Interim / Quarterly Report • Jan 15, 2022
Interim / Quarterly Report
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CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 MARCH 2021
30558 – 30 April 2021 3:11 pm – Proof 4
Cardiff Property IR 2021.indd 2 30/04/2021 15:12:20
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 £31m, is primarily located to the west of London, close to Heathrow Airport and in Surrey and Berkshire.
THE CARDIFF PROPERTY plc www.cardiff-property.com Stock code: CDFF
DEAR SHAREHOLDER,
occupation and trading.
Covid-19.
vacated.
INTERIM MANAGEMENT REPORT
The Thames Valley property market continues to be affected by the strict but necessary Government measures imposed as a result of
Working from home and the closure of many retail outlets has led to a marked reduction in letting and investment activity. Office rental levels within the Thames Valley experienced a decline as a number of Landlords offered existing tenants concessionary terms. New lettings inevitably included incentives with shorter lease terms reflecting current uncertainty as to future
The Group's policy of meeting with tenants and where necessary agreeing deferment of rental, assisted many to remain in business and occupation. Business rates relief, furlough and VAT deferment measures provided much needed support to those retailers either unable to trade or having to deal with significant reductions in turnover. The Group, including Campmoss, received the majority of its rental income due at the half year, with only one small retail unit being
Excluding development properties by value, 44% of the Group's portfolio relates to the retail sector, 8% industrial premises, 15% residential and 33% offices. The Group's retail portfolio includes a number of food outlets and other essential businesses that continued to trade during the lockdown periods. The majority of business and office tenants continued trading with staff
During the current financial year, a number of retail and business unit leases have or are due to expire. It is encouraging to note that, the success of the vaccine programme and with the gradual easing of lockdown, these units have been re-let to existing or new tenants at similar rental levels. The number of enquiries received have been
www.cardiff-property.com
more than expected.
working from home.
| Six months | Six months | Year | |||
|---|---|---|---|---|---|
| 31 March | 31 March | 30 September | |||
| 2021 | 2020 | 2020 | |||
| (Unaudited) | (Unaudited) | (Audited) | |||
| Net assets | £'000 | 28,818 | 28,135 | 29,099 | |
| Net assets per share | £ | 24.45 | 23.03 | 24.36 | |
| Profit before tax | £'000 | 365 | 387 | 1,959 | |
| Earnings per share (basic and diluted) | pence | 25.96 | 24.90 | 148.20 | |
| Interim/total dividend proposed per share | pence | 5.0 | 4.8 | 17.6 | |
| Gearing | % | Nil | Nil | Nil |
30558 – 30 April 2021 3:11 pm – Proof 4 Cardiff Property IR 2021.indd 3 30/04/2021 15:12:20
THE CARDIFF PROPERTY plc
and in Surrey and Berkshire.
01 Interim Management Report
CONTENTS
HIGHLIGHTS:
09 Statement of Responsibility
13 Directors and Advisers 13 Financial Calendar
04 Condensed Consolidated Interim Income Statement
07 Condensed Consolidated Interim Statement of Cash Flows 08 Condensed Consolidated Interim Statement of Changes in Equity
10 Notes to the Condensed Consolidated Interim Financial Statements
06 Condensed Consolidated Interim Balance Sheet
05 Condensed Consolidated Interim Statement of Comprehensive Income and Expense
The Group, including Campmoss, specialises in property investment and development in the Thames Valley. The total portfolio under management, valued in excess of £31m, is
primarily located to the west of London, close to Heathrow Airport
Net assets £'000 28,818 28,135 29,099 Net assets per share £ 24.45 23.03 24.36 Profit before tax £'000 365 387 1,959 Earnings per share (basic and diluted) pence 25.96 24.90 148.20 Interim/total dividend proposed per share pence 5.0 4.8 17.6 Gearing % Nil Nil Nil
Six months 31 March 2021 (Unaudited)
Six months 31 March 2020 (Unaudited)
Year 30 September 2020 (Audited)
The Thames Valley property market continues to be affected by the strict but necessary Government measures imposed as a result of Covid-19.
Working from home and the closure of many retail outlets has led to a marked reduction in letting and investment activity. Office rental levels within the Thames Valley experienced a decline as a number of Landlords offered existing tenants concessionary terms. New lettings inevitably included incentives with shorter lease terms reflecting current uncertainty as to future occupation and trading.
The Group's policy of meeting with tenants and where necessary agreeing deferment of rental, assisted many to remain in business and occupation. Business rates relief, furlough and VAT deferment measures provided much needed support to those retailers either unable to trade or having to deal with significant reductions in turnover. The Group, including Campmoss, received the majority of its rental income due at the half year, with only one small retail unit being vacated.
Excluding development properties by value, 44% of the Group's portfolio relates to the retail sector, 8% industrial premises, 15% residential and 33% offices. The Group's retail portfolio includes a number of food outlets and other essential businesses that continued to trade during the lockdown periods. The majority of business and office tenants continued trading with staff working from home.
During the current financial year, a number of retail and business unit leases have or are due to expire. It is encouraging to note that, the success of the vaccine programme and with the gradual easing of lockdown, these units have been re-let to existing or new tenants at similar rental levels. The number of enquiries received have been more than expected.
