Regulatory News

REG - Nordic Land PLC - Half Yearly Report - Part 1

Released: 16/12/2009

RNS Number : 1849E
Nordic Land PLC
16 December 2009       

Nordic Land plc

Interim Report

for the period from 1 April to 30 September 2009

CORPORATE STATEMENT

Nordic Land plc ('Nordic Land' or the 'Company', or together with its
subsidiaries, the 'Group') is a Jersey registered, property investment
company established in April 2007 to invest principally in retail real
estate in the Nordic region including Sweden, Norway and Finland. The
Manager is Lathe Investments (Nordic) LLP.

The Company's investment objective is to provide shareholders with
attractive total returns over the medium to long term through dividends and
increases in net asset value. 

The Company's shares are traded on the AIM market of the London Stock
Exchange.

HIGHLIGHTS

 · Property portfolio valued as at 30 September 2009 at £64.6 million
    (SEK 722 million) compared to £64.2 million (SEK 761 million) as at 31
    March 2009

 · EPRA NAV per share of £0.72 as at 30 September 2009 (31 March 2009:
    £0.91)

 · Net rental income for the six month period to 30 September 2009 was
    £1.9 million (30 September 2008: £1.6 million)
 · Completion of new 1,130 m2 retail warehouse unit at Borlänge, pre-let
    to Expert

( EPRA NAV per share is the Net Asset Value per share of the Group adjusted
to exclude the effect of deferred tax relating to the revaluation of
investment properties and the fair value of derivative financial instruments
net of attributable taxation). 

"The Board is encouraged by the performance of the portfolio which has
proven resilient when compared to similar portfolios in other European
countries."

                        Ray Horney, Chairman

For further information please contact:

Nordic Land plc

Ian
Knight                                   + 44 (0) 1892 752005

SP Angel Corporate Finance LLP

John Mackay                              +44 (0) 20 7647 9642

Matrix Corporate Capital LLP

Stephen Mischler                         +44 (0) 20 3206 7203

Bankside Consultants

Simon Rothschild/Oliver Winters          +44 (0) 20 7367 8888

CHAIRMAN AND MANAGING DIRECTOR'S STATEMENT

OPERATING REVIEW

We are pleased to present the interim results for Nordic Land plc for the
six months ended 30 September 2009.

RESULTS

Net rental income for the period was £1.9 million (30 September 2008: £1.6
million) and administrative expenses were £0.7 million (30 September 2008:
£0.5 million).  

After a loss of £4.3 million (30 September 2008: loss of £1.2 million)
relating to the revaluation of the investment properties, the operating loss
for the period was £3.1 million (30 September 2008: operating loss of £0.1
million).

At the period end, the Group had cash and short-term deposits of £5.6
million (30 September 2008: £5.7 million) which are available for working
capital and development activity.

 

REVALUATION AND NET ASSET VALUE

The Property Portfolio was revalued by DTZ Sweden at £64.6 million as
at 30 September 2009 (31 March 2009: £64.2 million). After allowing for
foreign exchange gains on retranslation of £3.5 million, and capital
expenditure of £1.1 million incurred during the period, the valuation
deficit was £4.3 million, largely as a result of adverse yield movements. 

Despite the valuation deficit, we are encouraged by the performance of the
portfolio, which has proven resilient when compared to similar portfolios in
other European countries. The Swedish and other Nordic markets remain
amongst the best in Europe in terms of economic stability as well as
generally low retail rents and high consumer-spend forecasts relative to
other European countries.

The EPRA net asset value per share of the Group as at 30 September
2009 was £0.72, a decrease of £0.19 per share from the 31 March
2009 EPRA net asset value per share of £0.91.

EPRA net asset value per share is an accepted property industry measure
which excludes deferred tax relating to the revaluation of investment
properties and the fair value of derivative financial instruments net of
attributable taxation.

DIVIDEND

No dividend is being proposed for the period to 30 September 2009.

