TIDMBA59
RNS Number : 0752L
Capital Shopping Centres PLC
29 April 2010
29 April 2010
Capital Shopping Centres PLC (the "Company")
ANNUAL FINANCIAL REPORT
Capital Shopping Centres PLC has today published its Annual Report for the year
ended 31 December 2009 ("Annual Report"). The Annual Report is available for
download at www.liberty-international.co.uk.
Two copies of the Annual Report have been submitted to the Financial Services
Authority, and will shortly be available for inspection at the Financial
Services Authority's Document Viewing Facility, which is situated at:
The Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS
Telephone: 020 7066 8333
In accordance with DTR 6.3.5, the following information is extracted from the
Company's Annual Report and in unedited full text.
Management Report
Principal Activities
The Capital Shopping Centres PLC Group ("the Group") specialises in the
ownership, management and development of prime UK regional shopping centres. It
currently has interests in eight of the top 30 centres in the UK and is the
market leader in its field. The Group, incorporated in the UK, has always
focused on retail assets of the highest quality.
The Group's prime regional centres aim to provide variety, diversity and volume
of shops in a single location containing the most attractive flagship and
department stores, offering the best services and providing a safe, stress-free
and rewarding experience.
Review of Business and Future Developments
The Group's results and financial position for the year ended 31 December 2009
are set out in full in the consolidated income statement, the Group and parent
company statements of comprehensive income, the Group and parent company balance
sheets, the Group and parent company statements of changes in equity, the Group
and parent company statements of cash flows and the related notes. The Group's
loss before taxation was GBP324.7 million (2008 loss GBP1,551.1 million). The
Group's net assets attributable to equity shareholders were reduced from GBP279
million to GBP53 million, largely due to the property revaluation deficit in the
year of GBP425 million. Net debt increased by GBP17 million to GBP2,753 million
at 31 December 2009.
Financial Economic Background
The UK economy has been through an extended recession lasting six quarters from
the second quarter of 2008 until a nominal recovery in the last quarter of 2009.
The cumulative fall in GDP amounted to some six per cent, an exceptionally
severe downturn for a developed Western economy. The property industry as a
cyclical sector employing leverage has been hard hit. However, financial market
conditions began to improve from March 2009 due to substantial monetary easing
from the Government. This drove a recovery in stock markets, improved liquidity
in debt markets with spreads narrowing substantially and led to a recovery in
the UK direct property investment market to an extent which could not have been
anticipated 12 months ago. By way of illustration, the FTSE 350 Real Estate
Index actually increased year on year by eight per cent and recovered by 88 per
cent from its low on 9 March 2009. However, the index at 31 December 2009 still
stood at 64 per cent below its peak in early 2007. With UK Government borrowing
as a percentage of GDP at a record peace time level, economic growth rates are
likely to be restrained for some years as future Governments attempt to reduce
the extent of the stimulus whether from public sector expenditure restraint or
higher taxes. As a business focused on retail property, we need to plan on the
basis of a continued challenging economic background.
Group's Strategy
The Group's strategy is to maintain a market leading position as an active
owner, manager and developer of prime UK regional shopping centres. The Group
undertakes asset and centre management initiatives across its existing centres,
combined with selective acquisitions and disposals, with the aim of delivering
strong long-term returns for shareholders through income and capital growth. The
Group is committed to active tenant management and ongoing investment in its
shopping centres with the aim of creating, through a mix of retail, catering and
leisure facilities, a compelling choice for both retailers and the shopping
public.
Key Achievements
Notwithstanding market conditions, the Group succeeded in avoiding disposals of
core assets at depressed prices. The principal achievements of the year were as
follows:
Occupancy levels at the Group's centres re-established to approximately 98 per
cent after falling substantially below this figure during the year as a result
of tenant failures.
The 1 million sq. ft. major St David's Cardiff extension opened successfully in
October, now 71 per cent committed by income, 74 per cent by area.
Since the year end there has been a GBP525 million refinancing of Lakeside,
Thurrock in January 2010 ahead of the CMBS maturity in mid 2011. The Group's
next asset specific debt maturity is not until the second half of 2014.
Market Overview
The Group's focus is the top 50 million sq. ft. of UK shopping centre locations,
some four per cent of the UK's 1.3 billion sq. ft. of retail space of which it
owns 25 per cent by area, including 8 of the UK's top 30 shopping centres. The
UK recession, from the second quarter of 2008 to the end of 2009, and difficult
credit market conditions which generated significant retailer failures
inevitably affected all UK shopping centres. However, the lowest falls and
earliest recovery in occupancy have been in the larger prime centres such as
those owned by the Group. Here, a wide range of catering and leisure offerings
plus a strong national and international tenant mix and robust footfall have
reinforced the status of the destinations to retailers reviewing their store
strategy.
These assets benefit from the significant barriers to entry imposed by the UK's
restrictive planning environment. The reduction in the supply pipeline of major
retail developments in the UK as a consequence of economic conditions underpins
the scarcity value, with the prospect of limited additional competition in the
short and medium-term. While online shopping is an important and growing medium,
the vast majority of total UK sales are still achieved across the counter in
stores. We have seen the most successful retailers investing in both physical
stores and transactional websites. For example both John Lewis and River Island
have opened flagship stores in the Group's centres in the last six months whilst
also investing online. Clearly customers enjoy the convenience of online
shopping for some products but that does not preclude them from also visiting
shopping centres where they have a wide range of retail and catering comparison.
Investment Property Valuations
After a dismal start to the year, the UK property investment market reached its
trough mid way through 2009, and thereafter has strengthened as the improving
financial background including low short-term interest rates and currency
factors increased the attractiveness of prime UK property as an asset class.
The recovery was a welcome relief after the most torrid UK real estate price
collapse in the living memory of any active market participant, with the IPD
monthly all-property capital index ("IPD") at 30 June 2009 having fallen 44 per
cent. The eventual 2009 outcome was much better than 2008 with the IPD falling
by 5.6 per cent in 2009 compared to 27.1 per cent in 2008. The Group's regional
shopping centres have lagged behind the market recovery in the second half of
2009, which in its initial stages has been generally focused on assets of
smaller lot size. Overall, the Group continues to out perform IPD since the
downturn began in June 2007.
Occupancy and Tenancy Changes
Failures amongst the Group's tenants peaked in the last quarter of 2008 and the
first quarter of 2009 (five per cent and four per cent of the rent roll
respectively) and have subsequently slowed to around one per cent per quarter.
The Group's asset management team responded energetically to this excess supply,
documenting a significant number of tenancy changes. In achieving this outcome,
the Group benefited from its scale as the UK's leading owner of large-scale
shopping centres and its retail-focused relationships.
The Group's occupancy has recovered from approximately 94 per cent at 31
December 2008 to approximately 98 per cent at 31 December 2009, significantly
outperforming the UK large centres market average.
Net Rental Income
Despite the adverse environment, the Group's like-for-like net rental income
only declined by 1.8 per cent following a 4.3 per cent reduction in 2008.
At the gross level, the Group's like-for-like rental income fell by 2.4% per
cent compared to 2008 due to the tenant failures discussed above, but other
income held up well in the challenging economic environment such that gross
rental income increased by 1.6 per cent. As the retail environment stabilised
throughout the year, lease incentive write-offs reduced driving a significant
year-on-year favourable variance.
Other Operating Performance Indicators
Footfall across the Group's existing centres rose 2.4 per cent in the year,
outperforming the estimated overall reduction across the UK according to
Experian & Synovate. Like-for-like retailer sales are estimated to have
decreased marginally but to have outperformed UK national data (Office for
National Statistics non-food down two per cent). Weighted average lease maturity
increased marginally to six years and nine months. The next major round of lease
expiries is at the MetroCentre in 2011 which management have been addressing
proactively.
Developments and Active Management Projects
St David's, Cardiff, a 50:50 joint venture with Land Securities, had a highly
successful opening of the major extension in October: 1.3 million shoppers
visited the centre in the first week after launch with a number of retailers
reporting strong sales, many setting UK opening records. Ongoing feedback from
retailers indicates that a number of shops are now trading at comparable levels
with their strongest performing stores across the UK.
The 1 million sq. ft., 154 unit extension, now 74 per cent let by area, 71 per
cent by income, has transformed the city centre and elevated Cardiff to number
six in Experian's ranking of UK retail centres. 90 shops are now open, including
58 retailers new to Wales and the largest John Lewis store outside London. Now
that the quality of the centre is evident to retailers and critical mass has
been achieved, we anticipate firmer terms for letting the remainder of the
space.
The first two phases of MetroCentre, Gateshead's leisure and catering upgrade
opened during 2009 with the cinema and eight of the ten restaurants now either
open or committed. The final phase of a further 56,000 sq. ft. of retail space,
fully let, will open in Autumn 2010.
Future Investment Plans
The Group's parent company's placing conducted in October 2009 enabled the Group
to recommence investment plans that had been put on hold a year earlier. Active
management projects have been identified across most of the Group's centres, the
majority of which is expected to be spent or committed by the end of 2012.
These organic projects are individually revenue enhancing, often to meet the
needs of identified retailers and include reconfiguration and extension of the
former Woolworths store at MetroCentre, Gateshead, to create a new Major Space
User (MSU), unit amalgamations for new MSUs and roof boxes at Lakeside,
Thurrock, enhanced catering offering at Braehead, Glasgow from former leisure
facilities and reconfiguration at Victoria Centre, Nottingham to create further
retail space. In addition, in line with our strategy of organic growth and
recognising the increasing out performance of larger centres, the Group is
exploring the feasibility of major extensions to existing centres where there is
the potential for significant additional retail space. Investment decisions are
taken on a case-by-case basis and assessed against internal return requirements
on a risk adjusted basis.
2010 Priorities
Our priorities for 2010 are to make significant progress in the following areas,
the financial impact of which in terms of enhanced net rental income is not
likely to be seen until 2011 and beyond:
Re-letting short-term leases closer to ERV
Large space negotiations where price tension is greater
Commencing value-enhancing active management projects to create organic growth
opportunities not dependent on acquisition
Completing the initial letting of St David's, Cardiff
Cash Flow
The Group cash flow shows a net inflow of GBP215.8 million in 2009 from
operating activities. This is an increase of GBP149.0 million from 2008 largely
due to a favourable movement in working capital balances. The net outflow from
investing activities reflects the net investment in property assets during 2009.
The major components of the GBP101.5 million expenditure on the purchase and
development of property are the expenditure on the Group's major developments at
Cardiff and upgrading certain facilities at the MetroCentre.
Financial Position
The vast majority, over 90 per cent, of the Group's debt has been arranged on an
asset-specific basis. This structure permits the Group a higher degree of
financial flexibility in dealing with individual property issues than a
financing structure based on a single Group-wide borrowing facility.
In addition to the non-recourse debt, the Group had two corporate bonds
outstanding at 31 December 2008. The CSC 2009 bonds of GBP31.5 million were
repaid on 31 March 2009. The remaining outstanding bonds of GBP26.7 million are
due for repayment in 2013.
Net external debt, which excludes the MetroCentre compound financial instrument
of GBP129.9 million, increased from GBP2,616 million at 31 December 2008 to
GBP2,623 million at 31 December 2009. The Group had cash of GBP54 million at 31
December 2009. At this date the debt to assets ratio was 60 per cent (31
December 2008: 65 per cent).
Financial Covenants
The Group has financial covenants that apply to GBP2.6 billion of secured
non-recourse debt. The two main covenants are Loan to Value (LTV) and Interest
Cover (IC). The actual requirements vary and are specific to each loan. At 31
December 2009 GBP813 million of non-recourse loans had no loan to value
requirement. The Group is in compliance with all of its asset-specific loan
covenants other than the Xscape Braehead LTV covenant. Discussions between the
lender and the Partnership as to potential solutions to the breach are well
advanced.
Compliance with financial covenants is constantly monitored. In the case of
CMBS related debt and non-recourse bank loans, a potential breach would be
discussed with lenders. This could result in a re-negotiation or possible
waiving of the covenant. Actual covenant breaches can be rectified by a number
of remedies such as additional security, temporary cash deposit or partial
repayment before an event of default occurs.
Key Performance Indicators
The performance of the business is monitored through a number of Key Performance
Indicators (KPI's) including both financial and non-financial measures. The main
KPI's used by the Board to monitor the business are like-for-like net rental
income, occupancy and asset capital performance. These KPI's can be found in
this business review containing details of our portfolio and operational
performance and additionally in the notes to these financial statements, in
particular, note 15.
Directors' Responsibility Statement
The directors are responsible for preparing the Annual Report and the financial
statements in accordance with applicable law and regulations. Company law
requires the directors to prepare financial statements for each financial year.
Under that law the directors have elected to prepare the group and parent
company consolidated financial statements in accordance with International
Financial Reporting Standards (IFRSs) as adopted by the European Union. Under
company law the directors must not approve the financial statements unless they
are satisfied that they give a true and fair view of the state of affairs of the
Group and the company and of the profit or loss of the Group for that period. In
preparing these financial statements, the directors are required to:
· select suitable accounting policies and then apply them consistently;
· make judgements and estimates that are reasonable and prudent;
· state whether applicable IFRSs as adopted by the European Union have been
followed, subject to any material departures disclosed and explained in the
financial statements;
· prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the company's transactions and disclose with
reasonable accuracy at any time the financial position of the company and the
Group and enable them to ensure that the financial statements comply with the
Companies Act 2006 and, as regards the Group financial statements, Article 4 of
the IAS Regulation. They are also responsible for safeguarding the assets of
the company and the Group and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the company's
website. Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in other
jurisdictions.
