Canary Wharf will develop additonal 1.7 mln sq.ft.

Total development now 15.7 mln sq.ft.

The results for the year ended 30 June 2002 demonstrate the groupÂ's continuing strong performance. Turnover increased from £159.2 million in 2001 to £206.8 million for 2002, an increase of 29.9%. The increase in turnover fed through to an increase of £38.5 million in operating profit for the year, before exceptional items, to £130.2 million.

In addition the group recognised a profit of £169.5 million on the planned disposal of 8 Canada Square to HSBC, which was completed in April 2002, and realised deferred consideration of £13.4 million relating to the disposal of an undertaking in 1996. Consequently profit before interest and tax was £310.7 million, £130.2 million excluding exceptional items, against £91.3 million for the previous year.

Profit before tax for 2002 was £203.1 million, or £22.6m before exceptional items, in comparison with £42.5 million for the previous year. This was attributable to the increase in net interest payable (from £48.8 million to £107.6 million) as a result of the securitisations completed in June 2001 and February 2002.

Net assets increased to £1,860.3 million at 30 June 2002, an increase of £263.9 million over the year. Before share buy-backs the increase in the year in net assets was £656.3 million. On the adjusted net asset value basis, which revalues properties under construction and held for development to their net realisable value and adds back the provision for deferred tax, the net asset value per share increased from £6.97 per share at 30 June 2001 to £7.05 per share at 30 June 2002 (before dilution).

Future Development
In December an agreement was reached with British Waterways Board to remove a restrictive covenant affecting the remaining development sites within Canary Wharf. This agreement increases the area of potential development by 1.7 million sq.ft and brings the total permitted development on the original Canary Wharf estate to 15.7 million sq.ft.

We have been working on the infrastructure works and pre-staging to street level for 850,000 sq.ft of development on two sites adjacent to the new Barclays building. Once this work is completed it will be possible to deliver a pre-let to a new tenant in a much reduced timeframe. This reflects our policy of controlling the amount of speculative building underway whilst positioning ourselves to be able to respond rapidly to client needs.

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(source: Canary Wharf)

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