Overall, I expect group rental income for the current year to be lower than last year with the eventual figure being influenced by the imposition of any further lockdowns.
The Thames Valley residential market showed signs of slowing down although at the half year all the Group's apartments were fully let on Annual Assured Tenancy Agreements with rents remaining similar to last year.
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For the six months ending 31 March 2021, profit before tax amounted to £0.37m (March 2020: £0.39m; September 2020: £1.96m). This figure includes an after-tax profit from Campmoss Property Company Limited ("Campmoss"), our 47.62% Joint Venture of £0.04m (March 2020 after tax loss £0.03m; September 2020 after tax profit £1.36m).
Revenue for the six months to 31 March 2021 represented by rental income, totalled £0.32m (March 2020: £0.34m; September 2020: £0.65m). The Group's share of revenue from Campmoss was £0.29m (March 2020: £0.32m; September 2020: £0.60m), represented by rental income of £0.29m (March 2020: £0.32m; September 2020: £0.60m). Rental income and sales figures for Campmoss are not included in Group revenue.
Net assets of the Group as at 31 March 2021 were £28.82m (March 2020: £28.14m; September 2020: £29.10m) equivalent to £24.45 per share (March 2020: £23.03; September 2020: £24.36). The Company's share of net assets in Campmoss included on the Group balance sheet amounted to £16.36m. (March 2020: £14.93m; September 2020: £16.32m). The directors have taken into account recent RICS guidance and whilst there is currently a greater level of uncertainty due to COVID-19 on balance, there are no material changes in the investment value of the Group's property portfolio as at 31 March 2021. The freehold investment properties held by Cardiff will be professionally valued at 30 September 2021.
During the six months to 31 March 2021 the company purchased for cancellation 22,750 Ordinary Shares (March 2020: 18,362 Ordinary Shares; September 2020: 45,694 Ordinary Shares). There have been no material events or material changes in assets liabilities or related party relationships since 30 September 2020.
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 does not require the same treatment in respect of the group's unquoted investments in Campmoss, 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, based on the value in the company's balance sheet at 31 March 2021 this would result in a tax liability of £3.11m (March 2020: £2.84m; September 2020: £3.10m) equivalent to £2.65 per share (March 2020: £2.29; September 2020 £2.60) calculated using a tax rate of 19% (March 2020: 19%; September 2020: 19%). This information is provided to shareholders as an additional, non-statutory, disclosure.
The directors have declared an interim dividend of 5.0p (interim March 2020: 4.8p; final September 2020: 12.8p) an increase of 4.2% which will be paid on 1 July 2021 to shareholders on the register at 28 May 2021.
The Group's freehold property portfolio, including those held by Campmoss, continues to be concentrated in the Thames Valley close to Heathrow Airport and to the west of London.
THE CARDIFF PROPERTY plc www.cardiff-property.com Stock code: CDFF
sold during the period.
& SUBSIDIARIES
Heritage Court, Egham, comprises four retail units all of which are let. The upper floor residential units were previously sold. The adjoining freehold office is occupied by the company and following extensive refurbishment work, a residential property, at 14 Runnymede Road, Egham was
CAMPMOSS PROPERTY COMPANY LIMITED
The Campmoss portfolio provides a range of office, retail and residential properties in Burnham,
As mentioned earlier, a number of retail tenants remained open during lockdown and it is encouraging that at the time of preparing this
At Britannia Wharf, Woking, the development of 52 high specification apartments is on budget and timetable. Completion is anticipated towards the end of the year and it is worth mentioning that just under 50% of the apartments are under offer at asking levels. The development is being undertaken through a joint venture with an established Surrey based developer.
At Market Street, Bracknell, four adjacent buildings known as 1-10 Market Street, Alston House, Westview and Gowring House comprise a mixture of ground and first floor retail units with residential on the upper floors at Gowring House and Alston House. The majority of apartments at Gowring House were previously sold and the five remaining together with 12 apartments on the upper floors at Alston House are all let on Assured Shorthold tenancies. Three of the first-floor retail units at Alston House are available for letting. As mentioned earlier the deferment of rent to a number of the retail tenants has allowed their
Bracknell, Maidenhead and Woking.
report all are now open for trading.
www.cardiff-property.com
businesses to continue.
Maidenhead Enterprise Centre, Maidenhead, comprises six individual business units totalling 14,000 sq. ft. and remains fully let on a mixture of short and medium term leases. Over the next 18 months a number of rent reviews and lease expiries will take place and it is encouraging to note that recent lettings have been completed at higher rental levels.
The Windsor Business Centre, Windsor, comprises four business units two of which are available for letting or freehold sale following the expiry of leases. The Business Centre is located close to the town centre and our agents are reporting a reasonable flow of enquiries. Planning permission to replace the existing building with an office scheme totalling 20,000 sq. ft. gross was granted last year and implementation will be subject to achieving a pre-letting.
The White House, Egham, comprises five ground floor retail units with air-conditioned offices on the upper floor. Following the expiry of leases, two of the retail units and part of the upper floor offices are available for letting.
At Cowbridge Road, Cardiff, a new short-term lease has been agreed with The Royal Mail, the current tenant. Following negotiations with a local Housing Association a residential planning application has been submitted with a decision targeted by the end of the financial year.
