14 December 2009

O TWELVE ESTATES LIMITED

("O Twelve" / the "Company"/ the "Group")

UNAUDITED HALF YEARLY RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

O Twelve Estates Limited today announces results for the six months ended 30 September 2009. The Company's objective is to generate an attractive return for Shareholders through the assembly of a portfolio of investment properties in its Target Area, which comprises the Thames Gateway and the adjacent areas of east London, Essex, south Hertfordshire and north Kent.

Key points

• Property valuation of £171.5 million (30 September 2008: £232.9 million, 31 March 2009: £173.6 million)

• Capital value decreased by only 0.4% on like-for-like basis; IPD All Property Monthly Index reported capital value fall of 3.5% for the same period

• Profit before tax of £2.97 million (30 September 2008: loss of £16.81 million, 31 March 2009: loss of £92.12 million)

• Consolidated net liabilities of £4.5 million, 3.65 pence per share (30 September 2008: assets of £68.0 million, 55.55p, 31 March 2009: liabilities of £7.4 million, 6.03p)

• Consolidated net assets, before adjusting for the fair value of the interest rate swap, of £11.07 million, 9.03p per share (30 September 2008: £70.80 million, 57.79p per share, 31 March 2009: £10.86 million, 8.87p per share)

• Revised borrowing arrangements completed providing the Company with improved flexibility

• Prudent cash and cost management. Asset management fees reduced by 58% to £0.5 million (30 September 2008: £1.3 million, 31 March 2009: £2.4 million)

• Strong letting activity with 11 new lettings agreed totalling 157,000 sq ft and generating £840,000 of annual rental income. Void rate reduced from 12.5% at 31 March to 9.4% at 30 September 2009 

• Further 74,000 sq ft of lettings in solicitors' hands which, if all completed, represent a further reduction in the void rate to 6.7%

• £1.6 million per annum of potential income through the letting up of additional voids
  

• Good existing letting profile with 53% of income derived from leases with more than five years to expiry

Commenting on the results, Phillip Rhodes, Chairman of O Twelve, said:

"There are signs that the unprecedented falls in UK property valuations over the past two years have now bottomed-out, although the extent and duration of the present rally in capital values remains highly uncertain. However, with the assistance of our Property Advisers, and the support of our lenders, your Board will continue its focus on cash preservation and generation and portfolio management to ensure the long-term prospects of the Group and increase shareholder value."

David Tye of Rugby Asset Management added:

"Whilst prospects for the real estate market generally now appear to be improving, we believe that O Twelve's Target Area is looking forward to a particularly bright future. The Olympic Games are approaching quickly and we are now starting to see the effect of the unprecedented public and private investment driving Europe's largest single regeneration project around Stratford, London's East End and the Thames Gateway. This, coupled with the Target Area's historically low capital and rental base values augurs well for future growth."

For further information please contact:

David Tye / Andrew Wilson

Rugby Asset Management Limited

Tel: +44 (0)20 7016 0050

Jeremy Porter / Simon Bennett / Laura Littley

Fairfax I.S. PLC

Tel: +44 (0)20 7598 5368

Stephanie Highett / Rachel Drysdale / Dido Laurimore

Financial Dynamics

Tel: +44 (0)20 7831 3113

CHAIRMAN'S STATEMENT

I am pleased to present the results of O Twelve Estates Limited together with its subsidiaries for the six months ended 30 September 2009.

The global financial crisis has had a significant impact on property values.  Capital values for UK commercial properties generally, which were down 30% for the year ended 31 March 2009, appear to have bottomed-out during the period under review. Continuing value falls from April to July reversed and started to deliver increases in August and September, with the end result being the IPD All Property Monthly Capital Value Index reporting an overall fall of 3.5% for the six months ended 30 September 2009.  

At 30 September 2009, the Group's property investment portfolio was valued by CB Richard Ellis ("CBRE") at £171.5 million (31 March 2009: £173.6 million). After taking into account capital expenditure and the disposal of three vacant units at Redwing Court, the like-for-like fall of just 0.4% in the six months ended 30 September 2009 compares favourably with the 3.5% fall for UK commercial properties generally for the same period. The rental value of the portfolio has decreased by 4.3%, matching the IPD All Property Monthly Index over the same period.

