| Fri 24 Mar 2006, 16:12 | | Putprop Limited - Interim report for the six month |
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PPR
PPR
Putprop Limited - Interim report for the six months ended 31 December 2005
Putprop Limited(Incorporated in the Republic of South Africa)(Registration
number 1988/001085/06)Share code: PPR ISIN: ZAE000072310("Putprop" or "the
Company")
Interim report for the six months ended 31 December 2005
Income Statement
Six months ended Year ended
31 December 30 June
2005
Change (audited)
%
2005 2004
(unaudited) (unaudited
Rm and restated)
Rent received 11.0 11.9 (7.6) 23.9
Interest received 1.0 0.5 100.0 1.2
Revenue 12.0 12.4 (3.2) 25.1
Property revaluation - (1.0) (100.0) 7.5
adjustments
Operating expenses 2.1 1.2 75.0 2.6
Operating profit 9.9 10.2 (2.9) 30.0
Finance cost - -
Profit before taxation 9.9 10.2 (2.9) 30.0
Taxation 2.8 4.1 (31.7) 8.4
Net profit for the 7.1 6.1 16.4 21.6
period
Shares in issue 28.8 28.8 28.8
(weighted average
number)(millions)
Earnings per share 24.7 21.2 16.4 75.0
(cents)
Dividends per share 25.0 30.0 (16.7) 55.0
(cents)
Reconciliation of
headline earnings
Net profit for the 7.1 6.1 21.6
period
Adjusted for:
Fair value adjustments - 1.0 (7.5)
on investment
properties
Headline earnings 7.1 7.1 14.1
Basis of preparation and Accounting policies
These unaudited financial results for the six months ended 31 December 2005 have
been prepared in accordance with accounting policies that comply with
International Financial Reporting Standards ("IFRS"), IAS34- Interim Financial
Reporting with the date of transition to IFRS for the group being 1 July 2004.
There has been no impact on the income statement or the balance sheet for prior
years due to the adoption of IFRS. IFRS 1 - First-time adoption of IFRS has
been applied in the preparation of the interim financial report. No adjustments
were required to the amounts previously stated in the annual financial
statements and to the opening IFRS balance sheet at 1 July 2004. Putprop has
already complied with the requirements of IAS17 - Leases, where property income
reflects rental income recognised on a straight line basis, in preparing its
June 2005 year end financial statements. Comparative figures as at December 2004
in respect of the above have been restated accordingly. The accounting policies
are consistent with those applied for the year ended 30 June 2005.
Balance sheet
31 December 30 June
2005
(audited)
2005 2004
(unaudited) (unaudited
and restated)
Rm
ASSETS
Non-current assets 88.1 78.1 82.1
Investment properties 85.7 78.1 82.1
Investment in property shares 2.4 - -
Current assets 57.8 60.9 63.6
Property held for development 13.6 13.6 13.6
Accounts receivable 19.9 20.2 19.8
Taxation receivable 2.3 1.2 1.7
Cash and cash equivalents 22.0 25.9 28.5
Total assets 145.9 139.0 145.7
EQUITY AND LIABILITIES
Equity capital and reserves 138.3 130.1 138.4
Non-current liabilities 5.1 6.3 5.8
Current liabilities 2.5 2.6 1.5
Total equity and liabilities 145.9 139.0 145.7
CAPITAL EXPENDITURE
COMMITMENTS
- incurred - - -
- authorised but not - - -
contracted for
RATIOS
Net asset value per share 480 452 481
(cents)
Cash flow statement
Six months ended Year ended
31 December 30 June
2005
(audited)
2005 2004
(unaudited) (unaudited)
Rm
Cash (outflow)/inflow from (0.5) 5.0 3.0
operating activities
Cash receipts from customers 10.9 21.5 33.3
Cash paid to suppliers (1.0) (0.1) (2.1)
Net cash generated from 9.9 21.4 31.2
operations
Net finance income 1.0 0.6 1.2
Taxation paid (4.2) (8.3) (13.6)
Dividends paid (7.2) (8.7) (15.8)
Cash (outflow)/inflow from (6.0) 5.4 10.0
investing activities
Additions to investment (3.6) (0.1) -
properties
Investment in property shares (2.4) - -
Proceeds on disposal of property - 5.5 10.0
Net (decrease)/increase in cash (6.5) 10.4 13.0
and cash equivalents
Cash and cash equivalents at 28.5 15.5 15.5
beginning of the period
Cash and cash equivalents at end 22.0 25.9 28.5
of the period
Statement of changes in equity
Share
capital and Distributable Total
premium reserves
Half year ended 31 December Rm Rm Rm
2004
At 30 June 2004 as previously 4.1 113.5 117.6
stated
Rent escalation adjustments 15.0 15.0
At 30 June 2004 restated 4.1 128.5 132.6
Earnings per income statement 6.1 6.1
Dividend paid (8.7) (8.7)
At 31 December 2004 4.1 125.9 130.0
Half year ended 31 December Rm Rm Rm
2005
At 30 June 2005 4.1 134.3 138.4
Earnings per income statement 7.1 7.1
Dividend paid (7.2) (7.2)
At 31 December 2005 4.1 134.2 138.3
GENERAL REVIEW
Revenue decreased by 3.2%, from R 12.4 million to R 12.0 million, compared to
the same period last year. Interest received increased from
R0.5 million to R1.0 million. Operating expenditure increased by 75.0%, from
R1.2 million to R2.1 million, largely due to accelerated efforts in bolstering
the routine maintenance on our properties. The increased level of maintenance
costs were budgeted for the year. Operating profit decreased by 2.9%, from R10.2
million to R9.9 million. This was mainly as a result of the effect of the
negative straight-line rent escalation adjustment of R2.4 million, compared with
R1.7 million in 2004, as required in terms of IAS17, "Leases". Profit after tax
increased from R6.1 million to R7.1 million, an increase of 16.4%. We acquired
additional fixed assets at a cost of R6.0 million, to ameliorate the loss in the
current rental revenue. Cash and cash equivalents stand at R22.0 million.