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INTERIM MANAGEMENT REPORT CONTINUED
THE INVESTMENT & DEVELOPMENT
The Windsor Business Centre, Windsor, comprises four business units two of which are available for letting or freehold sale following the expiry of leases. The Business Centre is located close to the town centre and our agents are reporting a reasonable flow of enquiries. Planning permission to replace the existing building with an office scheme totalling 20,000 sq. ft. gross was granted last year and implementation will be
subject to achieving a pre-letting.
are available for letting.
The White House, Egham, comprises five ground floor retail units with air-conditioned offices on the upper floor. Following the expiry of leases, two of the retail units and part of the upper floor offices
At Cowbridge Road, Cardiff, a new short-term lease has been agreed with The Royal Mail, the current tenant. Following negotiations with a local Housing Association a residential planning application has been submitted with a decision targeted by the end of the financial year.
The Group's freehold property portfolio, including those held by Campmoss, continues to be concentrated in the Thames Valley close to Heathrow Airport and to the west of London. Maidenhead Enterprise Centre, Maidenhead, comprises six individual business units totalling 14,000 sq. ft. and remains fully let on a mixture of short and medium term leases. Over the next 18 months a number of rent reviews and lease expiries will take place and it is encouraging to note that recent lettings have been completed at
PORTFOLIO
higher rental levels.
Heritage Court, Egham, comprises four retail units all of which are let. The upper floor residential units were previously sold. The adjoining freehold office is occupied by the company and following extensive refurbishment work, a residential property, at 14 Runnymede Road, Egham was sold during the period.
The Campmoss portfolio provides a range of office, retail and residential properties in Burnham, Bracknell, Maidenhead and Woking.
As mentioned earlier, a number of retail tenants remained open during lockdown and it is encouraging that at the time of preparing this report all are now open for trading.
At Britannia Wharf, Woking, the development of 52 high specification apartments is on budget and timetable. Completion is anticipated towards the end of the year and it is worth mentioning that just under 50% of the apartments are under offer at asking levels. The development is being undertaken through a joint venture with an established Surrey based developer.
At Market Street, Bracknell, four adjacent buildings known as 1-10 Market Street, Alston House, Westview and Gowring House comprise a mixture of ground and first floor retail units with residential on the upper floors at Gowring House and Alston House. The majority of apartments at Gowring House were previously sold and the five remaining together with 12 apartments on the upper floors at Alston House are all let on Assured Shorthold tenancies. Three of the first-floor retail units at Alston House are available for letting. As mentioned earlier the deferment of rent to a number of the retail tenants has allowed their businesses to continue.
At Highway House, Maidenhead an updated planning application for a 48,000 sq. ft. gross new Grade A office scheme is being prepared and expected to be submitted shortly. Agents are seeking a partial pre-letting. The site is let on a short-term basis for car parking.
At The Priory, Stomp Road, Burnham, the 26,000 sq. ft. building comprises 17,000 sq. ft. new office space over three floors and an adjoining Business Centre occupying 9,000 sq. ft. Part of the offices and Business Centre have been let on short term leases pending the outcome of a planning application for a new care home.
In these unprecedented times management of the Group's portfolio has been particularly challenging and I would take this opportunity of thanking the team and our Joint Venture partner, Campmoss for their 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.
The Group has successfully navigated the recent challenges in the property market and is well positioned to return to its previous growth strategy, market conditions permitting.
A return to office working and visiting retail outlets will take time to recover and in some locations, there may be permanent changes. There is no doubt that the property market will need to adjust to these new realities.
I look forward to reporting further at the year end.
Chairman 30 April 2021
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| Six months 31 March 2021 (Unaudited) £'000 |
Six months 31 March 2020 (Unaudited) £'000 |
Year 30 September 2020 (Audited) £'000 |
|
|---|---|---|---|
| Revenue | 322 | 388 | 650 |
| Cost of sales | (48) | (45) | (115) |
| Gross profit | 274 | 293 | 535 |
| Administrative expenses | (258) | (275) | (497) |
| Other operating income | 280 | 290 | 579 |
| Operating profit before gains on investment properties and other investments |
296 | 308 | 617 |
| Fair value movement on revaluation of investment properties |
– | – | (148) |
| Operating profit | 296 | 308 | 469 |
| Financial income | 28 | 34 | 54 |
| Profit on sale of investment | – | 74 | 74 |
| Share of results of Joint Venture | 41 | (29) | 1,362 |
| Profit before taxation | 365 | 387 | 1,959 |
| Taxation | (57) | (78) | (148) |
| Profit for the period attributable to equity holders | 308 | 309 | 1,811 |
| Earnings per share on profit for the period - pence | |||
| Basic and diluted | 26.0 | 24.9 | 148.2 |
| Dividends | |||
| Final 2020 paid 12.8p (2019: 12.5p) | 152 | 155 | 155 |
| Interim 2020 paid 4.8p | – | – | 58 |
| 152 | 155 | 213 | |
| Final 2020 proposed 12.8p | – | – | 153 |
| Interim 2021 proposed 5.0p (2020: 4.8p) | 59 | 59 | – |
| 59 | 59 | 153 |
THE CARDIFF PROPERTY plc www.cardiff-property.com Stock code: CDFF
profit or loss
profit or loss
for the six months ended 31 March 2021
Items that cannot be reclassified subsequently to
Items that may be reclassified subsequently to
Total comprehensive income and expense for the period attributable to equity holders
OF COMPREHENSIVE INCOME AND EXPENSE
Six months 31 March 2021 (Unaudited) £'000
Profit for the financial period 308 309 1,811
Revaluation of investments (19) (52) (55)
Revaluation of other properties – – (14)
of the parent company 289 257 1,742
Six months 31 March 2020 (Unaudited) £'000
Year
30 September 2020 (Audited) £'000
www.cardiff-property.com
These results relate entirely to continuing operations. There were no acquisitions or disposals during these periods.