Each of the directors, whose names and functions are listed in the Directors'
Report confirm that, to the best of their knowledge:
(a) the Group financial statements, which have been prepared in
accordance with IFRSs as adopted by the EU, give a true and fair view of the
assets, liabilities, financial position and loss of the Group; and
(b) the directors' report contained in the governance section of the
Annual Report includes a fair review of the development and performance of the
business and the position of the Group, together with a description of the
principal risks and uncertainties that it faces.
Signed on behalf of the Board on 28 April 2010
Director
Director
Key Risks and Uncertainties
The key risks and uncertainties facing the Group are as set out in the table
below which is reproduced from the Annual Report
+----------------+----------------+--------------+-----------------------------+
| Risk | Description | Impact | Mitigation |
+----------------+----------------+--------------+-----------------------------+
| Financing |
+------------------------------------------------------------------------------+
| These risks are discussed further in note 20 |
+------------------------------------------------------------------------------+
| Liquidity | Reduced | Insufficient | Efficient treasury |
| | availability | funds to | management and strict |
| | | | credit |
+----------------+----------------+--------------+-----------------------------+
| | | meet | control; |
| | | operational | |
| | | and | |
+----------------+----------------+--------------+-----------------------------+
| | | financing | Regular reporting of |
| | | needs | current and projected |
+----------------+----------------+--------------+-----------------------------+
| | | | position to the Board. |
+----------------+----------------+--------------+-----------------------------+
| Economic | Reduction in | Impact on | Regular monitoring of Loan |
| and | rental income | covenants | to Value (LTV) and |
+----------------+----------------+--------------+-----------------------------+
| property | Property | | Interest Cover Ratio (ICR) |
| market | values | | covenants; |
| | decrease | | |
+----------------+----------------+--------------+-----------------------------+
| downturn | | | Covenant headroom |
| | | | maintained; |
+----------------+----------------+--------------+-----------------------------+
| | | | Regular market valuations; |
| | | | Focus on quality |
+----------------+----------------+--------------+-----------------------------+
| | | | assets. |
+----------------+----------------+--------------+-----------------------------+
| Interest | Interest rates | Lack of | Hedging to establish |
| cover | fluctuate | certainty | long-term certainty. |
| | | over | |
+----------------+----------------+--------------+-----------------------------+
| | | interest | |
| | | costs | |
+----------------+----------------+--------------+-----------------------------+
| Market | Interest rates | Potential | Manage derivative contracts |
| price | fluctuate | cash | to achieve a |
| risk | | outflow | |
+----------------+----------------+--------------+-----------------------------+
| of fixed | resulting in | if | balance between hedging |
| rate | significant | derivative | interest rate |
| | | contract | |
+----------------+----------------+--------------+-----------------------------+
| derivatives | assets and or | contains | exposure and minimising |
| | liabilities on | break | potential cash calls |
| | | clause | |
+----------------+----------------+--------------+-----------------------------+
| | derivative | | |
| | contracts | | |
+----------------+----------------+--------------+-----------------------------+
| REIT | Breach REIT | Tax penalty | Regular monitoring of |
| | conditions | or be | compliance and |
+----------------+----------------+--------------+-----------------------------+
| | | forced to | tolerances; |
| | | leave the | |
+----------------+----------------+--------------+-----------------------------+
| | | REIT regime | |
+----------------+----------------+--------------+-----------------------------+
| Joint | Reliance on JV | Partners | Agreements are in place and |
| ventures | partners' | under | regular |
+----------------+----------------+--------------+-----------------------------+
| | performance | perform or | communication with |
| | and reporting | provide | partners. |
+----------------+----------------+--------------+-----------------------------+
| | | incorrect | |
| | | information | |
+----------------+----------------+--------------+-----------------------------+
| Asset management |
+------------------------------------------------------------------------------+
| Tenants | Tenant failure | Financial | Initial assessment of |
| | | loss | tenant covenant strength; |
+----------------+----------------+--------------+-----------------------------+
| | | | Regular reporting and |
| | | | modelling of tenant |
+----------------+----------------+--------------+-----------------------------+
| | | | covenant; |
+----------------+----------------+--------------+-----------------------------+
| | | | Active credit control |
| | | | process |
+----------------+----------------+--------------+-----------------------------+
| Voids | Increased | Financial | Policy of active tenant mix |
| | voids, failure | loss | management |
| | to | | |
+----------------+----------------+--------------+-----------------------------+
| | let | | |
| | developments | | |
+----------------+----------------+--------------+-----------------------------+
| Reputation |
+------------------------------------------------------------------------------+
| Responsibility | Failure of | Impact on | Annual audits carried out |
| for | Health & | reputation | by external |
| | Safety | | |
+----------------+----------------+--------------+-----------------------------+
| visitors | | or | consultants; |
| to | | potential | |
| | | criminal/ | |
+----------------+----------------+--------------+-----------------------------+
| shopping | | civil | Health & Safety policies in |
| centres | | proceedings | place. |
+----------------+----------------+--------------+-----------------------------+
| Business | Lost access to | Impact on | Documented Business |
| | centres or | footfall | Recovery Plans in place |
| | | and | |
+----------------+----------------+--------------+-----------------------------+
| interruption | head office | tenant | Security team training and |
| | | income | procedure in |
+----------------+----------------+--------------+-----------------------------+
| | | Adverse | shopping centres |
| | | publicity | |
+----------------+----------------+--------------+-----------------------------+
| | | | Terrorist Insurance is in |
| | | | place |
+----------------+----------------+--------------+-----------------------------+
| | | | Flu pandemic recovery plan |
| | | | documented |
+----------------+----------------+--------------+-----------------------------+
| People/HR |
+------------------------------------------------------------------------------+
| Staff | Key staff | Loss of key | Succession planning; |
| | | members | performance evaluation; |
+----------------+----------------+--------------+-----------------------------+
| | | of the | training and development; |
| | | management | |
+----------------+----------------+--------------+-----------------------------+
| | | team could | Incentive reward |
| | | impact | |
+----------------+----------------+--------------+-----------------------------+
| | | adversely | |
| | | on the | |
+----------------+----------------+--------------+-----------------------------+
| | | Group's | |
| | | success | |
+----------------+----------------+--------------+-----------------------------+
| Development |
+------------------------------------------------------------------------------+
| Time | Planning | Securing | Policy of sustainable |
| | | planning | development and |
+----------------+----------------+--------------+-----------------------------+
| | | consent for | regeneration of brownfield |
| | | | sites; |
+----------------+----------------+--------------+-----------------------------+
| | | developments | Constructive dialogue with |
| | | | planning authorities. |
+----------------+----------------+--------------+-----------------------------+
| Costs | Construction | Returns | Approval process based on |
| and | cost overrun, | reduced by | detailed project |
| letting | | | |
+----------------+----------------+--------------+-----------------------------+
| risk | low occupancy | increased | costs; |
| | levels | costs or | |
+----------------+----------------+--------------+-----------------------------+
| | | delay in | Regular monitoring and |
| | | securing | forecasting of project |
+----------------+----------------+--------------+-----------------------------+
| | | tenants | costs and rental income; |
| | | | Fixed cost contracts. |
+----------------+----------------+--------------+-----------------------------+
i) Audited Financial Statements
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2009
+----------------------------------------------------+---------+--+-----------+
| | 2009 | | 2008 |
+----------------------------------------------------+---------+--+-----------+
| | GBPm | | GBPm |
+----------------------------------------------------+---------+--+-----------+
| | | | |
+----------------------------------------------------+---------+--+-----------+
| Revenue | 336.0 | | 329.4 |
+----------------------------------------------------+---------+--+-----------+
| | | | |
+----------------------------------------------------+---------+--+-----------+
| Rental income | 277.3 | | 268.8 |
+----------------------------------------------------+---------+--+-----------+
| | | | |
+----------------------------------------------------+---------+--+-----------+
| Rental expenses | (53.6) | | (46.0) |
+----------------------------------------------------+---------+--+-----------+
| | | | |
+----------------------------------------------------+---------+--+-----------+
| Net rental income | 223.7 | | 222.8 |
+----------------------------------------------------+---------+--+-----------+
| | | | |
+----------------------------------------------------+---------+--+-----------+
| Property trading profits | - | | 0.3 |
+----------------------------------------------------+---------+--+-----------+
| Deficit on revaluation and sale of investment and | (425.2) | | (1,370.7) |
| development property | | | |
+----------------------------------------------------+---------+--+-----------+
| Other income | 5.0 | | - |
+----------------------------------------------------+---------+--+-----------+
| Administration expenses | (2.5) | | (7.7) |
+----------------------------------------------------+---------+--+-----------+
| | | | |
+----------------------------------------------------+---------+--+-----------+
| Operating loss | (199.0) | | (1,155.3) |
+----------------------------------------------------+---------+--+-----------+
| | | | |
+----------------------------------------------------+---------+--+-----------+
| Interest payable | (154.1) | | (184.7) |
+----------------------------------------------------+---------+--+-----------+
| Interest receivable | 3.6 | | 9.3 |
+----------------------------------------------------+---------+--+-----------+
| Other finance (costs)/income | (20.8) | | 1.2 |
+----------------------------------------------------+---------+--+-----------+
| Change in fair value of derivative financial | 45.6 | | (221.6) |
| instruments | | | |
+----------------------------------------------------+---------+--+-----------+
| | | | |
+----------------------------------------------------+---------+--+-----------+
| Net finance costs | (125.7) | | (395.8) |
+----------------------------------------------------+---------+--+-----------+
| | | | |
+----------------------------------------------------+---------+--+-----------+
| Loss before taxation | (324.7) | | (1,551.1) |
+----------------------------------------------------+---------+--+-----------+
| | | | |
+----------------------------------------------------+---------+--+-----------+
| Current tax | 0.1 | | 1.3 |
+----------------------------------------------------+---------+--+-----------+
| REIT entry charge | (2.6) | | (2.5) |
+----------------------------------------------------+---------+--+-----------+
| | | | |
+----------------------------------------------------+---------+--+-----------+
| Taxation | (2.5) | | (1.2) |
+----------------------------------------------------+---------+--+-----------+
| | | | |
+----------------------------------------------------+---------+--+-----------+
| Loss for the year | (327.2) | | (1,552.3) |
+----------------------------------------------------+---------+--+-----------+
| | | | |
+----------------------------------------------------+---------+--+-----------+
| Loss attributable to minority interest | 11.8 | | 81.5 |
+----------------------------------------------------+---------+--+-----------+
| | | | |
+----------------------------------------------------+---------+--+-----------+
| Loss for the year attributable to equity | (315.4) | | (1,470.8) |
| shareholders | | | |
+----------------------------------------------------+---------+--+-----------+
The notes form part of these consolidated financial statements.
STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2009
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| | Group | | Group | | Company | | Company |
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| | 2009 | | 2008 | | 2009 | | 2008 |
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| | GBPm | | GBPm | | GBPm | | GBPm |
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| | | | | | | | |
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Loss for the year | (315.4) | | (1,470.8) | | (40.5) | | (239.6) |
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| | | | | | | | |
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Total comprehensive | | | | | | | |
| (expense)/income for the | | | | | | | |
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| year | (315.4) | | (1,470.8) | | (40.5) | | (239.6) |
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| | | | | | | | |
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Attributable to: | | | | | | | |
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Equity Shareholders | (303.6) | | (1,389.3) | | (40.5) | | (239.6) |
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Minority Interests | (11.8) | | (81.5) | | - | | - |
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| | | | | | | | |
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Total comprehensive | | | | | | | |
| (expense)/income for the | | | | | | | |
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| year | (315.4) | | (1,470.8) | | (40.5) | | (239.6) |
+---------------------------------+---------+----------+-----------+----------+---------+----------+---------+
The notes form part of these consolidated financial statements.
BALANCE SHEETS
AS AT 31 DECEMBER 2009
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | Group | | Group | | Company | | Company |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | 2009 | | 2008 | | 2009 | | 2008 |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | GBPm | | GBPm | | GBPm | | GBPm |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Non-current assets | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Investment and development | 4,361.2 | | 3,987.4 | | - | | - |
| property | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Investment in Group | - | | - | | 918.6 | | 736.8 |
| undertakings | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Deferred tax | 0.1 | | 0.1 | | - | | - |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Trade and other receivables | 41.1 | | 31.7 | | - | | - |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | 4,402.4 | | 4,019.2 | | 918.6 | | 736.8 |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Current assets | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Trading property | 13.9 | | 13.3 | | - | | - |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Trade and other receivables | 54.7 | | 87.6 | | 1,793.2 | | 1,267.3 |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Cash and cash equivalents | 53.8 | | 24.5 | | 1.9 | | 8.6 |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | 122.4 | | 125.4 | | 1,795.1 | | 1,275.9 |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Total assets | 4,524.8 | | 4,144.6 | | 2,713.7 | | 2,012.7 |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Current liabilities | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Trade and other payables | (1,415.1) | | (804.6) | | (2,085.5) | | (1,399.4) |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Borrowings | (76.2) | | (70.7) | | - | | (31.5) |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Derivative financial | (224.7) | | (248.0) | | - | | - |
| instruments | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | (1,716.0) | | (1,123.3) | | (2,085.5) | | (1,430.9) |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Non-current liabilities | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Borrowings | (2,730.9) | | (2,689.7) | | (26.7) | | (26.7) |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Other payables | (25.0) | | (52.3) | | (8.8) | | (10.9) |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | (2,755.9) | | (2,742.0) | | (35.5) | | (37.6) |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Total liabilities | (4,471.9) | | (3,865.3) | | (2,121.0) | | (1,468.5) |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Net assets | 52.9 | | 279.3 | | 592.7 | | 544.2 |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Equity | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Ordinary shares | 197.3 | | 197.3 | | 197.3 | | 197.3 |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Share premium account | 646.9 | | 646.9 | | 646.9 | | 646.9 |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Other non-distributable | 8.3 | | 8.3 | | 8.3 | | 8.3 |
| reserves | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Retained earnings | (799.6) | | (573.2) | | (259.8) | | (308.3) |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Attributable to equity | 52.9 | | 279.3 | | 592.7 | | 544.2 |
| shareholders | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Minority interest | - | | - | | - | | - |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
| Total equity | 52.9 | | 279.3 | | 592.7 | | 544.2 |
+---------------------------------+-----------+----------+-----------+----------+-----------+----------+-----------+
The notes form part of these consolidated financial statements.
