CARDIFF PROPERTY PLC

Annual Report • Nov 28, 2024

National Storage Mechanism | Additional information

RNS Number : 9318N

Cardiff Property PLC

28 November 2024

THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY

AND ITS SUBSIDIARIES

LEI: 213800GE3FA4C52C1N05

FOR RELEASE                           7.00 AM                                    28 November 2024

THE CARDIFF PROPERTY PLC

(The Group, including Campmoss, specialises in property investment and development in the Thames Valley. The total portfolio including the jointly controlled Campmoss investment and development portfolio, valued in excess of £22m, is primarily located to the west of London, close to Heathrow Airport and in Surrey and Berkshire.)

PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

Highlights:

		2024	2023
Net Assets	£'000	30,423	29,975
Net Assets Per Share	£	29.31	28.44
Profit Before Tax	£'000	1,385	1,262
Earnings Per Share - Basic and diluted	pence	102.75	104.62
Dividend Per Share	pence	23.5	22.0
Gearing	%	Nil	Nil

Richard Wollenberg, Chairman, commented:

" During the year activity in the Thames Valley commercial property market has continued to show some signs of recovery albeit at a slow pace.

The Group including Campmoss owns a retail portfolio primarily located in Bracknell (Berkshire), and Egham (Surrey), which has shown resilience with minimal turnover of tenants, the majority having traded for a number of years. Lease renewals have been agreed at existing levels whilst the Group has benefitted from previously agreed fixed annual rental increases.

Commercial property investment yields have remained similar to last year and it is encouraging to note that the market has seen a number of investment sales recently completed without any further decline in values. Tenant enquiries have increased with recent lettings at our office property in Egham Surrey at levels including a small increase in rental levels ."

For further information:

The Cardiff Property plc	Richard Wollenberg		01784 437444
Shore Capital	Patrick Castle	020 7468 7923

THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY

AND ITS SUBSIDIARIES

PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

Chairman's Statement

Dear Shareholder,

During the year activity in the Thames Valley commercial property market has continued to show some signs of recovery albeit at a slow pace.

The Group including Campmoss owns a retail portfolio primarily located in Bracknell (Berkshire), and Egham (Surrey), which has shown resilience with minimal turnover of tenants, the majority having traded for a number of years. Lease renewals have been agreed at existing levels whilst the Group has benefitted from previously agreed fixed annual rental increases.

Commercial property investment yields have remained similar to last year and it is encouraging to note that the market has seen a number of investment sales recently completed without any further decline in values. Tenant enquiries have increased with recent lettings at our office property in Egham Surrey at levels including a small increase in rental levels.

All business units at the Maidenhead Enterprise Centre, Maidenhead are now occupied with two new medium-term lettings agreed with slightly increased rentals.

The Thames Valley residential market remains firm with all leasehold apartments held by the Group let on Assured Shorthold Tenancy Agreements. Renewals or new lettings have achieved a marginal rental increase.

Detailed negotiations in respect of the Group's planning applications at The Priory, Burnham, Highway House, Maidenhead and Tangley Place, Guildford, continued throughout the year. As mentioned last year planning costs continue to spiral as a result of additional reports being required and subsequent delays. The planning process has become immersed in paperwork and must be simplified if new development is to take place. To date there has been no obvious impact from the new government's desire to enhance the system.

FINANCIAL

For the year to 30 September 2024 the Group profit before tax was £1.4m (2023: £1.3m). This includes a negative revaluation of £0.02m (2023: £0.3m). Our share of profit after tax in Campmoss and its subsidiary amounted to £0.14m (2023: £0.53m), with the reduction primarily due to negative property revaluation of £0.12m (2023: positive revaluation £0.35m). The Company received a dividend of £1.0m (2023: £2.0m) from its investment in Campmoss. In October 2024 Campmoss declared a further dividend of £3.15m of which the Company will receive £1.5m.

Revenue for the year which represented gross rental income, excluding Campmoss, totalled £0.7m (2023: £0.7m).

The profit after tax attributable to shareholders for the financial year was £1.07m (2023: £1.11m) and the earnings per share was 102.76p (2023: 104.62p).

At the year-end, the Company's commercial portfolio was valued by Kempton Carr Croft at a total of £5.63m (2023: £5.64m) this valuation excludes the Company's freehold office property which was also valued by Kempton Carr Croft and is included in the balance sheet at valuation and classified as property, plant and equipment. The marginal decline in capital values is due to market uncertainty around the continuing impact of higher interest rates.

