TIDMBC84
RNS Number : 0169O
Trafford Centre Finance Ld
27 September 2019
THE TRAFFORD CENTRE FINANCE LIMITED
LEI: 213800J9WWQVUK5FE223
27 September 2019
HALF-YEARLY FINANCIAL REPORT
In compliance with Disclosure and Transparency Rules, The
Trafford Centre Finance Limited (the "Company") announces the
publication of its Half-Yearly Financial Report for the period
ended 30 June 2019. A copy of this document has been submitted to
the National Storage Mechanism and will shortly be available for
inspection at Morningstar.co.uk/uk/NSM
The Half-Yearly Report will also shortly be available for
download at intugroup.co.uk
OPERATING AND FINANCIAL REVIEW
FOR THE SIX MONTHSED 30 JUNE 2019
The Trafford Centre Finance Limited ("the company") is
incorporated and registered in the Cayman Islands. The company's
registered office is 190 Elgin Avenue, George Town, Grand Cayman,
Cayman Islands KY1-9005.
The principal activity of the company is the provision of
financing to The Trafford Centre Limited which owns the intu
Trafford Centre shopping centre. This is funded by the issue of
loan notes which are listed on the London Stock Exchange. The
company receives interest on the provision of financing to The
Trafford Centre Limited at rates equal to those paid on its
external debt plus additional interest of 0.01% per annum on the
average principal loan amount outstanding. Any financing related
fees incurred by the company are also charged on to The Trafford
Centre Limited.
The company's results and financial position for the period
ended 30 June 2019 are set out in full in the income statement,
balance sheet, statement of changes in equity, statement of cash
flows and the notes to the condensed interim financial
statements.
The company's loss before taxation for the six months to 30 June
2019 was GBP13,000 (year ended 31 December 2018 profit of
GBP12,000, six months ended 30 June 2018 profit of GBP3,000) with
net assets at 30 June 2019 decreasing to GBP1,017,000 (as at 31
December 2018 GBP1,030,000, as at 30 June 2018 GBP1,021,000).
Given the straightforward nature of the business, the company's
directors are of the opinion that analysis using KPIs is not
necessary for an understanding of the development, performance or
position of the business. The directors expect that the present
level of activity will continue for the foreseeable future.
The directors of the company who were in office during the
period and up to the date of signing the condensed interim
financial statements were:
Raulin Amy
David Fischel resigned 26 April 2019
Barbara Gibbes appointed 26 April 2019, resigned 16 August 2019
Matthew Roberts
Sean Crosby appointed 16 August 2019
Minakshi Kidia appointed 16 August 2019
OPERATING AND FINANCIAL REVIEW
FOR THE SIX MONTHSED 30 JUNE 2019
PRINCIPAL RISKS AND UNCERTAINTIES
The Board has reviewed its assessment of the principal risks and
uncertainties facing the company, including those that would impact
the business model, future performance, solvency or liquidity.
As the company's principal activity is to provide financing to
The Trafford Centre Limited, the company's key risks and
uncertainties are those faced by The Trafford Centre Limited to the
extent that they impact The Trafford Centre Limited's ability to
meet its obligations to the company including those related to the
terms of the company's borrowings which are secured on the assets
of The Trafford Centre Limited.
The risk profile for the six months ended 30 June 2019 has
increased since the year ended 31 December 2018 and is detailed in
the table below. No significant new risk headings or sub risk
categories have been identified, although it is recognised that
risks within the categories continue to evolve.
The company's principal risks and uncertainties are reviewed
throughout the year in-line with the intu Group's risk management
framework and the company will provide a full report in the 2019
Report and Financial Statements. During the period, where risks
have evolved, additional risk mitigation strategies have been put
in place. Specifically, the property market sub risks of
macroeconomic and retail environment have seen an increased risk
profile. See commentary on these changes in risk profile below.
Risk heading Sub risk 2019 commentary
------------- ------------------- -------------------------------------------------------
Property Macroeconomic Likelihood and impact of macroeconomic weakness
market continues to be a risk with continued political
uncertainty in the UK and Brexit arrangements
not yet detailed, which has increased investor
caution resulting in a reduction in property
values and lower transaction volumes in the period.
