Annual Report 2012 - Cadogan

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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%. 14
At the year end the group had substantial funds available for future acquisitions. These comprise approximately £70 million of committed facilities and a further £70 million from the uncommitted facility referred to above. We have a balanced profile of future debt maturities extending out to 2056. As at 31 December 2012 our borrowing facilities had an average maturity of 17.8 years and 48% of our total borrowings facilities do not mature for more than 15 years. All of our currently drawn borrowings are at fixed rates of interest, either through direct agreement with the lender or through the use of swaps; the average rate across all our loans is 5.90%. We are proud of and value the relationships we have developed with our long-term lenders. The borrowing strategy which we have developed, which is based on fixed rates of interest and long-term maturities, provides certainty in our financing profile and supports our overall strategy for the business. 15
Page 1 and 2: CADOGAN GROUP LIMITED Annual Report
Page 3 and 4: CHAIRMAN’S STATEMENT 31 DECEMBER
Page 5 and 6: Financial Highlights GROSS RENTS AN
Page 8: CHIEF ExECUTIVE’S REVIEW 31 DECEM
Page 21 and 22: 20 DIRECTORS’ REPORT 31 DECEMBER
Page 23 and 24: INDEPENDENT AUDITOR’S REPORT 31 D
Page 25 and 26: CONSOLIDATED BALANCE SHEET 31 DECEM
Page 27 and 28: COMPANY BALANCE SHEET 31 DECEMBER 2
Page 29 and 30: NOTES ON THE FINANCIAL STATEMENTS 3
Page 47 and 48: FIVE YEAR SUMMARY 31 DECEMBER 2012

Annual Report 2012 - Cadogan

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