Property when completed and retained for re-sale is held as inventory at the lower of cost or net realisable value. At the year-end this related to commercial property at The Windsor Business Centre owned by First Choice Estates plc, the Company's fully owned subsidiary and residential apartments held by Campmoss Developments Limited.

The Group's total property portfolio, including the jointly controlled Campmoss group, was valued at £22.9m (2023: £22.9m).

The Company's share of the net assets of Campmoss group was £11.42m (2023: £12.28m). The reduction in value is due to dividends paid by Campmoss of £2.15m of which £1.0m was paid to Cardiff (2023: £2.0m).

The Group's total net assets as at the year-end were £30.42m (2023: £29.98m) equivalent to £29.31 per share (2023: £28.44) an increase of 3.1% over the year (2023: 3.2%). The Group, including Campmoss, has adequate financial facilities and resources to complete works in progress. Cash balances are held on instant or short-term deposit. At the year-end, the Company had nil gearing (2023: nil).

During the year the Company purchased and cancelled 16,034 (2023: 27,977) ordinary shares at a total cost of £0.37m (2023: £0.68m). The Company may hold in treasury any of its own shares purchased. This gives the Company the ability to reissue treasury shares and provides greater flexibility in the management of its capital base. At the year end the Company held nil (2023: nil) shares in treasury. Any shares purchased by the Company not held in treasury will be cancelled and the number of shares in issue reduced accordingly.

The Company proposes to continue its policy of purchasing its own shares, whether to be held in treasury or to be cancelled, and a resolution renewing the directors' authority will be placed before the forthcoming Annual General Meeting to be held on 16 January 2025. This authority will only be exercised in circumstances where the Directors regard such purchases to be in the best interests of shareholders as a whole. Full details of the AGM are available on the Company's website www.cardiff-property.com .

IFRS accounting requires that deferred tax is recognised on the difference between the cost of properties including applicable indexation, and quoted investments and their current market value. However, IFRS accounting does not require the same treatment in respect of the Group's unquoted investment in Campmoss, our 47.62% owned Joint Venture, which represents a substantial part of the Company's net assets. Whilst provision is made in the Campmoss accounts for deferred tax should the shares in Campmoss be disposed of, for indicative purposes only and based on the value in the Company's balance sheet at the year-end this would result in a tax liability of £2.86m (2023: £3.07m) equivalent to £2.75 (2023: £2.91) per share calculated using a tax rate of 25% (2023: 25%). This information is provided to shareholders as an additional non-statutory disclosure.

DIVIDEND

The Directors recommend a final dividend of 17.0p per share (2023: 16.0p) making a total dividend for the year of 23.5p (2023: 22.0p), an increase of 6.8%. The final dividend will be paid on 31 January 2025 to shareholders on the register as at 18 January 2025.

THE PROPERTY PORTFOLIO

The Group continues to concentrate its property activities in the Thames Valley, close to Heathrow Airport and in the surrounding counties of Surrey, Berkshire and Buckinghamshire.

During the year the Company completed a number of new lettings at the Maidenhead Enterprise Centre, Maidenhead and The White House, Egham. The renewal of an office planning consent at The Windsor Business Centre, Windsor was finally received towards the end of the financial year although in view of market conditions existing leases will remain and no redevelopment is envisaged.  Following a lease expiry at Windsor one business unit has recently become available for letting. The individual units remain available for sale.

Campmoss continues to pursue various planning applications including an affordable housing scheme at Highway House in Maidenhead, a care home development at Tangley Place, Guildford and a revised care home scheme at The Priory, Burnham. A number of new opportunities were considered but no acquisitions were made during the year.

The Group's property portfolio, including Campmoss, contains 43.1% retail, 6.4% business units, 13.3% residential and 37.2% offices (by value).

FOCUS ON ENVIROMENTAL, SOCIAL AND GOVERNANCE ("ESG")

The Group maintains close contact with its Tenants and has a strategy of providing environmentally sustainable, energy efficient and functionable buildings bearing in mind physical and financial constraints.

Although no re-development or major refurbishment projects have been undertaken during the year aspects of ESG together with related Health and Safety issues are implemented where viable and possible.

The Group's Planning Applications emphasise modern design and include sustainability and green policies as well as being energy efficient. Our aim is to create a good working environment and achieve a BREEAM rating of Very Good.

