| Wed 29 Apr 2009, 15:00 | | TDH - Tradehold Limited - Results For The 12 Months To 28 February 2009 |
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TDH
TDH
TDH - Tradehold Limited - Results For The 12 Months To 28 February 2009
Tradehold Limited
(Registration number 1970/009054/06)
JSE share code: TDH & ISIN: ZAE000026902
Luxemburg
27 April 2009
Tradehold Limited Results For the 12 months to 28 February 2009
Group income statement
Reviewed Audited
12 months to 12 months to
(GBP`000) 28/02/09 29/02/08
Continuing operations
Revenue 3 425 2 964
Trading loss (6 044) (133)
Exceptional items (9 472) (10 029)
Operating loss (15 516) (10 162)
Net interest paid 1 515 633
Loss before taxation (17 031) (10 795)
Taxation 111 (396)
Loss after taxation (17 142) (10 399)
Loss of associated companies (247) (168)
Loss from continuing operations (17 389) (10 567)
Discontinued operations
Loss from discontinued operations (2 382) (3 789)
Net loss (19 771) (14 356)
Attributable to:
Minority interest (277) (606)
Resulting from continuing operations (277) (104)
Resulting from discontinued operations - (502)
Ordinary shareholders (19 494) (13 750)
Resulting from continuing operations (17 112) (10 463)
Resulting from discontinued operations (2 382) (3 287)
(19 771) (14 356)
Earnings per share (pence)
- before exceptional items (2,9) (1,1)
- basic (5,6) (4,0)
- headline earnings (0,8) (0,8)
Number of shares for calculation of
earnings per share (`000) 347 330 347 330
Group balance sheet
Reviewed Audited
(GBP`000) 28/02/09 29/02/08
Non-current assets 48 027 54 665
Property, plant and equipment 47 40
Investment properties 46 445 44 901
Interest in associated companies - 9 312
Financial assets 1 535 412
Current assets 22 851 26 886
Listed investments at fair value 4 222 -
Accounts receivable 2 381 1 216
Cash and cash equivalents 16 248 25 670
Total assets 70 878 81 551
Ordinary shareholders` equity 26 750 46 254
Preference share capital 12 12
Minority interest 361 638
Non-current liabilities: long-term loans 31 440 31 128
Current liabilities 12 315 3 519
Short-term loans 9 824 499
Other current liabilities 2 491 3 020
Total equity and liabilities 70 878 81 551
Group cash flow statement
Reviewed Audited
12 months to 12 months to
(GBP`000) 28/02/09 29/02/08
Cash flow from operations (2 337) (6 158)
Investment activities (16 722) (7 071)
Net acquisition of fixed assets (9 178) (2 688)
Other investment activities (7 544) (4 383)
Net cash flow (19 059) (13 229)
Financing activities - net debt raised 9 637 2 924
Decrease in cash and cash equivalents (9 422) (10 305)
Group statement of changes in equity
Reviewed Audited
12 months to 12 months to
(GBP`000) 28/02/09 29/02/08
Balance at 1 March 46 254 59 682
Exchange rate adjustments (10) 154
Revaluation of land and buildings - 168
Net loss for the year (19 494) (13 750)
26 750 46 254
Supplementary information
Reviewed Audited
12 months to 12 months to
(GBP`000) 28/02/09 29/02/08
1. Depreciation for the year 25 1 997
2. Capital expenditure for the year 9 426 3 988
3. Calculation of headline earnings
Net loss (19 494) (13 750)
Attributable exceptional items 9 472 10 029
Shortfall on revaluation of investment
properties after taxation and
minority interest 7 226 950
Loss on sale and scrapping of fixed assets
after taxation and minority interest 140 53
(2 656) (2 718)
Reviewed Audited
(GBP`000) 28/02/09 29/02/08
4. Number of shares in issue (`000) 347 330 347 330
5. Net asset value per share (pence) 7,7 13,3
6. Financial assets
Listed investments at fair value: Instore 1 449 -
Loans 86 412
1 535 412
7. Contingent liabilities 8 528 11 094
8. Operating lease commitments 3 163 3 402
Analysis of results
Reviewed Audited
12 months to 12 months to
(GBP`000) 28/02/09 29/02/08
Attributable earnings of Instore plc (2 382) (3 287)
Other Tradehold Ltd group companies (7 640) (434)
Loss before exceptional items (10 022) (3 721)
Attributable exceptional items (9 472) (10 029)
Net loss (19 494) (13 750)
Tradehold is an investment holding company with interests 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 owns and manages a portfolio of mostly retail properties as well as
a growing number of commercial and industrial buildings.
