Sustaining 
Delivery 
with Steady Growth
Circle Property Plc
Report and Consolidated Financial Statements for the period 4 December 2015  
to 31 March 2016
Circle Property Plc Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016 Circle Property Plc is a 
specialist and imaginative 
regional office investment 
and development company 
operating throughout the UK. 
circleproperty.co.uk/ar2016 At a Glance
SMALL BUT  
PERFECTL Y  
FORMED 
OUR PORTFOLIO
The Group’s portfolio consists 
of 16 commercial property 
investments and developments 
in the UK with a current 
value of £77 .73m. All of the 
properties are currently held 
by CPUT and/or the Jersey 
Subsidiaries. The portfolio totals 
approximately 640,1 48 sq ft 
of accommodation, the 
majority of which, by floor 
area, is in the office sector.
For more detailed information on our portfolio please 
see page 6 Portfolio Review
Above: One Castlepark, Tower Hill, Bristol
Below: Kents Hill Park, Timbold Drive, Milton Keynes OUR PORTFOLIO
The map below 
shows the location 
of our properties. 
Above: 36 Great Charles Street, Birmingham
2
2
2
3 FINANCIALS GOVERNANCE Strategic report 
1
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
OPERATIONAL HIGHLIGHTS
 ʱ The letting of the entire first floor of K1 in Milton Keynes to Trafficmaster 
enabled us to proceed with the refurbishment of K2 in the knowledge that 
K1 was fully let. Those works are now complete and we are pleased that K2 is 
attracting considerable interest. We are drawing-in tenants from competing local 
developments who appreciate our high specification and thoughtfully planted 
landscaped grounds with ample car parking.
 
 ʱ In Birmingham, we are already on site and working through our rolling 
refurbishment of 36 Great Charles Street retaining existing tenants and extending 
leases to meet tenants requirements. The entrance is being enlarged and all floors 
are being refurbished in “media-style” with exposed ceiling services and open 
plan yet flexible floor plates.
 ʱ At Somerset House in Temple Street Birmingham we are securing pre-lets on 
the two Ground Floor restaurants for which planning permission has now been 
granted. The strip out is underway and will be followed by a refurbishment of the 
upper floors completing in Spring 2017. 
FINANCIAL HIGHLIGHTS
Profits and Earnings:
STRATEGIC REPORT  
1–9
Highlights of the Period 1
Chairman’s Statement 2
CEO’s Review 4
Portfolio Review 6
GOVERNANCE 
10–19
Board of Directors 10
Directors’ Report 12
Governance Report 15
Remuneration Report 18
FINANCIALS 
21–40
Independent Auditor’s Report 20
Consolidated Statement of 
Comprehensive Income 21
Consolidated Statement of Financial 
Position 22
Consolidated Statement of  
Changes in Equity 23
Consolidated Statement of  
Cash Flows 24
Notes to the Consolidated  
Financial Statements 25
Officers and Professional Advisers 
£1.1m
PROFIT BEFORE TAX
3.8p
EARNINGS PER SHARE
£43.2m
SHAREHOLDERS’ FUNDS
153p
NET ASSET PER SHARE
2.4p
FINAL DIVIDEND PER SHARE
£77.73m
PORTFOLIO VALUATION
Highlights of the Period 2
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
ROBUST BUSINESS 
PERFORMING IN LINE  
WITH EXPECT A TION
Chairman’s Statement
WELCOME TO  
OUR INAUGURAL 
REPORT.
On 16 February 2016, Circle Property Plc 
successfully listed on AIM with stock being 
taken up at a price of £1.49 which reflected the 
NAV with no discount. As expected, on 16 May 
2016 we were in position to pay a maiden dividend 
of 2.4p per share, based on performance to 31 
March 2016, the Company’s financial period end, 
while acknowledging that the Company had 
been in existence for a mere four months.
Despite the recent political and economic 
uncertainties, culminating in the United 
Kingdom’s decision to leave the European Union, 
the share price has proven to be remarkably 
resilient. This is largely as a result of our 
shareholders being long-term investors who 
share our confidence in the earnings’ potential 
of this quality commercial property portfolio and, 
as per our branding, our active investment 
within it. On 31 March 2016 the net asset value 
attributable to shareholders amounted to 
£43.2m translating into a net asset value per 
share of approximately £1.53.
The Executive team is well experienced in dealing 
with difficult times having successfully brought 
Circle Property Unit Trust through the market 
recession of 2008. Although our team is small 
they are working hard to identify the right 
opportunities and secure funding. We are 
delighted, although after the accounting period 
closed, to note that we have secured a significant 
line of debt funding from our bankers. I would like 
to thank the Royal Bank of Scotland for getting 
this facility in place, notwithstanding the 
turbulence created around the Brexit referendum.
The governance of the Company is evolving to 
match both changing regulation and the needs 
of the Company. We have established 
Remuneration and Audit Committees and deal 
with any nomination issues through the Board 
as a whole. I am confident that the Audit 
Committee has the requisite skills and the 
Remuneration Committee is focussed on 
rewarding fairly and motivating the Executive 
within constraints of the property improvement 
programme and a progressive dividend policy.
I am committed to ensuring the Company operates 
at the highest level of integrity and embraces the 
challenges of an ever-changing regulatory 
environment. We have prepared a policies and 
procedures manual for board approval which 
includes, but is not limited to, policies on Anti-
Bribery and Corruption, Gifts and Entertainment, 
Code of Conduct, Insider Dealing, Risk, Financial 
Procedures, Meetings, Whistleblowing and the 
additional requirements regarding the insider 
dealing rules via the Market Abuse Regulations 
which recently came into effect.
We are on budget and on target with our stated 
aims to enhance value through strategic 
acquisition in improving areas and to expend c 
£8m on capital improvements by actively 
investing in property. I thank the Board for its 
support and the Executive team for their energy 
and focus but, most importantly, I thank you the 
shareholders for backing our efforts and we will 
strive to reward that trust.
Ian Henderson
Non-Executive Chairman FINANCIALS GOVERNANCE Strategic report 
3
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
“We are on budget and on target with our stated 
aims to enhance value through strategic 
acquisition in improving areas and to expend 
c£8m on capital improvements by actively 
investing in property. “
36 Great Charles Street, Birmingham
Somerset House, Temple Street, Birmingham 4
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
CEO’s Review
CIRCLE PROPERTY PLC’S 
PRIMARY STRATEGY 
POST THE BREXIT VOTE 
REMAINS UNCHANGED; 
TO BUY AND 
REFURBISH REGIONAL 
OFFICE BUILDINGS IN 
LOCATIONS WHERE 
THERE IS GOOD 
DEMAND, BUT WHICH 
WILL BENEFIT FROM 
CAPITAL EXPENDITURE 
TO SHOW ABOVE 
AVERAGE RETURNS 
FOR THE SECTOR.
The refinancing of our debt facility with RBS has 
improved our flexibility and reduced our interest 
charges, the benefit of which we expect to be 
passed on to our shareholders given our 
commitment to a progressive dividend policy. We 
are sure that income will continue to prevail as 
the key consideration by investors with NAV 
performance being a secondary driver. 
We will continue to advance and progressively 
let our three key developments in Milton Keynes 
and Birmingham all of which, when fully let, will 
contribute an additional £2m per annum to the 
rent roll to show a rental return on total cost 
approaching 10%. This level of return would not 
be achievable by buying those completed 
investments in the open market. We have a 
developer mentality but instead of selling the 
completed investments, they are retained and 
held within our investment portfolio. Valuation 
uplifts allow further advances from the RBS loan 
to facilitate further purchases.
We remain optimistic that the economy has the 
strength to withstand the short term stresses 
and strains imposed by the prospect of leaving 
the EU and that demand will continue for good 
quality offices at economic rents in the right 
locations. The media have focused attention on 
a relatively small number of funds that have 
down-valued their units overnight as a knee-jerk 
reaction to the post BREXIT political fallout 
rather than an economic collapse. We suspect 
that their actions were driven by a need to try 
and create some liquidity but this has 
heightened the sense of nervousness and 
accelerated the rush for the exit door.
Auction houses are often quoted as the 
barometers of the commercial property markets 
and after their successful auction on 7 July 2016 
Acquitus’ auctioneer, Richard Auterac, reported 
that; “There was no apparent difference in 
pricing between our pre and post Brexit 
auctions”. This is not to say that prices will 
continue to hold firm and we are mindful that 
there is a risk of contagion from property funds 
spreading to multi-asset funds and there may be 
some modest softening of property values at 
least in the short term, but are optimistic that 
internal progress within the portfolio should 
moderate or negate any downward pressure.
We continue to take a cautious approach and will 
be ensuring that our level of debt is contained or 
offset by valuation uplifts from elsewhere 
within the portfolio. Our letting agents confirm 
that although the level of enquiries were down 
in the lead up to the referendum, there is still 
unsatisfied occupational demand and viewings 
are continuing. We are also pleased to report 
that all of our tenants appear happy to remain in 
occupation and are renewing leases in line with 
our opinion of market rents. We expect that the 
markets will recover any lost ground over the 
remainder of the financial year which may prove 
to be a buying opportunity so we are poised, as 
ever, to make opportunistic acquisitions where 
the upside is evident and there is modest 
downside risk.
We have a number of “legacy” properties where 
we are carrying out lease re-gears or renewal 
negotiations prior to sale. The proceeds from 
these sales are anticipated to be at prices ahead 
of the valuations and will, in-part, fund our 
refurbishment programme.
The fundamentals for Circle Property Plc remain 
attractive, given the continuing strength in 
provincial offices which the Company holds at 
reversionary rents, principally let to strong 
covenants in prime locations and the more 
dynamic earnings generated by the 
developments in progress.
John Arnold
Chief Executive Officer
GROWING DEMAND  
DRIVES CONFIDENCE  
FOR THE FUTURE FINANCIALS GOVERNANCE Strategic report 
5
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Property is still in demand
Although the market drew breath in the lead up 
to Brexit and was slightly “winded” by the 
somewhat surprising outcome we are seeing 
a gradual resumption of normal working with 
occupiers continuing to sign leases and 
investors competing to buy buildings with a 
living yield. As gilt yields harden, property yields 
for longer let property should follow. Our share 
price reflects the strength of our well located 
portfolio with strong tenant covenants and low 
rental base offering scope for rental growth – or 
insulation from any future weakness in rental 
values. The combination of our strong income 
stream from the investment portfolio and 
projected future income from the development 
stock produces the prospect for a dynamic total 
return when all lettings complete.
The focus of the Company will remain targeted 
upon value added stock where the location 
justifies the risk.
MARKET REVIEW
“Our development programme  
is progressing well. “ 6
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Portfolio Review
The refurbishment of K1, Kents Hill Business Park, 
Milton Keynes went well and the property is now 
fully let and income producing. The refurbishment 
of K2 is complete and we are actively seeking 
tenants in what is arguably Milton Keynes 
best out of town office accommodation.
Three further buildings were acquired by Circle 
Property Unit Trust (“CPUT”) in the six months 
preceding its acquisition by Circle Property Plc. 
The first was on Aztec West, which is Bristol’s 
main out of town business park. The other two 
are located in Birmingham city centre. Of these, 
36 Great Charles Street is currently under a 
rolling refurbishment programme, whilst 
planning has been obtained at Somerset House, 
Temple Street for two enlarged restaurant units. 
We have programmed the refurbishment of the 
offices above these newly formed restaurant 
units to commence in the autumn of 2016.
Moving forward, the current uncertainty in the 
market may give rise to further opportunities 
which we will endeavour to exploit, should the 
returns be sufficiently attractive.
PORTFOLIO OVERVIEW
As of 31 March 2016, the total portfolio value 
was £77.73m made up of 16 assets, primarily 
being well-located provincial offices.
By floor area, 82.5% of the total portfolio are 
income producing investment assets, whilst the 
remaining 17.5% are office developments. 
The void rate within the total portfolio is 10.9% 
which includes the developments, decreasing to 
1% when the developments are excluded.
89% of the portfolio by value is in the office 
and conference sector which forms the core 
portfolio. The remaining 11% is split across 
four sectors, being the non-core portfolio, 
which provides good high yielding income.
68% of the portfolio by value is located in three 
provincial cities, being Milton Keynes, Bristol 
and Birmingham.
Principal tenants within the portfolio include 
Compass Contract Services Ltd (15%), Which? 
Financial Services Ltd (6%), Grant Thornton LLP 
(5%), B&M Retail Ltd (5%) and New World Trading 
Company Ltd (4.3%).
The total annual contracted income produced by 
the portfolio is over £5.9m, with a reversionary 
rent based on full ERV and once the 
development assets are complete of 
approximately £8m.
“ Over the period, we have 
concentrated on increasing 
the portfolio’s income by 
undertaking lease renewals 
and lettings.”
