Interim Report • Dec 17, 2024
Interim Report
Open in ViewerOpens in native device viewer
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 MARCH 2024
32165 – 26 April 2024 11:18 am – shell
www.cardiff-property.com Stock code: CDFF
The Group, including Campmoss, specialises in property investment and development in the Thames Valley. The total portfolio under management, valued in excess of £22m, is primarily located to the west of London, close to Heathrow Airport and in Surrey and Berkshire.
| Six months 31 March 2024 (Unaudited) |
Six months 31 March 2023 (Unaudited) |
Year 30 September 2023 (Audited) |
||
|---|---|---|---|---|
| Net assets | £'000 | 30,026 | 29,657 | 29,975 |
| Net assets per share | £ | 28.93 | 28.00 | 28.44 |
| Profit before tax | £'000 | 780 | 653 | 1,262 |
| Earnings per share (basic and diluted) | pence | 58.38 | 49.42 | 104.62 |
| Interim/total dividend proposed per share | pence | 6.5 | 6.0 | 22.0 |
| Gearing | % | Nil | Nil | Nil |
32165 – 26 April 2024 11:18 am – shell
New lettings and investment activity in the Thames Valley commercial and residential property sectors marginally increased over the first six months of the financial year. The prospect of lower interest rates has certainly inspired a return of confidence in the property market although current indications are that an early reduction in the base rate is unlikely.
Rental levels in the retail and industrial sectors have stabilised, whilst office rents remain under pressure as many corporate tenants continue to accommodate employees' preference to work from home.
The commercial property investment market has seen a number of transactions indicating the first signs of a recovery in capital values. With the prospects of future, albeit marginal, rental growth, commercial agents and investors are looking forward to further gains in the sector.
Residential values in the Thames Valley have improved reflecting recent reductions in mortgage rates. Rental values have remained firm.
In respect of the Group's portfolio, we await the outcome of a number of planning applications. The planning system remains complex and unpredictable with continuing delays inevitably increasing costs.
Management and liaison with the Group's mixture of tenants remains a priority. The financial health of our tenants is important and where necessary cash flow assistance such as monthly rather than quarterly rentals in advance has been agreed.
For the 6 months ending 31 March 2024 Group profit before tax amounted to £0.78m (March 2023: £0.65m; September 2023; £1.26m). This figure includes an after-tax profit from Campmoss Property Company Limited ("Campmoss") our 47.62% joint venture of £0.10m (March 2023: £0.12m; September 2023: £0.53m). No dividends were received from the Company's investment in Campmoss (March 2023: nil; September 2023: £2m).
Revenue for the 6 months to 31 March 2024 represented by rental income, totalled £0.36m (March 2023: £0.34m; September 2023; £0.66m). The Group's share of revenue from Campmoss was £0.32m (March 2023: £0.29m; September 2023: £0.59m), represented by rental income of £0.28m (March 2023: £0.29m; September 2023; £0.59m) and a property sale completed during the 6 months to March 2024 of £0.04m (March 2023 nil; September 2023: £nil). Rental income and sales figures for Campmoss are not included in Group revenue.
Net assets of the Group as at 31 March 2024 were £30.03m (March 2023: £29.66m; September 2023: £29.98m), equivalent to £28.93 per share (March 2023: £28.00; September 2023: £28.44). The Company's share of net assets in Campmoss, included on the Group balance sheet, amounted to £12.38m. (March 2023: £13.88m; September 2023: £12.28m).
Cash balances held by Cardiff and Campmoss are placed on short-term deposit. At the half year the Company had £nil gearing (March 2023: £nil; September 2023: £nil).
The directors are of the opinion, other than as mentioned in this report, that no material events or material changes in assets, liabilities or related party relationships since 30 September have occurred.
The Company may hold in treasury any of its own shares purchased which gives the Company the ability to re-issue treasury shares and provide greater flexibility in the management of its capital base.
During the 6 months to 31 March 2024 the Company purchased 16,034 ordinary shares (March 2023: 22,577 ordinary shares; September 2023: 27,977 ordinary shares). All shares purchased by the Company not held in treasury have been cancelled and the number of shares in issue reduced accordingly.
