UNITE Group plc · LSE:UTG

UNITE — The UNITE Group — Investor Presentation (2005)

15 slides from UNITE's investor presentation, 2005

  1. Slide 1: The UNITE Group plc - IFRS Briefing

    The UNITE Group plc - IFRS Briefing Restated results for year to 31 December 2004

  2. Slide 2: Introduction

    Introduction ƒ UNITE will start reporting its results under IFRS for the year ending 31 December 2005 - First IFRS results will be 2005 interims (September 2005) - 2004 comparatives require restatement - Figures presented are unaudited but have been reviewed by KPMG - Disclosures based on current gu

  3. Slide 3: Main changes

    Main changes Income statement Balance sheet ƒ New definition of profit ƒ Reduction in reported NAV ƒ Inclusion of revaluation gains ƒ Full provision for deferred tax on investment portfolio (£50.8 million at December 2004) ƒ Interest rate swaps marked to market from January 2005 ƒ 2004 loss after ta

  4. Slide 4: Areas of particular focus

    Areas of particular focus ƒ Accounting for investment and development properties (IAS 40, IAS 16) ƒ Accounting for deferred tax (IAS 12) ƒ Hedge accounting (IAS 39) 3

  5. Slide 5: Investment and development properties

    Investment and development properties Current treatment Revised treatment ƒ Completed properties held at open ƒ Completed properties continue to be held market value (SSAP 19) at open market value (IAS 40) ƒ Properties in course of construction held ƒ Investment properties under development at direc

  6. Slide 6: Deferred tax

    Deferred tax Current treatment Revised treatment ƒ Deferred tax on revaluations only ƒ Full provision made for deferred tax on provided if sale contracted, revaluations (IAS 12). Tax charge follows otherwise disclosed only (FRS 19) accounting for the revaluation itself - charge re investment propert

  7. Slide 7: Hedge accounting

    Hedge accounting Current treatment Revised treatment ƒ All debt (fixed and floating rate) ƒ Fixed and floating rate debt remains at carried at amortised cost (FRS 4) amortised cost (IAS 39) ƒ Fair value of derivatives not ƒ Fair value of derivatives booked on balance booked (FRS 13) sheet. Treatment

  8. Slide 8: Other matters affecting UNITE financials

    Other matters affecting UNITE financials Changes Impact ƒ Dividends (IAS 10) – proposed ƒ £1.9m increase in NAV (2 pence per dividend no longer accrued until share) approved ƒ Share based payments (IFRS 2) – ƒ £0.1m reduction in 2004 earnings and - fair value of options and shares £0.2m increase NAV

  9. Slide 9: Other matters – no impact on UNITE

    Other matters – no impact on UNITE Change Impact ƒ IFRS introduces certain changes to lease accounting (IAS 17) - Tenant leases ƒ All tenant leases reviewed and confirmed as operating leases – no financial impact - Head leases. IFRS requires ƒ UNITE has no significant head lease rents capitalisation

  10. Slide 10: Summary of changes to earnings

    Summary of changes to earnings pence per Year ended 31 December 2004 £m share Loss after tax under UK GAAP (3.8) (3.5) IFRS amendments: Transfer revaluation of investment properties to income statement 20.9 19.1 Provide for deferred tax on above, net of indexation allowance 0.2 0.2 Write back unimpa

  11. Slide 11: Summary of changes to NAV

    Summary of changes to NAV pence per As at 31 December 2004 £m share Net asset value under UK GAAP 369.6 332 Full provision for deferred tax (50.8) (46) Restatement developments to OMV 0.7 1 Write back provision for final dividend 1.9 2 Net impact of changes to income statement 0.4 - Net asset value

  12. Slide 12: Adjusted net asset value

    Adjusted net asset value Shareholders’ Number of NAV per funds shares share 31 December 2004 £m millions pence Basic as reported 321.8 111.3 289 Outstanding share options 6.6 4.3 (5) Diluted 328.4 115.6 284 Deferred tax (inc JV) 50.8 - 44 Adjusted 379.2 115.6 328 11

  13. Slide 13: Adjusted earnings

    Adjusted earnings Weighted Earnings average per Earnings no of shares share Year ended 31 December 2004 £m millions pence Basic 17.3 109.5 15.8 Adjustments: Net valuation gains on investment property (20.9) (19.0) Deferred tax (0.2) (0.2) Adjusted (3.8) 109.5 (3.4) 12

  14. Slide 14: Key ratios

    Key ratios December 2004 UK GAAP IFRS Net asset value per share 332p 289p Adjusted net asset value per share 325p 328p Gearing 198% 228% Gearing (excluding deferred tax) 198% 197% Earnings per share (3.5)p 15.8p Adjusted earnings per share (3.5)p (3.4)p 13

  15. Slide 15: Summary

    Summary ƒ IFRS effective for UNITE’s 2005 results ƒ Main changes are: - Full provision for deferred tax - Revaluation of investment properties through income statement - Increased complexity and volatility as a result of hedge accounting rules ƒ Underlying commercial performance unaffected ƒ UNITE w

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