to some 1.6 million sq ft. Of this portfolio, the park
at Dartford has been sold to HUT and since 30 September, Gallions Reach Shopping
Park, Beckton has been sold into a partnership with HUT. We are confident that
the partnership will attract one or more institutional investors by the end of
the financial year.
We are proposing, subject to the approval of the unit holders of HUT, to sell to
the Trust our half interest in Glasgow Fort. Whilst this park will not be
completed until late summer 2004, letting has been going well with 75% of the
space having been let.
In line with our stated strategy we are continuing to reduce gradually our
investment in HUT and as of today, hold 36.7% compared with 41.7% at the end of
March. Our ultimate intended holding remains at 30-35%. Since the commencement
of marketing in March last year a total of #277 million of units in HUT has been
traded on the secondary market which demonstrates well the liquidity of the
fund. Over the last six months, HUT's portfolio has continued to show strong
growth as can be seen from note 8 of the accounts. It should be noted that
Pillar does not recognise any valuation change at the half year.
Retail Parks
Retail warehouses continue to be the strongest performing sector of the real
estate market. Returns are expected to outperform other sectors through 2004 as
planning restrictions limit supply and the migration of retailers from the High
Street to out-of-town continues to drive up rents on the better quality Open A1
parks. However there has been a noticeable easing in tenant demand from the
traditional electrical and furniture operators for the secondary and tertiary
parks which do not benefit from the Open A1 planning consents.
The secondary retail parks have however benefited from an ongoing hardening in
yields which has supported the market performance to date but which has not yet
occurred in the valuation of prime parks despite the stronger occupier demand
for these properties. We are still continuing to attract new occupiers from the
High Street and the out-of-town market and there have been a number of new
entrants over the period.
The investment market remains tight with little prime stock available and very
high demand amongst the Institutions for the few prime parks that have recently
come to the market.
As a result there have been few attractive buying opportunities and HUT has only
contracted to purchase one park during the last six months in addition to the
interest in Gallions Reach Shopping Park, Beckton. It has also agreed terms to
dispose of two of its smaller properties totalling #60 million.
However over the period there has been considerable asset management activity
undertaken as part of the objective of both improving retailer mix, widening
planning consents and driving rental values.
City Offices
At the year end we announced that our strategy for the City was to explore ways
of splitting our fund into two vehicles to create an income fund based on the
secure income profile of CityPoint and an opportunity fund with the remaining
development and short leasehold assets. We believe positive signs are beginning
to emerge in the City market and market testing of this strategy is currently
underway. Initial feedback appears positive.
Further indications of a pending recovery in the market is evidenced by
expansion among some of the tenants in CityPoint resulting in further lettings.
Out of a total of 700,000 sq ft, only 15,000 sq ft is available to let.
We are now receiving more serious expressions of interest in the fund's
development properties as occupiers with lease expiries in 2006/07 seek to take
advantage of this current market.
Europe
Our expansion into continental Europe continues. We are currently forming a new
fund, the Pillar Retail Europark Fund ("PREF"), which will be based in
Luxembourg and we are hopeful that the necessary regulatory approvals will have
been obtained by the end of December with PREF commencing trading early in the
new year.
Since 30 September, we have acquired a new 142,000 sq ft purpose built retail
park in Bologna, Italy and contracted to acquire the 182,000 sq ft Sintra Retail
Park, Lisbon. These parks, together with the Nassica Retail Park, Madrid and the
forward funded park in Beaucaire, near Avignon, will be transferred to PREF in
January, when the fund is authorised, in exchange for cash and units. It is
anticipated that Pillar will initially own approximately 54% of PREF, and this
share will be diluted as other parks are acquired. We have identified a number
of other opportunities, which together with existing commitments, would produce
an initial portfolio of approximately Euro400 million. Marketing of the fund has
commenced and we are planning to have initial equity commitments of up to Euro200
million, which together with Pillar's equity of Euro40 million and appropriate debt
facilities, will be sufficient to finance a portfolio of up to Euro600 million.