30558 – 30 April 2021 3:11 pm – Proof 4 Cardiff Property IR 2021.indd 4 30/04/2021 15:12:21
CONDENSED CONSOLIDATED INTERIM
Operating profit before gains on investment
Fair value movement on revaluation of investment
Earnings per share on profit for the period - pence
Dividends
these periods.
Six months 31 March 2021 (Unaudited) £'000
Revenue 322 388 650 Cost of sales (48) (45) (115) Gross profit 274 293 535 Administrative expenses (258) (275) (497) Other operating income 280 290 579
properties and other investments 296 308 617
properties – – (148) Operating profit 296 308 469 Financial income 28 34 54 Profit on sale of investment – 74 74 Share of results of Joint Venture 41 (29) 1,362 Profit before taxation 365 387 1,959 Taxation (57) (78) (148) Profit for the period attributable to equity holders 308 309 1,811
Basic and diluted 26.0 24.9 148.2
Final 2020 paid 12.8p (2019: 12.5p) 152 155 155 Interim 2020 paid 4.8p – – 58
Final 2020 proposed 12.8p – – 153 Interim 2021 proposed 5.0p (2020: 4.8p) 59 59 –
These results relate entirely to continuing operations. There were no acquisitions or disposals during
Six months 31 March 2020 (Unaudited) £'000
152 155 213
59 59 153
Year
30 September 2020 (Audited) £'000
for the six months ended 31 March 2021
| Six months | Six months | Year | |
|---|---|---|---|
| 31 March | 31 March | 30 September | |
| 2021 | 2020 | 2020 | |
| (Unaudited) | (Unaudited) | (Audited) | |
| £'000 | £'000 | £'000 | |
| Profit for the financial period | 308 | 309 | 1,811 |
| Items that cannot be reclassified subsequently to | |||
| profit or loss | |||
| Revaluation of investments | (19) | (52) | (55) |
| Items that may be reclassified subsequently to | |||
| profit or loss | |||
| Revaluation of other properties | – | – | (14) |
| Total comprehensive income and expense for | |||
| the period attributable to equity holders | |||
| of the parent company | 289 | 257 | 1,742 |
30558 – 30 April 2021 3:11 pm – Proof 4 Cardiff Property IR 2021.indd 5 30/04/2021 15:12:21
THE CARDIFF PROPERTY plc www.cardiff-property.com Stock code: CDFF
Cash flows from operating activities
Fair value movement on revaluation on of
Cash flows from investing activities
Cash flows from financing activities
Cash flows from operations before changes in
Acquisition of investments, and property, plant and
Adjustments for:
OF CASH FLOWS for the six months ended 31 March 2021
Six months 31 March 2021 (Unaudited) £'000
Profit for the period 308 309 1,811
Depreciation – 2 3 Financial income (28) (34) (54) Share of loss/(profit) of Joint Venture (41) 29 (1,362) Profit on the sale of investments – (74) (74)
investment properties – – 148 Taxation 57 78 148
working capital 296 310 620 Acquisition of inventory and work in progress – (8) (14) Decrease/(increase) in trade and other receivables 4 (44) (98) Increase)/(decrease) in trade and other payables 106 (26) 1 Cash generated from operations 406 232 509 Tax paid 97 (97) (228) Net cash flows from operating activities 503 135 281
Interest received 22 34 61 Dividend from Joint Venture – 643 643
equipment (19) (5) (13) Acquisition of investments (169) (100) (100) Proceeds from the sale of investments – 78 78 Proceeds from sale of investment property 462 – – Decrease in financial assets 694 370 1,336 Net cash flows from investing activities 990 1,020 2,005
Purchase of own shares (418) (199) (773) Dividends paid (152) (155) (213) Net cash flows from financing activities (570) (354) (986) Net increase in cash and cash equivalents 923 801 1,300 Cash and cash equivalents at beginning of period 3,773 2,473 2,473 Cash and cash equivalents at end of period 4,696 3,274 3,773
Six months 31 March 2020 (Unaudited) £'000
Year
30 September 2020 (Audited) £'000
www.cardiff-property.com
at 31 March 2021 CONDENSED CONSOLIDATED INTERIM STATEMENT
| 31 March | 31 March | 30 September | ||
|---|---|---|---|---|
| 2021 | 2020 | 2020 | ||
| (Unaudited) £'000 |
(Unaudited) £'000 |
(Audited) £'000 |
||
| Non-current assets | ||||
| Freehold investment properties | 5,410 | 6,000 | 5,857 | |
| Property, plant and equipment | 230 | 282 | 228 | |
| Investment in Joint Venture | 16,364 | 14,932 | 16,323 | |
| Other financial assets | 1,076 | 886 | 925 | |
| Total non-current assets | 23,080 | 22,100 | 23,333 | |
| Current assets | ||||
| Stock and work in progress | 688 | 683 | 688 | |
| Trade and other receivables | 234 | 183 | 238 | |
| Held to maturity cash deposits | 1,054 | 2,714 | 1,748 | |
| Cash and cash equivalents | 4,696 | 3,274 | 3,773 | |
| Total current assets | 6,672 | 6,854 | 6,447 | |
| Total assets | 29,752 | 28,954 | 29,780 | |
| Current liabilities | ||||
| Trade and other payables | (635) | (613) | (529) | |
| Corporation tax | (236) | (111) | (50) | |
| Total current liabilities | (871) (724) |
(579) | ||
| Non-current liabilities | ||||
| Deferred tax liability | (63) | (95) | (102) | |
| Total non-current liabilities | (63) | (95) | (102) | |
| Total liabilities | (934) | (819) | (681) | |
| Net assets | 28,818 | 28,135 | 29,099 | |
