|
|
25 March 2008
ALPHA TIGER PROPERTY TRUST LIMITED
(“ALPHA TIGER” OR THE “COMPANY”)
NOTIFICATION OF YEAR END RESULTS
Alpha Tiger, the Indian real estate development and investment company, today announces its results covering the period from incorporation to 31 December 2007
Highlights include:
Contact:
David Jeffreys
Chairman, Alpha Tiger
01481 723450
Brad Bauman
Fund
Manager, Alpha Real
Capital India
+ 91 9980 00 11 22
Alpha Tiger Property Trust Limited
Results for the period from incorporation to 31 December 2007
Company summary and objective
Objective
Alpha Tiger Property Trust Limited (“the Company” or “Alpha Tiger”) invests in and develops real estate in India that offers high total returns. The Company focuses on business parks and business park-led mixed use properties.
Strategy
Alpha Tiger seeks to work closely with international occupiers and local real estate companies in order to access land and transition it through the development process, up the property value and quality curve. The Company focuses on working in partnerships to achieve reasonably priced developments and investments which can deliver a number of key benefits to stakeholders, which include:
· High-quality, high-specification commercial space at competitive rents for Alpha Tiger’s tenants;
· Flexibility in terms of the scale, mix and timing of development for the benefit of both tenants and the communities in which Alpha Tiger participates; and
· Strong profitability for investors.
Management
The Company’s Investment Manager is Alpha Real Capital LLP (“the Investment Manager”). Control of the Company rests with the non-executive Guernsey based Board of Directors.
Listing
The Company’s shares were admitted to the Alternative Investment Market of the London Stock Exchange on 22 December 2006.
Financial highlights
|
|
Period 15 May 2006 to 31 December 2007 |
Period 15 May 2006 to 30 June 2007 |
|
Net asset value (£’000) |
74,338 |
73,121 |
|
Net asset value per share |
99.1p |
97.5p |
|
Profit for the period (£’000) |
2,267 |
1,051 |
|
Earnings per share (basic and diluted) |
3.0p |
1.4p |
Chairman’s Statement
I am pleased to present the Company’s results for the period from incorporation to 31 December 2007.
Alpha Tiger was established for the purposes of investing in and developing real estate in India. The Company’s objective is to target investment and development opportunities in real estate in India that will offer high total returns. The Company’s investment strategy includes both property investment and development, focussing on business parks and business-park led mixed use properties and township projects.
The Company seeks to diversify risk through investments in existing real estate, forward funding of development opportunities and development partnerships on both a pre-committed and speculative basis, and to create a geographic spread of properties across India which provides a variety of tenants with strong covenants.
During 2007, the Indian real estate market has continued its robust performance despite a global environment of financial uncertainty. Rents have continued to grow and property investment yields have fallen marginally as higher domestic interest rates have stabilised despite continuing evidence of conservative bank lending policies.
Investment activity
The Company has established a strong presence within the National Capital Region (NCR) of New Delhi. New Okhla Industrial Development Authority (NOIDA) has confirmed itself as a lower cost option for corporate occupiers and a competitive alternative destination to Gurgaon for the IT/ITeS industry and other business park tenants.
The Company is progressing substantial developments with Logix Group (Logix), one of the leading developers of business parks in Northern India. In NOIDA Sector 132 Alpha Tiger has executed an agreement with Logix to acquire a 74 per cent. equity interest in a Special Purpose Vehicle (SPV) for the purposes of holding and co-developing approximately 575,000 sq. ft. of business park and other support facilities. The anticipated cash commitment of the Company is £11.5 million. Subsequent to the year end, Alpha Tiger has invested £5.1 million.
Alpha Tiger has made a further investment in NOIDA at Sector 140a. This is a co-development in partnership with Logix to build 1.2 million square feet of business park-led space in an SEZ and representing a cash commitment of £14.7 million for a 50% interest in the total development.
Given its improving infrastructure and connectivity to Delhi and significant tenant demand for business park space, NOIDA is an ideal locality for the Company to expand its activities. The Company is actively considering additional projects in this market.
