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Abridged unaudited financial statements for the three months ended 31 May 2017
Atlantic Leaf Properties Limited
(Incorporated in the Republic of Mauritius)
(Registration number: 119492 C1/GBL)
SEM share code: "ALPL.N0000"
JSE share code: "ALP"
ISIN: "MU0422N00009"
www.atlanticleaf.mu
("Atlantic Leaf" or "the Company")
ABRIDGED UNAUDITED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED 31 MAY 2017
DIRECTORS' COMMENTARY
Atlantic Leaf presents its results for the three months ended 31 May 2017.
QUARTERLY RESULTS
Assets under management remained unchanged in the quarter under review generating an average yield of 7.3%.
Gearing also remained unchanged at 50% Loan to Value (LTV) and the average cost of debt was 3.2%. The weighted
average adjusted headline earnings per share in the quarter of 2.31 GBP pence per share were slightly ahead of
management's forecast and in line with the previous year (2016: GBP 2.34 pence per share).
EARNINGS
On 15 May 2017 the Company paid the final dividend of 4.3 GBP pence per share for the year ended 28 February 2017,
bringing the annual distribution to 8.5 GBP pence per share. The payment of the dividend has the effect of reducing
reserves and hence the Net Asset Value (NAV) per share at reporting date now stands at 1.07 GBP per share.
DIVIDENDS PAID
On 15 May 2017 the company paid the final dividend of 4.3 GBP pence per share for the year ended 28 February 2017,
bringing the annual distribution to 8.5 GBP pence per share. The payment of the dividend has the effect of reducing
reserves and hence the NAV per share which at reporting date now stands at 1.07 GBP per share.
ANNUAL GENERAL MEETING
The company held its Annual General Meeting of shareholders on 29 June 2017, and all resolutions were passed.
COMPANY OUTLOOK
Whilst Brexit continues to create an uncertain outlook for the UK economy, the commercial property market has
remained strong benefitting from a weaker sterling and buoyant demand. The Company's management team has
well progressed with a number of acquisition opportunities that will further diversify the Company's asset base and
contribute to the continued and sustainable growth in distributions to shareholders. The Company remains on track
to achieve a distribution of 9.00 GBP pence per share for the full year to 28 February 2018 representing an increase
of 6% over the previous year.
This forecast has not been reviewed or reported on by the Company's auditors.
Atlantic Leaf has primary listings both on the Official Market of the Stock Exchange of Mauritius Ltd ("SEM") and
on the Main Board of the JSE Limited. There have been no changes to the board of directors of the Company (the
"Board") since the release of the audited financial statements for the year ended 28 February 2017.
By order of the Board
Intercontinental Trust Limited
Company Secretary
11 July 2017
STATEMENT OF FINANCIAL POSITION
Group Group Group
Unaudited Unaudited Audited
as at as at as at
31-May-2017 31-May-2016 28-Feb-2017
GBP GBP GBP
ASSETS
Non-current assets 303 930 421 270 947 309 303 920 316
Investment properties 303 068 000 263 593 222 303 068 000
Listed investments 712 298 731 461 702 193
Loan receivable – 6 622 626 –
Other receivable 150 123 – 150 123
Current assets 7 049 002 2 976 250 14 031 369
Trade and other receivables 1 804 643 506 106 1 335 291
Cash and cash equivalents 5 244 359 2 470 144 12 696 078
Total Assets 310 979 423 273 923 559 317 951 685
Equity and Liabilities
Equity 152 017 026 134 122 949 154 796 268
Share capital 152 772 761 132 944 725 152 772 761
Cash flow hedge reserve (1 825 357) (1 315 391) (1 880 949)
Retained earnings 1 069 622 2 493 615 3 904 456
Liabilities
Non-Current liabilities 149 285 417 128 200 190 149 574 995
Long-term borrowings 149 285 417 128 200 190 149 574 995
Current liabilities 9 676 980 11 600 420 13 580 422
Trade and other payables 4 208 714 3 523 427 3 662 997
Current portion of long-term borrowings 2 170 500 6 385 000 7 038 750
Tax payable 1 350 238 289 701 887 088
Derivative financial instruments 1 947 528 1 402 292 1 991 587
Total Equity and Liabilities 310 979 423 273 923 559 317 951 685
Number of shares in issue 142 671 209 123 430 876 142 671 209
Net asset value per share (GBP) 1.07 1.09 1.08
