The credit crunch has had a devastating impact on the property sector and Quintain is no different. Indeed, the group - which is known for its regeneration schemes in Wembley and Greenwich - has seen its shares plummet in the last year.
That grim property backdrop has certainly damaged the group's performance. Quintain's book was hit by a further £63m write-off - that included writing-down 22 per cent of the value of its Wembley project and 9 per cent of the Greenwich project. So, inevitably, losses have soared and the dividend has been axed. Quintain, though, has renegotiated its borrowings and boasts £90m headway on its bank debt. However, management warns that, should property prices fall a further 12 per cent from here, the company is in danger of breaching its banking covenants. The plan now is to raise cash by further land sales and by bringing heavyweight investors on board. The trading performance is encouraging, though - in particular, there was a strong showing from the fund management side where there was only a marginal fall in funds managed to £980m. And Quintain has won further planning consents for flagship projects in Greenwich, Wembley and Birmingham. Cazenove expects NAV of 273p for 2010.
| ORD PRICE: | 57p | MARKET VALUE: | £74.1m | |
| TOUCH: | 56-58p | 12-MONTH HIGH: | 371p | LOW: 8p |
| DIVIDEND YIELD: | nil | TRADING STOCK: | £26.6m | |
| DISCOUNT TO NAV: | 84% | |||
| INVEST PROPERTIES: | £143m | NET DEBT: | 120% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 443 | 34.9 | 31.0 | 9.50 |
| 2006 | 526 | 65.0 | 43.9 | 10.5 |
| 2007 | 660 | 48.6 | 33.3 | 11.8 |
| 2008 | 584 | -54.7 | -31.3 | 12.3 |
| 2009 | 348 | -129 | -83.0 | nil |
| % change | -40 | - | - | - |
Ex-div:- Payment:- | ||||
