TAP was acquired by the Group in September 2009 following a hostile reverse takeover. Having acquired a strategic 28.9% stake in January 2009, we made a successful offer for the whole company and took control. Our cash position and our in-house experience with corporate transactions meant we could move rapidly and decisively. We had no banks to satisfy and undertook our own due diligence.

We acquired £151.6 million of property assets and net assets of £49.9 million for a total consideration of £28.8 million. However, the bank debt acquired was relatively high at £99.6 million with both loan to value and interest cover covenants under pressure. The priority was to realise cash, repay debt and cut outgoings Ė all quite straightforward but speed was of the essence.

Since the acquisition of TAP in September 2009, we have now disposed of assets for a total of £59.3 million, realising a total profit of £5.9 million over and above the property valuation at 30 September 2009, applying all of the funds realised towards repayment of bank debt. The present bank debt of £34.1 million stands at 33% loan to value whereas it was over 66% upon acquisition and interest cover was close to its covenant limits.

We have also cut TAPís administrative costs by over 60% which combined with the debt reduction, results in TAP now having a positive cash flow.

The net assets of the TAP Group at 30 September 2010 were £61.7 million compared with a total acquisition cost of £28.8 million, representing a 114% return in just over a year. The remaining TAP portfolio is valued at £102.7 million with an annual rent roll of £8.9 million and it remains our intention to make disposals where no further value can be added by the Group.