| Wed 15 Aug 2001, 0:00 | | Audited Financial Results For The Year Ended 30 Ju |
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Pangbourne Properties Limited
Registration No. 1987/002352/06
Issued share capital
81,582,361 (2000: 66 939 763) ordinary shares of 1 cent each
Issued debentures
734,241,249 (2000: 602 457 867)
unsecured variable rate debentures of 50 cents each
Issued combined units
81,582,361 (2000: 66 939 763)
Weighted average combined units
80,395,064 (2000: 64 664 497)
* Abridged consolidated income statement
Year to
R'000 30.06.01 30.06.00
Restated
Revenue 136 530 102 795
Operating profit 81 113 71 004
Revaluation of investment properties 8 528 (58 110)
Net goodwill amortised and realised 8 962 12 478
Net loss on disposal of investment properties (1 707) (4 875)
Profit before interest and taxation 96 896 20 497
Investment income 219 -
Interest received 5 502 7 397
Interest paid (28 335) (20 198)
Profit before taxation and distributions
to unitholders 74 282 7 696
Taxation 2 276 18 714
Profit for the year 76 558 26 410
Opening retained earnings as restated 11 622 43 146
Opening retained earnings as previously
reported 494 407
Change in accounting policies 11 128 42 739
Retained earnings before distributions 88 180 69 556
Distributions to unitholders (70 779) (57 934)
Closing retained earnings 17 401 11 622
Diluted and non-diluted
Earnings per unit (cents) 95,23 40,84
Headline earnings per unit (cents) 80,06 89,73
Distributions per unit (cents) 88,00 88,00
Diluted and non-diluted
Earnings per share (cents) 6,99 (46,99)
Headline earnings per share (cents) (8,18) 1,89
Dividends per share (cents) 1,73 1,73
Distribution to unitholders (R'000)
Debenture interest 69 392 56 798
Dividends 1 387 1 136
Total distributions 70 779 57 934
* Abridged consolidated balance sheet
As at
R'000 30.06.01 30.06.00
Restated
ASSETS
non-current assets
Property, plant and equipment 737 502 650 354
Net goodwill (3 956) (42 579)
Investments 3 111 -
Long-term loans 32 585 32 598
Deferred tax asset 1 158 -
current assets
Receivables 47 071 49 408
Current portion of long-term loans 1 859 -
Cash and cash equivalents - 2 206
819 330 691 987
EQUITY AND LIABILITIES
Unitholders' interest 461 114 453 055
Deferred tax liability 26 021 -
Interest-bearing borrowings 247 206 164 130
Current portion of interest-bearing borrowings 27 613 17 515
current liabilities
Payables 18 483 25 825
Bank overdraft 114 -
Unitholders for distribution 38 779 31 462
819 330 691 987
Net debt : equity 59.6% 39.6%
Net debt : property value 37.5% 27.6%
Net asset value per unit (cents)
excluding negative goodwill 601 610
* Movement in unitholders' interest
Year to
R'000 30.06.01 30.06.00
Restated
Unitholders' interests at beginning of year 453 055 446 773
Profit for the year 76 558 26 410
Capital transactions and distributions
to unitholders (68 499) 40 148
Share capital issued 4 23
Debentures issued 1 739 10 676
Linked units to be issued - 84 441
Share premium on issue 537 2 942
Distributions to unitholders (70 779) (57 934)
Change in accounting policy - (60 276)
Unitholders' interest at end of year 461 114 453 055
* Abridged consolidated cash flow statement
Year to
R'000 30.06.01 30.06.00
Restated
Cash generated from operations 78 687 46 064
Net interest paid (22 834) (12 801)
Investment income 219 -
Taxation (paid) refunded (496) 955
Distributions to unitholders (63 462) (53 468)
Cash flows from operating activities (7 886) (19 250)
Cash flows from investing activities (86 754) (192 482)
Cash flows from financing activities 92 320 156 188
Net decrease in cash and
cash equivalents (2 320) (55 544)
Cash and cash equivalents at beginning
of year 2 206 57 750
Cash and cash equivalents at end of year (114) 2 206
Accounting policies
Accounting policies have been applied in accordance with the South African
Statements of Generally Accepted Accounting Practice.
Changes in accounting policies have arisen as a result of the adoption of
AC131 (business combinations) and the early adoption of AC135 (investment
property). This necessitated restating the prior year figures as well as the
raising of deferred taxation in terms of AC102 (income taxes).
The business combinations statement requires the recognition and
amortisation of the negative goodwill which arose on the acquisitions of RMS
and Grove.
The negative goodwill was previously included in non-distributable reserves.
The early adoption of the statement on investment property has resulted in
all revaluations and profits and losses on sale of properties being included
in profit for the year. Profits and losses on sale of properties were
previously transferred to non-distributable reserves and revaluations were
taken directly to non-distributable reserves.
Whilst the application of AC102 is not material to the results or the
financial position of the company in the current year, the directors note
with concern that the effect is to introduce deferred tax on the acquisition
and revaluation of properties.
Other than the changes mentioned above, the accounting policies as set out
in the 2000 annual report have been consistently applied.
It should be noted that the property portfolio is managed on an individual
property basis and therefore no segmental information has been presented.
RESULTS
Distributions have been maintained at 88 cents per unit for the year to 30
June 2001. The property business has delivered a steady performance in what
has been a tough year. Industrial properties suffered from a lack of growth
in the businesses of their tenants and retail properties were under pressure
from weak consumer demand. Commercial properties performed better than
expected and the company is fortunate in not having exposure to declining
CBD areas nor the over-traded Sandton node.
Meaningful overall cost reductions following the acquisitions of the RMS and
Grove properties have been achieved as well as from a continuing focus on
recoveries from tenants. Many of these savings are ongoing and further
benefits will be achieved in the coming year. Occupancies increased
marginally during the year and stood at 93,1% as at 30 June 2001 (2000 -
92,4%).
Paforma, which is engaged in the discounting of estate agents' commission,
funding of transfer duty on property purchases and lending against the
equity in property transactions, had a mixed year. The core business has
shown excellent growth. Paforma, however, was the victim of fraud, causing
significant bad debts in areas of the business that have since been
discontinued. A provision of R11,5 million was made against the debtor's
book.
This resulted in a loss for Paforma of R3,7 million. Paforma's forecasts
indicate good growth in its core business.
During the year, the property portfolio increased significantly with the
purchase of 18 prime properties for a consideration of R92 million. Five
under-performing properties were sold for an amount of R24 million,
resulting in a loss of R1,7 million. This action has significantly improved
the quality of the portfolio.
PROSPECTS
Economic conditions and the prospect of further reductions in interest rates
should be favourable for the property sector and Pangbourne is well
positioned to benefit from this.
P L Campbell Chairman
A M A Campbell CEO
Declaration of dividend and debenture interest
Notice is hereby given of the declaration of a final distribution of 47,00
cents per combined unit (2000: 47,00 cents), comprising dividend number 29
of 0,9216 cents per share (2000: 0,9216 cents) and interest on debentures
calculated at 46,0784 cents per combined unit (2000: 46,0784 cents). The
last date to trade cum distribution will be Friday, 14 September 2001, and
the combined units will commence trading ex distribution from the
commencement of business on Monday, 17 September 2001, with the record date
being Friday, 21 September 2001. Payment of the dividend and debenture
interest of 47 cents per combined unit will be effected on or about 8
October 2001.
On behalf of the board
J J Groenewald Secretary
Pangbourne Properties Limited
2nd Floor 382 Jan Smuts Avenue
Craighall Johannesburg
14 August 2001
