| Thu 13 Nov 2008, 16:46 | | TDH - Tradehold Limited Group - Results For the six months to 31 August 2008 |
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TDH
TDH
TDH - Tradehold Limited Group - Results For the six months to 31 August 2008
Tradehold Limited
(Registration number 1970/009054/06)
JSE share code: TDH & ISIN: ZAE000026902
Group Results For the six months to 31 August 2008
GROUP INCOME STATEMENT
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
(GBP`000) 31/08/08 31/08/07 29/02/08
Revenue 1 518 66 063 66 063
Trading loss (354) (534) (1 719)
Exceptional items (5 540) (8 684) (10 029)
Operating loss (5 894) (9 218) (11 748)
Net interest received/(paid) 26 (473) (531)
Loss before taxation (5 868) (9 691) (12 279)
Taxation 30 143 (396)
Loss after taxation (5 898) (9 834) (11 883)
Loss of associated companies (2 489) (1 488) (2 473)
Net loss (8 387) (11 322) (14 356)
Attributable to:
Minority interest (203) (448) (606)
Ordinary shareholders (8 184) (10 874) (13 750)
(8 387) (11 322) (14 356)
Earnings per share (pence)
- before exceptional items (0,8) (0,6) (1,1)
- basic (2,4) (3,1) (4,0)
- headline earnings (0,5) (0,7) (0,8)
Number of shares for calculation
of earnings per share (`000) 347 330 347 330 347 330
GROUP BALANCE SHEET
Unaudited Audited
(GBP`000) 31/08/08 29/02/08
Non-current assets 54 690 54 665
Investment properties 51 382 44 901
Property, plant and equipment 58 40
Interest in associated companies 1 015 9 312
Other investments 2 235 412
Current assets 27 995 26 886
Listed investments - at market value 7 689 -
Accounts receivable 3 936 1 216
Cash and cash equivalents 16 370 25 670
Total assets 82 685 81 551
Ordinary shareholders` equity 38 070 46 254
Preference share capital 12 12
Minority interest 382 638
Non-current liabilities: long-term loans 34 974 31 128
Current liabilities 9 247 3 519
Short-term loans 6 408 499
Other current liabilities 2 839 3 020
Total equity and liabilities 82 685 81 551
GROUP CASH FLOW STATEMENT
Unaudited Unaudited
6 months to 6 months to
(GBP`000) 31/08/08 31/08/07
Cash flow from operations (1 056) (3 615)
Investment activities (17 999) 6 601
Net acquisition of fixed assets (7 522) (2 501)
Other investment activities (10 477) 9 102
Net cash flow (19 055) 2 986
Financing activities - Net debt raised 9 755 402
(Decrease)/increase in cash and cash equivalents (9 300) 3 388
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS` EQUITY
Unaudited Unaudited
6 months to 6 months to
(GBP`000) 31/08/08 31/08/07
Balance at 1 March 46 254 59 682
Attributable loss for the period (8 184) (10 874)
Balance at 31 August 38 070 48 808
SUPPLEMENTARY INFORMATION
Unaudited Unaudited
6 months to 6 months to
(GBP`000) 31/08/08 31/08/07
1. Depreciation for the period 13 1 883
2. Capital expenditure for the period 7 536 4 258
3. Calculation of headline earnings
Net loss (8 184) (10 874)
Attributable exceptional items 5 540 8 684
Shortfall/(surplus) on revaluation of
investment properties after taxation
and minority interest 858 (251)
(Profit)/loss on sale and scrapping
of fixed assets after taxation and
minority interest (12) 95
(1 798) (2 346)
Unaudited Audited
31/08/08 29/02/08
4. Number of shares in issue (`000) 347 330 347 330
5. Net asset value per share (pence) 11,0 13,3
6. Other investments
Listed investments at market value 1 920 -
Loans 315 412
2 235 412
7. Contingent liabilities 3 212 11 094
ANALYSIS OF RESULTS
Unaudited Unaudited
6 months to 6 months to
(GBP`000) 31/08/08 31/08/07
Attributable earnings of Instore plc (2 382) (2 470)
Other Tradehold Ltd group companies (262) 280
Loss before exceptional items (2 644) (2 190)
Attributable exceptional items (5 540) (8 684)
Net loss (8 184) (10 874)
Tradehold is an investment holding company with interests centred mainly in the
Moorgarth group of companies in which it holds the controlling interest, and in
the listed UK retailing group Instore plc, in which it has a 15,5% shareholding.