------------- ------------------- -------------------------------------------------------
Property Retail environment With the recent higher level of administrations
market and CVAs and the continued macroeconomic uncertainty,
the likelihood and impact of changes to the retail
environment resulting in further potential tenant
failures continues to increase, putting downward
pressure on property values. intu monitor key
retail metrics closely, in line with intu's strategy
of continuing to deliver solid footfall numbers
and occupancy.
------------- ------------------- -------------------------------------------------------
The uncertainty arising from the UK's decision to exit the EU
continues to have a negative impact on the macroeconomic
environment. Specifically for intu, the risks faced are affected by
any changes in sentiment in the investment and occupier markets in
which we operate, in our ability to execute our recycling and
investment plans and in broader consumer confidence and
expenditure. We have continued to review our Brexit risks and both
planning and consideration has been given to implementing
additional controls to mitigate risks where we can reduce either
the likelihood or impact of the risk affecting the delivery of the
company's objectives.
DIRECTORS' RESPONSIBILITY STATEMENT
FOR THE SIX MONTHSED 30 JUNE 2019
The directors are responsible for preparing the interim report
and condensed set of interim financial statements (interim
financial statements), in accordance with applicable law and
regulations. The directors confirm that, to the best of their
knowledge:
-- the interim financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting, as adopted by
the European Union; and
-- the interim report includes a fair review of both the
information required by Sections DTR 4.2.7R, and that which is
subject of DTR 4.2.8R of the Disclosure Guidance and Transparency
Rules of the United Kingdom's Financial Conduct Authority.
The Operating and Financial Review refers to important events
which have taken place in the period.
The principal risks and uncertainties facing the business are
referred to in the Operating and Financial Review.
Related party transactions are set out in note 12 of the interim
financial statements.
A list of current directors is provided in the Operating and
Financial Review.
On behalf of the Board
Minakshi Kidia
Director
27 September 2019
INDEPENT REVIEW REPORT TO
THE TRAFFORD CENTRE FINANCE LIMITED
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2019 which comprises the income statement,
the balance sheet, the statement of changes in equity, the cash
flow statement and related notes 1 to 13. We have read the other
information contained in the half-yearly financial report and
considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set
of financial statements.
This report is made solely to the company in accordance with
International Standard on Review Engagements (UK and Ireland) 2410
"Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Financial
Reporting Council. Our work has been undertaken so that we might
state to the company those matters we are required to state to it
in an independent review report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company, for our review
work, for this report, or for the conclusions we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
As disclosed in note 1, the annual financial statements of the
company are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this half-yearly financial report has been prepared in
accordance with International Accounting Standard 34 "Interim
Financial Reporting" as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Financial Reporting Council for use in
the United Kingdom. A review of interim financial information
consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
INDEPENT REVIEW REPORT TO
THE TRAFFORD CENTRE FINANCE LIMITED
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2019 is not prepared, in all material respects, in accordance
with International Accounting Standard 34 as adopted by the
European Union and the Disclosure Guidance and Transparency Rules
of the United Kingdom's Financial Conduct Authority.
Deloitte LLP
London, United Kingdom
27 September 2019
INCOME STATEMENT (unaudited)
FOR THE SIX MONTHSED 30 JUNE 2019
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2019 2018 2018
(unaudited) (unaudited) (audited)
Notes GBP000 GBP000 GBP000
Administration expenses (31) (14) (33)
------------ ------------ ------------
Operating loss (31) (14) (33)
Finance income 4 21,760 23,054 46,046
Finance costs 4 (21,742) (23,037) (46,001)
Change in fair value of financial 4 - - -
instruments
------------ ------------ ------------
Net finance income 18 17 45
------------ ------------ ------------
(Loss)/profit before tax (13) 3 12
Taxation - - -
------------ ------------ ------------
(Loss)/profit for the period (13) 3 12
============ ============ ============
Other than the items in the income statement above, there are no
other items of comprehensive income and accordingly a separate
statement of comprehensive income has not been prepared.