Current IFRS accounting recommends that deferred tax is chargeable on the difference between the indexed cost of properties and quoted investments and their current market value. However, current IFRS accounting does not require the same treatment in respect of the Group's unquoted investment in Campmoss Property, the 47.62% owned joint venture, which represents a substantial part of the Company's net assets.
Whilst provision is made in Campmoss accounts for deferred tax, should the shares held in Campmoss be disposed of, for indicative purposes only, based on the value in the company's balance sheet at 31 March 2024 this would result in a tax liability of £3.10m (March 2023: £3.47m; September 2023: £3.07m) equivalent to £2.98 per share calculated using a tax rate of 25% (March 2023: £3.28 per share ; September 2023 £2.91 per share). This information is provided to shareholders as an additional, non-statutory, disclosure.
The directors have declared an interim dividend of 6.5p (interim March 2023: 6.0p; final September 2023: 16.0p) an increase of 8.3% which will be paid on 27 June 2024 to shareholders on the register at 24 May 2024.
The Group's freehold property portfolio, including those held by Campmoss, is located in the Thames Valley and in the counties of Surrey, Berkshire and Buckinghamshire.
The Windsor Business Centre, Windsor, comprises 4 business units all of which are let on leases inclusive of a development break clause. The outcome of a planning application for the renewal of an existing consent for a new 21,000 sq. ft. office scheme is awaited. Commencement of this development will depend on securing suitable lettings. The individual units remain available for sale.
Maidenhead Enterprise Centre, Maidenhead, comprises 6 individual business units totalling 14,000 sq. ft. The units include industrial use on the ground floor with offices above. An increase in rental was recently achieved following a rent review. One unit is currently available to lease.
The White House, Egham, comprises 5 ground floor retail units with air-conditioned offices on the upper floor. All retail units are let with part of the upper floor offices available for letting.
Heritage Court, Egham, comprises 4 retail units let on medium term Leases. All residential apartments on the upper floors have previously been sold on long leaseholds. The adjoining freehold office is occupied by the company.
The Campmoss portfolio provides a range of office, retail and residential properties in Burnham, Bracknell and Maidenhead.
The Priory, Stomp Road, Burnham, comprises 17,000 sq. ft. of office space and an adjoining business centre occupying 9,000 sq. ft. Planning permission has been granted for a new 75-bedroom care home whilst retaining the existing Business Centre. Negotiations to achieve a leasing commitment or a freehold sale are currently in hand.
Highway House, Maidenhead retains an extant planning permission for a new 48,000 sq. ft. gross Grade A office scheme. Minor works have taken place, but any major construction work will be subject to achieving sufficient pre-lettings. The outcome of alternative use planning applications for either a care home or residential scheme is awaited. The cleared site is currently used as a car park let to an adjoining office user.
Market Street, Bracknell, includes 4 adjacent buildings divided into thirty-three retail units primarily let on medium-term leases. Seventeen apartments on the upper floors of two of the buildings have been retained and are let on Assured Shorthold Tenancy Agreements. The apartments are also available for sale.
Tangley Place, Worplesdon, is approximately 2.5 acres of land in the greenbelt and adjacent to a previously developed care home subsequently sold to the operator. A planning application for an adjacent specialist care home has recently been submitted.
Management of the Group's portfolio remains a priority and I wish to take this opportunity of thanking our team based in Egham, Surrey and our joint venture partner for their dedication and continued support.
The Company has entered into a written and legally binding Relationship Agreement with myself, its controlling shareholder, to address the requirements of LR9.2.2AR of the Listing Rules.
As mentioned earlier the prospect of lower interest rates has encouraged a return of confidence to the Thames Valley Property market which should assist a recovery in capital values and occupancy levels. Future growth prospects for the Group are primarily dependent on achieving beneficial planning permissions which are subject to the current complexity of the planning system which remains a frustrating, time consuming and costly exercise. As indicated in this half year report there are a number of projects in progress, and I look forward to reporting further at the year end.