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2009
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | | | Other | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | | Share | non- | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | Share | premium | distributable | Retained | | Minority | Total |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | capital | account | reserves | earnings | Total | interest | equity |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Group | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Balance at 1 | 197.3 | 646.9 | 8.3 | 986.6 | 1,839.1 | 151.1 | 1,990.2 |
| January 2008 | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Loss for the year | - | - | - | (1,470.8) | (1,470.8) | (81.5) | (1,552.3) |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Total | | | | | | | |
| comprehensive | | | | | | | |
| expense | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| for the year ended | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| 31 December 2008 | - | - | - | (1,470.8) | (1,470.8) | (81.5) | (1,552.3) |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Transactions with | | | | | | | |
| equity | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| shareholders | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Dividends paid | - | - | - | (89.0) | (89.0) | - | (89.0) |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Total reserve | | | | | | | |
| transfers, | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| contributions from | | | | | | | |
| and | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| distributions to | - | - | - | (89.0) | (89.0) | - | (89.0) |
| shareholders | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Changes in | | | | | | | |
| ownership interest | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Minority interest | | | | | - | 5.7 | 5.7 |
| additions | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Compound financial | - | - | - | - | - | (75.3) | (75.3) |
| instrument | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Total transactions | | | | | | | |
| with | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| shareholders | - | - | - | - | - | (69.6) | (69.6) |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Balance at 31 | 197.3 | 646.9 | 8.3 | (573.2) | 279.3 | - | 279.3 |
| December 2008 | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Loss for the year | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Total | | | | | | | |
| comprehensive | | | | | | | |
| expense for | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| the year ended | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| 31 December 2009 | - | - | - | (315.4) | (315.4) | (11.8) | (327.2) |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Transactions with | | | | | | | |
| equity | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| shareholders | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Dividends repaid | - | - | - | 89.0 | 89.0 | - | 89.0 |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Total reserve | | | | | | | |
| transfers, | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| contributions from | | | | | | | |
| and | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| distributions to | - | - | - | 89.0 | 89.0 | - | 89.0 |
| shareholders | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Changes in | | | | | | | |
| ownership interest | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Minority interest | - | - | - | - | - | 11.8 | 11.8 |
| additions | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Total transactions | | | | | | | |
| with | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| shareholders | - | - | - | - | - | 11.8 | 11.8 |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| Balance at | | | | | | | |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
| 31 December 2009 | 197.3 | 646.9 | 8.3 | (799.6) | 52.9 | - | 52.9 |
+--------------------+---------+---------+---------------+-----------+-----------+----------+-----------+
STATEMENTS OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2009
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| | | | Other | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| | | Share | non- | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| | Share | premium | distributable | Retained | | Minority | Total |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| | capital | account | reserves | earnings | Total | interest | equity |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| Company | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| Balance at 1 | 197.3 | 646.9 | 8.3 | 20.3 | 872.8 | | 872.8 |
| January 2008 | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| Loss for the year | - | - | - | (239.6) | (239.6) | - | (239.6) |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| Total | | | | | | | |
| comprehensive | | | | | | | |
| expense | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| for the year ended | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| 31 December 2008 | - | - | - | (239.6) | (239.6) | - | (239.6) |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| Transactions with | | | | | | | |
| equity | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| shareholders | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| Dividends paid | - | - | - | (89.0) | (89.0) | - | (89.0) |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| Total reserve | | | | | | | |
| transfers, | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| contributions from | | | | | | | |
| and | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| distributions to | - | - | - | (89.0) | (89.0) | - | (89.0) |
| shareholders | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| Balance at 31 | 197.3 | 646.9 | 8.3 | (308.3) | 544.2 | - | 544.2 |
| December 2008 | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| Loss for the year | - | - | - | (40.5) | (40.5) | - | (40.5) |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| Total | | | | | | | |
| comprehensive | | | | | | | |
| expense for | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| the year ended | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| 31 December 2009 | - | - | - | (315.4) | (315.4) | (11.8) | (327.2) |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| Transactions with | | | | | | | |
| equity | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| shareholders | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| Dividends repaid | - | - | - | 89.0 | 89.0 | - | 89.0 |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| Total reserve | | | | | | | |
| transfers, | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| contributions from | | | | | | | |
| and | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| distributions to | - | - | - | 89.0 | 89.0 | - | 89.0 |
| shareholders | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| Balance at | | | | | | | |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
| 31 December 2009 | 197.3 | 646.9 | 8.3 | (259.8) | 592.7 | - | 592.7 |
+--------------------+---------+---------+---------------+----------+---------+----------+---------+
The notes on pages 18 to 51 form part of these consolidated financial
statements.
STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2009
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | Group | | Group | | Company | | Company |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | 2009 | | 2008 | | 2009 | | 2008 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | GBPm | | GBPm | | GBPm | | GBPm |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Cash generated from operations | 387.2 | | 242.9 | | (66.3) | | 90.6 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Interest paid | (174.9) | | (191.6) | | (15.5) | | (41.8) |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Interest received | 3.6 | | 9.3 | | 17.8 | | 40.4 |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Tax received/(paid) | (0.1) | | 2.0 | | (0.1) | | (0.1) |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Cash flows from operating | 215.8 | | 62.6 | | (64.1) | | 89.1 |
| activities | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Purchase and development of | (101.5) | | (136.8) | | - | | - |
| property | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Sale of property | 0.7 | | 2.2 | | - | | - |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| REIT entry charge paid | (31.4) | | (27.2) | | - | | - |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Cash flow from investing | (132.2) | | (161.8) | | - | | - |
| activities | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Borrowings repaid | (190.6) | | (32.7) | | (31.6) | | - |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Borrowings drawn | 35.5 | | 180.0 | | - | | - |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Cash transferred to restricted | (19.8) | | - | | - | | - |
| accounts | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Partnership equity introduced | 11.8 | | 5.7 | | - | | - |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Equity dividends | 89.0 | | (89.0) | | 89.0 | | (89.0) |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Cash flows from financing | (74.1) | | 64.0 | | 57.4 | | (89.0) |
| activities | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Net increase/(decrease) in cash | 9.5 | | (35.2) | | (6.7) | | 0.1 |
| and cash equivalents | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Cash and cash equivalents at | 24.5 | | 59.7 | | 8.6 | | 8.5 |
| beginning of the year | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
| Cash and cash equivalents at end | 34.0 | | 24.5 | | 1.9 | | 8.6 |
| of the year | | | | | | | |
+-----------------------------------+---------+----------+---------+----------+---------+----------+---------+
The notes form part of these consolidated financial statements.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
1. Principal accounting policies
Accounting convention and basis of preparation
These consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards, as adopted by the European Union
("IFRS"), IFRIC interpretations and with those parts of the Companies Act 2006
applicable to companies reporting under IFRS. The directors have taken advantage
of the exemption offered by Section 408 of the Companies Act 2006 not to present
a separate income statement for the parent company.
The financial statements have been prepared in Sterling, which is the functional
currency of the Group.
The financial statements have been prepared under the historical cost convention
as modified by the revaluation of properties, available for sale investments,
financial assets and liabilities held for trading. A summary of the more
important Group accounting policies is set out below. The Group's business
activities have been affected by the adverse UK financial and economic
background. A description of the impact and the factors likely to affect the
Group's future development, performance and position are set out in the Review
of Business and Future Developments on pages 1 to 8. The financial position of
the Group, its cash flows, debt structure, borrowing facilities and principal
financial risks are described in the Review of Business and Future Developments
on pages 1 to 8. In addition note 20 to these financial statements includes the
Group's financial risk management objectives; details of its financial
instruments and hedging activities; its exposures to liquidity risk and details
of its capital structure.
The directors have undertaken a review of the projected financial position of
the company and the Group, which includes reasonable assumptions about future
trading and cash flows. This review included an assessment of cash balances, the
debt maturity profile following renegotiation of the Lakeside facility in
January 2010, the economic conditions faced by tenants and the financial
position of the Group's parent company, Liberty International PLC.
The directors believe the company and the Group are able to manage the business
risks they face despite the conditions in the UK commercial property market.
The directors have therefore concluded, based on cash flow projections taking
account of the factors listed above, that there is a reasonable expectation that
the company and the Group have adequate resources to continue in operational
existence for the foreseeable future and have therefore prepared the financial
statements on a going concern basis.
The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Although these estimates are based on management's best
knowledge of the amount, event or actions, actual results ultimately may differ
from those estimates. Where such judgements are made they are included within
the accounting policies below.
The accounting policies used are consistent with those applied in the last
annual financial statements, as amended to reflect the adoption of new
standards, amendments, revisions and interpretations which became effective in
the year.
IAS 1 Presentation of Financial Statements (revised)
IAS 23 Borrowing Costs (revised)
IFRS 2 Share-based Payment (amendment)
IFRS 7 Financial Instruments: Disclosures (amendment)
IFRS 8 Operating Segments
IAS 40 Investment Property (revised)
These pronouncements either had no impact on the financial statements or
resulted in changes to presentation and disclosure only.
In respect of IAS 23, the Group's existing accounting policy was to capitalise
borrowing costs, therefore this revision had no accounting impact for the Group.
IAS 1 Presentation of Financial Statements (amendment)
IAS 27 Consolidated and Separate Financial Statements (revised)
IAS 36 Impairment of Assets (amendment)
IAS 38 Intangible Assets (amendment)
IFRS 2 Share-Based Payment (amendment)
IFRS 3 Business Combinations (revised)
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (amendment)
IFRIC 17 Distribution of Non-cash Assets to Owners
These pronouncements are not expected to have a material impact on the financial
statements, but will result in changes to presentation or disclosure where they
are applicable.
2. Basis of consolidation
These accounts include the consolidation of The MetroCentre Partnership, The
Victoria Centre Partnership, The Chapelfield Partnership, The Potteries Shopping
Centre Limited Partnership, The Westgate Partnership, Xscape Braehead
Partnership and St. David's Limited Partnership. The members of these qualifying
partnerships have taken advantage of the exemptions in the Statutory Instrument
1993/1820.
The consolidated financial information includes financial information in respect
of the company and its subsidiary undertakings. Subsidiary undertakings are
those entities in which the Group has the ability to govern the financial and
operating policies, whether through a majority of the voting rights or
otherwise.
The Group's interests in jointly controlled entities are accounted for using
proportional consolidation. The Group's share of the assets, liabilities, income
and expenses are combined with the equivalent items in the consolidated
financial statements on a line-by-line basis.
3. Segmental Reporting
The Group operates a single business activity in a single economic environment,
namely the development and management of regional shopping centres within the
United Kingdom. The Group manages the portfolio through a single operating
division which it manages and reports as one business. The single segment
described represents the information used by the Board to make operating
decisions.