REAL ESTATE OPERATIONS

Portfolio analysis

Property        Category  Area   30           Net       31 March     Net
                          (m2)   September    Valuation              Valuation
                                              yield                  yield
 
                                                         2009
                                  2009                  Valuation
                                 Valuation     %                      %
 
Terminalen      Mixed-use 19,500 £46.1 m      6.18%     £46.4 m      5.87%
1, Helsingborg
 
                                 SEK 515 m              SEK 550 m
 
Lackeraren 3,   Retail    11,000 £13.9 m      6.81%     £13.0 m      6.56%
Borlänge        park
 
                                 SEK 155 m              SEK 154 m
 
Sicklaön        Retail    3,500  £4.6 m       7.51%     £4.8 m       6.88%
117, Stockholm
 
                                 SEK 52 m               SEK 57 m
 
Total                     34,000       £64.6                  £64.2
                                       m                      m
 
                                       SEK                    SEK
                                       722m                   761m
 
The SEK/GBP exchange rate as at 30 September 2009 was 11.182 (31 March
2009: 11.85).

All the properties are located in Sweden. 

The reduction in values this September is largely attributable to an outward
movement in valuation yields. 

PROPERTY REVIEW

Swedish Property Market

For many years Sweden has been one of the most liquid property markets
in Europe, with on average some SEK 130-150 billion p.a. in transaction
volume. 

However, throughout the period under review, the investment market has been
extremely quiet. There are three main factors which have contributed to
this.

The most obvious factor is the very strained debt market that is either
unable or unwilling to lend money on property assets. The situation has
started to improve recently, but we are still a long way from a normal debt
market. 

The second factor is the large decline in property prices throughout Europe,
 especially in the UK and in the Baltic countries. Sweden has not seen
such dramatic falls in values, as a result of which international investors,
who in normal times represent between 30-50% of transactions in Sweden, are
tending to look to Europe for bargains with a perceived greater upside. This
has had a significant effect on the liquidity of the Swedish property
market. When compared to a year ago, foreign investment volume has decreased
by almost 90%.

 

The third reason has been the deteriorating demand for property generally,
which makes potential buyers very conservative in their value assessments.
At the same time, property owners are reluctant to sell at low prices at
this stage of the cycle, since cash flows are still strong due to low
interest rates and relatively stable rents.

The first three quarters of 2009 show a transaction volume of SEK 22.5
billion, which is an 85% decrease compared to the same period in 2008. There
are some signs of improvement, but investors are still very selective and
there is a long way to go before activity is back to normal. 

Nordic Land's Portfolio

Nordic Land's assets comprise Terminalen 1 in Helsingborg, known as
'Knutpunkten', which is a regionally-important, mixed-use, retail and
transport hub serving the west coast of Sweden and Denmark, a
prime-located retail and office park in Borlänge and a multi-let retail
property in an affluent part of Greater Stockholm.

The portfolio is currently well secured on 106 tenants, of which 73% are
municipalities and national multiples, including market leaders such as
Willy:s, Rusta, Scandlines, Sportex, Espresso House, Expert, McDonald's, the
City of Helsingborg and Banverket (the state-owned railway company). 

Retail leases in Sweden are typically fairly short, at between three and
five years, although terms may be longer (up to 10 years), particularly on
new lettings of larger retail boxes. It is commonplace for retailers to have
the right to renew their leases. Rents are annually indexed to the Consumer
Price Index every new year.

The quality and size of the tenant base is important to us in terms of
providing a diversified cashflow as well as opening up multiple prospects
for adding value on lease renewals.  

Each of the Group's properties provides a range of profitable asset
management and development opportunities, which we expect to convert into
increases in cashflow and, ultimately, net asset value per share. 

Terminalen 1, Helsingborg, (known as 'Knutpunkten')

Helsingborg is a major port city in south-west Sweden, opposite Denmark.
The property itself is in central Helsingborg, unique for the area's
transportation systems, serving rail, road, ferry and bus routes, and in a
prime office location.

The building was constructed in 1991 and is the region's central transport
terminal. 

Knutpunkten comprises the terminal area (which provides ticket sales,
waiting halls and a passenger link to the main Sweden to Denmark ferry
terminal), a shopping centre with a number of restaurants above, and offices
in the 5-6 levels above. The total area is some 19,500 m².  

Within the building are the main, west-coast-line, railway station and the
town's main bus terminal, both of which the Group owns.

The property also has a multi-storey, roof-top car park (303 spaces) and a
surface roof-top car park (399 spaces), which benefit from being directly
adjacent to the ferry and train terminals and which together provide a
strong income stream.

In total there are currently some 91 tenants.

