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Latest Results

Interim results

West Pioneer, a developer and operator of shopping malls in west and southern India, announces its interim results for the half-year ended 30 September 2009.

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Highlights

Commenting on the results, Amit Jatia, Chairman of West Pioneer, said: “Trading conditions in the half of the financial year have shown a genuine recovery from the difficulties experienced last year. Throughout this period West Pioneer has benefited from its strategy of maintaining a high quality, focused portfolio of assets, whilst remaining open to opportunistic and attractive investment opportunities. This has resulted in our successful entry into the residential market and we have been most encouraged by initial sales of apartments in the first two towers at Kalyan. Overall we remain confident in our ability to deliver value to shareholders from our investments in retail, hospitality and residential development.”

 

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Chairman's Statement

In the half-year ended 30 September 2009, West Pioneer achieved revenue and other income of $5.1m (2008: $2.8m), including property rentals and other operating income of $1.5m (2008: $0.6m) reflecting a full period of operations in the lower ground and ground floor at the Kalyan mall. Profit before tax was $2.8m (2008: $1.1m) and basic earnings per share was $0.014 (2008: $0.005). Net assets at the period end were $59.6m, including cash and cash equivalents of $4.2m. These figures reflect a positive property revaluation of $3.3 million, mainly as a result of progress in the residential development at Kalyan. Interest bearing loans and borrowings reduced slightly to $8.1m during the period, inclusive of debt repayments.

Kalyan

I am pleased to announce that after the recent slowdown seen in the Indian retail industry, West Pioneer has regained its growth momentum. The adoption of a flexible approach to our development plans has seen us make a successful entry into the residential market in Kalyan, a suburb of Mumbai where our Metro Junction mall is also located. Metro Junction is now recording its highest ever footfalls which are qualitatively superior to earlier footfall and feedback from our retailers indicate a significant increase in their sales as a confirmation of this. Leasing has improved from 52% of the total gross lease area in May 2009 to 65% in November 2009, including some major new tenants. The multiplex and the food court, which became operational in July and September of this year, have become major attractions for consumers. The volume of current enquiries puts the mall on track to be substantially leased by March 2010.

Bookings for the first of the planned three residential towers, called Metro Residency, opened in mid-September this year and to date we have booked 136 out of the total 178 apartments available. In light of this demand, we released for sale the first 80 apartments of the second tower in November and to date we have booked 41 apartments. The booking prices have exceeded our initial expectations and imply for the Company a total potential booking sales value of $10.88m. This would enable the Company to complete the construction of the first two towers without any requirement for external finance. The ground break for constructing the first tower is scheduled for the end of December 2009 and we are well on track to meet this timetable.

Nashik and Aurangabad

As previously stated, we felt that it would be prudent to monitor retailer sentiment before commencement of any construction activity at Nashik or Aurangabad. In the case of Nashik, our development plan is a 350,000 sq ft mall to be completed in two phases, of which phase 1 will be approximately 180,000 sq ft with a 200 room hotel to be managed by the Intercontinental Hotel Group (IHG) under the Holiday Inn brand. The balance of the land is being considered for a residential complex. While the required permissions for this development plan by the local authorities are in progress, we are in parallel discussions with two large anchor tenants for the retail area. Discussions with IHG have also commenced for the layout and design of the hotel.

Our current development plan for Aurangabad envisages a shopping mall and a hotel. However, we propose to commence this development only after the Nashik plan has been implemented.

Outlook

The fundamentals of the Indian economy are strong and the GDP growth of 7.9% in the July–September quarter of this financial year indicates an annual GDP growth of around 7% in the financial year 2009–2010. We expect the positive correction in the retail sector to continue and strengthen over the coming months leading to a further expansion in the organized retail sector over the long term.
Against this background, the Group remains confident that its flexible approach will help it to realize its long term strategy in retail, hospitality and residential development.