Edward Olins
Chief Operating Officer
OUR DEVELOPMENTS IN MIL TON 
KEYNES AND BIRMINGHAM ARE 
A TTRACTING A GOOD LEVEL OF 
OCCUPIER INTEREST FINANCIALS GOVERNANCE Strategic report 
7
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
343,805
45,319
37,169
177,211
7,706
16,382
12,556
28.4M
18.5M
4.0M
13.6M
7.4M
1.0M
1.1M
3.7M
PORTFOLIO FLOOR AREA (SQ FT) BY SECTOR
PORTFOLIO LOCATION BY REGION AND VALUE
 Office
 Retail
 Warehouse
  R e t ai l  
Warehouse
 Roadside
 Conference Facility
 Other
 South East
 South West
 London
 West Midlands
 East Midlands
 North West
 North of England
 East of England
In June 2016, Circle Property Plc completed the refinancing of its entire senior debt with the Royal 
Bank of Scotland PLC on the terms:
Loan amount Increased loan amount from £39.2m to £50m to allow for refinancing of 
the portfolio, undertake refurbishments and fund further acquisitions.
Term Three year term with two options to extend for a further year at the 
expiry of the 1st and 2nd anniversary of the term.
Loan to Value A maximum drawdown to LTV of 60% for the first year of the term 
decreasing to 55% thereafter.
Interest Rate Decreased to 1.85% over libor from 2.95% over libor.
Interest Rate Cover 1.75:1 for the first two years of the term increasing to 2.00:1 thereafter.
Debt to Rent Ratio No greater than 11:1 for the first two years of the terms decreasing to 
10:1 thereafter.
KENTS HILL PARK, MILTON KEYNES 
OFFICES
This regional conference facility and business 
park was purchased in December 2013 by 
CPUT for £11.05m. 
The regional conference facility is let to 
Compass Contract Services and provides hotel, 
leisure and conference facilities within six 
buildings totalling approximately 177 ,200 sq ft.
The business park provides some 70,000 sq ft of 
office accommodation within two self-contained 
buildings. K1 has been fully refurbished and is 
fully let to three tenants namely Lundbeck, IFG 
Management and Traffic Master. 
K2 is vacant, its refurbishment just having 
been completed.
Both the regional conference facility and 
business park have a combined contracted rent 
of over £1.26m.
CORE OFFICE PORTFOLIO
The key office investment assets:  8
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
141 MOORGATE, LONDON EC2 
OFFICES
PARK HOUSE, NORTHAMPTON
300 PAVILION DRIVE, NORTHAMPTON BUSINESS PARK
The property was purchased in May 2009 by 
CPUT for £4m and provides approximately 
43,577 sq ft of office accommodation.
The property is fully let to three tenants being 
Grant Thornton (53%), NRG Group UK Ltd, t/a 
Ricoh (30%) and Cedar Open Accounts (17%). 
The weighted unexpired lease term is 3.83 
years to lease expiry and 2.51 years to breaks. 
The total rent passing is £526,490 pax 
(equating to £12.08 psf overall).
This prime City office building of some 11,400 
sq ft was acquired in March 2003 by CPUT  
for £2.375m.
The property was refurbished in 2013 and is 
well located being situated immediately 
adjacent to Moorgate Crossrail Station. 
The property is multi let to 5 tenants and has a 
contracted rental income of £206,000 pax.
Portfolio Review continued
CORE OFFICE PORTFOLIO
The key office investment assets: 
ONE CASTLEPARK, TOWER HILL, BRISTOL
OFFICES
Purchased in November 2012 by CPUT for 
£4.035m, the property provides approximately  
78,500 sq ft of refurbished office 
accommodation.
The property is fully let to eight tenants  
which include Which? Financial Services 
Limited, Irwin Mitchell LLP and JISC.
The total passing contracted rent is 
approximate £1.04m pax (equating to  
£13.28 psf).  FINANCIALS GOVERNANCE Strategic report 
9
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
SOMERSET HOUSE, TEMPLE STREET, BIRMINGHAM
BUSINESS PARK OFFICES
Acquired in January 2016 by CPUT for £7 .75m, 
the property is located on Temple Street, 
within the heart of Birmingham’s financial and 
professional core and just a two minute walk 
from Birmingham New Street Station. 
The property provides 43,700 sq ft of vacant 
office accommodation above ground floor 
restaurant and retail accommodation of some 
3,100 sq ft. 
Planning permission has been granted for 
the change of use and reconfiguration of the 
ground floor to provide two restaurant units 
of approximately 5,000 sq ft each.
It is anticipated the refurbishment of the vacant 
offices will commence in the autumn of 2016.
Once the redevelopment has been completed 
and based upon and ERV of £21 psf for the 
offices and £35 psf for the restaurant units, 
the estimated annual rental income for the 
property is around £1.2m pax.
The key office development assets:
GREAT CHARLES STREET, BRISTOL
OFFICES
36 Great Charles Street provides 24,500 sq ft 
of office accommodation and was acquired in 
August 2015 by CPUT for £2.5m. 
The property is located on the city’s inner ring 
road within Birmingham’s traditional office core.
The immediate area around the property is 
undergoing significant change with Argent’s 
Paradise Island development providing 1.8m sq 
ft of grade A office accommodation along with 
retail, leisure and a 4 star hotel located just 
200 yards away.
The building is currently undergoing 
refurbishment at a cost of approximately £2.3m 
and once complete in spring 2017 , will have an 
estimated rental value of £480,000 pax. 10
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Board of Directors
JOHN  
ARNOLD
EDWARD  
OLINS
IAN  
HENDERSON
RICHARD 
HEBERT
JAMES  
HAMBRO
THE DUKE OF 
ROXBURGHE
MICHAEL  
FARROW
Chief Executive Chief Operating Officer Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director 
BIOGRAPHY Mr Arnold left St Quintin Chartered 
Surveyors (now CBRE) after seven years 
in the management department and 
joined Hambros plc in January 1986. He 
became a Director of Berkeley Hambro plc, 
its property subsidiary, in 1991, where he 
remained until Investec’s acquisition of 
Hambros Bank in 1998, when he was 
appointed Managing Director of Investec 
Property plc. He left Investec at the end 
of 1999 and founded CPML in April 2002. 
Mr Arnold is a Fellow of The Royal 
Institution of Chartered Surveyors. 
Mr Olins joined DE & J Levy LLP as a 
graduate surveyor and became a salaried 
partner in 2000. He left the partnership in 
2003 to join London & County Estates 
Limited as Investment Director. In 2006, 
he joined CPML to take control of new 
business acquisitions and assist Mr Arnold 
in the running of CPML. Mr Olins is a 
Member of The Royal Institution of 
Chartered Surveyors. 
Mr Henderson is the Non-Executive 
Deputy Chairman and Senior Independent 
Non-Executive Director of Capital & 
Counties Properties plc, the Chairman of 
the Dolphin Square Foundation and the 
Chairman of the Estate and Advisory 
Committee of The National History 
Museum. Mr Henderson was formerly 
Chief Executive of Land Securities Group 
plc and has been widely involved in the UK 
property industry, including being a past 
president of the British Property 
Federation. Mr Henderson is a Fellow of 
The Royal Institution of Chartered 
Surveyors. 
Mr Hebert has 30 years’ experience in the 
trust and corporate services sector in 
Jersey, working in the trust departments 
of several large firms associated to law 
practices and banks. This included being 
a member of the management team 
of one of the largest independent 
trust businesses in Jersey and on the 
integration project team for two major 
acquisitions. He is a director of Consortia 
Partnership Limited.
Mr Hebert is a Fellow of the Association 
of Chartered and Certified Accountants, 
a Fellow of the Association of Accounting 
Technicians and an Associate of the 
Chartered Institute of Secretaries and 
Administrators.
Mr Hambro is Chairman of James Hambro & 
Partners. He was an Executive Director of 
Hambros Bank from 1982 to 1985, 
co-founder of the original J O Hambro 
Group and Managing Director of J O 
Hambro Magan before going on to found J 
O Hambro Capital Management. He is 
Chairman of Hansteen Holdings plc and a 
director of Primary Health Properties plc. 
Mr Hambro recently stepped down as 
Chairman of The Henry Smith Charity, a 
large grant-making charity, after almost 
25 years of service. He holds a Diplome 
d’Etudes en Langue Francaise from the 
University of Grenoble and completed the 
Advanced Management Programme at 
Harvard Business School. More recently he 
became chairman of “the Guide Dogs for 
the Blind” charity.
Guy Innes Ker, The Duke of Roxburghe 
was previously non-executive director of 
Townhouse Hotel Investments Limited 
and The Sport Entertainment & Media 
Group Limited. The Duke of Roxburghe is 
involved in the day-to-day running of the 
Roxburghe Estates including the opening 
of Floors Castle to the public in 1977 and 
opening The Roxburghe Golf course 
in 1997 .
Mr Farrow is a founding director of 
Consortia Partnership Limited, a Jersey 
licensed trust and fund services company. 
He heads their institutional business which, 
amongst other services, provides property 
and private equity fund administration. 
He is currently the Senior Independent 
Director of Redefine International plc 
(a FTSE 250 property company), the 
Chairman of Bellzone Mining plc (AIM listed), 
the Chairman of STANLIB Funds Limited 
(a Jersey regulated open-ended investment 
company), and a non-executive director of 
RedT Energy plc (formerly Camco Clean 
Energy plc) (AIM listed).
Between 1997 and 2004, Mr Farrow 
was an executive director and trustee 
of a substantial family office which held 
diversified investment and trading 
portfolios, primarily focused on real estate 
in Europe and California. He has also been 
group company secretary of Cater Allen 
Jersey, a banking, fiduciary and investment 
management group, and formerly a regular 
Army officer. Mr Farrow holds a Master of 
Science in Corporate Governance, and is a 
Fellow of the Chartered Institute of 
Secretaries and Administrators. FINANCIALS GOVERNANCE Strategic report 
11
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
JOHN  
ARNOLD
EDWARD  
OLINS
IAN  
HENDERSON
RICHARD 
HEBERT
JAMES  
HAMBRO
THE DUKE OF 
ROXBURGHE
MICHAEL  
FARROW
Chief Executive Chief Operating Officer Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director 
BIOGRAPHY Mr Arnold left St Quintin Chartered 
Surveyors (now CBRE) after seven years 
in the management department and 
joined Hambros plc in January 1986. He 
became a Director of Berkeley Hambro plc, 
its property subsidiary, in 1991, where he 
remained until Investec’s acquisition of 
Hambros Bank in 1998, when he was 
appointed Managing Director of Investec 
Property plc. He left Investec at the end 
of 1999 and founded CPML in April 2002. 
Mr Arnold is a Fellow of The Royal 
Institution of Chartered Surveyors. 
Mr Olins joined DE & J Levy LLP as a 
graduate surveyor and became a salaried 
partner in 2000. He left the partnership in 
2003 to join London & County Estates 
Limited as Investment Director. In 2006, 
he joined CPML to take control of new 
business acquisitions and assist Mr Arnold 
in the running of CPML. Mr Olins is a 
Member of The Royal Institution of 
Chartered Surveyors. 
Mr Henderson is the Non-Executive 
Deputy Chairman and Senior Independent 
Non-Executive Director of Capital & 
Counties Properties plc, the Chairman of 
the Dolphin Square Foundation and the 
Chairman of the Estate and Advisory 
Committee of The National History 
Museum. Mr Henderson was formerly 
Chief Executive of Land Securities Group 
plc and has been widely involved in the UK 
property industry, including being a past 
president of the British Property 
Federation. Mr Henderson is a Fellow of 
The Royal Institution of Chartered 
Surveyors. 
Mr Hebert has 30 years’ experience in the 
trust and corporate services sector in 
Jersey, working in the trust departments 
of several large firms associated to law 
practices and banks. This included being 
a member of the management team 
of one of the largest independent 
trust businesses in Jersey and on the 
integration project team for two major 
acquisitions. He is a director of Consortia 
Partnership Limited.
Mr Hebert is a Fellow of the Association 
of Chartered and Certified Accountants, 
a Fellow of the Association of Accounting 
Technicians and an Associate of the 
Chartered Institute of Secretaries and 
Administrators.
Mr Hambro is Chairman of James Hambro & 
Partners. He was an Executive Director of 
Hambros Bank from 1982 to 1985, 
co-founder of the original J O Hambro 
Group and Managing Director of J O 
Hambro Magan before going on to found J 
O Hambro Capital Management. He is 
Chairman of Hansteen Holdings plc and a 
director of Primary Health Properties plc. 
Mr Hambro recently stepped down as 
Chairman of The Henry Smith Charity, a 
large grant-making charity, after almost 
25 years of service. He holds a Diplome 
d’Etudes en Langue Francaise from the 
University of Grenoble and completed the 
Advanced Management Programme at 
Harvard Business School. More recently he 
became chairman of “the Guide Dogs for 
the Blind” charity.
Guy Innes Ker, The Duke of Roxburghe 
was previously non-executive director of 
Townhouse Hotel Investments Limited 
and The Sport Entertainment & Media 
Group Limited. The Duke of Roxburghe is 
involved in the day-to-day running of the 
Roxburghe Estates including the opening 
of Floors Castle to the public in 1977 and 
opening The Roxburghe Golf course 
in 1997 .
Mr Farrow is a founding director of 
Consortia Partnership Limited, a Jersey 
licensed trust and fund services company. 
He heads their institutional business which, 
amongst other services, provides property 
and private equity fund administration. 