The South Harbour area, directly to the south of the property, is expected
to be redeveloped into a major 'docklands-style' development (called 'H+'),
comprising 1,000,000 m2 of land to cater for living, working, studying and
leisure facilities.  

Knutpunkten is the 'gateway' property by virtue of its location and hosting
of the major transport links. In itself, it will be an essential part of the
H+ scheme. 

In addition to the H+ project, the railway will in the future be underground
and connect to new high-speed rail links. The construction of the railway
tunnel is estimated to start in early 2012, for completion in 2017.  

This gives Nordic Land the opportunity to become significantly involved
in the development of this area, and to take advantage of the valuable
opportunities that should arise. We are particularly encouraged by our
ongoing meetings with officials of the Municipality, and are now fully
involved in the Municipality's H+ project team alongside other key
landholders. 

With regard to our asset management work, we have installed energy-efficient
equipment and are implementing an energy-saving programme, with the
intention of saving costs, thereby increasing net operating income and, as a
result, the valuation.

We have upgraded the lifts, which were in need of repair and renewal, and
are now replacing and repositioning the escalators so as to improve people
circulation and to create more valuable space within the building. 

We have completed plans with our architects for a new, vibrant, restaurant
area at first floor level, and, potentially, new offices above. 

Lackeraren 3, Borlänge 

Borlänge is a major regional town 120 km to the north-west of Stockholm,
with large corporate employers and a strong local economy. The property
itself is located next to the regionally-dominant Kupolen Shopping Centre. 

The property comprises a prime retail and office park with four large retail
units and servicing areas, two free-standing office buildings, all of some
11,000 m², plus a 327-space surface car park. 

The income is well secured by major national retailers including Willy:s,
Rusta and Expert.

Over the last six months we have built a new 1,130 m² retail unit, which we
pre-let to Expert, a major Swedish electrical retailer, and acquired
additional land so as to meet the required car parking standards. This
project was completed on time and below budget.

The development profit of approximately £915,000 is reflected in the
current valuation.

We are very pleased to have achieved this result, and to have further
improved the tenant mix at the property. We are now exploring the
possibility of extending the retail and office areas and acquiring adjacent
land to enlarge the car park area.

Potentially adding to the quality of the scheme and its location, the
Municipality recently announced that IKEA will establish a new
35,000 m2 store next to the Kupolen Shopping Centre. We expect this new
store to open in 2012, and to be a major draw to the immediate vicinity. 

Sicklaön 117, Nacka, Stockholm

The property is well-located in the Sickla shopping quarter which, as the
main retail location for the Nacka community, generates some of the
highest sales per square metre in Sweden. This area is amongst the most
affluent regions in Sweden, featuring high per capita income and strong
population growth. New retail developments and car parking facilities have
recently been completed adjacent to the building, and a new road connection
is being planned.

The property comprises 3,500 m² of retail, storage and office accommodation
in one building, predominantly let to national multiple retailers, plus a
villa and land for re-development.  

In the shorter term, we have a number of asset management initiatives in
hand, including improvement to the retail elements and a property cost
reduction programme so as to increase net operating income.

In the medium term, the site itself has high development value as and when
the market improves.

REAL ESTATE FINANCING

As at 30 September 2009 the Group's borrowings totalled £53.6 million (31
March 2009: £49.7 million) all secured on the Group's properties. Total
borrowings are now SEK 602.7 million (31 March 2009: SEK 592.7 million)
after a SEK 10 million drawdown (£0.9 million) to fund the construction of
the Expert unit development. Otherwise, the increase in the sterling
equivalent of the borrowings is due to exchange losses on revaluation.

Previously we had reported that there was some doubt as to whether the
capital expenditure facility with the lender existed. Since then, the
availability of the capital expenditure facility has been confirmed and we
have been able to drawdown SEK 10 million, as mentioned above. However, the
capital expenditure facility expires at the end of this year. Future capital
expenditure will therefore be funded out of existing cash resources.

OUTLOOK

We are pleased with the progress we have made during the period under
review, in particular with completing the development at Borlänge for a
profit, and joining the important working group to enhance value at
Helsingborg. 