We have developed the majority of our property portfolio and together with our tenants continue to take appropriate action to reduce carbon emissions and the impact on the environment. We view our properties as both contributing to the local economy and providing householders with decent living facilities.

INVESTMENTS

The Company retains a small portfolio of short-term retail bonds and equity investments. The value has marginally decreased over the year although the former provides a steady income stream.

The equity investments include Aquila Services Group plc (the UK's largest affordable housing consultancy group) and Galileo Resources plc (a mining exploration company with assets primarily in Zambia). I remain a non-executive director of both companies.

RELATIONSHIP AGREEMENT

The Company has entered a legally binding relationship agreement with myself, its controlling shareholder, to address the requirements of LR5.3.1 of the Listing Rules.

MANAGEMENT AND TEAM

Property Management is becoming far more intensive and challenging, and I would therefore take this opportunity to thank all members of our small property team and our Joint Venture partner for their support and achievements over the year.

OUTLOOK

As I write this report the effects of the Chancellors recent budget and financial statements are still being quantified. There is no doubt that many tenants and investors withdrew from the property market over the past few months awaiting the outcome of new tax and investment policies. The cauldron of measures announced will be unhelpful to the property market. Investors and the business community will no doubt form their own conclusions over the coming months. I remain of the view that any major reductions in interest rates will take longer than anticipated.

The year ahead will have its challenges and I look forward to reporting further at the half year.

J. Richard Wollenberg

Chairman

27 November 2024

Consolidated Income Statement

FOR THE YEAR ENDED 30 SEPTEMBER 2024

			2024	2023
			£'000	£'000
Revenue			683	662
Cost of sales			(98)	(52)
Gross profit			585	610
Administrative expenses			(594)	(569)
Other operating income			676	646
Operating profit before fair value movement on investment    properties			667	687
Fair value (loss)/gain on investment properties			(23)	(332)
Operating profit			644	355
Financial income			608	314
Financial expense			(7)	(6)
Profit on sale of investment properties			-	-
Profit on the sale of investments			-	74
Share of profit of Joint Venture			140	525
Profit before taxation			1,385	1,262
Taxation			(314)	(148)
Profit for the financial year attributable to equity holders			1,071	1,114

Earnings per share on profit for the
financial year - pence
Basic and diluted			102.76	104.62

Dividends
Final 2023 paid 16.0p (2022: 15.0p)			168	161
Interim 2024 paid 6.5p (2023 6.0p)			67	64
			235	225
Final 2024 proposed 17.0p (2023: 16.0p)			178	162

These results relate entirely to continuing operations.

Consolidated statement of comprehensive income and expense

FOR THE YEAR ENDED 30 SEPTEMBER 2024

				2024	2023
				£'000	£'000
Profit for the financial year				1,071	1,114
Items that cannot be reclassified subsequently to profit or loss
Net change in fair value of other properties				(5)	(10)
Net change in fair value of investments at fair value through comprehensive income				(15)	(37)
Total comprehensive income and expense for the year attributable    to the equity holders of the Parent Company				1,051	1,067

Consolidated Balance Sheet

AT 30 SEPTEMBER 2024

	2024	2024	2023	2023
	£'000	£'000	£'000	£'000
Non-current assets
Freehold investment properties		5,640		5,655
Property, plant, and equipment		287		290
Right of use asset		125		135
Investment in Joint Venture		11,423		12,283
Other financial assets		664		778
		18,139		19,141
Current assets
Inventory and work in progress	722		715
Trade and other receivables	317		274
Term deposits	10,235		10,384
Cash and cash equivalents	2,014		405
		13,288		11,778
Total assets		31,427		30,919
Current liabilities
Trade and other payables	(587)		(540)
Corporation tax	(182)		(162)
		(769)		(702)
Non-current liabilities
Lease liability		(158)		(165)
Deferred tax liability		(77)		(77)
Total liabilities		(1,004)		(944)
Net assets		30,423		29,975
Equity
Called up share capital		208		210
Share premium account		5,076		5,076
Other reserves		2,391		2,409
Investment property fair value reserve		2,049		2,193
Retained earnings		20,699		20,087
Total equity		30,423		29,975
Net assets per share		£29.31		£28.44