He is currently the Senior Independent 
Director of Redefine International plc 
(a FTSE 250 property company), the 
Chairman of Bellzone Mining plc (AIM listed), 
the Chairman of STANLIB Funds Limited 
(a Jersey regulated open-ended investment 
company), and a non-executive director of 
RedT Energy plc (formerly Camco Clean 
Energy plc) (AIM listed).
Between 1997 and 2004, Mr Farrow 
was an executive director and trustee 
of a substantial family office which held 
diversified investment and trading 
portfolios, primarily focused on real estate 
in Europe and California. He has also been 
group company secretary of Cater Allen 
Jersey, a banking, fiduciary and investment 
management group, and formerly a regular 
Army officer. Mr Farrow holds a Master of 
Science in Corporate Governance, and is a 
Fellow of the Chartered Institute of 
Secretaries and Administrators. 12
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
The Directors present their report and the audited consolidated financial statements of Circle Property Plc and its subsidiaries (“the Group”) for the 
period from the date of incorporation of the Company on 4 December 2015 to 31 March 2016. A review of the Group’s business and results for the 
period is contained within the Chairman’s Statement and CEO’s Review, which should be read in conjunction with this report.
The Directors have adopted the provisions of Companies (Jersey) Law 1991 in preparing the financial statements.
The Directors submit their report together with the Group’s consolidated statement of comprehensive income, consolidated statement of financial 
position, consolidated statement of changes in equity, consolidated statement of cash flows and related notes for the financial period ended 31 March 
2016, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the EU and are in agreement with 
accounting records which have been properly kept in accordance with Section 103 of the Companies (Jersey) Law 1991.
PRINCIPAL ACTIVITY
The Group’s principal activity is to invest in commercial property in order to offer the potential for capital appreciation from long term investment yet enjoy 
strong dividend income. The Directors actively manage the property assets acquired by the Group to enhance rental and capital growth opportunities.
The Company was formed on 4 December 2015 as a Jersey Public Company and was admitted to the AIM market of the London Stock Exchange (“AIM”) 
on 16 February 2016. Upon admission to AIM the Company acquired all of the units of Circle Property Unit Trust (“CPUT”), a Jersey closed ended unlisted 
Unit Trust in exchange for the issue to Unitholders of Ordinary Shares. At the same time the Company acquired 100% ownership of the subsidiary 
entities of CPUT namely Circle Property (Milton Keynes) Limited (“CPMKL”) and Circle Property (Warrington) Limited (“CPWL”). Both CPMKL and CPWL are 
registered in Jersey and hold certain properties in a nominee capacity on behalf of CPUT. The Company also acquired 100% ownership of Circle Property 
Management Limited (“CPML”) a UK registered company who acted as property manager for CPUT on an exclusive basis to provide property management 
services in respect of the day-to-day management of all of the properties within CPUT’s portfolio. The provision of property management services to 
the Group has been now been internalised and it is intended to place CPML into liquidation as soon as possible. Further information relating to the 
acquisitions are detailed in note 13 on pages 32 and 33 of the consolidated financial statements.
RESULTS AND DIVIDENDS
The results for the period are set out in the consolidated statement of comprehensive income on page 21.
Subsequent to the period end, the Directors declared a final dividend of 2.4p per share for the period ended 31 March 2016. The final dividend was paid 
on 26 May 2016 with an ex-dividend date of 19 May 2016.
DIRECTORS’ INTERESTS IN SHARES
Directors’ interests in the shares of the Company, including family interests, were as follows:
Ordinary shares 
John Arnold 977 ,971
Edward Olins 128,089
The Duke of Roxburghe 2,483,069
James Hambro 3,267,656
There have been no changes in the Directors’ shareholdings since the period end.
DIRECTORS’ REMUNERATION AND SERVICE CONTRACTS
Ian Henderson is the non-executive chairman and his letter of appointment continues until 15 February 2019 unless it is terminated by either party 
giving three months’ notice, such notice not to be given before 15 February 2017. From 16 February 2016 his fees were £50,000 per annum.
John Arnold is the chief executive and his service agreement continues unless it is terminated by either party giving 12 months’ notice. His salary from 
16 February 2016 was £200,000 per annum.
Edward Olins is the chief operating officer and his service agreement continues unless it is terminated by either party giving 12 months’ notice. His 
salary from 16 February 2016 was £180,000 per annum.
The letter of appointment of The Duke of Roxburghe continues until 15 February 2019 unless it is terminated by either party giving three months’ 
notice, such notice not to be given before 15 February 2017. From 16 February 2016 his fees were £20,000 per annum.
The letter of appointment of James Hambro continues until 15 February 2019 unless it is terminated by either party giving three months’ notice, such 
notice not to be given before 15 February 2017. From 16 February 2016 his fees were £20,000 per annum.
The letter of appointment of Michael Farrow continues until 15 February 2019 unless it is terminated by either party giving three months’ notice, such 
notice not to be given before 15 February 2017. From 16 February 2016 his fees were £20,000 per annum. 
Directors’ Report FINANCIALS GOVERNANCE Strategic report 
13
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
The letter of appointment of Richard Hebert continues until 15 February 2019 unless it is terminated by either party giving three months’ notice, such 
notice not to be given before 15 February 2017. From 16 February 2016 his fees were £20,000 per annum. 
The remuneration paid to the Directors during the period ended 31 March 2016 is shown below:
Fees/Salaries 
£ 
Ian Henderson 6,079
John Arnold 24,204
Edward Olins 21,813
The Duke of Roxburghe 2,432
James Hambro 2,432
Michael Farrow 2,466
Richard Hebert 2,466
FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS 
The Group’s policy in relation to financial risk management and use of financial instruments is set out in note 23 to the financial statements. 
DIRECTORS’ RESPONSIBILITIES
The Directors are responsible for preparing the financial statements in accordance with applicable law and regulations. 
Company law requires the Directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial 
statements in accordance with IFRS, as adopted by the EU. 
Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of 
affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to: 
 – select suitable accounting policies and then apply them consistently;
 – make judgements and estimates which are reasonable and prudent;
 – state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial 
statements; and
 – prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose 
with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with 
Companies (Jersey) Law 1991. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the 
Company and to prevent and detect fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website.
Legislation in the Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
CORPORATE GOVERNANCE
The Directors are responsible for the Group’s system of internal control and reviewing its effectiveness. The risk management process and systems of 
internal control are designed to manage rather than eliminate the risk of failure to achieve the Group’s objectives. Any such system of internal control 
can only provide reasonable, but not absolute, assurance against material misstatement or loss.
BOARD STRUCTURE
The Board consists of seven Directors of which two are executives and five non-executives.
The Board will meet as and when required and is satisfied that it is provided with information in an appropriate form and quality to enable it to discharge 
its duties. 
The Group has Audit and Remuneration Committees. The following board members are members of these committees: 
The Duke of Roxburghe
James Hambro (Chair – Audit Committee)
Michael Farrow (Chair – Remuneration Committee)
During the period and subsequently no meetings were held by the Audit Committee.
The inaugural meeting of the remuneration committee was held 27 July 2016. 14
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Directors’ Report continued
INTERNAL CONTROLS
The Board is responsible for the Group’s system of internal controls and for reviewing their effectiveness. The internal controls are designed to ensure the 
reliability of financial information for both internal and external purposes. The Directors are satisfied that the current controls are effective with regard to 
the size of the Group. Any internal control system can only provide reasonable, but not absolute, assurance against material misstatement or loss.
Given the size of the Group, the Board do not deem it necessary to have an internal audit function.
PROVISION OF INFORMATION TO AUDITORS
The Directors who held office at the date of approval of the financial statements confirm that, so far as they are aware:
 – there is no relevant audit information of which the Group’s auditors are unaware; and
 – each Director has taken all the steps that he ought to have taken as a Director to make himself aware of any relevant audit information and to 
establish that the Group’s auditors are aware of that information.
KPMG Channel Islands Limited have indicated their willingness to continue in office as auditors and a resolution proposing their reappointment will be 
proposed at the Annual General Meeting.
By order of the Board 
Consortia Secretaries Limited
Company Secretary
22 August 2016 FINANCIALS GOVERNANCE Strategic report 
15
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
The Company acknowledges the importance of and is committed to high standards of Corporate Governance. The Directors are aware of the importance of 
good Corporate Governance and as such their approach has been informed by the best practice principles outlined by the UK Corporate Governance Code.
This is the first period of reporting for the Company and, whilst wishing to be as transparent as is practicable, it recognizes the limitations of its internal 
resources. The Company will continue to develop its policies and procedures but has ensured that it adopted policies which have significant implications, 
such as a disclosure (conflicts) policy, insider list and an anti-bribery policy. As the Company evolves the Board is committed to enhancing the Company’s 
corporate governance policies and practices appropriate for its size and maturity.
The Board of Directors is responsible for the success of the Group and, through the independent oversight of management, is accountable to 
shareholders for the performance of the business.
LEADERSHIP
The Board of Directors comprises three independent Non-Executive Directors, two further Non-Executive Directors and two Executive Directors, 
providing the requisite independent oversight, expertise and experience to meet the responsibility of making the business a success.
THE ROLE OF THE BOARD
The principal role of the Board is to set the Group’s strategy and to review regularly its performance in relationship to the agreed strategy. In doing this, 
the Board also has responsibility for corporate governance.
The Board has established committees which are responsible for audit and remuneration issues. Nomination issues will be addressed by the entire Board.
Responsibility for day-to-day management of the business is delegated to the Chief Executive Officer and Chief Operating Officer. The Board directs 
and monitors the Company’s affairs within an evolving framework of controls which enable risk to be assessed and managed effectively.
BOARD MEETINGS
The core activities of the Board are carried out in scheduled meetings of the Board and its Committees. These meetings are timed to link to key events 
in the Company’s corporate calendar and regular reviews of the business are conducted. Additional meetings and conference calls are arranged to 
consider matters which require decisions outside the scheduled meetings. All meetings are held in Jersey. The Board held its first meeting on listing in 
February and its first scheduled quarterly meeting in March 2016.
Outside the scheduled meetings of the Board, the Directors maintain frequent contact with each other to discuss any issues of concern they may have 
relating to the Company or their areas of responsibility, and to keep themselves fully briefed on the Company’s operations.
Independent Non-Executive Directors
The independent Non-Executive Directors bring a broad range of business and property experience to the Company and have a particular responsibility 
to monitor and challenge independently and constructively the performance of the executive management team in the delivery of the agreed objectives 
and targets.
Delegations of authority
Certain other matters are delegated to the Board committees, namely the Audit and Remuneration Committees.
The memberships, roles and activities of these committees are detailed on the Company’s website.
Each committee reports to the Board and the issues considered at meetings of the committees are presented by the respective committee chairmen.
Other governance matters
All of the Directors are aware that independent professional advice is available to each Director in order to properly discharge their duties as a Director. In 
addition, each Director and Board committee has access to the advice of the corporate Company Secretary.
The Company Secretary
The Company Secretary is Consortia Secretaries Limited, a limited liability company regulated by the Jersey Financial Services Commission, which 
provides full secretarial services. Michael Farrow and Richard Hebert are both Directors of the Company Secretary.
Effectiveness
In assessing the composition of the Board, the Directors have had regard to the following principles:
 – the Chairman should be an independent Non-Executive Director;
 – the role of the Chairman and the Chief Executive Officer should not be exercised by the same person;
 – the Board should include at least two independent Non-Executive Directors, increasing where additional expertise is considered desirable in certain 
areas, or to ensure a smooth transition between outgoing and incoming Non-Executive Directors; and
 – the Board should comprise Directors with an appropriate range of qualifications and expertise.
Governance Report 16
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Governance Report continued
Biographical details of the Directors are set out on pages 10 and 11 of this report.
The Directors are of the view that the Board and its committees consist of Directors with an appropriate balance of skills, experience, independence and 
diverse backgrounds to enable them to discharge their duties and responsibilities effectively.
Independence
The Board has adopted a formal policy for the determination of the independence of the Non-Executive Directors.
Among the key criteria of the independence policy are independence from management and the absence of a relationship, such as ownership, which 
could materially interfere with the Director’s independence of judgment.
Where contracts in the ordinary course of business exist between Circle Property Plc and a company in which a Director has declared an interest, these are 
reviewed for materiality both to the Group, and the other party to the contract. “Material” is defined in the policy as being where the relationship accounts 
for more than 10% of either party’s consolidated gross revenue per annum, although the test also takes other circumstances into account.
Appointments
Directors appointed by the Board are subject to election by shareholders at the following Annual General Meeting of the Company and thereafter are 
subject to re-election in accordance with the Company’s Memorandum and Articles of Association.
Commitments
All Directors have disclosed any significant commitments to the Board and confirmed that they have sufficient time to discharge their duties.
Conflict of interest
A Director has a duty to avoid a situation in which he or she has, or can have, a direct or indirect interest that conflicts, or possibly may conflict with the 
interests of the Company. The Board has satisfied itself that there is no compromise to the independence of those Directors who have appointments on 
the boards of, or relationships with, companies outside the Company. The Board requires Directors to declare all appointments and other situations 
which could result in a possible conflict of interest.
Board performance and evaluation
The Board is not formally evaluated at present but will consider this at the appropriate juncture. It is envisaged that annual assessments will take place.