RAY HORNEY            IAN KNIGHT

CHAIRMAN                MANAGING DIRECTOR

15 December 2009

   Condensed Consolidated Statement of Comprehensive Income for the six
months ended 30 September 2009

                         Six months to 30   Six months to 30   Year ended 
                         September          September
 
                                                                31 March 
                          2009               2008
 
                                                               2009
                         (unaudited)        (unaudited)
 
                                                               (audited)
 
                  Note   £000               £000               £000
 
Gross rental             2,632              2,519              5,122
income
 
Property                 (752)              (908)              (1,723)
operating
expenses
 
Net rental income        1,880              1,611              3,399
 
Administrative           (670)              (528)              (1,238)
expenses
 
Loss on revaluation of   (4,308)            (1,187)            (3,721)
investment properties
 
Operating loss           (3,098)            (104)              (1,560)
 
Financial income  5      5                  125                191
 
Financial         6      (1,446)            (1,446)            (2,862)
expenses
 
Change in fair value of
derivative financial
 
 Instruments             -                  (203)              (272)
 
Loss before              (4,539)            (1,628)            (4,503)
income tax
 
Income tax        7      962                151                700
 
Loss for the
period
attributable to
equity
shareholders           (3,577             (1,477)            (3,803)
 
Other
comprehensive
income/(loss)
 
Foreign currency         738                (973)              (178)
translation
differences
 
Total other
comprehensive
income/(loss) for
the period               738                (973)           (178)
 
Total
comprehensive
income/(loss) for
the period               (2,839)            (2,450)         (3,981)
 
Earnings per      8      (18.0)p            (7.6)p          (19.4)p
share - basic and
diluted
 
EPRA earnings per 8      (1.2)p             (1.3)p           (2.6)p
share - basic and
diluted
 
All results are derived from continuing operations.

The notes form part of these condensed consolidated interim financial
statements.

Condensed Consolidated Statement of Financial Position as at 30 September
2009

                     30 September 2009   30 September 2008   31 March 
 
                     (unaudited)         (unaudited)         2009
 
                                                             (audited)
 
                Note £000                £000                £000
 
ASSETS
 
Non-current
assets
 
Investment      9    64,568              63,281              64,203
properties
 
Derivative      10   -                   69                  -
financial
instruments
 
                     64,568              63,350              64,203
 
Current assets
 
Trade and other 11   225                 360                 378
receivables
 
Cash and cash   12   5,638               5,702               5,336
equivalents
 
                     5,863               6,062               5,714
 
Total assets         70,431              69,412              69,917
 
LIABILITIES
 
Current
liabilities
 
Trade and other 13   2,498               2,101               2,154
payables
 
Income tax           22                  14                  19
provision
 
                     2,520               2,115               2,173
 
Non-current
liabilities
 
Borrowings      14   53,616              47,332              49,696
 
Deferred tax    15   452                 1,865               1,403
liability
 
                     54,068              49,197              51,099
 
Total                56,588              51,312              53,272
liabilities
 
Net assets           13,843              18,100              16,645
 
EQUITY
 
Ordinary share       199                 199                 199
capital
 
Share premium        17,523              17,523              17,523
 
Foreign              2,597               1,064               1,859
currency
translation
reserve
 
Retained             (6,476)             (686)               (2,936)
earnings
 
Total                13,843              18,100              16,645
shareholders'
equity
 
Net asset value 16   £0.70               £0.91               £0.84
per share -
basic and
diluted
 
EPRA net asset
value per share
- basic and
diluted         16   £0.72               £1.00               £0.91
 
The notes form part of these condensed consolidated interim financial
statements.

  Condensed Consolidated Statement of Changes in Equity for the six months
ended

30 September 2009 (unaudited)

                   Ordinary                                                                                                          
                    Share           Share                   Translation        Retained                   Total
                   Capital           Premium                Reserve             Earnings                   Equity
                   £000            £000                    £000              £000                       £000                 
                                                                                                                                       
