16 January 2023
Panther Securities PLC
(the “Company” or the “Group”)
Trading update and declaration of a special dividend
Trading update for 2022
The year ended 31 December 2022 has been a strong year for the Group.
When we finalise the results for the year, we expect to see a strong increase in the Group’s net asset values, with the fixed interest rate derivatives liability reducing significantly (and becoming an asset), with the improvement being circa £19 million. The Group also expects to see slight improvements to the value of its investment properties, as well as increased revenues. The Group is also pleased with its main purchases in 2022 – including two sizeable industrial investments which cost a combined circa £8.2 million and have a current rental return of £885,000 p.a.
The main improvement to the balance sheet for the Company in 2022 is the complete removal of the liabilities on the Group’s two financial derivatives, which now sit as assets on the balance sheet. The first is at a fixed rate of 2.01% on £25 million with circa nine years to run. The second is at a fixed rate of 5.06% (dropping to 3.40% on 1 September 2023 for the remainder of its term) on £35 million with circa 15.5 years to run. The Board expects these to be good long term hedges given the current market consensus on future interest rates.
The Group’s loan to value with its lenders is under 40% and its actual interest cover is approaching three times on its charged portfolio. The Group also benefits by having an uncharged portfolio with a conservative value of approximately £10 million. With 97% of the Group’s loan interest fixed on long term rates we do not believe we need to be concerned about potential rises in interest rates. The Board considers that this puts the Company in a strong position for the discussions, that we plan to start later in 2023 on our refinance which we need to agree by July 2024, as many lenders will currently be concerned about interest cover which is not an issue for the Group.
In summary, the business is financially comfortable but we appreciate that there is a cost of living crisis. As such whilst we are in a strong position, the Board feels the appropriate response is to return additional funds to our shareholders.
The financial information in this announcement remains subject to audit.
Special dividend
In recognition of the progress made to date, the Board is pleased to confirm that the Company will pay an additional special interim dividend for the year ended 31 December 2023 of 10p per share.
The dividend timetable is set out below:
| Ex-Dividend Date: | 26 January 2023 |
| Record Date: | 27 January 2023 |
| Payment Date: | 10 February 2023 |
For the year ended 31 December 2022, the Company still expects to recommend an additional 6p per share final dividend, to be paid following shareholders’ approval at the Company’s annual general meeting, expected to take place in June 2023. A 6p per share interim dividend was already paid in October 2022.
For further information:
Panther Securities plc: Tel: 01707 667 300
Andrew Perloff / Simon Peters
Allenby Capital Limited (Nomad and Joint Broker) Tel: 020 3328 5656
David Worlidge/ Alex Brearley