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Urban&Civic plc announces results for the year to 30 September 2017

— 28.11.17

Urban&Civic plc (LSE: UANC) announces its results for the 12 months to 30 September 2017.

  30 September 2017 30 September 2016
EPRA NAV (£m) 439.3  409.8
EPRA NAV per share (p) 304.4  284.2
Profit before tax (£m) 7.9  25.9
Dividend per share (p) 3.2  2.9
Contracted plots 1,346 1,109
Plots completions 52 1

 

Financial highlights

  • EPRA net assets £439.3 million at September 2017, up from £409.8 million at September 2016
  • EPRA net assets per share 7.1 per cent higher at 304.4p (284.2p at September 2016)
  • Profit before tax down for 12 months to September 2017 at £7.9 million (September 2016: £25.9 million), due to lower property revaluations and commercial asset sales. Trading profits on significant commercial disposals completed post year-end to be reflected in 2018 interims
  • 80 per cent of Group property assets in strategic projects (September 2016: 70 per cent)
  • Current net gearing 14.4 per cent (September 2017: 22.0 per cent; September 2016: 9.4 per cent)
  • Final dividend for the year of 2.0p per share, providing a full year dividend of 3.2p. 10.3 per cent increase recognises continuing progress

Project highlights and post year-end events

  • Subsequent sales of commercial assets at Stansted and Feethams for an aggregate £70 million, generated £38 million cash proceeds after repaying project borrowings
  • £15 million of cash reinvested in £40 million purchase of 5,000+ unit project at Priors Hall, Northamptonshire, supported by £45 million of additional facilities from Homes and Communities Agency
  • Group portfolio now approaching 40,000 residential plots, either consented or being progressed
  • Externally appraised value of consented plots all up at September 2017 (Alconbury: £26,600; Rugby £18,100: Newark; £6,500). Priors Hall acquisition equivalent estimated at £7,700 per uncontracted plot and Wintringham (currently unconsented) £14,000
  • Net cash participations to Urban&Civic on completed housing sales continue to exceed 2x September 2017 book value
  • September 2017 EPRA Net Assets after large site discount – appraised at £99 million against 150 unit parcels. Discount now starting to reverse as forecast (September 2017 equivalent to 69p per share; March 2017: 71p per share)
  • Waterbeach and Wintringham applications (together 9,300 new homes in Cambridgeshire) programmed for determination in Q1/Q2 2018
  • Good Catesby start to 2017/18 with Abingdon (200 units) now consented
  • Progression speaks for itself: Best current estimate is for 315 completions on Urban&Civic strategic sites in current year to September 2018 (including Priors Hall) and for 720 in the next. This compares with 52 in the year to September 2017 and 1 completion to September 2016

 Commenting on these results, Nigel Hugill, the Chief Executive of Urban&Civic, said:

"Good results, followed by what is starting to feel like a decisive past two months. The recommendations of the National Infrastructure Commission Cambridge to Oxford brain belt study and the Budget housing priorities rest squarely upon delivery at a scale that can make a difference. Our Master Developer model is cutting the old assumptions for time between outline planning submission and first housing delivery in half. We are also on track to double historic rates of subsequent delivery.  That combination is transformational for the politics just as much as the economics of large projects and gives local authorities the confidence to commit. The progression can be charted on Urban&Civic strategic sites; from the very first house sale in September 2016, to 52 housing completions  last year and our best estimate of 315 in the current year and 720 in the next. Shareholders can anticipate additional strategic site investment in identified high growth areas

A presentation for analysts and investors will be held at 08.45am today at FTI Consulting, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD.

 If you would like to attend please contact Jenni Nkomo at FTI on +44 (0)20 3727 1000 or urbanandcivic@fticonsulting.com.

Alternatively, details for the live dial-in facility are as follows:

Participants:        Tel: +44 (0)330 336 9105
Passcode:            3801596

To read the results in full please see this RNS announcement.

For further information, please contact us.