Outlook
Following the conclusion of the sales of all our non-core assets and of the
sales of some of the retail parks under development, Pillar's overall gearing
and interest costs will be much reduced. By the end of the financial year, we
will be managing three property funds, HUT, CLOUT and PREF, with property
portfolios totalling an estimated #2.8 billion with the related management and
performance fees making increasing contributions to profits.
We shall continue to keep under review the option of returning further capital
to shareholders and I shall report further on this at the announcement of our
full year's results.
H R Mould
Chairman
27 November 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
--------------------------------------------------------------
6 months 6 months 6 months 6 months 6 months 6 months Year Year Year
to to to to to to ended ended ended
30.9.03 30.9.03 30.9.03 30.9.02 30.9.02 30.9.02 31.3.03 31.3.03 31.3.03
Joint Joint Joint
Group ventures Total Group ventures Total Group ventures Total
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Audited Audited Audited
Note #m #m #m #m #m #m #m #m #m
------- ------- ------- ------- ------- -------- ------- ------- -------
Turnover 3 14.4 26.1 40.5 14.0 25.3 39.3 36.9 52.3 89.2
Cost of 4 (0.4) (3.9) (4.3) (3.7) (6.1) (9.8) (15.0) (10.9) (25.9)
sales
------- ------- ------- ------- ------- -------- ------- ------- -------
Gross profit 14.0 22.2 36.2 10.3 19.2 29.5 21.9 41.4 63.3
Administrative (9.5) (1.1) (10.6) (9.7) (0.9) (10.6) (17.6) (1.7) (19.3)
and other
expenses
------- ------- ------- ------- ------- -------- ------- ------- -------
Operating profit
- Group 4.5 4.5 0.6 0.6 4.3 4.3
- Joint ventures 21.1 21.1 18.3 18.3 39.7 39.7
------- ------- ------- ------- ------- -------- ------- ------- -------
Total operating 4.5 21.1 25.6 0.6 18.3 18.9 4.3 39.7 44.0
profit
Profit/(loss) 2.3 (0.2) 2.1 2.7 2.4 5.1 9.9 8.7 18.6
on disposal of
investment
properties
Net interest (9.3) (15.6) (24.9) (4.9) (15.7) (20.6) (14.9) (31.8) (46.7)
payable and
similar charges
------- ------- ------- ------- ------- -------- ------- ------- -------
Profit/(loss) (2.5) 5.3 2.8 (1.6) 5.0 3.4 (0.7) 16.6 15.9
on ordinary
activities
before taxation
======= ======= ======= ======= ======= ======== ======= ======= =======
Taxation on 5 (0.8) - (1.3)
profit on
ordinary
activities
------- ------- ------- ------- ------- -------- ------- ------- -------
Profit 2.0 3.4 14.6
attributable
to ordinary
shareholders
------- ------- ------- ------- ------- -------- ------- ------- -------
Dividends 6 (2.5) (2.4) (8.6)
------- ------- ------- ------- ------- -------- ------- ------- -------
Retained (0.5) 1.0 6.0
(loss)/profit
for the period
======= ======= ======= ======= ======= ======== ======= ======= =======
Earnings per 7 1.8p 2.5p 12.0p
share
- basic
Earnings per 7 1.8p 2.5p 12.0p
share
- diluted
------- ------- ------- ------- ------- -------- ------- ------- -------
All items derive from continuing activities.