Chairman 25 April 2024
| Six months 31 March 2024 (Unaudited) £'000 |
Six months 31 March 2023 (Unaudited) £'000 |
Year 30 September 2023 (Audited) £'000 |
|
|---|---|---|---|
| Revenue | 355 | 339 | 662 |
| Cost of sales | (32) | (16) | (52) |
| Gross profit | 323 | 323 | 610 |
| Administrative expenses | (305) | (300) | (569) |
| Other operating income | 341 | 322 | 646 |
| Operating profit before gains on investment properties and other investments Fair value (loss)/gain on revaluation of investment |
359 | 345 | 687 |
| properties | – | – | (332) |
| Operating profit | 359 | 345 | 355 |
| Financial income | 323 | 114 | 314 |
| Financial expense | (4) | (3) | (6) |
| Profit on sale of investments | – | 75 | 74 |
| Profit on sale of investment properties | – | – | – |
| Share of results of Joint Venture | 102 | 122 | 525 |
| Profit before taxation | 780 | 653 | 1,262 |
| Taxation | (168) | (123) | (148) |
| Profit for the period attributable to equity holders | 612 | 530 | 1,114 |
| Earnings per share on profit for the period – pence | |||
| Basic and diluted | 58.38 | 49.42 | 104.62 |
| Dividends | |||
| Final 2023 paid 16.0p (2022: 15.0p) | 168 | 161 | 161 |
| Interim 2023 paid 6.0p | – | – | 64 |
| 168 | 161 | 225 | |
| Final 2023 proposed 16.0p | – | – | 169 |
| Interim 2024 proposed 6.5p (2023: 6.0p) | 67 | 64 | – |
| 67 | 64 | 169 |
These results relate entirely to continuing operations. There were no acquisitions or disposals during these periods.
for the six months ended 31 March 2024
| Six months | Six months | Year | |
|---|---|---|---|
| 31 March 2024 (Unaudited) £'000 |
31 March 2023 (Unaudited) £'000 |
30 September 2023 (Audited) £'000 |
|
| Profit for the financial period | 612 | 530 | 1,114 |
| Items that cannot be reclassified subsequently to profit or loss |
|||
| Net change in fair value of other properties | – | – | (10) |
| Net change in fair value of investments | (25) | 22 | (37) |
| Total comprehensive income and expense for the period attributable to equity holders of the parent |
|||
| company | 587 | 552 | 1,067 |
at 31 March 2024
| 31 March 2024 (Unaudited) £'000 |
31 March 2023 (Unaudited) £'000 |
30 September 2023 (Audited) £'000 |
|
|---|---|---|---|
| Non-current assets | |||
| Freehold investment properties | 5,660 | 5,985 | 5,655 |
| Property, plant and equipment | 290 | 300 | 290 |
| Right of use asset | 130 | 140 | 135 |
| Investment in Joint Venture | 12,385 | 13,880 | 12,283 |
| Other financial assets | 655 | 837 | 778 |
| Total non-current assets | 19,120 | 21,142 | 19,141 |
| Current assets | |||
| Stock and work in progress | 720 | 704 | 715 |
| Trade and other receivables | 270 | 244 | 274 |
| Held to maturity cash deposits | 8,847 | 8,263 | 10,384 |
| Cash and cash equivalents | 2,063 | 444 | 405 |
| Total current assets | 11,900 | 9,655 | 11,778 |
| Total assets | 31,020 | 30,797 | 30,919 |
| Current liabilities | |||
| Trade and other payables | (515) | (581) | (540) |
| Corporation tax | (241) | (215) | (162) |
| Total current liabilities | (756) | (796) | (702) |
| Non-current liabilities | |||
| Lease liability | (161) | (168) | (165) |
| Deferred tax liability | (77) | (176) | (77) |
| Total non-current liabilities | (238) | (344) | (242) |
| Total liabilities | (994) | (1,140) | (944) |
| Net assets | 30,026 | 29,657 | 29,975 |
| Equity | |||
| Called up share capital | 207 | 212 | 210 |
| Share premium account | 5,076 | 5,076 | 5,076 |
| Other reserves | 2,387 | 2,476 | 2,409 |
| Investment property revaluation reserve | 2,193 | 2,095 | 2,193 |
| Retained earnings | 20,163 | 19,798 | 20,087 |
| Shareholders' funds attributable to equity holders | 30,026 | 29,657 | 29,975 |
| Net assets per share | £28.93 | £28.00 | £28.44 |
