RNS Number:1901J
Ishaan Real Estate PLC
05 December 2007
Ishaan Real Estate plc
Interim Report
For the six months ended 30 September 2007
Highlights
? 100% of investment in the initial portfolio completed. ?133.2 million
invested in eight projects across Mumbai, Hyderabad, Pune and Bangalore.
? Adjusted NAV per share* increased 31% to 146.85p as at 30 September
2007. Reported NAV per share at 96.23p.
? Initial portfolio increases in value to ?601million, giving an increase
of 12% after adjusting for development expenditure.
? 15 % increase in the estimated area for development of the Initial
Portfolio from 15.3 million sq.ft. to 17.6 million sq. ft. as a result of
strong demand.
? 1.8 million sq ft of pre-letting secured (including 0.9 million sq ft
under option) representing 11% of the increased estimated let table area of
the initial portfolio. Rentals in line with or ahead of expectations.
Since September 2007
? Additional investment of ?26.2 million made in an IT SEZ project in Navi
Mumbai
Ian Henderson, Chairman of Ishaan, said "We are pleased with the progress made
on the asset portfolio since the IPO last year. Investment in the initial
portfolio has been completed in line with the objectives set out during the IPO
and we are delighted to have announced the new investment in the Navi Mumbai
project. We are encouraged by the letting activity for these projects and the
ongoing progress being made in their construction. The increased Adjusted NAV
reflects the robust demand for our properties and the evidence of strong
fundamentals of the Indian real estate market. We are delighted to have such
high quality assets in the Ishaan portfolio and will continue to work with our
development advisers to progress the successful delivery of these exciting
projects".
* Reported NAV per share is not considered the best method of evaluating
performance as it excludes any valuation surpluses attributable to the
investments. Adjusted NAV per share includes investments at current valuations
in proportion to the Group's shareholdings.
Contacts:
M:Communications
Edward Orlebar +44 20 7153 1523
Charlotte McMullen +44 20 7153 1549
Chairman's Statement
I am pleased to report the Group's results for the six months ended 30 September
2007.
Portfolio
We have now completed the entire investment of ?133.2 million in the Initial
Portfolio comprising eight projects across Mumbai, Hyderabad, Bangalore and
Pune.
During the period under review, the Company acquired 40% stakes in Sundew
Properties Private Limited, Intime Properties Private Limited and Genext
Hardware and Parks Private Limited, the SPV developing Vivarea, the premium
residential project in central Mumbai for a total consideration of ?56.9
million.
Details of Investments made by Ishaan in the initial portfolio are given below:
Project SPV Investment at 31/03/07(?m) % shareholding Up to Shareholding
at 31/03/07 30/09/07 (?m) at 30/09/07#
Inorbit Trion 23.9 40% 23.9 40%
Mindspace Serene 38.6 40% 38.6 40%
Mindspace Sundew - 26.0 40%
Mindspace Intime - 10.7 40%
Commerzone Magna 13.9 40% 13.9 40%
Vivarea Genext - - 20.2 40%
Total 76.4 - 133.2 -
Investment as
a % of initial
portfolio 57% 100%
# includes future conversion rights of Ishaan
Since the period end, the Company has made an investment in an IT SEZ (Special
Economic Zone) in Navi Mumbai, on which a development of up to 4.5 million sq ft
of commercial space is planned. Ishaan has acquired a 40% stake in the SPV
developing this property, Newfound Properties and Leasing Private Limited
("Newfound"), for a consideration of ?26.2 million.
Navi Mumbai is a satellite city of Mumbai, located approximately 35 kilometres
from central Mumbai. This project site is in an area undergoing significant
regeneration, and is close to existing and planned transport systems, the city
centre of Navi Mumbai and large residential areas. This investment is consistent
with Ishaan's objective to invest in a portfolio of high quality, strategically
positioned assets across India.
This investment increases our total investment in the Indian real estate
development projects to ?159.4 million from ?133.2 million. We expect to further
invest approximately ?23 million of additional funds to complete the investment
objectives set out at the time of the admission.