Results

The Group reported a net profit for the six months ended 30 September 2009 of £2.9 million (30 September 2008: loss of £16.9 million, 31 March 2009: loss of £92.3 million), representing a profit per Ordinary Share of 2.38p (30 September 2008: loss of 13.77p, 31 March 2009: loss of 75.34p).  The consolidated net liability at 30 September 2009 was £4.5 million (31 March 2009: net liability of £7.4 million), being a net liability per Ordinary Share of 3.65p (31 March 2009: net liability per Ordinary Share of 6.03p).  Consolidated net assets, before adjusting for the fair value of the interest rate swap, was £11.07 million, 9.03p per share (30 September 2008: £70.80 million, 57.79p per share, 31 March 2009: £10.86 million, 8.87p per share).

The Company was established to take advantage of the urban regeneration and infrastructure projects taking place in the Target Area and for which the 2012 Olympic Games are a major catalyst. Letting activity over the past six months has been very positive, with 11 new lettings totalling 157,000 sq ft completed and generating nearly £840,000 of annual income, thus reducing the void rate from 12.5% of estimated rental value at 31 March 2009 to 9.4% at 30 September 2009. If lettings which have been agreed and are currently in solicitors' hands are completed, the void rate would reduce further to 6.7%. This activity confirms the underlying resilience of the Group's Target Area.

In line with the Board's aim of reducing costs and in light of the current economic environment, a number of changes were made to the terms of the Property Adviser Agreement ("PAA") with Rugby Asset Management Limited.  The combination of these revised terms, which took effect from 1 April 2009, and the lower property valuations on which the fee is calculated, reduced management fees by 58% from £1.3 million to £0.5 million for the period ended 30 September 2009, compared to the same period in 2008.

As I have noted before, despite the ongoing difficult market conditions it is heartening to see that, where we can influence and control matters, your Group's efforts are showing some positive outcomes.

Financing

On 14 October 2009, the loan facility with Nationwide Building Society and the other lenders was successfully restructured. The revised loan terms, which are substantially the same as those agreed in principle as reported in the Group's results announcement on 15 July 2009, are as follows:

• The term of the facility until December 2014 is unchanged;

• The facility will reduce to £140 million on 31 March 2011;

• The interest margin over LIBOR has been increased from 0.65% per annum to 1.25% per annum;

• An arrangement fee of £850,000 was paid on signing;

• A fee of £5,950,000 will be payable on final repayment of the facility;

• The LTV covenant will not be tested until the lenders receive the portfolio valuation as at 31 March 2011, at which time the LTV must not exceed 85%, reducing to 80% from 31 March 2012 and 75% from 31 March 2013;

• The minimum interest cover ratio is 115% provided that, if rent free periods are treated as rent passing the ratio will be at least 120% until 31 March 2011, increasing to 120% thereafter; and

• Cash lock-up will continue until the LTV is 70% or less. However, after deducting finance costs, direct property outgoings and property management fees, the lenders will allow the Group to receive up to £400,000 per quarter to cover overheads, tax and other property expenses.

As the loan facility was not restructured until after the end of the period, the borrowings were designated as a current liability at 30 September 2009.

Taking into account the arrangement and exit fees payable in connection with the restructuring, the blended cost of borrowings is currently approximately 6.7% per annum. The interest cover ratio was 129% when last tested on 26 October 2009.

Going Concern

Following the successful completion of the financial restructuring and on the basis of the Group's current expectations and projected cash flows, your Board believes the Group will be able to satisfy its working capital requirements for at least the next twelve months, and will not be required by its lenders to make early settlement of its outstanding loans. Your Board has therefore concluded that it is appropriate to continue to adopt the going concern basis in preparing the half yearly financial statements.

Dividend

Given the ongoing economic uncertainty and in view of the Group's financial position, the Board is not recommending the payment of a dividend (31 March 2009: nil). 