Accountability
The Board is committed to providing shareholders with a clear assessment of the Company’s position and prospects. This is achieved through this report 
and as required other periodic financial and trading statements. The Board has delegated to the Audit Committee oversight of the relationship with the 
Company’s auditors.
Going concern
The Company’s business activities, together with factors likely to affect its future operations, financial position, and liquidity are set out in the 
Chairman’s Statement and the CEO’s Report in this report. In addition, note 23 to the consolidated financial statements discloses the Company’s 
financial risk management practices with respect to its capital structure, liquidity risk, interest rate risk, credit risk and other related matters.
The Directors’ statement on going concern is set out in note 2 on page 25 of the consolidated financial statements.
Internal Controls
The Board of Directors reviews the effectiveness of the Company’s system of internal controls. The internal control system is designed to manage the 
risk of failure to achieve the Company’s business objectives. This covers internal financial and operational controls, compliance and risk management. 
The Company had necessary procedures in place for the period under review and up to the date of approval of the report and consolidated financial 
statements. The Directors acknowledge their responsibility for the Company’s system of internal controls and for reviewing its effectiveness. The Board 
confirms the need for an ongoing process for identification, evaluation and management of significant risks faced by the Company.
The Audit Committee
The Audit Committee regularly reviews and reports to the Board on the effectiveness of the system of internal control. Given the size of the Company 
and the relative simplicity of the systems, the Board considers that there is no current requirement for an internal audit function. The procedures that 
have been established to provide internal financial control for the Company are considered appropriate for a company of its size and include controls over 
expenditure, regular reconciliations and management accounts.
Remuneration Committee
The Board has delegated to the Remuneration Committee responsibility for agreeing the remuneration policy for senior executives. FINANCIALS GOVERNANCE Strategic report 
17
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
SHAREHOLDER RELATIONS
Open, relevant and transparent communication with shareholders is given high priority. No shareholder or interested party is to be provided information 
that is not available to all shareholders without restrictive covenants related to trading in equities. The Board has processes to manage disclosures in 
compliance with all regulations and Company share trading policies.
All Directors are kept aware of changes in major shareholders in the Company and are available to meet with shareholders who have specific interests or 
concerns within the constraints of not placing any party in a position of advantage.
The Company issues its results to shareholders promptly and also publishes them on the Company’s website. Regular updates to record news in relation 
to the Company and the status of its assets are included on the Company’s website.
The Directors are available to meet with shareholders to discuss any issues and gain an understanding of the Company’s business, its strategies and 
governance. Meetings may also be held with the corporate governance representatives of institutional investors when requested.
At every Annual General Meeting shareholders are given the opportunity to put questions to the Chairman, Executive Directors and to other members of 
the Board that may be present.
Ian Henderson
Chairman 18
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Remuneration Report
TERMS OF REFERENCE
The Remuneration Committee (“RemCom” or “Committee”) was established on admission to AIM in February 2016 and comprises only Non-Executive 
Directors with the chairman of the RemCom being independent. The Terms of Reference have been informed by the best practice principles outlined by 
the UK Corporate Governance Code considering the nature of, size and stage of development of the business. Its objective is to design and maintain 
processes that retain and reward the Executive Directors and senior management in accordance with best practice, and to ensure that members of the 
executive management of the Company are provided with appropriate incentives to encourage enhanced performance and are, in a fair and reasonable 
manner, rewarded for their individual contributions to the success of the Company.
The RemCom shall agree with the board the framework or broad policy for the remuneration of the Company’s Chairman and Executive Directors. 
The remuneration of Non-Executive Directors shall be a matter for the chairman and the executive members of the Board.
When setting remuneration policy the RemCom may obtain reliable up-to-date information about remuneration in other companies.
The RemCom will approve the design of, and determine targets for, any performance related pay scheme operated by the Company and approve the total 
annual payments made under such schemes. It will ensure that failure is not rewarded and that the duty to mitigate loss is fully recognized. It will also 
determine the policy and scope for pension arrangements for each Executive Director.
The Committee will arrange for periodic reviews of its own performance and, at least annually, review its constitution and terms of reference to ensure it 
is operating effectively and recommend any changes it considers necessary for board approval.
The Committee is authorised by the board to obtain, at the Company’s expense, outside legal or other professional advice on any matters within its 
terms of reference.
REPORTING RESPONSIBILITIES
The Committee chairman shall report to the board on its proceedings after each meeting on all matters within its duties and responsibilities. 
The RemCom shall make whatever recommendations to the board it deems appropriate on any area within its remit where action or improvement is needed.
The RemCom shall produce a report of the Company’s remuneration policy and practices to be included in the Company’s annual report and ensure each 
year that it is put to shareholders for approval at the AGM.
POLICY
Non-Executive Directors 
The Company’s policy is to pay fees to Non-Executive Directors, including the Chairman, which are at the lower end of peer group companies listed on 
AIM with the intention of revision in line with the success of the Company. Non-executives are not currently eligible for bonuses, share options, long 
term incentives, pensions or other remuneration. They are entitled to reasonable expenses made in pursuit of their duties.
Executive Directors 
The Company’s policy is to provide remuneration and other benefits sufficient to attract, retain and motivate executives of the required calibre. Total 
remuneration includes salary, performance related bonus, benefits (including pension and health insurance) and long term incentives based on share 
options. The latter are designed specifically to align shareholder interest within the Company over time.
Remuneration during the period ended 31 March 2016
Salary or Fees 
£’000
Bonus  
£’000
LTIP 
 £’000
Benefits in Kind  
£’000
Pension 
Contributions  
£’000
Total Value  
£’000
Executive Directors
John Arnold 24,204  –  – 2,370  – 26,574 
Edward Olins 21,813  –  – 1,758  – 23,571 
Non-Executive Directors –
Ian Henderson 6,079  –  –  –  – 6,079 
James Hambro 2,432  –  –  –  – 2,432 
Duke of Roxburghe 2,432  –  –  –  – 2,432 
Michael Farrow 2,466  –  –  –  – 2,466 
Richard Hebert 2,466  –  –  –  – 2,466 
Total 61,892  –  – 4,128  – 66,020 FINANCIALS GOVERNANCE Strategic report 
19
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
BONUS
A bonus may be awarded to an employee of the Company. Any annual bonus is restricted to 100% of salary for the year under consideration. The Key 
Performance Indicators comprise the net asset value, EBITDA and maintenance of dividend policy and having regard always to the individual 
performance of the Executive and of the business as a whole but such bonus awards remain at the absolute discretion of the board.
DEFINED CONTRIBUTION PENSION PLAN
The Company operates a defined contribution pension plan for the executives and senior management. Currently only John Arnold and Edward Olins 
have been offered this benefit.
LONG TERM INCENTIVE PLAN (THE “LTIP”)
A key employee of the Company may be invited to join the LTIP scheme, the purpose of which is to align the longer term objectives of shareholders and 
management. LTIP awards will be granted annually. Initial awards were granted on 11 February 2016 in the amount of 134,229 options to John Arnold 
and 120,805 to Edward Olins. Awards will take the form of a conditional right or nil cost option to acquire Ordinary shares. There will follow a three year 
vesting period in which the performance of the Company must satisfy the targets in order that the awards will vest at the end of that period. The 
targets set will be based on both Total Shareholder Return and Net Asset Value adding back dividends compared with both a bespoke basket of peer 
companies and the appropriate IPD Property Index.
There are standard good and bad leaver provisions included in the LTIP terms. Where awards vest the beneficiary will be entitled to the notional 
dividends accrued over the three year period. Standard “claw back” provisions are included as is the absolute discretion of the Board to deal with 
unvested shares.
The quantum of LTIP awards is restricted to 100% of the equivalent salary of the executive. In numeric terms the annual awards are capped at 765,102 
shares (at a price of £1.49 per ordinary share) which will alter from time to time in line with the salary and share price.
Michael Farrow
Committee Chairman 20
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Independent Auditor’s Report to the Members 
of Circle Property Plc 
We have audited the consolidated financial statements of Circle Property Plc (the “company”) and its subsidiaries (collectively the “group”) for the period 
from incorporation on 4 December 2015 to 31 March 2016 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated 
Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash Flows and the related notes. 
The financial reporting framework that has been applied in their preparation is International Financial Reporting Standards as adopted by the EU.
This report is made solely to the company’s members, as a body, in accordance with Article 113A of the Companies (Jersey) Law 1991. Our audit work 
has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no 
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s 
members as a body, for our audit work, for this report, or for the opinions we have formed.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
As explained more fully in the Statement of Directors’ Responsibilities set out on page 13, the directors are responsible for the preparation of the 
financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit, and express an opinion on, the financial 
statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the 
Auditing Practices Board’s Ethical Standards for Auditors.
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the 
financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting 
policies are appropriate to the group’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant 
accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-
financial information in the Highlights of the period, the Chairman’s statement, the CEO’s review, the Portfolio review, the Board of Directors, the 
Directors’ report, the Governance report and the Remuneration Report to identify material inconsistencies with the audited financial statements and to 
identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of 
performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
OPINION ON FINANCIAL STATEMENTS
In our opinion the financial statements:
 – give a true and fair view of the state of the group’s affairs as at 31 March 2016 and of the group’s profit for the period from 4 December 2015 to 
31 March 2016;
 – have been properly prepared in accordance with International Financial Reporting Standards as adopted by the EU; and
 – have been prepared in accordance with the requirements of the Companies (Jersey) Law 1991.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
We have nothing to report in respect of the following matters where the Companies (Jersey) Law 1991 requires us to report to you if, in our opinion:
 – adequate accounting records have not been kept by the company; or
 – the company financial statements are not in agreement with the accounting records; or
 – we have not received all the information and explanations we require for our audit.
Lesley Averell
for and on behalf of KPMG Channel Islands Limited
Chartered Accountants
37 Esplanade
St Helier
Jersey, JE4 8WQ
22 August 2016 FINANCIALS GOVERNANCE Strategic report 
21
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Note
4 December 
 2015  
to 31 March  
2016
£
Rental income 4 664,392 
Other income 4 595,178 
1,259,570 
Property expenses 5 (122,529)
Net rental income 1,137,041 
Administrative expenses 6 (293,255)
Negative goodwill on acquisition of CPUT 13 3,817 ,264 
Impairment of goodwill on acquisition of CPML 13 (2,117 ,591)
Listing costs 12 (1,326,054)
Operating profit 1,217 ,405 
Finance income 8 17,875 
Finance costs 9 (129,476)
Net finance costs (111,601)
Profit for the period before taxation 1,105,804 
Taxation 10 (32,399)
Profit after taxation 1,073,405
Earnings per share 11 0.04
There is no comprehensive income other than that included in the profit for the period. All of the profit for the period is attributable to the owners of the Company.
All items in the above statement derive from continuing operations.
The Company’s loss for the period (non-consolidated) was £1,480,133.
The notes on pages 25 to 40 are an integral part of these consolidated financial statements.
Consolidated Statement of Comprehensive Income
For the period from 4 December 2015 to 31 March 2016 22
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Note
31 March  
2016
£
Non-current assets
Investment properties 14 75,780,824 
Property plant and equipment 22,371 
Trade and other receivables 15 1,771,394 
Deferred tax 10 914,949 
78,489,538 
Current assets
Trade and other receivables 15 2,555,037 
Deferred tax 10 104,504 
Cash and cash equivalents 16 4,516,153 
7,175,694 
Total assets 85,665,232 
Equity
Stated capital 20 42,542,179 
Treasury share reserve (380,001)
Retained earnings 1,073,405 
Total equity 43,235,583 
Non-current liabilities
Loan borrowings 17 40,028,371 
Financial liability at fair value through profit and loss 18 94,855 
40,123,226 
Current liabilities
Trade and other payables 19 2,306,423 
2,306,423 
Total liabilities 42,429,649 
Total liabilities and equity 85,665,232
The statements on pages 21 to 40 were approved and authorised for issue by the Board of Directors on 22 August 2016 and signed on its behalf by:
Richard Hebert
The notes on pages 25 to 40 are an integral part of these consolidated financial statements.
Consolidated Statement of Financial Position
As at 31 March 2016 FINANCIALS GOVERNANCE Strategic report 
23
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Share  
capital  
£
Treasury  
shares reserve  
£
Retained  
earnings  
£
Total  
£
Profit for the period – – 1,073,405 1,073,405 
Issue of ordinary share capital 42,162,178 – – 42,162,178 
Issue of treasury shares 380,001 (380,001) – –
Balance at 31 March 2016 42,542,179 (380,001) 1,073,405 43,235,583 
The notes on pages 25 to 40 are an integral part of these consolidated financial statements.
