Preliminary Results
June 17 2003 - 8:02AM
UK Regulatory
RNS Number:4171M
Wynnstay Properties PLC
17 June 2003
WYNNSTAY PROPERTIES PLC
17 JUNE 2003
Wynnstay Properties PLC - "the Company" or "Wynnstay"
Preliminary Results for Year Ended 25th March 2003
Chairman's Statement
I am again pleased to present a very satisfactory set of results for your
Company, as summarised below, showing both record profits and strong asset
growth for the year ended 25th March 2003, continuing the substantial progress
achieved over recent years:
2003 2002
* Profit before Property Disposals and
Taxation: + 12.6% #654,000 #581,000
* Profit on ordinary activities before taxation: + 13.4% #755,000 #666,000
* Net asset value per share: + 18.3% 297p 251p
* Basic earnings per share: + 19.4% 18.5p 15.5p
* Recommended total dividend per share: + 6.7% 7.2p 6.75p
The improvements both in terms of profitability and asset value have been
derived largely from those properties we have acquired over recent years and, in
particular, from our expanded interests in industrial properties in central
southern England. The portfolio remained fully let and income producing during
the year. Total property and administrative costs increased to #515,000 from
#478,000, principally on account of certain non-recurring items.
We continued to benefit from the re-financing of our bank facilities carried out
almost two years ago and from lower interest rates. Borrowings have been
reduced significantly, so that at the year end net gearing was 58% compared with
77% last year. The Company therefore has substantial unutilised facilities
available for reinvestment as and when suitable opportunities arise.
During the year we disposed of one office property, at North Hill Colchester, on
which I reported in my interim statement last November, realising a profit
before taxation of #101,000. No property acquisitions were made during the year
although we reviewed a significant number of potential investment opportunities
and made offers, albeit unsuccessfully, on those we considered to be the most
attractive. We are only prepared to acquire properties which we are confident
will add significant value to the portfolio over the medium to long term. We
remain determined not to overpay, particularly at this mature stage of the cycle
and with the economy continuing to appear very fragile.
At the year end, the Company's property portfolio was independently valued at
almost #15.5 million of which, by value, 44% related to industrial property, 31%
to offices and 25% to retail. The resulting surplus for the year of #1.11
million contributed towards the 18.3% increase in net asset value to 297 pence
per share.
In the light of these results, the Directors are recommending a total dividend
for the year of 7.2 pence per share, representing an increase of 6.7% over that
paid for the previous year.
Emulating last year's performance will be challenging. However, at this early
stage, prospects for the current year appear satisfactory.
Despite reports of possible overheating in the property market, the sector has
generally performed well relative to most others and Wynnstay's share price has
proved to be resilient in the prevailing unsettled conditions.
As I reported at the interim stage, I and my immediate family acquired a further
570,700 ordinary shares in Wynnstay, taking our aggregate holding to 27.07%. As
Chairman, and with the support of the entire Board, I remain committed to the
further successful development of Wynnstay for the benefit of all Shareholders
over the coming years.
I am hoping that as many Shareholders as possible will be able to attend our
Annual General Meeting which will again be held at the Royal Automobile Club on
Thursday 24th July 2003. At that meeting there will be an opportunity to ask
questions and to meet other Shareholders, as well as participating in the formal
business of the meeting, including the approval of the final dividend.
Finally, I would like to thank on your behalf Wynnstay's small dedicated
management team as well as our professional advisers for their hard work and
support in making the last year such a successful one for your Company.
Philip G.H. Collins
Chairman
CONSOLIDATED PROFIT AND LOSS ACCOUNT YEAR ENDED 25TH MARCH 2003
2003 2002
#'000 #'000 #'000 #'000
TURNOVER:
Gross Rental Income 1,504 1,435
Fees and Commissions 18 19
-------- --------
1,522 1,454
Property Outgoings (63) (56)
-------- --------
1,459 1,398
Administrative Expenses (452) (422)
-------- --------
OPERATING PROFIT 1,007 976
Profit on Disposal of Investment Properties 101 85
-------- --------
1,108 1,061
Finance Costs
Interest Payable (368) (407)
Investment Income 15 12
(353) (395)
-------- -------- -------- --------
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 755 666
Taxation on Profit from Ordinary Activities (171) (178)
-------- --------
PROFIT AFTER TAXATION ATTRIBUTABLE TO ORDINARY SHAREHOLDERS 584 488
Dividends per share:- (66) (227) (63) (213)
Interim Paid: 2.1p 2002: 2.0p -------- --------
(161) (150)
Final Payable: 5.1p 2002: 4.75p -------- --------
----- ------
Total: 7.2p 6.75p
------ ------
RETAINED PROFIT FOR THE FINANCIAL YEAR
Wynnstay Properties PLC 347 253
Subsidiary Companies 10 22
-------- --------
357 275
======== ========