Results for the six months ended 30 September 2007
Loss before tax for the period amounted to ?546,000, arising from investment
advisory fees and provision for promote fees payable to the investment adviser,
offset by interest income on deposits held, pending investment in development
projects. Cash funds at the period end amounted to ?67.1 million, of which ?26.2
million has since been used to invest in Newfound Leasing and Properties Private
Limited
Valuation
The properties in the Initial Portfolio have been valued by Cushman & Wakefield
(India) Pvt. Limited at 30 September 2007. I am pleased to report that the
updated valuation of the entire initial portfolio shows an increase of ?77
million to ?601 million, giving an uplift of approximately 12% since 31 March
2007, after adjusting for expenditure incurred in the period to 30 September
2007, of this increase 5% is due to currency translation gains. In accordance
with our accounting policies this valuation is not reflected in our balance
sheet as our investments are carried at cost on a pro rata basis. A 40% interest
in these properties is now valued at ?241 million, against ?210 million at 31
March 2007 and ?178 million as at Admission.
This increase in value has largely been driven by a buoyant real estate market
and more efficient development plans that have contributed to an increase in
areas for development as well as the progress achieved on existing sites.
A comprehensive review of all projects in the initial portfolio has been
undertaken. Based on this review, certain projects have been expanded and the
schedules revised. These revisions have been taken into account in the
valuation.
Net Asset Value per Share
The net asset value per share is 96.23p at 30 September 2007. The net asset
value per share is calculated based on the group's net assets of ?199.2 million
at the period end divided by the number of shares in issue at the balance sheet
date of 207 million shares.
The adjusted net asset value per share is 146.85p at 30 September 2007. The
adjusted net asset value per share is calculated by adjusting the group's net
assets of ?199.2 million at the period end to reflect the fair value of the
properties held by the Group's investment in its associates as determined by
Cushman & Wakefield (India) Pvt Ltd in proportion to our shareholding. The
Group's adjusted net assets are ?304 million after allowing for an increase in
the value of the properties as if they were held at fair value by ?104.8
million. The adjusted net asset value per share of 146.85p is therefore
calculated using adjusted group net assets of ?304 million divided by the number
of shares in issue at 30 September 2007 of 207 million shares. A further
adjustment has been made to eliminate a provision required under IFRS to provide
for the cost of the land for the Vivarea project, which is being paid for by
constructing the agreed built up area for the vendor of the land. The costs of
construction of the agreed area have been provided for in arriving at the
valuation prepared by our valuers. On the basis that the accounting policy for
properties under development is to hold them at cost, adjusted net asset value
per share does not represent a measure that is extracted directly from the
Group's accounts.
Dividend
In accordance with the dividend policy set out in the Admission Document, which
stated that it was not anticipated that dividends would be paid in the
foreseeable future, as initially the projects are and will be highly capital
intensive, the Board is not declaring a dividend this period. The Board will
consider the payment of dividends when it becomes commercially prudent to do so.
Project Progress
Overall progress on the projects in the initial portfolio has been good.
A substantial increase is planned in the area for development in certain
projects backed by the strong demand for these properties. The aggregate area
for development in the initial portfolio is planned to be increased to
approximately 17.6 million sq. ft., a 15% increase over the 15.3 million sq. ft.
of area originally planned.
Pre-lettings in the projects under the Initial Portfolio have been progressing
well. An aggregate area of approximately 1.8 million sq. ft. (including 0.9
million sq. ft. under option) has been pre-let out of the aggregate increased
lettable area of approximately 16 million sq. ft. The aggregate area that has
been pre-let now represents 11% (including 6% under option) of the increased
lettable area. Rentals for the lease pre-lets signed to date are in line with
expectations and in certain cases significantly higher than those estimated at
the time of admission in November 2006.