BALANCE SHEET (unaudited)
AS AT 30 JUNE 2019
As at As at As at
30 June 31 December 30 June
2019 2018 2018
(unaudited) (audited) (unaudited)
Notes GBP000 GBP000 GBP000
Non-current assets
Trade and other receivables 5 674,364 688,012 701,096
Derivative financial instruments 8 106,039 94,412 93,528
------------ ------------ ------------
780,403 782,424 794,624
Current assets
Trade and other receivables 5 34,469 54,129 53,218
Derivative financial instruments 8 1,456 1,481 1,475
Cash and cash equivalents 582 545 506
------------ ------------ ------------
36,507 56,155 55,199
Total assets 816,910 838,579 849,823
------------ ------------ ------------
Current liabilities
Borrowings 7 (26,733) (45,652) (44,573)
Trade and other payables 6 (7,301) (7,992) (8,130)
Derivative financial instruments 8 (1,456) (1,481) (1,475)
------------ ------------ ------------
(35,490) (55,125) (54,178)
Non-current liabilities
Borrowings 7 (674,364) (688,012) (701,096)
Derivative financial instruments 8 (106,039) (94,412) (93,528)
------------ ------------ ------------
(780,403) (782,424) (794,624)
Total liabilities (815,893) (837,549) (848,802)
------------ ------------ ------------
Net assets 1,017 1,030 1,021
============ ============ ============
Equity
Share capital 9 - - -
Other reserves 113 113 113
Retained earnings 904 917 908
------------ ------------ ------------
Total equity 1,017 1,030 1,021
============ ============ ============
The notes on pages 10 to 20 form part of this interim
report.
The interim report was approved by the Board of directors and
authorised for issue on 27 September 2019 and were signed on its
behalf by:
Sean Crosby
Director
STATEMENT OF CHANGES IN EQUITY (unaudited)
FOR THE SIX MONTHSED 30 JUNE 2019
Share Other Retained Total
capital Reserves earnings equity
GBP000 GBP000 GBP000 GBP000
At 1 January 2018 - 113 905 1,018
---------- --------- --------- -------
Profit for the period - - 3 3
---------- --------- --------- -------
Total comprehensive
income for the period - - 3 3
---------- --------- --------- -------
At 30 June 2018 - 113 908 1,021
========== ========= ========= =======
At 1 July 2018 - 113 908 1,021
---------- --------- --------- -------
Profit for the period - - 9 9
---------- --------- --------- -------
Total comprehensive
income for the period - - 9 9
---------- --------- --------- -------
At 31 December 2018 - 113 917 1,030
========== ========= ========= =======
At 1 January 2019 - 113 917 1,030
---------- --------- --------- -------
Loss for the period - - (13) (13)
---------- --------- --------- -------
Total comprehensive
loss for the period - - (13) (13)
---------- --------- --------- -------
At 30 June 2019 - 113 904 1,017
========== ========= ========= =======
STATEMENT OF CASH FLOWS (unaudited)
FOR THE SIX MONTHSED 30 JUNE 2019
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2019 2018 2018
(unaudited) (unaudited) (audited)
Notes GBP000 GBP000 GBP000
Cash (used in)/generated from
operations 11 (10) (3) 8
Interest received 21,744 22,927 45,431
Interest paid (21,697) (22,885) (45,361)
------------ ------------ ------------
Cash flows from operating activities 37 39 78
------------ ------------ ------------
Amounts owed by group undertaking
- received 33,006 10,688 23,179
------------ ------------ ------------
Cash flows from investing activities 33,006 10,688 23,179
Borrowings repaid (33,006) (10,688) (23,179)
Cash outflows from financing activities (33,006) (10,688) (23,179)
------------ ------------ ------------
Net increase in cash and cash
equivalents 37 39 78
Cash and cash equivalents at beginning
of
period 545 467 467
------------ ------------ ------------
Cash and cash equivalents at end
of period 582 506 545
============ ============ ============
NOTES (unaudited)
FOR THE SIX MONTHSED 30 JUNE 2019
1. Basis of preparation
The condensed set of interim financial statements ("interim
financial statements") for the six months ended 30 June 2019 are
unaudited. The interim financial statements have been prepared in
accordance with the Disclosure Guidance and Transparency Rules
sourcebook of the Financial Conduct Authority and with IAS 34 as
adopted by the European Union.
The comparative information presented for the year ended 31
December 2018 is not the company's financial statements for that
year. Those financial statements have been reported on by the
company's previous auditors. The previous auditors' opinion on
those financial statements was unqualified and did not contain an
emphasis of matter paragraph.
The interim financial statements should be read in conjunction
with the company's financial statements for the year ended 31
December 2018 which have been prepared in accordance with
International Financial Reporting Standards ("IFRS") as adopted by
the European Union.
