RNS Number:8541M
Fairbriar PLC
27 June 2003
FairBriar PLC
Interim Results for the six months to 31 March 2003
27 June 2003
FairBriar PLC ("FairBriar"), the specialist residential property developer,
announces its interim results for the six months ended 31 March 2003:
Financial highlights
* Post tax profit of #0.1m (2002: loss #1.8 million)
* Interim dividend of 1.0p (2002: 1.0p)
* Turnover for the Group and its joint ventures of #5.5 million, which
includes #3.7 million of Group turnover, which compares with #92,000 for both
the Group and the joint turnover over the same period last year
* Reduced gearing
Corporate highlights
* Group
- First phase of refurbishment at Nell Gwynn House, Sloane Avenue, London
SW3, completed and sold
- Construction and marketing commenced at N1rvana, Islington Green, London
N1
- Site acquisitions
* Joint ventures
- MacLeod & FairBriar: development of 67 residential units in Greater
London for an end development value of #33.5 million
- CPL (UK) Pte Ltd: first phase of Riverside Quarter, Wandsworth, to be
completed by the end of the year and development project of 70
residential units at Rochester Row Police Station, London, SW1
Kevin McCabe, Chairman of FairBriar PLC, commented: "Our intention is to
concentrate the Group's principal activities on the core business of residential
development either directly or in partnership with others. The focus will
remain on acquiring high quality, well located projects in London and the Home
Counties. However, should opportunities arise in other locations where we have a
good knowledge and local contacts, they will also be considered."
For further information please contact:
Philip Van Reyk Jeremy Carey/Marylene Guernier
FairBriar PLC Tavistock Communications
Tel: 01753 655 375 Tel: 020 7600 2288
Chairman's Statement
Results & Dividend
In the six months ended 31 March 2003, the Group achieved a post tax profit of
#0.1m (2002: loss #1.8 million) on a turnover of #3.7 million (2002: #0.1
million). This result accords with our expectation that the majority of
turnover and earnings would materialise in the second half of the financial
year, when a number of developments are due to complete. I am pleased to report
a significant reduction in the level of debt within the Group, with #22.2
million cash being generated before financing in the period. The Board has
declared an interim dividend of 1.0p which is maintained at the same level as
the previous year, and this will be paid on 15 August 2003 to those shareholders
on the register on 11 July 2003.
Residential Developments
During the period the first of three phases of refurbishment at Nell Gwynn
House, Sloane Avenue, London, SW3 was completed and sold. Apartments in the
second and third phases are currently being refurbished and marketed and there
is strong interest from prospective purchasers with good levels of reservations
in place. It is pleasing to report that alongside the refurbishment of the
apartments, we have also obtained planning consent to enlarge the basement
health club and restaurant facilities. Additionally, an application will shortly
be lodged for consent to add a further storey to the building.
At Heronsbrook, Ascot, seven newly built houses have now been completed and sold
at prices ranging between #340,000 and #495,000, and the restoration of the
original house is well advanced. Once the restoration is completed it will
provide seven apartments and already there is keen interest from likely
purchasers.
Construction commenced at our prestigious N1rvana scheme on Islington Green at
the beginning of this financial year. It is satisfying to note that from the
first marketing initiative, 22 of the 72 apartments and houses have been
reserved off plan.
FairBriar has always maintained a cautious approach to land acquisition and thus
was not tempted to acquire any significant property during 2002 given what we
perceived to be high prices desired by vendors. We have, however, made a number
of careful acquisitions since then, which we believe, offer good earnings
potential.
Firstly, a site in Uckfield, East Sussex was acquired in January 2003, for #1.6
million; it comprises a former school building set in five acres. We have
lodged a planning application for an initial scheme of 22 residential units,
with the prospect of further development in future years. We anticipate
construction to commence later in 2003.
Three separate properties have been acquired in Tunbridge Wells, Kent, two
unconditionally and one subject to planning. In all cases the properties
comprise town centre refurbishments to provide some 43 residential units with a
gross development value approaching #11.5 million.
