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ATLANTIC LEAF PROPERTIES LIMITED - Abridged unaudited financial statements for the three months ended 31 May 2017

Release Date: 11/07/2017 14:43
Code(s): ALP     PDF:  
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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
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