The overall average construction cost per square foot is estimated to increase
in the range of 5-10% largely on account of higher cost for green buildings,
significant upgrading of the Vivarea residential project, higher interest cost
and extension of completion dates of projects. However these costs should be
more than offset by the anticipated increase in development areas and rentals
that have been established so far.
Progress on the individual projects included in the Initial Portfolio is as
follows:
Mindspace IT parks in Navi Mumbai and Hyderabad
Airoli, Navi Mumbai
Located in Airoli, Navi Mumbai, a satellite city of Mumbai, this project
involves development of a 3.9 million sq. ft. IT Park. The project is currently
progressing ahead of schedule, with construction work in progress on five of the
proposed thirteen buildings.
Pre-lettings with large multinational and IT/ITES companies have been secured
for approximately 650,000 sq. ft., representing 17% of the area planned for
development. Rentals are in line with and in some cases higher than those
anticipated at the time of Admission. Being a prime location in proximity to
transport systems and residential areas, the demand for this property is strong
and negotiations are in progress with various other multinational and IT/ITES
companies for further pre-letting.
Hyderabad
This project is located in Pocharam, east of Hyderabad, an upcoming nucleus of
development in proximity to proposed transport systems. The project is a 3.8
million sq. ft. SEZ IT Park. Construction of two of the twelve buildings has
begun ahead of schedule, with excavation work nearing completion for one of the
buildings and super-structure work having commenced on the other.
Mindspace IT parks in Cyberabad, Hyderabad (Sundew and Intime)
The Mindspace IT parks to be developed by Sundew and Intime are on adjacent
plots in Cyberabad, a district of Hyderabad in southern India.
Sundew development
At the Sundew Mindspace IT Park, a substantial increase in the development area
is planned driven by strong demand for this property. The estimated increase in
area for development is approximately 1.7 million sq. ft., a 59% increase over
the originally planned development of 2.9 million sq. ft. The revised area for
development is now estimated to be approximately 4.6 million sq. ft. This
increase is expected to significantly augment the returns on this project.
Pre-letting has been secured with a large multinational consulting firm for
approximately 540,000 sq. ft. (12% of the revised development area), at rentals
higher that those estimated at the time of admission.
Super-structure work is in progress in one of the buildings, excavation work is
underway in another and sub-structure work is on going in a third. The increase
in the size of the development is expected to extend the project completion date
by approximately 18 months.
Intime development
Similar to the Sundew Mindspace IT Park development, the area for development is
planned to be increased by approximately 0.3 million sq. ft., a 22% increase
over the original development of 1.4 million sq. ft.
A letter of Intent has been signed with a multinational offshore consulting firm
for the letting of 246,000 sq. ft. (15% of the revised development area).
Construction work is on schedule with super-structure work in progress on one
building and excavation and sub-structure work on the other two buildings.
Inorbit shopping malls in Pune and Hyderabad (Trion)
Hyderabad
This mixed use development consists of plans to develop a 668,000 sq. ft.
shopping centre with 298,000 sq. ft. of commercial space and 1,000 car spaces,
aggregating 966,000 sq. ft. of planned development.
The area planned for development in Hyderabad is estimated to increase by
approximately 110,000 sq. ft. to 1.08 million sq. ft., an increase of 12% over
the originally planned development.
This increase in the size of the development is expected to result in extension
of the project completion to Q1 2009. Sub-structure and super-structure work is
in progress.
Letters of Intent have been signed for pre-letting of 261,000 sq. ft.,
representing 34% of the revised retail space planned for development.
Pune
This mixed use development consists of plans to develop a 489,000 sq. ft.
shopping centre with 195,000 sq. ft. commercial space and 800 car spaces in the
city of Pune in western India.
Project completion is likely to be extended approximately twelve months mainly
on account of a delay in receiving the necessary permissions for the development
to proceed. All these permissions have now been obtained and demolition of the
existing structures on the site and excavation work for the shopping centre has
been completed.
Letters of Intent have been signed for pre-letting of 89,000 sq. ft.,
representing 18% of retail space planned for development.