Moorgarth`s portfolio consists mainly of retail properties as well as an
increasing number of commercial and industrial buildings.
BUSINESS REVIEW
At the end of July Tradegro Limited ("Tradegro"), a wholly-owned subsidiary of
Tradehold Limited, sold 46,5 million Instore plc ("Instore") shares to Seaham
Investments Limited ("Seaham") consequent to a general offer to all the Instore
shareholders by Seaham. This follows the sale of 68,0 million Instore shares to
the same buyer in the previous financial year. After the most recent transaction
Tradehold indirectly still holds 36,2 million shares representing about 15,5% of
Instore. The results of Tradehold for the six months to end August therefore
include those of Instore up to 30 July, the date of the most recent transaction,
after which date Tradehold`s remaining investment in that company is shown under
"other investments".
Moorgarth
Tradehold`s property interests remain vested in several Moorgarth companies in
which it owns the controlling interest. During the reporting period management
continued to improve the quality of the properties in the portfolio. The value
of its portfolio had decreased by GBP1 million at the end of August.
The turmoil in financial and property markets had a far-reaching effect on
operations. Management had, however, taken timely action to protect the Group
against the effects of the fall-out in the market by the fixing of a significant
portion of Moorgarth`s external debt already in December 2007. Of its external
debt, less than GBP3 million will need to be refinanced in the next 24 months.
Due to the cancellation or deferment of new projects and the delays in the
approval of building applications, Moorgarth decided to exit from Bowcliffe, the
project management consultancy in which it held a substantial share.
During the period under review Moorgarth completed two developments and managed
to fill a number of vacancies in its properties. As a result, the company
expects rental income to increase in the second half of the year to February
2009. With access to finance, the company is in a good position to take
advantage of the many opportunities presenting themselves in a falling market to
acquire quality properties at very competitive prices.
COMMENTS ON THE RESULTS
Revenue during the reporting period represents rental income on properties only
whereas in the previous reporting periods it was the turnover of Instore. This
is the result of the change in which the investment in Instore is being
accounted for.
In April, Tradegro invested in a high-coupon financial instrument linked to the
share price of UBS AG ("UBS"). Following the turmoil in the financial markets
worldwide and the sharp decline in the price of bank shares it is considered
prudent to assume that the Group will own UBS shares at the close-out of the
instrument and it is shown on the balance sheet as listed investments - at
market value. Provision is made under Exceptional Items for the impairment in
the value of this investment.
Exceptional items
Exceptional items are made up as follows:
- Loss on disposal of Instore shares (GBP1,2 million)
- Impairment of investment in Instore (GBP0,9 million)
- Impairment of investment in UBS (GBP2,2 million)
- Legal and professional expenditure (GBP1,2 million)
- Total (GBP5,5 million)
DIVIDEND
Based on the results achieved, the board does not recommend paying a dividend to
shareholders.
OUTLOOK
In the light of prevailing conditions in world markets Tradehold does not expect
the business environment to change materially in the second half of the
financial year.
ACCOUNTING POLICY
Accounting policies comply with International Financial Reporting Standards
which have been applied consistently in line with those adopted for the year
ended 29 February 2008. The interim results were prepared in accordance with IAS
34 - Interim Financial Reporting, and have not been reviewed or reported on by
the auditors.
CH Wiese C Moore Luxemburg
Chairman Director 11 November 2008
13 November 2008
Date: 13/11/2008 16:46:01 Produced by the JSE SENS Department.
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