Use of estimates and assumptions
The preparation of interim financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amount of assets and liabilities, income and expense. Actual
results may differ from these estimates. In preparing the interim
financial statements, the areas of significant judgement made by
management in applying the company accounting policies and the key
sources of estimation uncertainty were the same as those applied to
the financial statements as at and for the year ended 31 December
2018. In particular, significant judgement is required in the use
of estimates and assumptions in the valuation and accounting for
derivative financial instruments.
Going concern
In assessing whether the going concern basis of preparation is
appropriate to adopt, the directors considered a number of factors
including financial projections of the company and the level of
financial support that may be available to the company by its
ultimate parent, intu properties plc. In addition, investment
property held by The Trafford Centre Limited, a fellow subsidiary
of intu properties plc, acts as security for the financial
instruments which are held in The Trafford Centre Finance Limited.
The ability of the company to meet the obligations of these
financial instruments is dependent upon the performance of The
Trafford Centre Limited and its ability to meet its obligations to
the company. In concluding that the going concern basis of
preparation is appropriate the directors of the company have
considered the net rental income forecasts of The Trafford Centre
Limited. Based on this review the directors have concluded that it
is appropriate to continue to adopt the going concern basis of
accounting in preparing the entity's interim financial
statements.
NOTES (unaudited) (continued)
FOR THE SIX MONTHSED 30 JUNE 2019
2. Accounting policies
The accounting policies applied are consistent with those of the
company's financial statements for the year ended 31 December 2018
as set out on pages 14 to 16 of that Report and Financial
Statements as amended when relevant to reflect the adoption of new
standards, amendments and interpretations which became effective in
the period. These amendments have not resulted in any material
changes to the information presented.
Taxes on income in interim periods are accrued using tax rates
expected to be applicable to total annual earnings.
3. Operating segments
Management have not identified separate operating segments and
rely on information presented in the primary statements for
decision making purposes.
4. Net finance income
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Finance income
On amounts due from group undertaking 21,760 23,054 46,046
21,760 23,054 46,046
=========== =========== ============
Finance costs
On borrowings (21,724) (23,032) (45,986)
Other interest (18) (5) (15)
----------- ----------- ------------
(21,742) (23,037) (46,001)
=========== =========== ============
Change in fair value of financial
instruments
On external derivative financial
instruments (11,627) 9,728 8,844
On derivative financial instruments
with
The Trafford Centre Limited 11,627 (9,728) (8,844)
----------- ----------- ------------
- - -
Net finance income 18 17 45
=========== =========== ============
NOTES (unaudited) (continued)
FOR THE SIX MONTHSED 30 JUNE 2019
5. Trade and other receivables
As at As at As at
30 June 31 December 30 June
2019 2018 2018
(unaudited) (audited) (unaudited)
GBP000 GBP000 GBP000
Current
Amounts owed by group undertaking 27,591 46,525 45,498
Less: finance costs (858) (873) (925)
----------- ----------- -----------
Net loan amount 26,733 45,652 44,573
Accrued income and other amounts
due
from group undertaking 7,682 8,094 8,266
Prepayments 37 373 373
Other receivables 17 10 6
----------- ----------- -----------
34,469 54,129 53,218
=========== =========== ===========
As at As at As at
30 June 31 December 30 June
2019 2018 2018
(unaudited) (audited) (unaudited)
GBP000 GBP000 GBP000
Non-current
Amounts owed by group undertaking 683,767 697,838 711,357
Less: finance costs (9,403) (9,826) (10,261)
----------- ----------- -----------
Net loan amount 674,364 688,012 701,096
=========== =========== ===========
The amounts owed by group undertaking relate to an intercompany
loan with The Trafford Centre Limited where the company's
borrowings with external parties are passed to The Trafford Centre
Limited. The amounts owed are unsecured and the repayment profile
matches the maturity profile of the company's borrowings as The
Trafford Centre Limited is required to provide funds to the company
in order for it to meet its external funds obligations. The credit
risk of these balances has been reviewed and there is no loss
allowance recognised as it has been concluded that there is an
immaterial risk of credit loss in the next 12 months. There have
been no impairments on receivables or amounts written off in the
year.
Interest is due on the intercompany loans at rates equal to
those paid on the external debt plus additional interest of 0.01%
per annum on the average principal loan amount outstanding.
Interest is also due to cover any fees and costs incurred by the
company.
