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Urban&Civic plc (LSE: UANC) announces its results for the half year 31 March 2020
|6 months to
31 March 2020
30 Septmeber 2019
|EPRA NAV (£m)||487.8||527.5|
|EPRA NAV per share (p)||335.1||360.3|
|EPRA NNNAV per share (p)||318.3||339.5|
|Profit before tax (£m)||0.2||16.3|
|Total shareholder return (%)||(35.0)||7.8|
|Dividend per share (p)||-||3.9|
In reaction to market conditions arising from the pandemic
- Opportunistic acquisitions and maintained infrastructure investment prioritised; discretionary spend curtailed; dividend decision postponed.
- EPRA net assets per share + large site discount (335.1p + 145p) = 480.1p at 31 March 2020: 3.1 per cent down on September 2019 year end but marginally up over 12 months.
- Group share of current contracted forward revenues increased to £107.7 million (30 September 2019: £101.7 million).
- Headline EPRA net asset value per share down 1.6 per cent over the year at 335.1p (31 March 2019: 340.6p; 30 September 2019: 360.3p), reflecting valuation uncertainties in light of Covid-19 crisis.
- EPRA triple net asset value per share 318.3p down 1.3 per cent from 31 March 2019 (30 September 2019: 339.5p).
- Large site discount highest ever at £212 million (43 per cent of EPRA NAV); or 145p per share.
- Profit before tax for the six months to 31 March 2020 £0.2 million (six months to 31 March 2019: £5.1 million); fall predominantly due to property revaluations.
- Decision to pay an interim dividend postponed, having regard to the deferral of cash receipts associated with residential sales.
- Platform advantage as preeminent Master Developer providing unusually attractive project opportunities consequent upon Covid-19 disruptions in the land market.
- 2 new strategic sites, prospectively adding a minimum of 10,000 new homes to pipeline.
- Terms settled on 6 new land promotions by Catesby for a further prospective 1,000 units.
- 3 new licences + a land sale totalling 594 plots signed since March; 3 medium/ large private housebuilders and 1 public; 1 existing and 3 new customers.
- Delivery spend supported by £96 million of new Government and Homes England facilities.
- Continued to work through lockdown.
- £18.6 million post balance sheet sale of accommodation at Waterbeach converted to housing for medical staff from Papworth Hospital Trust exceeded valuation. £18.2 million of proceeds received by Urban&Civic to clear all amounts previously advanced at Waterbeach.
Commenting on the results, Nigel Hugill, Chief Executive, said:
“Actions speak louder than words. This is the first time that the Urban&Civic Master Developer Model has been tested under stress. Prevailing uncertainties are providing exceptional opportunities to enlarge our strategic portfolio, with minimal acquisition risk. We have secured land holdings for two potential new settlements in the last fortnight. Government backing on projects in delivery has been terrific in enabling us prudently to maintain and accelerate spend. As the housebuilders rebuild output, the reasonable presumption is that capital lite, serviced plots will be at the top of their want list. Whatever the behavioural changes from this awful pandemic, it is hard to see well-planned housing with gardens, good connections, great schools, decent broadband and guaranteed access to green spaces being disadvantaged. Witness four new licences and land sales signed since March.”
For further information, please contact:
Nigel Hugill/David Wood
+44 (0)20 7509 5555
Giles Barrie/Dido Laurimore/Ellie Sweeney
+44 (0)20 3727 1000
A presentation for analysts and investors will be held at 09.30 am today at FTI Consulting, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD.
If you would like to attend please contact Ellie Sweeney at FTI on +44 (0)20 3727 1000 or email@example.com. A live webcast of the presentation will be available via the following link https://webcasting.brrmedia.co.uk/broadcast/5ed7692de9f4830247c9a151 and presentation slides will also be available to download.
Alternatively, details for the live dial-in facility are as follows:
Participants: Tel: +44 (0)330 336 9125