2013 Interim Results Announcement
Interim Results Announcement
The Group's results for the six months ended 30 June 2013 have been announced showing a return to profit and significant strategic and operational progress.
John Clare, the Chairman, said - "We have made significant progress against our strategic objectives in the year to date, most notably the reduction in The Mall's debt which provides greater options for its refinancing. We enter the second half of 2013 with renewed confidence in our future performance and our ability to drive shareholder value as reflected in the resumption of dividend payments."
Hugh Scott-Barrett, Chief Executive commented - "In the first half of the year we have delivered improved performance, with growth in NAV, and a return to profitability. Following these achievements, and against a backdrop of improving market sentiment, we have a number of exciting and value enhancing asset management opportunities across the business. With the Company now focussed on executing its strategy for growth we are confident that the affordability and quality of the space at our assets will continue to attract tenants to our centres, and that we will leverage the ability of our skilled asset management teams to continue to perform strongly."
Progress in execution of strategy
- Sale by The Mall of shopping centres at Sutton Coldfield and Uxbridge in July for a total of £152.5 million focusses The Mall around a £676 million core portfolio of dominant community centres with a strong south east bias
- Reduction of The Mall debt to £379.5 million (LTV: 56%) in July enables distributions by The Mall to recommence and increases its refinancing options
- Sale of Hemel Hempstead leisure scheme expected to conditionally exchange imminently with proceeds anticipated to exceed £8.5 million, ahead of year end valuation
- Return to profitability with a pre-tax profit of £3.7 million (June 2012: loss of £9.2 million)
- Increase in net assets per share to 52p (2012 year end: 51p); EPRA net assets remain at 55p
- Proforma see-through net debt2 to property value fell to 53% compared to 55% at 2012 year end
- €141 million multi portfolio refinancing of German debt for three years agreed
- Resumption of dividend payments with a 0.25p interim dividend
- UK Shopping Centres contracted rent at June 2013 up £0.9 million year on year to £71.5 million
- Attractive and affordable space in UK Shopping Centres driving 27 new lettings and 12 renewals totalling £2.6 million at rents above ERV
- Significant milestones achieved with the start of the £9 million transformational refurbishment at Lincoln and pre-lets signed with Nando's and Pure Gym in the new leisure hub at Redditch
- Robust German operational performance driving recurring profit of £3.5 million in H1 with asset management initiatives delivering additional income security
- Recycle cash from further disposals of non-core assets into the UK Shopping Centre business
- Drive occupancy, income and capital growth through the execution of asset management opportunities which are in progress
- Implementation of refinancing strategy for The Mall
|6m to June 2013
|Year to Dec 2012
|6m to June 2012
|Recurring pre-tax profit ¹
Profit/(loss) after tax
|NAV per share
EPRA NAV per share
|Proforma group net debt²
Proforma see through net debt²
¹ As defined in Note 1 to the financial statements.
² Figures are proforma, June 2013 adjusted for £168 million repayment by The Mall in July 2013 and December 2012 adjusted for £30.6 million X-Leisure proceeds received in January 2013.