Outlook

There are signs that the unprecedented falls in UK property valuations over the past two years have now bottomed-out, although the extent and duration of the present rally in capital values remains highly uncertain. However, with the assistance of our Property Advisers, and the support of our lenders, your Board will continue its focus on cash preservation and generation and portfolio management to ensure the long-term prospects of the Group and increase shareholder value.

Phillip Rhodes

Chairman

11 December 2009

PROPERTY ADVISER'S REPORT

Rugby Asset Management

Rugby Asset Management Limited ("RAM"), a member of the Rugby Estates Plc group, was appointed Property Adviser to O Twelve Estates Limited ("O Twelve" or the "Group") on its admission to AIM on 27 March 2006. Our role is to identify property opportunities for recommendation to and consideration by the Board of the Company and to negotiate on its behalf. We undertake, on a day to day basis, under delegated authority from the Board, all aspects of assembling, managing and financing O Twelve's property portfolio. Rugby Estates Plc also holds a 5.5% interest in O Twelve Estates Limited.

Market Comment

In the four months to July 2009 capital values continued to fall, with the IPD All Property Monthly Index showing that values fell by a further 4.8% from March. However, this trend changed in August 2009 with a rise of 0.2%, ending twenty five consecutive months of downward price correction. When we last reported in July, we expected that values would stabilise in either the latter part of 2009 or early 2010. This stabilisation has now started to take place, with capital values starting to rise. In September, the IPD Monthly Index reported an increase in capital values of 1.13%, followed by a further rise in October of 1.9%. This trend is expected to continue for the remainder of 2009.

The occupational market remains challenging and is, as we expected, lagging the recovery in the investment market. One of our principal aims at the start of the year was to maximise the cashflow with a particular focus on minimising voids and reducing associated property outgoings. Since March we are pleased to report that 157,000 sq ft of vacant space has been let with eleven new leases and the void rate within the portfolio has fallen from 12.5% to 9.4%, a 25% reduction. Contracted annual rent from these lettings is nearly £840,000 once relevant rent free periods expire.  By contrast, only seven new leases, covering a total of 58,000 sq ft, were completed in the entire twelve months to 31 March 2009.

Portfolio Review as at 30 September 2009

• Valuation £171.51 million
  
  

• 22 properties, having an average lot size of £7.8 million 
  
  

• Contracted annual rental income is £14.4 million

• Estimated rental value ("ERV") is £16.6 million per annum, thus additional potential rental income from reversions and letting vacant units is £2.2 million per annum (17% reversionary)

• 203 separately lettable units* 

• 172 units are let to 149 tenants*

• 31 units are vacant and available for letting with an ERV of £1.6 million per annum*

• 53% of income is from leases with more than five years to expiry 
  
  

• Weighted average unexpired lease term is 6.4 years

* Excluding long leasehold ground rents and assured shorthold tenancies

Capital Value Split by Sector

Industrial

40%

Retail

36%

Offices

20%

Residential

4%

Valuation

The external valuation of the Group's properties as at 30 September 2009 was £171.51 million. On a like-for-like basis, after taking into account capital expenditure and disposals, the value of the portfolio fell during the last six months by just 0.4%. This compares positively with the IPD Monthly All Property Capital Value Index, which showed a fall of 3.5% over the same period.  All sectors of the O Twelve portfolio performed better than the corresponding fall in the IPD index. The best performing sector within the portfolio was retail which increased in value by 1.7% over the period compared with a fall of 3.1% for the retail sector in the IPD Monthly Index.

The equivalent yield for the portfolio has reduced by 48 basis points over the period from 9.0% to 8.5%. This compares with an average equivalent yield for the IPD Monthly Index of 9.1% at September, which has reduced by 8 basis points over the six months to September.

Capital Value Movement compared to IPD Monthly Index

O Twelve

IPD

All Property

-0.4%

-3.5%

Retail

1.7%

-3.1%

Office

-4.5%

-4.8%

Industrial

-0.2%

-2.7%

Rental value levels within the portfolio decreased, by 4.3%, on a like-for-like basis, exactly in line with the IPD All Property Monthly Index which also showed a fall of 4.3% over the same period.

