TIDMCIC
RNS Number : 5918I
Conygar Investment Company PLC(The)
27 November 2018
27 November 2018
THE CONYGAR INVESTMENT COMPANY PLC
PRELIMINARY RESULTS FOR THE YEARED 30 SEPTEMBER 2018
SUMMARY
-- Net asset value per share 201.3p.
-- Outline planning submitted to Nottingham City Council for a
mixed use scheme consisting of over 2 million square feet.
-- Exchanged a lease agreement with Lidl UK to construct a
23,000 square foot store at Cross Hands, south west Wales.
-- Disposed of M&S Food Hall at Ashby-de-la-Zouch for GBP4.4 million.
-- Agreed a lease with B&M Retail and a forward sale at Ashby-de-la-Zouch.
-- Planning permission granted and construction started for an
80 bed Premier Inn at Parc Cybi, Anglesey. Forward sold for GBP6.9
million.
-- Purchase of industrial property in Selly Oak, Birmingham for GBP3.5 million in April 2018.
-- Sold all 26.3 million Regional REIT shares for GBP25.5 million.
-- Total cash available of GBP49.3 million with no debt or borrowings.
-- Bought back 7.13 million shares (10.7% of ordinary share
capital) at an average price of 165.9 pence per share.
Summary Group Net Assets as at 30 September 2018
Per Share
GBP'm p
Properties and Projects 70.2 117.3
Cash and other net assets 50.1 84.0
Net Assets 120.3 201.3
====== ==========
Robert Ware, Chief Executive, commented:
"Significant progress and change has occurred over the year.
With the sale of our holding in Regional REIT and the sale or
forward sale of certain assets, our balance sheet is now stronger
than a year ago, consisting only of our properties and cash
reserves, with no debt. We have submitted outline planning for the
Nottingham City Centre site, taken full control of the Holyhead
Waterfront development, are delivering our properties under
construction and are also well positioned to capitalise on other
opportunities when they arise."
Enquiries:
The Conygar Investment Company PLC
Robert Ware: 020 7258 8670
Ross McCaskill: 020 7258 8670
Liberum Capital Limited (Nominated Adviser and Broker)
Richard Bootle: 020 3100 2222
Steve Pearce: 020 3100 2222
Temple Bar Advisory (Public Relations)
Alex Child-Villiers: 07795 425580
Will Barker: 020 7002 1080
Chairman's & Chief Executive's Statement
Results
We present the Group's results for the year ended 30 September
2018.
Net asset value per share was 201.3p (2017: 203.0p).
Significant progress and change has occurred over the year.
Following the sale of the investment property portfolio in 2017,
the Group has sold all of its holding in Regional REIT Ltd. We have
taken full control of the development project at Holyhead
Waterfront, which was previously a 50%/50% joint venture with Stena
Line. We have sold one asset and conditionally agreed to forward
sell two assets taking advantage of the favourable market
conditions we have seen for assets with long-term income, let to
strong tenants.
As referred to in our interim results for the six months ended
31 March 2018, we have written down the values of two of our
development projects, at Fishguard Waterfront and Llandudno
Junction, and this has been the main cause of the loss before
taxation for the year of GBP3.8 million (2017: profit of GBP1.2
million).
Despite this loss, the balance sheet remains strong and now
consists of our investment properties under construction and
development projects totalling GBP70.2 million and our cash
deposits of GBP49.3 million.
This places us in a good position to deliver our development
pipeline and also to capitalise on opportunities when they
arise.
Progress
The Group disposed of its entire holding of 26.3 million shares
in Regional REIT Limited, realising a total of GBP25.5 million. The
total gain from the investment property portfolios sold to Regional
REIT is GBP45.7 million over seven years, on an original investment
cost of GBP113.4 million.
The development pipeline has progressed well during the year. In
June, the Group submitted an outline planning application for a
mixed used scheme of over two million square feet at its 37 acre
site in Nottingham City Centre. We have continued to work closely
with Nottingham City Council to deliver this exciting project,
which will include offices, apartments, student housing, leisure
uses and associated community retail offering, along with open
public spaces. We expect a decision from the Council with regard to
the planning application shortly and we are keen to begin the
infrastructure works as soon as possible.
As mentioned above, the Group has decided to sell or forward
sell a number of assets which it originally intended to hold to
provide long-term income. The unsolicited offers received were
compelling and highlight that, despite the current uncertainty in
the UK economy, there is still a strong appetite for good quality
regional assets. In November 2017, we sold our M&S Food Hall
investment in Ashby-de-la-Zouch for GBP4.35 million, realising a
profit of GBP446,000. At the same site, we exchanged a lease
agreement with B&M Retail Ltd to construct a 20,000 square foot
store with an additional 7,500 square foot garden centre and
parking. Subsequently, an offer was received to forward purchase
this asset and once constructed, which we expect will be by next
autumn, the disposal will result in the Group receiving GBP4.3
million for the land and completed development.
On Parc Cybi, Anglesey, detailed planning permission was granted
by Ynys Mon County Council (the Isle of Anglesey County Council)
for an eighty bedroom hotel, which once built, is subject to a 25
year lease with Premier Inn Hotels Limited. Similarly to
Ashby-de-la-Zouch, an offer was received for this asset which will
result in the Group receiving net proceeds of GBP6.9 million for
the completed development. These net proceeds equate to a net
initial yield of 4.7% and again this disposal highlights the
attraction of assets benefitting from long-term income let to high
quality occupiers.
In September, we were pleased to announce that we had exchanged
a lease agreement with Lidl UK Gmbh to construct a 23,000 square
foot store on our retail park at Cross Hands, in south west Wales.
Once Lidl is operating, approximately 75,000 square feet of the
park will be income generating, leaving just 15,000 square feet of
constructed space available to let and 0.75 acres available for
future construction. We continue to aim to have this site fully
operational by next autumn.
In May, the Group agreed with its partner, Stena Line Ports
Limited, to take 100% control of its joint venture development
project at Holyhead Waterfront. The transaction enables us to
progress with the scheme as planned and we are working towards
obtaining detailed planning permission in the coming months. As
part of the transaction, Stena was granted 999 year leases of the
platform at Soldier's Quay, which is not required for the
waterfront development, and a warehouse, which is situated at
Soldier's Point and is used by Stena. We retain a right to call for
a sublease if this warehouse is required for the waterfront
development in the future. As part of the transaction, Stena repaid
GBP2.5 million to Conygar, which is Stena's 50% share of a loan the
Group made to the joint venture company. As consideration for the
sale of its shares in the joint venture company, Stena received
GBP1 and will receive 20% of the profit after tax of the
development once it has completed.