4. Deficit on revaluation and sale of Investment Property
+-------------------------------------------------------+---------+----------+-----------+
| | 2009 | | 2008 |
+-------------------------------------------------------+---------+----------+-----------+
| | GBPm | | GBPm |
+-------------------------------------------------------+---------+----------+-----------+
| | | | |
+-------------------------------------------------------+---------+----------+-----------+
| Deficit on revaluation of investment and development | (425.3) | | (1,370.0) |
| property (see note 12) | | | |
+-------------------------------------------------------+---------+----------+-----------+
| Gain/(deficit) on sale of investment property | 0.1 | | (0.7) |
+-------------------------------------------------------+---------+----------+-----------+
| | | | |
+-------------------------------------------------------+---------+----------+-----------+
| Deficit on revaluation and sale of investment | (425.2) | | (1,370.7) |
| property | | | |
+-------------------------------------------------------+---------+----------+-----------+
5. Net finance costs
+--------------------------------------------------------+---------+----------+---------+
| | 2009 | | 2008 |
+--------------------------------------------------------+---------+----------+---------+
| | GBPm | | GBPm |
+--------------------------------------------------------+---------+----------+---------+
| | | | |
+--------------------------------------------------------+---------+----------+---------+
| On bank overdrafts and loans | (147.5) | | (155.0) |
+--------------------------------------------------------+---------+----------+---------+
| On CSC bonds | (2.2) | | (4.0) |
+--------------------------------------------------------+---------+----------+---------+
| On amounts due to related companies | (18.2) | | (38.1) |
+--------------------------------------------------------+---------+----------+---------+
| Gross interest payable | (167.9) | | (197.1) |
+--------------------------------------------------------+---------+----------+---------+
| | | | |
+--------------------------------------------------------+---------+----------+---------+
| Interest capitalised on investment properties under | 13.8 | | 12.4 |
| development | | | |
+--------------------------------------------------------+---------+----------+---------+
| | | | |
+--------------------------------------------------------+---------+----------+---------+
| Interest payable | (154.1) | | (184.7) |
+--------------------------------------------------------+---------+----------+---------+
| | | | |
+--------------------------------------------------------+---------+----------+---------+
| On amounts due from parent undertaking | 3.5 | | 1.1 |
+--------------------------------------------------------+---------+----------+---------+
| Other | 0.1 | | 8.2 |
+--------------------------------------------------------+---------+----------+---------+
| | | | |
+--------------------------------------------------------+---------+----------+---------+
| Interest receivable | 3.6 | | 9.3 |
+--------------------------------------------------------+---------+----------+---------+
| | | | |
+--------------------------------------------------------+---------+----------+---------+
| Other finance income/(costs) | | | |
+--------------------------------------------------------+---------+----------+---------+
| (Loss)/gain on termination of financial instruments | (11.1) | | 3.2 |
+--------------------------------------------------------+---------+----------+---------+
| Amortisation of MetroCentre compound financial | (9.7) | | (2.0) |
| instrument | | | |
+--------------------------------------------------------+---------+----------+---------+
| | | | |
+--------------------------------------------------------+---------+----------+---------+
| | (20.8) | | 1.2 |
+--------------------------------------------------------+---------+----------+---------+
| | | | |
+--------------------------------------------------------+---------+----------+---------+
| Change in fair value of derivative financial | 45.6 | | (221.6) |
| instruments | | | |
+--------------------------------------------------------+---------+----------+---------+
| | | | |
+--------------------------------------------------------+---------+----------+---------+
| Net finance costs | (125.7) | | (395.8) |
+--------------------------------------------------------+---------+----------+---------+
6. Taxation
Taxation charge for the financial year
+------------------------------------------------------+--------+----------+-------+
| | 2009 | | 2008 |
+------------------------------------------------------+--------+----------+-------+
| | GBPm | | GBPm |
+------------------------------------------------------+--------+----------+-------+
| | | | |
+------------------------------------------------------+--------+----------+-------+
| Current tax | (0.1) | | (1.3) |
+------------------------------------------------------+--------+----------+-------+
| REIT entry charge | 2.6 | | 2.5 |
+------------------------------------------------------+--------+----------+-------+
| | | | |
+------------------------------------------------------+--------+----------+-------+
| | 2.5 | | 1.2 |
+------------------------------------------------------+--------+----------+-------+
+------------------------------------------------------+---------+----------+-------+
| Taxation charge for the financial year | 2009 | | 2008 |
+------------------------------------------------------+---------+----------+-------+
| | GBPm | | GBPm |
+------------------------------------------------------+---------+----------+-------+
| | | | |
+------------------------------------------------------+---------+----------+-------+
| Current UK corporation tax at 28% (2008: 28.5%) on | - | | 0.7 |
| losses | | | |
+------------------------------------------------------+---------+----------+-------+
| Prior year items | (0.1) | | (2.0) |
+------------------------------------------------------+---------+----------+-------+
| | | | |
+------------------------------------------------------+---------+----------+-------+
| Current tax credit on losses excluding exceptional | (0.1) | | (1.3) |
| items and property disposals | | | |
+------------------------------------------------------+---------+----------+-------+
| | | | |
+------------------------------------------------------+---------+----------+-------+
| Tax credit on losses excluding exceptional items and | (0.1) | | (1.3) |
| property disposals | | | |
+------------------------------------------------------+---------+----------+-------+
| REIT entry charge | 2.6 | | 2.5 |
+------------------------------------------------------+---------+----------+-------+
| | | | |
+------------------------------------------------------+---------+----------+-------+
| Total tax charge | 2.5 | | 1.2 |
+------------------------------------------------------+---------+----------+-------+
The tax assessed for the year is higher (2008: lower) than the standard rate of
corporation tax in the UK. The differences are explained below:
+--------------------------------------------------------+---------+----------+-----------+
| | 2009 | | 2008 |
+--------------------------------------------------------+---------+----------+-----------+
| | GBPm | | GBPm |
+--------------------------------------------------------+---------+----------+-----------+
| | | | |
+--------------------------------------------------------+---------+----------+-----------+
| Loss before tax | (324.7) | | (1,551.1) |
+--------------------------------------------------------+---------+----------+-----------+
| Loss on ordinary activities multiplied by the standard | (90.9) | | (442.2) |
| rate in the UK of 28% (2008 28.5%) | | | |
+--------------------------------------------------------+---------+----------+-----------+
| Capital allowances not reversing on sale | (3.5) | | (3.0) |
+--------------------------------------------------------+---------+----------+-----------+
| Disposal of properties and investments | - | | 0.3 |
+--------------------------------------------------------+---------+----------+-----------+
| Prior year corporation tax items | (0.1) | | (2.0) |
+--------------------------------------------------------+---------+----------+-----------+
| Expenses disallowed, net of capitalised interest | (3.8) | | (3.5) |
+--------------------------------------------------------+---------+----------+-----------+
| UK transfer pricing adjustment | 8.7 | | 14.4 |
+--------------------------------------------------------+---------+----------+-----------+
| Group relief (without payment) | (5.3) | | (6.7) |
+--------------------------------------------------------+---------+----------+-----------+
| REIT exemption - corporation tax | (11.5) | | (12.2) |
+--------------------------------------------------------+---------+----------+-----------+
| REIT exemption - deferred tax | 106.3 | | 453.6 |
+--------------------------------------------------------+---------+----------+-----------+
| REIT exemption - entry charge | 2.6 | | 2.5 |
+--------------------------------------------------------+---------+----------+-----------+
| | | | |
+--------------------------------------------------------+---------+----------+-----------+
| Total tax charge | 2.5 | | 1.2 |
+--------------------------------------------------------+---------+----------+-----------+
Tax items that are taken directly to equity are shown in the Statement of
comprehensive income.
7. Dividends
+---------------------------------------------------+----------+----------+----------+
| | 2009 | | 2008 |
+---------------------------------------------------+----------+----------+----------+
| | GBPm | | GBPm |
+---------------------------------------------------+----------+----------+----------+
| Ordinary shares | | | |
+---------------------------------------------------+----------+----------+----------+
| Prior period final dividend (repaid)/paid 22.55p | (89.0) | | 89.0 |
+---------------------------------------------------+----------+----------+----------+
The Board has not proposed a final dividend in respect of 2009 (2008 nil). In
2008 a dividend of 22.55 pence per share was paid, this was subsequently repaid
to Capital Shopping Centres PLC during 2009.
8. Profit for the financial year attributable to shareholders of Capital
Shopping Centres PLC
A loss of GBP40.5 million is dealt with in the accounts of the holding company
in respect of the year (2008: loss GBP239.6 million). No income statement is
presented for the company as permitted by Section 408 of the Companies Act 2006.
9. Investment and development property
+---------------------------------------+----------+----------+-----------+----------+-----------+
| Group | Freehold | | Leasehold | | Total |
| | | | | | |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| | GBPm | | GBPm | | GBPm |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| At 1 January 2008 | 3,250.4 | | 1,925.0 | | 5,175.4 |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| Additions | 151.2 | | 33.7 | | 184.9 |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| Disposals | (2.9) | | - | | (2.9) |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| Deficit on valuation | (893.3) | | (476.7) | | (1,370.0) |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| At 31 December 2008 | 2,505.4 | | 1,482.0 | | 3,987.4 |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| At 1 January 2009 | 2,505.4 | | 1,482.0 | | 3,987.4 |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| Reclassification | (173.1) | | 173.1 | | - |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| Addition from acquisition of | 230.4 | | 431.0 | | 661.4 |
| subsidiary companies | | | | | |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| Additions | 25.6 | | 112.7 | | 138.3 |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| Disposals | (0.6) | | - | | (0.6) |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| Deficit on valuation | (212.9) | | (212.4) | | (425.3) |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| | | | | | |
+---------------------------------------+----------+----------+-----------+----------+-----------+
| At 31 December 2009 | 2,374.8 | | 1,986.4 | | 4,361.2 |
+---------------------------------------+----------+----------+-----------+----------+-----------+
Included within additions is GBP13.8 million (2008 GBP12.4 million) of interest
capitalised on developments and redevelopments in progress.
+-------------------------------------------------------+---------+--+---------+
| Group | 2009 | | 2008 |
+-------------------------------------------------------+---------+--+---------+
| | GBPm | | GBPm |
+-------------------------------------------------------+---------+--+---------+
| Balance sheet carrying value of investment | | | |
+-------------------------------------------------------+---------+--+---------+
| and development property | 4,361.2 | | 3,987.4 |
+-------------------------------------------------------+---------+--+---------+
| Adjustment in respect of head leases and tenant | 26.5 | | 31.9 |
| incentives | | | |
+-------------------------------------------------------+---------+--+---------+
| | | | |
+-------------------------------------------------------+---------+--+---------+
| Market value of investment and development property | 4,387.7 | | 4,019.3 |
+-------------------------------------------------------+---------+--+---------+
The fair value of the Group's investment and development property as at 31
December 2009 was determined by independent external valuers at that date. The
valuation conforms with the Royal Institution of Chartered Surveyors (RICS)
Valuation Standards 6th edition and with IVS1 of Internal Valuation Standards,
and was arrived at by reference to market transactions for similar properties.
The main assumptions underlying the valuations are in relation to market rent,
taking into account forecast growth rates and yields based on known transactions
for similar properties and likely incentives offered to tenants.
There are certain restrictions on the realisability of investment property when
a credit facility is in place. In most circumstances the Group can realise up
to 50 per cent without restriction providing the Group continues to manage the
asset. Realising an amount in excess of this would trigger a change of control
and mandatory repayment of the facility.
10. Investments in Group undertakings
+---------------------------------------+----------+----------+-------------+----------+----------+
| | | | Accumulated | | |
+---------------------------------------+----------+----------+-------------+----------+----------+
| | Cost | | impairment | | Net |
+---------------------------------------+----------+----------+-------------+----------+----------+
| | Restated | | Restated | | Restated |
+---------------------------------------+----------+----------+-------------+----------+----------+
| | GBPm | | GBPm | | GBPm |
+---------------------------------------+----------+----------+-------------+----------+----------+
| | | | | | |
+---------------------------------------+----------+----------+-------------+----------+----------+
| At 1 January 2008 | 1,056.3 | | - | | 1,056.3 |
+---------------------------------------+----------+----------+-------------+----------+----------+
| Acquisitions | - | | - | | - |
+---------------------------------------+----------+----------+-------------+----------+----------+
| Impairment charge for the year | - | | (319.5) | | (319.5) |
+---------------------------------------+----------+----------+-------------+----------+----------+
| | | | | | |
+---------------------------------------+----------+----------+-------------+----------+----------+
| At 31 December 2008 | 1,056.3 | | (319.5) | | 736.8 |
+---------------------------------------+----------+----------+-------------+----------+----------+
| | | | | | |
+---------------------------------------+----------+----------+-------------+----------+----------+
| | | | Accumulated | | |
+---------------------------------------+----------+----------+-------------+----------+----------+
| | Cost | | impairment | | Net |
+---------------------------------------+----------+----------+-------------+----------+----------+
| | GBPm | | GBPm | | GBPm |
+---------------------------------------+----------+----------+-------------+----------+----------+
| | | | | | |
+---------------------------------------+----------+----------+-------------+----------+----------+
| At 1 January 2009 | 1,056.3 | | (319.5) | | 736.8 |
+---------------------------------------+----------+----------+-------------+----------+----------+
| Acquisitions | 224.5 | | | | 224.5 |
+---------------------------------------+----------+----------+-------------+----------+----------+
| Impairment charge for the year | - | | (42.7) | | (42.7) |
+---------------------------------------+----------+----------+-------------+----------+----------+
| | | | | | |
+---------------------------------------+----------+----------+-------------+----------+----------+
| At 31 December 2009 | 1,280.8 | | (362.2) | | 918.6 |
+---------------------------------------+----------+----------+-------------+----------+----------+
The impairment charges taken in 2008 and 2009 arose due to the carrying values
of the asset exceeding its recoverable amount. This was determined based on the
assets' fair value less estimated selling costs. Fair value was derived from the
subsidiaries' net asset value at the balance sheet date.
Investments are reviewed at least annually for impairment. Where there exists an
indication of impairment an assessment of the recoverable amount is performed.
The recoverable amount is based on the higher of the investments continued value
in use or its fair value less cost to sell. The impairment charge taken above
arose due to the carrying value of the investments exceeding their recoverable
amount. This was determined based on the assets' fair value less cost to sell.
Fair value less costs to sell is derived from the subsidiaries' net asset value
at the balance sheet date.
On 2 October 2009, Capital Shopping Centres PLC acquired three subsidiary
companies from Capvestco Limited, a subsidiary of Liberty International PLC,
full details can be found in note 30 on Business Combinations.
The Group was carrying an investment in the Xscape Braehead Partnership as at 31
December 2008 which was actually an investment of CSC Braehead Leisure Limited,
a subsidiary undertaking, the comparatives have been restated to reflect the
correct ownership structure.
The principal investments in Group undertakings are listed below. All
subsidiaries are wholly owned by the company and are registered in England and
Wales. Investments in Group undertakings are carried in the balance sheet at
historic cost less provision for impairment.
