Business
Interim Results - 6 Months to 31 December 1999
Interim Results - 6 Months to 31 December 1999.
About this update from Conduit Holdings Ltd.
[{"type":"text","content":"\n Creston PLC\n28 April 2000\n\n\nInterim Results for the six months ended 31 December 1999\n\n\nChairman's Statement\n\nThe results for the six months ended 31 December 1999 are shown in the\nattached profit and loss account, statement of total recognised gains and\nlosses, and balance sheet. The background to the results for the six month\nperiod is that a change of strategy was announced by the board on 18 October\n1999 to realise the group's assets and return the proceeds to shareholders in\na tax efficient manner. As a result of this change of strategy, a disposal of\nall of the portfolio, with the exception of one property ('Dougalston'), to\ncompanies within the Ashtenne Holdings PLC ('Ashtenne') group was agreed. \nDetails of this disposal were set out in a circular to shareholders on 16\nFebruary 2000. The disposal was approved by shareholders at an Extraordinary\nGeneral Meeting on 3 March 2000 and completion of the sale occurred on 7 March\n2000, with the exception of the group's property in Telford. This was because\nthe sales of some of the properties to Ashtenne were conditional upon specific\nmatters in relation to the individual properties, as set out in the circular,\nand not all conditions in relation to Telford have yet been settled. I am\nhopeful that the sale of this property will become unconditional in the near\nfuture enabling the final tranche of the sales price from Ashtenne of\n£2,800,000 to be received. \n\nTwo significant accounting adjustments in the accounts for the six months\nended 31 December 1999 have arisen as a result of the change of strategy. \nFirst, the group's portfolio has been revalued based on the prices achieved\nupon their disposal to Ashtenne. Because of the sale, accounting standards\nrequire that the full loss on properties carried below cost must be charged to\nthe profit and loss account whereas surpluses over cost are accounted for in\nthe statement of total recognised gains and losses. Provision has also been\nmade in the profit and loss account for costs relating to the sale of the\nportfolio. Secondly, the sale represents a termination of the group's\nproperty activities and costs incurred after 31 December 1999, but which\nrelate to the termination, have been accrued in these accounts. Details of\nthe exceptional costs are given in the attached notes to the accounts.\n\nA...