Balance at 1                                                                                                                          
April 2008                 192          17,059                 2,037        1,258                        20,546
Total                                                                                                                                 
comprehensive
income/(loss) for
the period                                                                                              
Loss for the                                                                                                                           
period             -                 -                         -                   (1,477)                (1,477)
Other                                                                                                                                 
comprehensive
income/(loss) for
the period                                                                                                      
Foreign exchange                                                                                                                       
differences        -                 -                         (973)               -                       (973)
Total                                                                                                                                 
comprehensive
income/(loss)
for the period         -             -                     (973)                 (1,477)            (2,450)
Transactions with                                                                                                                     
owners, recorded
directly in
equity                                                                                                          
Share-based                                                                                                                            
payments           -                 -                         -                   (467)                  (467)
Ordinary shares                                                                                                                        
issued at a
premium            7                 464                       -                   -                            471
Total                                                                                                                                 
transactions with
owners                  7                           464             -                               (467)            4
Balance at 30                                                                                                                         
September 2008       199           17,523          1,064                (686)          18,100
                                                                                                                                       
Total                                                                                                                                 
comprehensive
income/(loss) for
the period                                                                                              
Loss for the                                                                                                                           
period             -                 -                         -                   (2,326)                      (2,326)
Other                                                                                                                                 
comprehensive
income/(loss) for
the period                                                                                                      
Foreign exchange                                                                                                                       
differences        -                 -                         795                 -                            795
Total                                                                                                                                 
comprehensive
income/(loss)
for the period         -             -                     795                   (2,326)            (1,531)
Transactions with                                                                                                                     
owners, recorded
directly in
equity                                                                                                          
Share-based                                                                                                                            
payments           -                 -                         -                   76                           76
Total
transactions with
owners                  -                 -                         -                         76               76
Balance at 31
March 2009            199           17,523                1,859                 (2,936)            16,645
                                                                                                                                       
Total                                                                                                                                 
comprehensive
income/(loss) for
the period                                                                                                      
Loss for the                                                                                                                           
period             -                 -                         -                   (3,577)                      (3,577)
Other                                                                                                                                 
comprehensive
income/(loss) for
the period                                                                                                      
Foreign exchange                                                                                                                       
differences        -                 -                         738                 -                            738
Total                                                                                                                                 
comprehensive
income/(loss)
for the period         -                       -           738                         (3,577)      (2,839)
Transactions with                                                                                                                     
owners, recorded
directly in
equity                                                                                                          
Share-based                                                                                                                            
payments           -                 -                         -                   37                           37
Total                                                                                                                                 
transactions with
owners                -                       -           -                     37                   37
Balance at 30                                                                                                                         
September 2009        199                     17,523      2,597                 (6,476)            13,843

The notes form part of these condensed consolidated interim financial
statements.

  Condensed Consolidated Statement of Cash Flows for the six months
ended 30 September 2009


                                                Six months to  Year ended   
                              Six months to 30 30 September    31 March      
                              September 2009   2008           2009          
                            (unaudited)     (unaudited)   (audited)    

                     Note £000            £000          £000         

                                                                     

Cash flows from                                                               
operating activities                                                  

Loss for the period       (3,577)         (1,477)       (3,803)      

Interest receivable           (5)           (125)        (191)          

Interest payable and                                                           
other finance costs       1,446             1,446        2,862          

Income tax                 (962)             (151)       (700)          

Adjustments for                                                             
non-cash items:                                                             

Loss on revaluation of                                                      
investment properties      4,308            1,187         3,721   

Change in fair value of                                                     
derivative financial                                                        
instruments                  -                203           272     

Share-based payments         37               -             77      

Operating profit before                                                     
changes in working                                                          
capital                   1,247            1,083         2,238   

Other movements arising from                                                    
operations:                                                                     

 Decrease/(increase)                                                         
in trade and other                                                             
receivables                152               (8)         (15)           

                                                                               
Increase/(decrease) in                                                         
trade and other                                                                
payables                  296               (697)        (634)          

   Tax paid               (3)               -            -              

Net cash generated                                                         
from operations            1,692        378       1,589 

Interest received            5                 135       203            

Interest paid             (1,424)           (1,329)      (2,760)        

                                                            

Net cash flows                                                             
from/(used in)                                                              
operating activities         273          (816)     (968) 

                                                                             

Cash flows used in                                                            
investing activities                                                          

Acquisition and                                                                
development of                                                                 
investment properties       (1,137)      (101)     (486)          

Cash flows used in                                                         
investing activities        (1,137)      (101)     (486) 

                                                                             

Cash flows from                                                               
financing activities                                                          

Net drawdown of                                                                
borrowings                    894         -          -              

Cash flows from                                                            
financing activities          894          -         -     

Net                                                                           
increase/(decrease) in                                                         
cash and cash                                                                
equivalents                    30          (917)         (1,454)      

                                                                             

Opening cash and cash                                                         
equivalents                  5,336         6,838         6,838          

Exchange gains/(losses)                                                        
on cash balances              272          (219)         (48)           

Closing cash and cash                                                      
equivalents             12   5,638        5,702         5,336 


The notes form part of these condensed consolidated interim financial
statements.