Companies engaged in property investment, management and development:
+-------------------------------+----------------------------+-------+
| Subsidiary | Partnership Notes | Notes |
+-------------------------------+----------------------------+-------+
| Belside Limited | | 1 |
+-------------------------------+----------------------------+-------+
| Braehead Glasgow Limited | | 2 |
+-------------------------------+----------------------------+-------+
| Braehead Park Estates Limited | | |
+-------------------------------+----------------------------+-------+
| Braehead Park Investments | | |
| Limited | | |
+-------------------------------+----------------------------+-------+
| Chapelfield GP Limited | General partner in The | |
| | Chapelfield | |
+-------------------------------+----------------------------+-------+
| | Partnership | |
+-------------------------------+----------------------------+-------+
| CSC Braehead Leisure Limited | Limited partner in the | |
| | Xscape Braehead | |
+-------------------------------+----------------------------+-------+
| | Partnership | |
+-------------------------------+----------------------------+-------+
| CSC Bromley Limited | | |
+-------------------------------+----------------------------+-------+
| CSC Harlequin Limited | | |
+-------------------------------+----------------------------+-------+
| CSC Lakeside Limited | | |
+-------------------------------+----------------------------+-------+
| CSC Potteries Limited | Limited partner in The | |
| | Potteries | |
+-------------------------------+----------------------------+-------+
| | Shopping Centre Limited | |
| | Partnership | |
+-------------------------------+----------------------------+-------+
| CSC Properties Investments | | |
| Limited | | |
+-------------------------------+----------------------------+-------+
| CSC The Hayes Limited | Limited partner in St. | |
| | David's Limited | |
+-------------------------------+----------------------------+-------+
| | Partnership | |
+-------------------------------+----------------------------+-------+
| CSC Uxbridge (Jersey) Limited | | 3 |
+-------------------------------+----------------------------+-------+
| Curley Limited | | 4 |
+-------------------------------+----------------------------+-------+
| MetroCentre (GP) Limited | General partner in The | 5 |
| | MetroCentre | |
+-------------------------------+----------------------------+-------+
| | Partnership | |
+-------------------------------+----------------------------+-------+
| VCP (GP) Limited | General partner in The | |
| | Victoria Centre | |
+-------------------------------+----------------------------+-------+
| | Partnership | |
+-------------------------------+----------------------------+-------+
The share capital of each of the above entities comprises Ordinary shares of
GBP1 each, except see note 2.
1 Belside Limited was acquired on 2 October 2009 from Capvestco
Limited, a subsidiary of Liberty International PLC, for a consideration of
GBP57.2 million.
2 Braehead Glasgow Limited has GBP1 "A" ordinary shares and EUR1.30
"B" ordinary shares.
3 CSC Uxbridge (Jersey) Limited was acquired on 2 October 2009 from
Capvestco Limited, a subsidiary of Liberty International PLC, for a
consideration of GBP84.8 million.
4 Curley Limited was acquired on 2 October 2009 from Capvestco
Limited, a subsidiary of Liberty International PLC, for a consideration of
GBP82.5 million.
5 By virtue of their interest in The MetroCentre Partnership, GIC
Real Estate is entitled to appoint 40 per cent of the directors of MetroCentre
(GP) Limited.
Companies engaged in the provision of management services:
+-------------------------------------------------------------------+
| Subsidiary |
+-------------------------------------------------------------------+
| Broadway Retail Leisure Limited |
+-------------------------------------------------------------------+
| CSC Enterprises Limited |
+-------------------------------------------------------------------+
| CSC Property Management Limited |
+-------------------------------------------------------------------+
The share capital of each of the above entities comprises Ordinary shares of
GBP1 each.
11. Trading property
+-------------------------------------------------------+--------+--+--------+
| Group | 2009 | | 2008 |
+-------------------------------------------------------+--------+--+--------+
| | GBPm | | GBPm |
+-------------------------------------------------------+--------+--+--------+
| | | | |
+-------------------------------------------------------+--------+--+--------+
| At 31 December | 13.9 | | 13.3 |
+-------------------------------------------------------+--------+--+--------+
Trading properties primarily represent surplus undeveloped land at Braehead,
Glasgow, held for resale. The land is held at the lower of cost and net
realisable value. The estimated replacement of cost of trading properties based
on market value amounted to GBP13.9 million (2008 GBP13.3 million).
12. Trade and other receivables
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
| | Group | | Group | | Company | | Company |
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
| | 2009 | | 2008 | | 2009 | | 2008 |
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
| | GBPm | | GBPm | | GBPm | | GBPm |
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
| Amounts falling due within one | | | | | | | |
| year: | | | | | | | |
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
| Rents receivable | 17.6 | | 13.6 | | - | | - |
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
| Amounts owed by subsidiary | - | | - | | 1,786.9 | | 1,228.1 |
| undertakings | | | | | | | |
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
| Amounts owed by related companies | - | | 35.5 | | - | | 35.5 |
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
| Other receivables | 4.7 | | 3.6 | | 1.1 | | 1.8 |
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
| Prepayments and accrued income | 32.2 | | 34.1 | | 4.3 | | 0.4 |
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
| Tax recoverable | 0.2 | | 0.8 | | 0.9 | | 1.5 |
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
| | | | | | | | |
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
| | 54.7 | | 87.6 | | 1,793.2 | | 1,267.3 |
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
| Amounts falling due after more than | | | | | | | |
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
| one year: | | | | | | | |
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
| Other receivables | 41.1 | | 31.7 | | - | | - |
+-------------------------------------+--------+----------+--------+----------+---------+----------+---------+
Amounts owed by subsidiary undertakings and related companies are unsecured,
non-interest bearing and repayable on demand.
Included within prepayments and accrued income are tenant lease incentives of
GBP22.1 million (2008: GBP19.9 million).
13. Trade and other payables
+-------------------------------------+---------+----------+--------+----------+---------+----------+---------+
| | Group | | Group | | Company | | Company |
+-------------------------------------+---------+----------+--------+----------+---------+----------+---------+
| | 2009 | | 2008 | | 2009 | | 2008 |
+-------------------------------------+---------+----------+--------+----------+---------+----------+---------+
| | GBPm | | GBPm | | GBPm | | GBPm |
+-------------------------------------+---------+----------+--------+----------+---------+----------+---------+
| Amounts falling due within one | | | | | | | |
| year: | | | | | | | |
+-------------------------------------+---------+----------+--------+----------+---------+----------+---------+
| Amounts owed to related companies | 1,236.9 | | 585.3 | | 850.5 | | 577.1 |
+-------------------------------------+---------+----------+--------+----------+---------+----------+---------+
| Amounts owed to subsidiary | - | | - | | 1,230.1 | | 796.5 |
| undertakings | | | | | | | |
+-------------------------------------+---------+----------+--------+----------+---------+----------+---------+
| Other tax and social security | 46.4 | | 34.0 | | 0.8 | | 13.4 |
+-------------------------------------+---------+----------+--------+----------+---------+----------+---------+
| Other payables | 13.0 | | 27.4 | | 1.9 | | 8.5 |
+-------------------------------------+---------+----------+--------+----------+---------+----------+---------+
| Rents received in advance | 71.9 | | 62.0 | | - | | - |
+-------------------------------------+---------+----------+--------+----------+---------+----------+---------+
| Accruals and deferred income | 46.9 | | 95.9 | | 2.2 | | 3.9 |
+-------------------------------------+---------+----------+--------+----------+---------+----------+---------+
| | | | | | | | |
+-------------------------------------+---------+----------+--------+----------+---------+----------+---------+
| | 1,415.1 | | 804.6 | | 2,085.5 | | 1,399.4 |
+-------------------------------------+---------+----------+--------+----------+---------+----------+---------+
Amounts owed to subsidiary undertakings and related companies are unsecured,
non-interest bearing and payable on demand.
14. Borrowings
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Group | 2009 |
+----------------------+--------------------------------------------------------------------------------------------------------------------+
| | Carrying | | | | | | Fixed | | Floating | | Fair |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | value | | Secured | | Unsecured | | rate | | rate | | value |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Amounts falling due | GBPm | | GBPm | | GBPm | | GBPm | | GBPm | | GBPm |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| within one year: | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Secured borrowings | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Bank loans and | 4.3 | | 4.3 | | - | | - | | 4.3 | | 4.3 |
| overdrafts | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Commercial mortgage | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| backed securities | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| ("CMBS") notes | 67.4 | | 67.4 | | - | | - | | 67.4 | | 50.6 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Borrowings excluding | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| finance leases | 71.7 | | 71.7 | | - | | - | | 71.7 | | 54.9 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Finance lease | 4.5 | | 4.5 | | - | | 4.5 | | - | | 4.5 |
| obligations | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Amounts falling due | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| within one year | 76.2 | | 76.2 | | - | | 4.5 | | 71.7 | | 59.4 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Amounts falling due | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| after more than one | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| year: | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| CMBS notes 2011 | 436.0 | | 436.0 | | - | | - | | 436.0 | | 357.3 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| CMBS notes 2015 | 1,135.5 | | 1,135.5 | | - | | - | | 1,135.5 | | 738.0 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Bank loans 2011 | 100.0 | | 100.0 | | - | | - | | 100.0 | | 100.0 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Bank loan 2014 | 60.0 | | 60.0 | | - | | - | | 60.0 | | 60.0 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Bank loans 2016 | 809.3 | | 809.3 | | - | | - | | 809.3 | | 809.3 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| CSC bonds 2013 | 26.7 | | - | | 26.7 | | 26.7 | | - | | 28.8 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Borrowings excluding | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| finance leases and | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| MetroCentre compound | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| instrument | 2,567.5 | | 2,540.8 | | 26.7 | | 26.7 | | 2,540.8 | | 2,093.4 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| MetroCentre compound | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| financial instrument | 129.9 | | - | | 129.9 | | - | | 129.9 | | 129.9 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Finance lease | 33.5 | | 33.5 | | - | | 33.5 | | - | | 33.5 |
| obligations | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Amounts falling due | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| after more than one | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| year | 2,730.9 | | 2,574.3 | | 156.6 | | 60.2 | | 2,670.7 | | 2,256.8 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Total borrowings | 2,807.1 | | 2,650.5 | | 156.6 | | 64.7 | | 2,742.4 | | 2,316.2 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Cash and cash | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Equivalents | (53.8) | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Net debt | 2,753.3 | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
Net external debt (adjusted for the MetroCentre compound financial instrument)
at 31 December 2009 was GBP2,623.4 million.
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Group | 2008 |
+----------------------+--------------------------------------------------------------------------------------------------------------------+
| | Carrying | | | | | | Fixed | | Floating | | Fair |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | value | | Secured | | Unsecured | | rate | | rate | | value |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Amounts falling due | GBPm | | GBPm | | GBPm | | GBPm | | GBPm | | GBPm |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| within one year: | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Secured borrowings | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Bank loans and | 2.4 | | 2.4 | | - | | - | | 2.4 | | 2.4 |
| overdrafts | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Commercial mortgage | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| backed securities | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| ("CMBS") notes | 34.3 | | 34.3 | | - | | - | | 34.3 | | 24.6 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| CSC bonds 2009 | 31.5 | | - | | 31.5 | | 31.5 | | - | | 32.2 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Borrowings excluding | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| finance leases | 68.2 | | 36.7 | | 31.5 | | 31.5 | | 36.7 | | 59.2 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Finance lease | 2.5 | | 2.5 | | - | | 2.5 | | - | | 2.5 |
| obligations | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Amounts falling due | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| within one year | 70.7 | | 39.2 | | 31.5 | | 34.0 | | 36.7 | | 61.7 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Amounts falling due | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| after more than one | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| year: | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| CMBS notes 2011 | 523.9 | | 523.9 | | - | | - | | 523.9 | | 419.6 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| CMBS notes 2015 | 1,219.6 | | 1,219.6 | | - | | - | | 1,219.6 | | 826.7 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Bank loans 2011 | 100.0 | | 100.0 | | - | | - | | 100.0 | | 100.0 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Bank loan 2014 | 24.5 | | 24.5 | | - | | - | | 24.5 | | 24.5 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Bank loans 2016 | 660.4 | | 660.4 | | - | | - | | 660.4 | | 660.4 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| CSC bonds 2013 | 26.7 | | - | | 26.7 | | 26.7 | | - | | 23.5 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Borrowings excluding | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| finance leases and | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| MetroCentre compound | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| instrument | 2,555.1 | | 2,528.4 | | 26.7 | | 26.7 | | 2,528.4 | | 2,054.7 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| MetroCentre compound | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| financial instrument | 120.3 | | - | | 120.3 | | - | | 120.3 | | 120.3 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Finance lease | 14.3 | | 14.3 | | - | | 14.3 | | - | | 14.3 |
| obligations | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Amounts falling due | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| after more than one | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| year | 2,689.7 | | 2,542.7 | | 147.0 | | 41.0 | | 2,648.7 | | 2,189.3 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Total borrowings | 2,760.4 | | 2,581.9 | | 178.5 | | 75.0 | | 2,685.4 | | 2,251.0 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Cash and cash | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Equivalents | (24.5) | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
| Net debt | 2,735.9 | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+---------+
Net external debt (adjusted for the MetroCentre compound financial instrument)
at 31 December 2008 was GBP2,615.6 million.
The Group substantially eliminates its interest rate exposure to floating rate
debt as illustrated in note 20.
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| Company | 2008 |
+----------------------+------------------------------------------------------------------------------------------------------------------+
| | Carrying | | | | | | Fixed | | Floating | | Fair |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| | value | | Secured | | Unsecured | | rate | | rate | | value |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| Amounts falling due | GBPm | | GBPm | | GBPm | | GBPm | | GBPm | | GBPm |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| within one year: | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| Secured borrowings | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| CSC bonds 2009 | 31.5 | | - | | 31.5 | | 31.5 | | - | | 32.2 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| Amounts falling due | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| after more than one | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| year: | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| CSC bonds 2013 | 26.7 | | - | | 26.7 | | 26.7 | | - | | 23.5 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| Total borrowings | 58.2 | | - | | 58.2 | | 58.2 | | - | | 55.7 |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| Cash and cash | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| Equivalents | (8.6) | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| | | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
| Net debt | 49.6 | | | | | | | | | | |
+----------------------+----------+----------+---------+----------+-----------+----------+-------+----------+----------+----------+-------+
15. Financial risk management
Market risk
The Group is exposed to a variety of risks arising from the Group's operations.
