All development projects appear to be progressing in line with expectations
Stockwell has given a development update and released its audited FY15 financial accounts. The accounts differ from management estimate figures provided when the bond was issued in June. These estimate figures for FY15 were based on management accounts and prepared by accountancy firm, Williams Hall Chadwick, for the bond offer. The main driver of difference between estimates and actual figures was the auditor’s decision to expense various items rather than capitalise them. This typically reflects timing differences in recognition rather changes to income/expenses and are largely non-cash - therefore not considered problematic.
Management estimates and actual figures are detailed below along with a reconciliation of figures.
| $m | FY15 management | FY15 audited | Difference |
|
Revenue
| 67.8 | 68.0 | 0.2 |
|
EBITDA
|
13.1
|
10.2
|
-2.9
|
|
Net cashflow
|
29.9
|
30.4
|
0.5
|
|
Net profit before tax (reconciled below)
|
10.9
|
2.2
|
-8.7
|
|
Net assets (reconciled below)
|
88.7
|
71.4
|
-17.2
|
|
EBITDA/Interest
|
3.5x |
1.4x | |
|
Debt/Total capital
|
63.0%
|
69.2%
| |
|
Tangible assets/total liabilities |
145%
|
129%
| |
| Reconciliation | Comments | Amount $m |
| NPBT
|
|
Distributions
|
Increased payout to shareholders
|
(1.85)
|
|
Bond issuance costs |
Expensed not capitalised
|
(1.20)
|
|
Interest Income
|
Lower income (capitalised) from director
loans given balance was paid down
|
(1.29)
|
|
Interest Expense
|
Expensed not capitalised and allocated
as development stages were completed
|
(3.45)
|
|
Riverpoint Ferry
|
Non-cash: provisions for defects
|
(0.45)
|
|
Amortisation of Borrowing Costs
|
Non-cash: previously not allowed for
|
(0.48)
|
| Total | (8.71) |
| Net Assets
|
|
Difference explained above
|
(8.71)
|
|
Infrastructure charges
|
Prior period adjustment to reflect
expenses in the period recorded
|
(4.80)
|
|
Widgro Joint Venture carrying value
|
Non-cash adjustment
|
(0.30)
|
|
Deferred tax assets/liabilities
|
Non-cash adjustment
|
(3.20)
|
| Total | (17.02) |
- Gearing was higher than management accounts primarily due to the lower net asset figure. EBITDA interest cover was lower primarily due to the additional $3.45m in interest the auditors decided to expense rather than capitalise against the development
- Again we note that the majority of the changes reflect accounting treatment and did not impact cashflow. Net cashflow for the period was actually slightly higher than expected at $30.4m compared $29.9m
| 1Q16 development update | | |
|
60 Ferry Rd
|
Riverpoint on Ferry
| - 50 residential units
- Completed on time and on budget May 2015
- 100% sold
|
|
43 Forbes St
|
Habitat
(Part of Riverpoint)
| - 151 residential units
- Completed on time and on budget 1Q16
- Circa 90% presold
|
|
51 Ferry Rd
|
Virtuoso
|
- 77 residential units
- Projected completion June 2017
- Circa 30% sold
|
|
399 Montague Rd
|
Muse
|
- 132 residential units
- Projected completion January 2017
- 55% sold
|
|
50 Ferry Rd
| |
- 60 residential units
- pre DA
- Projected completion July 2018 |
- All projects are progressing in line with expectations