| Thu 15 Feb 2001, 0:00 | | Pangbourne Properties Ltd - Interim Results For 6 |
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Pangbourne Properties Ltd - Interim Results For 6 Months To 31/12/00
Release Date: 15/02/2001 07:59:25Code(s): PAP
© 2001 SharenetPangbourne Properties Limited
Unaudited financial results for the six months ended 31 December 2000
Issued share capital
81 196 026 (1999: 64 567 263) ordinary shares of 1 cent each
Issued debentures
730 764 234 (1999: 581 105 367)
unsecured variable rate debentures of 50 cents each
Issued combined units
81 196 026 (1999: 64 567 263)
Weighted average combined units
79 336 513 (1999: 64 567 263)
- Abridged consolidated income statement
Six months to Year to
R'000 31.12.00 31.12.99 30.06.00
Revenue 62 027 46 511 102 795
Operating income 43 409 31 338 71 686
Net loss on disposal of properties 1 370 2 094 4 875
Depreciation 495 271 682
Income before interest
and taxation 41 544 28 973 66 129
Interest paid (10 305) (4 361) (12 801)
Income before taxation and
distribution to unitholders 31 239 24 612 53 328
Taxation 80 65 182
31 159 24 547 53 146
Transfer from non-distributable
reserves 1 370 2 094 4 875
32 529 26 641 58 021
Attributable to outside
shareholders - 162 -
32 529 26 479 58 021
First interim distribution to
unitholders 4 016 - -
Available for distribution 28 513 26 479 58 021
Second interim distribution to
unitholders 28 419 26 473 57 934
Transfer to distributable reserves 94 6 87
Headline earnings per unit (cents) 41,00 41,01 89,73
Earnings per unit (cents) 39,27 37.77 82,19
First interim distribution per
unit (cents) 6,00 - -
Second interim distribution per
unit (cents) 35,00 41,00 88,00
Total distribution per unit
(cents) 41,00 41,00 88,00
Headline earnings per share
(cents) 0,92 0,81 1,89
Loss per share (cents) (0,81) (2,42) (5,65)
Dividend per share (cents) 0,80 0,80 1,70
First interim distribution
to unitholders
Debenture interest 3 937 - -
Dividends 79 - -
Total first interim distribution
(paid 9 October 2000) 4 016 - -
Second interim distribution to
unitholders
Debenture interest 27 862 25 954 56 798
Dividends 557 519 1 136
Total second interim distribution 28 419 26 473 57 934
- Movement in unitholders' funds
Six months to Year to
R'000 31.12.00 31.12.99 30.06.00
Unitholders' funds at beginning
of period 495 634 446 773 446 773
Shares issued - - 23 253
Debentures issued - - 74 829
Loss on sale of properties (1 370) (2 094) (4 875)
Arising on acquisition of
properties - (132) 13 677
Arising from revaluation of
properties - - (58 110)
Undistributed profit for
the period 94 6 87
Unitholders' funds at end of
period 494 358 444 553 495 634
- Abridged consolidated balance sheet
As at
R'000 31.12.00 31.12.99 30.06.00
ASSETS
non-current assets
Property, plant and equipment 714 488 498 418 650 354
Goodwill 1 000 - -
Long-term loans 36 420 20 350 32 598
Current assets
Receivables 57 521 41 632 49 408
Cash and cash equivalents - 538 2 206
809 429 560 938 734 566
EQUITY AND LIABILITIES
Unitholders' funds 494 358 444 553 495 634
Interest bearing borrowings 258 263 79 310 181 645
Non-interest bearing debt 12 558
current liabilities
Payables 15 831 12 415 25 825
Unitholders for distribution 28 419 24 660 31 462
809 429 560 938 734 566
Net debt : property value 38,1% 16,0% 27,6%
Net debt : equity 54,8% 17,7% 36,2%
Net asset value per unit (cents) 609 689 610
- Abridged consolidated cash flow statement
Six months to Year to
R'000 31.12.00 31.12.99 30.06.00
Cash generated from operations 43 409 31 175 71 686
Working capital changes (21 055) (15 073) (25 622)
Interest paid (10 305) (4 361) (12 801)
Taxation (paid) /received (24) (157) 955
Distributions to unitholders (36 086) (28 808) (53 468)
Cash flows from operating
activities (24 061) (17 224) (19 250)
Cash flows from investing
activities (4 589) 19 097 (192 482)
Cash flows from financing
activities 19 865 (59 085) 156 188
Net decrease in cash and
cash equivalents (8 785) (57 212) (55 544)
Cash and cash equivalents at
beginning of period 2 206 57 750 57 750
Cash and cash equivalents at end
of period (6 579) 538 2 206
Accounting policies
The accounting policies stated in the 2000 annual report have been consistently
applied and comply with the statements of GAAP.
