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Summarised unaudited consolidated results for the three months and six months ended 28 February 2017
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")
SUMMARISED UNAUDITED CONSOLIDATED RESULTS FOR THE THREE MONTHS AND SIX MONTHS ENDED 28 FEBRUARY 2017
RENTAL INCOME
UP GBP 10.30m (GBP 10.06m February 2016)
RECURRING PROFIT
UP GBP 5.71m (GBP 5.50m February 2016)
INTERIM DIVIDEND
- GBP 3.60p per share (GBP 3.60p per share February 2016)
STATEMENTS OF FINANCIAL POSITION AT 28 FEBRUARY 2017
THE GROUP
Unaudited Unaudited Audited
28 February 29 February 31 August
2017 2016 2016
GBP000 GBP000 GBP000
ASSETS
Non-current assets
Property, plant and equipment 527 14 19
Investment property 272,588 280,976 272,588
273,115 280,990 272,607
Current assets
Trade and other receivables 4,367 5,121 5,846
Cash and cash equivalents 3,117 5,278 3,639
7,484 10,399 9,485
Total assets 280,599 291,389 282,092
EQUITY
Capital and reserves (attributable to owners of
the parent)
Share capital 124,412 124,412 124,412
Hedging reserve (3,914) - (5,614)
Accumulated losses (10,571) (5,904) (10,051)
Total equity 109,927 118,508 108,747
LIABILITIES
Non-current liabilities
Borrowings 163,212 162,741 162,935
Derivative financial instrument 3,914 26 5,614
167,126 162,767 168,549
Current liabilities
Trade and other payables 3,546 9,882 4,719
Income tax payable - 232 77
3,546 10,114 4,796
Total liabilities 170,672 172,881 173,345
Total equity and liabilities 280,599 291,389 282,092
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR QUARTER AND HALF YEAR ENDED 28 FEBRUARY 2017
THE GROUP
Unaudited Unaudited Unaudited Unaudited
For the For the For the For the
3 months 3 months 6 months 6 months
ended ended ended ended
28 February 29 February 28 February 29 February
2017 2016 2017 2016
GBP000 GBP000 GBP000 GBP000
Rental income 4,934 5,717 10,308 10,059
Expenses
Property operating expenses (442) (758) (1,424) (1,424)
Administrative expenses (316) (550) (587) (805)
Acquisition related costs - (120) - (2,563)
Other income 72 - 72 -
4,248 4,289 8,369 5,267
Net finance costs (1,439) (1,434) (2,862) (2,692)
Profit before tax 2,809 2,855 5,507 2,575
Taxation 84 (68) 84 (301)
Profit for the period 2,893 2,787 5,591 2,274
Other comprehensive income for the period
Items that may be reclassified subsequently to
profit or loss
Fair value (loss)/gain on financial derivatives (466) (4,282) 1,700 (4,384)
Other comprehensive income for the period (466) (4,282) 1,700 (4,384)
Total comprehensive income for the period 2,427 1,495 7,291 (2,110)
Basic earnings per share (GBP) 0.019 0.019 0.037 0.015
Headline earnings per share (GBP) 0.019 0.019 0.037 0.015
STATEMENTS OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 28 FEBRUARY 2017
(Accumulated
losses)/
Hedging Retained
Share capital reserve earnings Total
GBP000 GBP000 GBP000 GBP000
THE GROUP
Balance at 1 September 2016 124,412 (5,614) (10,051) 108,747
Profit for the period - - 5,591 5,591
Other comprehensive income for the period - 1,700 - 1,700
Dividends - - (6,111) (6,111)
Balance at 28 February 2017 124,412 (3,914) (10,571) 109,927
Balance at 1 September 2015 80,511 - 834 81,345
Issue of shares 44,693 - - 44,693
Issue costs (792) - - (792)
Profit for the period - - 2,274 2,274
Other comprehensive loss for the period - - (4,384) (4,384)
Dividends - - (4,628) (4,628)
Balance at 29 February 2016 124,412 - (5,904) 118,508
Balance at 1 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)
Other comprehensive income for the period - - - -
Dividends - - (10,128) (10,128)
Balance at 31 August 2016 (Audited) 124,412 (5,614) (10,051) 108,747
STATEMENTS OF CASH FLOWS FOR HALF YEAR ENDED 28 FEBRUARY 2017
THE GROUP
Unaudited Unaudited
28 February 29 February
2017 2016
GBP000 GBP000
Cash flows from operating activities
Cash generated from operations 8,832 1,027
Interest paid (2,727) (1,765)
Net cash generated from/(used in) operating activities 6,105 (738)
Cash flows from investing activities
Acquisitions of subsidiaries, net of cash acquired - (45,836)
Addition to property, plant and equipment (516) (14)
Net cash used in investing activities (516) (45,850)
Cash flows from financing activities
Proceeds from borrowings - 7,608
Proceeds from issue of share capital - 44,693
Payments for share issuance costs - (792)
Dividend payment (6,111) (4,628)
Net cash (used in)/generated from financing activities (6,111) 46,881
Net (decrease)/increase in cash and cash equivalents for the period (522) 293
Cash and cash equivalents at the beginning of the period 3,639 4,985
At 28/29 February 3,117 5,278
RECONCILIATION OF PROFIT FOR HALF YEAR TO HEADLINE EARNINGS
THE GROUP
For the For the For the For the
3 months 3 months 6 months 6 months
ended ended ended ended
28 February 29 February 28 February 29 February
2017 2016 2017 2016
Basic and headline earnings per share GBP000 GBP000 GBP000 GBP000
Basic earnings from continuing operations 0
attributable to equity holders of the Company 2,893 2,787 5,591 2,274
Headline earnings from continuing operations 0
attributable to equity holders of the Company 2,893 2,787 5,591 2,274
Number of shares/weighted average number of shares 152,774,750 148,255,284 152,774,750 148,255,284
Basic earnings per share (GBP) 0.019 0.019 0.037 0.015
Headline earnings per share (GBP) 0.019 0.019 0.037 0.015
Note: There are no dilutionary instruments in issue
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 and logistics/warehouse property assets in the United Kingdom ("UK") 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 ("GBP").