Vivarea, Mumbai
This premium residential development in central Mumbai was planned to involve
development of a total area of around 1.1 million sq ft constituting over 400
residential apartments in four towers, of which Genext's saleable area is
approximately 0.75 million sq. ft.
The aggregate area for development is now estimated to increase to approximately
1.5 million sq. ft. of which Genext's saleable area will be is approximately
0.86 million sq. ft., a 15% increase over the previous saleable area. Further,
one of the residential towers is being considered for conversion into commercial
use and there have been significant upgrades to the project's structure (such as
an increase in floor height and construction of a podium) and amenities with the
object of obtaining higher sale values.
These changes to the project designs and plans mean that project completion is
now expected to be extended by a quarter. However these changes are also
expected to considerably enhance the returns Ishaan will receive from its
investment in the Vivarea project.
Pre-launch sales of the apartments began at the end October 2007 and has
evidenced strong demand.
Sub-structure work is now in progress in the three residential towers.
Commerzone IT park, hotel and retail, Bangalore (Magna)
The project site is located at Whitefield, Bangalore with a proposal to develop
a 250 room hotel and 150 serviced apartments, a shopping centre and an IT Park,
with a total area of approximately 900,000 sq. ft. The project is being designed
by Smallwood, Reynolds, Stewart & Stewart.
With a view to enhancing returns, the aggregate area for development is planned
to be increased by approximately 120,000 sq. ft, a 13% increase over the
originally estimated development. This has necessitated changes to the designs,
plans and project schedule, resulting in an extension to the planned completion
date by approximately twelve months.
Excavation work at the project site is in progress and discussions are at an
advanced stage with a major hotel operator for the management of the hotel.
Financing
Necessary financing for the Indian SPVs needed to date has been arranged. Since
admission, interest rates in India have increased substantially. Our Indian SPVs
have obtained borrowings at interest rates in the region of an initial 12% p.a.,
albeit this is marginally above the rates anticipated at the time of the IPO.
Future debt rates will depend on the level of bank lending rates in India. All
building contracts placed to date have been in line with projected cost
estimates at admission.
Special Economic Zones (SEZ)
All SEZ projects in the initial portfolio (Mindspace - Airoli, Navi Mumbai,
Mindspace - Hyderabad (SEZ development) and Mindspace - Pocharam, Hyderabad),
have been approved and notified as SEZs. The IT Park in Juinagar, Navi Mumbai,
in which Ishaan made its recent investment, has also been approved as an SEZ.
Notified SEZs in India enable our projects to benefit from various tax
incentives including:
a) Income tax deduction of 100% of profits from developing an SEZ for 10
consecutive years out of the first 15 Years from the date of notification.
b) Exemption from Dividend Distribution Tax
c) Exemption (100%) from customs & excise duty for all capital goods and
other goods during setting-up of SEZ
d) Exemption from service tax
In addition tenants also receive additional benefits.
It should be noted that none of our sites that qualify for SEZ status are on
agricultural land, and are therefore not affected by recent announcements
reducing the benefits of SEZ status for agricultural land.
Environment
All the commercial buildings in the company's portfolio are now planned to be
compliant with LEED Certified Green buildings criteria. The commercial
developments in the portfolio will be high-performance, sustainable buildings
with a minimised impact on the environment. Procedures to ensure that the
commercial buildings qualify for certification at completion are being
introduced.
Outlook
India's economic outlook continues to be positive. India's GDP growth of
approximately 8% over the last two years is expected to remain at a similar
level over the next three years.
Strong economic fundamentals, robust consumption driven growth and healthy
corporate balance sheets have so far helped the Indian economy to be resilient
against the impact of the credit crisis.
While many real estate markets across the world have felt the impact of the
sub-prime crisis in the past few months, the Indian real estate market appears
so far to have been relatively insulated from its impact. Measures taken by the
Central Bank of the country have kept a check on lending by banks to the real
estate sector by tightening capital adequacy norms including an increased
emphasis on risk weighting and restricting lending for land acquisitions.