Rental Value Movement compared to IPD Monthly Index

O Twelve

IPD

All Property

-4.3%

-4.3%

Retail

-4.0%

-3.8%

Office

-4.9%

-6.3%

Industrial

-4.3%

-2.6%

Reversion by Sector

ERV £ million

Rent £ million

Retail

6.2

5.7

Office

3.1

2.9

Industrial

6.8

5.3

Residential

0.5

0.5

Activity

No acquisitions were made during the period.

Three vacant units at Redwing Court were sold for an aggregate of £1.8 million, 7.5% below the March valuation.  

Once again, our focus has been on asset management and we are delighted to report that eleven new leases have been contracted over the period, accounting for 157,000 sq ft and nearly £840,000 of annual rental income after rent free periods. Particularly:

• At the Interchange, Swanley, Unit 3 was let and an agreement for lease completed at Unit 1a (the lease completed on 2 October 2009); Unit 4 is under offer and due to complete soon, taking the amount of space let since March 2009 to over 73,000 sq ft.

• An agreement for lease was reached on 83,000 sq ft at Larkfield Mill to All Saints, the fashion retailer, adding over £330,000 per annum to the rent roll after a rent free period. The actual lease was completed after 30 September.

• A self contained office suite at Redwing Court, Romford was let to ADT Security and only a single vacant unit remains following the comprehensive refurbishment scheme.

Five rent reviews have been concluded over the period realising just under £90,000 of reversionary income. The rents achieved on these reviews reflect a 20% increase on the rental income prior to the review and a premium of 8% over our valuer's opinion of rental value at March.

Despite a generally difficult occupational market some 74,000 sq ft remains under offer and good progress continues to be made in reducing the void rate.

Rental Value Analysis - 30 September 2009

£ million

Current annualised income

13.8

Rent free periods

0.6

Total contracted rent

14.4

Available for letting

1.6

Reversions

0.6

Estimated rental value

16.6

Void Analysis

Due to the success in letting activity over the period the void rate within the portfolio has reduced by 25% since March 2009 and at 30 September stood at 9.4% by rental value. The rental value of vacant space at 30 September was £1.6 million of which £0.5 million was under offer. Assuming these potential lettings complete the void rate will fall to 6.7%. During the coming year our focus will continue to be on reducing the void rate further and minimising associated void costs.

Income Security

Given the current uncertainty in the economy and in the wider banking and financial markets, investors are increasingly focusing on security of income and tenant covenant strength. Some 53% of current rental income is contracted for more than five years. Where leases have less than five years to run, opportunities exist to refurbish or consider changes of use in order to maximise value. In our view the portfolio offers a good balance between income security and opportunities to add value.

Rent Collection

Despite the difficult trading conditions the rent collection statistics remain encouraging with an average of 96% of rental income collected within the quarter. There has been no significant change in the rate of rent collection in the last four quarters. Maintaining a high level of rent collection remains one of our key objectives.

Income Expiry Profile - 30 September 2009

Less than 5 years

47%

5 to 10 years

27%

More than 10 years

26%

Of the portfolio's 149 tenants, 20 account for 53% of the contracted rental income with the top 10 accounting for 37%. Tenants of, in our view, undoubted or of a "national" standard account for 81% of the contracted rent, while smaller regional and local businesses account for 19% of the contracted rent.

