Annual Report 2012 - Cadogan

CHIEF ExECUTIVE’S REVIEW 31 DECEMBER 2012
Balance sheet and Borrowings
The rise in the year end value of our investment properties
was the major factor contributing to the rise in group
shareholders’ funds, which rose from £2.99 billion to
£3.32 billion. Net assets per share increased from £24.90
to £27.64. Balance sheet gearing increased from 14.0%
to 15.2%. Our financial ratios remain healthy and we
continue to maintain significant headroom against the
various covenants and prudential limits required of us by
our bankers and the board.
Year-end net borrowings were £504.3 million, a
substantial increase from the previous year-end figure of
£419.3 million. Most of this increase however arose
shortly before the year end as a result of expenditure on
acquisitions and the payment of dividends.
During the year we renewed our revolving credit facility.
The previous facility amounting to £75 million had been
provided on a sole basis by the Royal Bank of Scotland.
In April 2012 we negotiated a new five year facility with
a consortium comprising the Royal Bank of Scotland and
Lloyds Banking Group and reduced the amount of the
facility to £50 million.
In addition to this committed revolving credit facility we
have also arranged an uncommitted standby facility
amounting to approximately £100 million which is
provided by one of our long-standing private placement
investors. Although the facility is not provided on a
committed basis it gives us cost effective access to funding
which can be drawn at short notice, subject to agreeing
interest rates and margins based on prevailing market rates.
Towards the end of the year we drew £30 million from this
facility, split into two equal tranches of £15 million, one
with a ten year maturity, the other with a fifteen year
maturity. The overall effective interest rate, which was fixed
through to the maturity of the loans, was 3.67%.
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