BUSINESS REVIEW
We are pleased to report that the Group produced a recurring profit of GBP5.71 million for the period which is slightly ahead
of the previous year's recurring profit of GBP5.50 million. The Group's IFRS result for the period was a profit of GBP5.59 million
compared to the previous year's result of GBP2.27 million.
Letting activity and lease renewals
During the period, the Company undertook fifteen leasing events of which seven were long term core lettings, with an
average lease length of seven years and rent-free of six months.
Nine core leases have been renewed at an average rent increase of 1.65% above valuation Estimated Rental Value ("ERV"),
accounting for rent of GBP735,650 per annum.
As at 28 February 2017, the centres had a combined occupancy of 93.59% (30 November 2016: 93.34%) by ERV and 92.38%
(30 November 2016: 91.54%) by Gross Lettable Area.
There are a further seven units currently under offer on long term lettings and thirteen core lease renewals ongoing which
will result in a further improvement to the overall occupancy of the centres.
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.
Net asset value ("NAV")
The European Public Real Estate Association ("EPRA") NAV is a proportionally consolidated measure representing the
International Financial Reporting Standards ("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 75 pence per share, up from 73 pence per
share at 30 November 2016.
PROSPECTS
During this period, the Company's business strategy has continued to evolve to take into account changes in the prevailing
political and economic climate. In particular, in relation to the European investment property market's reaction to the
European Union Referendum result and the resultant triggering of Article 50, whereby the UK served notice to leave the
European Union.
The Company's strategy continues to retain its retail focus with a refined strategy to also acquire:
a. retail property within mainland Europe and the UK; and
b. non-retail assets within mainland Europe and the UK.
Preference will be given to dominant retail assets and logistics/warehouse properties let to tenants in the UK, Germany,
Austria, Slovakia, Czech Republic, Poland, Ireland, and Benelux.
The Company has since been working hard to execute the strategy and have identified a shortlist of properties that meet
its investment criteria including a logistics warehouse in Austria and a logistics and distribution centre in Slovakia which are
currently under offer for approximately EUR33 million at a NIY of over 7%. The proposed acquisitions in Slovakia and Austria
will provide exposure to the logistics/warehouse market enabling the Company to benefit from the increase of e-retail
activity across Europe. Should the proposed acquisitions be successfully implemented, New Frontier will publish a further
announcement in this regard.
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.
CHANGE IN FUNCTION OF DIRECTORS
Richard Thomas, an independent non-executive director of the Company, has with effect from 11 January 2017 been appointed
as the lead independent non-executive director.
Mr Andile Mazwai, formerly an independent non-executive director of the Company, will now be categorised as a
non-independent non-executive director of the Company, due to his recent appointment as an executive director and the
chief operating officer of Rebosis Property Fund Limited, the Company's controlling shareholder.
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 respectively. The Board is pleased to announce that a dividend of 3.6 pence per
share (approximately GBP5.50 million) has been declared for the period under review. An announcement, containing
details of this dividend, will be made on the Stock Exchange News Service of the Johannesburg Stock Exchange ("JSE") as
well as the website of the SEM and will be issued separately.
BASIS OF PREPARATION
These summarised unaudited consolidated results for the six months ended 28 February 2017 have been prepared in
accordance with IFRS, including IAS34 - Interim Financial Reporting, the SEM Listing Rules, the Securities Act of Mauritius
2005 and the JSE Listings Requirements 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.
These financial statements have not been reviewed or reported on by the Company's external auditors.
SEGMENTAL INFORMATION
The Group derives its revenue from a single business activity, the property sector, which it considers as its only segment.
By order of the Board
Osiris Corporate Solutions (Mauritius) Limited
Company secretary
13 April 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 of Mauritius 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
Date: 13/04/2017 11:01:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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