NOTES (unaudited) (continued)
FOR THE SIX MONTHSED 30 JUNE 2019
6. Trade and other payables
As at As at As at
30 June 31 December 30 June
2019 2018 2018
(unaudited) (audited) (unaudited)
GBP000 GBP000 GBP000
Amounts owed to group undertaking 35 6 -
Accruals 7,266 7,986 7,987
Other payables - - 143
----------- ----------- -----------
7,301 7,992 8,130
=========== =========== ===========
Amounts owed to group undertakings are unsecured and repayable
on demand. No interest is charged on these amounts.
NOTES (unaudited) (continued)
FOR THE SIX MONTHSED 30 JUNE 2019
7. Borrowings
Year
Interest Final As at ended 31 As at
rate maturity 30 June December 30 June
2019 2018 2018
(unaudited) (audited) (unaudited)
GBP000 GBP000 GBP000
Current
Secured notes:
Class
A2 6.5% 2033 12,772 12,376 11,992
A4 2.875% 2019 - 20,000 20,000
B 7.03% 2029 4,929 4,764 4,604
D2 8.28% 2022 9,890 9,385 8,902
Debt falling
due
within one year 27,591 46,525 45,498
Less: finance costs (858) (873) (925)
------------ ---------- ------------
Net loan amount 26,733 45,652 44,573
============ ========== ============
Non-current
Secured notes:
Class
A2 6.5% 2033 267,675 274,163 280,446
A3 Floating 2035 188,500 188,500 188,500
B 7.03% 2029 60,110 62,617 65,039
B2 Floating 2035 20,000 20,000 20,000
B3 4.250% 2024 20,000 20,000 20,000
D1(N) Floating 2035 29,054 29,054 29,054
D2 8.28% 2022 28,428 33,504 38,318
D3 4.750% 2024 70,000 70,000 70,000
Debt falling
due
after one year 683,767 697,838 711,357
Less: finance costs (9,403) (9,826) (10,261)
------------ ---------- ------------
Net loan amount 674,364 688,012 701,096
============ ========== ============
Total borrowings 701,097 733,664 745,669
============ ========== ============
The fair value of borrowings as at 30 June 2019 was
GBP817,110,000 (31 December 2018 GBP837,163,000(1) , 30 June 2018
GBP870,844,000(1) ).
(1) The 31 December 2018 and 30 June 2018 fair value of the
D1(N) loan notes has been restated to reflect the fair value
attributable to the company. This previously reflected the intu
Group's net position. The impact on the 31 December 2018 and 30
June 2018 fair value of borrowings figures is an increase of
GBP8,381,000 and GBP8,490,000 respectively. No financial statement
line item is affected by the restatement.
NOTES (unaudited) (continued)
FOR THE SIX MONTHSED 30 JUNE 2019
7. Borrowings (continued)
The maturity profile of gross debt is as follows:
As at As at As at
30 June 31 December 30 June
2019 2018 2018
(unaudited) (audited) (unaudited)
GBP000 GBP000 GBP000
Repayable within one year 27,591 46,525 45,497
Repayable in more than one
year
but not more than two years 29,835 28,693 27,591
Repayable in more than two
years
but not more than five years 174,446 87,163 89,711
Repayable in more than five
years 479,486 581,982 594,056
----------- ----------- -----------
711,358 744,363 756,855
=========== =========== ===========
The secured notes have the benefit of a floating charge over all
of the assets and undertakings of the company and in addition are
secured against The Trafford Centre Securitisation Agreements
together with the benefit of a fixed legal charge over the land and
buildings comprising The Trafford Centre granted by The Trafford
Centre Limited, a fellow subsidiary undertaking of Intu Trafford
Centre Group (UK) Limited and owner of intu Trafford Centre.
Interest on the Class A3, Class B2 and Class D1(N) secured notes
whose rates are based on LIBOR plus an applicable margin has been
hedged under interest rate swap contracts totalling
GBP237,554,000 (31 December 2018 GBP237,554,000, 30 June 2018
GBP237,554,000) with rates of 4.20%, 4.34% and 4.66%. The fair
value of these interest rate swaps at 30 June 2019 was a liability
of GBP107,495,000 (31 December 2018 GBP95,893,000, 30 June 2018
GBP95,003,000).