Joint Venture Developments
The relationship with our joint venture partners remains a key part of
FairBriar's ongoing development programme.
MacLeod & FairBriar Limited
This long established joint venture vehicle has now expanded its operations and
currently has four projects underway. Two of these, totalling 24 apartments, are
situated in Wapping High Street, London, E1. The third, a 29 unit scheme, was
recently granted planning consent, in Harrow on the Hill, Middlesex and the
fourth, a 14 unit scheme, is situated in Dryburgh Road, Putney, SW15. These
four schemes will provide a total of 67 houses or apartments with an end
development value of approximately #33.5 million. In conjunction with our
partner, we continue to look carefully at further opportunities.
CPL (UK) Pte Limited
The relationship with our Singaporean partners continues to flourish. Our joint
venture at Wandsworth Riverside Quarter is progressing according to schedule,
with the first phase, where 32 apartments have already been sold, due to
complete by the year end. Riverside Quarter will eventually provide 315
apartments together with accompanying commercial and retail space.
More recently in a separate joint venture vehicle with CPL (UK) Pte Limited, we
have acquired the site of the former Rochester Row Police Station, London, SW1.
The property, overlooking Vincent Square, is close to various developments
undertaken by FairBriar some years ago. We anticipate that the project will
consist of a total of around 70 apartments.
Future Prospects
Our intention is to concentrate the Group's principal activities on the core
business of residential development either directly or in partnership with
others. The focus will remain on acquiring high quality, well located projects
in London and the Home Counties. However, should opportunities arise in other
locations where we have a good knowledge and local contacts, they will also be
considered.
Finally, I would like to thank Bruce Walker who left FairBriar in April 2003 for
the commitment and effort applied whilst with us.
Kevin McCabe
Chairman
27 June 2003
Consolidated profit & loss account
6 months to 6 months to 12 months to
31 March 2003 31 March 2002 30 Sept 2002
#000 #000 #000
(unaudited) (unaudited) (audited)
Turnover: Group & share of 5,457 92 29,756
joint venture
Less: share of joint venture (1,713) - (22)
turnover ----------- ----------- -----------
Group turnover 3,744 92 29,734
Cost of sales (2,197) (133) (25,005)
----------- ----------- -----------
Gross profit 1,547 (41) 4,729
Administrative expenses (1,243) (1,299) (3,176)
Other operating income 613 1,290 2,517
----------- ----------- -----------
Group operating profit 917 (50) 4,070
----------- ----------- -----------
Share of joint venture
operating
profit/(loss) 568 (27) (161)
----------- ----------- -----------
Total operating profit
including
share of joint ventures 1,485 (77) 3,909
Profit on disposal of
subsidiary
undertakings - - 192
Profit on disposal of
investment
properties 646 319 3,061
Interest payable - group (2,140) (2,164) (4,105)
Interest payable - joint 1 - -
ventures
----------- ----------- -----------
(Loss)/profit on ordinary
activities
before taxation (8) (1,922) 3,057
----------- ----------- -----------
Taxation on profit on ordinary - - 5
activities
Minority interest 63 93 (19)
----------- ----------- -----------
Profit for the period 55 (1,829) 3,043
Dividend (353) (353) (741)
----------- ----------- -----------
Retained profit for the (298) (2,182) 2,302
period
Earnings per share - basic 0.16p (5.18)p 8.63p
Earnings per share - diluted 0.16p (5.07)p 8.45p
Consolidated balance sheet
as at as at as at
31 March 2003 31 March 2002 30 Sept 2002
#000 #000 #000
(unaudited) (unaudited) (audited)
Fixed assets
Intangible assets 1,163 1,350 1,193
Tangible assets 41,352 54,874 43,646
Investments 5,012 5,012 5,012
Investment in joint ventures
- share of gross assets 33,739 21,230 27,854
- share of gross liabilities (24,593) (15,090) (19,277)
----------- ----------- -----------
9,146 6,140 8,577