Business review
At the end of July 2008 Tradegro Ltd ("Tradegro"), a wholly-owned subsidiary of
Tradehold, sold a further 46,5 million Instore plc ("Instore") shares to Seaham
Investments Ltd ("Seaham") consequent to a general offer to all the Instore
shareholders by Seaham. This followed the sale of 68,0 million Instore shares to
the same buyer in the previous financial year. After the second transaction
Tradehold indirectly still holds 36,2 million shares representing about 15,5% of
Instore. The results of Tradehold for the 12 months to end February 2009
therefore include those of Instore (on an associated company basis) up to 30
July 2008, the date of the second transaction, after which date Tradehold`s
remaining investment in that company is shown under "financial assets". The
results for Instore for the current and comparative period are included at the
"loss from discontinued operations" line. After the reduction in Tradehold`s
interest in Instore to an investment, the company`s primary source of revenue is
now rental income, resulting in the comparative revenue figure being restated
accordingly.
Moorgarth
The period under review, which was also Moorgarth`s fifth full year of trading,
was one of the most challenging for the British property market in recent times.
The financial sector all but collapsed with far-reaching results for all
business sectors. The lack of available finance impacted property companies and
institutions alike, with property values falling within the year by 20% to 30%
depending on the sector, as investors withdrew from property funds and leveraged
buyers left the market. Development funding virtually dried up while the
property investment market became increasingly inactive. For cash investors,
about the only ones still active in the market, there is the benefit that more
reasonably priced properties are coming on offer.
Moorgarth suffered an after-tax loss of GBP9,5 million as against an after-tax
loss of GBP0,75 million in 2008. The value of the portfolio, which consists of
23 buildings, has over the five years risen from GBP15,6 million to
GBP46,4 million while rental income over the same period has increased from
GBP1,0 million to GBP3,4 million. Almost GBP10 million was spent during the year
on acquisitions and investments in the property market as against GBP2,3 million
in 2008. However, despite a significant improvement in rental income, property
values decreased, and a review at the end of the financial year showed a
reduction in the value of the company`s property portfolio of GBP7,5 million
compared to the previous year.
At Moorgarth the focus moved from expansion to portfolio management. The rental
market slowed significantly as tenants looked to consolidate their space needs
and reduce costs. Concerns over tenant quality increased the risk profile of the
sector.
Comments on the results
In April 2008, Tradegro invested in a high-coupon financial instrument linked to
the share price of UBS AG ("UBS"). The turmoil in the financial markets
worldwide and the sharp decline in the price of bank shares resulted in the
Group owning UBS shares at the close-out of the instrument. It is shown on the
balance sheet as listed investments at fair value. Provision is made under
Exceptional Items for the reduction in the value of this investment.
Exceptional items
Exceptional items are made up as follows:
Fair value adjustment: UBS investment (GBP5,9 million)
Fair value adjustment: Instore investment (GBP1,3 million)
Loss on disposal of Instore shares (GBP1,2 million)
Legal and professional expenditure (GBP0,6 million)
Impairment of loans (GBP0,5 million)
Total (GBP9,5 million)
Dividend
In the light of the negative results posted for the year, the board does not
recommend paying a dividend to shareholders.
Outlook
Predictions for the UK markets at this stage are no more than speculative.
Although there seems general consensus that property values will start levelling
out in the months ahead, no significant recovery of any kind is expected for the
next 12 months.
Accounting policy
Accounting policies comply with International Financial Reporting Standards
(IFRS) which have been applied consistently in line with those adopted for the
year ended 29 February 2008. The comparative "operating lease commitment" amount
has been restated to include previously unconsidered lease contracts.
The group`s auditors, PricewaterhouseCoopers Inc., reviewed the results and
their unqualified report is available on request from the company secretary.
Reporting currency
As the operations of Tradehold`s subsidiaries are conducted in pound sterling
and because of the distortion caused by the fluctuating value of the rand, the
company is reporting its results in the former currency.
C Moore H R W Troskie
Director Director
29 April 2009
Date: 29/04/2009 15:00:04 Produced by the JSE SENS Department.
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