Our financial position

Financial results

The Group's financial results have benefited from an improvement in the property market environment since summer 2009 and the positive effect of various acquisitions made in the second half of the year. Adjusted profits and earnings were up year on year mainly due to higher rental income and reduced interest expense.

Net asset value

The opening value of adjusted net assets per share at 31 March 2009 has been restated to take into account the effects of the £166.4 million Rights Issue which completed in June 2009. This produces a pro forma net asset value of 245 pence at 31 March 2009 from which there has been a rise of 15.5% in the year to 283 pence, largely because of upward movement in the value of the property portfolio. At 31 March 2010, the Group's net assets were £876.7 million, up from £568.6 million at 31 March 2009 as a consequence of valuation gains and the Rights Issue.

Adjusted net assets per share – movement since 31 March 2009

The main factors behind the 38 pence per share change in adjusted net assets per share ("NAV") from the pro forma 31 March 2009 value were:

  • the rise of 34 pence per share arising from the revaluation of the property portfolio. Of the total portfolio uplift new acquisitions boosted year end NAV by around 8 pence;
  • the rise of 16 pence per share arising from the revaluation of the Group's joint ventures;
  • the compulsory purchase by Transport for London of 18/19 Hanover Square, W1 at beneath book value reduced NAV by 6 pence per share;
  • adjusted earnings for the year of 10 pence per share enhanced NAV;
  • other items including the termination of interest rate derivatives in May, the purchase of shares in our LTIP trust and pension movements reduced net assets by a further 8 pence per share; and
  • the payment of dividends caused a reduction in net assets by 8 pence per share.

Triple net assets per share ("NNNAV") was 291 pence per share at 31 March 2010 compared to 251 pence per share at 31 March 2009 (up15.9%). At year end the difference between adjusted net assets per share and NNNAV was the positive mark to market of debt of 8 pence mainly arising from the low interest rate of the Group's 2029 debenture. There was no net movement in deferred tax provisions during the period.

283p adjusted net assets per share