Lastly, in April, we acquired an industrial property in Selly
Oak, Birmingham for GBP3.5 million which generates income of
GBP215,000 per annum. The property is located in a predominantly
residential area and it benefits from good medium term
redevelopment prospects.
Dividend
The Board recommends that no dividend is declared in respect of
the year ended 30 September 2018. More information on the Group's
dividend policy can be found within the Strategic Report.
Share Buy Back
During the year, the Group acquired 7,130,000 ordinary shares
representing 10.7% of its ordinary share capital, at an average
price of 165.9p per share at a cost of GBP11.8m. As a result of the
buy backs, net asset value per share has been enhanced by 4.4 pence
per share. Following the year end, the Group has acquired a further
2,550,000 ordinary shares representing 3.8% of its ordinary share
capital at an average price of 171.5p per share. This cost GBP4.4
million and has enhanced net asset value per share by 1.6 pence per
share. The Group will seek to renew the buy back authority at the
forthcoming AGM as we consider it to be a useful capital management
tool.
Outlook
Our balance sheet is now stronger than a year ago, consisting
only of our properties and cash reserves, with no debt.
Accordingly, we are well positioned to deliver the development
projects and also, to make further acquisitions should the right
opportunities arise.
N J Hamway R T E Ware
Chairman Chief Executive
Strategic Report
The Group's Strategic Report provides a review of the business
for the financial year; discusses the Group's financial position at
the year end and explains the principal risks and uncertainties
facing the business and how we manage those risks. We also outline
the Group's business model and strategy.
Strategy and Business Model
Conygar is an AIM quoted property investment and development
group dealing primarily in UK property. Our aim is to invest in
property assets and companies where we can add significant value
using our property management, development and transaction
structuring skills.
The business operates three major strands being, property
investment, property development and investment in companies which
trade or invest in property or hold substantial property assets. We
continue to focus upon positive cash flow and are prepared to use
modest levels of gearing to enhance returns. Assets are recycled to
release capital as opportunities present themselves and we will
continue to buy back shares where appropriate. The Group is content
to hold cash and adopt a patient strategy unless there is a
compelling reason to invest.
Position of the Company at the year end
The portfolio of investment properties under construction and
the development pipeline are progressing and construction is
expected to start at several more locations this year. The balance
sheet remains strong with cash of GBP49.3 million and there is no
debt in the Group. The Group has adequate resources to maintain and
develop its business and the balance sheet remains both liquid and
robust.
Events since the balance sheet date
There have been no significant events since the balance sheet
date.
Summary of Group Net Assets
The Group net assets as at 30 September 2018 may be summarised
as follows:
Per Share
GBP'm p
Properties and Projects 70.2 117.3
Cash and other net assets 50.1 84.0
Net Assets 120.3 201.3
====== ==========
Investment properties and Investment in Regional REIT
Limited
The Group completed the disposal of various Group undertakings
on 24 March 2017 which, with the exception of the investment
properties under construction, comprised the Group's entire
investment property portfolio. The net consideration was satisfied
by the issue of 26,326,644 ordinary shares in Regional REIT Limited
at a price of 106.3 pence per share. The shares were sold in the
year at an average price of 97 pence per share generating GBP25.5
million.
Investment Properties Under Construction and Development
Projects
Good progress has been made on most of our development projects
and investment properties under construction since we last
reported.
Nottingham
In December 2016, the Group acquired 37 acres in Nottingham city
centre for GBP13.5 million. The mainly cleared site was formerly
Boots, the Chemists' headquarters and laboratories and has been
vacant for twenty years. An outline planning application was
submitted in June 2018 and includes offices, residential, student
accommodation and leisure facilities comprising some two million
square feet. We believe this is a very exciting opportunity to help
shape a major UK city and we look forward to commencing the
infrastructure works as soon as possible.
Cross Hands
We completed the construction of the initial 67,000 square foot
phase of the retail park at Cross Hands, south west Wales in
October 2017. The construction was delivered on time and on budget.
In September, we exchanged a lease agreement with Lidl UK Gmbh to
construct a 23,000 square foot store and associated car parking and
subject to the successful determination of a Section 73
application, which has been submitted, we intend to start on site
in early 2019, with practical completion planned for the autumn.
Once operating, approximately 75,000 square feet of the park will
be income generating with other tenants including B&M Retail
Ltd, Iceland Foods Limited, Pets at Home Ltd, Peacocks Stores
Limited, Costa Coffee Ltd, Dominos PLC and David Jenkins Ltd. There
will then be 15,000 square feet of constructed space available to
let and 0.75 acres available for construction.
Holyhead Waterfront
At Holyhead Waterfront, we agreed with Stena Line Ports Limited
to take 100% control of the joint venture development project. This
transaction enables us to progress with the scheme as planned and
we will now progress the detailed design and Reserved Matters
application for the development over the coming year.
Parc Cybi Business Park and Rhosgoch
At Parc Cybi, Anglesey, we exchanged an agreement for lease with
Premier Inn Hotels Ltd to construct an 80-bedroom hotel with a
restaurant and bar. We received planning permission from Ynys Mon
County Council in November 2017. The pre-let to Premier Inn is on a
25 year lease, with a first break clause at year 20. We started
construction in March and expect to complete in early 2019. The
asset has been forward sold and the net sale proceeds from the sale
of land and the development agreement will be GBP6.9 million,
representing a yield of 4.7%.
The option agreement we signed with Horizon Nuclear Power (HNP)
in December 2016, enabling them to instruct us to build a logistics
centre on our 6.9 acre site at Parc Cybi is still in place.
Similarly, the second option agreement that covers the 203 acre
site at Rhosgoch for use during the construction of Wylfa B stands
until December 2022. Rhosgoch is one of several sites that HNP are
considering as a location for housing the temporary construction
workers. The Development Consent Order for the entire Wylfa scheme
and associated infrastructure was submitted by Horizon Nuclear in
June and is currently being examined by the planning inspectorate
in a process which is expected to last six months.
Selly Oak
In April, we acquired units 5-9 Selly Oak Industrial Estate in
Birmingham for GBP3.5 million including costs. The units consist of
50,000 square feet and are fully let to University Hospitals
Birmingham NHS Foundation Trust and Revolution Gymnastics Limited,
generating income of GBP215,500 per annum. The property is located
in a predominantly residential area and has strong short to medium
term redevelopment prospects.
Haverfordwest
At Haverfordwest, we successfully discharged the three
pre-commencement conditions of the residential permission relating
to master planning, phasing and ecology. We plan to submit a
reserved matters application for the first phase of approximately
one hundred units imminently.
We continue to work on plans for the retail site where we
withdrew our planning application in 2017.
