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NEW FRONTIER PROPERTIES LIMITED - Summarised unaudited consolidated results for the three months ended 30 November 2018

Release Date: 15/01/2019 11:00
Code(s): NFP     PDF:  
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Summarised unaudited consolidated results for the three months ended 30 November 2018

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")

SUMMARISED UNAUDITED CONSOLIDATED RESULTS FOR THE THREE MONTHS ENDED 30 NOVEMBER 2018


The Company was 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 ("AltX") of
the Johannesburg Stock Exchange ("JSE"). The primary objective of the Company is to acquire good quality, income-generating
retail and logistics/warehouse property assets in the United Kingdom ("UK") and mainland Europe.

REPORTING CURRENCY

The Company's results are reported in pounds sterling ("GBP").

FINANCIAL RESULTS

The Group's International Financial Reporting Standards ("IFRS") profit for the period was GBP0.742 million (2017: Profit of
GBP 3.239 million).


BUSINESS REVIEW

Retail sector overview

The widely reported challenges in the UK retail sector have continued in the first quarter. Over the Christmas period retailers have
once again issued a mixed set of trading statements. We expect further challenges in the retail sector over the next reporting period
following the pre-Christmas announcement that HMV, a tenant in our Middlesbrough centre, has gone into administration
although they are still trading.

The outcome of the UK's exit from the European Union should become clearer shortly. The uncertainty caused by the politicians'
inability to agree a solution has knocked consumer and business confidence. The consequent lack of investor confidence in the
retail sector has resulted in the shopping centre investment market seeing little activity with trading volumes at their lowest levels
since 2008.

However, despite this challenging backdrop the Company has seen a considerable improvement in its void rate as our asset
management initiatives are bearing fruit. Our occupancy level has improved to 93.46% (31 August 2018: 90.27%) by estimated
rental value and to 91.56 by gross lettable area (31 August 2018: 88.14%).

Letting activity and lease renewals

During the period under review several new lettings have occurred including the upsizing of River Island and Footasylum in
Blackpool, both on 10 year leases, which demonstrates that tenants will still take new space in the right location. This has helped to
increase occupancy as set out above.

Lease renewals have been concluded with Costa in Middlesbrough and Card Factory and Game at Burton.
BANKING

As previously announced the fall in value of the Group’s properties has resulted in its loan to value covenants being exceeded.

Both lenders continue to engage with the Group at this time. However, both lenders have trapped the free rental cashflow, although
they have agreed to release funds for the Group's operating expenses and capital expenditure to support letting activity at the
shopping centres. Meanwhile, surplus funds will be used to repay the outstanding loans. Whilst the Group has the support of its
funders, its loan terms are effectively repayable on demand.

The board of directors of New Frontier ("Board") considers that whilst the Group has the support of its lenders it can service its
obligations in the normal course of business and will continue as a going concern.

STRATEGY

The Group is actively managing its assets, focussing on improving its net operating income and reducing its debt exposure though
the sale of assets where it can do so for the benefit of all its stakeholders.

Furthermore, the Group is seeking long term solutions to reduce the cost base with the support of its major shareholder and
positioning its assets to take advantage of any improvement in the shopping centre sector.

BASIS OF PREPARATION

These summarised unaudited consolidated results for the three month period ended 30 November 2018 have been prepared in
accordance with IFRS, including IAS 34 – Interim Financial Reporting, the SEM Listing Rules, the Securities Act of Mauritius 2005
and the JSE Listings Requirements to the extent required. The accounting policies are in accordance with IFRS and are consistent
with those applied in the annual financial statements for the year ended 31 August 2018.

These financial statements have not been reviewed or reported on by the Company's external auditors.

SEGMENTAL INFORMATION

The Group derives its revenue from the single business activity of property investment and is active in two segments being UK
Shopping Centres and European warehouses.

By order of the Board

Osiris Corporate Solutions (Mauritius) Limited
Company secretary

15 January 2019


NOTES
Copies of this report are available to the public at the registered office of the Company, Chemin Vingt Pieds, 5 th 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 Chemin Vingt Pieds, 5 th 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 of Mauritius 2005. The
Board accepts full responsibility for the accuracy of the information in this communiqué.

For further information please contact:

JSE designated advisor
Java Capital +27 11 722 3050

Company secretary
Osiris Corporate Solutions (Mauritius) Limited +230 650 4030


STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE 3 MONTH PERIOD ENDED 30 NOVEMBER 2018




                                                   Unaudited           Unaudited              Audited
                                              For the 3 month     For the 3 month
                                                period ended        period ended    For the year ended

                                            30 November 2018    30 November 2017       31 August 2018
                                                    GBP 000             GBP 000              GBP 000


Revenue
Rental income                                           4,069               4,531              17,521

Expenses
Operating expenses                                    (1,133)               (530)              (3,395)
Administrative expenses                                  140                (318)              (2,555)
Other income                                                -                   -                   21
Fair value gain/(loss) on investment                    (171)                   -             (80,835)
Movement in financial derivatives/FOREX                   15                (114)                 (16)
                                                        2,920               3,569             (69,259)
Finance costs                                         (1,873)             (1,721)              (7,201)
Profit/(loss) before taxation                           1,047               1,848             (76,460)
Taxation                                                (172)                   -                 (21)
Profit for the year                                      875                1,848             (76,481)
Other comprehensive income for the period               (133)               1,391               1,404

Total comprehensive income for the period                742                3,239             (75,077)




Basic Earnings/(loss) per share (GBP)                   0.005               0.012              (0.482)


Headline Earnings/(loss) per share (GBP)                0.007               0.012               0.027