Consolidated Cash Flow Statement

FOR THE YEAR ENDED 30 SEPTEMBER 2024

		2024 £'000	2023 £'000
Cash flows from operating activities
Profit for the year		1,071	1,114
Adjustments for:
Depreciation right of use assets		10	10
Financial income		(608)	(314)
Financial expense		7	6
Profit on sale of investments		-	(74)
Share of profit of Joint Venture		(140)	(525)
Fair value (loss)/gain on investment properties		23	332
Taxation		314	148
Cash flows from operations before changes in working capital		677	697
Acquisition of inventory and work in progress		(7)	(21)
Increase in trade and other receivables		(43)	(67)
Increase/(decrease) in trade and other payables		47	(58)
Cash generated from operations		674	551
Tax paid		(293)	(268)
Net cash flows from operating activities		381	283
Cash flows from investing activities
Interest received		593	314
Dividend from Joint Venture		1,000	2,000
Proceeds from bond redemption		-	80
Acquisition of investment property		(8)	(2)
Acquisition of plant and equipment		(2)	-
Proceeds from sale of investments		99	79
Decrease/(increase) in held term deposits		149	(6,343)
Net cash flows from investing activities		1,831	(3,872)
Cash flows from financing activities
Purchase of own shares		(368)	(679)
Lease payments		-	(14)
Dividends paid		(235)	(225)
Net cash flows (used in)/from financing activities		(603)	(918)
Net increase/(decrease) in cash and cash equivalents		1,609	(4,507)
Cash and cash equivalents at beginning of year		405	4,912
Cash and cash equivalents at end of year		2,014	405

Consolidated statement of changes in equity

FOR THE YEAR ENDED 30 SEPTEMBER 2024

	Called up share capital     £'000	Share premium account £'000	Other reserves £'000	Investment property fair value reserve*     £'000	Retained earnings £'000	Total equity £'000
# At 30 September 2022	216	5,076	2,450	2,095	19,975	29,812
Profit for the year	-	-	-	-	1,114	1,114
Other comprehensive income - revaluation of investments Net change in fair value of own use freehold property	- -	- -	(37) (10)	- -	- -	(37) (10)
Transactions with equity holders
Dividends	-	-	-	-	(225)	(225)
Purchase of own shares	(6)	-	6	-	(679)	(679)
# Total transactions with equity holders	(6)	-	6	-	(904)	(904)
Fair value movements on investment properties - Cardiff	-	-	-	299	(299)	-
Disposal of property - Cardiff	-	-	-	(171)	171	-
Fair value movements on investment properties - Campmoss Group	-	-	-	153	(153)	-
# At 30 September 2023	210	5,076	2,409	2,193	20,087	29,975
# Profit for the year	-	-	-	-	1,071	1,071
Other comprehensive income - revaluation of investments Net change in fair value of own use freehold property	- -	- -	(15) (5)	- -	- -	(15) (5)
Transactions with equity holders
Dividends	-	-	-	-	(235)	(235)
Purchase of own shares	(2)	-	2	-	(368)	(368)
# Total transactions with equity holders	(2)	-	2	-	(603)	(603)
Fair value movements on investment properties - Cardiff	-	-	-	(23)	23	-
Fair value movements on investment properties - Campmoss Group	-	-	-	(121)	121	-
# At 30 September 2024	208	5,076	2,391	2,049	20,699	30,423
	______	__   ____	______	______	______	___   ___

* - Includes fair value movements on investment properties held by Campmoss Group, our Joint Venture, which are presented in investment property fair value reserve to demonstrate these are unrealised. 

Notes to the Financial Statements

FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.   Basis of preparation

The consolidated results for the year ended 30 September 2024 and 2023 are prepared in accordance with UK-adopted international accounting standards ("UK-adopted IAS") and those parts of the Companies Act 2006 applicable to companies reporting under IFRS and have been incorporated into the principal accounting policies.

The financial information set out above does not constitute the company's statutory financial statements for the years ended 30 September 2024 or 30 September 2023 but is derived from those financial statements. Statutory financial statements for 2023 have been delivered to the Registrar of Companies and those for 2024 will be delivered in due course. The auditor has reported on those financial statements; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the financial statements for 2024 nor 2023.

Going concern

The financial statements have been prepared on a going concern basis, which assumes that the Group will continue to meet its liabilities as they fall due. The Group's activities, together with the factors likely to affect its future development, performance and position are set out in the Chairman's Statement and Strategic Report. The financial position of the Group, its property portfolio under management, asset base, liquidity and key performance indicators.