OF CASH FLOWS for the six months ended 31 March 2024
| Six months 31 March |
Six months 31 March |
Year 30 September |
||
|---|---|---|---|---|
| 2024 (Unaudited) £'000 |
2023 (Unaudited) £'000 |
2023 (Audited) £'000 |
||
| Cash flows from operating activities | ||||
| Profit for the period | 612 | 530 | 1,114 | |
| Adjustments for: | ||||
| Depreciation right of use assets | 5 | 5 | 10 | |
| Financial income | (323) | (114) | (314) | |
| Financial expense | 4 | 3 | 6 | |
| Profit on sale of investment property | – | – | – | |
| Profit on sale of investment | – | (75) | (74) | |
| Share of profit of Joint Venture | (102) | (122) | (525) | |
| Fair value loss/(gain) on revaluation on of investment | ||||
| properties | – | – | 332 | |
| Taxation | 168 | 123 | 148 | |
| Cash flows from operations before changes in | ||||
| working capital | 364 | 350 | 697 | |
| Acquisition of inventory and work in progress | (6) | (10) | (21) | |
| (Increase)/decrease in trade and other receivables | 4 | (28) | (67) | |
| (Decrease)/increase in trade and other payables | (26) | (18) | (58) | |
| Cash generated from operations | 336 | 294 | 551 | |
| Tax paid | (89) | (98) | (268) | |
| Net cash flows from operating activities | 247 | 196 | 283 | |
| Cash flows from investing activities | ||||
| Interest received | 324 | 114 | 314 | |
| Dividend from Joint Venture | – | – | 2,000 | |
| Proceeds from sale of investment property | – | – | – | |
| Proceeds from bond redemption | 98 | – | 80 | |
| Acquisition of investments, and property, plant and | ||||
| equipment | (5) | – | (2) | |
| Proceeds from sale of investments (Increase)/decrease in held term deposits |
– 1,537 |
158 (4,222) |
79 (6,343) |
|
| Net cash flows from investing activities | 1,954 | (3,950) | (3,872) | |
| Cash flows from financing activities | ||||
| Purchase of own shares | (368) | (546) | (679) | |
| Lease payments | (7) | (7) | (14) | |
| Dividends paid | (168) | (161) | (225) | |
| Net cash flows from financing activities | (543) | (714) | (918) | |
| Net increase/(decrease) in cash and cash | ||||
| equivalents | 1,658 | (4,468) | (4,507) | |
| Cash and cash equivalents at beginning of period | 405 | 4,912 | 4,912 | |
| Cash and cash equivalents at end of period | 2,063 | 444 | 405 |
| Share | Share premium |
Other | Investment property revaluation |
Retained | Total | |
|---|---|---|---|---|---|---|
| capital £'000 |
account £'000 |
reserves £'000 |
reserve £'000 |
earnings £'000 |
equity £'000 |
|
| At 30 September 2022 | 216 | 5,076 | 2,450 | 2,095 | 19,975 | 29,812 |
| Profit for the period | – | – | – | – | 530 | 530 |
| Other comprehensive income – revaluation of investments |
– | – | 22 | – | – | 22 |
| Transactions with equity holders | ||||||
| Dividends | – | – | – | – | (161) | (161) |
| Purchase of own shares | (4) | – | 4 | – | (546) | (546) |
| Total transactions with equity holders | (4) | – | 4 | – | (707) | (707) |
| At 31 March 2023 | 212 | 5,076 | 2,476 | 2,095 | 19,798 | 29,657 |
| Profit for the period | – | – | – | – | 584 | 584 |
| Other comprehensive income – revaluation of investments |
– | – | (59) | – | – | (59) |
| Net change in fair value of own use freehold property |
– | – | (10) | – | – | (100) |
| Transactions with equity holders | ||||||
| Dividends | – | – | – | – | (64) | (64) |
| Purchase of own shares | (2) | – | 2 | – | (133) | 133) |
| Total transactions with equity holders | (2) | – | 2 | – | (197) | (197) |
| Fair value movement on investment properties - Cardiff |
– | – | – | (332) | 332 | – |
| Deferred taxation on fair value movements in investment properties – Cardiff |
– | – | – | 98 | (98) | – |
| Fair value movement on investment | ||||||