Tenant Covenant Strength by Contracted Rent

Grade A (very strong)

36%

Grade B (national)

45%

Grade C (regional)

9%

Grade D (local)

10%

Tenants in the portfolio include:

Bank of New York Mellon

Sainsbury Supermarkets Ltd

Chelmsford Star Co - Operative Society Ltd

Secretary of State

Chubb Electronic Security Ltd

Smyths Toys Ltd

Coutts Retail Communications Ltd

Somerfield Stores Ltd

GE Transportation Systems Ltd

Staples

Halfords

Target Express Parcels Ltd

Hitachi Kokusai Electric UK Ltd

Telford Homes plc

London Eastern Railways Ltd

Toyota Tsusho Automobile London Holdings Ltd

Moss Bros Group Plc

WH Smith Plc

O2 (UK) Ltd

Wilkinson Hardware Stores Ltd

Portfolio at 30 September 2009

Property

Type

Valuation band at

30 September 2009

£ million

Gascoigne Road, Barking

Distribution warehousing

5 - 10

QED, Thurrock

Distribution warehousing

5 - 10

Western Avenue, Thurrock

Distribution warehousing

5 - 10

Bakers Court, Basildon

Industrial

0 - 5

Barratt Industrial Estate, Bow

Industrial

0 - 5

Larkfield Mill, Aylesford

Industrial

10 - 15

Mill River Trading Estate, Enfield

Industrial

5 - 10

The Interchange, Swanley

Industrial

15 - 20

Baytree Shopping Centre, Brentwood

Shopping centre

20 - 25

George Yard, Braintree

Shopping centre

15 - 20

The Mall, Dagenham

Shopping centre

10 - 20

214/216 Heathway, Dagenham

Retail

0 - 5

38-42 High Street, Brentwood

Retail

0 - 5

75 High Street, Brentwood

Retail

0 - 5

Grove Farm, Chadwell Heath

Retail park

5 - 10

Inspira House, Welwyn Garden City

Office

0 - 5

Mellon House, Brentwood

Office

5 - 10

Queensgate, Waltham Cross

Office

5 - 10

Redwing Court, Romford

Office

0 - 5

Solar House, Stratford

Office

5 - 10

34 St Thomas Road, Brentwood

Residential

0 - 5

Salway Place, Stratford

Residential

5 - 10

Going Forward

As interest rates look set to remain at their present historic low level for some time, a convincing case for property as an investment asset class can be made, perhaps for the first time in two years. As values stabilise and grow, property offers a high yielding alternative investment to other traditional investment areas, a return that is further enhanced for overseas investors by the weak pound, particularly in relation to the euro and dollar. We expect that availability of debt will improve to follow the equity available as investors look to take advantage of the next property cycle as 2009 turns into 2010. Our objective remains the creation of value through successfully implementing new asset management initiatives.

Whilst prospects for the real estate market generally now appear to be improving, we believe that O Twelve's Target Area is looking forward to a particularly bright future. The Olympic Games are approaching quickly and we are now starting to see the effect of the unprecedented public and private investment driving Europe's largest single regeneration project around Stratford, London's East End and the Thames Gateway. This, coupled with the Target Area's historically low capital and rental base values augurs well for future growth.

David Tye

Andrew Wilson

Rugby Asset Management Limited

11 December 2009

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the six months ended 30 September 2009 (unaudited)

1 April 2009 to 30 September 2009 (unaudited)

1 April 2008 to 30 September 2008 (unaudited)

1 April 2008 to 31 March 2009 (audited)

£'000

£'000

£'000

Income

Rent receivable

7,168

7,042

14,289

Bank interest

21

227

292

Other interest

12

26

32 

Service charges receivable

1,709

1,824

3,609

------------

------------

---------------

Total income

8,910

9,119

18,222

------------

------------

---------------

Expenses

Administration fees

(90)

(124)

(234)

Service charges payable

(1,709)

(1,824)

(3,609)

Management fees

(532)

(1,266)

(2,441)

Other operating expenses

(1,026)

(824)

(2,021)

------------

------------

---------------

Total expenses

(3,357)

(4,038)

(8,305)

------------

------------

---------------

Investment gains and losses

Movement in unrealised loss on revaluation of investment properties

(514)

(18,102)

(77,653)

Realised loss from sale of investment properties

(194)

-

-

------------

------------

---------------

Total investment gains and losses

(708)

(18,102)

(77,653)

------------

------------

---------------

Net profit/(loss) from operating activities

4,845

(13,021)

(67,736)

------------

------------

---------------

Movement in fair value of interest rate swap

2,714

1,511

(13,989)

