| Mon 3 May 2010, 16:36 | | TDH - Tradehold - Reviewed results for the twelve months to 28 February 2010 |
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TDH
TDH
TDH - Tradehold - Reviewed results for the twelve months to 28 February 2010
Tradehold Limited
("Tradehold")
(Registration number 1970/009054/06)
JSE share code: TDH
ISIN: ZAE000026902
Reviewed results for the twelve months to 28 February 2010
STATEMENT OF COMPREHENSIVE INCOME
Reviewed Audited
12 months 12 months
(GBP`000) to 28/02/10 to 28/02/09
Continuing operations
Revenue 4 783 3 425
Trading profit/(loss) 2 448 (6 044)
Exceptional items 1 393 (9 472)
Operating profit/(loss) 3 841 (15 516)
Net interest paid 1 844 1 515
Profit/(loss) before taxation 1 997 (17 031)
Taxation (354) 111
Profit/(loss) after taxation 2 351 (17 142)
Loss of associated companies - (247)
Profit/(loss) from continuing operations 2 351 (17 389)
Discontinued operations
Loss from discontinued operations - (2 382)
Profit/(loss) for the year 2 351 (19 771)
Other comprehensive income
Currency translation differences - (10)
Total comprehensive income/(loss) for the year 2 351 (19 781)
Profit/(loss) attributable to:
Owners of the parent 2 371 (19 494)
Resulting from continuing operations 2 371 (17 112)
Resulting from discontinued operations - (2 382)
Minority interest (20) (277)
2 351 (19 771)
Total comprehensive income/(loss) attributable to:
Owners of the parent 2 371 (19 504)
Resulting from continuing operations 2 371 (17 122)
Resulting from discontinued operations - (2 382)
Minority interest (20) (277)
2 351 (19 781)
Earnings per share (pence)
- before exceptional items 0,3 (2,9)
- basic 0,7 (5,6)
- headline earnings 0,4 (3,1)
Number of shares for calculation of
earnings per share (`000) 346 762 347 330
STATEMENT OF CHANGES IN EQUITY
Reviewed Audited
12 months 12 months
(GBP`000) to 28/02/10 to 28/02/09
Balance at beginning of the year 27 111 46 892
Purchase of treasury shares (26) -
Total comprehensive income/(loss) for the year 2 351 ( 19 781)
Balance at end of the year 29 436 27 111
STATEMENT OF FINANCIAL POSITION
Reviewed Audited
(GBP`000) 28/02/10 28/02/09
Non-current assets 52 221 48 027
Property, plant and equipment 6 900 47
Investment properties 45 167 46 445
Financial assets 154 1 535
Current assets 20 652 22 851
Financial assets 7 679 4 222
Trade and other receivables 2 026 2 381
Non-current assets held for sale 332 -
Inventories 26 -
Cash and cash equivalents 10 589 16 248
Total assets 72 873 70 878
Equity 29 436 27 111
Ordinary shareholders` equity 29 095 26 750
Minority interest 341 361
Non-current liabilities 26 545 31 452
Preference share capital 12 12
Long-term borrowings 26 533 31 440
Current liabilities 16 892 12 315
Short-term borrowings 14 678 9 824
Other current liabilities 2 214 2 491
Total equity and liabilities 72 873 70 878
STATEMENT OF CASH FLOWS
Reviewed Audited
12 months 12 months
(GBP`000) to 28/02/10 to 28/02/09
Cash flows from operating activities (745) (2 337)
Cash flows from investing activities (4 861) (16 722)
Net acquisition of investment property (4 006) (9 159)
Other investment activities (855) (7 563)
Net cash flow (5 606) (19 059)
Cash flows from financing activities
- Net debt (repaid)/raised (53) 9 637
Net decrease in cash and cash equivalents (5 659) (9 422)
Cash and cash equivalents at
beginning of the year 16 248 25 670
Cash and cash equivalents at end of the year 10 589 16 248
SUPPLEMENTARY INFORMATION
Reviewed Audited
12 months 12 months
(GBP`000) to 28/02/10 to 28/02/09
1. Depreciation for the year 234 25
2. Capital expenditure for the year 5 527 9 426
3. Calculation of headline earnings
Net profit/(loss) 2 371 (19 494)
Loss on disposal of investment in associate - 1 236
(Surplus)/shortfall on revaluation of
investment properties (1 046) 7 460
(Profit)/loss on sale and scrapping of
property, plant and equipment and investment
properties (21) 142
Taxation - -
Minority interest - (236)
1 304 (10 892)
Reviewed Audited
(GBP`000) 28/02/10 28/02/09
4. Number of shares in issue (`000) 346 542 347 330
5. Net asset value per share (pence) 8,4 7,7
6. Financial assets
Listed investments at fair value 5 867 5 671
Unlisted investments at fair value 1 812 -
Loans 154 86
7 833 5 757
7. Contingent liabilities 7 722 8 528
SEGMENTAL ANALYSIS
Trading Total
(GBP`000) Revenue profit/(loss) assets
Twelve months to
28 February 2010
(reviewed)
Property - retail 2 162 4 285 30 462
- commercial 303 (525) 8 094
- offices 437 (271) 6 146
- leisure 1 881 402 7 973
- other - (287) 1 685
Treasury - (1 156) 18 513
4 783 2 448 72 873
Twelve months to
28 February 2009
(audited)
Property - retail 1 842 (2 812) 24 041
- commercial 640 (918) 8 747
- offices 390 (1 270) 6 350
- leisure 553 (970) 7 318
- other - (277) 1 356
Treasury - 203 23 066
3 425 (6 044) 70 878
Tradehold is an investment holding company with interests mainly in the
Moorgarth group of property companies ("Moorgarth") in which it holds 85%, and
in the UK retailing group Instore plc ("Instore"), in which it has a 15,9%
shareholding. Moorgarth owns and manages a portfolio of mostly retail properties
and increasingly also commercial and industrial buildings.