| Equity | ||||
| Called up share capital | 234 | 244 | 239 | |
| Share premium account | 5,076 5,076 |
5,076 | ||
| Other reserves | 2,461 | 2,487 | 2,475 | |
| Investment property revaluation reserve | 1,273 | 1,814 | 3,139 | |
| Retained earnings | 19,774 | 18,514 | 18,170 | |
| Shareholders' funds attributable to equity holders | 28,818 | 28,135 | 29,099 | |
| Net assets per share | £24.45 | £23.03 | £24.36 |
30558 – 30 April 2021 3:11 pm – Proof 4 Cardiff Property IR 2021.indd 6 30/04/2021 15:12:21
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
Freehold investment properties 5,410 6,000 5,857 Property, plant and equipment 230 282 228 Investment in Joint Venture 16,364 14,932 16,323 Other financial assets 1,076 886 925 Total non-current assets 23,080 22,100 23,333
Stock and work in progress 688 683 688 Trade and other receivables 234 183 238 Held to maturity cash deposits 1,054 2,714 1,748 Cash and cash equivalents 4,696 3,274 3,773 Total current assets 6,672 6,854 6,447 Total assets 29,752 28,954 29,780
Trade and other payables (635) (613) (529) Corporation tax (236) (111) (50) Total current liabilities (871) (724) (579)
Deferred tax liability (63) (95) (102) Total non-current liabilities (63) (95) (102) Total liabilities (934) (819) (681) Net assets 28,818 28,135 29,099
Called up share capital 234 244 239 Share premium account 5,076 5,076 5,076 Other reserves 2,461 2,487 2,475 Investment property revaluation reserve 1,273 1,814 3,139 Retained earnings 19,774 18,514 18,170 Shareholders' funds attributable to equity holders 28,818 28,135 29,099 Net assets per share £24.45 £23.03 £24.36
Non-current assets
Current assets
Current liabilities
Non-current liabilities
Equity
31 March 2021 (Unaudited) £'000
31 March 2020 (Unaudited) £'000
30 September 2020 (Audited) £'000
OF CASH FLOWS for the six months ended 31 March 2021
| Six months 31 March |
Year 30 September |
||
|---|---|---|---|
| 2021 (Unaudited) £'000 |
2020 (Unaudited) £'000 |
2020 (Audited) £'000 |
|
| Cash flows from operating activities | |||
| Profit for the period | 308 | 309 | 1,811 |
| Adjustments for: | |||
| Depreciation | – | 2 | 3 |
| Financial income | (28) | (34) | (54) |
| Share of loss/(profit) of Joint Venture | (41) | 29 | (1,362) |
| Profit on the sale of investments | – | (74) | (74) |
| Fair value movement on revaluation on of investment properties |
– | – | 148 |
| Taxation | 57 | 78 | 148 |
| Cash flows from operations before changes in | |||
| working capital | 296 | 310 | 620 |
| Acquisition of inventory and work in progress | – | (8) | (14) |
| Decrease/(increase) in trade and other receivables | 4 | (44) | (98) |
| Increase)/(decrease) in trade and other payables | 106 | (26) | 1 |
| Cash generated from operations | 406 | 232 | 509 |
| Tax paid | 97 | (97) | (228) |
| Net cash flows from operating activities | 503 | 135 | 281 |
| Cash flows from investing activities | |||
| Interest received | 22 | 34 | 61 |
| Dividend from Joint Venture | – | 643 | 643 |
| Acquisition of investments, and property, plant and | |||
| equipment | (19) | (5) | (13) |
| Acquisition of investments | (169) | (100) | (100) |
| Proceeds from the sale of investments | – | 78 | 78 |
| Proceeds from sale of investment property | 462 | – | – |
| Decrease in financial assets | 694 | 370 | 1,336 |
| Net cash flows from investing activities | 990 | 1,020 | 2,005 |
| Cash flows from financing activities | |||
| Purchase of own shares | (418) | (199) | (773) |
| Dividends paid | (152) | (155) | (213) |
| Net cash flows from financing activities | (570) | (354) | (986) |
| Net increase in cash and cash equivalents | 923 | 801 | 1,300 |
| Cash and cash equivalents at beginning of period | 3,773 | 2,473 | 2,473 |
| Cash and cash equivalents at end of period | 4,696 | 3,274 | 3,773 |
30558 – 30 April 2021 3:11 pm – Proof 4 Cardiff Property IR 2021.indd 7 30/04/2021 15:12:22
THE CARDIFF PROPERTY plc www.cardiff-property.com Stock code: CDFF
for the six months ended 31 March 2021
J Richard Wollenberg, Chairman Karen L Chandler, Finance director
30 April 2021
with the requirements of The Companies Act 2006;
Nigel D Jamieson, Independent non-executive director
The directors are responsible for preparing the condensed consolidated interim financial statements for the six months ended 31 March 2021 and they confirm, to the best of their knowledge and belief, that: • the condensed consolidated set of interim financial statements for the six months ended 31 March 2021 have been prepared in accordance with IAS 34 – Interim Financial Reporting and in accordance
a. DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of interim financial statements and a description of the principal risks and
b. DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the group during that period; and any changes in the
• the interim management report includes a fair review of the information required by:
related party transactions described in the last annual report that could do so.
