2013 Results & Annual Report



Progress in execution of strategy

  • Purchase of Mall Fund units during 2013, increasing Group's share from 20.15% to 29.26% 
  • Successful disposals of Jarman Fields, Hemel Hempstead (£8.5 million) and the Great Northern Warehouse in Manchester (£71.1 million), both non-core Leisure assets
  • Sales completed of The Pavilions, Uxbridge and the Gracechurch Centre, Sutton Coldfield by The Mall Fund, reducing its 30 December 2013 LTV to 55% and thereby increasing options for CMBS refinancing


  • Return to profitability with profit before tax of £9.3 million (2012: loss of £12.7 million)
  • Recurring pre-tax profit² of £14.0 million (2012: £17.0 million) reflecting impact of disposals
  • Increase in NAV and EPRA NAV per share to 54p and 56p (2012: 51p and 55p, respectively)
  • Repayment of Group's on-balance sheet debt. Proforma see-through net debt¹ to property value fell to 52% compared to 55% at 2012 year end
  • Refinancing of €141 million of German debt completed with a new three year facility
  • Resumption of dividend payments with total 2013 dividend of 0.65p per share


  • Combination of active asset management programme and attractive and affordable space led to:
    • 56 new lettings, adding revenue of £5.0 million; and
    • 31 lease renewals adding £1.5 million, at a combined 0.7% above ERV
  • Strong retail occupancy across our UK shopping centres at 96.3% at 30 December 2013
  • Footfall outperformed national benchmark by 1.2%
  • Ongoing progress with redevelopment initiatives:
    • Lincoln - phase two of £9 million redevelopment on schedule with 65% of redevelopment space by value already let
    • Redditch - Hub leisure concept well advanced with new gym open for trade

Future priorities

  • Deliver value from agreed £40 million asset management programme across core portfolio of eight UK shopping centres
  • Accelerate realisation of value from the German portfolio and further disposals of other non-core assets to create shareholder value by strengthening our core UK Shopping Centre business
  • Conclude refinancing of The Mall Fund CMBS, for which detailed negotiations are ongoing with a number of interested parties
  2013 2012
Total shareholder return³
Recurring pre-tax profit²
Profit/(loss) before tax
NAV per share
EPRA NAV per share
Proforma Group net debt¹
Proforma see through net debt¹

¹2013 adjusted for £8.4 million Hemel Hempstead net proceeds received in February 2014, 2012 adjusted for £30.6 million X-Leisure proceeds received in January 2013.
²As defined in Note 1 to the financial statements.
³Change in share price plus dividends paid in the year.

Commenting on the results, John Clare, Chairman, said:
"During the course of the year, the Group continued to make significant progress in the execution of its strategy and I am pleased to report that this was reflected by a 6% increase in NAV per share from 2012, a return to profitability, with profit before tax for the year of £9.3 million, and the resumption of dividend payments. With a much strengthened financial position, we will now be focusing our financial resources and management skills on investing in and actively managing a portfolio of dominant UK community shopping centres, building on our proven track record of recycling capital to consolidate our position as a leading UK retail property company."

Hugh Scott-Barrett, Chief Executive, added:
"We are now seeing a clear uptick in economic conditions which, in turn, has had a positive impact on retailer and consumer confidence. These factors, combined with a much improved investment market, are providing a very supportive background for our UK shopping centre business. We have benefited from an active programme of asset management during the year, which has enhanced our operating performance and valuations towards the end of 2013. We expect this trend to continue in 2014 and therefore look forward to making further progress in our drive to grow the Company and enhance value for investors."

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