In an environment marked by the return of a fragile stability to world financial
markets Tradehold returned to profitability for the full year. The GBP2,4
million bottom-line profit, as against a net loss of GBP19,5 million in 2009,
was achieved mainly due to a gain in the market value of its investment in UBS
AG and the profit declared by Moorgarth following a net uplift in its investment
properties.
BUSINESS REVIEW
Although the UK economy is now officially out of recession, there remains a
considerable difference of opinion as to whether this improvement will continue
to gain pace or remain at its current modest level. The improvement has been in
the real estate market in respect of prime space, primarily in the retail and
office space due to the return of investment and pension funds to the property
market. The secondary market, in which Moorgarth is mainly active, has remained
at more or less the same level throughout the reporting period, with no real
signs of significant recovery likely in the foreseeable future.
Moorgarth
The Moorgarth group focuses on property investment and development, asset
management and property consultancy. During the 12 months of the review period
the group continued to battle negative market sentiment and the challenging
conditions that dominated the property sector. External funding remained highly
restricted, with new loans seldom exceeding 65% of a property`s value, thereby
inhibiting considerably the activities of leveraged property companies such as
Moorgarth. Not only funding, but also supply proved to be a major constraint as
owners withheld their properties, unwilling as they were to sell into a
depressed market through fear of suffering losses.
During the review period owners of commercial and retail properties had to
contend with tenant losses brought about by liquidations and bankruptcies. At
the same time the level of incentives demanded by tenants increased
substantially. Due to the compounding effect of reduced rents and higher
incentives, many development projects were put on hold as they were judged to be
no longer financially viable.
In the prevailing market conditions management did not strive to grow the
portfolio and the number of properties owned remained unchanged at 22. The focus
was rather on enhancing the value of the existing portfolio through
refurbishment and on minimising vacant space by vigorously seeking new tenants.
During the year management converted an after-tax loss of GBP9,3 million into an
after-tax profit of GBP0,8 million. The value of the portfolio increased from
GBP46,4 million to GBP51,5 million.
COMMENTS ON THE RESULTS
Exceptional items
Exceptional items are made up as follows:
Reviewed Audited
12 months 12 months
(GBP`million) to 28/02/10 to 28/02/09
Fair value adjustment: UBS AG investment 1,5 (5,9)
Fair value adjustment: Instore investment 0,4 (1,3)
Legal and professional expenditure (0,5) (0,6)
Impairment of loans - (0,5)
Loss on disposal of Instore shares - (1,2)
Total 1,4 (9,5)
DIVIDEND
In order to preserve cash and given the uncertainties in the market the board
does not recommend paying a dividend to shareholders.
OUTLOOK
The free fall in property values that characterised the two previous financial
years has been halted after reaching historic lows and the market seems to find
itself at the start of an upward curve. This is not expected to gain much
momentum initially with banks and other financial institutions remaining careful
in making development funding available. The year ahead is therefore expected to
be as challenging as 2010 without any significant increase in the current level
of activity.
ACCOUNTING POLICY
The results for the 12 months to 28 February 2010 are prepared in accordance
with the recognition and measurement principles of International Financial
Reporting Standards, including IAS 34: Interim Financial Reporting, and in
accordance with the requirements of the Companies Act 61 of 1973, as amended,
and the Listings Requirements of the JSE Limited. The accounting policies are
consistent with those applied in the annual financial statements for the year
ended 28 February 2009 except for the adoption of IAS 1 (revised) - Presentation
of Financial Statements, IFRS 8 - Operating Segments and IFRS 7 (amendment) -
Enhancing Disclosures about Fair Value and Liquidity Risk, the impact of which
is on the presentation of the information rather than the measurement.
The group`s auditors, PricewaterhouseCoopers Inc., reviewed the results and
their unqualified report is available at Tradehold`s registered office.
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.
CH Wiese C Moore
Chairman Director
Luxembourg
29 April 2010
Date: 03/05/2010 16:36:01 Produced by the JSE SENS Department.
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