RNS Number:2489P
Westbury Property Fund Limited
01 September 2003
The Westbury Property Fund Limited
Unaudited Interim Results
For the period from 01 January 2003 to 30 June 2003
Page
Chairman's Statement 3
Consolidated Statement of Operations 5
Consolidated Balance Sheet 6
Company Balance Sheet 7
Consolidated Cash Flow Statement 8
Notes to the Financial Statements 9
Management and Administration 10
This interim report is published in respect of six months to 30 June 2003.
During this period, Income Share dividends of 3p and 2p per Income Share have
been paid during March and June respectively.
Going forward and in the absence of any unforeseen circumstances, it is the
intention of the Board to declare and pay quarterly dividends of 2p per Income
Share in line with their entitlement to receive a fixed preferential dividend of
8% per annum over their life.
Performance
The latest IPD Quarterly Benchmark Report to end June 2003 has been published.
The Index which tracks performance of our peer group property funds has ranked
the Westbury Property Fund's Q2 performance in the top 10% of the 54 funds
analysed. The total returns for the Fund for Q2 were 4.0% vs. IPD Monthly
benchmark of 2.7%. For the twelve months to the end of June, the Fund's
performance stood at 15.7% vs. IPD benchmark of 10.1%.
Net Asset Value
The Capital Shares are entitled to all of the assets of the Company after
satisfaction of all debt and other liabilities of the Company and the
entitlements of Income Shareholders.
I am pleased to report that the audited net asset value per Capital Share is
104.19p as at 30 June 2003. This is an increase of some 8.37% over the audited
net assets as at 31 December 2002.
This strong performance has been generated across the entire portfolio and has
not been confined to any one single asset or sector.
Bank Borrowings
As at 30 June 2003, the Company had fixed rate borrowings with Bradford and
Bingley amounting to #32.5m drawn down at an average all in cost of just under
6% per annum. Under the terms of the bank facility, the Company can borrow a
further #13.5m but the Board intends to ensure, for the foreseeable future, that
net debt will not exceed 65% of gross assets.
Property Portfolio
At the period end, the Company's property portfolio comprised eleven let
standing investments and two pre-let development properties spread across 12
locations throughout the UK. On completion of the pre-let developments later
this year, the portfolio will have 36 tenancies, an annualised total rent roll
of #5m and a weighted average lease length of 14.5 years unexpired.
The Directors have adopted the 30 June 2003 open market valuation returned by
the Company's independent valuers Knight Frank. This confirms a total for the
individual property values of #63.0m with outstanding commitments to pay a
further #4.6m following completion of the Worcester and Guildford properties.
Following completion of the disposal of the Wickes asset at Eastbourne and on
the basis of no further disposals or increases in capital, the Company intends
to target for the balanced portfolio approximately #5m of further investment
during the remainder of 2003.
A number of asset management initiatives are underway which could result in some
significant enhancements across a number of our properties.
Venture Properties
The Company has looked in detail at three significant venture transactions
during the last six months. Unfortunately, during March, one of the transactions
was aborted in its final stages due to issues arising in the late stages of due
diligence. The other two transactions are on going and announcements will be
made as soon as contracts are exchanged. Venture transactions are by nature more
complicated to arrange and can take considerable time to come to fruition.
Full Year Outlook
We are seeing an increasing number of property portfolios coming to the market
as a result of large institutions re-weighting their property portfolios towards
equities. We have noticed a tightening of yields as the syndicated and private
investor market still remains buoyant. With interest rates set to remain at
around the current levels, well let property assets remain attractive
investments particularly where there are strong covenants and long leases.
Your Board is encouraging the Investment Manager to seek out further property
acquisitions and provided further equity can be raised, there is a good prospect
that the gross assets of the Company can be expanded which will result in our
fixed operating costs being supported by an enlarged rent roll.
As has been reported by the Investment Manager in the monthly performance
report, the income shortfall for this period has already been covered by the
unrealised gains at the half-year stage. As a result, for the remainder of the
year, any further realised or unrealised gains will flow straight through to the
Capital Share NAV.
Investment Manager
Since the period end, your Board has been made aware of a restructuring at
Westbury Fund Management Limited and its affiliates. (Removed sentence "Westbury
was formed in 2001........)"
Following full consultation with your Board and its unanimous approval, Westbury
Fund Management Limited has provisionally agreed to novate the Investment
Management Agreement to Berrington Fund Management Limited, a new company formed
on behalf of Richard Burrell and Ethel Austin Investments Limited, a private
property investment company.
