CARDIFF PROPERTY PLC THE CARDIFF PROPERTY PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
www.cardiff-property.com
Stock code: CDFF
The group, including Campmoss, specialises in property investment and development in the Thames Valley. The total portfolio including the jointly controlled Campmoss investment and development portfolio, valued in excess of £34m, is primarily located to the west of London, close to Heathrow Airport and in Surrey and Berkshire.
OUR MISSION
The group seeks to enhance shareholder value by developing its property portfolio and through stragetic acquisitions.
CONTENTS
01 | Financial Highlights | 25 | Consolidated Statement of Comprehensive Income |
02 | Locations | 26 | Consolidated Balance Sheet |
03 | Chairman's Statement | 27 | Consolidated Cash Flow Statement |
05 | Strategic Report | 28 | Consolidated Statement of Changes in Equity |
10 | Directors and Advisers | 29 | Notes to the Financial Statements |
11 | Report of the Directors | 48 | Company Balance Sheet |
13 | Corporate Governance | 49 | Company Statement of Changes in Equity |
16 | Remuneration Report | 50 | Notes to the Financial Statements |
20 | Statement of Directors' Responsibilities | 54 | Notice of Annual General Meeting |
21 | Independent Auditor's Report | 58 | Financial Calendar |
25 | Consolidated Income Statement |
THE CARDIFF PROPERTY plc | 01 |
Annual Report and Financial Statements for the year ended 30 September 2021 | |
Stock code: CDFF | |
"The Thames Valley property market has seen an initial recovery from the difficulties experienced over the past two years although a return to pre-pandemic levels is likely to take some time.
The property market will continue to be sensitive to political and economic changes as well as any further measures required by the pandemic, however during the year under review an increased level of confidence has certainly returned to most sectors of the property market.
The Thames Valley office letting market has shown some signs of recovery and encouragingly we have noticed a large number of our tenants returning to their offices. The level of office enquiries has also increased over recent months.
Office rental levels which were very challenging over recent periods have improved with 5-year lease terms and rental linked to the retail price index being acceptable to most Landlords and Tenants.
- Richard Wollenberg Chairman
FINANCIAL HIGHLIGHTS
2020 | |||
2021 | Restated | ||
Net Assets | £'000 | 28,442 | 29,080 |
Net Assets Per Share | £ | 25.49 | 24.35 |
Profit Before Tax | £'000 | 1,259 | 1,940 |
Earnings Per Share - Basic and diluted | pence | 91.91 | 146.7 |
Dividend Per Share | pence | 18.5 | 17.6 |
Gearing | % | Nil | Nil |
www.cardiff-property.com
02
LOCATIONS
The Group specialises in property investment and development in the Thames Valley.
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BRACKNELL
1-10 Market Street*
12 retail units on ground and first floors totalling 7,900 sq. ft. Let primarily to local businesses and national franchisees on medium term leases producing £188,000 p.a.
Alston House, 25 Market Street*
Development completed in 2019 achieving 10 retail units on ground and first floor totalling 12,350 sq. ft. and 12 two- bedroom apartments on the second and third floors. Seven of the retail units are let on medium term leases producing £234,000 p.a. All apartments are let on Assured Shorthold Tenancy Agreements.
Gowring House Apartments*
Conversion of 30 one and two-bedroom apartments over the five upper floors with lift access. 25 apartments sold, five let on Assured Shorthold Tenancy Agreements. Gowring House is conveniently located for Bracknell railway station with direct connections to London Waterloo and Reading and within walking distance of the new town centre, including the Lexicon and Peel Shopping Centre.
Gowring House Commercial*
3 ground floor retail units let on medium term leases producing £92,000 p.a. During the year a number of lease renewals were completed achieving increases up to 10% of annual rental.
Westview*
Adjacent to Gowring House, eight retail units on ground and first floors totalling 10,500 sq. ft. fully let on medium term leases producing £226,000 p.a.
BURNHAM
The Priory*
26,000 sq. ft. headquarters office building. 9,000 sq. ft. used as a Business Centre and three floors of adjacent offices.
A number of units and one floor of offices at the Business Centre are currently available. Estimated total gross income of £460,000 p.a. which includes existing gross income of £291,000 p.a.
CARDIFF
Cowbridge Road
14,500 sq. ft. let to The Royal Mail as a mail sorting centre on short term lease at £40,000 p.a.
EGHAM
Heritage Court
Four retail units let on medium term leases producing £80,000 p.a.
Station Road
Company Head Office totalling 1,450 sq. ft.
The White House
Five ground floor retail units with one floor of offices above totalling 12,000 sq. ft. Tenants include Egham Essentials, Woking Hospice, Shaw Trust and Riven Associates, producing £195,000 p.a.
GUILDFORD
Tangley Place, Worplesdon*
2.5 acres, land in green belt.
MAIDENHEAD
Highway House*
Building demolished. Planning approval for a new 48,000 sq. ft. gross B1 office scheme being updated. Agents appointed to seek a pre-letting. Land let on short term lease for car parking at a rental of £45,000 p.a.
Maidenhead Enterprise Centre
Six business units totalling 14,000 sq. ft. let to local businesses on medium term leases producing £146,000 p.a.
SLOUGH
Datchet Meadows*
Development of 37 apartments. All sold on long leases producing ground rents of £22,000 p.a.