Market risk (including interest rate risk and market price risk), liquidity risk
and credit risk.
Risk management is carried out by the LI Group treasury department and the
policies for managing each of these risks and the principal effects of these
policies on the results for the year are summarised below.
a) Interest rate risk
Interest rate risk comprises both cash flow and fair value risks:
Cash flow interest risk is the risk that the future cash flows of a financial
instrument will fluctuate due to changes in market interest rates. Fair value
risk is the risk that the fair value of financial instruments will fluctuate as
a result of changes in market interest rates.
The Group's interest rate risk arises from borrowings issued at variable rates
which expose the Group to cash flow interest rate risk, whereas borrowings
issued at fixed interest rates expose the Group to fair value interest rate
risk.
Bank debt is typically at floating rates linked to LIBOR. Bond debt and other
capital market debt are generally at fixed rates.
The Group's policy is to eliminate substantially all short and medium-term
exposure to interest rate fluctuations in order to establish certainty over
medium-term cash flows by using floating to fixed interest rate swaps. Such
swaps have the economic effect of converting borrowings from floating to fixed
rates. As a consequence, the Group is exposed to market price risk in respect
of the fair value of its fixed rate derivative financial instruments, as
discussed in the financial review.
The below table shows the effects of interest rate swaps on the Group borrowings
profile of the Group:
+----------------------------+---------+----------+-----------+----------+---------+----------+-----------+
| | Fixed | | Floating | | Fixed | | Floating |
+----------------------------+---------+----------+-----------+----------+---------+----------+-----------+
| | 2009 | | 2009 | | 2008 | | 2008 |
+----------------------------+---------+----------+-----------+----------+---------+----------+-----------+
| | GBPm | | GBPm | | GBPm | | GBPm |
+----------------------------+---------+----------+-----------+----------+---------+----------+-----------+
| | | | | | | | |
+----------------------------+---------+----------+-----------+----------+---------+----------+-----------+
| Borrowings | 64.7 | | 2,742.4 | | 75.0 | | 2,685.4 |
+----------------------------+---------+----------+-----------+----------+---------+----------+-----------+
| Derivative impact | 2,571.7 | | (2,571.7) | | 2,369.7 | | (2,369.7) |
+----------------------------+---------+----------+-----------+----------+---------+----------+-----------+
| | | | | | | | |
+----------------------------+---------+----------+-----------+----------+---------+----------+-----------+
| Net borrowings profile | 2,636.4 | | 170.7 | | 2,444.7 | | 315.7 |
+----------------------------+---------+----------+-----------+----------+---------+----------+-----------+
| | | | | | | | |
+----------------------------+---------+----------+-----------+----------+---------+----------+-----------+
| Interest rate protection | | | | | | | |
+----------------------------+---------+----------+-----------+----------+---------+----------+-----------+
| on floating debt | | | 93.8% | | | | 88.2% |
+----------------------------+---------+----------+-----------+----------+---------+----------+-----------+
The weighted average rate of interest rates contracted through interest rates
swaps is 5.3 per cent (2008 5.3 per cent).
The approximate impact of a 50 basis point shift upwards in the level of
interest rates would be a positive movement of GBP87.9 million (2008 GBP59.8
million) in the fair value of derivatives. The approximate impact of a 50 basis
point shift downwards in the level of interest rates would be a negative
movement of GBP92.3 million (2008 GBP61.7 million) in the fair value of
derivatives. In practice, a parallel shift in the yield curve is highly
unlikely. However, the above sensitivity analysis is a reasonable illustration
of the possible effect from the changes in slope and shifts in the yield curve
that may actually occur. Because the fixed rate derivative financial instruments
are matched by short-term floating rate debt, the overall effect on Group cash
flow of such a movement would be very small. Movements in the fair value of
derivatives are dealt with in the income statement.
b) Market price risk
The financial results are subject to movements in the value of underlying
investment properties.
Liquidity risk
Liquidity risk is managed to ensure that the Group is able to meet future
payment obligations when financial liabilities fall due. Liquidity analysis is
conducted to ensure that sufficient headroom is available to meet the Group's
operational requirements and committed investments. The Group treasury policy
also includes maintaining adequate cash and marketable securities, as well as
maintaining adequate committed facilities. The Group's policy is to seek to
optimise its exposure to liquidity risk by balancing its exposure to interest
risk and to refinancing risk. In effect the Group seeks to borrow for as long as
possible at the lowest acceptable cost.
At 31 December 2009, the maturity profile of Group debt showed an average
maturity of six years (2008 six years). The Group regularly reviews the
maturity profile of its financial liabilities and seeks to avoid bunching of
maturities through the regular replacement of facilities and by using a
selection of maturity dates. Re-financing risk may be reduced by re-borrowing
prior to the contracted maturity date, effectively switching liquidity risk for
market risk.
The Group will often pre-fund capital expenditure by arranging facilities or
raising debt in the capital markets and then placing surplus funds on deposit
until required for the project. Efficient treasury management and strict credit
control minimise the costs and risk associated with this policy which ensures
that funds are available to meet commitments as they fall due.
The tables below set out the maturity analysis of the Group's financial
liabilities based on the undiscounted contractual obligations to make payments
of interest and to repay principal. Where interest payment obligations are based
on a floating rate the rates used are those implied by the par yield curve.
+--------------------------+---------+----------+---------+----------+---------+----------+-----------+----------+-----------+
| Group | 2009 |
+--------------------------+-------------------------------------------------------------------------------------------------+
| | Within | | 1-2 | | 3-5 | | over 5 | | |
| | 1 | | | | | | | | |
+--------------------------+---------+----------+---------+----------+---------+----------+-----------+----------+-----------+
| | year | | years | | years | | years | | Totals |
+--------------------------+---------+----------+---------+----------+---------+----------+-----------+----------+-----------+
| | GBPm | | GBPm | | GBPm | | GBPm | | GBPm |
+--------------------------+---------+----------+---------+----------+---------+----------+-----------+----------+-----------+
| | | | | | | | | | |
+--------------------------+---------+----------+---------+----------+---------+----------+-----------+----------+-----------+
| Borrowings(including | | | | | | | | | |
+--------------------------+---------+----------+---------+----------+---------+----------+-----------+----------+-----------+
| interest) | (200.5) | | (694.4) | | (622.3) | | (2,477.6) | | (3,994.8) |
+--------------------------+---------+----------+---------+----------+---------+----------+-----------+----------+-----------+
| Tax and other payables | (61.3) | | (19.7) | | (2.8) | | (0.5) | | (84.3) |
+--------------------------+---------+----------+---------+----------+---------+----------+-----------+----------+-----------+
| Finance lease | (4.5) | | (4.5) | | (13.1) | | (69.1) | | (91.2) |
| obligations | | | | | | | | | |
+--------------------------+---------+----------+---------+----------+---------+----------+-----------+----------+-----------+
| Derivatives payments | (229.5) | | (180.2) | | (448.7) | | (607.4) | | (1,465.8) |
+--------------------------+---------+----------+---------+----------+---------+----------+-----------+----------+-----------+
| Derivative receipts | 100.1 | | 90.3 | | 384.8 | | 550.2 | | 1,125.4 |
+--------------------------+---------+----------+---------+----------+---------+----------+-----------+----------+-----------+
| | | | | | | | | | |
+--------------------------+---------+----------+---------+----------+---------+----------+-----------+----------+-----------+
| | (395.7) | | (808.5) | | (702.1) | | (2,604.4) | | (4,510.7) |
+--------------------------+---------+----------+---------+----------+---------+----------+-----------+----------+-----------+
+--------------------------+---------+----------+---------+----------+-----------+----------+-----------+----------+-----------+
| Group | 2008 |
+--------------------------+---------------------------------------------------------------------------------------------------+
| | Within | | 1-2 | | 3-5 | | over 5 | | |
| | 1 | | | | | | | | |
+--------------------------+---------+----------+---------+----------+-----------+----------+-----------+----------+-----------+
| | year | | years | | years | | years | | Totals |
+--------------------------+---------+----------+---------+----------+-----------+----------+-----------+----------+-----------+
| | GBPm | | GBPm | | GBPm | | GBPm | | GBPm |
+--------------------------+---------+----------+---------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | | | |
+--------------------------+---------+----------+---------+----------+-----------+----------+-----------+----------+-----------+
| Borrowings(including | (158.8) | | (102.2) | | (943.7) | | (1,692.8) | | (2,897.5) |
| interest) | | | | | | | | | |
+--------------------------+---------+----------+---------+----------+-----------+----------+-----------+----------+-----------+
| Tax and other payables | (63.2) | | (32.0) | | (16.7) | | (1.5) | | (113.4) |
+--------------------------+---------+----------+---------+----------+-----------+----------+-----------+----------+-----------+
| Finance lease | (2.5) | | (2.5) | | (7.5) | | (24.8) | | (37.3) |
| obligations | | | | | | | | | |
+--------------------------+---------+----------+---------+----------+-----------+----------+-----------+----------+-----------+
| Derivatives payments | (124.5) | | (122.5) | | (291.5) | | (145.9) | | (684.4) |
+--------------------------+---------+----------+---------+----------+-----------+----------+-----------+----------+-----------+
| Derivative receipts | 84.1 | | 55.1 | | 204.6 | | 116.8 | | 460.6 |
+--------------------------+---------+----------+---------+----------+-----------+----------+-----------+----------+-----------+
| | | | | | | | | | |
+--------------------------+---------+----------+---------+----------+-----------+----------+-----------+----------+-----------+
| | (265.1) | | (204.1) | | (1,054.8) | | (1,748.2) | | (3,272.2) |
+--------------------------+---------+----------+---------+----------+-----------+----------+-----------+----------+-----------+
+-----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+---------+
| Company | 2009 |
+-----------------------------+---------------------------------------------------------------------------------------+
| | Within | | 1-2 | | 3-5 | | over | | |
| | 1 | | | | | | 5 | | |
+-----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+---------+
| | year | | years | | years | | years | | Totals |
+-----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+---------+
| | GBPm | | GBPm | | GBPm | | GBPm | | GBPm |
+-----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+---------+
| | | | | | | | | | |
+-----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+---------+
| Borrowings (including | (1.8) | | (1.8) | | (29.6) | | - | | (33.2) |
| interest) | | | | | | | | | |
+-----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+---------+
| Tax and other payables | (2.0) | | (3.5) | | (2.8) | | (0.5) | | (8.8) |
+-----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+---------+
| | | | | | | | | | |
+-----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+---------+
| | (3.8) | | (5.3) | | (32.4) | | (0.5) | | (42.0) |
+-----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+---------+
+----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+--------+
| Company | 2008 |
+----------------------------+--------------------------------------------------------------------------------------+
| | Within | | 1-2 | | 3-5 | | over | | |
| | 1 | | | | | | 5 | | |
+----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+--------+
| | Year | | years | | years | | years | | Totals |
+----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+--------+
| | GBPm | | GBPm | | GBPm | | GBPm | | GBPm |
+----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+--------+
| | | | | | | | | | |
+----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+--------+
| Borrowings (including | (34.4) | | (1.8) | | (31.5) | | - | | (67.7) |
| interest) | | | | | | | | | |
+----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+--------+
| Tax and other payables | (2.1) | | (3.8) | | (3.5) | | (1.5) | | (10.9) |
+----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+--------+
| | | | | | | | | | |
+----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+--------+
| | (36.5) | | (5.6) | | (35.0) | | (1.5) | | (78.6) |
+----------------------------+--------+----------+-------+----------+--------+----------+-------+----------+--------+
Credit risk
Credit risk is the risk of financial loss if a tenant or counterparty fails to
meet an obligation under a contract. Credit risk arises primarily from trade
receivables relating to tenants but also from the Group's holdings of assets
with counterparties such as cash deposits, loans and derivative instruments.
Credit risk associated with trade receivables is actively managed; tenants are
managed individually by asset managers, who continuously monitor and work with
tenants, anticipating and, wherever possible, identifying and addressing risks
prior to default.
Prospective tenants are assessed via a review process, including obtaining
credit ratings and reviewing financial information which is conducted
internally. As a result deposits or guarantors may be obtained. The amount of
deposits held as collateral at 31 December 2009 is GBP2.2 million (2008 GBP0.8
million).
Due to the nature of tenants being managed individually by asset managers, it is
Group policy to calculate any impairment specifically on each contract.
The ageing analysis of these trade receivables is as follows:
+------------------------------------------------------+-------+--+--------+
| | Group | | Group |
+------------------------------------------------------+-------+--+--------+
| | 2009 | | 2008 |
+------------------------------------------------------+-------+--+--------+
| | GBPm | | GBPm |
+------------------------------------------------------+-------+--+--------+
| | | | |
+------------------------------------------------------+-------+--+--------+
| Up to three months | 15.0 | | 11.9 |
+------------------------------------------------------+-------+--+--------+
| Three to six months | 1.3 | | 0.9 |
+------------------------------------------------------+-------+--+--------+
| Greater than six months | 1.3 | | 0.8 |
+------------------------------------------------------+-------+--+--------+
| | | | |
+------------------------------------------------------+-------+--+--------+
| Trade receivables | 17.6 | | 13.6 |
+------------------------------------------------------+-------+--+--------+
In 2009 trade receivables impaired amounted to GBP3.7 million (2008 GBP9.7
million), this is considered to be an immaterial amount and within budgeted
levels given current economic conditions.
The credit risk relating to cash, deposits and derivative financial instruments
is actively managed centrally by Liberty International PLC, the ultimate parent.
Relationships are maintained with a number of tier one institutional
counterparties, ensuring compliance with Liberty International PLC Group policy
relating to limits on the credit ratings of counterparties (between BBB+ and
AAA). Excessive credit risk is avoiding through adhering to authorised limits
for all counterparties.