----------- ----------- -----------
56,673 67,376 58,428
Current assets
Stock & WIP 12,068 27,986 10,361
Debtors 17,635 1,503 42,012
Cash 130 - 1,309
----------- ----------- -----------
29,833 29,489 53,682
Creditors : amounts falling
due within one year
Bank loans & overdraft (36,709) (48,488) (58,680)
Creditors (4,058) (6,127) (6,080)
----------- ----------- -----------
(40,767) (54,615) (64,760)
----------- ----------- -----------
Net current liabilities (10,934) (25,126) (11,078)
----------- ----------- -----------
Total assets less current 45,739 42,250 47,350
liabilities
Creditors: amounts falling
due
after one year
Bank loans (34,400) (36,783) (35,650)
----------- ----------- -----------
(34,400) (36,783) (35,650)
----------- ----------- -----------
Net assets 11,339 5,467 11,700
Capital & reserves
Called up share capital 353 353 353
Capital redemption reserve 28,886 28,886 28,886
Share premium account 3,822 3,822 3,822
Revaluation reserve 2,145 1,000 2,145
----------- ----------- -----------
Profit & loss account (24,834) (29,020) (24,536)
----------- ----------- -----------
Equity shareholders' funds 10,372 5,041 10,670
Minority interest - equity 967 426 1,030
----------- ----------- -----------
11,339 5,467 11,700
----------- ----------- -----------
Consolidated cash flow statement
6 months to 6 months to 12 months to
31 March 2003 31 March 2002 30 Sept 2002
#000 #000 #000
(unaudited) (unaudited) (audited)
Cash flow from operating 22,587 6,295 2,108
activities
Returns on investments and
servicing of finance (2,978) (2,236) (4,378)
Taxation - - (12)
Capital expenditure and
financial
investment 2,947 717 (844)
Acquisitions and disposals - 348 1,241
----------- ----------- -----------
Equity dividends paid (388) - (741)
----------- ----------- -----------
Cash flow before use of 22,168 5,124 (2,626)
financing
----------- ----------- -----------
Financing (5,300) (408) (4,814)
----------- ----------- -----------
Increase/(decrease) in cash in 16,868 4,716 (7,440)
the
period
----------- ----------- -----------
Reconciliation of net cash flow to movement in net debt
6 months to 6 months to 12 months to
31 March 2003 31 March 2002 30 Sept 2002
(unaudited) (unaudited) (audited)
Increase/(decrease) in cash in 16,868 4,716 (7,440)
the period
Cash outflow from repayment
of
secured loan 5,300 1,250 5,656
New secured loans - (842) (842)
Amortisation of finance (126) - -
costs
---------- ----------- ----------
Movement in net debt in 22,042 5,124 (2,626)
period
Net debt at beginning of (93,021) (90,395) (90,395)
period ---------- ----------- ----------
Net debt at close of period (70,979) (85,271) (93,021)
---------- ----------- ----------
Notes to the Interim results
1. The Interim results, which were approved by the Board on 26 June 2003, have
been prepared on the basis of the accounting policies set out in the Group's
2002 statutory accounts.
2. The calculation of the earnings per share for the period, on both a basic
and diluted basis, is calculated on the profit for the period of #55,000
(2002: loss of #1,829,000). The undiluted weighted average number of
ordinary shares in issue during the period was 35,278,647 (2002:35,278,647).
The diluted earnings per share as disclosed takes account of share options
held by directors and other senior employees. The weighted average number of
shares used for this purposes is 35,278,647 (2002: 36,084,792).
3. The figures are not the Company's statutory accounts and are not audited.
The results for the year ended 30 September 2002 are extracted from the
audited financial statements on which the auditors gave an unqualified
report. Full accounts for that period have been filed with the Registrar of
Companies.
4. These Interim results are being circulated to all shareholders. Further
copies can be obtained from the registered office at Ashby House, 64 High
Street, Walton-on-Thames, Surrey KT12 1BW.
This information is provided by RNS
The company news service from the London Stock Exchange
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