Annual Report 2012 - Cadogan

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Contents Chairman’s Statement Directors and Secretary Financial Highlights Chief Executive’s Review Directors’ Report Independent Auditor’s Report Consolidated Profit and Loss Account Consolidated Balance Sheet Other Principal Statements Company Balance Sheet Consolidated Cash Flow Statement Notes on the Financial Statements Five Year Summary 1 2 3 4-18 19-20 21 22 23 24 25 26 27-44 45
CHAIRMAN’S STATEMENT 31 DECEMBER 2012 VisCount Chelsea I took over as chairman of Cadogan Group Limited from my father in March 2012. Since then I am delighted that the group has continued to prosper and 2012 has proved to be a successful year in which to have taken over the reins of our business. The eyes of the world were focused on London in 2012. The Queen's Diamond Jubilee celebrations, the Olympics and the Paralympics were all successful and greatly acclaimed. The great sense of history and tradition, for which London has always been known, married perfectly with London's modern cosmopolitan culture and ethnic diversity to produce truly memorable events again and again. While the sporting and cultural events of 2012 took centre stage, the economic backdrop provided continuing strong support to activity levels and market sentiment. London’s broad international investment appeal has proved a great strength, enhanced by its status as an international ‘safe haven’, and by the continuing weakness and wobbles of the Eurozone. Each renewed bout of economic fragility in Europe or political instability in the Middle East has only added to the perceived attractions of London. These factors have contributed to the desirability of London as a place in which to work, to live and to operate a business. They help to generate continuing healthy levels of occupational demand for both residential and commercial properties. Thus the property market in central London has flourished with yields remaining firm and with high levels of investment and occupational activity. Again the strength of the property market in London has been in marked contrast to much of the rest of the UK, where the lack of any consistent growth in the economy and a depressed property market have produced poor returns and minimal activity levels. With all our property interests focused in central London and specifically in Chelsea and Knightsbridge, I am therefore able to present another successful set of results for 2012. The total value of our properties reached £3.88 billion, gross rental income £104.7 million and profit before taxation was £57.3 million. This is less than the profit before taxation figure we reported last year of £71.6 million, but the reduction largely reflects a lower write back of £3.9 million (2011 - £16 million) from the release of provisions made previously against the value of our investment properties. In spite of the gloomy prognosis for the broader UK economy, the outlook for London remains positive. There will come a time when the property market in the UK regions starts to recover, but there is no reason to expect that that will of itself damage London's prospects. We believe that our attractive locations and clear strategic priorities will enable our business to continue to prosper in the years ahead. I was delighted to announce at the end of 2012 that Francis Salway had agreed to join the board as a non-executive director. As former Chief Executive of Land Securities and a non-executive director of Next plc, Francis brings immense experience and judgement which we are already benefitting from greatly and which augment the considerable talents provided by the rest of the board. I have very much enjoyed my first year as chairman of Cadogan, and I am extremely grateful to my fellow directors and all our staff, led by Hugh Seaborn, for the guidance and assistance which they have given me over this time. Viscount Chelsea 25 April 2013 VisCount Chelsea 1
Page 1: CADOGAN GROUP LIMITED Annual Report
Page 5 and 6: Financial Highlights GROSS RENTS AN
Page 8: CHIEF ExECUTIVE’S REVIEW 31 DECEM
Page 16 and 17: CHIEF ExECUTIVE’S REVIEW 31 DECEM
Page 21 and 22: 20 DIRECTORS’ REPORT 31 DECEMBER
Page 23 and 24: INDEPENDENT AUDITOR’S REPORT 31 D
Page 25 and 26: CONSOLIDATED BALANCE SHEET 31 DECEM
Page 27 and 28: COMPANY BALANCE SHEET 31 DECEMBER 2
Page 29 and 30: NOTES ON THE FINANCIAL STATEMENTS 3
Page 47 and 48: FIVE YEAR SUMMARY 31 DECEMBER 2012

Annual Report 2012 - Cadogan

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