Wrap Text
Abridged unaudited consolidated results for the three months ended 30 November 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 "Group”)
ABRIDGED UNAUDITED CONSOLIDATED RESULTS FOR THE THREE MONTHS ENDED 30 NOVEMBER 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 primary listings 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 in the United Kingdom and mainland Europe. 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
During this period the Company’s business strategy has evolved to take into account changes in the prevailing political and
economic climate, especially in relation to the European Union Referendum result.
The Company’s strategy continues to retain its retail focus but it will also acquire property within mainland Europe to include non
retail assets to a maximum of 20% of the aggregate portfolio. Preference will be given to retail assets with a high level of non-
discretionary spend and logistics properties let to e-commerce and retail tenants.
The Company has since been working to execute the refined strategy and have identified a shortlist of properties that meet its
investment criteria.
This approach will enable the Company to exploit a much wider range of opportunities, reducing its overall risk profile whilst
continuing to benefit from the profits contributed by our existing centres and broadening our hard currency exposure.
During the period, the Company undertaken 15 leasing events of which three were long-term lettings at Estimated Rental Value
(“ERV”), with an average lease length of 5.3 years and rent free of 3 months.
Four core leases, totalling GBP590,500 p.a., have been renewed. These four leases are only slightly (0.9%) below valuation ERV.
As at 30 November 2016, the centres had a combined occupancy of 93.34% (August 2016: 93.52%) by ERV and 91.54%
(August 2016: 91.2%) by Gross Lettable Area (“GLA”).
Post the period end, the Company has signed an agreement to lease with Next Plc to occupy 25,000 sq ft in part of the old BHS
unit in the Burton-on-Trent Centre, which was vacated in August 2016. This has improved the combined occupancy to 94.85% by
ERV and 93.52% by GLA. Discussions are ongoing with a number of UK national retailers to let the remaining 19,500 sq ft,
which will result in a further improvement to our overall occupancy.
A number of asset management initiatives are under way within all schemes which will allow the Company to improve the quality
of space that is offered to tenants, allowing them the opportunity to upsize and improve their profitability.
The European Public Real Estate Association (“EPRA”) Net Asset Value (“NAV”) is a proportionally consolidated measure
representing the IFRS net assets excluding the mark-to-market on effective cash flow hedges and related debt adjustments, the
mark-to-market on convertible bonds as well as deferred taxation on property and derivative valuations.
EPRA NAV, based on the shares in issue throughout the period of 152,774,750, is GBP 73 pence per share, down from
GBP 75 pence per share at 31 August 2016, due to the timing effect of the dividend payment made in November 2016.
CHANGES TO THE BOARD
Richard Thomas was appointed as lead independent non-executive director on 11 January 2017.
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. As a result, no dividend has been declared for the period under review.
BASIS OF PREPARATION
These abridged unaudited consolidated results for the three months ended 30 November 2016 have been prepared in accordance
with International Financial Reporting Standards, including IAS34 – Interim Financial Reporting, the rules of the
Securities Act of Mauritius 2005 and the Listings Requirements of the JSE Limited to the extent required.
ACCOUNTING POLICIES
The accounting policies adopted are consistent with those used to prepare the audited annual financial statements for the year
ended 31 August 2016.