| properties – Campmoss Group | – | – | – | 332 | (332) | – |
| At 30 September 2023 | 210 | 5,076 | 2,409 | 2,193 | 20,087 | 29,975 |
| Profit for the period | – | – | – | – | 612 | 612 |
| Other comprehensive income – revaluation of investments |
– | – | (25) | – | – | (25) |
| Transactions with equity holders | ||||||
| Dividends | – | – | – | – | (168) | (168) |
| Purchase of own shares | (3) | – | 3 | – | (368) | (368) |
| Total transactions with equity holders | (3) | – | 3 | – | (536) | (536) |
| At 31 March 2024 | 207 | 5,076 | 2,387 | 2,193 | 20,163 | 30,026 |
for the six months ended 31 March 2024
The directors are responsible for preparing the condensed consolidated interim financial statements for the six months ended 31 March 2024 and they confirm, to the best of their knowledge and belief, that:
32165 – 26 April 2024 11:18 am – shell
J Richard Wollenberg, Chairman Karen L Chandler, Finance director Nigel D Jamieson, Independent non-executive director 25 April 2024
for the six months ended 31 March 2024
This condensed set of financial statements has been prepared in accordance with IAS 34 – Interim Financial Reporting in conformity with the requirements of The Companies Act 2006. The condensed set of financial statements are unaudited.
The annual financial statements of the Group are prepared in accordance with UK-adopted international accounting standards and as applied in accordance with the provisions of the Companies Act 2006. As required by the Disclosure and Transparency Rules of the Financial Conduct Authority, the condensed set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's published consolidated financial statements for the year ended 30 September 2023.
The comparative figures for the financial year ended 30 September 2023 are not the Group's statutory accounts for that financial year. Those accounts have been reported on by the Group's auditor and delivered to the registrar of companies. The report of the auditor was: unqualified; did not give any reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report; and did not contain a statement under sections 498 (2) or (3) of the Companies Act 2006.
The condensed consolidated interim financial statements have been prepared applying the accounting policies that will be applied in the preparation of the Group's financial statements for the year ended 30 September 2024.
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. The key areas in which estimates have been used and the assumptions applied are in valuing investment properties and properties in the joint venture, in valuing available for sale assets, in classifying properties and in the calculating of provisions.
An external, independent valuer, having an appropriate recognised professional qualification and recent experience in the location and category of property being valued, values the company's property portfolio at the end of each financial year. The directors of the joint venture value its portfolio each year; such valuation takes into account yields on similar properties in the area, vacant space and covenant strength. The directors of the group and joint venture review the valuations for the interim financial statements.
A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefit will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
The Group has sufficient financial resources to enable it to continue in operational existence for the foreseeable future, to complete the current maintenance and development programme and meet its liabilities as they fall due. Accordingly, the directors consider it appropriate to continue to adopt the going concern basis in preparing these interim financial statements.