Additionally, as previously reported, the Company has conditionally agreed to acquire from Xansa plc (subsequently acquired by Groupe Steria SCA, listed on Euronext Paris) approximately 40 acres of development land and six investment properties in Chennai, Pune and NOIDA for up to £36 million, with the capacity to develop up to 3.4 million sq. ft. of new business park space. The Company currently intends to initially commit up to £40 million of additional capital expenditure to build 1.7 million sq. ft. of high-quality business park space.
In aggregate, the Company is close to conditional full equity commitment based on executed transactions.
Results, finance and dividends
Results for the period show a profit after interest and tax of £2.3 million.
The net asset value per share was 99.1 pence at 31 December 2007.
The Company has no existing borrowings but expects to target borrowing levels of between 50% and 65% of Gross Assets in due course.
In accordance with the dividend policy set out in the Company’s Admission Document, the Board does not propose to pay a dividend for the period. The Board will consider the payment of a dividend as the Company’s development programme matures.
Economic outlook
India is the third largest economy in the world after the United States and China as measured by purchasing power parity (PPP) with gross domestic product (GDP) in 2007 estimated to be $US 4.7 trillion (International Monetary Fund). India is also the second fastest growing major economy in the world, after China. Between 2004 and 2006, GDP grew at an average of 8.5% per annum. The growth momentum has accelerated further and GDP is estimated to have grown at over 9.0% in 2007. This growth is supported by India’s stable political outlook, growing foreign exchange reserves, sustained growth in its service and industrial sectors, young demographic profile and regulated financial environment.
The services sector, which is a key source of demand for business park space, is the fastest growing sector in the Indian economy. From 2007 to 2011, growth in this sector is expected to be 13.9% per annum.
The Indian real estate industry has grown at 30% per annum over the past few years and is expected to grow in excess of 20% per annum over the next few years. The industry is expected to grow from US$48 billion in FY2007 to US$140 billion by FY2012 (CAGR of 21% per annum.). (Ernst and Young - Indian Real Estate (December 2007))
Property market outlook
Growth in rental and capital values is expected to continue in the year ahead with demand for space from tenants likely to exceed supply.
The absence of a securitised debt market has insulated India from the recent uncertainties in European and US credit markets and, despite rises in Indian interest rates, investment asset prices have continued to strengthen, reflecting the strong financial growth drivers underlying the Indian property market.
The 39 million sq. ft. of new office supply absorbed in 2007 has demonstrated the continued maturation of the Indian market with space absorption and rentals reaching all time highs across many sub-markets.
The rental trend line has continued to rise during the year with significant rental escalations in markets such as the NCR, Bangalore and Mumbai.
Delhi National Capital Region
The NCR market with its overall competitiveness, including infrastructure and manpower, continues to grow as a corporate destination. Improvements such as the Delhi-Gurgaon Highway are expected to open in the next quarter improving the traffic flow between the cities and communication within the NCR. The year ahead is expected to see continued demand for business park space.
Chennai
The city is still on a growth curve with improved focus on infrastructure including improvements to the Old Mahabalipuram Road, where the Company’s Chennai development project is located. The city has witnessed substantial new investment in infrastructure and enjoys strong tenant demand.
Pune
The proposed expansion of the city limits by the Pune Municipal Corporation will promote planned growth which should benefit the Xansa site at Talewade. The skyline of the city is also set to change with State Government relaxation of height restrictions. In addition the repealing of the Urban Land Ceiling Act will make land capable of supporting additional development.
Real Estate Investment Trusts
During the period, the Securities and Exchange Board of India released a draft proposal for the launch of a scheme for Real Estate Investment Trusts. This will allow retail investors to participate in the real estate industry which should provide a further impetus for values and liquidity. It also has the potential to provide the Company with a further avenue to create value in the future.
Summary
The Company continues to see attractive opportunities for investing in Indian real estate – particularly business park developments. Generally, both economic and property market conditions remain favourable with strong and growing tenant demand keeping pace with increasing availability of stock. In particular, there remains a significant market opportunity for higher-quality, operationally efficient business park space that meets the international standards of global occupiers.
