Latest Results
Preliminary results
West Pioneer, which intends to become a leading developer and operator of shopping malls in west and southern India, announces its results for the Year ended 31 March 2008.
| Highlights Chairman's Statement Consolidated Income Statement Consolidated Balance Sheet Statement of Changes in Equity Cash Flow Statement Notes |
Highlights
- Metro Junction commences business with anchor tenants McDonalds and Big Bazaar
- Net Assets of US$71.8m (2007: US$42.6m)
- Appointment of Mr. Nitin Dattani as Executive Director and Mr. Mac Daniels as VP – Mall Management
- Acquired entire land parcels in Aurangabad and Nashik
- Appointment of lead architects for Aurangabad and Nashik
Chairman’s statement
Commenting on the results, Amit Jatia, Chairman of West Pioneer Properties, said: “The past year has been transformational for West Pioneer with the opening of our Metro Junction shopping mall in Kalyan. We have moved from solely being a developer of shopping malls to an operator as well. I would like to thank the whole team who worked on Metro Junction for all their efforts in helping get the project into operation. I look forward to building on our success in Kalyan with the Group’s other projects in Aurangabad and Nashik.”
Kalyan
The majority of the construction of Phase 1 of Metro Junction was completed at the end of March 2008 and the Group’s major anchor tenants, McDonalds and Big Bazaar opened for trading in the week commencing 28 March 2008. As at 31st March 2008, the bulk of the lower ground floor tenants and the major anchors on the ground floor had taken possession and commenced fitment of their stores, and have been open for business since June 2008.
Final consents to commence construction for the development of 250,000 sq ft of retail space under Phase 2 of the Kalyan project are expected to be received by the end of October 2008 with construction to commence shortly thereafter.
The businesses of both anchor tenants have performed extremely well and have reportedly recorded the highest turnover amongst their comparable stores in Mumbai. Despite the monsoons, footfall for July was an average of 7,000 on weekdays and in excess of 15,000 at the weekends. During the Independence Day period of 13 to 17 August, the average footfall numbers per day hit 66,000, reportedly the highest for any Mall in Mumbai. Big Bazaar reportedly registered the highest sales of any of their outlets in Mumbai.
The Kalyan project was valued by Cushman and Wakefield as at 31st March 2008. In the opinion of Cushman and Wakefield the value of the project was US$127m of which US$29.6m is attributable to the lower ground and ground floor. The mall was only partially let as at 31st March 2008 therefore only the fair value of the lower ground and ground floor has been included in the balance sheet.
Aurangabad
The acquisition of the entire 750,000 sq ft Aurangabad land parcel was completed in the first half of 2008 and the architects have already started work on the concept and design of the proposed mall and hotel at Aurangabad. It is intended that the hotel will be operated by the Intercontinental Hotel Group. Significant interest has been shown from retailers to lease space within the site.
Nashik
The acquisition of the 17 acre site land parcel at Nashik was completed in June 2008. Lewis & Hickey, a UK based firm of architects with offices in Mumbai, have been appointed as the lead architects for this project, and preliminary work on the concept and design has started. There is tremendous interest from retailers in leasing space in the Nashik site. This is strengthened by the comparative lack of modern retail formats in Nashik. Negotiations are ongoing with three large potential anchor tenants to lease space in the mall.
Outlook
The Indian retail market continues to expand rapidly with considerable interest from international retailers keen to enter the market. Over the past two years organised retailing in India has grown at over 35% per annum with this trend set to continue throughout 2008. The increase in purchasing power, favourable demographics and the increasing exposure to organised retail formats, are redefining consumption patterns of the middle class in India.
As we anticipated over two years ago, modern retailing is spreading to tier 2 cities and tier 3 towns. I am confident that West Pioneer has the right strategy and team to continue to meet the growing needs of organised retail within tier 2 cities, and the suburbs of the larger metros.