Ashby-de-la-Zouch
At Ashby-de-la-Zouch, we completed the construction of an 11,000
square foot Marks and Spencer Food Hall, that was pre-let for a
fixed term of 15 years. Having received an unsolicited offer of
GBP4.35m, we disposed of the property in November 2017 for a net
initial yield to the purchaser of 4.75%. On the further 2 acres of
the site, we exchanged an agreement for lease, subject to planning,
with B&M Retail for a term of 15 years. In October, a
resolution to grant planning was awarded. The construction of the
20,000 square foot store and 7,500 square foot garden centre will
start in the New Year. We have agreed to forward sell this asset
and it is expected that the net sale proceeds from the sale of land
and the development agreement will equate to GBP4.3 million.
King's Lynn, Norfolk
This is a six acre residential development site with planning
permission for 94 dwellings near to King's Lynn, Norfolk. We are in
discussions to sell this site and will provide an update on the
potential disposal when we next report.
Fishguard Harbour
At Fishguard Harbour, we announced in January that we can no
longer progress our plans for this mixed-use marina development and
we have therefore written off a total of GBP2.4 million.
Llandudno Junction
We have been working with Conwy County Council, as its preferred
development partner, to bring forward 90,000 square feet of retail
floor space at its Old Brickworks site. Due to the profound
difficulties in the retail sector and our belief that we will not
be able to deliver the park as planned, it was decided that this
investment should be written off. We are continuing to work with
the Council and potential occupiers to devise alternative schemes
for the site.
Summary of Investment Properties
2018 2017
GBP'm GBP'm
Nottingham 15.00 14.01
Cross Hands 9.64 8.14
Haverfordwest (Retail) 3.59 3.52
Selly Oak 1 3.57 -
Rhosgoch 3.47 3.46
Parc Cybi, Holyhead 2.83 1.61
Ashby-de-la-Zouch
2 0.13 3.55
Total investment
to date 38.23 34.29
====== ======
1. On 30 April 2018, the Company acquired units 5-9 Selly Oak Industrial Estate.
2. The Marks and Spencer Food Hall development was completed in
the year and, having received an unsolicited offer of GBP4.35m, was
disposed of in November 2017.
Summary of Development Projects
It remains our intention, once the individual projects are
significantly advanced, to introduce third party valuations as soon
as it is practical to do so. We remain confident that there is
significant upside in these projects which will become evident over
the medium term.
2018 2017
GBP'm GBP'm
Haverfordwest 22.14 22.03
Holyhead Waterfront
1 8.85 10.26
King's Lynn 0.87 0.87
Fishguard Lorry Stop
2 0.07 0.54
Fishguard Waterfront
2 - 2.17
Llandudno Junction - 0.71
Total investment
to date 31.93 36.58
====== ======
1. Includes GBP2.5m received from Stena Line Ports Limited.
2. The Company is unable to progress its proposals for a mixed-use development.
Financial review
Net Asset Value
The net asset value at the year end was GBP120.3 million (2017:
GBP135.8 million). The primary movements in the year were GBP1.8
million from investment property sales and net rental income plus
GBP1.6 million of dividends from Regional REIT Limited offset by a
GBP2.1 million loss on the sale of the Regional REIT shares, GBP3.2
million of development costs written off, GBP3.1 million of
administrative costs and GBP11.8 million spent on purchasing our
own shares. Following the cancellation of the share options in
2016, there are no diluting items to the basic NAV per share.
The NNNAV or "triple net asset value" is the net asset value
taking into account asset revaluations, the mark to market costs of
debt and hedging instruments and any associated tax effect. Our
investment properties are carried on our balance sheet at
independent valuation. Our investment properties under construction
are carried at fair value and the development and trading assets
are carried at the lower of cost and net realisable value. We have
not sought to value these assets as, in our opinion, they are at
too early a stage in their development to provide a meaningful
figure, so cost is equated to fair value for these purposes. On
this basis, there is no material difference between our stated net
asset value and NNNAV.
Cash flow
The Group used GBP1.0 million cash in operating activities
(2017: used GBP0.2 million).
The primary cash outflows in the year were GBP3.5 million to
purchase Selly Oak, GBP4.2 million incurred on investment
properties under construction and GBP11.8 million to buy back
shares. These were offset by GBP4.3 million from the sale of an
investment property, GBP25.5 million from the sale of Regional REIT
shares and GBP2.5 million received from Stena Line Ports following
the release of their interest in the Stena Line joint venture,
resulting in a cash inflow during the year of GBP12.1 million
(2017: cash outflow of GBP26.5 million).
Net Income From Investment Property Activities
2018 2017
GBP'm GBP'm
Rental income 1.5 5.0
Direct property costs (0.2) (1.6)
------ ------
Rental surplus 1.3 3.4
Profit on sale of group undertakings* - 1.5
Sale of investment property 4.3 -
Cost of investment property (3.8) -
sold
Total net income arising from
investment property activities 1.8 4.9
====== ======
*Profit arising from the sale of the investment property
portfolio to Regional REIT Limited.
Administrative Expenses
The administrative expenses for the year ended 30 September 2018
were GBP3.1 million compared with GBP2.7 million the previous year.
The major items were salary costs of GBP1.9 million (2017: GBP1.7
million) and various costs arising as a result of the Group being
listed on AIM.
Financing
At 30 September 2018, the Group had cash of GBP49.3 million
(2017: GBP37.2 million). The increase has resulted mainly from sale
of both the Regional REIT shares and investment property, partly
offset by the cash used in buying back shares, administrative
costs, the purchase of Selly Oak and investing in the investment
properties under construction and development projects.
As at 30 September 2018, the Group does not maintain any bank
loan facilities.
Taxation
The tax credit for the year is GBP0.1 million on the pre-tax
loss of GBP3.8 million and comprises GBP0.1 million of current tax
offset by a GBP0.2 million deferred tax credit. Current tax is
payable, at a rate of 19% for UK registered companies and 20% for
those registered in Jersey, on net rental income after deduction of
finance costs and administrative expenses. The deferred tax
liability of GBP0.2 million, recognised at 30 September 2017, has
been reversed in the year following the sale of all the Regional
REIT shares.
Capital management
Capital Risk Management
The Group's objectives when managing capital are to safeguard
the Group's ability to continue as a going concern in order to
provide returns for shareholders and benefits for other
stakeholders and to maintain an optimal capital structure to reduce
the cost of capital.
While the Group does not have a formally approved gearing ratio,
the objective above is actively managed through the direct linkage
of borrowings to specific property. The Group seeks to ensure that
secured borrowing stays within agreed covenants with external
lenders.
Treasury Policies
The objective of the Group's treasury policies is to manage the
Group's financial risk, secure cost effective funding for the
Group's operations and to minimise the adverse effects of
fluctuations in the financial markets on the value of the Group's
financial assets and liabilities, on reported profitability and on
the cash flows of the Group.