Alpha Tiger remains focused on creating value and quality real estate through the development of world class business park-led environments.
David Jeffreys
Chairman
25 March 2008
Property Investment Review
Alpha Tiger has established a very strong base for future growth. The Company’s pipeline has been further strengthened by forging promising relationships with leading local development partners demonstrating world-class execution and with international tenants.
The Company executed a legally binding framework agreement with Xansa plc, a leading outsourcing and technology company, to purchase 40 acres of development land and the sale and leaseback of Xansa’s real estate interests in India. The agreement also appoints Alpha Tiger as Xansa’s preferred real estate supplier in India to facilitate best-in-class development and management of the properties.
Xansa subsequently announced a takeover by Groupe Steria SCA, and this is likely, in the opinion of the Investment Manager, to improve the potential opportunity for the Company as a strategic real estate supplier for Xansa’s continuing business expansion in India.
The Company is advancing the execution of transactions envisaged within the framework agreement and will announce their completion in due course. The properties subject to the new agreement are as follows:
Development Land
Chennai – 25 acres
The Chennai site is long leasehold with development rights over 25 acres of undeveloped land. The land has received Special Economic Zone (SEZ) approval and is awaiting final notification from the Ministry of Commerce. Approval has been received for the arrangements whereby the site will be transferred to a new SPV and for Alpha Tiger to be appointed as co-developers. Substantial progress has taken place in respect of the project: a detailed feasibility study has been completed, development managers have been appointed, and the masterplanning of the site has been significantly progressed. The land will provide development potential for at least 2.2 million sq .ft. of floor space and it is intended that the site will be developed in four phases over four to five years.
Pune – 15.7 acres
The Pune site is a long leasehold with development rights over approximately 15.7 acres. This site has the ability to develop up to an additional area of approximately 1.2 million sq. ft. of floor space. The intention is to develop this site in three phases over three to four years.
Investment Properties
NOIDA
The properties in NOIDA, within the National Capital Region of Delhi, consist of two separately located office buildings; one four storey building (with ground and two basement levels) over 180,000 sq. ft. of floor area; and a two-storey building (with ground and basement level) over 42,000 sq. ft. of floor area.
Pune
The properties in Pune comprise two two-storey buildings within a master planned business park: (Phase I with basement, ground floor, first floor and canteen; Phase II with two basements, ground floor and first floor), in a campus-style setting with a combined floor area of over 95,000 sq. ft.
Chennai (Madras)
The properties in Chennai are in a campus-style development with two three storey buildings representing a floor area of over 165,000 sq. ft.
Development Funding
NOIDA
On 3 December 2007, the Company announced it had entered into an agreement to acquire a 74 per cent. equity interest in a business park project (Logix Technova) in NOIDA Sector 132, in the NCR, near Delhi, India. Subsequent to the balance sheet date, the Company has invested in partnership with Logix in a SPV incorporated for the purpose of holding and developing the land which is the subject of the transaction.
The Company together with Logix will develop approximately 575,000 sq. ft. of business park and other support facilities at the site. The estimated cash requirement to be paid by the Company for 74 per cent. of the equity (voting and economic rights) in the SPV is INR 895 million (£11.5 million). This amount shall be satisfied in stages. Since the balance sheet date, INR 400 million (£5.1 million) has been paid, further to the satisfaction of certain conditions precedent. Upon the earlier of either the SPV achieving 90 per cent. of the leasable area being contracted to prospective tenants and 24 months from the date of the transaction, Alpha Tiger shall subscribe for further equity to achieve 74% of voting and economic ownership of the SPV. Prior to this conversion mechanism, the Company shall retain a 5 per cent. voting interest in the SPV.
The SPV has entered into a development agreement with VC Solutions Private Limited for the construction of the buildings and the development is forecast to be completed and occupied within 24 months (by December 2009).
On 25 March 2008, the Company announced that it had entered into an agreement with Logix for a 1.2 million sq.ft. co-development in Sector 140a. The Company has agreed to acquire a 50% stake in an SPV which owns the development.