Amit Jatia
Chairman of West Pioneer Properties
27 August 2008
CONSOLIDATED INCOME STATEMENT
for the year ended 31st March 2008
| For the Year ended | |||
| Notes | 31st March 2008 |
31st March 2007 |
|
| $ | $ | ||
| Property and Other Income | |||
| Property Revenue | 111,438 | - | |
| Property Revaluation | 14,025,025 | - | |
| Fund Management Income | 1 | 2,136,280 | 659,711 |
| 16,272,743 | 659,711 | ||
| Expenses | |||
| Administrative expenses | 1 | (1,837,826) | (741,632) |
| Selling & Distribution Costs | 1 | (3,790) | (4,150) |
| Finance costs | 1 | (88,127) | (14,376) |
| Profit/(Loss) before tax | 14,343,000 | (100,447) | |
| Income tax expense | (15,266) | (3,558) | |
| Profit/(Loss) after tax | 14,327,734 | (104,005) | |
| Attributable to: | |||
| Equity holders | 14,327,734 | (104,005) | |
| Earnings per share | 0.183 | (0.004) | |
CONSOLIDATED BALANCE SHEET
AS AT 31st March 2008
| Notes | 31st March 2008 |
31st March 2007 |
|
| $ | $ | ||
| ASSETS | |||
| Non current assets | |||
| Property, plant and equipment | 2 | 7,933,005 | 7,038,465 |
| Investment Property | 3 | 29,624,060 | - |
| Intangible assets | 13,764 | 4,340 | |
| Prepayments | 11 | 26,771,006 | 6,006,363 |
| Other financial assets | 5 | 238,048 | 867,224 |
| 64,579,883 | 13,916,392 | ||
| Current assets | |||
| Investments – Held for trading | 4 | 12,663,153 | 24,419,085 |
| Other receivables | 6 | 176,315 | 184,165 |
| Prepayments | 11 | 44,312 | 43,365 |
| Advance tax | - | 6,600 | |
| Cash and cash equivalents | 7 | 13,664,755 | 7,831,087 |
| 26,548,535 | 32,484,302 | ||
| TOTAL ASSETS | 91,128,418 | 46,400,694 | |
| EQUITY AND LIABILITIES | |||
| Equity attributable to the equity holders | |||
| Issued capital | 8 | 8,000,664 | 7,502,267 |
| Share premium | 8 | 45,717,870 | 34,525,188 |
| Retained earnings | 8 | 14,222,176 | (105,140) |
| Foreign currency translation reserve | 3,923,511 | 650,094 | |
| 71,864,221 | 42,572,409 | ||
| Non current liabilities | |||
| Interest bearing loans and borrowings | 9 | 9,840,030 | 2,468,599 |
| Interest free bearing loans and borrowings | 20 | - | |
| Other liabilities | 432,898 | 455,026 | |
| Employee benefit liability | 12,046 | 407 | |
| Income tax liability | 24,762 | 3706 | |
| 10,309,756 | 2,927,738 | ||
| Current liabilities | |||
| Trade and other payables | 10 | 6,695,210 | 776,480 |
| Interest bearing loans and borrowings | 9 | 2,130,326 | - |
| Other liabilities | 128,905 | 124,067 | |
| 8,954,441 | 900,547 | ||
| TOTAL LIABILITIES | 19,264,197 | 3,828,285 | |
| TOTAL EQUITY AND LIABILITIES | 91,128,418 | 46,400,694 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31st March 2008
| Issued | Share | Retained | Foreign currency translation | Total | |
| Capital | premium | Earnings | reserve | Equity | |
| $ | $ | $ | $ | $ | |
|
Balance as at 1st April 2007 |
7,502,267 | 34,525,188 | (105,140) | 650,094 | 42,572,409 |
| Net profit for the period | - | - | 14,327,734 | - | 14,327,734 |
| Difference for currency translation | - | - | - | 3,273,417 | 3,273,417 |
|
Issue of share capital |
496,130 | - | - | - | 496,130 |
| Share premium on fresh issue of capital | - | 11,596,736 | - | - | 11,596,736 |
| WEPL acquired | 2,267 | - | (418) | - | 1,849 |
| Share issue expenses | - | (404,054) | - | - | (404,054) |
| Balance as at 31st March 2008 | 8,000,664 | 45,717,870 | 14,222,176 | 3,923,511 | 71,864,221 |
| Balance as at 1st April 2006 | 2,267 | - | (1,135) | (6) | 1,126 |
