Interim Results

AUDAX PROPERTIES PLC PRELIMINARY ANNOUNCEMENT OF THE RESULTS FOR THE HALF YEAR TO 30 SEPTEMBER 2002 RESULTS Pressure to buy commercial property has built up rapidly over the past few months. Private investors took the lead in forcing down yields, and were encouraged by aggressive lenders offering very high loan-to-value ratios on well-let properties. Institutional property investors have also returned to the market, encouraged by property's cumulative outperformance of equities and gilts over all periods up to ten years. After property has outperformed UK equities by a further 20% so far in 2002, property's yield advantage over equities is no longer attractive. But against gilts, corporate bonds and index-linked gilts, property still offers very good value. Property's 4% yield advantage over long- dated conventional gilts is at its highest since reliable records began thirty years ago. Rental values have shown little change on average so far this year, but the weight of money has increased capital values. Retail property has shown a total return of 10% in the first nine months of 2002, compared with 7% for industrial property and 5% for offices. This relative performance pattern looks set to continue, at least until the end of next year. Occupiers are the key - demand from retail and leisure tenants is generally reasonable, both in and out-of-town. But for offices and business space in London and the South-East, demand has dried up, rental values are falling fast and large quantities of let but unoccupied space are overhanging the market from financial, technology and service sector companies in general. Voids are rising at a similar rate to the recession of the early 1990s. Vacancy rates are rising much more slowly for industrial and warehouse property and rental values in this sector are flat. Enquiries: Matthew Oakeshott or Angela Lascelles OLIM Limited Tel: 0207 439 4400 / Fax: 0207 734 1445 PROFIT AND LOSS ACCOUNT (UNAUDITED) Six Six months Year to months to to 31 March 30 Sept 30 Sept 2002 2002 2001 £'000 £'000 £'000 Income Revenue from properties 901 998 1,992 Interest on deposits 94 21 47 Other - 1 9 995 1,020 2,052 Expenses Administrative expenses 167 181 349 Interest Payable 825 825 1,650 Profit on investing activities 3 14 53 before tax Realised (loss)/profit on (28) 1 422 disposal of properties (Loss)/profit on ordinary (25) 15 475 activities before tax Tax - (13) (313) (Loss)/profit on ordinary activities after taxation (25) 2 162 Earnings per share on ordinary £0.06 £0.30 £3.23 activities Adjustment for disposal of £(0.56) £(0.02) £(2.49) properties Earnings per share on £(0.50) £0.28 £0.74 investing activities (1) The earnings on investing activities figure is intended to demonstrate the performance of the Company after eliminating profits or losses of a capital nature. Note of Profits & Losses on a Historical Cost Basis Reported (loss)/profit on (25) 15 475 ordinary activities before tax Realisation of property - 125 938 revaluation gains of previous years (Loss)/profit on ordinary (25) 140 1,413 activities before tax on a historical cost basis Retained profit for the period 2,470 1,222 2,495 on a historical cost basis STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES INCORPORATING RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS Six Six Year to months to months to 31 March 30 Sept 30 Sept 2002 2002 2001 £'000 £'000 £'000 Unrealised gains/(losses) on - (12) 1,115 investment properties Revenue (loss)/gain (25) 2 161 Total recognised (losses)/gains (25) (10) 1,276 Dividends - - - Total movement in shareholders' (25) (10) 1,276 funds Opening shareholders' funds 11,343 10,067 10,067 Closing shareholders' funds 11,318 10,057 11,343 SUMMARISED BALANCE SHEET (UNAUDITED) 30 30 31 March September September 2002 2002 2001 £'000 £'000 £'000 Total Investments 21,875 25,098 24,925 Net Current 4,443 (41) 4,468 Assets/(Liabilities) Total Assets less 26,318 25,057 26,343 Current Liabilities Creditors due after (15,000) (15,000) (15,000) one year Total Net Assets 11,318 10,057 11,343 Equity shareholders' 11,318 10,057 11,343 funds CASH FLOW STATEMENT (UNAUDITED) Six Six Year to months to months to 31 30 30 March September September 2002 2002 2001 £'000 £'000 £'000 Operating activities Net cash inflow from operating 783 704 1,425 activities Taxation Tax paid (313) (165) (165) Returns on investments and servicing of finance Interest paid (825) (825) (1,650) Capital expenditure and financial investment Purchase of investments (835) (835) Sale of investments (518) 651 5,192 Net cash outflow from capital (518) (184) 5,077 expenditure and financial investment Net cash outflow before (873) (470) 4,687 financing Net cash outflow of liquid (2,500) (172) - resources (to the parent company) NET CASH OUTFLOW (3,373) (642) (4,687) DECREASE IN CASH (3,373) (642) (4,687) Notes: 1. The results for the year to 31 March 2002 are an abridged version of the full accounts for that year which received an unqualified audit report and which have been filed with the Registrar of Companies. Audax Properties plc is a wholly owned subsidiary of Value and Income Trust plc. 2. The Interim Report will be issued to debenture holders on 6 November 2002. Copies may be obtained from OLIM Limited, Pollen House, 10/12 Cork Street, London W1S 3NP or Edinburgh Fund Managers plc, Donaldson House, 97 Haymarket Terrace, Edinburgh, EH12 5HD. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/10/25/20021025BIT01080/wkr0001.doc http://www.waymaker.net/bitonline/2002/10/25/20021025BIT01080/wkr0002.pdf