Sustaining Delivery with Steady Growth Circle Property Plc Report - PDF document

Sustaining Delivery with Steady Growth Circle Property Plc Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016

Circle Property Plc is a specialist and imaginative regional office investment and development company operating throughout the UK. circleproperty.co.uk/ar2016

At a Glance SMALL BUT PERFECTLY FORMED OUR PORTFOLIO The Group’s portfolio consists of 16 commercial property investments and developments in the UK with a current value of £77 .73m. All of the properties are currently held by CPUT and/or the Jersey Subsidiaries. The portfolio totals approximately 640,148 sq ft of accommodation, the majority of which, by floor area, is in the office sector. For more detailed information on our portfolio please see page 6 Portfolio Review Above: One Castlepark, Tower Hill, Bristol Below: Kents Hill Park, Timbold Drive, Milton Keynes

The map below shows the location of our properties. 3 2 2 2 Above: 36 Great Charles Street, Birmingham

STRATEGIC REPORT GOVERNANCE FINANCIALS Highlights of the Period OPERATIONAL HIGHLIGHTS STRATEGIC REPORT 1–9 ʱ The letting of the entire first floor of K1 in Milton Keynes to Trafficmaster Highlights of the Period 1 enabled us to proceed with the refurbishment of K2 in the knowledge that Chairman’s Statement 2 K1 was fully let. Those works are now complete and we are pleased that K2 is CEO’s Review 4 attracting considerable interest. We are drawing-in tenants from competing local Portfolio Review 6 developments who appreciate our high specification and thoughtfully planted landscaped grounds with ample car parking. GOVERNANCE ʱ In Birmingham, we are already on site and working through our rolling 10–19 refurbishment of 36 Great Charles Street retaining existing tenants and extending Board of Directors 10 leases to meet tenants requirements. The entrance is being enlarged and all floors Directors’ Report 12 are being refurbished in “media-style” with exposed ceiling services and open Governance Report 15 plan yet flexible floor plates. Remuneration Report 18 ʱ At Somerset House in Temple Street Birmingham we are securing pre-lets on FINANCIALS the two Ground Floor restaurants for which planning permission has now been 21–40 granted. The strip out is underway and will be followed by a refurbishment of the Independent Auditor’s Report 20 upper floors completing in Spring 2017. Consolidated Statement of Comprehensive Income 21 FINANCIAL HIGHLIGHTS Consolidated Statement of Financial Position 22 Profits and Earnings: Consolidated Statement of Changes in Equity 23 Consolidated Statement of £ 1.1 m 3.8 p Cash Flows 24 Notes to the Consolidated Financial Statements 25 PROFIT BEFORE TAX EARNINGS PER SHARE Officers and Professional Advisers £ 43.2 m 153 p SHAREHOLDERS’ FUNDS NET ASSET PER SHARE 2.4 p £ 77 .73 m FINAL DIVIDEND PER SHARE PORTFOLIO VALUATION Circle Property Plc 1 Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016

Chairman’s Statement ROBUST BUSINESS PERFORMING IN LINE WITH EXPECTATION WELCOME TO On 16 February 2016, Circle Property Plc The governance of the Company is evolving to successfully listed on AIM with stock being match both changing regulation and the needs OUR INAUGURAL taken up at a price of £1.49 which reflected the of the Company. We have established NAV with no discount. As expected, on 16 May Remuneration and Audit Committees and deal REPORT. 2016 we were in position to pay a maiden dividend with any nomination issues through the Board of 2.4p per share, based on performance to 31 as a whole. I am confident that the Audit March 2016, the Company’s financial period end, Committee has the requisite skills and the while acknowledging that the Company had Remuneration Committee is focussed on been in existence for a mere four months. rewarding fairly and motivating the Executive within constraints of the property improvement Despite the recent political and economic programme and a progressive dividend policy. uncertainties, culminating in the United Kingdom’s decision to leave the European Union, I am committed to ensuring the Company operates the share price has proven to be remarkably at the highest level of integrity and embraces the resilient. This is largely as a result of our challenges of an ever-changing regulatory shareholders being long-term investors who environment. We have prepared a policies and share our confidence in the earnings’ potential procedures manual for board approval which of this quality commercial property portfolio and, includes, but is not limited to, policies on Anti- as per our branding, our active investment Bribery and Corruption, Gifts and Entertainment, within it. On 31 March 2016 the net asset value Code of Conduct, Insider Dealing, Risk, Financial attributable to shareholders amounted to Procedures, Meetings, Whistleblowing and the £43.2m translating into a net asset value per additional requirements regarding the insider share of approximately £1.53. dealing rules via the Market Abuse Regulations which recently came into effect. The Executive team is well experienced in dealing with difficult times having successfully brought We are on budget and on target with our stated Circle Property Unit Trust through the market aims to enhance value through strategic recession of 2008. Although our team is small acquisition in improving areas and to expend c they are working hard to identify the right £8m on capital improvements by actively opportunities and secure funding. We are investing in property. I thank the Board for its delighted, although after the accounting period support and the Executive team for their energy closed, to note that we have secured a significant and focus but, most importantly, I thank you the line of debt funding from our bankers. I would like shareholders for backing our efforts and we will to thank the Royal Bank of Scotland for getting strive to reward that trust. this facility in place, notwithstanding the turbulence created around the Brexit referendum. Ian Henderson Non-Executive Chairman 2 Circle Property Plc Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016

STRATEGIC REPORT GOVERNANCE FINANCIALS “We are on budget and on target with our stated aims to enhance value through strategic acquisition in improving areas and to expend c£8m on capital improvements by actively investing in property. “ Somerset House, Temple Street, Birmingham 36 Great Charles Street, Birmingham Circle Property Plc 3 Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016