Healthy GDP growth has acted as a positive stimulus on the Indian real estate
market. The real estate market in India is reported to be growing relatively
strongly across all sectors especially in South and West India's major
commercial centres (including Mumbai, Hyderabad, Bangalore and Pune) for the
Grade A projects of the type in which Ishaan is investing.
With this background we look forward with confidence to the successful
development of the projects in our portfolio with one of the best teams of
development advisers in India. We shall continue with our current investment
strategy to locate projects that comply with our investment criteria and that
will give a sufficiently high return in order to produce an IRR of approximately
20% to the Company after deducting the Group's costs, including any taxation, on
a leveraged basis.
Ian Henderson
Chairman
Consolidated Income Statement
For the six months ended 30 September 2007
Unaudited Unaudited Audited
From 1 April From 11August From 11 August
2007 to 30 2006 to 2006 to 31
September 2007 30September March 2007
2006
Notes ?'000 ?'000 ?'000
------------------ ------ ----------- ----------- -----------
Administrative
expenses 4 (3,280) - (1,469)
------------------ ------ ----------- ----------- -----------
Share of post
tax losses of
associates 5 (72) - (28)
------------------ ------ ----------- ----------- -----------
Group
operating loss
from
continuing
operations (3,352) - (1,497)
------------------ ------ ----------- ----------- -----------
Net finance
income 2,806 - 3,225
------------------ ------ ----------- ----------- -----------
(Loss)/Profit
from
continuing
operations
before tax (546) - 1,728
------------------ ------ ----------- ----------- -----------
Taxation - - -
------------------ ------ ----------- ----------- -----------
(Loss)/Profit
for the period
from
continuing
operations
attributable
to equity
holders of
parent (546) - 1,728
------------------ ------ ----------- ----------- -----------
Basic and diluted earnings
per share attributable to
the equity holders of the
parent during the period
(expressed as pence per
share)
------------------ ------ ----------- ----------- -----------
Basic earnings
per share 7 (0.263) - 1.52
------------------ ------ ----------- ----------- -----------
Diluted
earnings per
share 7 (0.263) - 1.52
------------------ ------ ----------- ----------- -----------
The notes on pages 11 to 14 form an integral part of these financial statements.
Consolidated Balance Sheet
As at 30 September 2007
Unaudited Unaudited Audited
30 September 30 September 31 March 2007
2007 2006
? ? ?
Notes 000's 000's 000's
Assets
Non-current assets
------------------- ------ ----------- ------------ -----------
Investment in
associates 5 160,834 - 85,047
------------------- ------ ----------- ------------ -----------
160,834 - 85,047
------------------- ------ ----------- ------------ -----------
Current assets
Trade and other
receivables 479 - 992
Cash and short term
deposits 67,117 - 154,063
------------------- ------ ----------- ------------ -----------
67,596 - 155,055
------------------- ------ ----------- ------------ -----------
Total assets 228,430 - 240,102
------------------- ------ ----------- ------------ -----------
Equity and liabilities
Equity attributable to
shareholders of the parent
company
Share capital 2,070 - 2,070
Share premium 195,481 (9) 195,481
Retained earnings 1,643 - 1,739
------------------- ------ ----------- ------------ -----------
Total equity 199,194 (9) 199,290
------------------- ------ ----------- ------------ -----------
Current liabilities
Trade and other
payables 97 9 32,130
Non-current liabilities
Financial
liabilities 29,139 - 8,682
------------------- ------ ----------- ------------ -----------
Total equity and
liabilities 228,430 9 240,102
------------------- ------ ----------- ------------ -----------
The notes on pages 11 to 14 form an integral part of these financial statements.