The SPV has an agreement to sub-lease 45 per cent. of a larger 24.8 acre plot which was originally leased to Sarv Mangal Realtech Pvt Limited (“Sarv Mangal”) from NOIDA on a 90 year lease. Development of an SEZ has been formally approved by the Indian Government’s Board of Approval. The SPV has also executed a co-development agreement with Sarv Mangal, providing equivalent development rights and benefits.
Alpha Tiger has committed INR 1147 million (£14.7 million) to acquire the 50 per cent. equity interest in the SPV which has an agreement to sub-lease the land and will undertake the development for an aggregate construction cost of c. INR 2100 million (£26.9 million).
Based on the above transactions representing 93 per cent of net proceeds at flotation, the Company is close to conditional full commitment and has an exciting portfolio of business park-led projects in India’s major cities.
Brad Bauman
For and on behalf of the Investment Manager
25 March 2008
Directors
David Jeffreys (aged 48)
David Jeffreys qualified as a Chartered Accountant with Deloitte Haskins and Sells. He was Managing Director of Abacus Fund Managers (Guernsey) Limited between 1993 and 2004. Currently he carries out a number of consultancy assignments as well as being a director of a number of investment funds.
Phillip Rose (aged 48)
Phillip Rose has 25 years experience in the real estate, funds management and banking industries in Europe, the USA and Australasia. He has been the Head of Real Estate for ABN AMRO Bank, Chief Operating Officer of European shopping centre investor and developer TrizecHahn Europe, Managing Director of Lend Lease Global Investment and Executive Manager of listed fund General Property Trust.
Phillip is currently CEO of Alpha Real Capital LLP, a non executive director of Great Portland Estates Plc and a member of the Management Committee of the Hermes Property Unit Trust.
Serena Tremlett (aged 43)
Serena Tremlett is Company Secretary of Assura Group Limited, a company listed on the London Stock Exchange investing primarily in healthcare property, pharmacy and related medical businesses. She was previously the Head of Guernsey Property Funds at Mourant Guernsey Limited where she sat on the board of a number of property and other investment funds.
Jeff Chowdhry (aged 47)
Jeff Chowdhry is currently Head of Emerging Market Equities at F&C Asset Management plc, with overall responsibility for investments in global emerging markets. Previously, from 1997 to 2005, he was a director of Sun F&C Asset Management (India) Limited and also (until 1999) managed the Indian Investment Company SICAV, an open ended investment fund registered in Luxembourg. In 1994 he managed the India Fund Inc, a closed ended investment fund listed in New York that seeks long-term capital appreciation through investing primarily in Indian equities.
Roddy Sage (aged 55)
Roddy Sage is currently chief Executive Officer of the AFP group of companies, providing corporate and taxation advisory services in Asia. Prior to that he spent 20 years with KPMG Hong Kong, 10 years of which were as Senior Tax Partner for Hong Kong and China. He has held Chairmanships within KPMG and outside as Chairman of the Hong Kong General Chamber of Commerce’s Taxation Committee and is a non-executive director of Tai Ping Carpets International.
Directors’ report
The Directors present their report and financial statements of the Company and the Group for the period from its incorporation on 15 May 2006 to 31 December 2007.
Status
The Company was founded on 15 May 2006. Its shares are traded on the Alternative Investment Market, a market operated by the London Stock Exchange.
The company is a closed-ended Guernsey registered investment company.
Principal activities
During the period the Company carried on business as a property investment and development company, investing in commercial property in India.
Business review
A review of the business during the period is contained in the Chairman’s Statement.
Results and dividend
The results for the period are set out in the financial statements. In accordance with the dividend policy set out in the Company’s Admission document, the Board does not propose to pay a dividend for the period.
Directors
The directors, all of whom are non-executive and have served to the date of this report, are detailed below:
|
|
Appointed |
|
David Jeffreys (Chairman) |
15 May 2006 |
|
Phillip Rose |
15 May 2006 |
|
Serena Tremlett |
15 May 2006 |
|
Jeff Chowdhry |
15 May 2006 |
|
Roddy Sage |
15 May 2006 |
At each annual general meeting of the Company, one third by number of the directors shall retire from office in accordance with the Articles of Association. The inaugural Annual General Meeting is scheduled for 23 May 2008.