8. Derivative financial instruments
All derivative financial instrument liabilities relate to
interest rate swaps with a counterparty which are classified as
held for trading. All derivative financial instrument assets relate
to interest rate swap arrangements with The Trafford Centre Limited
under the same terms as the interest rate swaps with the
counterparty.
9. Share capital
GBP
Issued, called up and fully paid
At 30 June 2019, 31 December 2018 and 30 June 2018 - 2 ordinary
shares of GBP1 each 2
===
NOTES (unaudited) (continued)
FOR THE SIX MONTHSED 30 JUNE 2019
10. Financial instruments
The table below presents the company's financial assets and
liabilities recognised at fair value at 30 June 2019, 31 December
2018 and 30 June 2018.
As at 30 June 2019
Level 1 Level 2 Level 3 Total
GBP000 GBP000 GBP000 GBP000
Assets
Derivative financial instruments:
- Fair value through profit
or loss - 107,495 - 107,495
--------- ---------- ------- ----------
Total assets - 107,495 - 107,495
--------- ---------- ------- ----------
Liabilities
Derivative financial instruments:
- Fair value through profit
or loss - (107,495) - (107,495)
--------- ---------- ------- ----------
Total liabilities - (107,495) - (107,495)
========= ========== ======= ==========
As at 31 December 2018
Level 1 Level 2 Level 3 Total
GBP000 GBP000 GBP000 GBP000
Assets
Derivative financial instruments:
- Fair value through profit
or loss - 95,893 - 95,893
--------- --------- ------- ---------
Total assets - 95,893 - 95,893
--------- --------- ------- ---------
Liabilities
Derivative financial instruments:
- Fair value through profit
or loss - (95,893) - (95,893)
--------- --------- ------- ---------
Total liabilities - (95,893) - (95,893)
========= ========= ======= =========
NOTES (unaudited) (continued)
FOR THE SIX MONTHSED 30 JUNE 2019
10. Financial instruments (continued)
As at 30 June 2018
Level 1 Level 2 Level 3 Total
GBP000 GBP000 GBP000 GBP000
Assets
Derivative financial instruments:
- Fair value through profit
or loss - 95,003 - 95,003
--------- --------- ------- ---------
Total assets - 95,003 - 95,003
--------- --------- ------- ---------
Liabilities
Derivative financial instruments:
- Fair value through profit
or loss - (95,003) - (95,003)
--------- --------- ------- ---------
Total liabilities - (95,003) - (95,003)
========= ========= ======= =========
Fair value hierarchy
Level 1: Valuation based on quoted market prices traded in active markets.
Level 2: Valuation techniques are used, maximising the use of
observable market data, either directly from market prices or
derived from market prices.
Level 3: Where one or more inputs to valuation are not based on
observable market data. Valuations at this level are more
subjective and therefore more closely managed, including
sensitivity analysis of inputs to valuation models. Such testing
has not indicated that any material difference would arise due to a
change in input variables.
There were no transfers between Levels 1, 2 and 3 during the
period.
Derivative financial instruments are initially recognised on the
trade date at fair value and subsequently re-measured at fair
value. In assessing fair value the company uses its judgement to
select suitable valuation techniques and make assumptions which are
mainly based on market conditions existing at the balance sheet
date. The fair value of interest rate swaps is calculated by
discounting estimated future cash flows based on the terms and
maturity of each contract and using market interest rates for
similar instruments at the measurement date. These values are
tested for reasonableness based upon broker or counterparty
quotes.
NOTES (unaudited) (continued)
FOR THE SIX MONTHSED 30 JUNE 2019
10. Financial instruments (continued)
Classification of financial assets and liabilities
The table below sets out the company's accounting classification
of each class of financial assets and liabilities, and their fair
values at 30 June 2019, 31 December 2018 and 30 June 2018. The fair
values of quoted borrowings are based on the asking price. The
determination of the fair values of derivative financial
instruments is discussed above.
