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CARDIFF PROPERTY PLC

Interim / Quarterly Report Jan 15, 2022

4603_ir_2022-01-15_3aab574a-cdf2-4c23-9752-4504fe9d2d4f.pdf

Interim / Quarterly Report

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THE CARDIFF PROPERTY plc

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.

HIGHLIGHTS:

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

CONTENTS

  • 01 Interim Management Report
  • 04 Condensed Consolidated Interim Income Statement
  • 05 Condensed Consolidated Interim Statement of Comprehensive Income and Expense
  • 06 Condensed Consolidated Interim Balance Sheet
  • 07 Condensed Consolidated Interim Statement of Cash Flows
  • 08 Condensed Consolidated Interim Statement of Changes in Equity
  • 09 Statement of Responsibility
  • 10 Notes to the Condensed Consolidated Interim Financial Statements
  • 13 Directors and Advisers
  • 13 Financial Calendar

INTERIM MANAGEMENT REPORT

DEAR SHAREHOLDER,

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.

FINANCIALS

30558 – 30 April 2021 3:11 pm – Proof 4 Cardiff Property IR 2021.indd 1 30/04/2021 15:12:21

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.

INTERIM MANAGEMENT REPORT CONTINUED

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.

DIVIDEND

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 INVESTMENT & DEVELOPMENT PORTFOLIO

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.

30558 – 30 April 2021 3:11 pm – Proof 4 Cardiff Property IR 2021.indd 2 30/04/2021 15:12:21

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.

CAMPMOSS PROPERTY COMPANY LIMITED & SUBSIDIARIES

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.

MANAGEMENT AND TEAM

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.

RELATIONSHIP AGREEMENT

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.

OUTLOOK

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.

J Richard Wollenberg

Chairman 30 April 2021

30558 – 30 April 2021 3:11 pm – Proof 4 Cardiff Property IR 2021.indd 3 30/04/2021 15:12:21

04

CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT for the six months ended 31 March 2021 CONDENSED CONSOLIDATED INTERIM STATEMENT

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

INCOME STATEMENT for the six months ended 31 March 2021 CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME AND EXPENSE

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

CONDENSED CONSOLIDATED INTERIM BALANCE SHEET

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

at 31 March 2021 CONDENSED CONSOLIDATED INTERIM STATEMENT

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

08

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY for the six months ended 31 March 2021 STATEMENT OF RESPONSIBILITY

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

OF CHANGES IN EQUITY for the six months ended 31 March 2021 STATEMENT OF RESPONSIBILITY

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:

  • 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 with the requirements of The Companies Act 2006;
  • the interim management report includes a fair review of the information required by:
    • 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 uncertainties for the remaining six months of the year; 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 related party transactions described in the last annual report that could do so.

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

1. BASIS OF PREPARATION

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.

Accounting policies

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.

Use of estimates and judgement

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.

Going concern

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.

2. SEGMENTAL ANALYSIS

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

2. SEGMENTAL ANALYSIS CONTINUED

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.

3. TAXATION

The tax position for the six-month period is estimated on the basis of the anticipated tax rates applying for the full year.

4. DIVIDENDS

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.

5. EARNINGS PER SHARE

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

DIRECTORS AND ADVISERS

DIRECTORS

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

SECRETARY

Karen L Chandler FCA

NON-EXECUTIVE DIRECTOR OF WHOLLY OWNED SUBSIDIARY

First Choice Estates plc Derek M Joseph BCom, FCIS

HEAD OFFICE

56 Station Road Egham, TW20 9LF Telephone: 01784 437444 Fax: 01784 439157 E-mail: [email protected] Web: www.cardiff-property.com

REGISTERED OFFICE

56 Station Road Egham, TW20 9LF

FINANCIAL CALENDAR

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

AUDITOR

PKF Littlejohn LLP

STOCKBROKERS AND FINANCIAL ADVISERS

Shore Capital

BANKERS HSBC Bank plc

SOLICITORS

Blake Morgan LLP Charsley Harrison LLP

REGISTRAR AND TRANSFER OFFICE

Neville Registrars Limited Neville House Steelpark Road Halesowen B62 8HD Telephone: 0121 585 1131

REGISTERED NUMBER

00022705

30558 – 30 April 2021 3:11 pm – Proof 4 Cardiff Property IR 2021.indd 13 30/04/2021 15:12:22

The Cardiff Property plc

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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