Classification of financial assets and liabilities
The table below sets out the Group's accounting classification of each class of
financial assets and liabilities, and their fair values at 31 December 2009 and
31 December 2008.
The fair values of quoted borrowings are based on the asking price. The fair
values of financial instruments are determined from observable market prices or
estimated using appropriate yield curves at 31 December each year by discounting
the future contractual cash flows to the net present values.
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| | | | | Gain/(loss) | | |
+----------------------------+-----------+----------+-----------+----------------------+----------+-------------+
| | Carrying | | Fair | | to | | Gain/(loss) |
| | | | | | income | | |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| | value | | value | | statement | | to |
| | | | | | | | equity |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| 2009 | GBPm | | GBPm | | GBPm | | GBPm |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Trade and other | 95.8 | | 95.8 | | - | | - |
| receivables | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Cash and cash equivalents | 53.8 | | 53.8 | | - | | - |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Total loans and | 149.6 | | 149.6 | | - | | - |
| receivables | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Derivative liabilities | (224.7) | | (224.7) | | 45.6 | | - |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Total held for trading | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| liabilities | (224.7) | | (224.7) | | 45.6 | | - |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Trade and other payables | (1,440.1) | | (1,440.1) | | - | | - |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Borrowings | (2,807.1) | | (2,316.3) | | - | | - |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Total loans and payables | (4,247.2) | | (3,756.4) | | - | | - |
+----------------------------+-----------+----------+-----------+----------+-----------+----------+-------------+
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
| 2008 | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
| | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
| Trade and other | 119.3 | | 119.3 | | - | | - |
| receivables | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
| Cash and cash equivalents | 24.5 | | 24.5 | | - | | - |
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
| | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
| Total loans and | 143.8 | | 143.8 | | - | | - |
| receivables | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
| | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
| Derivative liabilities | (248.0) | | (248.0) | | (221.6) | | - |
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
| Total held for trading | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
| liabilities | (248.0) | | (248.0) | | (221.6) | | - |
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
| | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
| Trade and other payables | (856.9) | | (856.9) | | - | | - |
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
| Borrowings | (2,760.4) | | (2,251.1) | | - | | - |
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
| | | | | | | | |
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
| Total loans and payables | (3,617.3) | | (3,108.0) | | - | | - |
+----------------------------+-----------+----------+-----------+----------+---------+----------+--------+
Capital structure
The Group seeks to enhance shareholder value both by investing in the business
so as to improve the return on investment and by managing the capital structure.
The Group uses a mix of equity, debt and hybrid financial instruments and aims
to access both debt and equity capital markets with maximum efficiency and
flexibility.
The key ratios used to monitor the capital structure of the Group are the debt
to assets ratio and the interest coverage ratio. The Group aims not to exceed
an underlying debt to assets ratio of 50 per cent and to maintain interest cover
above 160 per cent. These targets have not been met during the period due to
current conditions in the UK commercial property market. These are discussed in
the Review of Business and Future Developments.
+-------------------------------------------------------+---------+--+---------+
| | Group | | Group |
+-------------------------------------------------------+---------+--+---------+
| | 2009 | | 2008 |
+-------------------------------------------------------+---------+--+---------+
| | GBPm | | GBPm |
+-------------------------------------------------------+---------+--+---------+
| Debt to assets ratio | | | |
+-------------------------------------------------------+---------+--+---------+
| Investment property | 4,361.2 | | 3,987.4 |
+-------------------------------------------------------+---------+--+---------+
| Trading property | 13.9 | | 13.3 |
+-------------------------------------------------------+---------+--+---------+
| | 4,375.1 | | 4,000.7 |
+-------------------------------------------------------+---------+--+---------+
| Net external debt | 2,623.4 | | 2,615.6 |
+-------------------------------------------------------+---------+--+---------+
| | | | |
+-------------------------------------------------------+---------+--+---------+
| | 60% | | 65% |
+-------------------------------------------------------+---------+--+---------+
| Interest cover | | | |
+-------------------------------------------------------+---------+--+---------+
| Interest payable | (154.1) | | (184.7) |
+-------------------------------------------------------+---------+--+---------+
| Interest receivable | 3.6 | | 9.3 |
+-------------------------------------------------------+---------+--+---------+
| Other finance income/(costs) | (20.8) | | 1.2 |
+-------------------------------------------------------+---------+--+---------+
| | (171.3) | | (174.2) |
+-------------------------------------------------------+---------+--+---------+
| Net rental income | 223.7 | | 222.8 |
+-------------------------------------------------------+---------+--+---------+
| Administrative expenses | (2.5) | | (7.7) |
+-------------------------------------------------------+---------+--+---------+
| Underlying operating profit | 221.2 | | 215.1 |
+-------------------------------------------------------+---------+--+---------+
| | | | |
+-------------------------------------------------------+---------+--+---------+
| | 129% | | 123% |
+-------------------------------------------------------+---------+--+---------+
The maximum debt to assets ratio for the year was 60 per cent and occurred on 31
December 2009. The maximum interest coverage ratio for the year was 129 per
cent and occurred on 31 December 2009.
The table below presents the Group's assets and liabilities recognised at fair
value.
+----------------------------------+--------+--+--------+--+--------+--+--------+
| | Level | | Level | | Level | | Total |
| | 1 | | 2 | | 3 | | |
+----------------------------------+--------+--+--------+--+--------+--+--------+
| | GBPm | | GBPm | | GBPm | | GBPm |
+----------------------------------+--------+--+--------+--+--------+--+--------+
| | | | | | | | |
+----------------------------------+--------+--+--------+--+--------+--+--------+
| Fair value through profit or | - | | 224.7 | | - | | 224.7 |
| loss | | | | | | | |
+----------------------------------+--------+--+--------+--+--------+--+--------+
| | | | | | | | |
+----------------------------------+--------+--+--------+--+--------+--+--------+
| Total liabilities | - | | 224.7 | | - | | 224.7 |
+----------------------------------+--------+--+--------+--+--------+--+--------+
Fair value hierarchy
Level 1: valuation based on quoted market prices traded in active markets.
Level 2: valuation techniques are used, maximising the use of observable market
data, either directly from market prices or derived from market prices.
Level 3: where one or more inputs to valuation are not based on observable
market data. Valuations at this level are more subjective and therefore more
closely managed, including sensitivity analysis of inputs to valuation models.
Such testing has not indicated that any material difference would arise due to a
change in input variables.
16. Deferred Tax
Under IAS 12 "Income Taxes", provision is made for the deferred tax asset
associated with the revaluation of investment properties at the corporate tax
rate expected to apply to the Group at the time of use. For those UK properties
qualifying as REIT properties the relevant tax rate will be 0 per cent (2008: 0
per cent), and for non-REIT UK properties the relevant tax rate will be 28 per
cent (2008: 28 percent).
+----------------------------+----------+----------+------------+----------+------------+----------+----------+
| | At | | | | | | At |
+----------------------------+----------+----------+------------+----------+------------+----------+----------+
| | 31 | | Recognised | | Recognised | | 31 |
| | December | | | | | | December |
+----------------------------+----------+----------+------------+----------+------------+----------+----------+
| | 2008 | | in | | in | | 2009 |
| | | | income | | equity | | |
+----------------------------+----------+----------+------------+----------+------------+----------+----------+
| Group: | GBPm | | GBPm | | GBPm | | GBPm |
+----------------------------+----------+----------+------------+----------+------------+----------+----------+
| | | | | | | | |
+----------------------------+----------+----------+------------+----------+------------+----------+----------+
| Capital allowances | 0.1 | | - | | - | | 0.1 |
+----------------------------+----------+----------+------------+----------+------------+----------+----------+
| | | | | | | | |
+----------------------------+----------+----------+------------+----------+------------+----------+----------+
| Group total | 0.1 | | - | | - | | 0.1 |
+----------------------------+----------+----------+------------+----------+------------+----------+----------+
All deferred tax assets are expected to be recovered after more than one year.
17. Share Capital
+-----------------------------------------------+-------------+-+----------+
| Company and Group | 2009 & | | 2009 & |
| | 2008 | | 2008 |
+-----------------------------------------------+-------------+-+----------+
| | Number | | GBPm |
+-----------------------------------------------+-------------+-+----------+
| | | | |
+-----------------------------------------------+-------------+-+----------+
| Issued and fully paid | 394,551,178 | | 197.3 |
+-----------------------------------------------+-------------+-+----------+
The Companies Act 2006 removed the concept of authorised share capital with
effect from 1 October 2009. Under saving provisions, the current maximum number
of shares which may be issued by the company is 600,000,000 ordinary shares of
50p each.
18. Cash generated from operations
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| | Group | | Group | | Company | | Company |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| | 2009 | | 2008 | | 2009 | | 2008 |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| | GBPm | | GBPm | | GBPm | | GBPm |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Cash flows from operating | | | | | | | |
| activities | | | | | | | |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Loss before tax | (324.7) | | (1,551.1) | | (39.7) | | (239.6) |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| | | | | | | | |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Adjustments for: | | | | | | | |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Deficit on revaluation and | | | | | | | |
| sale of investment and | | | | | | | |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| development property | 425.2 | | 1,370.7 | | - | | - |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Amortisation of lease | | | | | | | |
| incentives and other direct | | | | | | | |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| costs | 5.0 | | 11.1 | | - | | (0.2) |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Net impairment of financial | | | | | 0.2 | | - |
| assets | | | | | | | |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Write down of investment | | | - | | 42.8 | | 326.2 |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Interest payable | 154.1 | | 184.7 | | 15.8 | | 42.1 |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Interest receivable | (3.6) | | (9.3) | | (17.8) | | (40.4) |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Other finance (income)/costs | 20.8 | | (1.2) | | - | | - |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Change in fair value of | | | | | | | |
| derivative financial | | | | | | | |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Instruments | (45.6) | | 221.6 | | - | | - |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| | | | | | | | |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| | 231.2 | | 226.5 | | 1.3 | | 88.1 |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Changes in working capital | | | | | | | |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Change in trading properties | (0.6) | | 2.3 | | - | | - |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Change in trade and other | | | | | | | |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| receivables | 13.0 | | 161.6 | | (526.8) | | 217.6 |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Change in trade and other | 143.6 | | (147.5) | | 459.2 | | (215.1) |
| payables | | | | | | | |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| | | | | | | | |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
| Cash generated from | 387.2 | | 242.9 | | (66.3) | | 90.6 |
| operations | | | | | | | |
+-------------------------------+---------+----------+-----------+----------+---------+----------+---------+
19. Cash and cash equivalents
+-------------------------------+--------+----------+--------+----------+---------+----------+---------+
| | Group | | Group | | Company | | Company |
+-------------------------------+--------+----------+--------+----------+---------+----------+---------+
| | 2009 | | 2008 | | 2009 | | 2008 |
+-------------------------------+--------+----------+--------+----------+---------+----------+---------+
| | GBPm | | GBPm | | GBPm | | GBPm |
+-------------------------------+--------+----------+--------+----------+---------+----------+---------+
| | | | | | | | |
+-------------------------------+--------+----------+--------+----------+---------+----------+---------+
| Unrestricted cash | 34.0 | | 24.5 | | 1.9 | | 8.6 |
+-------------------------------+--------+----------+--------+----------+---------+----------+---------+
| Restricted cash | 19.8 | | - | | - | | - |
+-------------------------------+--------+----------+--------+----------+---------+----------+---------+
| | | | | | | | |
+-------------------------------+--------+----------+--------+----------+---------+----------+---------+
| | 53.8 | | 24.5 | | 1.9 | | 8.6 |
+-------------------------------+--------+----------+--------+----------+---------+----------+---------+
Restricted cash relates to amounts placed on deposit to ensure continued
compliance with certain loan facility financial covenants.
20. Directors Emoluments
The aggregate emoluments of the directors were GBP1,877,836 (2008 GBP1,448,894).
In previous years conditional share awards comprising "restricted" shares and
"additional" shares, were made. The restricted and additional shares were to be
released respectively two and four years after the date of the award provided
the individual director has remained in service. During the year, restricted and
additional shares awarded in previous years were released to three (2008 four)
directors, including the highest paid director. The remaining restricted and
additional shares vested in March 2010.
During the year, GBP1,308 was paid to one former director in connection with the
termination of his employment by CSC Management Services Limited.
During the year five directors were granted options to acquire Liberty
International PLC shares. The options were granted under the Liberty
International PLC Incentive Share Option Scheme and Executive Share Option
Scheme and are subject to a performance conditions in respect of the smoothed
earnings growth of Liberty International PLC. The awards of options made to the
highest paid director are disclosed in the Liberty International PLC 2009 Annual
Report.
One director was a member of a defined benefit pension arrangement. Four
directors are members of a money purchase pension arrangement. A company
contribution in aggregate of GBP81,000 (2008 GBP68,000) was paid in respect of
directors who were members of money purchase arrangements.
The highest paid director received aggregate emoluments of GBP660,100 (2008
GBP333,727) and had accrued by 31 December 2009 a pension of GBP122,222 per
annum (2008 GBP106,831pa) in a defined benefit scheme. The Liberty
International PLC defined benefit scheme was closed to future benefit accrual in
December 2009. All benefits have been preserved in the scheme the liabilities
of which have been secured by the purchase of a bulk annuity from Pensions
Insurance Corporation. Notice of the intention to wind the scheme up has been
given and this is expected to be completed during 2010. Following introduction
of the 'single lifetime allowance' by HMRC, the highest paid director ceased to
accrue further benefits in the defined benefit scheme with effect from 6 April
2009. The highest paid director receives an actuarially determined payment
subject to PAYE and NI deductions. This amount is included in the aggregate
emoluments figure above.