CONSOLIDATED BALANCE SHEET
----------------------------------------------------
30.9.03 30.9.02 31.3.03
Unaudited Unaudited Audited
Note #m #m #m
----------- --------- ---------
Fixed assets
Investment properties 485.2 321.8 476.6
Joint ventures:
Share of gross assets 1,097.2 1,016.3 1,140.3
Share of gross liabilities (588.7) (532.2) (619.7)
----------- --------- ---------
8 508.5 484.1 520.6
Other tangible assets 0.4 0.5 0.4
----------- --------- ---------
994.1 806.4 997.6
----------- --------- ---------
Current assets
Development properties 11.2 14.8 10.4
Debtors - amounts falling due within 82.2 61.0 60.2
one year
Debtors - amounts falling due after one 11.2 0.5 17.5
year
Cash at bank and in hand 25.0 22.8 19.6
----------- --------- ---------
129.6 99.1 107.7
Creditors: amounts falling due within 9 (263.0) (249.0) (342.5)
one year
----------- --------- ---------
Net current liabilities (133.4) (149.9) (234.8)
----------- --------- ---------
Total assets less current liabilities 860.7 656.5 762.8
Creditors: amounts falling due after 9 (292.3) (176.6) (197.0)
one year
Provisions for liabilities and charges (1.3) (1.3) (1.3)
- deferred taxation
----------- --------- ---------
Net assets 567.1 478.6 564.5
=========== ========= =========
Capital and reserves
Called up share capital 10.9 10.9 10.9
Share premium account 0.1 - 0.1
Revaluation reserve 232.3 173.3 234.2
Merger reserve 60.0 60.0 60.0
Profit and loss account 263.8 234.4 259.3
----------- --------- ---------
Shareholders' funds 567.1 478.6 564.5
=========== ========= =========
Net assets per share 522p 439p 520p
----------- --------- ---------
The financial statements were approved by the Board of Directors on 27 November
2003 and were signed on its behalf by:
H J M Price Director
CONSOLIDATED CASH FLOW STATEMENT
----------------------------------------------------
6 months 6 months Year
to to ended
30.9.03 30.9.02 31.3.03
Unaudited Unaudited Audited
Note #m #m #m
--------- --------- ---------
Net cash inflow/(outflow) from 0.4 (4.0) 1.9
operating activities
Net cash outflow from returns on (13.1) (8.8) (16.4)
investments and servicing of finance
Distributions received from joint 8.4 6.7 19.7
ventures
Taxation 0.1 0.1 (1.9)
Net capital expenditure (61.0) 80.3 (37.4)
Acquisitions and disposals 13.3 - 47.0
Equity dividends paid (6.1) (7.3) (9.7)
--------- --------- ---------
Net cash (outflow)/inflow before use of 10 (58.0) 67.0 3.2
liquid resources and financing
Return of capital - (143.5) (143.5)
Financing 65.5 174.1 239.1
--------- --------- ---------
Increase in cash in the period 7.5 97.6 98.8
========= ========= =========
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
6 months 6 months Year
to to ended
30.9.03 30.9.02 31.3.03
Unaudited Unaudited Audited
#m #m #m
----------- --------- ---------
Profit attributable to ordinary shareholders 2.0 3.4 14.6
Unrealised surplus on revaluation of properties (0.2) - 12.0
- group
Unrealised surplus on revaluation of properties 3.0 0.6 70.4
- joint ventures
Net exchange differences on retranslation of net 0.3 - 0.7
investments and related borrowings ----------- --------- ---------
Total recognised gains relating to the period 5.1 4.0 97.7
=========== ========= =========
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS FUNDS
6 months 6 months Year
to to ended
30.9.03 30.9.02 31.3.03
Unaudited Unaudited Audited
#m #m #m
----------- --------- ---------
Profit for the period 2.0 3.4 14.6
Dividends paid and proposed (2.5) (2.4) (8.6)
----------- --------- ---------
Retained (loss)/profit for the period (0.5) 1.0 6.0
Unrealised surplus on revaluation of 2.8 0.6 82.4
investment properties and investment in
subsidiaries
Net exchange differences on retranslation of 0.3 - 0.7
net investments and related borrowings
Scheme of arrangement - return of capital - (143.5) (143.5)
Distribution on share redemption - - (1.7)
On issue of ordinary share capital - - 0.1
----------- --------- ---------
2.6 (141.9) (56.0)
Opening shareholders' funds 564.5 620.5 620.5
----------- --------- ---------
Closing shareholders' funds 567.1 478.6 564.5
=========== ========= =========
NOTES TO THE INTERIM RESULTS
1 Accounting policies
The interim results of the group for the six months ended 30 September 2003
incorporate the results of the company, its subsidiary undertakings and its
joint ventures for the period then ended.