Notes to the condensed consolidated interim financial statements

Note 1 General Information

Nordic Land plc (the "Company") is a Jersey incorporated company which
invests principally in retail property in the Nordic region. The Company was
incorporated on 3 April 2007.

The condensed consolidated interim financial statements for the Company and
its subsidiaries (together referred to as the 'Group') have been prepared as
at 30 September 2009 and for the six month period then ended. The
condensed consolidated interim financial statements, which do not represent
statutory accounts, have not been audited.

The unaudited condensed consolidated interim financial statements were
authorised for issuance on 15 December 2009.

Note 2 Basis of preparation

These condensed consolidated interim financial statements have been prepared
in accordance with IAS 34 Interim Financial Reporting. They do not include
all of the information required for full annual financial statements, and
should be read in conjunction with the consolidated financial statements of
the Group as at and for the year ended 31 March 2009.

The preparation of condensed consolidated interim financial statements
requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of
assets and liabilities, income and expenses. The estimates and associated
assumptions are based on historical experience and various other factors
that are believed to be reasonable under the circumstances, the results of
which form the basis of making the judgements about carrying values of
assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as
those applied to the consolidated financial statements as at and for the
year ended 31 March 2009. Information about significant areas of estimation,
uncertainty and critical judgements in applying accounting policies that
have the most significant effect on the amounts recognised in the condensed
consolidated interim financial statements is included in the following
notes:

Note 9 - Investment properties

Note 14 - Borrowings

The condensed consolidated interim financial statements have been prepared
on the historical cost basis modified for the revaluation of investment
properties and derivative financial instruments which are both measured at
fair value. 

The consolidated financial statements have been prepared on a going concern
basis which assumes the Group will be able to meet its liabilities as they
fall due. The Group's working capital forecasts show that the Group has
sufficient cash resources to meet its funding requirements over the next 12
months and to continue in operational existence for the foreseeable future.

Note 3 Significant Accounting Policies

The interim financial statements have been prepared following the same
accounting policies as adopted in the most recent set of annual financial
statements for the year ended 31 March 2009. Where accounting policies
differ from policies previously adopted, they are stated and explained
below. 

During the period two new accounting standards, IAS 1 "Presentation of
financial statements (revised)" and IFRS 8 "Operating Segments" have been
adopted. The adoption of these standards has had no impact on the financial
statements, other than on presentation and disclosure.

Basis of consolidation

The condensed consolidated interim financial statements incorporate the net
assets and liabilities of the Group at the statement of financial position
date and its results for the period then ended. Results of subsidiaries
acquired or disposed during a period are included from the effective date of
acquisition or up to the effective date of disposal as appropriate. The
results of subsidiaries are included in the condensed consolidated interim
financial statements from the date that control commences up to the date
that control ceases. Control exists when the Company has the power, directly
or indirectly, to govern the financial and operating policies of an entity
so as to obtain benefits from its activities.

All intra-group transactions, balances, income and expenses are eliminated
on consolidation.

A change in the ownership interest of a subsidiary, without a change in
control, is accounted for as an equity transaction.

Functional and presentational currency

Items included in the financial statements of each of the Group's entities
are measured using the currency of the primary economic environment in which
the entity operates (the 'functional currency'). The Group's condensed
consolidated interim financial statements are presented in sterling, which
is also the parent company's functional and presentational currency.

Note 4 Operating segments

During the period the Group operated in one business segment, being property
investment and development in the Nordic region and as such no further
segmental information is required.