STATEMENTS OF FINANCIAL POSITION AT 30 NOVEMBER 2018


                                                    Unaudited                Unaudited          Audited
                                                        As at                    As at             As at
                                              30 November 2018         30 November 2017    31 August 2018
                                                       GBP 000                GBP 000          GBP 000
ASSETS
Non-current assets
Office Equipment                                             15                     17                15
Investment property                                     193,175                273,555           193,288
Derivative financial instrument                             970                  1,089             1,103
                                                        194,160                274,661           194,406
Current assets
Trade and other receivables                               4,520                  6,096             5,179
Other current financial assets                                -                    238                 -
Cash and cash equivalents                                 4,506                  3,117             3,471
                                                          9,026                  9,451             8,650
Total assets                                            203,186                284,112           203,056

EQUITY
Capital and reserves (attributable to owners of the parent)

Share capital                                             47,136                 39,413           47,136
Hedging reserve                                            (750)                (1,821)            (915)
Retained Earnings/(Losses)                              (22,227)                60,055          (23,102)
Total equity                                              24,159                97,647            23,119
LIABILITIES
Non-current liabilities                                        -               166,910           143,581
Current liabilities
Trade and other payables                                  4,025                  6,550             5,000
Dividend payable                                              -                    244                 -
Borrowings                                              174,816                 12,762            31,356
Income tax payable                                          186                      -                 -
                                                        179,027                 19,556            36,356

Total liabilities                                       179,027                186,466           179,937
Total equity and liabilities                            203,186                284,113           203,056

STATEMENTS OF CASH FLOWS FOR THE 3 MONTH PERIOD ENDED 30 NOVEMBER 2018



                                                            Unaudited            Unaudited           Audited
                                                       For the 3 month      For the 3 month      For the year
                                                         period ended         period ended             ended
                                                    30 November 2018     30 November 2017     31 August 2018
                                                             GBP 000              GBP 000           GBP 000
Cash flows from operating activities
Cash generated from operations                                  2,821                3,387            11,837
Tax paid                                                             -                    -              146
Interest paid                                                  (1,139)              (1,305)           (4,755)
Net cash generated from operating activities                    1,682                2,082             7,228


Cash flows from investing activities
Capital improvements to investment property                       (54)                (659)           (1,132)
Purchase of investment property                                      -              (7,944)           (8,150)
Net cash used in investing activities                             (54)              (8,603)           (9,282)


Cash flows from financing activities
Proceeds from receipt of loan                                        -               8,500            12,800
Repayment of borrowings                                          (598)                    -           (1,783)
Payment of borrowing costs                                           -                    -             (695)
Dividend payment                                                     -              (4,372)          (10,299)
Net cash generated from/(used in) financing
activities                                                       (598)               4,128                23

Net increase in cash and cash equivalents for the
                                                                1,030               (2,393)           (2,031)
period/year
Exchange difference                                                 5                     -               (8)
Cash and cash equivalents at the beginning of the
                                                                3,471                5,511             5,510
period/year


At end of period/ year                                          4,506                3,118             3,471


STATEMENTS OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 NOVEMBER 2018


                                             Share    Hedging     Revenue
                                            capital    Reserve      deficit     Total
                                           GBP 000    GBP 000     GBP 000     GBP 000
THE GROUP

Balance as at 1 September 2018               47,136      (915)     (23,102)    23,119
Profit for the period                             -          -          875       875
Other comprehensive income for the year
Cash flow hedge reserve                           -       298             -       298
Amortisation of historic cash flow hedge
reserve                                           -      (133)            -     (133)

Balance at 30 November 2018                  47,136      (750)     (22,227)    24,159


Balance as at 1 September 2017               39,412    (3,330)       63,678     99,760
Issue of shares                               7,724          -            -      7,724
Profit for the year                               -          -     (76,481)   (76,481)
Other comprehensive income for the year           -          -                       -
Cash flow hedge reserve                           -      1,404            -      1,404
Dividend payment                                  -          -     (10,327)   (10,327)
Waiver of dividend                                -          -           28         28
Amortisation of historic cash flow hedge
reserve                                           -      1,011                  1,011

Balance at 31 August 2018                    47,136      (915)     (23,102)    23,119


Balance as at 1 September 2017               39,412    (3,330)      63,678     99,760
Profit for the period                             -          -       1,848      1,848
Other comprehensive income for the year
Cash flow hedge reserve                           -      1,391            -      1,391
Dividend payment                                  -          -      (5,500)    (5,500)
Waiver of dividend                                -          -           28         28
Amortisation of historic cash flow hedge
reserve                                           -        120            -       120

Balance at 30 November 2017                  39,412    (1,819)      60,055     97,647


RECONCILIATION OF PROFIT FOR PERIOD ENDED 30 NOVEMBER 2018 TO HEADLINE EARNINGS


                                                                       THE GROUP
Basic and headline earnings per share
                                                     For the 3 month       For the 3 month     For the year
                                                       period ended          period ended            ended
                                                   30 November 2018      30 November 2017    31 August 2018

                                                           GBP 000               GBP 000          GBP 000

Basic earnings/(loss) attributable to equity
holders of the Company                                          875                  1,848         (76,481)
Fair value movement on investment properties                    171                      -           80,835

Headline earnings attributable to equity holders
of the Company                                                 1,046                 1,848            4,354


Number of shares/weighted average number of
shares                                                   160,935,407           152,774,750      158,587,821


Earnings per share
Basic earnings/(loss) per share (GBP)                          0.005                 0.012          (0.482)


Headline earnings per share (GBP)                              0.007                 0.012            0.027

Date: 15/01/2019 11:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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