BASIC EARNINGS PER SHARE 18.5P 15.5P
NORMALISED EARNINGS PER SHARE 15.7P 13.5P
CONSOLIDATED BALANCE SHEET AT 25TH MARCH 2003
2003 2002
#'000 #'000 #'000 #'000
FIXED ASSETS
Tangible Assets 15,517 14,578
Investments 1 56
-------- --------
15,518 14,634
CURRENT ASSETS
Debtors 69 102
Cash at Bank and in Hand 287 353
-------- --------
356 455
CREDITORS: Amounts falling due within one year (712) (686)
-------- --------
NET CURRENT LIABILITIES (356) (231)
-------- --------
TOTAL ASSETS LESS CURRENT LIABILITIES 15,162 14,403
CREDITORS: Amounts falling due after more than one year (5,700) (6,450)
-------- --------
9,462 7,953
PROVISIONS FOR LIABILITIES AND CHARGES (86) (38)
-------- --------
NET ASSETS 9,376 7,915
======== ========
CAPITAL AND RESERVES:
SHARE CAPITAL 789 789
RESERVES
Capital Redemption Reserve 205 205
Share Premium Account 1,135 1,135
Capital Reserve 151 151
Revaluation Reserve 3,797 2,836
-------- --------
Non-Distributable Reserves 5,288 4,327
Profit and Loss Account 3,299 2,799
-------- --------
EQUITY SHAREHOLDERS' FUNDS 9,376 7,915
======== ========
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 25TH MARCH 2003
2003 2002
#'000 #'000 #'000 #'000
CASH FLOW FROM OPERATING ACTIVITIES 1,081 944
-------- --------
RETURNS ON INVESTMENT AND SERVICING OF FINANCE
Interest Received 7 12
Interest Paid (374) (374)
--------- --------
NET CASH (OUTFLOW) FROM RETURNS ON INVESTMENT AND SERVICING OF (367) (362)
FINANCE
--------- ---------
TAXATION PAID (144) (121)
--------- ---------
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Purchase of Tangible Fixed Assets (1) (1,208)
Disposal of Tangible Fixed Assets 266 1,070
Sinking Fund Policy (Maturity Proceeds) 65 (1)
--------- --------
NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES 330 (139)
--------- ---------
EQUITY DIVIDENDS PAID (216) (202)
--------- ---------
NET CASH INFLOW BEFORE FINANCING 684 120
FINANCING
Drawdown of Bank Loan - 6,450
Repayment of Bank Loan (750) (6,397)
--------- ---------
(DECREASE)/INCREASE IN CASH IN THE PERIOD (66) 173
========= =========
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
(Decrease)/INCREASE in Cash in the Period (66) 173
Cash Inflow/(Outflow) from Debt Financing 750 (53)
--------- ---------
Movement in Net Debt in the Period 684 120
NET DEBT AT 25TH MARCH 2002 (6,097) (6,217)
--------- ---------
NET DEBT AT 25TH MARCH 2003 (5,413) (6,097)
========= =========
OTHER FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2003
2003 2002
#'000 #'000
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Profit for the Financial Year after Taxation 584 488
Taxation on realised Property Revaluation (6) (11)
Unrealised Surplus on Revaluation of Investment Properties 1,110 185
----------- -----------
Total Recognised Gains and Losses for the Year 1,688 662
Prior year adjustment - (52)
----------- -----------
Total Recognised Gains and Losses since last Annual Report 1,688 610
=========== ===========
RECONCILIATION OF MOVEMENT OF SHAREHOLDERS' FUNDS
Opening Shareholders' Funds as at 26th March 2002 7,915 7,466
Profit for the Financial Year after Taxation 584 488
Dividends (227) (213)
Other recognised gains and losses - as per Statement of Total Recognised Gains and 1,104 174
Losses (as above)
----------- -----------
Closing Shareholders' Funds as at 25th March 2003 9,376 7,915
=========== ===========
NOTE OF HISTORICAL COST PROFITS AND LOSSES
Profit on Ordinary Activities before Taxation 755 666
Realisation of Sinking Fund Investment Policy 56 -
Realisation of Property Revaluation Gains in Previous Years 93 89
----------- -----------
Historical Cost Profit on Ordinary Activities before Taxation 904 755
=========== ===========
Historical Cost Profit for the Year Retained after Taxation and Dividends 506 364
=========== ===========
Notes
1. The financial information above does not constitute full accounts within the
meaning of Section 240 Companies Act 1985 as amended (the "Act"). Full accounts
in respect of the year ended 25th March 2002, on which the auditors reported
without qualification and which contained no statement under Section 237(2) or
(3) of the Act, have been delivered to the Registrar of Companies.
2. Basic earnings per share have been calculated on profits after taxation
attributable to Shareholders of #584,000 (2002: #488,000) and on 3,155,267
ordinary shares being the weighted average number of shares in issue in both
periods. Normalised earnings per share have been calculated on profits after
taxation attributable to Shareholders, excluding profit on property disposals,
of #495,000 (2002: #427,000) on the same weighted average 3,155,267 shares.
3. A final dividend of 5.1p (2002: 4.75p) per share is being recommended and
will be paid on 29th July 2003 to Shareholders on the register at the close of
business on 4th July 2003.
4. The 2003 Annual Report & Financial Statements will be posted to Shareholders
shortly and copies may be obtained by writing to the Secretary, Wynnstay
Properties PLC, Cleary Court, 21 St. Swithin's Lane, London EC4N 8AD.
5. The Company's Annual General Meeting will be held at 12 noon on Thursday
24th July 2003 at The Royal Automobile Club, 89 Pall Mall, London SW1Y 5HS.
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GUUAAQUPWGGM