Amit Jatia
Chairman of West Pioneer Properties

7 December 2009

 

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Consolidated Income Statement
for the half-year ended 30 September 2009

  For the six months ended
30th September
  2009 2008
  Unaudited 
  $ $
Revenue    
Property Rentals 802,836  570,195
Other operating income 745,591 -
Property revenue 1,548,427 570,195
Property Revaluation  3,326,515 1,623,023
Finance income 235,429 591,325
Total revenue  5,110,371 2,784,543
     
Expenses    
Other income 56,988 37,273
Direct operating expenses for rent-earning properties  (742,316) -
Administrative expenses  (810,744) (1,171,627)
Selling and distribution costs  (247,462) (38,624)
Finance costs (563,536)  (505,285)
Total expenses  (2,307,070) (1,678,263)

Profit before tax
 2,803,302 1,106,280
Income tax expense (1,684,814)  (727,766)
     
Profit after tax  1,118,488 378,514
     
Attributable to:
Equity holders
 1,118,488 378,514
     
Earnings per share (attributable to equity holders)    
Basic  0.0139 0.005
Diluted  0.0139 0.005


 

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Consolidated Statement of Comprehensive Income
for the half-year ended 30 September 2009

  For the six months ended
30th September
  2009 2008
  Unaudited
  $ $
     
Profit for the period 1,118,488 378,514
     
Exchange gain/(loss) on translation of foreign operations 4,530,854 (9,785,344)
     
Other comprehensive income (loss) for the period, net of tax 4,530,854 (9,785,344)
     
Total comprehensive income for the period, net of tax 5,649,342 (9,406,830)
     
Attributable to:    
Equity holders 5,649,342 (9,406,830)
  5,649,342 (9,406,830)

 

 

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Consolidated Balance Sheet
for the half-year ended 30 September 2009

  30th September 31st March
  2009 2008 2009
  Unaudited Audited
  $ $ $
Assets      
  Non current assets      
  Property, plant and equipment  314,764 10,433,892 2,008,412
  Investment properties  67,584,666 26,400,493 39,670,517
  Intangible assets 22,717 14,918 24,872
  Prepayments 3,499,628 24,718,668 23,605,311
  Other financial assets 268,634 245,423 214,337
Advance income tax 297,883 39,444 218,064
   71,988,292 61,852,838 65,741,513
Current assets      
Inventories  4,219,763 - -
Investments – held for trading 1,041,132 2,826,861 1,126,832
Trade and other receivables 1,177,714 758,878  768,528
Prepayments 122,037 46,985 32,686
Cash and short-term deposits 4,242,867 12,319,092 6,645,093
   10,803,513 15,951,816 8,573,139
Total assets  82,791,805 77,804,654 74,314,652
       
Equity and liabilities      
Equity attributable to the equity holders      
  Issued capital 7,996,130 7,996,130 7,996,130
  Share premium  45,717,870 45,717,870 45,717,870
  Retained earnings  13,039,405 9,578,112 11,920,916
  Employee equity benefits reserve 582,789 407,588 515,474
  Foreign currency translation reserve  (7,694,039) (6,214,270)  (12,224,893)
   59,642,155 57,485,430 53,925,497
  Non current liabilities      
  Interest bearing loans and borrowings 6,154,425 8,032,251 6,516,618
  Other financial liabilities 786,905 653,764 663,681
  Other non financial liabilities 68,688 - 55,582
  Employee benefit liability 27,977 20,519 34,452
Deferred tax liability 9,467,886 4,985,365 7,196,150
  16,505,881 13,691,899 14,466,483
  Current liabilities      
  Trade and other payables 3,725,101 4,759,968 3,591,567
  Interest bearing loans and borrowings 1,965,279 1,795,234 1,629,155
  Other financial liabilities 891,519 72,123 651,610
  Other non financial liabilities 61,870 - 50,340
  6,643,769 6,627,325 5,922,672
Total liabilities 23,149,650 20,319,224 20,389,155
Total equity and liabilities  82,791,805 77,804,654  74,314,652