uncertainties for the remaining six months of the year; and
www.cardiff-property.com
| Investment | ||||||
|---|---|---|---|---|---|---|
| Share | property | |||||
| Share | premium | Other | revaluation | Retained | Total | |
| capital £'000 |
account £'000 |
reserves £'000 |
reserve £'000 |
earnings £'000 |
equity £'000 |
|
| At 1 October 2019 | 248 | 5,076 | 2,535 | 1,814 | 18,670 | 28,343 |
| Profit for the period | – | – | – | – | 309 | 309 |
| Other comprehensive income | ||||||
| – revaluation of investments | – | – | (52) | – | – | (52) |
| Transactions with equity holders | ||||||
| Dividends | – | – | – | – | (155) | (155) |
| Purchase of own shares | (4) | – | 4 | – | (310) | (310) |
| Total transactions with equity holders | (4) | – | 4 | – | (465) | (465) |
| At 31 March 2020 | 244 | 5,076 | 2,487 | 1,814 | 18,514 | 28,135 |
| Profit for the period | – | – | – | – | 1,502 | 1,502 |
| Other comprehensive income | ||||||
| – revaluation of investments | – | – | 38 | – | – | 38 |
| Revaluation of other property | – | – | (55) | – | – | (55) |
| Transactions with equity holders | ||||||
| Dividends | – | – | – | – | (58) | (58) |
| Purchase of own shares | (5) | – | 5 | – | (463) | (463) |
| Total transactions with equity holders | (5) | – | 5 | – | (521) | (521) |
| Transfer on revaluation of investment | ||||||
| properties - Cardiff | – | – | – | (148) | 148 | – |
| Transfer on revaluation of investment | ||||||
| properties - Campmoss | – | – | – | 1,473 | (1,473) | – |
| At 30 September 2020 | 239 | 5,076 | 2,475 | 3,139 | 18,170 | 29,099 |
| Profit for the period | – | – | – | – | 308 | 308 |
| Other comprehensive income | ||||||
| – revaluation of investments | – | – | (19) | – | – | (19) |
| Transactions with equity holders | ||||||
| Dividends | – | – | – | – | (152) | (152) |
| Purchase of own shares | (5) | – | 5 | – | (418) | (418) |
| Total transactions with equity holders | (5) | – | 5 | – | (570) | (570) |
| Transfer on revaluation of investment | ||||||
| properties - Cardiff | – | – | – | (266) | 266 | – |
| Transfer on revaluation of investment | ||||||
| properties - Campmoss | – | – | – | (1,600) | 1,600 | – |
| At 31 March 2021 | 234 | 5,076 | 2,461 | 1,273 | 19,774 | 28,818 |
30558 – 30 April 2021 3:11 pm – Proof 4 Cardiff Property IR 2021.indd 8 30/04/2021 15:12:22
CONDENSED CONSOLIDATED INTERIM STATEMENT
Share capital £'000
Other comprehensive income
Transactions with equity holders
Other comprehensive income
Transactions with equity holders
Transfer on revaluation of investment
Transfer on revaluation of investment
Other comprehensive income
Transactions with equity holders
Transfer on revaluation of investment
Transfer on revaluation of investment
Share premium account £'000
At 1 October 2019 248 5,076 2,535 1,814 18,670 28,343 Profit for the period – – – – 309 309
– revaluation of investments – – (52) – – (52)
Dividends – – – – (155) (155) Purchase of own shares (4) – 4 – (310) (310) Total transactions with equity holders (4) – 4 – (465) (465) At 31 March 2020 244 5,076 2,487 1,814 18,514 28,135 Profit for the period – – – – 1,502 1,502
– revaluation of investments – – 38 – – 38 Revaluation of other property – – (55) – – (55)
Dividends – – – – (58) (58) Purchase of own shares (5) – 5 – (463) (463) Total transactions with equity holders (5) – 5 – (521) (521)
properties - Cardiff – – – (148) 148 –
properties - Campmoss – – – 1,473 (1,473) – At 30 September 2020 239 5,076 2,475 3,139 18,170 29,099 Profit for the period – – – – 308 308
– revaluation of investments – – (19) – – (19)
Dividends – – – – (152) (152) Purchase of own shares (5) – 5 – (418) (418) Total transactions with equity holders (5) – 5 – (570) (570)
properties - Cardiff – – – (266) 266 –
properties - Campmoss – – – (1,600) 1,600 – At 31 March 2021 234 5,076 2,461 1,273 19,774 28,818
Other reserves £'000
Investment property revaluation reserve £'000
Retained earnings £'000
Total equity £'000
for the six months ended 31 March 2021
The directors are responsible for preparing the condensed consolidated interim financial statements for the six months ended 31 March 2021 and they confirm, to the best of their knowledge and belief, that:
30558 – 30 April 2021 3:11 pm – Proof 4 Cardiff Property IR 2021.indd 9 30/04/2021 15:12:22
J Richard Wollenberg, Chairman Karen L Chandler, Finance director Nigel D Jamieson, Independent non-executive director
30 April 2021
for the six months ended 31 March 2021