Operational review
Headline earnings for the half year of 41 cents per unit are unchanged from the
previous year. Total distributions for the period of 41 cents per unit have
been declared (1999: 41 cents), of which 6 cents per unit was paid in October
2000 to unitholders registered on 21 July 2000.
The past six months has been an extremely challenging period for the economy as
a whole and for the rental market in particular. The anticipated improvement in
economic activity failed to materialise and in addition the company suffered
from a number of insolvencies amongst its retail tenants. The industrial rental
market in particular, continues to be flat and rental income is consequently
below budget. Cost reductions have resulted in a rise in net income from
properties. Occupancies in the total portfolio have been increased from 92,4%
at 30June 2000 to 93,5% at 31December 2000. The benefit of this will begin to
flow in the second half.
On 21 December 2000, the company announced the acquisition of a high-quality
portfolio of industrial and commercial properties, mainly in Midrand and
Kyalami Business Park, at a cost of R71,3 million. The results for the first
half of the year have benefited from this acquisition, which was effective from
1 November 2000. Further benefits will accrue in the second half.
During the period, three under-performing properties were sold for a
consideration of R7,9 million at a loss of
R1,3 million. An agreement has been concluded for the sale of another property
for R8,7 million, at a profit of R300000. It is anticipated that further sales
will be finalised before year end. Agreements have been signed for the
acquisition of three A-grade single-tenant industrial properties in Mahogany
Ridge in KwaZulu-Natal for R12 million.
The company's short-term finance subsidiary, Paforma, continued to grow its
business, increasing its lending book from R34 million at 30 June 2000 to R40
million at 31December 2000. It was, however, deemed prudent to make an
exceptional provision of R3 million against its debtor book. Despite this
provision, Paforma made an operating profit of R1,4 million for the six months.
PROSPECTS
It is unlikely that the effect of the expected economic growth in South Africa
will benefit Panbourne significantly in the second half of the financial year.
There should, nevertheless, be modest growth in earnings from the property
business. The contribution from Paforma will also be positive.
As reported in the last annual report, there are a number of long leases
expiring during the year to 30 June 2002 where current rentals exceed market
rentals.This will put pressure on earnings in that year.The board remains
confident that the recent acquisitions and the ongoing upgrading of the quality
of the property portfolio have positioned Pangbourne for future growth.
STRATE
Pangbourne's units will shortly be moving on to the STRATE system (elecronic
and custody system).
The date for dematerialisation is 14 May 2001, when Pangbourne units will be
transferred onto the electronic STRATE environment. This is in terms of the
JSE's revised listing requirements and further information will be forwarded to
unitholders to inform them of the process required for dematerialisation.
P L Campbell Chairman
A M A Campbell CEO
Declaration of dividend and debenture interest
Notice is hereby given of the declaration of a second interim distribution of
35,00 cents per combined unit (2000: 41,00 cents) payable to unitholders
registered on 23March 2001, comprising dividend number 28 of 0,6863 cents per
share (2000: 0,8039 cents) and interest on debentures calculated at 34,3137
cents per combined unit (2000: 40,1961 cents). Attention must be drawn to the
fact that a first interim distribution was paid on 9 October 2000 to
unitholders registered on 21 July 2000 at 6,00 cents per combined unit. This
brings the total distribution at half year to 41,00 cents per combined unit.
Payment for the dividend and debenture interest of 35,00 cents per combined
unit will be effected on or about 17 April 2001.
On behalf of the board
J J Groenewald Secretary
Pangbourne Properties Limited
2nd Floor 382 Jan Smuts Avenue
Craighall Johannesburg
14 February 2001