A retiring director shall be eligible for reappointment.
No director shall be required to vacate his office at any time by reason of the fact that he has attained any specific age.
The biographies of the Directors are above.
The Board considers that there is a balance of skills and experience within the Board and that each of the Directors contributes effectively.
Directors’ interests
The following Directors had interests in the shares of the Company at 31 December 2007:
|
|
Number of ordinary shares |
|
David Jeffreys |
10,000 |
|
Phillip Rose |
200,000 |
|
Serena Tremlett |
- |
|
Jeff Chowdhry |
20,000 |
|
Roddy Sage |
- |
There have been no changes in the Directors’ interests since the period end.
Directors’ remuneration
During the period the directors received the following emoluments in the form of fees from Group companies:
|
|
£ |
|
David Jeffreys |
30,904 |
|
Phillip Rose |
20,603 |
|
Serena Tremlett |
20,603 |
|
Jeff Chowdhry |
20,603 |
|
Roddy Sage |
20,603 |
|
Total |
113,316 |
The Company’s Articles of Association limit the aggregate fees payable to the Directors at £200,000 per annum.
Directors’ and officers’ liability insurance cover is in place in respect of the Directors.
There are no service contracts in existence between the Company and Directors, however each of the Directors was appointed by a letter of appointment which sets out the main terms of their appointment.
Substantial shareholding
Shareholders with holdings of more than 3 per cent of the issued ordinary shares of the Company as at 13 March 2008 were as follows:
|
Name of investor |
No. of ordinary shares |
% held |
|
Vidacos Nominees Limited |
14,799,597 |
19.7 |
|
Chase Nominees Limited |
11,400,000 |
15.2 |
|
Citigroup Global Markets U.K. Equity Limited |
10,586,526 |
14.1 |
|
Deutsche Bank Aktiengesellschaft London |
5,771,900 |
7.7 |
|
Wedd Jefferson (Nominees) Limited |
5,100,000 |
6.8 |
|
Nortrust Nominees Limited |
4,762,600 |
6.4 |
|
HSBC Global Custody Nominees (UK) Limited |
4,563,400 |
6.1 |
|
IPGL Fund Services Ltd |
3,000,000 |
4.0 |
|
Goldman Sachs Securities (Nominees) Limited |
2,600,000 |
3.5 |
Management
The Investment Manager provides investment advisory services to the Company and property advisory, property management and monitoring services to those members of the Group which acquire properties, in each case in accordance with the investment objective and investment policy and restrictions of the Group.
Directors’ responsibility statement
Company law requires the directors to prepare Financial Statements for each financial period, which give a true and fair view of the state of affairs of the Company and of the Group at the end of the period and of the profit or loss of the Company and the Group for that period.
In preparing those Financial Statements, the directors are required to:
(1) select suitable accounting policies and then apply them consistently;
(2) make judgements and estimates that are reasonable and prudent;
(3) state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the Financial Statements;
(4) prepare the Financial Statements on the going concern basis unless it is appropriate to assume that the Group and Company will not continue in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and of the Group and to enable them to ensure that the financial statements comply with The Companies (Guernsey) Law, 1994. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors confirm that they have complied with the above requirements in preparing the Financial Statements.
Corporate Governance
A statement of Corporate Governance is below.
Going Concern
After making enquiries, and bearing in mind the nature of the Company’s business and assets, the Directors consider that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the Financial Statements.
Annual General Meeting
The inaugural AGM of the company will be held in Guernsey on 23 May 2008.
Auditors
BDO Novus Limited have expressed their willingness to continue in office as auditors and a resolution to reappoint them will be proposed at the forthcoming Annual General Meeting.
