STEWART & WIGHT PLC Stewart & Wight PLC
Interim results for the six months ended 30 September 2015
I am pleased to report that the Company made a net profit of £522,125 after expenses and taxation for the half-year to 30 September 2015 compared with £271,588 for the similar period in 2014. Gross rental income from the Companies profits fell slightly from £456,639 to £421,177. Property operating expenses were down from £29,440 to £12,905. Administrative expenses were also down from
£63,322 to £51,931.
During the year, the Company purchased a property in Gloucester, details of which have already been given in our annual report. It was necessary to borrow in order to fund the purchase and this is the reason why interest payments increased from £691 to £11,085.
Towards the end of the year the Company sold its property in Pickering for £605,000 which was slightly over the valuation figure of £600,000 as at 31 March 2015. The remainder of the Company's properties were revalued by the Board at £10,985,000, which figure has been incorporated into the balance sheet at 30 September 2015.
All of the Company's tenants are up-to-date with their rental payments but two of the properties are still let on temporary tenancies. In general, rents in the High Street have still not risen to their previous levels.
The Board would like to add further properties to the Company's portfolio but are finding it difficult to make suitable acquisitions. Negotiations are in hand to purchase a property in Suffolk but they are proving to be difficult to complete.
The net asset value of the Company's shares rose from £6.36 in March 2015 to £6.62 as at 30 September 2015.
The Board has decided to leave a decision as to the payment of an interim divided until early in 2016.
MICHAEL CONN
Chairman
12 November 2015
Consolidated statement of comprehensive income (unaudited) for the six months ended 30 September 2015 | |||
Six | Six | ||
months to | months to | Year to | |
£ | £ | £ | |
Gross rental income | 421,177 | 456,639 | 942,025 |
Property operating expenses | (12,905) | (29,440) | (110,724) |
Net rental income | 408,272 | 427,199 | 831,301 |
(Loss)/profit on disposal of investment property | (5,996) | 22,155 | 22,155 |
Profit on disposal of non-equity investments | - | 47,305 | 82,985 |
Valuation gains on investment property | 410,000 | 100,000 | 559,599 |
Valuation losses on investment property | (158,084) | (175,000) | (445,000) |
Administrative expenses | (51,931) | (63,322) | (104,923) |
Net operating profit before financing | 602,261 | 358,337 | 946,117 |
Financial income | - | 184 | - |
Financial expenses | (11,085) | (691) | (1,054) |
Profit before taxation | 591,176 | 357,830 | 945,063 |
Taxation (note 4) | (69,051) | (86,242) | (169,745) |
Profit/(loss) for financial period | 522,125 | 271,588 | 775,318 |
Earnings per share (note 5) | 33.32p | 17.36p | 49.49p |
30/09/2015 30/09/2014 31/03/2015
30 Sept 30 Sept 31 March
2015 2014 2015
Assets | £ £ £ |
Non-current assets | |
Investment property (Note 3) | 10,985,000 9,235,000 10,195,000 |
Total non-current assets | 10,985,000 9,235,000 10,195,000 |
Current assets | |
Non-equity Investment | - 206,836 - |
Cash and cash equivalents | 723,030 609,470 118,428 |
Total current assets | 723,030 816,306 118,428 |
Total assets | 11,708,030 10,051,306 10,313,428 |
Liabilities | |
Current liabilities | |
Interest bearing loan and borrowings | 50,000 - - |
Current tax | 67,971 86,242 31,164 |
Trade and other payables | 265,881 256,610 320,436 |
Total current liabilities | 383,852 342,852 351,600 |
Non-current liabilities | |
Interest bearing loan and borrowings | 950,000 - - |
Total non-current liabilities | 950,000 - - |
Total liabilities | 1,333,852 342,852 351,600 |
Net assets | 10,374,178 9,708,454 9,961,828 |
Equity | |
Capital and reserves | |
Called up share capital | 89,866 89,866 89,866 |
Other reserves | 25,670 25,670 25,670 |
Share premium reserve Capital reserve Revaluation reserve Retained earnings | 246,000 246,000 246,000 - - - - - 10,012,642 9,346,918 9,600,292 |
Total equity | 10,374,178 9,708,454 9,961,828 |
Consolidated cash flow statement (unaudited) for the six months ended 30 September 2015 | Six Six months to months to Year to |
£ £ £ | |
Operating activities | |
Profit for the period | 522,125 271,588 775,318 |
Adjustments for: | |
Net valuation losses on investment property | (251,916) 75,000 (114,599) |
Loss/(profit) on disposal of investment property | 5,996 (22,155) (22,155) |
Profit on disposal on non-equity investment | - (47,305) (82,985) |
Interest expense | 11,085 507 1,054 |
Tax expense | 69,051 86,242 169,745 |
Operating profit before changes | 356,341 363,877 726,378 |
in working capital and provisions | |
Changes in receivables | - - - |
Changes in payables | (54,555) (65,989) (2,162) |
Cash generated from operations | 301,786 297,888 724,216 |
Net interest paid | (11,085) (507) (1,054) |
Tax paid | (32,244) (15,397) (153,979) |
Cash flow from operating activities | 258,457 281,984 569,183 |
Investing activities | |
Purchase of investment property | (1,138,084) - (770,401) |
Sale of investment property Purchase of investment | 594,004 82,155 82,155 - - - |
Sale of investment | - 357,482 599,998 |
Cash outflow from change in debt | 1,000,000 (138,725) (138,725) |
Cash used in investing activities | 455,920 300,912 (226,973) |
Financing activities | |
Dividend paid | (109,775) (109,949) (360,305) |
Cash flow from finance activities | (109,775) (109,949) (360,305) |
Net (decrease)/increase in cash and cash | |
equivalents | 604,602 472,947 (18,095) |
Cash and cash equivalents at 1 April 2015 | 118,428 136,523 136,523 |
Cash and cash equivalents at 30 September 2015 | 723,030 609,470 118,428 |
30/09/2015 30/09/2014 31/03/2015
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