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The Ethical Property Company

Financial Performance

For the year ended 30th September 2019

For 2019 Ethical Property Company (EPC) is reporting a pre-tax profit of £1,275k, £386k higher than prior year. This represents the first step towards the increased profitability that will be achieved once The Green House and Streamline are both fully let.

Operating loss

The operating profit or loss shows the income generated by the business before property revaluations, interest payable and other non-core income and expenditure. The operating was £224k compared to the profit of £384k last year.

The operating profit was reduced due to increased expenditure on building maintenance and IT infrastructure. Also fixed costs were increased with the addition of two buildings, income will increase as we aim to fill the additional 38,000 square feet of lettable space.

Return on Book Cost on average for existing buildings remains at 7.6%. The new buildings are currently achieving 1% which will improve with increased occupancy.

Share Performance on Ethex

The share price has remained stable over the year with an average trade price of £1.08. Over the year, 220,866 shares were bought and sold in a total of 33 trades. At the end of the year, 5,500 shares were waiting to buy at £1.07, and 35,850 shares were waiting to be bought at prices ranging from £1.00 to £1.15. The net asset value (NAV) of shares at 30 September 2019 was £3.04. Shares are trading at a discount to NAV of 64%.

The liquidity scheme was approved by shareholders at the EGM in November 2019 to address this discount. The liquidity scheme will purchase shares from existing shareholders at a more realistic price and improve the speed of trades. The liquidity scheme will be able to sell shares when buyers exceed sellers. The aim will be to reduce the discount to NAV and bring the share price closer to the issue price of the next share raise. The liquidity scheme will be available from late 2020 and will be administered by Ethex.

At the EGM in November 2019, the resolution to become a public limited company was passed. However, EPC does not plan to list on a public stock exchange such as LSE or AIM. This will safeguard the organisation’s mission as a triple bottom line company.

Revenue and net profit

These graphs give you a snapshot of how the business has performed over the last 9 years. Revenue, which is sometimes also called turnover, shows you how much money the business has brought in every year for the last five years. The net profit graph shows you how much of that money ended up as profit after all of the costs of running the business, and after tax. Read more

Profit and loss summary

The profit and loss summary table shows how profitable the business has been over the last year. Read more

Turnover 4,843 4,636
Gross profit 1,879 2,087
Administrative expenses (2,066) (1,524)
Operating (loss) / profit (224) 384
Profit on ordinary activities before exceptional items, taxation, fair value, interest swap and investment movement (940) 626
Tax on profit on ordinary activities (151) 356
Profit for the financial year 1,124 1,245

Balance sheet summary

The balance sheet of a business gives you a picture of everything the business owns. It shows you all the cash the business has received and what it has done with it. Read more

Total assets less current liabilities 54,899,000 65,035,000
Total liabilities (27,048,000) (22,592,000)
Net assets 45,308,000 45,106,000

Returns and value

The returns indicators show you how much return the business is making from all the money it has. A higher return means a more profitable business and more money for the shareholders. Read more

The share and asset value indicators are designed to help you understand better what the shares of the business might be worth. Read more

Returns indicators Share and asset value
Most recent dividend 3.5 pence Last traded price Read more
Earnings per share 7.5 pence Net asset value per share £3.04

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