Wrap Text
Abridged Unaudited Consolidated Results for the Nine Months Ended 31 May 2016
New Frontier Properties Ltd
(Incorporated in the Republic of Mauritius on 5 June 2014)
(Registration number 123368C1/GBL)
SEM share code: NFP.N000
JSE share code: NFP
ISIN: MU0453N00004
(“New Frontier” or “the Company” or the “Group”)
ABRIDGED UNAUDITED CONSOLIDATED RESULTS FOR THE NINE MONTHS ENDED 31 MAY 2016
The Company has been established in Mauritius as a public company limited by shares holding a Category 1 Global Business
Licence. The Company has a dual primary listing on the Stock Exchange of Mauritius Ltd ("SEM") and the Alternative
Exchange of the Johannesburg Stock Exchange ("AltX"). The primary objective of the Company is to acquire good quality
income generating retail property assets situated in the United Kingdom (“UK”). The Company’s property investments are held
by a number of wholly owned subsidiaries.
REPORTING CURRENCY
The Company’s results are reported in Pounds Sterling.
BUSINESS REVIEW
Consistent with the Group’s strategy, the Company is continuing to pursue dominant retail assets in towns in the UK. However,
following the surprise decision of the UK to vote to leave the European Union (EU) new acquisitions have been delayed. The
UK now faces a period of uncertainty before exit (if indeed it actually occurs) whilst negotiations between the UK and the other
EU member countries begin. The Board of Directors of New Frontier (“the Board”) has decided to proceed with caution until the
uncertainty in the UK economy has reduced and there is more clarity on the state of the property investment market.
The Company is pleased to report that the Group produced a recurring profit of £8.541 million for the period. The Group’s
comprehensive income as per IFRS for the period was £2.106 million. This incorporates the writing off of the acquisition fees
associated with the acquisition of The Houndshill Shopping Centre in Blackpool and the Mark to Market (MTM) value of the
financial derivatives taken out to fix our interest cost, which currently stands at a weighted average of 3.29% pa.
The Group is focussed on delivering a number of asset management initiatives and when appropriate will consider new property
acquisitions over the next 12 months.
During the period, the Group announced the conversion of New Frontier’s listing status on the AltX from a secondary listing to a
primary listing.
Our dominant shopping centres, which generally cater for the local communities, continue to trade well, recording an uplift in
footfall of 2.05% year on year compared to the UK average of minus 3.20%.
Our asset management team continues to actively manage our assets to enhance value. This has resulted in increased letting
activity and a reduction in our void rate as set out below.
Void Rate
The Group’s void rate based on ERV has improved to 3.96%, down from 5.30% as at the end of February 2016 following the
letting of a number of units.
Letting Activity and Lease Renewals
During the period the Group completed 15 leasing events; five of which were long-term core lettings at an average rent increase of
18.96 % above valuation ERV. Two tenants with a lease expiry or break option during the period vacated.
The Group continues to have a healthy pipeline of new lettings with six units under offer for both short and long-term leases.
Net Asset Value (NAV)
The NAV per share at 31 May 2016, based on 152,774,750 shares in issue and net assets of £117.224 million was GBP 0.77 per
share.
PROSPECTS
The UK economy is forecast to have continuing GDP growth of 1.5% for the remainder of this year, 1.5% in 2017 rising to 2.5%
in 2018 (Capital Economics). Furthermore, five-year money rates have fallen below 0.5% and the Rand is now trading in the
region of ZAR 19.00 to 1.00 GBP some 25% higher than earlier this year. The unexpected decision of the UK to narrowly vote to
exit the EU has caused uncertainty within the UK economy and has resulted in a change of Prime Minister. Despite these events,
the UK economy remains the 5th largest economy in the world and the 2nd largest in the EU measured by GDP over the past twelve
months. Against this backdrop the Board is closely monitoring the UK economy, its impact on the UK property market and
potential opportunities which are likely to arise particularly in light of the current strength of the Rand.