By order of the Board,
David Jeffreys Serena
Tremlett
Director Director
25 March 2008
Corporate governance
Guernsey does not have its own corporate governance regime and, as a Guernsey registered company, the Company is not required to comply with the Combined Code on Corporate Governance, issued by the Financial Reporting Council. However it is the Company’s policy to comply with best practice on good corporate governance including taking measures to ensure the Company complies with the Combined Code to the extent appropriate. The Board’s arrangements in respect of corporate governance are explained in the paragraphs that follow:
Role of the Board
The Board has determined that its role is to consider and determine the following principal matters which it considers are of strategic importance to the Company:
1) Review the overall objectives for the Company and set the Company’s strategy for fulfilling those objectives within an appropriate risk framework;
2) Consider any shifts in strategy that it considers may be appropriate in light of market conditions;
3) Review the capital structure of the Company including consideration of any appropriate use of gearing both for the Company and in any joint ventures in which the Company may invest from time to time;
4) Appoint the Investment Manager, Administrator and other appropriately skilled service providers and monitor their effectiveness through regular reports and meetings;
5) Review key elements of the Company’s performance including Net Asset Value and payment of dividends.
Board Decisions
At board meetings, the Board ensures that all the strategic matters are considered and resolved by the Board. Certain issues associated with implementing the Company’s strategy are delegated either to the Investment Manager or the Administrator. Such delegation is over minor incidental matters and the Board continually monitors the services provided by these independent agents. The Board considers there are implementation matters that are significant enough to be of strategic importance and should be reserved solely for the Board (e.g. all acquisitions, all disposals, significant capital expenditure, leasing and decisions affecting the Company’s financial gearing).
Board Meetings
The Board meets at least quarterly and as required from time to time to consider specific issues reserved for decision by the Board including all potential acquisitions.
At the Board’s quarterly meetings it considers papers circulated in advance including reports provided by the Investment Manager and the Administrator. The Investment Manager’s report comments on:
The Administrator provides the compliance report.
These reports enable the Board to assess the success with which the Group’s property strategy and other associated matters are being implemented and also consider any relevant risks and to consider how they should be properly managed.
The Board also considers reports provided from time to time by its various service providers reviewing their internal controls.
In between its regular quarterly meetings, the Board has also met on a number of occasions during the period to approve all transactions and for other matters.
Committees of the Board
The Board has operated an Audit Committee throughout the period under review and on 28 November 2007 constituted a Remuneration Committee and a Nomination Committee.
The Audit Committee
The Audit Committee is chaired by David Jeffreys and includes Roddy Sage and Serena Tremlett. The Audit Committee meets not less than twice a year and if required meetings can also be attended by the Investment Manager, the Administrator and the Independent Auditors.
The Audit Committee is responsible for reviewing the half-year and annual Financial Statements before their submission to the Board. In addition, the Audit Committee is specifically charged under its terms of reference to advise the Board on the terms and scope of the appointment of the auditors (including remuneration), the independence and objectivity of the auditors, and reviewing with the auditors the results and effectiveness of the audit.
Members of the Audit Committee may also, from time to time meet with the Company’s valuer to discuss the scope and conclusions of their work.
The Remuneration Committee
The Remuneration Committee, chaired by Serena Tremlett includes Jeff Chowdhry and David Jeffreys and is required to consider the terms and remuneration of the Company’s directors and senior employees.
The Nomination Committee
The Nomination Committee, chaired by Roddy Sage includes Phillip Rose and Serena Tremlett and is convened for the purpose of considering the appointment of additional directors as and when considered appropriate.
The table below shows the attendance at Board and other Committee meetings during the period to 31 December 2007:
|
Director |
Board |
Audit committee |
Remuneration committee |
Nomination committee |
|
David Jeffreys |
20 |
2 |
1 |
- |
|
Phillip Rose |
8 |
- |
- |
1 |
|
Serena Tremlett |
20 |
2 |
1 |
1 |
|
Jeff Chowdhry |
7 |
- |
1 |
- |
|
Roddy Sage |
5 |
2 |
- |
1 |
|
No. of meetings during the year |
20 |
2 |
1 |
1 |
Investment management agreement
The Company has entered into an agreement with the Investment Manager. This sets out the Investment Manager’s key responsibilities which include proposing a property investment strategy to the Board, identifying property investments to recommend for acquisition and arranging appropriate lending facilities to facilitate the transaction. The Investment Manager is also responsible to the Board for all issues relating to property asset management.