The Group finances its activities with a combination of bank
loans, cash and short term deposits. Other financial assets and
liabilities, such as trade receivables and trade payables, arise
directly from the Group's operations. The Group may also enter into
derivative transactions to manage the interest rate risk arising
from the Group's operations and its sources of finance. Derivative
instruments may be used to change the economic characteristics of
financial instruments in accordance with the Group's treasury
policies.
The management of cash and similar instruments is monitored
weekly with summary cash statements produced on a fortnightly basis
and discussed regularly in management and Board meetings. The
overall aim is to provide sufficient liquidity to meet the
requirements of the business in terms of funding developments and
potential acquisitions. Surplus funds are invested with a broad
range of institutions with a range of maturities up to a maximum of
180 days. At any point in time, at least half of the Group's cash
is held on instant access or short term deposit of less than 30
days.
Dividend policy
The Board recommends that no dividend is paid in respect of the
year ended 30 September 2018.
Our dividend policy is consistent with the overall strategy of
the business: namely to invest in property assets and companies
where we can add significant value using our property management,
development and transaction structuring skills.
Over the past nine years we have used the surplus cash flow from
the investment property portfolio to enhance these properties by
refurbishment, re-letting and extending tenancies, fund the
operation of the business, create a medium term pipeline of
development opportunities, pay a modest dividend and buy back
shares where appropriate.
The Board will continue to review our dividend policy each year.
Our focus is, and will continue to be, primarily growth in net
asset value per share.
Share buy backs
During the year, the Group acquired 7,130,000 ordinary shares at
an average price of 165.9p which represents 10.7% of its ordinary
share capital. This cost GBP11.8 million and net asset value per
share has been enhanced by approximately 4.4 pence per share. The
Group will seek to renew the buy back authority at the forthcoming
Annual General Meeting.
Principal risks and uncertainties
Managing risk is an integral element of the Group's management
activities and a considerable amount of time is spent assessing and
managing risks to the business. Responsibility for risk management
rests with the Board, with external advisers used where
necessary.
Strategic risks
Strategic risks are risks arising from an inappropriate strategy
or through flawed execution of a strategy. By definition,
strategies tend to be longer term than most other risks and, as has
been amply demonstrated in the last few years, the economic and
wider environment can alter quickly and significantly. Strategic
risks identified include global or national events, regulatory and
legal changes, market or sector changes and key staff
retention.
The Board devotes a considerable amount of time and resource to
continually monitoring and discussing the environment in which we
operate and the potential impacts upon the Group. We are confident
we have sufficiently high calibre directors and managers to manage
strategic risks.
We are content that the Group has the right approach toward
strategy and our financial performance and strong balance sheet are
good evidence of that.
Operational risks
Operational risks are essentially those risks that might arise
from inadequate internal systems, processes, resources or incorrect
decision making. Clearly, it is not possible to eliminate
operational risk, however a considerable amount of time and
resource is applied towards ensuring we have the right calibre of
staff and external support to minimise such risks, as most
operational risks arise from people-related issues. We have also
invested in improved IT systems to support the business and protect
data. Our executive directors are very closely involved in the
day-to-day running of the business to ensure sound management
judgement is applied.
The Group has not suffered any material loss from operational
risks during the year.
Market risks
Market risks primarily arise from the possibility that the Group
is exposed to fluctuations in the values of, or income from, its
investment property portfolio and development land bank. This is a
key risk to the principal activities of the Group and the exposures
are continuously monitored through timely financial and management
reporting and analysis of available market intelligence.
Where necessary, management takes appropriate action to mitigate
any adverse impact arising from identified risks and market risks
continue to be monitored closely.
Estimation and judgement risks
To be able to prepare accounts according to generally accepted
accounting principles, management must make estimates and
assumptions that affect the asset and liability items and revenue
and expense amounts recorded in the accounts. These estimates are
based on historical experience and various other assumptions that
management and the board of directors believe are reasonable under
the circumstances. The results of these considerations form the
basis for making judgements about the carrying value of assets and
liabilities that are not readily available from other sources.
The key sources of estimation uncertainty that have a
significant risk of causing material adjustment to the carrying
amounts of assets and liabilities within the next financial year
are the following:
Property held for Investment
The fair value of property held for investment is based upon
open market value and is calculated using a third party valuation
provided by an external valuer.
Properties held for Development
The net realisable value of properties held for development
requires an assessment of fair value of the underlying assets using
property appraisal techniques and other valuation methods. Such
estimates are inherently subjective and actual values can only be
determined in a sales transaction.
Investment Properties under Construction
The fair value of investment properties under construction rests
in planned developments, and is difficult to estimate before the
completion of their construction, and hence has been estimated by
the Directors at cost as an approximation to fair value.
Financial Liabilities
The Group's policy is to manage the cost of borrowing using
variable rate debt. Whilst floating rate borrowings are not exposed
to changes in fair value, the Group is exposed to cash flow risk as
costs increase if market rates rise. The Group's policy is to use
derivative financial instruments to mitigate at least 50% of this
risk in order to
achieve a sensible and appropriate level of interest rate
protection whilst maintaining flexibility to match the commercial
trading strategy.
As at 30 September 2018, the Group does not maintain any bank
loan facilities or derivative financial instruments.
Financial Assets
The interest rate profile of the Group's cash at the balance
sheet date was as follows:
30 Sep 18 30 Sep 17
GBP'000 GBP'000
Floating rate 49,262 37,170
========= =========
Floating rate financial assets comprise cash and short term
deposits at call and money market rates for up to thirty days and
institutional cash funds.
Credit Risk
The risk of financial loss due to a counterparty's failure to
honour its obligations arises principally in connection with
property leases, the investment of surplus cash and transactions
where the Group sells properties with an element of deferred
consideration.
Tenant rent payments are monitored regularly and appropriate
action is taken to recover monies owed or if necessary, to
terminate the lease. Deferred consideration terms are only agreed
with counterparties approved by the Board or where some additional
security is available, and there were none as at 30 September 2018
(2017: none).
The Group policy has been to invest funds with a broad range of
institutions having investment grade low risk credit ratings and a
strong or superior ability to repay short term debt obligations.
The unprecedented credit and banking market disruption of the
global financial crisis had a significant impact upon the ability
to rely upon either credit ratings or the ability of financial
institutions to honour their commitments and the widespread nature
of the financial crisis introduced considerable uncertainty into
the process. As at 30 September 2018, the Group had a single
balance of GBP57,000 (2017: GBP59,000) where the counter-party had
failed to honour a notice deposit and a full impairment provision
has been recorded against the balance. There are no other
receivables which are past due but not impaired.