Interest payable and similar charges

(4,594)

(5,303)

(10,397)

------------

------------

-----------

Total financing gains and losses

(1,880)

(3,792)

(24,386)

------------

------------

-----------

Profit/(loss) before taxation 

2,965

(16,813)

(92,122)

Taxation

(49)

(53)

(175)

------------

------------

------------

Total comprehensive profit/(loss) for the period/year attributable to the owners of the Company

2,916

(16,866)

(92,297)

------------

------------

------------

Profit/(loss) per Ordinary Share - basic and diluted

2.38p

(13.77)p

(75.34)p

Items in the above statement are derived from continuing operations.

There was no other comprehensive income in the period (30 September 2008 and 31 March 2009: nil).

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30 September 2009 (unaudited)

Share capital

Other reserves

Total

£'000

£'000

£'000

Balance at 1 April 2009

1,225

(8,607)

(7,382)

Profit for the period attributable to the owners of the Company

-

2,916

2,916

----------

----------

----------

Total comprehensive profit for the period attributable to the owners of the Company

-

2,916

2,916

----------

----------

----------

Balance at 30 September 2009

1,225

(5,691)

(4,466)

----------

----------

----------

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30 September 2008 (unaudited)

Share capital

Other reserves

Total

£'000

£'000

£'000

Balance at 1 April 2008

1,225

83,690

84,915

Loss for the period attributable to the owners of the Company

-

(16,866)

(16,866)

----------

----------

----------

Total comprehensive loss for the period attributable to the owners of the Company

-

(16,866)

(16,866)

----------

----------

----------

Balance at 30 September 2008

1,225

66,824

68,049

----------

----------

----------

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the year ended 31 March 2009 (audited)

Share capital

Other reserves

Total 

£'000

£'000

£'000

Balance at 1 April 2008

1,225

83,690

84,915

Loss for the year attributable to the owners of the Company

-

(92,297)

(92,297)

----------

----------

----------

Total comprehensive loss for the year attributable to the owners of the Company

-

(92,297)

(92,297)

----------

----------

----------

Balance at 31 March 2009

1,225

(8,607)

(7,382)

----------

----------

----------

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 September 2009 (unaudited)

30 September 2009 (unaudited)

30 September 2008 (unaudited)

31 March 2009 (audited)

£'000

£'000

£'000

Non-current assets

Investment property

171,510

232,945

173,634

Restricted cash and cash equivalents

2,574

-

3,059

-----------

-----------

-----------

174,084

232,945

176,693

Current assets

Receivables and prepayments

8,745

5,795

5,381

Cash and cash equivalents

3,056

8,928

4,928

-----------

-----------

-----------

11,801

14,723

10,309

-----------

-----------

-----------

Total assets

185,885

247,668

187,002

-----------

-----------

-----------

Current liabilities

Payables and accruals

(6,650)

(7,216)

(6,454)

Bank loan

(168,169)

-

(169,684)

Fair value of interest rate swap

(15,532)

-

(18,246)

-----------

-----------

-----------

(190,351)

(7,216)

(194,384)

Non-current liabilities

Bank loan

-

(169,657)

-

Fair value of interest rate swap

-

(2,746)

-

-------------

-------------

-------------

-

(172,403)

-

-----------

-----------

-------------

Total liabilities

(190,351)

(179,619)

(194,384)

-----------

-----------

-------------

Net (liabilities)/assets

(4,466)

68,049

(7,382)

-----------

-----------

-------------

Capital and reserves attributable to owners of the Company

Called-up share capital

1,225

1,225

1,225

Other reserves

(5,691)

66,824

(8,607)

-----------

-----------

------------

Attributable to owners of the Company

(4,466)

68,049

(7,382)

-----------

-----------

-------------

Net (liability)/asset value per Ordinary Share - basic and diluted

(3.65)p

55.55p

(6.03)p

CONSOLIDATED STATEMENT OF CASH FLOWS 

for the six months ended 30 September 2009 (unaudited)