The results have been prepared on the basis of the accounting policies adopted
in the accounts of the group for the year ended 31 March 2003.
The financial information set out in this interim statement includes information
for the year ended 31 March 2003. This information does not constitute the
company's statutory accounts for that period as defined in Section 240 of the
Companies Act 1985 but is derived from those accounts. Statutory accounts for
the year ended 31 March 2003 have been delivered to the Registrar of Companies.
The auditors have reported on those accounts; their report was unqualified and
did not contain a statement under Section 237(2) or (3) of the Companies Act
1985.
This statement is being sent to shareholders and will be available from the
company's registered office at Lansdowne House, Berkeley Square, London W1J 6HQ.
2 Segmental and geographical information
Group turnover Group operating profit
6 months 6 months Year 6 months 6 months Year
to to ended to to ended
30.9.03 30.9.02 31.3.03 30.9.03 30.9.02 31.3.03
Unaudited Unaudited Audited Unaudited Unaudited Unaudited
#m #m #m #m #m #m
-------- -------- -------- -------- -------- --------
Business segments:
Fund management 5.8 10.9 16.8 - 7.2 9.0
Investment and 34.7 28.4 72.4 27.6 13.5 39.0
development
Corporate - - - (2.0) (1.8) (4.0)
-------- -------- -------- -------- -------- --------
40.5 39.3 89.2 25.6 18.9 44.0
======== ======== ======== ======== ======== ========
Geographical
segments:
United Kingdom 38.3 39.3 88.5 25.1 18.9 44.3
Europe 2.2 - 0.7 0.5 - (0.3)
-------- -------- -------- -------- -------- --------
40.5 39.3 89.2 25.6 18.9 44.0
======== ======== ======== ======== ======== ========
Profit before tax Group net assets
6 months 6 months Year 6 months 6 months Year
to to ended to to ended
30.9.03 30.9.02 31.3.03 30.9.03 30.9.02 31.3.03
Unaudited Unaudited Audited Unaudited Unaudited Unaudited
#m #m #m #m #m #m
-------- -------- -------- -------- -------- --------
Business segments:
Fund management - 7.2 9.0 14.9 16.0 18.3
Investment and 4.8 (2.0) 10.9 554.6 465.1 552.2
development
Corporate (2.0) (1.8) (4.0) (2.4) (2.5) (6.0)
-------- -------- -------- -------- -------- --------
2.8 3.4 15.9 567.1 478.6 564.5
======== ======== ======== ======== ======== ========
Geographical
segments:
United Kingdom 2.3 3.4 16.2 566.3 478.6 564.3
Europe 0.5 - (0.3) 0.8 - 0.2
-------- -------- -------- -------- -------- --------
2.8 3.4 15.9 567.1 478.6 564.5
======== ======== ======== ======== ======== ========
3 Turnover
6 months 6 months 6 months 6 months 6 months 6 months Year Year Year
to to to to to to ended ended ended
30.9.03 30.9.03 30.9.03 30.9.02 30.9.02 30.9.02 31.3.03 31.3.03 31.3.03
Joint Joint Joint
Group ventures Total Group ventures Total Group ventures Total
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Audited Audited Audited
#m #m #m #m #m #m #m #m #m
-------- -------- -------- -------- -------- -------- ------- ------- -------
Rental income 8.1 26.1 34.2 3.1 24.9 28.0 10.0 51.6 61.6
Sales of trading 0.3 - 0.3 - 0.4 0.4 9.0 0.7 9.7
and development
properties
Management and 5.8 - 5.8 10.9 - 10.9 16.8 - 16.8
performance
fees
Commission 0.2 - 0.2 - - - 1.1 - 1.1
earned
-------- -------- -------- -------- -------- -------- ------- ------- -------
Total turnover 14.4 26.1 40.5 14.0 25.3 39.3 36.9 52.3 89.2
======== ======== ======== ======== ======== ======== ======= ======= =======
4 Cost of sales
6 months 6 months 6 months 6 months 6 months 6 months Year Year Year
to to to to to to ended ended ended
30.9.03 30.9.03 30.9.03 30.9.02 30.9.02 30.9.02 31.3.03 31.3.03 31.3.03
Joint Joint Joint
Group ventures Total Group ventures Total Group ventures Total
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Audited Audited Audited
#m #m #m #m #m #m #m #m #m
-------- -------- -------- -------- -------- -------- ------- ------- -------
Direct property 0.3 0.9 1.2 0.5 0.6 1.1 0.8 1.8 2.6
costs
Costs of - - - 3.2 0.3 3.5 13.6 0.6 14.2
development
properties sold
Management and - 3.0 3.0 - 5.2 5.2 - 8.5 8.5
performance fees
Commission paid 0.1 - 0.1 - - - 0.6 - 0.6
-------- -------- -------- -------- -------- -------- ------- ------- -------
0.4 3.9 4.3 3.7 6.1 9.8 15.0 10.9 25.9
======== ======== ======== ======== ======== ======== ======= ======= =======
5 Taxation
The group allocates the tax charge arising on the sale of investment properties
on a pro rata basis between the gain previously recognised in the revaluation
reserve and the further gain or loss arising on the sale in the profit and loss
account.