Shareholder relations
Shareholder communications are a high priority of the Board. Members of the Investment Manager’s Investment Committee make themselves available at all reasonable times to meet with key shareholders and sector analysts. Feedback from these sessions is provided by the Investment Manager at the quarterly Board meetings.
In addition, the Board is also kept fully appraised of all market commentary on the Company by the Investment Manager and other professional advisors including its brokers.
Through this process the Board seeks to monitor investor relations and to ensure that the Company’s communication programme is effective.
The Chairman and the Investment Manager will be available at the Annual General Meeting to answer any questions that shareholders attending may wish to raise.
Independent auditors’ report
To the members of Alpha Tiger Property Trust Limited
We have audited the Group and parent Company financial statements (“the Financial Statements”) of Alpha Tiger Property Trust Limited for the period ended 31 December 2007, which comprise the Consolidated and Company Income Statement, Consolidated and Company Balance Sheet, Consolidated and Company Cash Flow Statement, Consolidated and Company Statement of Changes in Equity and the related notes 1 to 18. These Financial Statements have been prepared in accordance with the accounting policies as set out below.
This report is made solely to the Company’s members, as a body, in accordance with Section 64 of the Companies (Guernsey) Law, 1994. Our audit work is undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of the directors and auditors
As described in the Directors’ Responsibility Statement within the Directors’ Report, the Company’s directors are responsible for the preparation of the Financial Statements in accordance with applicable law and International Financial Reporting Standards (“IFRS”).
Our responsibility is to audit the Financial Statements in accordance with the relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the Financial Statements give a true and fair view and are properly prepared in accordance with the Companies (Guernsey) Law, 1994. We also report to you if, in our opinion, the Directors’ Report is not consistent with the Financial Statements, if the Company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if the information specified by law is not disclosed.
We read the other information included in the Annual Report and consider whether it is consistent with the audited Financial Statements. This other information comprises only the Company Summary and Objective, Financial Highlights, Chairman’s Statement, Property Investment Review, Directors, Directors’ Report and Corporate Governance. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the Financial Statements. Our responsibilities do not extend to any other information.
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the Financial Statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the Financial Statements, and of whether the accounting policies are appropriate to the Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the Financial Statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the Financial Statements.
Opinion
In our opinion:
BDO Novus Limited
Chartered Accountants
Elizabeth House, St Peter Port, Guernsey
25 March 2008
Consolidated income statement
|
|
For the period from 15 May 2006 to 31 December 2007 |
|||
|
|
|
Revenue £’000 |
Capital £’000 |
Total £’000 |
|
|
|
|
|
|
|
Income |
|
|
|
|
|
Revenue |
|
- |
- |
- |
|
Total income |
|
- |
- |
- |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Administration costs |
4 |
(2,056) |
- |
(2,056) |
|
Total expenses |
|
(2,056) |
- |
(2,056) |
|
|
|
|
|
|
|
Operating loss |
|
(2,056) |
- |
(2,056) |
|
|
|
|
|
|
|
Finance income |
3 |
4,323 |
- |
4,323 |
|
|
|
|
|
|
|
Profit before taxation |
|
2,267 |
- |
2,267 |
|
|
|
|
|
|
|
Taxation |
5 |
- |
- |
- |
|
|
|
|
|
|
|
Profit for the period |
|
2,267 |
- |
2,267 |
|
|
|
|
|
|
|
Earnings per share (basic and diluted) |
7 |
3.0p |
- |
3.0p |
The total column of this statement represents the Group’s income statement, prepared in accordance with IFRS. The revenue and capital columns are supplied as supplementary information permitted under IFRS. All items in the above statement derive from continuing operations. There are no minority interests.
The accompanying notes form an integral part of this statement.
Consolidated balance sheet
|
As at 31 December 2007 |
Notes |
£’000 |
|
|
|
|
|
Current assets |
|
|
|
Trade and other receivables |
11 |
791 |
|
Cash and cash equivalents |
|
74,104 |
|
|
|
|
|
Total assets |
|
74,895 |
|
|
|
|
|
Current liabilities |
|
|
|
Trade and other payables |
12 |
(557) |
|
Total liabilities |