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Solid progress at Conygar

RESULTS: The property market might be in the doldrums, but Conygar has a decent pipeline of new development and is growing rental income solidly
November 29, 2012

A 31 per cent rise in rental income to £15.8m at the full-year stage helped property group Conygar (CIC) to nearly double operating profits to £10.6m. Progress was also made with the existing portfolio, and planning consent was gained for two waterfront developments in Wales where some development work is expected to start next year. Although, chief executive Robert Ware stressed that property conditions outside London remained depressed.

IC TIP: Buy at 89p

The value of the group’s investment property portfolio rose 26 per cent in the period, helped by this year's Edinmore acquisition. Edinmore's book rose 6 per cent in value, although the value of the group's existing properties fell 1.6 per cent on a like-for-like basis. The reported rise in the net asset value was only really down to a share buy-back programme. Still, the overall vacancy rates fell from 11.2 per cent to 10.4 per cent and, while existing tenants and their businesses remained under pressure, arrears were less than 1 per cent of the rent roll. The group also disposed of four properties, which generated net proceeds of £4.05m.

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