Liquidity Risk
The Group's objective is to maintain a balance between
continuity of funding and flexibility through the use of bank loans
secured on the Group's properties. The Group is exposed to
liquidity risk should it encounter difficulties in realising assets
mainly through the sale of properties. However, the Group maintains
a prudent approach to financing and cash flow such that the adverse
impact of this can be mitigated.
Price Risk
The Group's exposure to changing market prices on the value of
financial instruments may have an impact on the carrying value of
financial instruments and would arise principally as a result of
entering into swaps or similar transactions to fix interest rates
on the Group's borrowings. The Group's policies for managing this
risk are to control the levels of fixed rate debt. As the Group's
assets and liabilities are all denominated in Pounds Sterling,
there is currently no exposure to currency risk.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 September 2018
Note Year Ended Year Ended
30 Sep 18 30 Sep 17
GBP'000 GBP'000
Rental income 1,342 4,641
Other property income 196 367
Revenue 1,538 5,008
----------- -----------
Direct costs of:
Rental income 161 1,608
Development costs written off 17 3,232 77
Direct Costs 3,393 1,685
----------- -----------
Gross (Loss)/Profit (1,855) 3,323
Profit on sale of group undertakings - 1,496
Profit on sale of investment property 13 446 -
Surplus on revaluation of investment property 34 -
13
Profit realised in purchase of Stena Line's
interest in Conygar Holyhead Limited 23 1,083 -
Loss on sale of Regional REIT shares 12 (2,132) -
Dividends received from Regional REIT 1,636 948
Loss on revaluation
of investment in Regional REIT - (355)
Share of results of joint ventures 15 - 29
Other gains and losses 6 3 95
Administrative expenses (3,075) (2,710)
----------- -----------
Operating (Loss)/Profit 3 (3,860) 2,826
Finance costs 7 - (1,785)
Finance income 7 91 174
----------- -----------
(Loss)/Profit Before Taxation (3,769) 1,215
Taxation 8 95 (360)
----------- -----------
(Loss)/Profit And Total Comprehensive
(Charge)/Income for the Year (3,674) 855
----------- -----------
(Loss)/earnings per share 10 (5.72)p 1.21p
All amounts are attributable to equity shareholders
All of the activities of the Group are classed as
continuing.
CONSOLIDATED Statement of Changes in Equity
for the year ended 30 September 2018
Attributable to the equity holders of the Company
Capital
Share Redemption Treasury Retained Total
Capital Reserve Shares Earnings Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Changes in equity for
the year ended 30 September
2017
At 1 October 2016 4,985 1,568 (32,194) 177,680 152,039
Profit for the year - - - 855 855
-------- ------------ ----------- ----------- ---------
Total comprehensive
income for the year - - - 855 855
Purchase of own shares - - (17,104) - (17,104)
Cancellation of treasury
shares (1,629) 1,629 48,909 (48,909) -
At 30 September 2017 3,356 3,197 (389) 129,626 135,790
-------- ------------ ----------- ----------- ---------
Changes in equity for
the year ended 30 September
2018
At 1 October 2017 3,356 3,197 (389) 129,626 135,790
Loss for the year - - - (3,674) (3,674)
-------- ------------ ----------- ----------- ---------
Total comprehensive
charge for the year - - - (3,674) (3,674)
Purchase of own shares - - (11,832) - (11,832)
Cancellation of treasury
shares (368) 368 12,221 (12,221) -
At 30 September 2018 2,988 3,565 - 113,731 120,284
======== ============ =========== =========== =========
CONSOLIDATED BALANCE SHEET
at 30 September 2018
Note 30 Sep 2018 30 Sep
GBP'000 2017
GBP'000
Non-Current Assets
Property, plant and equipment 11 - 24
Investment in Regional REIT 12 - 27,643
Investment properties 13 3,570 -
Investment properties under construction 14 34,663 34,293
Investment in joint ventures 15 - 7,267
38,233 69,227
------------ ---------
Current Assets
Development and trading properties 17 31,931 29,311
Trade and other receivables 18 1,425 1,166
Cash and cash equivalents 49,262 37,170
------------ ---------
82,618 67,647
------------ ---------
Total Assets 120,851 136,874
Current Liabilities
Trade and other payables 19 457 879
Tax liabilities 110 -
------------ ---------
567 879
------------ ---------
Non-Current Liabilities
Deferred tax 22 - 205
Total Liabilities 567 1,084
------------ ---------
Net Assets 120,284 135,790
============ =========
Equity
Called up share capital 20 2,988 3,356
Capital redemption reserve 3,565 3,197
Treasury shares 21 - (389)
Retained earnings 113,731 129,626
------------ ---------
Total Equity 120,284 135,790
============ =========
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30 September 2018
Year Ended Year Ended
30 Sep 18 30 Sep 17
GBP'000 GBP'000
Cash Flows From Operating Activities
Operating (loss)/profit (3,860) 2,826
Development costs written off 3,232 77
Profit on sale of group undertakings - (1,496)
Profit on sale of investment property (446) -
Surplus on revaluation of investment property (34) -
Loss on sale of Regional REIT shares 2,132 -
Loss on revaluation of Regional REIT shares - 355
Profit realised on purchase of Stena Line's
interest in Conygar Holyhead Limited (1,083) -
Share of results of joint ventures - (29)
Depreciation and amortisation of reverse lease
premium 24 66
Other gains and losses - 22
Cash Flows From Operations Before Changes In
Working Capital (35) 1,821
Change in trade and other receivables (249) (659)
Change in land, developments and trading properties (211) (127)
Change in trade and other payables (541) (436)
----------- -----------
Cash Flows From Operations (1,036) 599
Finance costs - (693)
Finance income 91 74
Tax paid (10) (181)
----------- -----------
Cash Flows Used In Operating Activities (955) (201)
----------- -----------
Cash Flows From Investing Activities
Acquisition of and additions to investment
properties (7,687) (22,149)
Proceeds from sale of investment property 4,331 -
Proceeds from the sale of shares in Regional 25,511 -
REIT
Repayment by Stena Line of its 50% share of
a loan made to the 2,500 -
Group by Conygar Holyhead Limited
Cash transferred on sale of group undertakings - (1,881)
Costs paid on sale of group undertakings - (792)
Cash received from/(investment in) joint ventures 224 (282)
Proceeds from sale/assignment of interest in
joint venture - 3,125
Purchase of plant and equipment - (12)
----------- -----------
Cash Flows Generated From/(Used In) Investing
Activities 24,879 (21,991)
----------- -----------
Cash Flows From Financing Activities
Bank loans drawn down - 21,298
Bank loans repaid - (8,335)
Costs paid on new bank loan - (548)
Purchase of own shares (11,832) (16,715)
Cash Flows Used In Financing Activities (11,832) (4,300)
----------- -----------
Net increase/(decrease) in cash and cash equivalents 12,092 (26,492)
Cash and cash equivalents at 1 October 37,170 63,662
Cash and Cash Equivalents at 30 September 49,262 37,170
----------- -----------
NOTES TO THE ACCOUNTS
For the year ended 30 September 2018
1. The financial information set out in this announcement is
abridged and does not constitute statutory accounts for the year
ended 30 September 2018 but is derived from those financial
statements. The financial information is not audited. The auditors
have reported on the statutory accounts for the year ended 30
September 2018, their report was unqualified and did not contain
statements under sections 498(2) or (3) of the Companies Act 2006,
and these will be delivered to the Registrar of Companies following
the Company's annual general meeting. The financial information has
been prepared using the recognition and measurement principle of
IFRS.