Gain/(loss)
Carrying Fair to income
value value statement
As at 30 June 2019 GBP000 GBP000 GBP000
Derivative financial instrument
assets 107,495 107,495 11,627
---------- ---------- ------------
Total assets - fair value through
profit or loss 107,495 107,495 11,627
---------- ---------- ------------
Trade and other receivables 708,779 824,792 -
Cash and cash equivalents 582 582 -
---------- ---------- ------------
Total - assets - amortised cost 709,361 825,374 -
---------- ---------- ------------
Derivative financial instrument
liabilities (107,495) (107,495) (11,627)
---------- ---------- ------------
Total liabilities - fair value through
profit or loss (107,495) (107,495) (11,627)
---------- ---------- ------------
Trade and other payables (35) (35) -
Borrowings (701,097) (817,110) -
---------- ---------- ------------
Total liabilities - amortised cost (701,132) (817,145) -
========== ========== ============
Gain/(loss)
Carrying Fair to income
value value statement
As at 31 December 2018 GBP000 GBP000 GBP000
Derivative financial instrument
assets 95,893 95,893 (8,844)
---------- ----------- ------------
Total assets - fair value through
profit or loss 95,893 95,893 (8,844)
---------- ----------- ------------
Trade and other receivables 741,758 845,257(1) -
Cash and cash equivalents 545 545 -
---------- ----------- ------------
Total assets - amortised cost 742,303 845,802 -
---------- ----------- ------------
Derivative financial instrument
liabilities (95,893) (95,893) 8,844
---------- ----------- ------------
Total liabilities - fair value through
profit or loss (95,893) (95,893) 8,844
---------- ----------- ------------
Trade and other payables (6) (6) -
(837,163)
Borrowings (733,664) (1) -
---------- ----------- ------------
Total liabilities - amortised cost (733,670) (837,169) -
========== =========== ============
NOTES (unaudited) (continued)
FOR THE SIX MONTHSED 30 JUNE 2019
10. Financial instruments (continued)
Gain/(loss)
Carrying Fair to income
value value statement
As at 30 June 2018 GBP000 GBP000 GBP000
Derivative financial instrument
assets 95,003 95,003 (9,728)
---------- ----------- ------------
Total assets - fair value through
profit or loss 95,003 95,003 (9,728)
---------- ----------- ------------
Trade and other receivables 753,935 879,110(1) -
Cash and cash equivalents 506 506 -
---------- ----------- ------------
Total assets - amortised cost 754,441 879,616 -
---------- ----------- ------------
Derivative financial instrument
liabilities (95,003) (95,003) 9,728
---------- ----------- ------------
Total liabilities - fair value through
profit or loss (95,003) (95,003) 9,728
---------- ----------- ------------
Trade and other payables (143) (143) -
(870,844)
Borrowings (745,669) (1) -
---------- ----------- ------------
Total liabilities - amortised cost (745,812) (870,987) -
========== =========== ============
(1) The 31 December 2018 and 30 June 2018 fair value of the
D1(N) loan notes included in borrowings has been restated to
reflect the fair value attributable to the company. This previously
reflected the intu Group's net position. The impact on the 31
December 2018 and 30 June 2018 figures is an increase of
GBP8,381,000 and GBP8,490,000 respectively. The same restatement is
also reflected in trade and other receivables as a result of the
financing arrangement with The Trafford Centre Limited. No
financial statement line item is affected by the restatement.
11. Cash (used in)/generated from operations
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
(Loss)/profit before tax (13) 3 12
Remove:
Finance income (21,760) (23,054) (46,046)
Finance costs 21,742 23,037 46,001
Changes in working capital:
Change in trade and other receivables 319 1,708 1,877
Change in trade and other payables (298) (1,697) (1,836)
----------- ----------- -----------
Cash (used in)/generated from
operations (10) (3) 8
=========== =========== ===========
NOTES (unaudited) (continued)
FOR THE SIX MONTHS ENDED 30 JUNE 2019
12. Related party transactions
There have been no related party transactions during the period
that require disclosure under Section DTR 4.2.8 R of the Disclosure
Guidance and Transparency Rules or under IAS 34 Interim Financial
Reporting except those disclosed elsewhere in this condensed set of
interim financial statements.
13. Ultimate parent company
The ultimate parent company is intu properties plc, a company
incorporated and registered in England and Wales, copies of whose
financial statements may be obtained from the Company Secretary, 40
Broadway, London, SW1H 0BT. The immediate parent company is The
Trafford Centre Holdings Limited, a company incorporated and
registered in England and Wales, copies of whose financial
statements may be obtained as above. The registered office of The
Trafford Centre Holdings Limited is 40 Broadway, London, England
and Wales, United Kingdom, SW1H 0BT.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR UBVSRKUAKUAR
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