Consolidated Statement of Changes in Equity
For the six months ended 30 September 2007
------------------- --------- ---------- ----------- --------
Share capital Share premium Retained Total equity
earnings
?'000 ?'000 ?'000 ?'000
------------------- --------- ---------- ----------- --------
Balance at 11 August - - - -
2006
Share issue
expenses (9) (9)
------------------- --------- ---------- ----------- --------
Balance at 30
September 2006 - (9) - (9)
------------------- --------- ---------- ----------- --------
Shares issued
in the period 2,070 204,930 - 207,000
Share issue
expenses - (9,440) - (9,440)
Share based
payment charge - - 11 11
Retained
profit for the
period - - 1,728 1,728
Balance at 31
March 2007 2,070 195,481 1,739 199,290
------------------- --------- ---------- ----------- --------
Retained loss
for the period - - (546) (546)
Foreign
currency
translation
reserve -
Associates - - 442 442
Share based
payment charge - - 8 8
------------------- --------- ---------- ----------- --------
Balance at 30
September 2007 2,070 195,481 1,643 199,194
------------------- --------- ---------- ----------- --------
The notes on pages 11 to 14 form an integral part of these financial statements.
Consolidated Cash Flow Statement
For the six months ended 30 September 2007
Unaudited Unaudited Audited
From 1 Apr 2007 From 11 Aug From 11 Aug
to 30 2006 to 30 2006 to 31
September 2007 September 2006 March 2007
? ? ?
Notes 000's 000's 000's
Operating activities
Profit before
tax from
continuing
operations (546) - 1,728
Adjustments for:
Interest income (2,806) - (3,225)
Share of
losses of
associate 72 - 28
Share based
payment charge 8 - 11
Investment
adviser
performance
fee 1,892 -
------------------- ------- ----------- ----------- -----------
Operating loss
before working
capital
changes (1,380) - (1,458)
Decrease/
(increase) in trade
and other
receivables 513 - (992)
(Decrease)/
increase in trade
and other
payables (32,033) 9 239
------------------- ------- ----------- ----------- -----------
Net cash flows
from operating
activities (32,900) 9 (2,211)
------------------- ------- ----------- ----------- -----------
Investing activities
Interest
received 2,806 - 3,225
Investment in
associates (56,852) - (44,502)
------------------- ------- ----------- ----------- -----------
Net cash flows
from investing
activities (54,046) - (41,277)
------------------- ------- ----------- ----------- -----------
Financing activities
Proceeds from
issue of share
capital - (9) 197,551
Intragroup loan - - -
------------------- ------- ----------- ----------- -----------
Net cash flows
from financing
activities - (9) 197,551
------------------- ------- ----------- ----------- -----------
Net movements
in cash and
cash
equivalents (86,946) - 154,063
Cash and cash
equivalents at
the beginning
of period 154,063 - -
------------------- ------- ----------- ----------- -----------
Cash and cash
equivalents at
30September
2007 67,117 - 154,063
------------------- ------- ----------- ----------- -----------
Represented by:
Cash and short
term deposits 67,117 - 154,063
------------------- ------- ----------- ----------- -----------
67,117 - 154,063
------------------- ------- ----------- ----------- -----------
The accompanying notes on pages 11 to 14 form an integral part of these
unaudited consolidated financial statements
Notes to the Consolidated Financial Statements for the six months ended 30
September 2007
1 The Company
The Company was incorporated in the Isle of Man on 11 August 2006 as a public
company under the Isle of Man Companies Acts 1931 to 2004 with registered number
117470C. The Company's Ordinary Shares are traded on AIM.
The principal activity of the Company and its subsidiaries is that of investment
holding.
The consolidated financial statements of Ishaan Real Estate plc comprises of the
company and its subsidiaries (together referred to as the "Group").
This unaudited interim financial information for the period ended 30 September
2007 is unaudited and does not constitute statutory accounts within the meaning
of the Companies Acts 1931 to 2004.