VALUATION OF PROPERTIES
The directors have again performed an assessment of all the properties. It is
their considered opinion that the previous valuations done at the year-end, June
2005, are still valid as the conditions and assumptions used in these external
valuations have not changed materially. There are therefore no adjustments under
"revaluations of properties" in the income statement for the period under
review.
LOANS
The Company has no loans.
CAPITAL COMMITMENTS
The Company has to date incurred development costs of R0.06 million, related to
the Lonehill property. These costs are reflected under "property held for
development" in the balance sheet.
NAME CHANGE
The name of the company was changed from Putco Properties Limited to PUTPROP
LIMITED on Monday the 21st November 2005. We have also changed the company"s
logo and colour. This was done in order to effectively describe and identify the
company"s core business and differentiate the brand of the company from a market
perspective.
FUTURE PROSPECTS
In line with our previously stated strategic objectives we have purchased two
office blocks in Studio Park, Lonehill business complex. The existing tenant
(previous owner) has entered into a rental agreement for one year, with an
option to extend the agreement. This investment will start to show an income
stream commencing March 2006.
In addition, we have purchased a 17,5% share in a shopping/office complex in the
eastern part of Tshwane. The official opening of the development is scheduled
for December 2006. We are also considering purchasing a 10% share in a major
shopping/office complex in Centurion, Tshwane.
These are longer-term investments and the income-streams will only materialise
in 2007/2008. We anticipate an increase in the value of the underlying
investment as well.
We are continually looking to invest in suitable office/retail/ warehousing
complexes in order to replace the rental income streams that we have lost as a
result of the sale of some of our bus-depot premises, as advised in previous
reports. Our positive cash position allows us to more easily pursue our stated
mission: "To develop Putprop into a property investment company by acquiring
quality, income producing retail and office properties and to dispose of
properties that do not fall into our current client"s long-term plans".
As part of the process towards the promulgation of our property at Lonehill Ext
85 we were subsequently required to have an environmental investigation carried
out on the site. A rare species of grass, Egoli Granite Grassland, was
identified on the property, covering approximately 2 hectares and this caused a
delay in the application.
Subsequent discussions held with GDACE (Gauteng Department of Agriculture,
Conservation and Environment) indicate that the area in question may not be
large enough to be retained, or that it would be sustainable. The ecological
report has been submitted to GDACE as per their requirements. We estimate that
the Town Planning decision will take place at the end of July 2006.
DIVIDEND DECLARATION
The directors have decided to declare a dividend of 20 cents (31 December 2004:
25 cents) per share, in respect of the six-month period ended 31 December 2005,
payable on MONDAY, 24 APRIL 2006. The last day to trade to participate in the
dividend will be WEDNESDAY, 12 APRIL 2006, and shares will commence trading ex-
dividend from the start of business on THURSDAY, 13 APRIL 2006 and the record
date will be FRIDAY, 21 APRIL 2006.
Shareholders may not dematerialise or rematerialise their shares between
THURSDAY, 13 APRIL 2006 and FRIDAY 21 APRIL 2006, both dates inclusive.
A B Adrian (Chairman)
A Carleo (Chief Executive Officer)
E M R L Oldham (Managing Director)
Registered Office Transfer Secretaries
Carlin House Computershare Investor Services
No. 8, 4th Street 2004 (Proprietary) Limited
Wynberg 70 Marshall Street
Sandton 2090. Johannesburg 2001
Company Secretary Sponsor
D Campbell C A (Scotland) Ernst & Young Sponsors (Pty) Ltd
24 March 2006
Date: 24/03/2006 04:12:17 PM Produced by the JSE SENS Department