READING
Tilehurst
At Tilehurst, Reading, our planning application is being discussed with the Local Authority relating to an affordable housing scheme.
WINDSOR
Windsor Business Centre
Four business units totalling 9,500 sq. ft. let on short term leases producing rental of £187,000 p.a. Planning approval for new 20,000 sq. ft. office scheme.
WOKING
Britannia Wharf*
A new private residential scheme totalling 52 apartments. Since the year end to the date of this report 31 apartment sales have completed with a further 18 apartments reserved.
*Owned by Campmoss Group our Joint Venture partner
THE CARDIFF PROPERTY plc | 03 |
Annual Report and Financial Statements for the year ended 30 September 2021 | |
Stock code: CDFF |
CHAIRMAN'S STATEMENT
Dear Shareholder,
The Thames Valley property market has seen an initial recovery from the difficulties experienced over the past two years although a return to pre-pandemic levels is likely to take some time.
The property market will continue to be sensitive to political and economic changes as well as any further measures required by the pandemic, however during the year under review an increased level of confidence has certainly returned to most sectors of the property market.
The Thames Valley office letting market has shown some signs of recovery and encouragingly we have noticed a large number of our tenants returning to their offices. The level of office enquiries has also increased over recent months.
Office rental levels which were very challenging over recent periods have improved with 5-year lease terms and rental linked to the retail price index being acceptable to most Landlords and Tenants.
As indicated in our review of our business, demand for business units has been strong in the last quarter and rental increases of up to 10% have been achieved at our properties at Windsor and Maidenhead. Our retail interests which include Campmoss Property Company Limited ("Campmoss"), primarily in Bracknell and Egham, have proved resilient in a difficult market as the portfolio includes a high number of shops many of which were able to remain open during the period of lock down and continued to trade successfully.
As in the previous financial year the Group continued to liaise closely with all tenants and where necessary assisting with cash flow by agreeing rental payments of monthly in arrears rather than the usual quarterly in advance.
Excluding development properties by value, 43.7% of the Group's portfolio relates to the retail sector, 9.8% to small business units, 14.4% to residential and 32.1% offices. Rent collection for the Group over the last two quarters has been 89% of that invoiced.
The residential market remained reasonably active with asking prices consistent with last year. The residential development at Woking, Surrey, being undertaken by Campmoss in partnership with a well-known local developer, completed after the year end with construction costs in line with budget. I am pleased to report that at the time of writing 31 sales have been completed with a further 18 apartments reserved.
The residential letting market remained firm with all the Group's apartments let on Assured Shorthold Tenancy Agreements.
The Thames Valley commercial property investment market has been reasonably active with institutional and private investors attracted to the high returns available. The Thames Valley continues to be popular for investors with Maidenhead,
Woking, Bracknell and Windsor being particularly sought after. The number of investments available in all sectors has markedly reduced as existing investors are finding it difficult to source opportunities that retain the level of income currently being received.
FINANCIAL
For the year to 30 September 2021, the Group profit before tax was £1.26m (2020 restated: £1.94m). This figure includes an investment property value increase of £0.53m (2020: £0.15m decrease) for the Group and a profit of £0.07m (2020: £1.36m) in respect of our post tax profit and pre- dividend share of Campmoss Property Company Limited and Campmoss Developments Limited ("Campmoss Group"), our 47.62% owned joint venture. During the year, the Company received a dividend of £0.50m (2020: £0.64m) from its investment in Campmoss.
Revenue for the year which represented gross rental income, excluding Campmoss, totalled £0.60m (2020: £0.65m).
The profit after tax attributable to shareholders for the financial year was £1.08m (2020 restated: £1.79m) and the earnings per share was 91.91p (2020 restated: 146.68p).
At the year-end, the Company's commercial portfolio was valued by Kempton Carr Croft at a total of £5.92m (2020: £5.81m) this valuation excludes the Company's freehold office property which was also valued by Kempton Carr Croft and is included in the balance sheet at valuation classified as property, plant and equipment.
Property when completed and retained for re-sale is held as stock at the lower of cost or net realisable value. At the year- end this related to commercial property owned by First Choice Plc at The Windsor Business Centre.
The Group's total property portfolio, including the jointly controlled Campmoss Group's investment and development portfolio, was valued at £34.8m (2020: £35.7m). The value has marginally decreased over the year primarily due to the disposal of Clivemont House offset by additions to Britannia Wharf. Residential property at Alston House and Gowring House Bracknell and the residential development at Britannia Wharf, Woking are held as stock in Campmoss.
The Company's share of the net assets of Campmoss Group was £15.9m (2020: £16.3m).
The Group's total net assets as at the year-end were £28.44m (2020 restated: £29.08m) equivalent to £25.49 per share (2020 restated: £24.35) an increase of 4.7% over the year (2020:
6.6%). The Group, including Campmoss Group, has adequate financial facilities and resources to complete works in progress and the current development programme. Cash balances are held on short term deposit. At the year-end, the Company had nil gearing (2020: nil). During the year the Company purchased and cancelled 78,525 (2020: 45,694) ordinary shares at a total cost of £1,492,000. (2020: £773,000).
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The Cardiff Property plc published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 09:10:05 UTC.