 

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Consolidated Statement of Changes in Equity
for the half-year ended 30 September 2009

       Attributable to equity holders of the parent
   Issued
capital
Share
premium
Retained
earnings
Employee equity benefits
reserve
Foreign currency translation
 reserve
Total
Equity
  $ $ $ $ $ $
Balance as at 1st April 2009 7,996,130 45,717,870 11,920,916 515,474 (12,224,893) 53,925,497
 Profit for the period      1,118,488      1,118,488
Other comprehensive income( loss )          4,530,854  4,530,854
Total comprehensive income     1,118,488    4,530,854  5,649,342
Share based payment       67,315   67,315
Balance as at 30th September 2009 (Unaudited) 7,996,130 45,717,870  13,039,404 582,789  (7,694,039)  59,642,154
             
             
Balance as at 1st April 2008 7,996,130 45,717,870 9,199,598 - 3,571,074 66,484,672
Net Profit for the period - - 378,514 - - 378,514
Other comprehensive income( loss )  - - - - (9,785,344) (9,785,344)
Total comprehensive income - - 378,514 - (9,785,344) (9,406,830)
Share based payment - - -  407,586 -  407,586
Balance as at 30th September 2008 (Unaudited) 7,996,130 45,717,870 9,578,112  407,586 (6,214,270)  57,485,428


 

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Consolidated Cash Flow Statement
for the half-year ended 30 September 2009

Interim consolidated cash flow statement
for the six months ended 30th September 2009

   2009

 2008
  Unaudited 
  $ $
   
 Profit before tax 2,803,302 1,106,280
 Adjustments to reconcile profit before tax to net cash flows    
 Depreciation and amortisation 16,388 12,494
 Share based payments expense 67,315 407,588
Share issue expenses w/off 6,564 -
 (Increase) in fair value of investment properties (3,326,515) (1,623,023)
 Net gain on sale of investments (57) (22,574)
 Dividend income (7,336) (236,370)
(Increase)/decrease in fair value of investment (157,303) 55,764
 Interest Income (62,938) (354,955)
 Interest expense 559,680 449,521
(Increase) in other assets (non-current) (84,935) (7,375)
 (Increase) in prepayments (current) (87,440) (1,561,169)
(Increase) trade and other receivables (343,367) (556,242)
 (Decrease) in trade and other payables (352,272) (1,586,001)
 Increase/(decrease) in other liabilities current 187,531 (81,544)
 Increase in other liabilities non current 69,082 322,629
 Income tax paid (13,487) (10,774)
 Net cash flows used in operating activities (725,788) (3,685,751)
     
 Investing activities    
 Proceeds from sale of held-for-trading investments 409,745 8,925,341
 Purchase of property, plant and equipment & intangible assets (6,034) (23,977)
 Purchase of held-for-trading investments (44,878) (264,509)
 (Increase) in prepayments (497,144) (2,612,179)
 Increase/(decrease) in trade & other payables relating to construction costs - (339,596)
 Investment in construction costs (1,058,371) (2,249,136)
 Dividend income - 236,370
 Interest received 63,192 354,955
 Net cash flows (used in)/ from investing activities (1,133,490) 4,027,269
     
 Financing activities    
 Transaction costs of issue of shares (6,564) -
 Proceeds from borrowings 203,993 702,235
 Repayment of borrowings (866,968) (994,834)
 Interest paid (559,680) (449,521)
 Net cash flows (used in) financing activities (1,229,219) (742,120)
 Net (decrease) in cash and cash equivalents (3,088,496) (400,602)
 Net foreign exchange difference 590,927 (2,007,241)
Cash and cash equivalents at 1st April 2009 5,443,352 13,320,738
Cash and cash equivalents at 30th September 2009 2,945,783 10,912,895

 

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Page last up-dated: 7 December 2009