The Group has sufficient financial resources to enable it to continue to trade and to complete the current maintenance and development programme. The Group is ungeared, and the cash flow forecasts do not assume any debt being required. Therefore, the Directors believe that the Group is well placed to manage its business risks successfully despite the current economic uncertainty.

The Group is in the enviable position of having significant cash balances. At 30 September 2024, the Cardiff Group had cash balances of £2.0m and a further £10.2m term deposits (generally with maturity dates of 95 days), in addition the Company has investments of £0.7m of which £0.6m are readily marketable. The Group has an operating cost base including tax and dividends of under £1.0m per annum so even with no income for a number of years the Group would remain solvent. 

The Cardiff Group receives a management fee from Campmoss of around £0.5m per annum, there is no reason to assume this income would not be received as the Campmoss Group had cash balances at 30 September 2024, of £6.3m and a further £3.1m term deposits (generally with maturity dates of 95 days).

New, revised or changes to existing financial reporting standards

Subject to the adoption of the IFRS's available for application noted below, this announcement is prepared on the basis of the accounting policies as set out in the most recently published set of annual financial statements.

IFRS

A number of new standards and amendments to standards and interpretations have been issued but are not yet effective for the current accounting period.  None are expected to have a material impact on the consolidated financial statements of the Group.

Notes to the Financial Statements

FOR THE YEAR ENDED 30 SEPTEMBER 2024 (continued)

2.   Segmental analysis

The Group manages its operations in two segments, being property and other investment and property development. Property and other investment relates 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	Property Development	Eliminations	2024 Total
	£'000	£'000	£'000	£'000
Rental income (wholly in the UK)	460	223	-	683
Financial income	602	6	-	608
Share of profit of Joint Venture	62	78	-	140
Profit before taxation	1,073	312	-	1,385
Net operating assets
Assets	30,504	5,388	(4,465)	31,427
Liabilities	(5,259)	(210)	4,465	(1,004)
Net assets	25,245	5,178	-	30,423

	Property and other investment	Property Development	Eliminations	2023 Total
	£'000	£'000	£'000	£'000
Rental income (wholly in the UK)	436	226	-	662
Property sales	829	433	-	1,262
Financial income	267	47	-	314
Share of profit of Joint Venture	425	100		525
Profit before taxation
Net operating assets	28,854	5,246	(3,181)	30,919
Assets	(3,882)	(243)	3,181	(944)
Liabilities	436	226	-	662
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.

Notes to the Financial Statements

FOR THE YEAR ENDED 30 SEPTEMBER 2024 (continued)

3. Earnings per share

Earnings per share has been calculated in accordance with IAS 33 - Earnings Per Share using the profit after tax for the financial year of £1,071,000 (2023: £1,114,000) and the weighted average number of shares as follows:

	Weighted average number of shares
	2024		2023
Basic and diluted shares	1,043,087	1,064,204
	102.76	104.62
Earnings per share (p)

There is no difference between basic and diluted shares as the Company has no potentially dilutive instruments in issue.

Notes to the Financial Statements

FOR THE YEAR ENDED 30 SEPTEMBER 2024 (continued)

Financial Calendar

28 November 2024            Results announced for the year ended 30 September 2024

17 January 2025                Annual General Meeting

17 January 2025                Ex-dividend date for the final dividend

18 January 2025                Record date for the final dividend

31 January 2025                Final dividend to be paid

May 2025                            Interim results for 2025 to be announced

30 September 2025            Year end

Directors and Advisers

## Directors	## Statutory Auditor
J Richard Wollenberg	MHA
Chairman and chief executive
Karen L Chandler FCA
Finance director	## Stockbrokers and financial adviser
	Shore Capital
Nigel D Jamieson BSc, FCSI
Independent non-executive director
## Secretary	## Bankers
Karen L Chandler FCA	HSBC Bank Plc
## Non-executive director of wholly owned subsidiary	## Solicitors
##### First Choice Estates plc Derek M Joseph BCom, FCIS	Blake Morgan LLP Charsley Harrison LLP
## Head office	## Registrar and transfer office
56 Station Road	Neville Registrars Ltd
Egham	Neville House
Surrey TW20 9LF	Steelpark Road
Telephone: 01784 437444	Halesowen
Fax: 01784 439157	B62 8HD
E-mail: webmaster@cardiff-property.com	Telephone: 0121 585 1131
Website: www.cardiff-property.com
## Registered office	## Registered number
56 Station Road	00022705
Egham
Surrey TW20 9LF

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