Consolidated Statement of Changes in Equity
For the period from 4 December 2015 to 31 March 2016 24
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Note
4 December 
 2015  
to 31 March  
2016
£
Cash flows from operating activities
Profit for the period 1,105,804 
Adjustments for: 
Finance income (17,875)
Finance expense 129,476 
Depreciation 1,195 
Amortisation of loan arrangement fees 7,223 
Fair value movement on interest rate swaps 2,146 
Effective interest rate adjustment on loan borrowings (53,578)
Negative goodwill on acquisition of CPUT 13 (3,817 ,264)
Impairment of goodwill on acquisition of CPML 13 2,117,591 
Decrease in trade and other receivables 1,712,781 
Decrease in trade and other payables (580,888)
Cash generated from operating activities 606,611
Interest paid (60,158)
Interest received 4,107 
Net cash from operating activities 550,560 
Cash flows from investing activities
Cost of additions to investment properties (266,755)
Cost of additions of property plant and equipment (15,150)
Acquisition of subsidiaries, net of cash acquired (i) 13 3,891,568 
Net cash from investing activities 3,609,663
Cash flows from financing activities 
Repayment of borrowings (827,790)
Proceeds of issue of shares 20 1,183,720 
Net cash used in financing activities 355,930 
Net increase in cash and cash equivalents 4,516,153 
Cash and cash equivalents at the end of the period 4,516,153 
(i) The acquisition of subsidiaries incorporates certain non cash elements as disclosed in note 13. The cash elements are as follows:
£
Cash paid for acquisition of CPML (1,028,313)
Less: cash acquired in respect of acquisition of CPUT 4,621,745 
 cash acquired in respect of acquisition of CPML 298,136
3,891,568 
The notes on pages 25 to 40 are an integral part of these consolidated financial statements.
Consolidated Statement of Cash Flows
For the period from 4 December 2015 to 31 March 2016 FINANCIALS GOVERNANCE Strategic report 
25
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
1 GENERAL INFORMATION
These financial statements are for Circle Property Plc (“the Company”) and its subsidiary undertakings.
The Company was admitted to the AIM market of the London Stock Exchange (“AIM”) on 16 February 2016 having been incorporated in Jersey on 
4 December 2015 as a Jersey Public Company. The address of its registered office is 3rd Floor, Standard Bank House, 47-49 La Motte Street, St Helier, 
Jersey, JE2 4SZ.
Upon admission to AIM the Company acquired all of the units of Circle Property Unit Trust (“CPUT”), a Jersey closed ended unlisted Unit Trust in exchange 
for the issue to Unitholders of Ordinary Shares. At the same time the Company acquired 100% ownership of the subsidiary entities of CPUT namely 
Circle Property (Milton Keynes) Limited (“CPMKL”) and Circle Property (Warrington) Limited (“CPWL”). Both CPMKL and CPWL are registered in Jersey and 
hold certain properties in a nominee capacity on behalf of CPUT. The Company also acquired 100% ownership of Circle Property Management Limited 
(“CPML”) a UK registered company who acted as property manager for CPUT on an exclusive basis to provide property management services in respect 
of the day-to-day management of all of the properties within CPUT’s portfolio. The provision of property management services to the Group has been 
now been internalised and it is intended to place CPML into liquidation as soon as possible. Further information relating to the acquisitions are detailed in 
note 13 on pages 32 and 33 of the consolidated financial statements.
The nature of the Company’s operations and its principal activities are set out in the CEO review on page 4.
2 PRINCIPAL ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The Group financial statements show a true and fair view and have been prepared on a going concern basis and in accordance with International 
Financial Reporting Standards (IFRS) as adopted by the EU and the Companies (Jersey) Law 1991. The financial statements have been prepared in 
pounds sterling, which is the Group’s functional currency, and under the historic cost convention as modified by the revaluation of investment property 
and derivative financial instruments which are measured at fair value.
GOING CONCERN
The Group’s business activities, together with the factors likely to affect its future development, performance and position are set out in the CEO 
review on page 4. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are described in these financial 
statements. In addition note 23 to the financial statements includes the Group’s financial management objectives, details of its financial instruments 
and its exposures to credit, liquidity and market risk. The Group’s policy for managing capital is included in note 21.
The Group has adequate financial resources together with long term rental contracts with a wide range of tenants. As a consequence, the Directors 
believe that the Group is well placed to manage its business risk successfully.
The Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the 
foreseeable future. Accordingly, they have adopted the going concern basis in preparing the financial statements.
BASIS OF CONSOLIDATION AND BUSINESS COMBINATIONS
The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries, as outlined in note 24.
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has variable returns from, its 
involvement with the entity and has the ability to affect those returns through its power over the entity. Intragroup balances and any unrealised gains 
and losses arising from intragroup transactions are eliminated in preparing the Consolidated Financial Statements.
The results of subsidiaries acquired during the period are included from the effective date of acquisition, being the date on which the Group obtains 
control. They are deconsolidated on the date that control ceases.
If the consideration transferred for the acquisition of a subsidiary is more than the fair value of the assets and liabilities acquired, the difference is 
recognised as goodwill and is written off directly in the Statement of Comprehensive Income if there is no future economic benefit associated with the 
goodwill.
If the consideration transferred for the acquisition of a subsidiary is less than the fair value of the assets and liabilities acquired, the difference is 
recognised as negative goodwill and is reflected directly in the Statement of Comprehensive Income.
Acquisition-related costs are expensed as incurred.
ADOPTION OF NEW AND REVISED IFRSS
All standards effective as at the first reporting date have been applied in the preparation of the consolidated financial statements.
Notes to the consolidated financial statements
For the period from 4 December 2015 to 31 March 2016 26
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Notes to the consolidated financial statements continued
For the period from 4 December 2015 to 31 March 2016
2 PRINCIPAL ACCOUNTING POLICIES CONTINUED
NEW STANDARDS AND INTERPRETATIONS
As of the date of the approval of these financial statements the following Standards and Interpretations, some of which have not been endorsed by the 
EU, have not been applied in these financial statements but were in issue but not yet effective:
International Accounting Standards (IAS/IFRSs)
Effective 
date – period 
beginning on or 
after
Endorsed by the EU:
Annual improvements to IFRS (2012 - 2014) 1 January 2016
Not yet endorsed by the EU: 
IAS 1 (amendment) ‘Presentation of Financial Statements - Disclosure initiative 1 January 2016
IAS 16 (amendment) ‘Property, Plant and Equipment’ 1 January 2016
IAS 38 (amendment) ‘Intangible Assets’ - Clarification of acceptable methods of depreciation and amortisation 1 January 2016
IAS 27 (amendment) ‘Separate Financial Statements’ - Equity Method in Separate Financial Statements 1 January 2016
IFRS 10 (amendment) ‘Consolidated Financial Statements’ 1 January 2016
IAS 28 (amendment) ‘Investments in Associates and Joint Ventures’ - Sale or contribution of assets between an investor and its 
associate or joint venture 1 January 2016
IFRS 11 (amendment) ‘Joint Arrangements’ - Accounting for acquisitions of interests in joint operations 1 January 2016
IFRS 14 ‘Regulatory Deferral Accounts’ 1 January 2016
IAS 7 (amendment) ‘Statement of Cash Flows’ 1 January 2016
IAS 12 (amendment) ‘Income Taxes’ 1 January 2017
IFRS 9 ‘Financial Instruments’ 1 January 2018
IFRS 15 ‘Revenue from Contracts with Customers’ 1 January 2018
IFRS 16 ‘Leases’ 1 January 2019
The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the financial 
statements of the Group. The Group does not intend to apply any of these pronouncements early.
ESTIMATES AND JUDGEMENTS
The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect 
the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenue and expenses during the period. The 
nature of the estimation means that actual outcomes could differ from those estimates. Estimates and judgements are continually evaluated and are 
based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to 
accounting estimates are recognised prospectively.
Fair value of investment property
The Directors employed professional valuer’s Savills (UK) Limited to perform valuations of the investment property using Royal Institute of Chartered 
Surveyors (“RICS”) valuation standards as at 31 March 2016. Volatility in the global financial system is reflected in commercial real estate markets. In 
arriving at their estimate of market value as at 31 March 2016, the valuer’s used their market knowledge and professional judgement and did not rely 
solely on comparable historical transactions. There is an inherent degree of uncertainty when using professional judgement in estimating the market 
values of investment property.
The significant methods and assumptions used by the valuer’s in estimating the fair value of investment property are set out in note 14.
Fair value of interest rate swap
The fair values of interest rate swaps have been calculated and provided by the relevant counterparty bank using recognized valuation techniques. 
Details of the interest rate swaps are set out in note 18.
Business combinations
In determining whether to account for a property acquisition in a special purpose vehicle as a business combination or as an acquisition of an investment 
property, management make an assessment based on the application of IFRS 3 “Business Combinations”. Management make a professional judgement 
on the inputs, processes and outputs of the property prior to acquisition and whether these elements represent an acquisition of a fully functioning 
business or whether these are limited and represent solely an asset purchase.
In respect of business combinations during the period, estimation and judgement was applied in assessing the fair value of the assets and liabilities at 
the date of acquisition. The significant methods and assumptions applied are disclosed in note 13.
Impairment of goodwill
The Group is required to test whether goodwill arising on the business combinations has suffered any impairment. The assessment and quantification of 
any such impairment charges are determined by key management judgements in terms of:
 – The extent to which the goodwill is, in substance, a cost to the Company; and
 – an assessment of the expected future life of the cash generating unit on which goodwill arises, being goodwill’s indefinite useful economic life.
As detailed in note 13 goodwill on the acquisition of Circle Property Management Limited has been tested for impairment and written down to a value of nil. FINANCIALS GOVERNANCE Strategic report 
27
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
2 PRINCIPAL ACCOUNTING POLICIES CONTINUED
Operating lease commitments – Group as lessor
The Group has entered into commercial property leases on its investment property portfolio. The Group has determined that it retains all the significant 
risks and rewards of ownership of these properties and therefore accounts for them as operating leases.
REVENUE RECOGNITION 
Rental income from operating leases is recognised in profit or loss on a straight-line basis over the term of the lease. The term of the lease is the full 
lease period where there is a reasonable expectation at the inception of the lease that the tenant will not utilise the lease break clause. Lease incentives 
granted are spread evenly over the term of the lease. 
ADMINISTRATIVE FEES, LISTING COSTS AND OTHER EXPENSES
Administrative and other expenses are recognised in profit or loss in the period in which they are incurred. Listing costs as detailed in note 12 are 
recognised in profit and loss in the period in which they are incurred. 
FINANCE INCOME AND FINANCE COSTS
Finance income comprises bank and loan interest income. Finance costs comprise interest expense on borrowings and net interest on interest rate 
swaps. Finance income and finance costs are recognised on an effective interest rate basis.
INVESTMENT PROPERTY 
Property that is held for long-term rental yields or for capital appreciation or both, is classified as investment property in accordance with IAS 40 
‘Investment Property’.
Investment properties, including properties under development, are initially recognised at cost, being the fair value of consideration given, including 
associated transaction costs. Any subsequent qualifying capital expenditure incurred in improving investment properties is capitalised in the period in 
which the expenditure is incurred and included in the book cost of the properties.
After initial recognition, investment properties are measured at fair value, with unrealised gains and losses recognised in the statement of 
comprehensive income. The fair value is based on valuations provided by Savills (UK) Limited at the balance sheet date using recognised valuation 
techniques.
Technique used for valuing investment properties
The Traditional Method converts anticipated future cash flow benefits in the form of rental income into present value. This approach requires careful 
estimation of future benefits and application of investor yield or return requirements. One approach to value the property on this basis is to capitalise 
net rental income on the basis of an Initial Yield, generally referred to as the ‘All Risks Yield’ approach or ‘Net Initial Yield’ approach. 
These fair values are based on active market prices, adjusted if necessary, for any difference in the nature, location or condition of the specific assets.
The fair value of investment properties is measured based on each property’s highest and best use from a market participant’s perspective and 
considers the potential uses of the property that are physically possible, legally permissible and financially feasible. An investment property shall be 
derecognised on disposal or at a time that no benefit is expected from future use or disposal. Any gain or loss is determined as the difference between 
the net disposal proceeds and the carrying amount and is recognised in the consolidated statement of comprehensive income.
Recognition and derecognition occurs on the completion of a sale between a willing buyer and a willing seller. Any investment properties on which 
contracts for sale have been exchanged but which had not completed at the period end are disclosed as properties held for sale and stated at fair value. 
At 31 March 2016 none existed. 
In accordance with IAS 40 ‘Investment Property’ property that is being constructed or developed for future use as investment property is classified as 
investment property during its construction or development. At 31 March 2016 none existed.
OPERATING LEASES
Properties leased out under operating leases, where the Group is the lessor, are included in investment property in the consolidated statement of 
financial position. Please refer to revenue recognition on page 27 for the discussion of recognition of rental income.
FINANCIAL INSTRUMENTS
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less. These are carried at cost.
Trade and other receivables 
Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised 
initially at fair value plus any directly attributable transactions costs. Subsequent to initial recognition loans and receivables are measured at amortised 
cost using the effective interest method, less any impairment losses.
Trade and other payables
Trade payables are not interest bearing and are recognised initially at fair value. The subsequent carrying amount of these liabilities approximates their 
fair value. 28
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Notes to the consolidated financial statements continued
For the period from 4 December 2015 to 31 March 2016
2 PRINCIPAL ACCOUNTING POLICIES CONTINUED
FINANCIAL INSTRUMENTS CONTINUED
Loan borrowings
Loan borrowings are recorded initially at fair value, net of direct issue costs incurred. Loan borrowings are subsequently stated at amortised cost; any 
difference between the proceeds (net of transaction costs) and the redemption value is recognised, within finance costs, in the income statement over 
the term of the borrowings using the effective interest rate method.