Note 5 Financial income

                    Six months      Six months      Year ended
                    to 30           to 30
                    September 2009  September 2008
 
                                                    31 March 2009
 
                    £000            £000            £000
 
Interest receivable    5             125             191
 
Note 6 Financial expenses

                        Six months     Six months     Year ended
                        to 30          to 30
                        September      September
                        2009           2008
                                                      31 March 2009
 
                        £000           £000           £000
 
Interest on bank loans  1,391          1,390          2,749
 
Other finance costs        55             56            113
 
Interest payable and    1,446          1,446           2,862
other finance costs
 
Note 7 Income tax

            Six months to       Six months to       Year ended 31 March
                                                    2009
 
            30 September 2009   30 September 2008
 
            £000                £000                £000
 
Current     5                   5                   10
income tax
charge
 
Deferred    (967)               (156)               (710)
taxation
 
Tax credit  (962)               (151)               (700)
 
Note 8 Earnings per share

Earnings per share and EPRA earnings per share have been calculated, using
the weighted average number of shares in issue during the period of
19,859,561 (30 September 2008: 19,405,333; 31 March 2009: 19,645,000) as
follows:

_ _          Six        Six        Six        Six        Year     Year
             months to  months to  months to  months to  ended    ended
             30         30         30         30         31       31 March
             September  September  September  September  March    2009
             2009      2009      2008      2008      2009    Earnings
             Loss      Earnings  Loss      Earnings  Loss    per
             after      per        after      per        after    share
             tax        share      tax        share      tax
           £000      pence     £000      pence     £000    pence
                                                            
Loss for the
period       (3,577)     (18.0)p     (1,477)     (7.6)p      (3,803)   (19.4)p
                                                                        
Loss on
revaluation
of
investment
properties   4,308       21.7p       1,187       6.1p        3,721     18.9p
Change in
fair value
of
derivative
instruments  -           -           203         1.0p        272       1.5p
Deferred tax
on
revaluation
of
investment
properties   (967)       (4.9)p      (156)       (0.8)p      (710)     (3.6)p
                                                                              
EPRA loss    (236)       (1.2)p      (243)       (1.3)p      (520)     (2.6)p
                                                                              

Basic and diluted earnings per share are the same, as the issued share
options are currently anti-dilutive.

EPRA earnings per share, excluding the loss on revaluation of investment
properties, the change in fair value of derivative financial instruments and
exceptional items, all net of attributable taxation, is an accepted property
industry measure for reporting recurring profits.

Note 9 Investment properties

                   As at               As at               As at
 
                   30 September        30 September        31 March 
 
                   2009                 2008               2009
 
                   £000                £000                £000
 
Opening balance    64,203              67,878              67,878
 
Capital            1,137               101                 486
expenditure on
properties
 
Foreign exchange   3,536               (3,511)             (440)
gains/(losses)
 
Loss on            (4,308)             (1,187)             (3,721)
revaluation
 
Closing balance    64,568              63,281              64,203
 
        

The fair value of investment properties is based on a valuation at 30
September 2009 by DTZ Sweden AB performed in accordance with the Appraisal
and Valuation Standards of RICS, on the basis of market value.

Note 10 Derivative financial instruments

               As at                 As at                 As at
 
               30 September          30 September          31 March
 
               2009                   2008                 2009
 
               £000                   £000                  £000
 
Derivative       -                     69                     -
financial
instruments
 
Note 11 Trade and other receivables

             As at                 As at                 As at
 
             30 September          30 September          31 March 
 
             2009                   2008                 2009
 
             £000                  £000                  £000
 
Rental       25                    208                   281
debtors
 
Prepayments  93                    134                   97
and accrued
income
 
Other        107                   18                    -
debtors
 
             225                   360                  378
 
        

The carrying amount of trade and other receivables approximate their fair
value.

Note 12 Cash and cash equivalents

               As at                 As at                 As at
 
               30 September          30 September          31 March
 
               2009                   2008                 2009
 
               £000                  £000                  £000
 
Cash and cash 5,638                 5,702                 5,336
equivalents
 
Cash and cash equivalents comprise cash held by the Group and short-term
deposits with an original maturity of three months or less. The carrying
value of these assets equals their fair value.

Note 13 Trade and other payables


                      As at         As at         As at          
                      30 September  30 September  31 March       
                      2009           2008         2009           

                      £000          £000          £000           

                                                                       

Accounts payable –                                                     
trade                 342             145             329              

Deferred income       1,128           1,003           879              

Accruals              922             832             926              

Other creditors       106             121             20               

                    2,498           2,101           2,154       

The Directors consider that the carrying amount of trade and other payables
approximate to their fair value.

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