| Net Profit for the year | - | - | (104,005) | - | (104,005) |
| Foreign currency translation reserve | - | - | - | 650,100 | 650,100 |
| Total income and expense for the year | - | - | (105,140) | 650,094 | 546,095 |
| Issue of share capital as on 5th September 2006 | 10 | - | - | - | 10 |
| Issue of share capital as on 21st November 2006 | 4,999,990 | - | - | - | 4,999,990 |
| Issue of share capital as on 13th December 2006 | 2,500,000 | 37,500,000 | - | - | 40,000,000 |
| Share issue expenses | - | (2,974,812) | - | - | (2,974,812) |
| Balance as at 31st March 2007 | 7,502,267 | 34,525,188 | (105,140) | 650,094 | 42,572,409 |
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31st March 2008
| 2008 | 2007 | |
| Profit/(Loss) before tax from continuing operations | 14,343,000 | (100,447) |
| Adjustments to reconcile profit before tax to net cash flows | ||
| Depreciation and impairment of property, plant and equipment | 17,659 | 3,871 |
| Amortisation of Preliminary Expenses | - | - |
| (Increase)/decrease in fair value of investment properties | (14,089,760) | (52,090) |
| Net gain on sale of investments | (41,768) | (1,267) |
| Dividend income | (1,388,600) | (297,726) |
| Interest Income | (594,016) | (308,628) |
| Interest expense | (614,001) | 14,376 |
| Working Capital Adjustment (Increase)/decrease in other assets (non-current) |
699,359 | (103,253) |
| (Increase)/decrease in prepayments (current) | 1,983 | (9,139) |
| (Increase)/ decrease in other receivables | 31,291 | 175,280 |
| Increase/(decrease) in trade and other payables | 5,549,482 | 324,184 |
| Increase/(decrease) in other liabilities current | (10,157) | 185,884 |
| Increase/(decrease) in other liabilities non current | (30,525) | 42,082 |
| Income tax paid | - | (2,747) |
| Net cash flows from operating activities | 3,873,947 | (129,620) |
| Investing activities | ||
| Proceeds from sale of held-for-trading investments | - | 13,851,196 |
| Purchase of property, plant and equipment & intangible assets | (15,293,042) | (34,706) |
| Purchase of held-for-trading investments | 13,853,914 | (37,284,008) |
| (Increase)/decrease in prepayments | (3,245,728) | (6,464,639) |
| Increase/(decrease) in trade & other payables relating to construction costs | - | 441,989 |
| Investment in construction costs | (17,000,351) | (5,781,277) |
| Net gain on sale of investments | 41,768 | 1,267 |
| Dividend income | 1,883,374 | 121,947 |
| Interest received | 594,016 | 308,628 |
| Net cash flows used in investing activities | (19,166,049) | (34,839,603) |
| Financing activities | ||
| Proceeds from issue of shares | 11,733,230 | 45,000,000 |
| Transaction costs of issue of shares | - | (2,974,318) |
| Proceeds from issue/ (redemption) of preference share capital | - | (817,680) |
| Proceeds from receipt of share application money | - | 2,369,855 |
| Proceeds from borrowings | 9,193,890 | 2,369,855 |
| Interest paid | 119,228 | (14,376) |
| Net cash flows used in financing activities | 21,046,348 | 43,563,481 |
| Net increase/(decrease) in cash and cash equivalents | 5,754,246 | 8,594,258 |
| Net foreign exchange difference | 77,601 | (745,863) |
| Closing cash and cash equivalents - Opening balance | 78,32,908 | (17,308) |
| Closing cash and cash equivalents at 31st March | 13,664,755 | 7,831,087 |
Notes
Notes to the financial statement can be found in the pdf download
Page last up-dated: 27 August 2008