THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY

AND ITS SUBSIDIARIES

LEI: 213800GE3FA4C52C1N05

FOR RELEASE                           7.00 AM                                    28 November 2024

THE CARDIFF PROPERTY PLC

(The Group, including Campmoss, specialises in property investment and development in the Thames Valley. The total portfolio including the jointly controlled Campmoss investment and development portfolio, valued in excess of £22m, is primarily located to the west of London, close to Heathrow Airport and in Surrey and Berkshire.)

PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

Highlights:

Richard Wollenberg, Chairman, commented:

"During the year activity in the Thames Valley commercial property market has continued to show some signs of recovery albeit at a slow pace.

The Group including Campmoss owns a retail portfolio primarily located in Bracknell (Berkshire), and Egham (Surrey), which has shown resilience with minimal turnover of tenants, the majority having traded for a number of years. Lease renewals have been agreed at existing levels whilst the Group has benefitted from previously agreed fixed annual rental increases.

Commercial property investment yields have remained similar to last year and it is encouraging to note that the market has seen a number of investment sales recently completed without any further decline in values. Tenant enquiries have increased with recent lettings at our office property in Egham Surrey at levels including a small increase in rental levels."

For further information:

THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY

AND ITS SUBSIDIARIES

PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

Chairman's Statement

Dear Shareholder,

During the year activity in the Thames Valley commercial property market has continued to show some signs of recovery albeit at a slow pace.

The Group including Campmoss owns a retail portfolio primarily located in Bracknell (Berkshire), and Egham (Surrey), which has shown resilience with minimal turnover of tenants, the majority having traded for a number of years. Lease renewals have been agreed at existing levels whilst the Group has benefitted from previously agreed fixed annual rental increases.

Commercial property investment yields have remained similar to last year and it is encouraging to note that the market has seen a number of investment sales recently completed without any further decline in values. Tenant enquiries have increased with recent lettings at our office property in Egham Surrey at levels including a small increase in rental levels.

All business units at the Maidenhead Enterprise Centre, Maidenhead are now occupied with two new medium-term lettings agreed with slightly increased rentals.

The Thames Valley residential market remains firm with all leasehold apartments held by the Group let on Assured Shorthold Tenancy Agreements. Renewals or new lettings have achieved a marginal rental increase.

Detailed negotiations in respect of the Group's planning applications at The Priory, Burnham, Highway House, Maidenhead and Tangley Place, Guildford, continued throughout the year. As mentioned last year planning costs continue to spiral as a result of additional reports being required and subsequent delays. The planning process has become immersed in paperwork and must be simplified if new development is to take place. To date there has been no obvious impact from the new government's desire to enhance the system.

FINANCIAL

For the year to 30 September 2024 the Group profit before tax was £1.4m (2023: £1.3m). This includes a negative revaluation of £0.02m (2023: £0.3m). Our share of profit after tax in Campmoss and its subsidiary amounted to £0.14m (2023: £0.53m), with the reduction primarily due to negative property revaluation of £0.12m (2023: positive revaluation £0.35m). The Company received a dividend of £1.0m (2023: £2.0m) from its investment in Campmoss. In October 2024 Campmoss declared a further dividend of £3.15m of which the Company will receive £1.5m.

Revenue for the year which represented gross rental income, excluding Campmoss, totalled £0.7m (2023: £0.7m).

The profit after tax attributable to shareholders for the financial year was £1.07m (2023: £1.11m) and the earnings per share was 102.76p (2023: 104.62p).

At the year-end, the Company's commercial portfolio was valued by Kempton Carr Croft at a total of £5.63m (2023: £5.64m) this valuation excludes the Company's freehold office property which was also valued by Kempton Carr Croft and is included in the balance sheet at valuation and classified as property, plant and equipment. The marginal decline in capital values is due to market uncertainty around the continuing impact of higher interest rates.

Property when completed and retained for re-sale is held as inventory at the lower of cost or net realisable value. At the year-end this related to commercial property at The Windsor Business Centre owned by First Choice Estates plc, the Company's fully owned subsidiary and residential apartments held by Campmoss Developments Limited.

The Group's total property portfolio, including the jointly controlled Campmoss group, was valued at £22.9m (2023: £22.9m).

The Company's share of the net assets of Campmoss group was £11.42m (2023: £12.28m). The reduction in value is due to dividends paid by Campmoss of £2.15m of which £1.0m was paid to Cardiff (2023: £2.0m).

The Group's total net assets as at the year-end were £30.42m (2023: £29.98m) equivalent to £29.31 per share (2023: £28.44) an increase of 3.1% over the year (2023: 3.2%). The Group, including Campmoss, has adequate financial facilities and resources to complete works in progress. Cash balances are held on instant or short-term deposit. At the year-end, the Company had nil gearing (2023: nil).