Berrington Fund Management Limited will focus exclusively on property investment
management and will continue to work very closely with the existing team of
investment advisers, Duncan Owen and Philip Gadsden of Gatehouse and Andrew Bird
of Barlows. Your Board is satisfied that there will be no change to the
composition of the Investment Committee and welcomes this continuity as well as
Berrington's dedicated focus to property investment management.
The Guernsey Financial Services Commission has been notified of this proposed
novation and completion will take place subject to its final approval and
agreement on final documentation. On completion, Berrington Fund Management
Limited will become an FSA Appointed Representative of Westbury Asset Management
Limited.
Westbury Asset Management will continue to be a multi-fund asset management
company operating across a variety of asset classes including commercial
property, equity and fixed income hedge funds.
Rodney Baker-Bates, Chairman
1st September, 2003
01/01/2003 10/01/2002
to to
30/06/2003 31/12/2002
Unaudited Audited
# #
Income
Rent receivable 1,844,755 2,172,872
Bank interest 31,559 66,871
Total Income 1,876,314 2,239,743
Expenses
Interest payable and similar charges, including
dividends on income shares 1,965,365 2,082,509
Investment Manager's fees 462,002 632,125
Legal and professional fees 142,518 284,204
Property management expenses 28,615 115,397
Administration fee 32,000 71,000
Directors' fees 33,500 47,388
General expenses 107,801 41,087
Bank charges 11,448 25,606
Audit fee 15,978 20,500
Total Expenses 2,799,227 3,319,816
Net loss before investment result (922,913) (1,080,073)
Realised gain on sale of investment properties - 326,638
Unrealised gain on revaluation of investment properties 1,712,838 821,209
Net profit for the period 789,925 67,774
Basic and diluted profit per Capital Share 8.05p 0.69p
30/06/2003 31/12/2002
Unaudited Audited
# #
Non-current Assets
Investment properties 62,962,241 49,426,650
62,962,241 49,426,650
Current Assets
Cash and cash equivalents 196,109 2,033,744
Debtors 376,540 361,853
572,649 2,395,597
Total Assets 63,534,890 51,822,247
Current Liabilities
Creditors (970,402) (599,926)
Non-current Liabilities
Long term loan (32,265,265) (21,770,514)
Income shares (20,072,016) (20,014,525)
Total Liabilities (53,307,683) (42,384,965)
Net Assets 10,227,207 9,437,282
Capital and Reserves
Share capital 981,615 981,615
Share premium 8,387,893 8,387,893
Reserves 857,699 67,774
Total Capital Employed 10,227,207 9,437,282
Net Assets Per Capital Share 104.19p 96.14p
The unaudited financial statements on pages 5 to 9 were approved at a meeting of
the Board of Directors held on 1st September 2003 and signed on its behalf by:
Rodney Baker-Bates, Chairman )
)
Peter Dickson, Director )
30/06/2003 31/12/2002
Unaudited Audited
# #
Non-current Assets
Investment in subsidiary company 10,630,002 10,000,002
Loan to subsidiary company 49,707,590 39,997,981
60,337,592 49,997,983
Current Assets
Cash and cash equivalents 30,713 711,237
30,713 711,237
Total Assets 60,368,305 50,709,220
Current Liabilities
Creditors (49,318) (192,400)
Non-current Liabilities
Long term loan (32,265,265) (21,770,514)
Income shares (20,072,016) (20,014,525)
Total Liabilities (52,386,599) (41,977,439)
Net Assets 7,981,706 8,731,781
Represented by:
Capital and Reserves
Share capital 981,615 981,615
Share premium 8,387,893 8,387,893
Reserves (1,387,801) (637,727)
Issued capital and reserves 7,981,707 8,731,781
01/01/2003 10/01/2002
to to
30/06/2003 31/12/2002
Unaudited Audited
# #
Operating activities
Rent received 2,347,787 2,163,555
Bank interest received 31,559 66,871
Expenses paid (928,862) (1,125,461)
Interest paid and similar charges, including
dividends on income shares (1,965,365) (1,916,248)
Net cash outflow from operating activities (514,881) (811,283)
Investing Activities
Purchase of investment properties (11,822,754) (52,457,553)
Sales of investment properties - 4,229,528
Net cash outflow from investing activities (11,822,754) (48,228,025)
Financing Activities
Issue of Capital Shares - 9,816,146
Issue costs paid on issuance of Capital Shares - (429,032)
Issue of Income Shares - 20,848,140
Issue costs paid on issuance of Income Shares - (911,202)
Draw down of long term loan 10,500,000 22,000,000
Issue costs paid on long term loan - (251,000)
Net cash inflow from financing activities 10,500,000 51,073,052
(Decrease) Increase in cash and cash equivalents (1,837,635) 2,033,744
Cash and cash equivalents at 01 January 2003 2,033,744 -
Cash and cash equivalents at 30 June 2003 196,109 2,033,744
1. The results for the six-month period, which are not statutory accounts and
have not been audited, have been prepared on the same basis as set out in
the audited accounts for the period ended 31 December 2002.
