Financial Statements
Strategic Report
Governance
Additional Information
9. Tax/ Continued A reconciliation of the tax charge applicable to the results at the statutory tax rate to the charge for the year is as follows:
2023 £000
2022 £000
(89,530) (17,011)
(Loss)/profit before taxation
146,986
Expected tax (credit)/charge on ordinary activities at the standard rate of taxation of 19% (2022: 19%)
27,927
Less: UK REIT exemption on net income Revaluation movement not taxable Gains on disposal not taxable
(4,044) 21,055
(3,257) (24,662)
– –
(8)
Total tax charge
–
As a UK REIT, the income profits of the Group’s UK property rental business are exempt from corporation tax, as are any gains it makes from the disposal of its properties, provided they are not held for trading. The Group is otherwise subject to UK corporation tax at the prevailing rate. As the principal company of the REIT, the Company is required to distribute at least 90% of the income profits of the Group’s UK property rental business. There are a number of other conditions that are also required to be met by the Company and the Group to maintain REIT tax status. These conditions were met in the year and the Board intends to conduct the Group’s affairs such that these conditions continue to be met for the foreseeable future. Accordingly, deferred tax is no longer recognised on temporary differences relating to the property rental business. 10. Dividends
2023 £000
2022 £000
Declared and paid: Interim dividend for the period ended 31 March 2021: 0.8 pence Interim dividend for the period ended 30 June 2021: 0.85 pence Interim dividend for the period ended 30 September 2021: 0.85 pence Interim dividend for the period ended 31 December 2021: 0.875 pence Interim dividend for the period ended 31 March 2022: 0.875 pence Interim dividend for the period ended 30 June 2022: 0.875 pence Interim dividend for the period ended 30 September 2022: 0.875 pence Interim dividend for the period ended 31 December 2022: 0.875 pence
– – – –
4,365 4,644 4,640 4,776
4,774 4,775 4,771 4,771
– – – –
19,091
18,425
The interim dividend of 0.875 pence per ordinary share in respect of the period ended 31 March 2023 has not been recognised as a liability as it was declared after the year-end. This dividend of £4,771,000 will be paid on 31 May 2023. 11. Earnings per share Basic and diluted earnings per share is calculated by dividing the net (loss)/profit for the year attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares in issue during the year, excluding the average number of shares held by the Employee Benefit Trust for the year. The diluted number of shares also reflects the contingent shares to be issued under the Long-term Incentive Plan. The following reflects the (loss)/profit and share data used in the basic and diluted profit per share calculation: 2023 2022 Net (loss)/profit attributable to ordinary shareholders of the Company from continuing operations (£000) (89,964) 147,420 Weighted average number of ordinary shares for basic earnings per share 545,378,286 545,904,197 Weighted average number of ordinary shares for diluted earnings per share 546,856,450 547,295,589
Picton Property Income Limited Annual Report 2023
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