The Group manages its operations in two segments, being property and other investment and property development. Property and other investment relate to the results for The Cardiff Property Company Limited where properties are held as investment property with property development relating to the results of First Choice Estates Plc and Thames Valley Retirement Homes Limited. The results of these segments are regularly reviewed by the Board as a basis for the allocation of resources, in conjunction with individual site investment appraisals, and to assess their performance. Information regarding the results and net operating assets for each reportable segment are set out below:
| Property and other investment £'000 |
Property Development £'000 |
Eliminations £'000 |
Six months 31 march 2024 (Unaudited) Total £'000 |
|
|---|---|---|---|---|
| Rental income (wholly in the UK) | 239 | 116 | – | 355 |
| Profit before taxation | 592 | 188 | – | 780 |
| Net operating assets | ||||
| Assets | 29,953 | 5,390 | (4,323) | 31,020 |
| Liabilities | (5,042) | (275) | 4,323 | (994) |
| Net assets | 24,911 | 5,115 | – | 30,026 |
| Property and other investment £'000 |
Property Development £'000 |
Eliminations £'000 |
Six months 31 March 2023 (Unaudited) Total |
|
| Revenue (wholly in the UK) | 223 | 116 | – | 339 |
| Profit before taxation | 376 | 277 | – | 653 |
| Net operating assets | ||||
| Assets | 28,665 | 5,154 | (3,022) | 30,797 |
| Liabilities | (3,916) | (246) | 3,022 | (1,140) |
| Net assets | 24,749 | 4,908 | – | 29,657 |
| Property and other investment £'000 |
Property Development £'000 |
Eliminations £'000 |
Year September 2023 (Audited) Total £'000 |
|
| Rental income (wholly in the UK) | 436 | 226 | – | 662 |
| Property sales | – | – | – | – |
| Profit before taxation | 829 | 433 | – | 1,262 |
| Net operating assets | ||||
| Assets | 28,854 | 5,246 | (3,181) | 30,919 |
| Liabilities | (3,882) | (243) | 3,181 | (944) |
| Net assets | 24,972 | 5,003 | – | 29,975 |
"Eliminations" relate to inter segment transactions and balances which cannot be specifically allocated but are eliminated on consolidation.
32165 – 26 April 2024 11:18 am – shell
The operations of the Group are not seasonal.
for the six months ended 31 March 2024
The tax position for the six-month period is estimated on the basis of the anticipated tax rates applying for the full year.
The interim dividend of 6.5p per share will be paid on 27 June 2024 to shareholders on the register on 24 May 2024. Under accounting standards this dividend is not included in the condensed consolidated interim financial statements for the six months ended 31 March 2024.
Earnings per share has been calculated using the profit after tax for the period of £612,000 (March 2023: £530,000, year ended September 2023: £1,114,000) and the weighted average number of shares as follows:
| 31 March | 31 March | 30 September | |
|---|---|---|---|
| 2024 | 2023 | 2023 | |
| (Unaudited) | (Unaudited) | (Audited) | |
| Basic and diluted | 1,048,399 | 1,072,675 | 1,064,204 |
| Earnings per share (p) | 58.38 | 49.42 | 104.62 |
J Richard Wollenberg Chairman and chief executive
Karen L Chandler FCA Finance director
Nigel D Jamieson BSc, FCSI Independent non-executive director
SECRETARY Karen L Chandler FCA
First Choice Estates plc Derek M Joseph BCom, FCIS
56 Station Road Egham, TW20 9LF Telephone: 01784 437444 Fax: 01784 439157 E-mail: [email protected] Web: www.cardiff-property.com
56 Station Road Egham, TW20 9LF
MHA
STOCKBROKERS AND FINANCIAL ADVISERS Shore Capital
BANKERS HSBC Bank plc
SOLICITORS Blake Morgan LLP Charsley Harrison LLP
Neville Registrars Limited Neville House Steelpark Road Halesowen B62 8HD Telephone: 0121 585 1131
00022705
32165 – 26 April 2024 11:18 am – shell
| 024 | 25 Apr |
|---|---|
| 23 May | |
| 24 May | |
| 27 June | |
| 30 Septer | |
| Decembe | |
| C | -------- |
2024 25 Apr Interim results for 2024 announced 23 May Ex-dividend date for interim dividend 24 May Record date for interim dividend 27 June Interim dividend to be paid 30 September End of accounting year December Final results for 2024 announced
2025 January Annual General Meeting
56 Station Road, Egham Surrey TW20 9LF Tel: 01784 437444 Fax: 01784 439157 www.cardiff-property.com
Have a question? We'll get back to you promptly.