Strategic Report Financial Review continued
Investment properties The appraised value of our investment property portfolio was £682.4 million at 31 March 2021, up from £664.6 million a year previously. This year we have disposed of one small retail property, for net proceeds of £3.9 million, realising a gain of £0.9 million compared to last year’s valuation. Our programme of capital expenditure has continued, with £5.0 million invested back into the portfolio. The main project undertaken was at Stanford Building in London WC2, where a full refurbishment has now completed. The overall revaluation movement across the portfolio was a gain of £12.8 million. At 31 March 2021 the portfolio comprised 46 assets, with an average lot size of £14.8 million. A further analysis of capital expenditure, in accordance with EPRA Best Practices Recommendations, is set out in the Supplementary Disclosures section. Borrowings Total borrowings are now £166.2 million at 31 March 2021, with the loan to value ratio having reduced further to 20.9%. The weighted average interest rate on our borrowings is 4.2%, while the average loan duration is now 8.9 years. Our senior loan facility with Aviva reduced by the regular amortisation, £1.3 million in the year. The Group remained fully compliant with the loan covenants throughout the year. During the year we completed a new single revolving credit facility with NatWest, replacing the two existing ones. The new £50 million facility is for an initial term of three years, until May 2023, with two one-year extensions available. Interest is currently payable at 150 basis points over LIBOR. We are currently undrawn under this facility. The fair value of our borrowings at 31 March 2021 was £187.2 million, higher than the book amount. Lending margins have remained broadly in line with the previous
Cash flow and liquidity The cash flow from our operating activities was £18.6 million this year, ahead of 2020. We invested £5.0 million into the portfolio, largely offset by £3.9 million raised from the asset disposal. The lower dividends paid also helped to maintain cash. Our cash balance at the year-end stood at £23.4 million, very close to the balance at 2020. Share capital No new ordinary shares were issued during the year. The Company’s Employee Benefit Trust acquired a further 958,000 shares, at a cost of £0.6 million, or 67 pence per share, during the year. This was to satisfy the future vesting of awards made under the Long-term Incentive Plan and Deferred Bonus Plan, and now holds a total of 2,052,269 shares. As the Trust is consolidated into the Group’s results these shares are effectively held in treasury and therefore have been excluded from the net asset value and earnings per share calculations, from the date of purchase.
AndrewDewhirst Finance Director 26 May 2021
year, but gilt rates have fallen in comparison. A summary of our borrowings is set out below: 2021 2020
2019
166.2
Fixed rate loans (£m)
167.5 168.7
Drawn revolving facilities (£m) Total borrowings (£m) Borrowings net of cash (£m) Undrawn facilities (£m) Loan to value ratio (%) Weighted average interest rate (%) Average duration (years)
–
–
26.0
166.2
167.5 194.7
142.8
143.9 169.5 49.0 25.0 21.7 24.7
50.0 20.9
4.2 8.9
4.2 9.9
4.0 9.8
46
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