Net asset value per share excluding cash flow hedge reserve 1.08 1.10 1.10
STATEMENT OF CHANGES IN EQUITY
Cash flow
Stated Retained hedge
Capital Earnings reserve Total
GBP GBP GBP GBP
Balance at 1 March 2016 132 854 283 4 959 307 (1 783 633) 136 029 957
Profit for the year – 9 084 511 – 9 084 511
Dividends – (10 139 362) – (10 139 362)
Issue of shares (net of transaction costs) 19 918 478 – – 19 918 478
Other comprehensive income – – (97 316) (97 316)
Balance at 28 February 2017 152 772 761 3 904 456 (1 880 949) 154 796 268
Profit for the period – 3 300 028 – 3 300 028
Dividends – (6 134 862) – (6 134 862)
Issue of shares (net of transaction costs) – – – –
Other comprehensive income – – 55 592 55 592
Balance at 31 May 2017 152 772 761 1 069 622 (1 825 357) 152 017 026
STATEMENT OF CASH FLOWS
Group Group Group
Unaudited Unaudited Audited
Quarter Quarter Year
ended ended ended
31-May-2017 31-May-2016 28-Feb-2017
GBP GBP GBP
Cash generated from operations 4 994 481 12 483 581 17 162 555
Interest received 6 930 108 510 204 980
Finance costs (1 079 074) (722 225) (4 182 627)
Tax paid (2 473) (402 710) (906 750)
Net cash from/(utilised in) operating activities 3 919 864 11 467 156 12 278 158
Cash flows from investing activities
Acquisition of investment properties – (69 734 036) (114 685 033)
Sale of investment property – – 11 300 000
Sale of listed investments 9 063 – –
Dividends received 12 570 13 245 23 643
Loan to APIL – 122 733 6 733 730
Net cash utilised in investing activities 21 633 (69 598 058) (96 627 660)
Cash flow from financing activities
Proceeds from issue of shares – 90 442 19 430 385
Proceeds from borrowings – 59 352 387 88 499 186
Repayment of borrowings (5 298 000) (175 000) (7 713 000)
Dividends paid (6 134 862) (4 936 284) (9 651 269)
Net cash utilised from financing activities (11 432 862) 54 331 545 90 565 302
Increase in cash and cash equivalents (7 491 365) (3 799 357) 6 215 800
Cash and cash equivalents at beginning of the year 12 696 078 6 223 292 6 223 292
Effects of exchange difference on cash and cash equivalents 39 646 46 209 256 986
Cash and cash equivalents at end of year 5 244 359 2 470 144 12 696 078
RECONCILIATION OF BASIC EARNINGS TO DISTRIBUTABLE EARNINGS
Group Group Group
Unaudited Unaudited Audited
Quarter Quarter Year
ended ended ended
31-May-2017 31-May-2016 28-Feb-2017
GBP GBP GBP
Basic earnings 3 300 028 2 470 587 9 084 511
Less:
Fair value adjustments to investment properties 323 377 268 193 4 384 351
Profit on disposal of investment property (1 062 312)
Headline earnings 3 623 405 2 738 780 12 406 550
Add back:
Straight line lease adjustments (323 377) (268 193) (1 293 509)
Adjusted for once-off costs
Transaction costs - 414 489 365 725
Fair value loss on cash flow hedges transferred - - 163 658
Adjusted headline earnings/Distributable earnings 3 300 028 2 885 076 11 642 424
Weighted average number of shares in issue 142 671 209 123 489 825 129 548 965
Basic and diluted earnings per share (GBP pence) 2.31 2.00 7.01
Basic and diluted headline earnings per share (GBP pence) 2.54 2.22 9.58
Adjusted headline earnings per share (GBP pence) 2.31 2.34 9.00
Interim dividend - - 5 203 078
Final dividend - - 6 134 862
Total dividend - - 11 337 940
Interim dividend per share (GBP pence) - - 4.20
Final dividend per share (GBP pence) - - 4.30
Total dividend per share (GBP pence) - - 8.50
SEGMENTAL REPORTING – THREE MONTHS ENDED 31 MAY 2017
Retail
Industrial Office Warehouse Unallocated Total
GBP GBP GBP GBP GBP
Statement of profit or loss
Revenue 4 181 422 1 413 882 105 200 323 377 6 023 881
Profit on disposal of investments – – – – –
Fair value adjustments – – – (313 272) (313 272)
Interest expense (926 521) (293 091) (25 323) – (1 244 935)
Income tax (340 756) (92 674) (17 441) (14 751) (465 622)
Adjusted headline earnings 2 428 093 923 084 54 122 (105 271) 3 300 028
Statement of financial position
Additions to investment property – – – – –
Total assets 221 555 198 76 552 079 5 810 000 7 062 146 310 979 423
Total borrowings 108 524 247 40 735 163 2 196 507 – 151 455 917
SEGMENTAL REPORTING – THREE MONTHS ENDED 31 MAY 2016
Retail
Industrial Office Warehouse Unallocated Total
GBP GBP GBP GBP GBP
Statement of profit or loss
Revenue 3,751,705 931,647 130,274 268,193 5,081,819