2. The comparative financial information for the year ended 30
September 2017 was derived from information extracted from the
annual report and accounts for that period, which was prepared
under IFRS and which has been filed with the UK Registrar of
Companies. The auditors have reported on those accounts, their
report was unqualified and did not contain statements under
sections 498 (2) or (3) of the Companies Act 2006.
3. Operating PROFIT
Operating profit is stated after charging:
Year ended Year ended
30 Sep 18 30 Sep 17
GBP'000 GBP'000
Audit services - fees payable to the parent company
auditor for the audit of the Company and the
consolidated financial statements 33 33
----------- -----------
Other services - fees payable to the Company
auditor for the audit of the Company's subsidiaries
pursuant to legislation. 16 15
----------- -----------
Other services - fees payable to the Company
auditor for tax services 18 18
----------- -----------
Depreciation of owned assets 24 9
----------- -----------
Operating lease rentals - land and buildings 231 223
----------- -----------
Movement on provision for doubtful debts - 40
----------- -----------
4. PARTICULARS OF EMPLOYEES
The aggregate payroll costs were:
Year ended Year ended
30 Sep 18 30 Sep 17
GBP'000 GBP'000
Wages and salaries 1,664 1,516
Social security costs 215 196
1,879 1,712
========== ==========
The average monthly number of persons, including executive
directors, employed by the Company during the year was seven (2017:
seven).
5. DIRECTORS' EMOLUMENTS
Year ended Year ended
30 Sep 18 30 Sep 17
GBP'000 GBP'000
Basic salary 1,042 1,013
Payment in lieu of notice 202 -
---------- ----------
Total emolument 1,244 1,013
========== ==========
Emoluments of highest paid director 370 354
========== ==========
The board of directors comprises the only persons having
authority and responsibility for planning, directing and
controlling the activities of the Group.
6. OTHER GAINS AND LOSSES
Year ended Year ended
30 Sep 18 30 Sep 17
GBP'000 GBP'000
Movement in fair value of interest rate swaps - 59
Other 3 36
3 95
================== ===========
7. FINANCE INCOME/COSTS
Year ended Year ended
Finance Income 30 Sep 18 30 Sep 17
GBP'000 GBP'000
Bank interest and interest receivable 91 174
========== ==========
Finance Costs
Bank loans - (757)
Amortisation of arrangement fees - (127)
ZDP interest payable - (901)
---------- ----------
- (1,785)
========== ==========
8. TAXATION ON ORDINARY ACTIVITIES
(a) Analysis of tax (credit)/charge in the year
Year ended Year ended
30 Sep 18 30 Sep 17
GBP'000 GBP'000
UK Corporation tax based on the results for the
year 110 313
Over provision in prior years - (11)
----------- -----------
Current tax charge 110 302
Deferred tax (credit)/charge (205) 58
(95) 360
=========== ===========
(b) Factors affecting tax charge
The tax assessed on the (loss)/profit for the year differs from the
standard rate of corporation tax in the UK of 19.0% (2017: 19.5%).
Year ended Year ended
30 Sep 18 30 Sep 17
GBP'000 GBP'000
(Loss)/profit before taxation (3,769) 1,215
=========== ===========
(Loss)/profit multiplied by rate of tax (716) 237
Effects of:
Gains not subject to UK taxation (89) -
Revaluation gains not taxable (7) -
Tax impact of unrealised revaluation movements 69
Utilisation of tax losses (4) (98)
Movement in tax losses carried forward 1,128 304
Non-taxable items (195) (189)
Capital allowances (2) (76)
Impact of differing tax rates for offshore entities (5) 66
Over provision in prior years - (11)
----------- -----------
Current tax charge for the year 110 302
=========== ===========
9. DIVIDS
No dividend will be paid in respect of the year ended 30
September 2018 (2017: nil).
10. EARNINGS PER SHARE
The calculation of earnings per ordinary share is based on the
loss after tax of GBP3,674,000 (2017: profit of GBP855,000) and on
the number of shares in issue being the weighted average number of
shares in issue during the period of 64,184,339 (2017: 70,684,860).
There are no diluting amounts in either the current or prior
years.
11. PROPERTY, PLANT AND EQUIPMENT
Office Furniture
Equipment & Fittings Total
GBP'000 GBP'000 GBP'000
Cost
At 1 October 2016 89 95 184
Additions 12 - 12
------------ ------------- -----------
At 30 September 2017 and 1 October 2017 101 95 196
Additions - - -
------------ ------------- -----------
At 30 September 2018 101 95 196
------------ ------------- -----------
Depreciation/Amortisation
At 1 October 2016 68 95 163
Provided during the year 9 - 9
------------ ------------- -----------
At 30 September 2017 and 1 October 2017 77 95 172
Provided during the year 24 - 24
------------ ------------- -----------
At 30 September 2018 101 95 196
------------ ------------- -----------
Net book value at 30 September 2018 - - -
============ ============= ===========
Net book value at 30 September 2017 24 - 24
============ ============= ===========
12. INVESTMENT IN REGIONAL REIT
Regional REIT is a United Kingdom based real estate investment
trust whose shares were admitted to the premium segment of the
Official List and to trading on the main market of the London Stock
Exchange on 6 November 2015. Regional REIT is managed by London
& Scottish Investments Limited, as asset manager, and Toscafund
Asset Management LLP, as investment manager.
The Company sold all of its 26,326,644 shares in Regional REIT
during the year realising a loss on sale as set out below:
30 Sep
18
GBP'000
Gross sale proceeds 25,545
Sale fees (34)
---------
Net sale proceeds 25,511
Book value of shares sold (27,643)
---------
Loss on sale of Regional REIT shares (2,132)
=========
13. INVESTMENT PROPERTIES
Group Reverse
Long Lease Premiums
Freehold Leasehold GBP'000 Total
GBP'000 GBP'000 GBP'000
Valuation at 1 October 2016 106,390 23,902 388 130,680
Additions 11 64 - 75
Reclassification to investment
properties under construction (1,170) - - (1,170)
Reverse lease premium amortisation - - (57) (57)
Disposal of group undertakings (105,231) (23,966) (331) (129,528)
----------- ------------ ---------------- ----------
At 30 September 2017 - - - -
Additions 3,536 - - 3,536
Movement on revaluation 34 - - 34
----------- ------------ ---------------- ----------
Valuation at 30 September 2018 3,570 - - 3,570
=========== ============ ================ ==========
The historical cost of property held at 30 September 2018 is
GBP3,536,000.