1 April 2009 to 30 September 2009 (unaudited)

1 April 2008 to 30 September 2008 (unaudited)

1 April 2008 to 31 March 2009 (audited)

£'000

£'000

£'000

Operating activities

Profit/(loss) for the period/year attributable to the owners of the Company

2,916

(16,866)

(92,297)

Adjustments for:

Movement in unrealised loss on revaluation of investment properties

514

18,102

77,653

Realised loss from sale of investment properties

194

-

-

Movement in fair value of interest rate swap

(2,714)

(1,511)

13,989

Loan interest payable and similar charges

4,594

5,303

10,397

Taxation

49

53

175

Purchase/refurbishment of investment property

(340)

(1,282)

(1,522)

Sale of investment property

1,756

-

-

-------------

-------------

-------------

Net cash inflow from operating activities before working capital changes

6,969

3,799

8,395

(Increase)/decrease in receivables and prepayments

(3,293)

6,232

6,646

Increase/(decrease) in payables and accruals

198

(681)

(1,016)

-------------

-------------

-------------

Net cash inflow from operating activities

3,874

9,350

14,025

Financing activities

Repayment of loan

(1,545)

-

-

Loan interest and similar charges paid

(4,615)

(5,234)

(10,589)

-------------

-------------

-------------

Net cash outflow from financing activities

(6,160)

(5,234)

(10,589)

Taxation paid

(71)

(14)

(275)

-------------

-------------

-------------

(Decrease)/increase in cash and cash equivalents

(2,357)

4,102

3,161

-------------

-------------

-------------

Cash and cash equivalents at beginning of period/year

7,987

4,826

4,826

(Decrease)/increase in cash and cash equivalents

(2,357)

4,102

3,161

-------------

-------------

-------------

Cash and cash equivalents at end of period/year

5,630

8,928

7,987

-------------

-------------

-------------

Cash and cash equivalents at end of period/year comprise:

Non-current cash and cash equivalents

2,574

-

3,059

Cash and cash equivalents

3,056

8,928

4,928

-------------

-------------

-------------

5,630

8,928

7,987

-------------

-------------

-------------

NOTES

1.  The financial information set out in this announcement does not constitute the Group's statutory financial
     statements for the periods ended 30 September 2009, 30 September 2008 or for the year ended 31 March 2009 but
     is derived from those accounts. 

2.  Half yearly report

      The half yearly report will be posted to shareholders by the end of December 2009. Copies of the half yearly 
      report will be available from the Company's office at No.1 Le Truchot, St Peter Port, Guernsey, GY1 3JX and on
      its website, www.otwelveestates.com

3.  Dividends

     The Directors do not propose an interim dividend for the period ended 30 September 2009.

4.  Profit/(loss) per Ordinary Share

     The profit/(loss) per Ordinary Share is based on a profit of £2,916,000 (30 September 2008: loss of £16,866,000, 
     31 March 2009: loss of £92,297,000) and on a weighted average number of 122,500,002 (30 September 2008 and 
     31 March 2009: 122,500,002) Ordinary Shares in issue.

     The average price of the Ordinary Shares of 5.86p during the period (30 September 2008: 28.24p, 31 March 2009: 
      17.51p) was below the exercise price of the Options (exercise price 100.00p). Therefore, in accordance with IAS 
      33: Earnings per share, there is no dilution.

5.  Net (liability)/asset value per Ordinary Share

     Basic

    The net liability per Ordinary Share is based on the net liabilities attributable to equity shareholders of £4,466,000
    (30 September 2008: net assets of £68,049,000, 31 March 2009: net liabilities of £7,382,000) and on 122,500,002
     (30 September 2008 and 31 March 2009: 122,500,002) Ordinary Shares in issue at the end of the period.

    Diluted

    The 30 September 2009 price of the Ordinary Shares of 8.63p (30 September 2008: 20.00p, 31 March 2009: 3.50p)
     was below the exercise price of the Options (exercise price of 100.00p). Therefore, there is no dilution (30 
     September 2008 and 31 March 2009: no dilution).