During the year the Company purchased and cancelled 16,034 (2023: 27,977) ordinary shares at a total cost of £0.37m (2023: £0.68m). The Company may hold in treasury any of its own shares purchased. This gives the Company the ability to reissue treasury shares and provides greater flexibility in the management of its capital base. At the year end the Company held nil (2023: nil) shares in treasury. Any shares purchased by the Company not held in treasury will be cancelled and the number of shares in issue reduced accordingly.

The Company proposes to continue its policy of purchasing its own shares, whether to be held in treasury or to be cancelled, and a resolution renewing the directors' authority will be placed before the forthcoming Annual General Meeting to be held on 16 January 2025. This authority will only be exercised in circumstances where the Directors regard such purchases to be in the best interests of shareholders as a whole. Full details of the AGM are available on the Company's website www.cardiff-property.com.

IFRS accounting requires that deferred tax is recognised on the difference between the cost of properties including applicable indexation, and quoted investments and their current market value. However, IFRS accounting does not require the same treatment in respect of the Group's unquoted investment in Campmoss, our 47.62% owned Joint Venture, which represents a substantial part of the Company's net assets. Whilst provision is made in the Campmoss accounts for deferred tax should the shares in Campmoss be disposed of, for indicative purposes only and based on the value in the Company's balance sheet at the year-end this would result in a tax liability of £2.86m (2023: £3.07m) equivalent to £2.75 (2023: £2.91) per share calculated using a tax rate of 25% (2023: 25%). This information is provided to shareholders as an additional non-statutory disclosure.

DIVIDEND

The Directors recommend a final dividend of 17.0p per share (2023: 16.0p) making a total dividend for the year of 23.5p (2023: 22.0p), an increase of 6.8%. The final dividend will be paid on 31 January 2025 to shareholders on the register as at 18 January 2025.

THE PROPERTY PORTFOLIO

The Group continues to concentrate its property activities in the Thames Valley, close to Heathrow Airport and in the surrounding counties of Surrey, Berkshire and Buckinghamshire.

During the year the Company completed a number of new lettings at the Maidenhead Enterprise Centre, Maidenhead and The White House, Egham. The renewal of an office planning consent at The Windsor Business Centre, Windsor was finally received towards the end of the financial year although in view of market conditions existing leases will remain and no redevelopment is envisaged.  Following a lease expiry at Windsor one business unit has recently become available for letting. The individual units remain available for sale.

Campmoss continues to pursue various planning applications including an affordable housing scheme at Highway House in Maidenhead, a care home development at Tangley Place, Guildford and a revised care home scheme at The Priory, Burnham. A number of new opportunities were considered but no acquisitions were made during the year.

The Group's property portfolio, including Campmoss, contains 43.1% retail, 6.4% business units, 13.3% residential and 37.2% offices (by value).

FOCUS ON ENVIROMENTAL, SOCIAL AND GOVERNANCE ("ESG")

The Group maintains close contact with its Tenants and has a strategy of providing environmentally sustainable, energy efficient and functionable buildings bearing in mind physical and financial constraints.

Although no re-development or major refurbishment projects have been undertaken during the year aspects of ESG together with related Health and Safety issues are implemented where viable and possible.

The Group's Planning Applications emphasise modern design and include sustainability and green policies as well as being energy efficient. Our aim is to create a good working environment and achieve a BREEAM rating of Very Good.

We have developed the majority of our property portfolio and together with our tenants continue to take appropriate action to reduce carbon emissions and the impact on the environment. We view our properties as both contributing to the local economy and providing householders with decent living facilities.

INVESTMENTS

The Company retains a small portfolio of short-term retail bonds and equity investments. The value has marginally decreased over the year although the former provides a steady income stream.

The equity investments include Aquila Services Group plc (the UK's largest affordable housing consultancy group) and Galileo Resources plc (a mining exploration company with assets primarily in Zambia). I remain a non-executive director of both companies.

RELATIONSHIP AGREEMENT

The Company has entered a legally binding relationship agreement with myself, its controlling shareholder, to address the requirements of LR5.3.1 of the Listing Rules.

MANAGEMENT AND TEAM

Property Management is becoming far more intensive and challenging, and I would therefore take this opportunity to thank all members of our small property team and our Joint Venture partner for their support and achievements over the year.

OUTLOOK

As I write this report the effects of the Chancellors recent budget and financial statements are still being quantified. There is no doubt that many tenants and investors withdrew from the property market over the past few months awaiting the outcome of new tax and investment policies. The cauldron of measures announced will be unhelpful to the property market. Investors and the business community will no doubt form their own conclusions over the coming months. I remain of the view that any major reductions in interest rates will take longer than anticipated.