The property was valued by Lambert Smith Hampton, independent
valuers not connected with the Group, at 30 September 2018 at
market value in accordance with the Practice Statements contained
in the RICS Appraisal and Valuation Standards published by the
Royal Institution of Chartered Surveyors which conform to
international valuation standards. The valuation was arrived at by
reference to market evidence of transaction prices and completed
lettings for similar properties. No allowance has been made for
expenses of realisation or for any tax which might arise. It
assumes a willing buyer and a willing seller in an arm's length
transaction. The valuation reflects usual deductions in respect of
purchaser's costs and SDLT as applicable at the valuation date. The
independent valuer makes various assumptions including future
rental income, anticipated void cost, the appropriate discount rate
or yield.
The property rental income earned from investment properties
(including investment properties under construction), leased out
under operating leases, amounted to GBP1,538,000 (2017:
GBP5,008,000). Details of the profit on sale of the investment
property in the year are set out below:
30 Sep
18
GBP'000
Gross sale proceeds 4,331
Sale fees (49)
---------
Net sale proceeds 4,282
Book value of property sold (3,836)
---------
Profit on sale of investment property 446
=========
14. INVESTMENT PROPERTIES UNDER CONSTRUCTION
Investment properties under construction are freehold land and
buildings representing investment properties under development or
construction and they amount to GBP34,663,000 (2017: GBP34,293,000)
as at 30 September 2018. These properties comprise landholdings for
current or future development as investment properties. This
methodology has been adopted because the value of these properties
is dependent on a detailed knowledge of the planning status, the
competitive position of the assets and a range of complex
development appraisals. The fair value of these properties rests in
the planned developments, and is difficult to estimate pending
confirmation of designs and planning permission, and hence has been
estimated by the directors at cost as an approximation to fair
value.
The movement in the carrying value of investment properties
under construction during the year was as follows:
30 Sep 30 Sep
18 17
GBP'000 GBP'000
At 1 October 34,293 9,476
Additions 4,206 22,038
Disposals (3,836) -
Reclassification from investment properties - 1,170
Reclassification from development projects - 1,609
At 30 September 34,663 34,293
========= =========
15. INVESTMENT IN JOINT VENTURES
30 Sep 30 Sep
18 17
GBP'000 GBP'000
At 1 October 7,267 10,110
Share of results of joint venture - 29
Investment in joint venture 76 253
Contribution to planning costs by joint venture (300) -
partner
Repayment by Stena Line of its 50% share of a
loan (2,500) -
the Group made to Conygar Holyhead Limited
Proceeds on sale/assignment of interest in joint
venture - (3,125)
Reclassification to property inventories following
purchase
of interest in joint venture (4,543) -
At 30 September - 7,267
========== =========
As set out in the Chairman's and Chief Executive's statement,
the Group acquired the 50% interest in Conygar Holyhead Limited
(formerly Conygar Stena Line Limited) previously owed by its joint
venture partner Stena Line Ports Limited on 23 May 2018.
As at 30 September 2018, the only joint venture company in which
the Group retained a 50% interest was CM Sheffield Limited which
was dormant at the balance sheet date and dissolved on 2 October
2018.
The following amounts represent the Group's share of the assets
and liabilities as at 30 September 2017 and the results of the
joint ventures for the year ended 30 September 2017, which are
included in the comparative consolidated balance sheet and
consolidated statement of comprehensive income.
As at
30 Sep
17
GBP'000
Assets
Current assets 7,282
Liabilities
Current liabilities (15)
Net Assets 7,267
=========
Year ended
30 Sep
17
GBP'000
Operating profit and profit before tax 29
Tax -
Profit after tax 29
===========
As at 30 September 2017, the Group had provided loans to Conygar
Holyhead Limited and C M Sheffield Limited of GBP8,098,000 and
GBP2,000 respectively.
16. INVESTMENT IN SUBSIDIARY UNDERTAKINGS
The subsidiaries set out below are wholly owned and controlled
by the Group as at the balance sheet date.
Country
of % of
Company name Principal activity registration equity held
Conygar Holdings Ltd Holding Company England 100%
Conygar Wales PLC Holding Company England 100%*
Conygar Developments Ltd Property trading and development England 100%*
Conygar Haverfordwest
Ltd Property trading and development England 100%*
Conygar Holyhead Ltd
(formerly Conygar Stena
Line Ltd) Property trading and development England 100%*
Conygar Nottingham Ltd Property trading and development England 100%*
Conygar Ynys Mon Ltd Property trading and development England 100%*
Martello Quays Ltd Property trading and development England 100%
The Nottingham Island
Site
Management Company Ltd Dormant England 100%*
Conygar Properties Ltd*** Dormant England 100%*
Lamont Property Holdings
Ltd Property investment Jersey 100%*
Conygar Ashby Ltd Property investment Jersey 100%*
Conygar Cross Hands Ltd Property investment Jersey 100%*
Subsidiaries struck off after the balance
sheet date
Conygar Bedford Square
Ltd** Dormant England 100%*
Conygar Sunley Ltd** Dormant England 100%*
* Indirectly owned.
** Conygar Bedford Square Ltd and Conygar Sunley Ltd were dissolved on 2 October
2018.
*** Conygar Properties Ltd was dissolved on 13 November
2018.
17. DEVELOPMENT AND TRADING PROPERTIES
30 Sep 30 Sep
18 17
GBP'000 GBP'000
Properties held for resale or development 31,931 29,311
======== ========
Development and trading properties include sites, developments
in the course of construction and sites available for sale. The
movements in the carrying value of development and trading
properties during the year were as follows:
30 Sep 18 30 Sep
GBP'000 17
GBP'000
At 1 October 29,311 30,739
Additions 4,913 258
Development costs written off (3,232) (77)
Reclassification from joint venture following purchase
of partners interest 4,543 -
Fair value of properties and land leased to Stena
Line (note 23) (3,604) -
Reclassification to investment properties under
construction - (1,609)
---------- ----------
At 30 September 31,931 29,311
========== ==========
As set out in the Chairman's and Chief Executive's Statement,
the Group is unable to progress its proposals for a mixed-use
development at Fishguard, west Wales. Accordingly, the Group has
written off a total of GBP2.4 million.
The Group has also written off its GBP0.8 million investment in
the Llandudno Junction project.