Profit on disposal of investments – – – – –
Fair value adjustments – – – (209,117) (209,117)
Interest expense (854,590) (164,699) (33,181) – (1,052,470)
Income tax (283,489) (101,593) (5,387) (4,623) (395,092)
Adjusted headline earnings 2,403,972 657,019 90,844 (266,759) 2,885,076
Statement of financial position
Additions to investment property 52,275,816 15,968,289 – – 68,244,105
Total assets 203,340,628 54,842,293 5,900,266 9,840,372 273,923,559
Total borrowings 101,934,745 29,482,369 3,168,076 – 134,585,190
STATEMENT OF COMPREHENSIVE INCOME
Group Group Group
Unaudited Unaudited Audited
Quarter Quarter year
ended ended ended
31-May-2017 31-May-2016 28-Feb-2017
GBP GBP GBP
Rental revenue 5 700 504 4 813 626 20 035 401
Straight-line lease income adjustment 323 377 268 193 1 293 509
Revenue 6 023 881 5 081 819 21 328 910
Property operating expenses (221 877) (541 793) (862 555)
Other operating expenditure (557 567) (544 997) (2 401 771)
Operating income 5 244 437 3 995 029 18 064 584
Other income 9 172 1 355 1 935
Investment income 30 602 84 673 196 770
Profit on disposal of investment property – – 1 062 312
Profit on foreign exchange 39 646 46 209 256 986
Fair value adjustments (313 272) (209 117) (4 518 202)
Finance costs (1 244 935) (1 052 470) (4 483 354)
Profit before taxation 3 765 650 2 865 679 10 581 031
Taxation (465 622) (395 092) (1 496 520)
Profit for the period 3 300 028 2 470 587 9 084 511
Other comprehensive income
Items that will be reclassified subsequently to
profit or loss
Fair value movement on interest rate swaps 55 592 468 242 (97 316)
Total comprehensive income for the period 3 355 620 2 938 829 8 987 195
RELATED PARTY TRANSACTIONS
Per the Property Services Agreement, fees for the quarter paid to Martial Eagle Limited amounted to GBP 379,714 (2016:
GBP 322,942).
NOTES
The Company is required to publish financial results for the three months ended 31 May 2017 in terms of Listing Rule 12.19
of the SEM. The abridged unaudited financial statements for the three months ended 31 May 2017 ("financial statements")
have been prepared in accordance with the framework concepts and the measurement and recognition requirements of
International Financial Reporting Standards ("IFRS"), the requirements of the SAICA Financial Reporting Guides as issued
by the Accounting Practice Committee, the SEM Listing Rules, the Securities Act of Mauritius 2005, the JSE Listings
Requirements and contains the information required by IAS 34: Interim Financial Reporting.
The accounting policies and methods of computation adopted in the preparation of these financial statements are in
terms of IFRS and consistent with those applied in the preparation of the audited financial statements for the year ended
28 February 2017.
These financial statements were approved by the Board on 11 July 2017. The financial statements have not been reviewed
or reported on by the Company's external auditors.
Copies of the abridged unaudited financial statements for the three months ended 31 May 2017 and the Statement
of direct and indirect interests of each officer of the Company, pursuant to Rule 8(2)(m) of the Securities (Disclosure
Obligations of Reporting Issuers) Rules 2007 of Mauritius, are available free of charge, upon request at the Registered
Office of the Company at c/o Intercontinental Trust Limited, Level 3, Alexander House, 35 Cybercity, Ebene 72201,
Mauritius. Contact person: Mrs. Smitha Algoo.
This communique is issued pursuant to SEM Listing Rules 11.3 and 12.20 and section 88 of the Securities Act of Mauritius
2005. The Board accepts full responsibility for the accuracy of the information contained in these financial statements
and this announcement. The Directors have disclosed all matters or circumstances arising subsequent to the period
ended 31 May 2017 that require any additional disclosure or adjustment to the financial statements.
JSE sponsor South African corporate advisor
Java Capital +27 11 722 3050 Leaf Capital +27 21 657 1180
Company secretary SEM authorised representative and sponsor
Intercontinental Trust Limited +230 403 0800 Perigeum Capital Ltd +230 402 0890
Date: 11/07/2017 02:43:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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