21. Capital Commitments
At 31 December 2009 the Group was contractually committed to GBP100.3 million
(2008 GBP175.3 million) of future expenditure for the purchase, construction,
development and enhancement of investment property. Of the GBP100.3 million
committed, GBP81.1 is committed 2010 expenditure.
22. Business Combinations
Belside Limited
On 2 October 2009 the company acquired 100% of the issued share capital of
Belside Limited from Capvestco Limited, a fellow subsidiary undertaking of
Liberty International PLC, for a consideration of GBP57.2 million. The
principal activity of Belside Limited is the ownership, management and
development of the Mall, the Retail Park, the former BT Building, at Cribbs
Causeway, Bristol.
The business contributed net revenues of GBP1.9 million, and a net profit of
GBP10.6 million after recognising a surplus on revaluation of investment and
development property of GBP8.7 million. Had the acquisition occurred on 1
January 2009 the Group net revenue would have been GBP3.2 million higher, and
the Group net loss would have been GBP28.8 million higher, after charging a
deficit on revaluation of investment and development property of GBP32.0
million. The assets and liabilities acquired as at 2 October 2009 were:
+----------------------------------------------------+---------+----------+---------+
| | Book | | Fair |
+----------------------------------------------------+---------+----------+---------+
| | value | | value |
+----------------------------------------------------+---------+----------+---------+
| | GBPm | | GBPm |
+----------------------------------------------------+---------+----------+---------+
| Non-current assets | | | |
+----------------------------------------------------+---------+----------+---------+
| Investment properties | 192.3 | | 192.3 |
+----------------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------------+---------+----------+---------+
| Current assets | | | |
+----------------------------------------------------+---------+----------+---------+
| Trade and other receivables | 9.4 | | 9.4 |
+----------------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------------+---------+----------+---------+
| Current liabilities | | | |
+----------------------------------------------------+---------+----------+---------+
| Trade and other payables | (143.3) | | (143.3) |
+----------------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------------+---------+----------+---------+
| Non-current liabilities | | | |
+----------------------------------------------------+---------+----------+---------+
| Trade and other payables | (1.2) | | (1.2) |
+----------------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------------+---------+----------+---------+
| Net assets acquired | 57.2 | | 57.2 |
+----------------------------------------------------+---------+----------+---------+
CSC Uxbridge (Jersey) Limited
On 2 October 2009 the company acquired 100% of the issued share capital of CSC
Uxbridge (Jersey) Limited from Capvestco Limited, a fellow subsidiary
undertaking of Liberty International PLC, for a consideration of GBP84.8
million. The principal activity of CSC Uxbridge (Jersey) Limited is the
ownership, management and development of the Chimes shopping centre, Uxbridge.
The business contributed net revenues of GBP6.4 million, and a net profit of
GBP10.6 million after recognising a surplus on revaluation of investment and
development property of GBP4.2 million. Had the acquisition occurred on 1
January 2009 the Group net revenue would have been GBP3.0 million higher, and
the Group net loss would have been GBP8.8 million higher, after charging a
deficit on revaluation of investment and development property of GBP11.8
million. The assets and liabilities acquired as at 2 October 2009 were:
+----------------------------------------------------+---------+----------+---------+
| | Book | | Fair |
+----------------------------------------------------+---------+----------+---------+
| | value | | value |
+----------------------------------------------------+---------+----------+---------+
| | GBPm | | GBPm |
+----------------------------------------------------+---------+----------+---------+
| Non-current assets | | | |
+----------------------------------------------------+---------+----------+---------+
| Investment properties | 192.8 | | 192.8 |
+----------------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------------+---------+----------+---------+
| Current assets | | | |
+----------------------------------------------------+---------+----------+---------+
| Trade and other receivables | 65.9 | | 65.9 |
+----------------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------------+---------+----------+---------+
| Current liabilities | | | |
+----------------------------------------------------+---------+----------+---------+
| Trade and other payables | (12.5) | | (12.5) |
+----------------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------------+---------+----------+---------+
| Non-current liabilities | | | |
+----------------------------------------------------+---------+----------+---------+
| Trade and other payables | (161.4) | | (161.4) |
+----------------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------------+---------+----------+---------+
| Net assets acquired | 84.8 | | 84.8 |
+----------------------------------------------------+---------+----------+---------+
Curley Limited
On 2 October 2009 the company acquired 100% of the issued share capital of
Curley Limited from Capvestco Limited, a fellow subsidiary undertaking of
Liberty International PLC, for a consideration of GBP82.5 million. The
principal activity of Curley Limited is the ownership, management and
development the Arndale Centre, Manchester.
The business contributed net revenues of GBP2.8 million, and a net profit of
GBP11.0 million after recognising a surplus on revaluation of investment and
development property of GBP8.2 million. Had the acquisition occurred on 1
January 2009 the Group net revenue would have been GBP5.8 million higher, and
the Group net loss would have been GBP20.4 million higher, after charging a
deficit on revaluation of investment and development property of GBP26.2
million.
The assets and liabilities acquired as at 2 October 2009 were:
+----------------------------------------------------+---------+----------+---------+
| | Book | | Fair |
+----------------------------------------------------+---------+----------+---------+
| | value | | value |
+----------------------------------------------------+---------+----------+---------+
| | GBPm | | GBPm |
+----------------------------------------------------+---------+----------+---------+
| Non-current assets | | | |
+----------------------------------------------------+---------+----------+---------+
| Investment properties | 276.3 | | 276.3 |
+----------------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------------+---------+----------+---------+
| Current assets | | | |
+----------------------------------------------------+---------+----------+---------+
| Trade and other receivables | 15.6 | | 15.6 |
+----------------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------------+---------+----------+---------+
| Current liabilities | | | |
+----------------------------------------------------+---------+----------+---------+
| Trade and other payables | (207.7) | | (207.7) |
+----------------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------------+---------+----------+---------+
| Non-current liabilities | | | |
+----------------------------------------------------+---------+----------+---------+
| Trade and other payables | (1.7) | | (1.7) |
+----------------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------------+---------+----------+---------+
| Net assets acquired | 82.5 | | 82.5 |
+----------------------------------------------------+---------+----------+---------+
23. Related Party Transactions
Transactions between the company and its subsidiaries, which are related
parties, have been eliminated on consolidation for the Group.
Amounts due from and to related companies by Group companies are disclosed in
aggregate in notes 12 and 13 respectively.
Significant transactions between the parent company and its subsidiaries are
shown below:
+------------------------------------+----------------+------+----------+------+
| | Nature of | 2009 | | 2008 |
+------------------------------------+----------------+------+----------+------+
| Subsidiary | transaction | GBPm | | GBPm |
+------------------------------------+----------------+------+----------+------+
| | | | | |
+------------------------------------+----------------+------+----------+------+
| Chapelfield LP Limited | Interest | - | | 13.6 |
| | receivable | | | |
+------------------------------------+----------------+------+----------+------+
| CSC (Eldon Square) Limited | Interest | 1.2 | | 7.2 |
| | receivable | | | |
+------------------------------------+----------------+------+----------+------+
| CSC Bromley Limited | Interest | 1.3 | | 0.8 |
| | receivable | | | |
+------------------------------------+----------------+------+----------+------+
| CSC Harlequin Limited | Interest | 12.7 | | 11.1 |
| | receivable | | | |
+------------------------------------+----------------+------+----------+------+
| CSC Lakeside Limited | Interest | 12.2 | | 10.7 |
| | receivable | | | |
+------------------------------------+----------------+------+----------+------+
| CSC MetroCentre Limited | Interest | 17.0 | | 15.7 |
| | receivable | | | |
+------------------------------------+----------------+------+----------+------+
| CSC Potteries Limited | Interest | 4.7 | | 2.2 |
| | receivable | | | |
+------------------------------------+----------------+------+----------+------+
| CSC Properties Investment Limited | Interest | - | | 12.9 |
| | receivable | | | |
+------------------------------------+----------------+------+----------+------+
| CSC The Hayes Limited | Interest | - | | 8.2 |
| | receivable | | | |
+------------------------------------+----------------+------+----------+------+
| Xscape Braehead Partnership | Interest | 0.6 | | - |
| | receivable | | | |
+------------------------------------+----------------+------+----------+------+
| Braehead Glasgow Limited | Interest | 4.9 | | 6.3 |
| | payable | | | |
+------------------------------------+----------------+------+----------+------+
| Braehead Park Estates Limited | Interest | 0.7 | | 0.6 |
| | payable | | | |
+------------------------------------+----------------+------+----------+------+
| CSC Properties Limited | Interest | 39.4 | | 38.4 |
| | payable | | | |
+------------------------------------+----------------+------+----------+------+
| The MetroCentre Partnership | Interest | 1.1 | | 2.2 |
| | payable | | | |
+------------------------------------+----------------+------+----------+------+
| Braehead Glasgow Limited | Dividend | - | | 21.0 |
| | receivable | | | |
+------------------------------------+----------------+------+----------+------+
| Braehead Park Investments Limited | Dividend | - | | 20.0 |
| | receivable | | | |
+------------------------------------+----------------+------+----------+------+
| CSC Properties Limited | Dividend | - | | 39.0 |
| | receivable | | | |
+------------------------------------+----------------+------+----------+------+
Significant balances outstanding are shown below:
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| Company | Amounts owed | | Amounts owed |
+----------------------------------------+--------------------------+----------+------------------------------+
| | by subsidiaries | | to subsidiaries |
+----------------------------------------+--------------------------+----------+------------------------------+
| | 2009 | | 2008 | | 2009 | | 2008 |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| Subsidiary | GBPm | | GBPm | | GBPm | | GBPm |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| | | | | | | | |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| Belside Limited | 133.0 | | - | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| Braehead Glasgow Limited | - | | - | | (70.6) | | (80.2) |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| Braehead Park Estates Limited | - | | - | | (12.1) | | (11.8) |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| Braehead Park Investments Limited | 5.7 | | 5.7 | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| Broadway Retail Leisure Limited | 10.4 | | 9.4 | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| Chapelfield Limited Partnership | 19.5 | | 12.9 | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| Cribbs Causeway JV Limited | - | | - | | - | | (3.5) |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| CSC Braehead Leisure Limited | 7.7 | | 12.2 | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| CSC Bromley Limited | 29.3 | | 16.9 | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| CSC Chapelfield Residential Limited | 7.1 | | 7.3 | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| CSC Enterprises Limited | 2.8 | | 2.9 | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| CSC Harlequin Limited | 232.7 | | 189.1 | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| CSC Lakeside Limited | 279.7 | | 185.8 | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| CSC MetroCentre Limited | 280.2 | | 227.3 | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| CSC Potteries Limited | 183.2 | | 190.3 | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| CSC Properties Investment Limited | - | | - | | (29.2) | | (82.4) |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| CSC Properties Limited | - | | - | | (664.9) | | (611.7) |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| CSC The Hayes Limited | 368.3 | | 309.5 | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| CSC Uxbridge (Jersey) Limited | - | | - | | (60.8) | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| Curley Limited | 198.2 | | - | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| Manchester JV Limited | - | | - | | (6.3) | | (4.9) |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| The MetroCentre Partnership | 0.7 | | 23.7 | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| The St David's Partnership | - | | 14.8 | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| Westgate Oxford Investments Limited | 16.8 | | 16.9 | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
| Xscape Braehead Partnership | 7.8 | | - | | - | | - |
+----------------------------------------+-------+----------+-------+----------+---------+----------+---------+
24. Key Management Compensation
+----------------------------------------------------+--------+----------+--------+
| | 2009 | | 2008 |
+----------------------------------------------------+--------+----------+--------+
| | GBPm | | GBPm |
+----------------------------------------------------+--------+----------+--------+
| | | | |
+----------------------------------------------------+--------+----------+--------+
| Salaries and short-term employee benefits | 1.9 | | 1.5 |
+----------------------------------------------------+--------+----------+--------+
| Pensions and other post-employment benefits | 0.1 | | 0.2 |
+----------------------------------------------------+--------+----------+--------+
| Share based payment | - | | - |
+----------------------------------------------------+--------+----------+--------+
| Long term incentives | - | | 0.1 |
+----------------------------------------------------+--------+----------+--------+
| Termination benefits | - | | 0.5 |
+----------------------------------------------------+--------+----------+--------+
| | | | |
+----------------------------------------------------+--------+----------+--------+
| | 2.0 | | 2.3 |
+----------------------------------------------------+--------+----------+--------+
Key management comprise the Managing Director of Capital Shopping Centres PLC,
and those Executive Directors of Capital Shopping Centres PLC who are not also
directors of Liberty International PLC.
25. Contingent Liabilities
There were no contingent liabilities at 31 December 2009. At 31 December 2008,
the Group had contingent liabilities as shown. The Group's joint venture with
Land Securities, the St. David's Limited Partnership, made annual rental
payments of approximately GBP2.5 million per annum in respect of land to be used
for car parking space. If this arrangement had ceased, the partnership would
have been liable to make a payment of approximately GBP58 million to
compulsorily purchase the land, 50 per cent, which represents the Group's
interest in the partnership, may have to be funded by the Group.
26. Ultimate Parent Company
The immediate and ultimate parent company is Liberty International PLC, a
company incorporated and registered in England and Wales, copies of whose
consolidated financial statements may be obtained from the Company Secretary, 40
Broadway, London, SW1H 0BT.
27. General Information
The company is a public limited company incorporated in England and Wales and
domiciled in the UK. The address of its registered office is 40 Broadway, London
SW1H 0BU.
--- ENDS ---
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EALLNASXEEFF
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