Derivative financial instruments
The Group uses derivative financial instruments to hedge its risk associated with interest rate fluctuations. The Group’s policy is not to trade in 
derivative instruments. The Group does not apply hedge accounting.
Recognition of the derivative financial instruments takes place on the date at which a derivative contract is entered into. Such derivative financial 
instruments are measured initially and subsequently at fair value; transaction costs are included as incurred in the statement of comprehensive income 
under finance costs. Gains or losses on derivatives are recognised in the statement of comprehensive income in net gain or loss from financial 
instruments at fair value through profit or loss. Interest expenses on derivative financial liabilities are included as incurred in the statement of 
comprehensive income in finance costs.
Impairment
The Group considers evidence of impairment for these assets at both an individual asset and a collective level. All individually significant assets are 
individually assessed for impairment. Those found not to be impaired are then collectively assessed for any impairment that has been incurred but not 
yet individually identified. Assets that are not individually significant are collectively assessed for impairment. Collective assessment is carried out by 
grouping together assets with similar risk characteristics.
In assessing collective impairment, the Group uses historical information on the timing of recoveries and the amount of loss incurred, and makes an 
adjustment if current economic and credit conditions are such that the actual losses are likely to be greater or lesser than suggested by historical trends.
An impairment loss is calculated as the difference between an asset’s carrying amount and the present value of the estimated future cash flows 
discounted at the asset’s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account. When the Group 
considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss 
subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously 
recognised impairment loss is reversed through profit or loss.
TAXATION
The Company, CPUT and CPUT’s subsidiary investments are registered in Jersey, Channel Islands. The Company and CPUT’s subsidiaries are taxed at the 
Jersey company standard rate of 0%. The Unit Trust is not subject to tax in Jersey.
Circle Property Management Limited (“CPML”) is registered in the United Kingdom and is subject to corporation tax at a rate of 20%. From the date of the 
acquisition of CPML the Company is no longer in receipt of income and it is anticipated that no further corporation tax will be payable.
The Company is registered under the Non-Resident Landlord Scheme and is liable to United Kingdom taxation at a rate of 20% on net rental income from 
its investment properties. No provision for taxation has been included in these financial statements as capital allowances reduce the tax payable to nil. 
DEFERRED TAXATION
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial 
statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. 
Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is 
probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not 
recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and 
liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that 
sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is 
charged or credited in profit or loss, except when it relates to items charged or credited directly to other comprehensive income, in which case the 
deferred tax is also dealt with in other comprehensive income.
SHARE CAPITAL
Ordinary share capital is classified as equity. Dividends are recognised as a liability in the period in which they are approved. FINANCIALS GOVERNANCE Strategic report 
29
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
2 PRINCIPAL ACCOUNTING POLICIES CONTINUED
TREASURY SHARES
Treasury shares held are equity shares of the Company issued to Circle Property Plc for the purpose of awarding shares in the 2016 Long Term Incentive 
Plan (“LTIP”). The shares are recorded at cost and are deducted from equity. 
SHARE BASED PAYMENTS
The Group has applied the requirements of IFRS 2 share based payment to share options. The fair value of the share options are determined at the grant 
date and are expensed on a straight line basis over the vesting period, based on the Group’s estimate of shares that will eventually vest and adjusted for 
the effect of non-market based vesting conditions.
PROVISIONS
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of 
resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. 
Where the Group expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the 
reimbursement is virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement. If the effect of 
the time value of money is material, provisions are discounted using a current pre–tax rate that reflects, where appropriate, the risks specific to the 
liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a borrowing cost.
GOODWILL
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable assets of the acquired 
subsidiary at the date of acquisition. Goodwill on acquisitions of subsidiaries is included within intangible assets. Goodwill is tested annually for 
impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of 
an entity include the carrying amount of goodwill relating to the entity sold.
3 OPERATING SEGMENTS
The Group has adopted IFRS 8 “Operating segments” which requires operating segments to be identified on the basis of internal reports about 
components of the Group that are regularly reviewed by the Chief Operating Decision Maker (“CODM”) to allocate resources to the segments and to 
assess their performance. For the purposes of IFRS 8 the CODM takes the form of the two executive Directors of the Company.
The CODM considers that there is only one geographical segment, which is the United Kingdom, and one reporting segment, which is investment in 
commercial property. Therefore no segmental reporting is required.
4 REVENUE
4 December 
 2015  
to 31 March  
2016
£
Rental income 664,392
Insurance recovery 18,884
Other income 576,294 
1,259,570
5 PROPERTY EXPENSES
4 December 
 2015  
to 31 March  
2016
£
Property expenses 18,450 
Property service charges 35,828 
Property repairs and maintenance costs 41,103 
Property insurance 19,157 
Property rates 7,991 
122,529 30
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Notes to the consolidated financial statements continued
For the period from 4 December 2015 to 31 March 2016
6 ADMINISTRATIVE EXPENSES
4 December 
 2015  
to 31 March  
2016
£
Staff costs 77,913 
Legal and professional fees 140,914 
Audit fees 32,500 
Accountancy fees 1,733 
Rent, rates and other office costs 5,696 
Other overheads 33,304 
Depreciation of tangible fixed assets 1,195 
293,255 
7 EMPLOYEES AND DIRECTORS’ REMUNERATION
4 December 
 2015  
to 31 March  
2016
£
Staff costs during the period were as follows: 
Non-Executive Directors’ fees 15,874 
Wages and salaries 50,083 
Social security costs 7,826 
Other employment costs 4,130 
77,913
8 FINANCE INCOME
4 December 
 2015  
to 31 March  
2016
£
Bank interest 4,107 
Loan interest 13,768 
17,875
9 FINANCE COSTS
4 December 
 2015  
to 31 March  
2016
£
Swap interest 16,749 
Loan interest 110,581 
Fair value movement on interest rate swaps 2,146 
129,476 FINANCIALS GOVERNANCE Strategic report 
31
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
10 TAXATION
4 December 
 2015  
to 31 March  
2016
£
Current tax –
Deferred tax 32,399 
32,399
A reconciliation of the current tax charge applicable to the results at the statutory income tax rate to the charge for the period is as follows: 
4 December 
 2015  
to 31 March  
2016
£
Current taxation
Profit for the period before tax 1,105,804 
UK income tax at a rate of 20% 221,161 
Effects of:
Negative goodwill on acquisition of CPUT non-taxable (763,453)
Impairment of goodwill on acquisition of CPML non-taxable 423,518 
Expenses not deductible for tax purposes 278,597 
Non-taxable income (128,197)
Capital allowances (31,626)
–
4 December 
 2015  
to 31 March  
2016
£
Deferred taxation
Deferred taxes at 31 March relates to the following:
Deferred tax asset
Capital allowances available to carry forward 1,019,453 
Deferred tax recognised on the acquisition of CPUT 1,051,852 
Deferred tax charge for the period (32,399)
Deferred tax asset carried forward 1,019,453
At 31 March 2016, the Group had capital allowances of £5,097 ,266 available to carry forward against future profits. A deferred tax asset of £1,019,453 
has been recognised as it is expected to be utilised in the foreseeable future.
11 EARNINGS PER SHARE
Basic earnings per share has been calculated on profit after tax attributable to ordinary shareholders for the period (as shown on the Consolidated 
Statement of Comprehensive Income) and the weighted average number of ordinary shares in issue during the period.
4 December 
 2015  
to 31 March  
2016
£
Profit for the period 1,073,405 
Weighted average number of shares 28,165,517 
Earnings per ordinary share: 0.04
 
For the purposes of the above calculation the period is deemed to start from 16 February 2016 being the date on which operating revenue and 
expenditure commenced.
In the opinion of the Board, treasury shares held to satisfy share awards to management, as disclosed in note 22, currently do not have any material 
value and hence do not have any dilutive effect. Therefore no diluted earnings per share has been presented. 32
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Notes to the consolidated financial statements continued
For the period from 4 December 2015 to 31 March 2016
12 LISTING COSTS
4 December 
 2015  
to 31 March  
2016
£
Nomad fees 307 ,193 
Legal and professional fees 450,987 
Audit and advisory fees 232,700 
Administration fees 168,114 
Tax and accountancy fees 65,000 
Valuation fees 49,000 
Other fees 53,060 
1,326,054
 
The costs listed above related to the Company’s admission to AIM. The costs may also include some elements relating to the acquisition of the subsidiary 
entities described in note 13. However, as the acquisition of the subsidiary entities was conditional on the Company listing and, due to the combined 
nature of the fees payable, they have all been presented as listing costs in the consolidated statement of comprehensive income.
13 BUSINESS COMBINATIONS
CIRCLE PROPERTY UNIT TRUST (“CPUT”)
On 16 February 2016 the Group acquired 100% of the Units of CPUT for a consideration of £39,884,764. The consideration was satisfied by issuing 
26,768,298 ordinary shares at a price of £1.49. CPUT is a closed-ended unit trust in Jersey regulated under the Control of Borrowings (Jersey) Order 
1958 and was purchased in order to acquire CPUT’s property portfolio.
Fair value at 
acquisition date
£
Investment properties 77 ,264,267
Lease incentive debtor of investment properties acquired (1,903,808)
Property plant and equipment 4,000 
Trade and other receivables 5,782,155 
Deferred tax asset 1,051,852 
Cash and cash equivalents 4,621,745 
Loan borrowings (40,902,516)
Financial liabilities at fair value through profit and loss (92,709)
Trade and other payables (2,122,958)
Total identifiable net assets acquired 43,702,028 
Consideration transferred 39,884,764 
Negative goodwill on acquisition 3,817 ,264 
 
The acquired subsidiary contributed £869,864 to the profit of the Group.
The fair value of the investment properties at acquisition of £77 ,264,267 was based on a valuation performed by Savills (UK) Limited (“Savills”) at the 
time of the acquisition amounting to £73,928,000. This was compared to the subsequent valuation prepared by Savills as at 31 March 2016 which 
confirmed that between 16 February 2016 and 31 March 2016 there were no material property events and that the unrealised gains on property 
revaluation amounting to £3,336,267 should be included in the fair value of the investment properties acquired.
The fair value of the loan borrowings was calculated at the date of acquisition using a discounted cash flow model and applying a rate of interest to the 
loan borrowings of 1.85% over LIBOR as the Directors believe this rate is representative of a market rate at the date of acquisition.
The deferred tax asset arises at the date of acquisition in respect of the capital allowances pool attributable to the previous unitholders of CPUT which 
will transfer to the Company under a section 198 CAA 2001 election.
Of the trade and other receivables totalling £5,782,155, £4,324,210 pertain to contractual amounts due. None of these were deemed to be uncollectable 
at 16 February 2016. The remaining £1,457 ,945 related to a debtor due to CPUT by the Company which is considered to be fully recoverable.
The consideration for the purchase of CPUT of £39,884,764 was calculated based on CPUT’s net asset value as at 30 September 2015 of £42,614,315 
discounted for the value of the consideration for the purchase of Circle Property Management Limited of £2,122,077 and a distribution to Unitholders 
on CPUT’s register at 30 September of £669,207. The price per Unit of £1.49 was rounded to the nearest pence resulting in a rounding difference of 
£61,663, which is not considered material.
The difference between the purchase consideration and the fair value of net assets at the date of acquisition resulted in negative goodwill of 
£3,817 ,264 which has been recognised in profit and loss for the period. FINANCIALS GOVERNANCE Strategic report 
33
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
13 BUSINESS COMBINATIONS CONTINUED
CIRCLE PROPERTY MANAGEMENT LIMITED (“CPML”)
On 16 February 2016 the Group acquired 100% of the share capital of CPML, who were contracted by CPUT to manage CPUT’s portfolio of properties 
under a contract which was due to expire in October 2016. The purpose of the purchase of CPML was to facilitate the internalisation of the 
management team and to compensate them for the loss of opportunity under the contract. The acquisition was completed at a negotiated price which 
was corroborated by Lubbock Fine Limited, an independent firm of Chartered Accountants.
The purchase consideration of £2,122,007 was satisfied by issuing 734,023 ordinary shares at a price of £1.49 and by cash of £1,028,313.
Fair value at 
acquisition date
£
Property plant and equipment 4,416 
Trade and other receivables 243,288 
Cash and cash equivalents 298,136 
Trade and other payables (541,424)
Total identifiable net assets acquired 4,416 
Consideration transferred 2,122,007 
Goodwill on acquisition 2,117,591
The acquired subsidiary contributed nil to the profit of the Group.
The trade and other receivables comprise gross contractual amounts due of £243,288 all of which are expected to be recoverable.
The difference between the consideration and the carrying value of net assets at the acquisition date represents goodwill on acquisition. It is 
anticipated that subsequent to the period end the remaining assets of CPML will be transferred to the Company and that CPML will be dissolved.
Goodwill is tested annually for impairment and the goodwill on the acquisition of CPML has been written down to a value of nil. Such write down is 
recognised as an impairment loss in profit and loss.
