Half Year Results for the period to 30 September 2023

Walls & Futures REIT plc (“WAFR”) the Ethical Housing Investor and developer, is pleased to announce its unaudited interim results for the six months to 30 September 2023. 

Highlights 

  • Net Asset Value (NAV) down 2% to 87p per share (31 March 2023 – 89p per share)
  • Property assets increased by 2.4% (£60,000)
  • Profit of £45,508 (30 September 2022 – Loss of £36,749)
  • 100% of Specialist Supported Housing rents collected

 Chief Executive’s Statement

“I am pleased with the overall performance of our property portfolio, with 100% of rents being collected along with a slight increase in value due to inflation-linked rent increases.

The management team have been working with Vengrove to finalise the restructuring process and raise fresh capital. We had hoped to conclude a significant transaction before Christmas. The stabilised, income-producing portfolio with an estimated value of £10m would have increased our scale significantly and enabled us to move quickly to paying a dividend. Unfortunately, the final due diligence process raised issues we could not overcome.

During 2024, we intend to raise an initial £10m, which will be invested into a portfolio of Social Infrastructure Assets to ensure a dividend can be paid. The medium-term plan is to strengthen the existing board of directors in preparation for an institutional fundraise of £200m and a move to the main market. 

Our investment strategy will be focused on foundational assets that support the quality of life in regional and local communities. We consider the key pillars to be; 

  1. Affordable Housing – Affordable rent & shared ownership
  2. Education – Children’s nurseries, special education needs & schools
  3. Roadside & Transport – EV charging hubs, car parks& bus depots
  4. Civic, Community & Justice – Libraries, community hubs, law courts & recycling facilities

Our long-term goal is to grow Social Infrastructure REIT into a £1bn plus market-leading public vehicle providing critical community infrastructure, long-term sustainable inflation-linked income, and strong liquidity with defence cashflow from a diversified tenant base.”

Joe McTaggart
Chief Executive

Consolidated Income Statement

For the Six-Month Period to 30 September 2022

 

6 Months to

30 September
2023

6 Months to

30 September 2022

Year ended

31 March

2023

 

 

£

 

£

£

 

Rent received

                        62,407

                        57,699

                        115,398

Cost of sales

Gross Profit

62,407

57,699

115,398

 

 

 

 

Increase in property values

60,000

(250,000)

Other Income

3,569

332

Administrative Expenses

(79,485)

(94,334)

(239,033)

Depreciation

____________

____________

____________

OPERATING PROFIT/(LOSS)

46,491

(36,303)

(373,635)

Exceptional item

Interest receivable and similar income

1,749

Interest payable

(305)

(383)

(558)

____________

____________

____________

PROFIT/(LOSS) BEFORE TAXATION

46,186

(36,686)

(472,443)

Taxation

678

63

332

 

 

 

 

Loss on disposal of fixed assets & depreciation

____________

____________

____________

PROFIT/(LOSS) FOR THE FINANCIAL PERIOD

45,508

(36,749)

(472,775)

 

 

 

 

Other comprehensive income

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

45,508

(36,749)

(472,775)

 Consolidated Balance Sheet

30 September 2022

 

30 September 2023

30 September 2022

31 March 2023

 

£

£

£

£

£

£

 

 

 

 

 

 

 

 

 

FIXED ASSETS

 

 

 

 

 

 

 

Investment Property

 

2,560,000

 

2,750,000

 

2,500,000

 

Investments

 

1

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

Cash at Bank

753,335

 

829,352

 

756,524

 

 

Debtors and Prepayments

5,642

 

117,350

 

13,493

 

 

 

 

 

 

 

 

 

 

CREDITORS

 

 

 

 

 

 

 

Amounts falling due within one year

(39,062)

 

(20,248)

 

(31,592)

 

 

 

 

 

 

 

 

 

 

NET CURRENT ASSETS

 

737,425

 

926,454

 

737,425

 

TOTAL ASSETS LESS CURRENT LIABILITIES

 

3,237,426

 

3,676,454

 

3,237,426

 

 

 

 

 

 

 

 

 

Provision for Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Amounts falling due over one year

 

(10,000)

 

(16,000)

 

(13,000)

 

 

 

 

 

 

 

 

 

NET ASSETS

 

3,269,936

 

3,660,454

 

3,224,426

 

 

 

 

 

 

 

 

 

CAPITAL AND RESERVES

 

 

 

 

 

 

 

Called up share capital

 

187,754

 

187,754

 

187,754

 

Share Premium

 

3,505,154

 

3,505,154

 

3,505,154

 

Fair Value Reserve

 

1,226,019

 

1,416,019

 

1,166,019

 

Retained Earnings

 

(1,648,992)

 

(1,448,473)

 

(1,634,501)

 

 

 

3,269,936

 

3,660,454

 

3,224,426

 

Consolidated Cash Flows
For the Six-Month Period to 30 September 2023

 

30 September

2023

30 September

2022

31 March

2023

 

£

£

£

Cash flows from operating activities

 

 

 

Cash generated from operations

(3,516)

(116,928)

(64,682)

Interest paid

(224)

(301)

(558)

Tax paid

Net cash from operating activities

(3,740)

(117,229)

(65,240)

 

Cash flows from investing activities

 

 

 

Purchase of investment property

Sale of tangible fixed assets

Sale of fixed asset investments

Sale of investment property

Development costs recognized in c/year

(123,324)

Interest received

3,569

332

1,749

Net cash from investing activities

5,569

332

(121,485)

 

Cash flows from financing activities

 

 

 

New loans in year

Loan repayments in year

(3,000)

(3,000)

(6,000)

Share issue

Share buyback

Net cash from financing activities

(3,000)

(3,000)

(6,000)

 

 

 

 

Increase/(decrease) in cash and cash equivalents

(3,171)

(119,897)

(192,725)

Cash and cash equivalents at beginning of period

756,524

949,249

949,249

Cash and cash equivalents at end of period

753,353

829,352

756,524

 The above figures have not been reviewed by the Company’s auditors.

The Directors of the issuer accept responsibility for the contents of this announcement.

For further information, contact:

Walls & Futures REIT PLC                                                       0333 700 7171

Joe McTaggart, Chief Executive

Allenby Capital Limited (Corporate Adviser)                               

Nick Harriss/James Reeve                                                          020 3328 5656