Pineapple : Annual financial and audit reports

REGISTERED NUMBER: 02954192 (ENGLAND AND WALES)

PINEAPPLE CORPORATION PLC

ANNUAL REPORT AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

PINEAPPLE CORPORATION PLC

CONTENTS OF THE FINANCIAL STATEMENTS

	Page
Company Information	1
Chairman's Statement	2
Strategic Report	3
Report of the Directors	10
Statement of Directors' responsibilities	12
Corporate Governance Report	13
Independent Auditors' report - Group	14
Consolidated income statement	18
Consolidated statement of comprehensive income	19
Consolidated statement of financial position	20
Consolidated statement of changes in equity	21
Consolidated statement of cash flow	22
Notes to the consolidated financial statements	23
Independent Auditors' report - Company	41
Company statement of financial position	45
Company statement of changes in equity	46
Notes to the Company financial statements	47

PINEAPPLE CORPORATION PLC

COMPANY INFORMATION

FOR THE YEAR ENDED 31 MARCH 2022

Executive Directors:	T H Berglund (Chairman)
	A J Sperrin
	D C Farley
Secretaries:	A J Sperrin
	M Jeffrey
Registered office:	12 Blacks Road
	London
	W6 9EU
Registered number:	02954192 (England and Wales)
Independent auditor:	Harmer Slater Limited
	Statutory Auditor
	Salatin House
	19 Cedar Road
	Sutton
	Surrey
	SM2 5DA

Page 1

PINEAPPLE CORPORATION PLC

CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

I am pleased to present my report for the year ended 31 March 2022.

Highlights

Following two very difficult years where we have been struggling against the effects of Brexit and then covid we are finally seeing some return to normality with the lifting of covid restrictions. The UK economy has seen some signs of recovery and with it the real estate sector has shown signs of growth.

This is evidenced by the net revaluation gains shown in the accounts of some £2.98M.

The group has continued to concentrate on maximising the returns and development potential of its investment portfolio. We have now obtained planning consent for the development of our sites at Lombard Road (warehouse), Alie Street (two flats), Sulgrave Road (seven flats) and Munster Road (four flats and a retail unit).

The Lombard Road and Munster Road developments are already underway and the Sulgrave Road and Alie Street developments will both start shortly.

In the meantime our company has performed well in difficult circumstances and the results of the group reflect the positive management of the company:

• Gross rental income has risen by 2.8%
• Net asset value per share has increased by 23p from 481p to 504p (an increase of 4.8%)
• Dividends have increased by 12.5% from 16p per share to 18p per share
• Combining the growth in value per share and the dividend yield of 3.7% means our shareholders have enjoyed a total return of 8.5% in the year.

The future

Looking to the future, I am pleased to say that there now seem to be several opportunities to generate substantial growth over the next couple of years, with the completion of the development projects outlined above.

Clearly there are concerns over the current high rate of inflation, particularly with construction costs and the likelihood of higher interest rates which need to be managed carefully, but due to the nature and makeup of our portfolio and the commitment of our management we are well placed to move forward positively from here.

Board and management

I am pleased to report that the group has retained the services of its existing board of directors and will continue to benefit from their years of experience and diversity of background, hopefully for years to come.

I would also like to thank all our directors, business partners and shareholders for their continued interest and support of the company.

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PINEAPPLE CORPORATION PLC

STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2022

The directors are pleased to present their Strategic Report for the year ended 31 March 2022.

THE GROUP

Pineapple Corporation Plc is the parent company of the group and its shares are admitted to trading on the Euro MTF market of the Luxembourg Stock Exchange. It acts as the holding company of the group and owns a portfolio of properties as an investment company. It's wholly owned subsidiary undertakings at 31 March 2022, all of which are property investment companies, are listed on pages 52 and 53.

STRATEGY AND OBJECTIVES

The group's objective is to enhance shareholder value by increasing asset value, increasing profits and increasing dividends.

The group seeks to achieve this through:

• maintaining a balanced portfolio of residential and commercial properties;
• changing the portfolio mix as market conditions change;
• maximising the value of existing properties by exploiting any development potential;
• improving the lease/tenant profile of the commercial properties; and
• making further investments in properties where opportunities exist to significantly enhance the value of the asset.

THE BUSINESS MODEL

Pineapple Corporation Plc is a Real Estate Investment Trust (REIT). A REIT is a property company which enables its shareholders to invest in commercial and residential properties and receive benefits as if they owned the property directly. Our business model focuses on enhancing shareholder value via a combination of increasing asset value, increasing profits and increasing dividends from our well balanced portfolio of residential and commercial investment properties. This model drives our leasing/renting, planning and development strategy including ensuring that we let space to reliable tenants and minimise tenancy voids and their associated costs. Our business model is based on having very low fixed overheads and utilising the services of trusted and experienced property advisors and agents.

REVIEW OF THE BUSINESS AND FUTURE DEVELOPMENTS

Progress and events during the year

The UK economy and in particular the real estate market has responded well as the restrictions imposed as a result of covid 19 have been lifted. This is reflected by the net revaluation gains shown in the accounts of some £2.98M.

After two years of carefully managing the disruptive effects of the covid pandemic on our business we have been able to refocus our attention on maximising the returns and development potential of the investments in our portfolio.

Following receipt of planning consent for the development of our Lombard Road site, we have finalised our development plans to create 15,000 sq ft of space as new artist studios and 15,000 sq ft as new modern warehouse space.

The development commenced in June 2022 and is expected to be completed within twelve months.

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