14 INVESTMENT PROPERTIES
31 March 
2016
£
Fair value of investment properties acquired (note 13) 77 ,264,267 
Cost of additions to investment properties 420,365 
Lease incentive amortisation 50,368 
Fair value of investment properties per valuation report 77 ,735,000 
Unamortised lease incentives (1,954,176)
Closing fair value 75,780,824 
No properties were held for sale at 31 March 2016. 
As at 31 March 2016 the fair value of investment properties under development included in the above amount was nil. 
£73,735,000 of the above properties’ value, estimated by the valuer, relate to property held on a freehold basis and £4,000,000 on a long leasehold basis.
The fair value of the Group’s investment properties per the Valuation Report amounted to £77 ,735,000. The difference between the fair value of the 
investment properties per the Valuation Report and the fair value per the balance sheet of £1,954,176 relates to unamortised lease incentives which 
are recorded in the financial statements within non-current and current assets.
The Group has pledged all of its investment properties to secure banking facilities granted to the Group as detailed in note 17.
The fair value of the Group’s investment properties at 31 March 2016 has been arrived at on the basis of valuation carried out by Savills (UK) Limited. 
The valuation was carried out in accordance with the Practice Statements contained in the Appraisal and Valuation Standards as published by the RICS. 
In forming their opinion of the fair value, the independent valuer’s had regard to the current best use of the property, its investment attributes and 
recent comparable transactions. The valuation was carried out using the “All Risks Yield” method taking into consideration both sales and rental evidence 
and formulating the opinion of market value taking into account the properties’ locations, specifications and specific characteristics.
All investment properties are categorised as Level 3 fair values as they use significant unobservable inputs. There were no transfers between Levels 
during the period. 34
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Notes to the consolidated financial statements continued
For the period from 4 December 2015 to 31 March 2016
14 INVESTMENT PROPERTIES CONTINUED
The following table shows the valuation technique used in measuring the fair value of investment properties, as well as the significant unobservable 
inputs used.
Sector
Valuation  
£
Valuation  
technique Significant unobservable inputs
Inter-relationship between key unobservable inputs 
and fair value measurement
Office 67 ,150,000 All Risks Yield – Estimated void periods range from 6 to 
24 months after the end of each lease.
 – Market rents have been based on the 
specific circumstances of each property.
 – Estimated rent free periods range from 
6 to 12 months on new leases.
 – Letting fees have been estimated on 
vacant units.
 – Rent per square foot ranges from 
£2 to £46.
 – Net equivalent yields range from 5.66% 
to 9.63%.
 – Market conditions are considered based 
on the property’s location.
The estimated fair value would increase/
(decrease) if: 
 – void periods were shorter/(longer);
 – market rents were higher/(lower);
 – rent free periods were shorter/(longer);
 – letting fees were lower/(higher);
 – rent per square foot were higher/(lower); 
 – equivalent yields were lower/(higher); or
 – market conditions were to improve/
(decline).
Retail Warehousing 3,725,000 
Retail 1,800,000
Industrial 1,125,000
Other 3,935,000
Total 77 ,735,000
The ranges are based on averages per property. Individual tenancies within properties may fall outside these ranges.    
15 TRADE AND OTHER RECEIVABLES
31 March 
2016
£
Non-current
Lease incentives 1,771,394 
Current
Circle Property Trading (Maidstone) Limited 1,526,167 
Loan interest due from Circle Property Trading (Maidstone) Limited 22,002 
Lease incentives 182,782 
Amounts due from property agents 100,956 
Amounts due from tenants 135,276 
VAT 387,031 
Other receivables 200,823 
2,555,037 
On 20 January 2016 the Group entered into a loan facility agreement with Circle Property Trading (Maidstone) Limited (“CPTML”) for an amount of 
£1,425,000. The purpose of the loan was to finance CPTML’s acquisition of a 999 year lease of the residential elements of the Group’s property located 
at 69-77 Week Street, Maidstone, Kent and its subsequent refurbishment and development works. Rent is charged under the lease at a rate of one 
peppercorn (if demanded). The loan is secured by a first legal mortgage over the property and a fixed charge over the assets of CPTML. The loan is 
interest bearing at a rate of 8% per annum and is due for repayment on 19 January 2017. On 17 March 2016 a deed of variation was entered into 
increasing the facility amount to £1,625,000.
16 CASH AND CASH EQUIVALENTS
31 March 
2016
£
RBSI 3,176,679 
National Westminster Bank plc 1,339,187 
Other cash 287 
4,516,153 
As at 31 March 2016 £382,335 of cash is held on blocked accounts. Of this, £131,048 relates to deposits received from tenants and £251,287 is held 
on an interest deposit account in relation to the loan borrowings disclosed in note 17. FINANCIALS GOVERNANCE Strategic report 
35
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
17 LOAN BORROWINGS
31 March 
2016
£
Fair value of loans acquired 40,902,516 
Loan repayments (827,790)
Effective interest rate and amortisation adjustment (46,355)
40,028,371
On 16 February 2016 a term loan and revolving credit facility liability of £38,796,067 with National Westminster Bank Plc and a credit facility liability of 
£827 ,790 with HSBC Bank Plc were taken on by the Group on acquisition of CPUT. The fair value at the date of acquisition of these facilities has been 
estimated at £40,902,516. The facility with HSBC Bank Plc was repaid in full on 10 March 2016. The National Westminster Bank Plc loan facility is for a 
total commitment of £39,200,000 and is secured by the investment properties and rental income detailed in notes 14 and 4. There is also a security 
interest agreement over the issued share capital of the CPUT’s wholly owned subsidiaries, Circle Property (Milton Keynes) Limited and Circle Property 
(Warrington) Limited who hold certain properties in a nominee capacity on behalf of CPUT. The term loan element of the facility is fully drawn down in 
the sum of £19,100,000 and bears interest at 2.95% over LIBOR. The revolving credit facility is drawn down in the sum of £19,866,135 and bears 
interest at 2.95% over LIBOR. The term loan and revolving credit facility have a repayment date of 31 January 2019.
The financial covenants in place relating to the facility are 55% loan to value, 2.25% interest cover and 11% debt to rent cover. There were no breaches 
of any of these covenants during the period.
On 21 June 2016 the Directors agreed a new £50m revolving facility with National Westminster Bank plc for the purpose of refinancing of CPUT’s 
existing facility. The new facility has a three year term with two options to extend for a further year, with a drawdown loan to value of up to 55% of the 
gross portfolio value and an interest rate of 1.85% over LIBOR. The new facility was drawn down on 22 June 2016 and the existing facility repaid.
18 FINANCIAL LIABILITY AT FAIR VALUE THROUGH PROFIT AND LOSS
31 March 
2016
£
Interest rate swap 94,855
The Group uses interest rate swaps to manage its exposure to interest rate movements on a proportion of its bank borrowings (see note 17). The 
contracts entered into with The Royal Bank of Scotland plc., have a notional value of £10,000,000, a fixed interest rate of 1.98% from 25 August 2015 
to 29 September 2016 and a cap strike rate of 3% from 15 October 2016 to maturity on 31 January 2019.
At 31 March 2016 the combined fair value of the interest rate swaps resulted in a liability of £94,855. The interest rate swaps are fair valued using 
recognised valuation techniques and the movement in fair value has been recorded in profit and loss.
19 TRADE AND OTHER PAYABLES
31 March 
2016
£
Trade payables 674,206
Deferred income 639,269
Final distribution due to CPML shareholders 396,670
Listing costs 338,888
Rental deposit accounts 137 ,705
Loan interest payable 62,756
SWAP interest payable 28,929
Valuation Fee 28,000
2,306,423
Deferred income relates to deferred rental income of £532,444 and deferred insurance recharges of £106,825.
20 STATED CAPITAL
Issued and fully paid share capital is as follows:
31 March 
2016
£
28,551,796 Ordinary Shares of no par value 42,542,179 
On admission to AIM, on 16 February 2016, the Company issued 89,744 Ordinary Shares at a price of £1.49 pursuant to the Placing Agreement.
The Company issued 704,697 Ordinary Shares at a price of £1.49 pursuant to the Subscription Agreement of which 436,241 were issued and allotted on 
the admission date and 268,456 were issued and allotted on 9 March 2016. 36
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Notes to the consolidated financial statements continued
For the period from 4 December 2015 to 31 March 2016
20 STATED CAPITAL CONTINUED
As disclosed in note 13 the Company issued 26,768,298 shares at a price of £1.49 in part consideration for the purchase of 100% of the Units of CPUT 
and 734,023 shares at a price of £1.49 in part consideration for the purchase of 100% of the share capital of CPML.
The Company has one class of Ordinary Share which carry no rights to fixed income. Holders of these shares are entitled to dividends as declared from 
time to time and are entitled to one vote per share at general meetings of the Company.
On admission to AIM, the Company issued 255,034 Ordinary Shares at a price of £1.49 each to be held in treasury subject to award under the LTIP 
described in note 22. Whilst held in treasury, these shares are not entitled to dividends and have no voting rights.
21 CAPITAL MANAGEMENT 
The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of 
the business. The objective is to ensure that it will continue as a going concern and to maximise return to its equity shareholders through appropriate 
levels of gearing. The Group is not subject to any externally imposed capital requirements.
The Group’s debt and capital structure comprises the following:
31 March 
2016
£
Total Liabilities 42,429,649 
Less: cash and cash equivalents (4,516,153)
Net debt 37 ,913,496 
Total equity 43,235,583 
Net debt to equity ratio 0.88 
22 SHARE BASED PAYMENTS
2016 LONG TERM INCENTIVE PLAN (“LTIP”)
By a resolution of the Board dated 29 January 2016, the Company adopted the LTIP for the purpose of properly motivating and rewarding key employees 
of the Group in a manner that aligns their interests with that of the Shareholders by measuring performance against shareholder returns over the three 
financial years ending 31 March 2019.
Awards will be granted annually over three year vesting period and take the form of a conditional right or (nil cost) option to acquire Ordinary Shares. For 
administrative simplicity, awards will be satisfied by the transfer to a participant of Ordinary Shares held in treasury.
A bespoke comparator group, selected by Peel Hunt has been adopted. On 11 February 2016 two Directors were granted options. John Arnold was 
granted an Option by Deed to acquire 134,229 Shares and Edward Olins was granted an Option to acquire 120,805 Shares both at nil cost subject to 
performance conditions. The Vesting Period for the Award shall be the third anniversary of the Deed exercisable to the extent set out under the 
mechanism below.
The mechanism for award is that every 31 March, commencing March 2017 , a combination of the growth in Total Shareholder Return (“share price growth 
plus dividends”) and Net Asset Value (“absolute growth in Net Asset Value plus dividends”) for each selected peer company will be calculated. If the 
Group reaches the median of its selected peer ranking it will attract an LTIP award of 50% of salary equivalent at the mid-market share price. If the 
performance is below the median then no LTIP award will be given. If above the median, then an award between 50% and 100% will be granted on a 
straight line basis.
The Board may make additional annual grants of LTIP to the Executive but such grants will not vest until their third anniversary.
On admission to AIM, the Company issued 255,034 Ordinary Shares at a price of £1.49 each to be held in treasury subject to award under the LTIP.
At the reporting date no Ordinary Shares had vested and the board have concluded that the fair value of the options at the grant date and the period 
end are not material to these financial statements.
23 FINANCIAL RISK MANAGEMENT
The strategy of the Group is to invest in United Kingdom commercial property with a view to holding it for capital appreciation whilst enhancing rental 
and capital growth opportunities. 
Consistent with that objective, the Group holds UK commercial property investments. In addition the Group’s financial instruments during the period 
comprised interest bearing receivable and payable loans, cash and cash equivalents and trade receivables and payables that arise directly from its 
operations. The Group does not have any exposure to any derivative instruments other than the interest rate swaps entered into to hedge the interest 
paid on the interest bearing bank loans.
The Group is exposed to various types of risks that are associated with financial instruments. The most important types are credit risk, liquidity risk, 
interest rate risk and market price risk. There is no foreign currency risk as all assets and liabilities of the Group are maintained in pounds sterling. FINANCIALS GOVERNANCE Strategic report 
37
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
23 FINANCIAL RISK MANAGEMENT CONTINUED
The Directors review and agree policies for managing its risk exposure. These policies are summarised on the following pages.
These disclosures include, where appropriate, consideration of the Group’s investment properties which, whilst not constituting financial instruments as 
defined by IFRS, are considered by the Board to be integral to the Group’s overall risk exposure.
CREDIT RISK
Credit risk is the risk that an issuer or counterparty to an asset will be unable or unwilling to meet a commitment that it has entered into with the Group.
In the event of default by an occupational tenant, the Group will suffer a rental shortfall and incur additional costs including: legal expenses; and in 
maintaining, insuring, and re-letting the property. The property manager produces regular reports on any tenant arrears which are monitored by the 
Directors in order to anticipate, and minimise the impact of, defaults by occupational tenants.
The carrying amount of financial assets, including cash balances, recorded in the financial statements represents the Group’s maximum exposure to 
credit risk. The carrying amount of these assets at 31 March 2016 was £6,501,377. There were no financial assets which were past due or considered 
impaired at 31 March 2016.