2. The results for the year ended 31 December 2002 constitute non-statutory
accounts extracted from the statutory accounts for that period which have
been filed with the Registrar of Companies and on which the auditors gave an
unqualified report.
3. All turnover and operating profit arose from continuing operations.
4. Basic and diluted profit per Capital Share is based on the net profit for the
period and on 9,816,146 Capital Shares in issue.
5. Dividends payable on Income Shares
01/01/2003 10/01/2002
Rate Rate to to
No. of Income pence pence 30/06/2003 31/12/2002
Shares 2003 2002 # #
First interim dividend paid 31 March 2003 20,848,140 3.00 2.00 625,444 416,963
Second interim dividend paid 30 June 2003 20,848,140 2.00 3.00 416,963 625,444
1,042,407 1,042,407
6. The figures for properties at 30 June 2003 and 31 December 2002 are based on
valuations determined by Knight Frank.
7. A copy of this statement has been sent to every shareholder. Further copies
are available from the Company's registered office.
8. The interim financial statements were approved at a meeting of the Board of
Directors held on 1st September, 2003.
9. Reconciliation of monthly net asset value as published to net asset value per
interim financial statements:
30 June 2003 30 June 2003 31 December 2002 31 December 2002
#000 P per capital share #000 P per capital share
Net Asset Value 10,307 105.00 9,828 100.12
reported to London
Stock Exchange
Unamortised property (257) (2.61) (490) (4.99)
acquisition costs
Net profit (loss) 119 1.21 (38) (0.39)
for the period
before investment
result and dividends
to income
shareholders
Amortisation of 58 0.59 137 1.4
income share and
loan issue costs
Net Asset Value per 10,227 104.19 9,437 96.14
accounts
Directors: Rodney Baker-Bates
Tim Chesney
Peter Dickson
William Kay
Iain Stokes
Investment Committee: Richard Burrell
Mark Ellis
Philip Gadsden
Duncan Owen
Andrew Bird
Registered Office: Trafalgar Court,
Les Banques,
St. Peter Port,
Guernsey,
Channel Islands
Investment Manager: Westbury Fund Management Limited,
Trafalgar Court,
Les Banques,
St. Peter Port,
Guernsey,
Channel Islands,
GY1 3QL
Investment Advisers to the Gatehouse Investment Management Limited,
Investment Manager: The Gatehouse,
16 Arlington Street,
St James's,
London,
SW1A 1RD
Barlows Asset Management Limited,
Chepstow House,
Dee Hills Park,
Chester,
CH3 5AR
Administrator, Secretary Guernsey International Fund Managers Limited,
Trafalgar Court,
and Channel Islands Les Banques,
Sponsor: St. Peter Port,
Guernsey,
Channel Islands,
GY1 3QL
Auditors: Ernst & Young LLP,
14 New Street,
St. Peter Port,
Guernsey,
Channel Islands,
GY1 4AF
Independent Property Knight Frank, Chartered Surveyors,
Valuer: 20 Hanover Square,
London,
W1S 1HZ
Principal Bankers: Bradford & Bingley plc.,
PO Box 88,
Croft Road,
Crossflatts, Bingley,
West Yorkshire,
BD16 2UA
Legal Advisers: DWF,
(In England) Castle Street,
Liverpool,
L2 4XE
The City Law Partnership,
99 Charterhouse Street,
London,
EC1M 6NQ
Legal Advisers: Carey Olsen,
(In Guernsey) 7 New Street,
St Peter Port,
Guernsey,
Channel Islands,
GY1 4BZ
Stockbroker: Teather and Greenwood Limited,
Beaufort House,
15 St. Botolph Street,
London,
EC3A 7QR
This information is provided by RNS
The company news service from the London Stock Exchange
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