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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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