The statutory accounts for the period from 11 August 2006 to 31 March 2007 which
were prepared in accordance with International Financing Reporting Standards, as
endorsed by the European Union (IFRS), have been filed and copies can be
obtained from the Registered Office of the Company at Top Floor, 14 Athol Street
, Douglas, Isle of Man. The auditors' report on those accounts was unqualified.
This unaudited interim financial information includes the results of the Company
and its wholly owned subsidiaries for the period under review.
2 Significant Accounting Policies
(a) Basis of accounting
The condensed financial statements have been prepared under historical cost
convention.
(b) Basis of preparation
The condensed financial statements have been prepared using accounting policies
that are consistent with those followed in preparation of the Group's annual
financial statements for the period 11 August 2006 to 31 March 2007.The
consolidated financial statements have been prepared in pounds sterling.
(c) Adviser fees
The Investment Adviser is entitled to a performance fee in respect of each
Mauritian SPV which is designed to encourage the Investment Adviser to seek the
highest returns on the underlying projects. Pursuant to the performance fee
arrangements, if the Mauritian SPVs achieve an SPV level IRR in respect of the
partial or total realisation of an investment in excess of 10%, then the
investment will be entitled to a performance fee of 20% of the realised proceeds
which exceeds the proceeds required to achieve a 10% SPV level IRR (with such
participation increasing to 30% of that portion of the realised proceeds from an
investment which exceeds the proceeds required to achieve a 20% SPV level IRR).
(d) Other financial liabilities - Adviser fees
The provision for performance fees payable to the Investment Adviser represents
the directors estimate of the present value of the future cash flows payable,
discounted using the Directors' estimate of the risk adjusted value of money.
These fees are considered to be directly attributable to the acquisition by the
Group of its investment in its associates and the amount provided has been
included in the cost of the Group's investment in associates. Subsequent to the
date of acquisitions, revisions to these provisions are charged to the Income
Statement.
3 Segment Reporting
The directors consider the Group to be operating in one geographic segment and
one business segment since all investments are in India and all the operations
in India are concerned with property development. Consequently no segmental
disclosures have been presented.
Notes to the Consolidated Financial Statements
Continued
4 Administrative expenses
Unaudited Unaudited Audited
From 1 April From 11August From 11 August
2007 to 30 2006 to 2006 to 31
September 2007 30September March 2007
2006
? ? ?
------------------ ----------- --------- ------------
000's 000's 000's
------------------ ----------- --------- ------------
Directors'
fees and
expenses 38 - 31
Secretarial
and
administration 85 - 109
Audit fees - - 190
Professional
fees 1,026 - 1,083
Other expenses 231 - 45
Investment
adviser
performance
fee 1,892 - -
Share based
payment charge 8 - 11
------------------ ----------- --------- ------------
3,280 - 1,469
------------------ ----------- --------- ------------
5 Investments in associates
Unaudited Unaudited Audited
30 September 30 September 31 March 2007
2007 2006
? ? ?
------------------- ----------- -------- -----------
000's 000's 000's
------------------- ----------- -------- -----------
Unquoted
Balance at the
beginning of the
period 85,047 - -
Additions 56,852 - 76,393
Performance fees
payable to the
investment adviser 18,565 - 8,682
Share of
post-acquisition
losses (72) - (28)
Foreign currency
translation 442 - -
------------------- ----------- -------- -----------
Balance at the end of
the period 160,834 - 85,047
------------------- ----------- -------- -----------
Notes to the Consolidated Financial Statements
Continued
Summarised financial information extracted from the interim financial statements
of associates for six month period ended 30 September 2007 is given below:
Genext Trion Serene Magna Sundew Intime
? ? ? ? ? ?