DIVIDEND
The Company’s dividend policy is to consider declarations of dividends on a six-monthly basis in line with its year-end and half
year which are August and February respectively.
The Company is proposing to offer shareholders the option to receive either a cash dividend or elect to receive a scrip dividend by
way of an issue of new New Frontier shares, of the same class as the existing shares. The Company is working with our sponsors
and the JSE to provide this option for the August year-end dividend.
BASIS OF PREPARATION
These abridged unaudited consolidated results for the nine months ended 31 May 2016 and for the three months from 29 February
2016 to 31 May 2016 have been prepared in accordance with International Financial Reporting Standards, including IAS34 –
Interim Financial Reporting, the rules of the SEM and the Listings Requirements of the JSE Limited.
ACCOUNTING POLICIES
The accounting policies adopted are consistent with those published in the audited annual financial statements for the year ended
31 August 2015.
By order of the Board
Osiris Corporate Solutions (Mauritius) Limited
Company secretary
15 July 2016
NOTES
Copies of this report are available to the public at the registered office of the Company, B45 Twenty-Foot Road, 3rd Floor La
Croisette, Grand Baie, Mauritius.
Copies of the statement of direct or indirect interest of the Senior Officers of the Company pursuant to rule 8(2)(m) of the
Securities (Disclosure of Obligations of Reporting Issuers) Rules 2007 are available to the public upon request to the Company
Secretary at the Registered Office of the Company at B45 Twenty-Foot Road, 3rd Floor La Croisette, Grand Baie, Mauritius.
This communiqué is issued pursuant to Listing Rules 12.20 and 12.21 and Section 88 of the Securities Act 2005. The Board
accepts full responsibility for the accuracy of the information in this communiqué.
For further information please contact:
JSE sponsor
Java Capital +27 11 722 3050
Company secretary
Osiris Corporate Solutions (Mauritius) Limited +230 650 4030
NEW FRONTIER PROPERTIES LTD
STATEMENTS OF FINANCIAL POSITION AT 31 MAY 2016
THE GROUP
31-May 31 August
2016 2015
£000 £000
ASSETS
Non-current assets
Office equipment 20 -
Investment property 280,976 180,225
Derivative financial instrument - 175
280,996 180,400
Current assets
Trade and other receivables 4,816 2,655
Cash and cash equivalents 2,765 4,985
7,581 7,640
Total assets 288,577 188,040
EQUITY
Capital and reserves (attributable to owners of the parent)
Share capital 124,412 80,511
(Revenue deficit)/Retained earnings (7,188) 834
Owner's interest 117,224 81,345
Non-controlling interests - -
Total equity 117,224 81,345
LIABILITIES
Non-current liabilities
Borrowings 162,838 102,974
Deferred tax 26 26
162,864 103,000
Current liabilities
Trade and other payables 8,256 3,310
Income tax payable 233 385
8,489 3,695
Total liabilities 171,353 106,695
Total equity and liabilities 288,577 188,040
NEW FRONTIER PROPERTIES LTD
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR NINE MONTHS ENDED 31 MAY 2016
THE GROUP
Audited
For the quarter For the 9 months Period from 01
ended 31 May ended 31 May January 2015 to 31
2016 2016 August 2015
£000 £000 £000
Rental income 5,143 15,202 5,333
Expenses
Property operating expenses (720) (2,144) (811)
Administrative expenses (461) (1,268) (1,088)
Acquisition related costs - (2,562) (1,719)
Other income - - 41
Fair value gain on investment
property - - 1,225
Loss on disposal of subsidiary
company - - (67)
3,962 9,228 2,914
Net finance costs (1,221) (3,912) (1,306)
Profit before tax 2,741 5,316 1,608
Taxation (10) (311) (723)
Profit from continuing operations 2,731 5,005 885