6 Dividends
The interim dividend of 2.4p (2002 interim - 2.3p; 2003 final - 5.7p) per share
is payable on 2 January 2004 to members on the register at 12 December 2003 and
is calculated on 108,563,718 (2002 interim - 109,028,111; 2003 final -
108,563,718) shares being the number of ordinary shares in issue.
7 Earnings per share
The calculation of the earnings per share is based on the profit attributable to
ordinary shareholders of #2.0 million (2002 interim - #3.4 million profit; 2003
final - #14.6 million profit) and on the weighted average number of ordinary
shares in issue during the six months ended 30 September 2003 of 108,563,718
(2002 interim - 134,615,382; 2003 final - 121,862,188). On a diluted basis the
weighted average number of ordinary shares was 109,160,238, 135,029,801 and
122,338,875 respectively.
8 Investment partnerships
Summarised aggregated financial statements
City of
London 6 months 6 months Year
Hercules Office to to ended
Unit Unit Pillar- 30.9.03 30.9.02 31.3.03
Trust Trust Caisse Auchinlea Other Unaudited Unaudited Audited
#m #m #m #m #m #m #m #m
-------- ------- ------- -------- -------- -------- ------- -------
Profit and loss account
Turnover 42.8 18.8 2.6 0.3 0.9 65.4 58.3 121.4
-------- ------- ------- -------- -------- -------- ------- -------
Operating profit/(loss) 35.5 16.1 2.4 0.2 (0.5) 53.7 43.0 93.6
(Loss)/profit on disposal (0.5) - (0.1) - - (0.6) 5.2 20.0
of investment properties
Net interest payable (23.3) (14.5) (1.2) (0.5) (0.1) (39.6) (37.0) (75.4)
-------- ------- ------- -------- -------- -------- ------- -------
Retained profit/(loss) for 11.7 1.6 1.1 (0.3) (0.6) 13.5 11.2 38.2
the period
======== ======== ======= ======== ======== ======== ======= =======
Balance sheet
Investment properties 1,842.3 627.8 90.8 95.7 - 2,656.6 2,208.8 2,579.0
Current assets 49.9 22.6 6.3 2.7 6.6 88.1 117.9 210.6
Current liabilities (44.4) ( 15.8) (66.1) (3.2) (4.0) (133.5) (159.8) (152.9)
Borrowings due in more than (869.5) (432.0) - (44.3) (1.7) (1,347.5) (1,079.0) (1,375.7)
one year
-------- -------- -------- -------- -------- -------- ------- -------
Net assets 978.3 202.6 31.0 50.9 0.9 1,263.7 1,087.9 1,261.0
======== ======== ======== ======== ======== ======== ======= =======
Group share
6 months 6 months Year
to to ended
30.9.03 30.9.02 31.3.03
40.3% 35.9% 50% 50% 50% Unaudited Unaudited Audited
Percentage interest #m #m #m #m #m #m #m #m
------- -------- ------- ------- ------- -------- -------- --------
Turnover 17.5 6.8 1.3 0.1 0.4 26.1 25.3 52.3
Management and performance (2.5) (0.5) - - - (3.0) (5.2) (8.5)
fees
Other costs (0.6) (0.5) (0.2) - (0.7) (2.0) (1.8) (4.1)
------- -------- ------- ------- ------- -------- -------- --------
Operating profit/(loss) 14.4 5.8 1.1 0.1 (0.3) 21.1 18.3 39.7
(Loss)/profit on disposal of (0.2) - - - - (0.2) 2.4 8.7
investment properties
Net interest payable (9.5) (5.2) (0.6) (0.3) - (15.6) (15.7) (31.8)
------- -------- ------- ------- ------- -------- -------- --------
Retained profit/(loss) for the 4.7 0.6 0.5 (0.2) (0.3) 5.3 5.0 16.6