000's 000's 000's 000's 000's 000's
Share of the associates
balance sheet:
Total assets 48,211 6,551 7,724 3,934 5,228 3,327
Total liabilities 44,166 4,004 3,189 1,054 2,076 252
Share of the associates
results:
Total revenue - - - - - -
(Loss)/profit for the
period (14) 6 (56) (39) 1 31
Details of the investments in associates are as follows:
Investee company Country of Incorporation Type of Shares % Holding
Trion Properties
Private Limited India Equity 40%
Serene Properties
Private Limited India Equity 40%
Magna Warehousing and
Distribution Private
Limited India Equity 40%
Genext Hardware and
Parks Private Limited India Equity 38.80%
Preference 100%
Intime Properties
Private Limited India Equity 39.89%
Preference 100%
Sundew Properties
Private Limited India Equity 39.87%
Preference 100%
The principal activity of all associates is to do business in real estate.
6 Share capital and share premium
Number of ordinary shares of ?0.01 ?
each
000's
Authorised:
30 September 2007 400,000,000 4,000
Allotted, called up and fully
paid:
30 September 2007 207,000,000 2,070
Notes to the Consolidated Financial Statements
Continued
7 Earnings per share
Basic and diluted earnings per share
Basic earnings per share is calculated by dividing the net profit attributable
to the equity shareholders of the Company by the weighted average number of
Ordinary Shares outstanding during the period.
Diluted earnings per share is calculated by dividing the net profit attributable
to ordinary equitable holders of the parent by the weighted average number of
Ordinary Shares outstanding during the year, plus the weighted average number of
ordinary Shares that would be issued on the conversion of all the dilutive
potential Ordinary Shares into Ordinary Shares.
Unaudited Unaudited Audited
30 September 30 September 31 March 2007
2007 2006
------------------- ----------- --------- -----------
Profit attributable to
equity holders of the
company(?'000) (546) - 1,728
Weighted average of
number of Ordinary
Shares in issue
(thousands) 207,000 - 113,717
Dilution in respect of
employee share option
schemes (thousands) 480 - 242
Weighted average of
number of Ordinary
Shares in issue
(diluted) (thousands) 207,480 - 113,959
Basic earnings per
share (pence) (0.263) - 1.52
------------------- ----------- --------- -----------
Diluted earnings per
share (pence) (0.263) - 1.52
------------------- ----------- --------- -----------
9. Post balance sheet events
The Group made the following investment in the period since 30 September 2007
I-7 Company (Mauritius) Limited
Subscription for 565 Ordinary Shares and 240 Preference Shares in Newfound
Properties and Leasing Private Limited for a consideration of ? 6,190,869 on 13
November, 2007
Acquisition of 3,517 Ordinary Shares in Newfound Properties and Leasing Private
Limited for a consideration of ? 20,043,918 on 23 November, 2007. These shares
are in the process of being transferred from Mr Ravi C. Raheja and Mr Neel C.
Raheja.
CORPORATE INFORMATION
Registered office: Bankers
Top Floor Royal Bank of Scotland International
14 Athol Street Isle of Man Branch
Douglas PO Box 151
Isle of Man 2 Victoria Street
IM1 1JA Douglas
British Isles Isle of Man
IM99 1NJ
Registered number: Auditors
Registered in the Isle of Man Ernst & Young LLC
No: 117470C Rose House
51-59 Circular Road
Douglas
Isle of Man
IM1 1AZ
Company secretary:
Anne Elizabeth Couper Woods
Directors: Solicitors
Ian James Henderson (Chairman) Lovells
Rajendra Prabhakar Chitale Atlantic House
Vittorio Radice Holborn Viaduct
Neel Chandru Raheja London
Timothy Graham Walker EC1A 2FG
Stephen John Roland Vernon
Investment adviser Administrator and registrar
Neerav Investment Advisory Services Simcocks Trust Limited
(Cyprus) Private Limited Top Floor
48 Themistoklis Dervis 14 Athol Street
Centennial Building Douglas
7th floor, Office 701 Isle of Man
Nicosia IM1 1JA
Cyprus
Nominated adviser and broker
Deutsche Bank AG, London
1 Great Winchester Street
London
EC2N 2DB
Broker
J P Morgan Cazenove
20 Moorgate
London
EC2R 6DA
This information is provided by RNS
The company news service from the London Stock Exchange
END
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