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 CARDIFF PROPERTY plc www.cardiff-property.com Stock code: CDFF
Going concern
2. SEGMENTAL ANALYSIS
segment are set out below:
Net operating assets
Net operating assets
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
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 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
Property and other investment £'000
Property and other investment £'000
Rental income (wholly UK) 230 92 – 322 Profit before taxation 260 105 – 365
Assets 26,913 4,808 (1,969) 29,752 Liabilities (2,648) (255) 1,969 (934) Net assets 24,265 4,553 – 28,818
Rental income (wholly UK) 245 93 – 338 Profit before taxation 202 185 – 387
Assets 26,385 4,670 (2,101) 28,954 Liabilities (2,631) (289) 2,101 819 Net assets 23,754 4,381 – 28,135
Property Development £'000
Property Development £'000
Eliminations £'000
Eliminations £'000
Six months 31 march 2021 (Unaudited) Total £'000
Six months 31 march 2020 Total £'000
time value of money and, where appropriate, the risks specific to the liability.
the going concern basis in preparing these interim financial statements.
www.cardiff-property.com
The annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRSs) in conformity with the requirements 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 2020.
The comparative figures for the financial year ended 30 September 2020 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 2021.
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.
30558 – 30 April 2021 3:11 pm – Proof 4 Cardiff Property IR 2021.indd 10 30/04/2021 15:12:22
NOTES TO THE CONDENSED CONSOLIDATED
The condensed set of financial statements are unaudited.
statements for the year ended 30 September 2020.
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 annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRSs) in conformity with the requirements 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
The comparative figures for the financial year ended 30 September 2020 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
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 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 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
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
assets, in classifying properties and in the calculating of provisions.
INTERIM FINANCIAL STATEMENTS
for the six months ended 31 March 2021
1. BASIS OF PREPARATION
Companies Act 2006. Accounting policies
estimates.
the year ended 30 September 2021. Use of estimates and judgement
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 2021 (Unaudited) Total £'000 |
|
|---|---|---|---|---|
| Rental income (wholly UK) | 230 | 92 | – | 322 |
| Profit before taxation | 260 | 105 | – | 365 |
| Net operating assets | ||||
| Assets | 26,913 | 4,808 | (1,969) | 29,752 |
| Liabilities | (2,648) | (255) | 1,969 | (934) |
| Net assets | 24,265 | 4,553 | – | 28,818 |
| Property | Six months | |||
|---|---|---|---|---|
| and other | Property | 31 march 2020 | ||
| investment | Development | Eliminations | Total | |
| £'000 | £'000 | £'000 | £'000 | |
| Rental income (wholly UK) | 245 | 93 | – | 338 |
| Profit before taxation | 202 | 185 | – | 387 |
| Net operating assets | ||||
| Assets | 26,385 | 4,670 | (2,101) | 28,954 |
| Liabilities | (2,631) | (289) | 2,101 | 819 |
| Net assets | 23,754 | 4,381 | – | 28,135 |
30558 – 30 April 2021 3:11 pm – Proof 4 Cardiff Property IR 2021.indd 11 30/04/2021 15:12:22
for the six months ended 31 March 2021
| Year | ||||
|---|---|---|---|---|
| September | ||||
| Property | 2020 | |||
| and other | Property | (Audited) | ||
| investment | Development | Eliminations | Total | |
| £'000 | £'000 | £'000 | £'000 | |
| Rental income (wholly UK) | 468 | 182 | – | 650 |
| Profit before taxation | 1,686 | 273 | – | 1,959 |
| Net operating assets | ||||
| Assets | 26,974 | 4,718 | (1,912) | 29,780 |
| Liabilities | (2,329) | (264) | 1,912 | (681) |
| Net assets | 24,645 | 4,454 | – | 29,099 |
THE CARDIFF PROPERTY plc www.cardiff-property.com Stock code: CDFF
DIRECTORS
SECRETARY
HEAD OFFICE 56 Station Road Egham, TW20 9LF Telephone: 01784 437444 Fax: 01784 439157
REGISTERED OFFICE 56 Station Road Egham, TW20 9LF
J Richard Wollenberg Chairman and chief executive
Karen L Chandler FCA Finance director
Karen L Chandler FCA
Nigel D Jamieson BSc, FCSI Independent non-executive director
NON-EXECUTIVE DIRECTOR OF WHOLLY OWNED SUBSIDIARY
First Choice Estates plc Derek M Joseph BCom, FCIS