All of the Group’s cash is placed with financial institutions with a Moody’s long-term credit rating of A3. Bankruptcy or insolvency of such financial 
institutions may cause the Group’s ability to access cash placed on deposit to be delayed or limited. Should the credit quality or the financial position of 
the banks currently employed significantly deteriorate, cash holdings would be moved to another bank.
LIQUIDITY RISK
Liquidity risk is the risk that the Group will encounter in realising assets or otherwise raising funds to meet financial commitments. The Group’s 
investments comprise UK commercial property. Property and property-related assets in which the Group invests are not traded in an organised public 
market and may be illiquid. As a result, the Group may not be able to liquidate quickly its investments in these properties at an amount close to their fair 
value in order to meet its liquidity requirements.
The Group’s liquidity risk is managed on an ongoing basis by the Directors. In order to mitigate liquidity risk the Group aims to have sufficient cash 
balances (including the expected proceeds of any property sales) to ensure that the Group is able to meet its obligations for a period of at least twelve 
months.
At the reporting date, the maturity profile of the Group’s financial assets and financial liabilities were (on a contractual basis):
Contractual Value
Carrying Amount  
£
Within one year  
£
1-2 years  
£
2-5 years  
£
More than 5 years  
£
Total  
£
31 March 2016
Financial assets
Trade and other receivables 1,985,224 1,985,224 – – – 1,985,224 
Cash and cash equivalents 4,516,153 4,516,153 – – – 4,516,153 
6,501,377 6,501,377 – – – 6,501,377 
Financial liabilities
Trade and other payables 2,243,667 2,243,667 – – – 2,243,667 
Financial liabilities at fair value 94,855 – 98,053 (3,198) – 94,855 
Loan borrowings 40,091,127 1,441,378 1,378,622 40,121,911 - 42,941,911
42,429,649 3,685,045 1,476,675 40,118,713 – 45,280,433 
As described in note 17 a refinancing of the Group’s loan borrowings was agreed on 21 June 2016. The contractual amount outstanding at that date 
was repaid. 
INTEREST RATE RISK
Some of the Group’s financial instruments are interest bearing. They are a mix of both fixed and variable rate instruments with differing maturities. As a 
consequence, the Group is exposed to interest rate risk due to fluctuations in the prevailing market rate.
The Group’s exposure to interest rate risk relates primarily to the Group’s bank borrowings. As detailed in note 17 the Group uses interest rate swaps to 
manage exposure to some of the interest rate movements on its bank borrowings. The swap contracts have been entered into with The Royal Bank of 
Scotland plc for a notional amount of £10,000,000.
As a result the Group is exposed to changes in prevailing interest rates on the remaining balance of its borrowing detailed in note 17. Having assessed 
the level of risk the Directors have concluded that it is within acceptable limits.  38
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Notes to the consolidated financial statements continued
For the period from 4 December 2015 to 31 March 2016
23 FINANCIAL RISK MANAGEMENT CONTINUED
The interest profile of the Group’s financial assets and financial liabilities after the impact of the swaps held at the period end are as follows: 
  
Floating rate  
£
Fixed rate  
£
Interest free  
£
Total  
£
31 March 2016
Financial assets
Trade and other receivables – 1,526,167 459,057 1,985,224 
Cash and cash equivalents 4,516,153 – – 4,516,153
Financial liabilities
Trade and other payables – – 1,667,154 1,667,154 
Financial liabilities at fair value – 94,855 – 94,855
Loan borrowings 28,966,135 10,000,000 – 38,966,135
When the Group retains cash balances, they are ordinarily held on interest bearing deposit accounts. The benchmark which determines the interest 
income received on interest bearing cash balances is the bank base rate which was 0.5% as at 31 March 2016. The Group’s policy is to hold cash on 
variable rate bank accounts.
After the impact of the swaps, the Group has loans amounting to £28,966,135 which have interest rates linked to the 3 month LIBOR interest rates. A 
1% increase in the LIBOR rate will have the effect of increasing interest payable by £298,661.
MARKET PRICE RISK
The Group holds a portfolio of UK commercial properties. The Group invests in properties which the Directors believe will generate a combination of 
long-term growth in income and capital for shareholders. Investment decisions are based on analysis of, amongst other things, prospects for future 
income and capital growth, sector and geographic prospects, tenant covenant strength, lease length and initial and equivalent yields.
Investment risks are spread through letting properties to low risk tenants. The management of market price risk is part of the investment management 
process and is typical of commercial property investment. The portfolio is managed with an awareness of the effects of adverse valuation movements 
through detailed analysis, with an objective of maximising overall returns to shareholders. Investments in property and property-related assets are 
inherently difficult to value due to the individual nature of each property. As a result, valuations are subject to substantial uncertainty. There is no 
assurance that the estimates resulting from the valuation process will reflect the actual sales price even where such sales occur shortly after the 
valuation date. Such risk is managed through the appointment of independent external property valuer’s, Savills (UK) Limited.
Any changes in market conditions will directly affect the profit or loss reported through the Consolidated Statement of Comprehensive Income. Details 
of the Group’s investment portfolio held at the balance sheet date are disclosed in note 14. A 10% increase in the fair value of the properties at 31 March 
2016 would have increased net assets and profit for the period by £7 ,773,500. A decrease of 10% would have an equal but opposite effect.
The calculations are based on the investment property valuations at the balance sheet date.
FAIR VALUES
Accounting standards recognise a hierarchy of fair value measurements for financial instruments which gives the highest priority to unadjusted quoted 
prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The classification of fair value 
measurements depends on the lowest significant applicable input, as follows:
 – Level 1: Unadjusted, fully accessible and current quoted prices in active markets for identical assets or liabilities.
 – Level 2: Quoted prices for similar assets and or liabilities, or other directly or indirectly observable inputs which exist for the duration of the period 
of investment.
 – Level 3: External inputs are unobservable. Value is the Directors’ best estimate, based on advice from relevant knowledgeable experts, use of 
recognised valuation techniques and on assumptions as to what inputs other market participants would apply in pricing the same or similar 
instruments. All investments in property would be included in level 3.
All of the Group’s investment properties are classified as level 3. There have been no transfers of investment properties in or out of level 3 during the 
period. The Group determines transfers between levels at the end of each accounting period. A table reconciling opening and closing balances of level 3 
properties is included in note 14 of the financial statements.
The fair value of the Group’s financial instruments are not materially different from their carrying values. The classification of the fair value of the 
interest rate swaps outstanding at the period end, as detailed in note 18, are deemed level 2. FINANCIALS GOVERNANCE Strategic report 
39
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
24 INVESTMENT IN SUBSIDIARIES
Country of 
incorporation
Ownership  
interest
Circle Property Unit Trust Jersey 100%
Circle Property (Warrington) Limited Jersey 100%
Circle Property (Milton Keynes) Limited Jersey 100%
Circle Property Management Limited England 100%
25 COMMITMENTS UNDER CONSTRUCTION CONTRACTS
As at 31 March 2016, the Group had contracted capital expenditure on existing properties of £533,318. They were committed but not yet provided for 
in the financial statements.
26 OPERATING LEASES
The Group leases out its investment properties under operating leases.
As at the reporting date, the future minimum lease payments under non-cancellable leases are receivable as follows (based on annual rentals):
31 March 
2016
£
Less than one year 4,279,104 
Between two and five years 13,700,180 
Over five years 11,053,958 
Total 29,033,242 
Operating lease payments in respect of rents payable on leasehold properties were payable as follows:
31 March 
2016
£
Less than one year 16,829 
27 ULTIMATE CONTROLLING PARTY
In the opinion of the Directors there is no ultimate controlling party as no one individual is deemed to satisfy this definition.
28 RELATED PARTY DISCLOSURES
Consortia Partnership Limited (“CPL”) and Consortia Trustees Limited (“CTL”) are joint Trustees of CPUT and provide administration and accounting 
services to the Group. Michael Farrow and Richard Hebert are Directors of CPL and CTL. During the period CPL and CTL charged and received a total of 
£30,797 for administration and accountancy services and £168,115 for administration services in relation to the admission to AIM.
As disclosed in note 15, on 20 January 2016 the Group entered into a loan facility agreement with Circle Property Trading (Maidstone) Limited (“CPTML”). 
John Arnold, Edward Olins, The Duke of Roxburghe and James Hambro are all Directors and Shareholders of CPTML. At the period end date the balance of 
the loan was £1,526,167 , excluding accrued loan interest of £22,002.
Directors’ interests in the shares of the Company, including family interests:
Ordinary shares
John Arnold 977 ,971
Edward Olins 128,089
The Duke of Roxburghe 2,483,069
James Hambro 3,267,656
There have been no changes in the Directors’ shareholdings since the period end.
The remuneration of the Directors who are key management personnel of the group, is set out below in aggregate. Further information about the remuneration 
of individual Directors is provided in the Remuneration report on pages 18 and 19. Key personnel of the Group are those persons who have responsibility 
for planning, directing and controlling the activities of the Group either directly or indirectly, including any Director, whether executive or otherwise.
4 December 
 2015  
to 31 March 
2016
£
Short-term employee benefits 66,020  40
Circle Property Plc 
Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016
Notes to the consolidated financial statements continued
For the period from 4 December 2015 to 31 March 2016
28 RELATED PARTY DISCLOSURES CONTINUED
A bonus may be awarded to the Executive Directors of the Company. Any annual bonus is restricted to 100% of salary for the year under consideration. 
The Key Performance Indicators comprise the net asset value, EBITDA and maintenance of dividend policy and having regard always to the individual 
performance of the Executive and of the business as a whole but such bonus awards remain at the absolute discretion of the board. No bonus was due 
or paid at the reporting date.
On 11 February 2016 two Directors were granted options under the Company Long Term Incentive Plan (“LTIP”) as described in note 22. John Arnold was 
granted an Option by Deed to acquire 134,229 Shares and Edward Olins was granted an Option to acquire 120,805 Shares both at nil cost subject to 
performance conditions. 
29 SUBSEQUENT EVENTS
On 11 May 2016 the Directors declared a final dividend of 2.4p per share for the period ended 31 March 2016. The final dividend was paid on 26 May 
2016 with an ex-dividend date of 19 May 2016.
On 21 June 2016 the Directors agreed a new £50m revolving facility with National Westminster Bank plc for the purpose of refinancing of CPUT’s 
existing facility. The new facility has a three year term with two options to extend for a further year, with a drawdown loan to value of up to 55% of the 
gross portfolio value and an interest rate of 1.85% over LIBOR. The new facility was drawn down on 22 June 2016 and the existing facility repaid.
On 23 June 2016 a referendum held in the UK resulted in a vote to leave the European Union (“Brexit”). The Directors have considered the situation and 
continue to monitor developments. Further reference to Brexit is detailed in the CEO review on page 4. Officers and professional advisers
DIRECTORS  APPOINTED RESIGNED
CPL Services Limited Director 4 December 2015 10 December 2015
Consortia Directors Limited Director 5 December 2015 10 February 2016
Ian Henderson Non-Executive Chairman 29 January 2016
John Arnold Chief Executive 10 December 2015
Edward Olins Chief Operating Officer 10 December 2015
The Duke of Roxburghe Non-Executive Director 29 January 2016
James Hambro Non-Executive Director 29 January 2016
Michael Farrow Non-Executive Director 10 December 2015
Richard Hebert Non-Executive Director 10 December 2015
COMPANY SECRETARY
Consortia Secretaries Limited  7 December 2015
REGISTERED OFFICE
3rd Floor
Standard Bank House
47-49 La Motte Street
St Helier
Jersey
JE2 4SZ
INDEPENDENT AUDITOR
KPMG Channel Islands Limited
37 Esplanade
St Helier
Jersey
JE4 8WQ
NOMINATED ADVISER AND BROKER
Peel Hunt LLP
Moor House
120 London Wall
London
W1G 0JD
INDEPENDENT PROPERTY VALUER
Savills
33 Margaret Street
London
W1G 0JD
INDEPENDENT TAX ADVISERS
Lubbock Fine
Paternoster House
65 St Paul’s Churchyard
London
EC4M 8AB
ADMINISTRATOR
Consortia Partnership Limited
3rd Floor
Standard Bank House
47-49 La Motte Street
St Helier
Jersey
JE2 4SZ
UK LEGAL ADVISERS
Charles Russell Speechlys LLP
5 Fleet Place
London
EC4M 7RD
JERSEY LEGAL ADVISERS
Pinel Advocates
32 Commercial Street
Jersey
JE2 3RU
REGISTRARS
Computershare Investor Services (Jersey) Limited
Queensway House
Hillgrove Street
St Helier
Jersey
JE1 1ES REGISTERED OFFICE
Circle Property Plc
c/o Consortia Partnership Limited
3rd floor
Standard Bank House
47-49 La Motte Street
St Helier
Jersey, JE2 4SZ
Tel: 01534 834 600
REPRESENTATIVE OFFICE
Circle Property Plc
15 Duke Street
St James’s
London SW1Y 6DB
Tel: 0207 930 8503
www.circleproperty.co.uk
Circle Property Plc Report and Consolidated Financial Statements for the period 4 December 2015 to 31 March 2016