The year ahead will have its challenges and I look forward to reporting further at the half year.

J. Richard Wollenberg

Chairman

27 November 2024

Consolidated Income Statement

FOR THE YEAR ENDED 30 SEPTEMBER 2024

These results relate entirely to continuing operations.

Consolidated statement of comprehensive income and expense

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Consolidated Balance Sheet

AT 30 SEPTEMBER 2024

Consolidated Cash Flow Statement

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Consolidated statement of changes in equity
FOR THE YEAR ENDED 30 SEPTEMBER 2024

* - Includes fair value movements on investment properties held by Campmoss Group, our Joint Venture, which are presented in investment property fair value reserve to demonstrate these are unrealised. 

Notes to the Financial Statements

FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.   Basis of preparation

The consolidated results for the year ended 30 September 2024 and 2023 are prepared in accordance with UK-adopted international accounting standards ("UK-adopted IAS") and those parts of the Companies Act 2006 applicable to companies reporting under IFRS and have been incorporated into the principal accounting policies.

The financial information set out above does not constitute the company's statutory financial statements for the years ended 30 September 2024 or 30 September 2023 but is derived from those financial statements. Statutory financial statements for 2023 have been delivered to the Registrar of Companies and those for 2024 will be delivered in due course. The auditor has reported on those financial statements; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the financial statements for 2024 nor 2023.

Going concern

The financial statements have been prepared on a going concern basis, which assumes that the Group will continue to meet its liabilities as they fall due. The Group's activities, together with the factors likely to affect its future development, performance and position are set out in the Chairman's Statement and Strategic Report. The financial position of the Group, its property portfolio under management, asset base, liquidity and key performance indicators.

The Group has sufficient financial resources to enable it to continue to trade and to complete the current maintenance and development programme. The Group is ungeared, and the cash flow forecasts do not assume any debt being required. Therefore, the Directors believe that the Group is well placed to manage its business risks successfully despite the current economic uncertainty.

The Group is in the enviable position of having significant cash balances. At 30 September 2024, the Cardiff Group had cash balances of £2.0m and a further £10.2m term deposits (generally with maturity dates of 95 days), in addition the Company has investments of £0.7m of which £0.6m are readily marketable. The Group has an operating cost base including tax and dividends of under £1.0m per annum so even with no income for a number of years the Group would remain solvent. 

The Cardiff Group receives a management fee from Campmoss of around £0.5m per annum, there is no reason to assume this income would not be received as the Campmoss Group had cash balances at 30 September 2024, of £6.3m and a further £3.1m term deposits (generally with maturity dates of 95 days).

New, revised or changes to existing financial reporting standards

Subject to the adoption of the IFRS's available for application noted below, this announcement is prepared on the basis of the accounting policies as set out in the most recently published set of annual financial statements.

IFRS

A number of new standards and amendments to standards and interpretations have been issued but are not yet effective for the current accounting period.  None are expected to have a material impact on the consolidated financial statements of the Group.

Notes to the Financial Statements

FOR THE YEAR ENDED 30 SEPTEMBER 2024 (continued)

2.   Segmental analysis

The Group manages its operations in two segments, being property and other investment and property development. Property and other investment relates to the results for The Cardiff Property Company Limited where properties are held as investment property with Property Development relating to the results of First Choice Estates Plc and Thames Valley Retirement Homes Limited. The results of these segments are regularly reviewed by the Board as a basis for the allocation of resources, in conjunction with individual site investment appraisals, and to assess their performance. Information regarding the results and net operating assets for each reportable segment are set out below:

 "Eliminations" relate to inter segment transactions and balances which cannot be specifically allocated but are eliminated on consolidation.

Notes to the Financial Statements

FOR THE YEAR ENDED 30 SEPTEMBER 2024 (continued)

3. Earnings per share

Earnings per share has been calculated in accordance with IAS 33 - Earnings Per Share using the profit after tax for the financial year of £1,071,000 (2023: £1,114,000) and the weighted average number of shares as follows:

There is no difference between basic and diluted shares as the Company has no potentially dilutive instruments in issue.

Notes to the Financial Statements

FOR THE YEAR ENDED 30 SEPTEMBER 2024 (continued)

Financial Calendar

28 November 2024            Results announced for the year ended 30 September 2024

17 January 2025               Annual General Meeting

17 January 2025               Ex-dividend date for the final dividend

18 January 2025               Record date for the final dividend

31 January 2025               Final dividend to be paid

May 2025                           Interim results for 2025 to be announced

30 September 2025           Year end

Directors and Advisers