DIRECTORS AND ADVISERS
AUDITOR
PKF Littlejohn LLP
Shore Capital
BANKERS HSBC Bank plc SOLICITORS Blake Morgan LLP Charsley Harrison LLP
STOCKBROKERS AND FINANCIAL ADVISERS
REGISTRAR AND TRANSFER OFFICE
Neville Registrars Limited
Telephone: 0121 585 1131 REGISTERED NUMBER
Neville House Steelpark Road Halesowen B62 8HD
00022705
27 May Ex-dividend date for interim dividend 28 May Record date for interim dividend 1 July Interim dividend to be paid 30 September End of accounting year December Final results for 2021 announced
February Final dividend to be paid
2021 4 May Interim results for 2021 announced
2022 January Annual General Meeting
www.cardiff-property.com
FINANCIAL CALENDAR
E-mail: [email protected] Web: www.cardiff-property.com
"Eliminations" relate to inter segment transactions and balances which cannot be specifically allocated but are eliminated on consolidation.
The operations of the Group are not seasonal.
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 5.0p per share will be paid on 1 July 2021 to shareholders on the register on 28 May 2021. Under accounting standards this dividend is not included in the condensed consolidated interim financial statements for the six months ended 31 March 2021.
Earnings per share has been calculated using the profit after tax for the period of £308,000 (March 2020: £309,000; September 2020: £1,811,000) and the weighted average number of shares as follows:
| Weighted average number of shares | |||
|---|---|---|---|
| 31 March | 31 March | 30 September | |
| 2021 | 2020 | 2020 | |
| (Unaudited) | (Unaudited) | (Audited) | |
| Basic and diluted | 1,188,434 | 1,238,595 | 1,221,929 |
30558 – 30 April 2021 3:11 pm – Proof 4 Cardiff Property IR 2021.indd 12 30/04/2021 15:12:22
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS CONTINUED
Property and other investment £'000
Rental income (wholly UK) 468 182 – 650 Profit before taxation 1,686 273 – 1,959
Assets 26,974 4,718 (1,912) 29,780 Liabilities (2,329) (264) 1,912 (681) Net assets 24,645 4,454 – 29,099 "Eliminations" relate to inter segment transactions and balances which cannot be specifically
The tax position for the six-month period is estimated on the basis of the anticipated tax rates
The interim dividend of 5.0p per share will be paid on 1 July 2021 to shareholders on the register on 28 May 2021. Under accounting standards this dividend is not included in the condensed consolidated interim financial statements for the six months ended 31 March 2021.
Basic and diluted 1,188,434 1,238,595 1,221,929
Earnings per share has been calculated using the profit after tax for the period of £308,000 (March 2020: £309,000; September 2020: £1,811,000) and the weighted average number of
Property Development £'000
Eliminations £'000
Weighted average number of shares
31 March 2020 (Unaudited)
30 September 2020 (Audited)
31 March 2021 (Unaudited)
Year September 2020 (Audited) Total £'000
for the six months ended 31 March 2021
2. SEGMENTAL ANALYSIS CONTINUED
allocated but are eliminated on consolidation. The operations of the Group are not seasonal.
Net operating assets
applying for the full year.
5. EARNINGS PER SHARE
shares as follows:
3. TAXATION
4. DIVIDENDS
J Richard Wollenberg Chairman and chief executive
Karen L Chandler FCA Finance director
Nigel D Jamieson BSc, FCSI Independent non-executive director
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
| 2021 | 4 May | Interim results for 2021 announced |
|---|---|---|
| 27 May | Ex-dividend date for interim dividend | |
| 28 May | Record date for interim dividend | |
| 1 July | Interim dividend to be paid | |
| 30 September | End of accounting year | |
| December | Final results for 2021 announced | |
| 2022 | January | Annual General Meeting |
| February | Final dividend to be paid |
PKF Littlejohn LLP
Shore Capital
BANKERS HSBC Bank plc
Blake Morgan LLP Charsley Harrison LLP
Neville Registrars Limited Neville House Steelpark Road Halesowen B62 8HD Telephone: 0121 585 1131
00022705
30558 – 30 April 2021 3:11 pm – Proof 4 Cardiff Property IR 2021.indd 13 30/04/2021 15:12:22
56 Station Road, Egham Surrey TW20 9LF Tel: 01784 437444 Fax: 01784 439157 www.cardiff-property.com
30558 – 30 April 2021 3:11 pm – Proof 4
Cardiff Property IR 2021.indd 1 30/04/2021 15:12:22
www.cardiff-property.com
THE CARDIFF PROPERTY plc
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 MARCH 2021
Stock code: CDFF
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