18. TRADE AND OTHER RECEIVABLES
30 Sep 18 30 Sep
17
GBP'000 GBP'000
Trade receivables 84 26
Provision for doubtful debts - -
---------- --------
84 26
Amounts owed by group undertakings - -
Other receivables 377 535
Prepayments and accrued income 964 605
---------- --------
1,425 1,166
========== ========
The directors consider that the carrying amount of trade and
other receivables approximates to their fair value due to the short
term nature of these financial assets.
19. TRADE AND OTHER PAYABLES
30 Sep 18 30 Sep
17
GBP'000 GBP'000
Social security and payroll taxes 61 66
Trade payables 82 545
Accruals and deferred income 314 268
---------- --------
457 879
========== ========
The directors consider that the carrying amounts of the trade
and other payables approximate to their fair value due to the short
period of repayment.
20. SHARE CAPITAL
Authorised share capital:
30 Sep 18 30 Sep 17
GBP GBP
140,000,000 (2017: 140,000,000) Ordinary shares
of GBP0.05 each 7,000,000 7,000,000
========= =========
Allotted and called up:
Amounts recorded as equity:
Ordinary shares of GBP0.05
each
No GBP'000
As at 30 September 2017 67,126,435 3,356
Cancellation of treasury shares (7,365,000) (368)
---------------- -----------------
As at 30 September 2018 59,761,435 2,988
================ =================
21. TREASURY SHARES
In December 2010, the Group began a share buyback programme and
during the year ended 30 September 2018 purchased 7,130,000 (2017:
10,340,000) shares on the open market at a cost of GBP11,832,023
(2017: GBP17,103,676). As seen in note 20 above, on 27 September
2018, 7,365,000 ordinary shares of 5 pence each were transferred
out of treasury and cancelled.
22. DEFERRED TAX LIABILITY
The Group's deferred tax liabilities comprise amounts arising
from unrealised revaluation movements as follows:
30 Sep 18 30 Sep 17
GBP'000 GBP'000
At the start of the year 205 1,902
(Credit)/charge to the statement of comprehensive
income (205) 58
Transfer of obligation on sale of group undertakings - (1,755)
--------- ---------
At the end of the year - 205
========= =========
Deferred tax liabilities have been measured at a rate of 19%
(2017: 19%), being the rate substantively enacted at the balance
sheet date. They are calculated on the basis of the chargeable gain
that would crystallise on the sale of the Group's investment
properties and other fixed asset investments at each balance sheet
date. The calculation takes account of any available
indexation.
23. ACQUISITION OF SUBSIDIARY
On 24 May 2018, the Group agreed with its partner, Stena Line
Ports Limited ("Stena Line"), to take 100% control of its joint
venture development project at Holyhead Waterfront.
The transaction enables the Group to progress with the scheme as
planned and the Company will work towards obtaining detailed
planning permission in the coming months. As part of the
transaction, Conygar Holyhead Limited (formerly Conygar Stena Line
Limited) has granted 999 year leases to Stena Line of the platform
at Soldier's Quay, which is not required for the waterfront
development, and a warehouse which is situated at Soldier's Point
and is currently used by Stena Line. The Group has the right to
call for a sublease if this warehouse is required for the
waterfront development in the future.
As part of the transaction, Stena Line has repaid GBP2.5 million
to the Group, which is Stena Line's 50% share of a loan the Group
made to the joint venture company. As consideration for the sale of
its shares in the joint venture company, Stena Line has received
GBP1 and will receive 20% of the profit after tax of the
development once it has completed.
The transaction has been accounted for by the acquisition method
of accounting
Net assets acquired Book value Fair value
GBP'000 GBP'000
Development and trading properties 8,857 8,857
Fair value of properties and land leased to Stena
Line (3,604) (3,604)
Trade and other receivables 18 18
Trade and other payables (2,001) (2,001)
---------- ----------
3,270 3,270
Total consideration including losses recognised
up to 24 May 2018 (2,187)
----------
Gain on acquisition recognised in the Statement
of Comprehensive Income 1,083
==========
As at 30 September 2018, the development at Holyhead Waterfront
is not sufficiently advanced to enable a meaningful estimation of
Stena's profit share to be reported.
24. COMMITMENTS
Group as lessee:
At 30 September 2018, the Group had outstanding commitments for
future minimum lease payments under non-cancellable operating
leases, which fall due as follows:
30 Sep 18 30 Sep 17
GBP'000 GBP'000
Within one year 131 180
In the second to fifth years inclusive - 131
--------- ---------
131 311
========= =========
The Group receives income under non-cancellable leases from
existing property located at several of the Group's development
sites. The income profile based upon the unexpired lease length was
as follows:
30 Sep 30 Sep
18 17
GBP'000 GBP'000
Less than one year 909 186
Between one and five years 3,348 508
Over five years 3,721 296
-------- --------
7,978 990
======== ========
Development of the Premier Inn hotel at Parc Cybi commenced in
March 2018 and is expected to complete in early 2019. As at 30
September 2018, the Company had committed construction costs of
GBP3.1m.
25. FINANCIAL INSTRUMENTS
The fair values of all the Group's financial assets and
liabilities are set out below:
Book Value Book Value Fair Value Fair Value
30 Sep 2018 30 Sep 2017 30 Sep 2018 30 Sep 2017
GBP'000 GBP'000 GBP'000 GBP'000
Financial Assets
Cash 49,262 37,170 49,262 37,170
Loans to joint ventures - 8,100 - 8,100
The fair value of the Group's trade debtors and other
receivables and trade creditors and other payables is not
considered to vary from historic cost due to the short term nature
of these financial assets and liabilities. As such they are
excluded from the disclosure.
The Report and Accounts for the year ended 30 September 2018
will be posted to shareholders shortly and copies may be obtained
free of charge for at least one month following their posting by
writing to The Secretary, The Conygar Investment Company PLC,
Fourth Floor, 110 Wigmore Street, London, W1U 3RW. They are also
available on the website www.conygar.com.
The Company's Annual General Meeting will be held at 10:30am on
21 December 2018 at the offices of Gowling WLG (UK) LLP, 4 More
London Riverside, London, SE1 2AU.
The directors of Conygar accept responsibility for the
information contained in this announcement. To the best of the
knowledge and belief of the directors of Conygar (who have taken
all reasonable care to ensure that such is the case) the
information contained in this announcement is in accordance with
the facts and does not omit anything likely to affect the import of
such information.
This announcement is released by The Conygar Investment Company
PLC and contains inside information for the purposes of Article 7
of the Market Abuse Regulation (EU) 596/2014 (MAR), and is
disclosed in accordance with the Company's obligations under
Article 17 of MAR.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of the Company by Ross McCaskill, Finance Director.
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
FR EAKFXAENPFEF
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