Profit from discontinued operations - - 54
Profit for the period 2,731 5,005 939
Other comprehensive income for the
period
Movement in financial derivatives 1,485 (2,899) -
Exchange loss arising on
retranslation of subsidiary company - - (11)
Release of exchange difference on
disposal of subsidiary company - - 11
Other comprehensive income for
the period 1,485 (2,899) -
Total comprehensive income for the
period 4,216 2,106 939
Basic earnings per share (GBP) 0.0179 0.0334 0.0129
Headline earnings/(loss) per share
(GBP) 0.0179 0.0334 (0.0040)
NEW FRONTIER PROPERTIES LTD
STATEMENTS OF CHANGES IN EQUITY FOR NINE MONTHS
ENDED 31 MAY 2016
1,000
Retained
earning/
Non
Share (Revenue
controlling
capital deficit) Total interests Total
£000 £000 £000 £000 £000
THE GROUP
Balance at 01 September 2015 80,511 834 81,345 - 81,345
Issue of shares 44,693 - 44,693 - 44,693
Issue costs (792) - (792) - (792)
Profit for the period - 5,005 5,005 - 5,005
Other comprehensive income for the
- (2,899) (2,899) - (2,899)
period
Dividend payment - (10,128) (10,128) - (10,128)
Balance at 31 May 2016 124,412 (7,188) 117,224 - 117,224
Balance at 01 January 2015 616 (105) 511 31 542
Issue of shares 84,163 - 84,163 - 84,163
Issue costs (4,268) - (4,268) - (4,268)
Profit for the period - 939 939 - 939
Disposal of subsidiary company - - - (31) (31)
Balance at 31 August 2015 80,511 834 81,345 - 81,345
NEW FRONTIER PROPERTIES LTD
STATEMENTS OF CASH FLOWS FOR NINE MONTHS ENDED 31 MAY 2016
THE GROUP
31-May 31 August
2016 2015
£000 £000
Cash flows from operating activities
Cash generated from operations 8,064 1,984
Tax paid (755)
Interest paid (3,491) (1,394)
Net cash generated from operating activities 3,818 590
Cash flows from investing activities
Acquisitions of subsidiaries, net of cash acquired (45,836) (43,940)
Disposal of subsidiary net of cash and cash equivalents disposed - (7)
Purchase of office equipment (20) -
Interest received - 6
Expenses incurred in respect of disposal of subsidiary company - (89)
Net cash used in investing activities (45,856) (44,030)
Cash flows from financing activities
Payments on long-term borrowings - (134,353)
Proceeds from borrowings 6,045 102,886
Proceeds from issue of share capital 44,694 84,163
Payments for share issuance costs (792) (4,268)
Dividend payment (10,128) -
Net cash generated from financing activities 39,819 48,428
Net (decrease)/increase in cash and cash equivalents for the period (2,220) 4,988
Exchange difference - (5)
Cash and cash equivalents at the beginning of the period 4,985 2
At 31 May 2016/ 31 August 2015 2,765 4,985
NEW FRONTIER PROPERTIES LTD
RECONCILIATION OF PROFIT FOR NINE MONTHS
ENDED 31 MAY 2016 TO HEADLINE EARNINGS
THE GROUP
Basic and headline earnings per share Period from
For the 3 For the 9
months months 01 January
ended ended 2015 to
31 May 2016 31 May 2016 31 August
2016 2016 2015
£000 £000 £000
Basic earnings from continuing operations
attributable to equity holders of the Company 2,731 5,005 885
Fair value movement on investment property - - (1,225)
Loss on disposal of subsidiary - - 67
Headline earnings/(loss) from continuing operations
attributable to equity holders of the Company 2,731 5,005 (273)
Basic earnings from discontinued operations - - 54
Headline earnings from discontinued operations - - 54
Weighted average number of shares 152,774,750 149,772,769 68,481,218
Basic earnings per share (GBP) 0.0179 0.0334 0.0129
Headline earnings/(loss) per share (GBP) 0.0179 0.0334 (0.0040)
The Company does not have any dilutionary instruments in issue.
Date: 15/07/2016 09:23:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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