period
======= ======== ======= ======= ======= ======== ======== ========
Joint venture investment 742.2 225.6 45.4 47.9 - 1,061.1 965.0 1,052.5
properties
------- -------- ------- ------- ------- -------- -------- --------
Joint venture net assets 394.2 72.8 15.5 25.5 0.5 508.5 484.1 520.6
======= ======== ======= ======= ======= ======== ======== ========
Other partnerships comprise the Capability Green Joint Venture and Champneys
CityPoint Limited.
Investment properties are stated at the previous 31 March valuation, adjusted
for subsequent additions at cost and disposals.
8 Investment partnerships continued
The company discloses on a monthly basis its holdings in Hercules Unit Trust and
City of London Unit Trust and their unit values. As at 30 September 2003 these
were as follows:
30.9.03 30.9.03 30.9.03 27.9.02 27.9.02 27.9.02 28.3.03 28.3.03 28.3.03
Portfolio Net unit Pillar Portfolio Net unit Pillar Portfolio Net unit Pillar
valuation value share valuation value share valuation value share
#m # %holding #m # %holding #m # %holding
------- ------- ------- ------- ------- ------- -------- -------- --------
Hercules Unit Trust 1,949 725 40.29 1,503 591 46.76 1,847 667 41.85
City of London 625 472 35.94 664 571 35.94 627 481 35.94
Office Unit Trust
======= ======= ======== ======= ======= ======== ======= ======= ========
9 Creditors
30.9.03 30.9.02 31.3.03
Unaudited Unaudited Audited
#m #m #m
--------- --------- --------
Amounts falling due within one year
Bank loans and overdrafts - secured 193.3 184.9 225.2
Trade creditors 0.9 6.5 0.8
Amount due on completion of property 47.3 36.1 88.4
acquisitions
Proposed dividend 2.6 2.5 6.2
Corporation tax 8.4 8.2 7.5
Other taxation and social security 0.1 0.4 0.1
Obligations under finance leases and hire - 0.1 -
purchase arrangements
Accruals and deferred income 10.4 10.3 14.3
--------- --------- --------
263.0 249.0 342.5
========= ========= ========
Amounts falling due after one year
--------- --------- --------
Borrowings 292.3 176.6 197.0
========= ========= ========
10 Analysis of changes in net debt
At At At
31.3.03 Cash 30.9.03 30.9.02
Audited flows Unaudited Unaudited
#m #m #m #m
--------- --------- --------- ---------
Cash at bank and in hand 19.6 5.4 25.0 22.8
Overdraft (2.1) 2.1 - (6.5)
Debt due within one year (223.1) 29.8 (193.3) (178.4)
Debt due after one year (197.0) (95.3) (292.3) (176.6)
--------- --------- --------- ---------
(402.6) (58.0) (460.6) (338.7)
========= ========= ========= =========
11 Financial instruments
The fair value adjustment to the group's financial liabilities, including its
share of the fair value adjustment in joint ventures, amounted to a negative
figure of #13.4 million (at 30 September 2002 a negative figure of #20.2
million, at 31 March 2003 a negative figure of #21.6 million). These figures
represent the costs of replacing the financial instruments used to manage the
group's exposure to adverse interest rate movements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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