By order of the Board
Osiris Corporate Solutions (Mauritius) Limited
Company secretary
13 January 2017
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 of
New Frontier Properties Ltd 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
STATEMENTS OF FINANCIAL POSITION AT 30 NOVEMBER 2016
THE GROUP
Unaudited Audited
30 November 31 August
2016 2016
£000 £000
ASSETS
Non-current assets
Property, plant and equipment 19 19
Investment property 272,588 272,588
272,607 272,607
Current assets
Trade and other receivables 3,928 5,846
Cash and cash equivalents 2,298 3,639
6,226 9,485
Total assets 278,833 282,092
EQUITY
Capital and reserves (attributable to owners of the parent)
Share capital 124,412 124,412
Hedging reserve (3,448) (5,614)
Accumulated losses (13,463) (10,051)
Total equity 107,501 108,747
LIABILITIES
Non-current liabilities
Borrowings 163,066 162,935
Derivative financial instrument 3,448 5,614
166,514 168,549
Current liabilities
Trade and other payables 4,741 4,719
Income tax payable 77 77
4,818 4,796
Total liabilities 171,332 173,345
Total equity and liabilities 278,833 282,092
Total number of shares in issue 152,774,750 152,774,750
Net asset value per share (GBP) 0.70 0.71
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
THE GROUP
Unaudited Unaudited Audited
Period from Period from
01 September 01 September For the year
2016 to 30 2015 to 30 ended 31
November November August
2016 2015 2016
£000 £000 £000
Rental income 5,374 4,341 20,663
Expenses
Property operating expenses (982) (666) (2,822)
Administrative expenses (271) (256) (1,678)
Acquisition related costs - (2,441) (2,563)
Other income - - 43
Fair value loss on investment property - - (8,745)
4,121 978 4,898
Net finance costs (1,423) (1,258) (5,707)
Profit /(loss) before tax 2,698 (280) (809)
Taxation - (233) 52
Profit /(loss) for the period/year 2,698 (513) (757)
Other comprehensive income for the period /year
Items that may be reclassified subsequently to profit or
loss:
Fair value gain/(loss) on financial derivatives 2,166 (102) (5,614)
Other comprehensive income for the period/year 2,166 (102) (5,614)
Total comprehensive income for the period/year 4,864 (615) (6,371)
Basic earnings/(loss) per share (GBP) 0.018 (0.004) (0.005)
Headline earnings per share (GBP) 0.018 (0.004) 0.053
STATEMENTS OF CHANGES IN EQUITY FOR THE QUARTER ENDED 30 NOVEMBER 2016
(Accumulated
losses)
Share Hedging /Retained Total
capital reserve earnings
£000 £000 £000 £000
THE GROUP
Balance at 01 September 2016 124,412 (5,614) (10,051) 108,747
Profit for the period - - 2,698 2,698
Other comprehensive income for the period - 2,166 - 2,166
Dividends - - (6,110) (6,110)
Balance at 30 November 2016 124,412 (3,448) (13,463) 107,501
Balance at 01 September 2015 80,511 - 834 81,345
Issue of shares 44,693 - - 44,693
Issue costs (792) - - (792)
Loss for the period - - (513) (513)
Other comprehensive income for the period - (102) - (102)
Dividends - - (4,628) (4,628)
Balance at 30 November 2015 124,412 (102) (4,307) 120,003
Balance at 01 September 2015 80,511 - 834 81,345
Issue of shares 44,693 - - 44,693
Issue costs (792) - - (792)
Loss for the year - - (757) (757)
Other comprehensive income for the year - (5,614) - (5,614)
Dividends - - (10,128) (10,128)
Balance at 31 August 2016 124,412 (5,614) (10,051) 108,747
STATEMENTS OF CASH FLOWS FOR QUARTER ENDED 30 NOVEMBER 2016
THE GROUP
Unaudited Audited
Period from 01
September 2016 to For the year ended
30 November 2016 31 August 2016
£000 £000
Cash flows from operating activities
Cash generated from operations 4,908 11,617
Tax paid - (1,119)
Interest paid (1,360) (5,723)
Net cash generated from operating activities 3,548 4,775
Cash flows from investing activities
Acquisitions of subsidiaries, net of cash acquired - (11,553)
Addition to investment property - (358)
Addition to property, plant and equipment - (20)
Interest received - 1
Net cash used in investing activities - (11,930)
Cash flows from financing activities
Repayments on long-term borrowings - (27,827)
Proceeds from borrowings - 500
Payment of borrowing costs - (637)
Proceeds from issue of share capital - 44,693
Payments for share issuance costs - (792)
Dividend payment (4,889) (10,128)
Net cash (used in)/ generated from financing activities (4,889) 5,809
Net decrease in cash and cash equivalents for the
(1,341) (1,346)
period/year
Cash and cash equivalents at the beginning of the period/year 3,639 4,985
At 30 November 2016/31 August 2016 2,298 3,639
For practical reasons, cash flow figures for the period ended 30 November 2015 have not been disclosed.
RECONCILIATION OF PROFIT/(LOSS) FOR QUARTER ENDED 30 NOVEMBER 2016 TO HEADLINE
EARNINGS
THE GROUP
Basic and headline earnings per share
For the For the
quarter quarter For the year
ended ended ended
30 30
November November 31 August
2016 2015 2016
£000 £000 £000
Basic earnings/(loss) from continuing
operations attributable to equity holders of
the Company 2,698 (513) (757)
Fair value movement on investment property - - 8,745
Headline earnings/(loss) from continuing
operations attributable to equity holders of
the Company 2,698 (513) 7,988
Number of shares/weighted average number
of shares 152,774,750 141,077,309 150,527,365
Basic earnings/(loss) per share (GBP) 0.018 (0.004) (0.005)
Headline earnings/(loss) per share (GBP) 0.018 (0.004) 0.053
Date: 13/01/2017 02:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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