Annual Report 2012 - Cadogan
Annual Report 2012 - Cadogan Annual Report 2012 - Cadogan
CHIEF ExECUTIVE’S REVIEW 31 DECEMBER 2012 21 Prospects There is no doubt that the success of London as a world city contributes to our performance. On a range of measures London has done well. Economic forecasts are generally positive, suggesting that, subject to further significant deterioration in the economy, it will continue to do so, supported by continued growth in the TMT and professional services sectors, and further ahead we can also expect a gradual recovery in financial services. The UK economy faces many challenges and growth rates are unlikely to be as strong as prior to the financial crisis. However, we have a high quality portfolio concentrated on luxury retail and high end residential, which is very attractive to occupiers, the advantage of being able to manage the parts for the benefit of the whole Estate, a high calibre team and a very strong financial structure that supports our business objectives. We remain committed to our long term strategy of developing and enhancing the Estate and I firmly believe that our focus on our existing assets, delivery of quality accommodation and service to meet the needs of our customers, remain the right approach for long term success. Hugh Seaborn 25 April 2013 18
20 DIRECTORS’ REPORT 31 DECEMBER 2012 The directors present their report and the financial statements for the year ended 31 December 2012. Principal activity and Review of the Business The principal activity of the group during the year continued to be property investment. The group’s other activities include the operation of hotels and a concert hall. A review of the group’s business during 2012 and its future prospects is contained in the Chief Executive’s review on pages 4 to 18. Results and Dividends The consolidated profit and loss account set out on page 22 shows a profit attributable to the shareholders for the year of £49,118,000 (2011 – £60,885,000). Interim dividends of £34,000,000 (2011 – £30,000,000) equivalent to 28.3p per ordinary share (2011 – 25p per ordinary share) were declared and paid during the year. Risk Management A summary of the principal risks and uncertainties has been included in the Chief Executive’s review on page 16. Directors Earl Cadogan stepped down as a director on 26 March 2012 on the occasion of his retirement as Chairman of the company and Lord Churston retired as a director on 4 April 2012. F W Salway was appointed a director on 6 December 2012. All the other directors holding office during the financial year and up to the date of this report are listed on page 2. The ultimate holding company maintains liability insurance for its directors and officers and for those of its subsidiaries in respect of proceedings brought by third parties, subject to the conditions set out in section 234 of the Companies Act 2006. Such qualifying third party indemnity provision remains in force as at the date of approving the directors’ report. Directors’ interests The directors’ interests in the shares of the company at 31 December 2012 were as follows: Non-beneficial 31 December 2012 31 December 2011 The Earl Cadogan Ordinary shares of £1 each 10,275,547 10,275,547 Viscount Chelsea Ordinary shares of £1 each 4,982,083 4,982,083 Viscount Chelsea also held a beneficial interest in 5,000,000 (2011 – 5,000,000) ordinary shares of £1 each in the ultimate holding company. In addition, the children of Viscount Chelsea are amongst the beneficiaries of trust funds which held 28,435,000 (2011 – 28,435,000) ordinary shares of £1 each in the ultimate holding company and 7,710,367 (2011 – 7,710,367) ordinary shares of £1 each in Cadogan Group Limited. The interests of the Hon. J H M Bruce, C V Ellingworth, J D Gordon and J A de Havilland are disclosed in the financial statements of the ultimate holding company. Charitable Contributions The group’s charitable contributions for the year were £151,000 (2011 – £45,000). In addition, the Cadogan Charity, a shareholder in the company, makes donations to a variety of local and national charities. 19
- Page 1 and 2: CADOGAN GROUP LIMITED Annual Report
- Page 3 and 4: CHAIRMAN’S STATEMENT 31 DECEMBER
- Page 5 and 6: Financial Highlights GROSS RENTS AN
- Page 8: CHIEF ExECUTIVE’S REVIEW 31 DECEM
- Page 12: CHIEF ExECUTIVE’S REVIEW 31 DECEM
- Page 16 and 17: CHIEF ExECUTIVE’S REVIEW 31 DECEM
- Page 18: CHIEF ExECUTIVE’S REVIEW 31 DECEM
- 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 31 and 32: NOTES ON THE FINANCIAL STATEMENTS 3
- Page 33 and 34: NOTES ON THE FINANCIAL STATEMENTS 3
- Page 35 and 36: NOTES ON THE FINANCIAL STATEMENTS 3
- Page 37 and 38: NOTES ON THE FINANCIAL STATEMENTS 3
- Page 39 and 40: NOTES ON THE FINANCIAL STATEMENTS 3
- Page 41 and 42: NOTES ON THE FINANCIAL STATEMENTS 3
- Page 43 and 44: NOTES ON THE FINANCIAL STATEMENTS 3
- Page 45 and 46: NOTES ON THE FINANCIAL STATEMENTS 3
- Page 47 and 48: FIVE YEAR SUMMARY 31 DECEMBER 2012
CHIEF ExECUTIVE’S REVIEW 31 DECEMBER <strong>2012</strong><br />
21<br />
Prospects<br />
There is no doubt that the success of London as a world<br />
city contributes to our performance. On a range of<br />
measures London has done well. Economic forecasts are<br />
generally positive, suggesting that, subject to further<br />
significant deterioration in the economy, it will continue<br />
to do so, supported by continued growth in the TMT and<br />
professional services sectors, and further ahead we can<br />
also expect a gradual recovery in financial services.<br />
The UK economy faces many challenges and growth rates<br />
are unlikely to be as strong as prior to the financial crisis.<br />
However, we have a high quality portfolio concentrated<br />
on luxury retail and high end residential, which is very<br />
attractive to occupiers, the advantage of being able to<br />
manage the parts for the benefit of the whole Estate, a high<br />
calibre team and a very strong financial structure that<br />
supports our business objectives.<br />
We remain committed to our long term strategy of<br />
developing and enhancing the Estate and I firmly believe<br />
that our focus on our existing assets, delivery of quality<br />
accommodation and service to meet the needs of our<br />
customers, remain the right approach for long term success.<br />
Hugh Seaborn<br />
25 April 2013<br />
18
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