Join our community of smart investors

Conygar's hidden potential

Conygar expects a much busier second half as development projects gain traction.
May 21, 2015

Wales-focused property group Conygar (CIC) saw a £1.2m uplift in the value of its portfolio over the six months to March. That and three disposals at a £0.2m premium to book value lifted the company's adjusted book value by 1.5 per cent to 199p.

IC TIP: Buy at 181p

That was a fairly underwhelming result. However, with a general hiatus in activity ahead of the election now over, founder and chief executive Robert Ware is upbeat about the second half. He expects more asset sales, further letting of empty space and the completion of more developments.

Development is where Conygar's potential lies. Milestones achieved in the first half include the opening of a 9-acre truck stop facility on Anglesey, and planning consent for a 6-acre 24-hour lorry stop at Fishguard. Infrastructure work will also soon begin on the development of the Holyhead waterfront, while plans have been submitted to develop up to 90,000 sq ft for retail use at Llandudno Junction, just outside Conwy.

Following Sainsbury's decision not to proceed with a food store at Haverfordwest on land purchased from Conygar, the property group has bought back the site, and plans to redevelop it for retail and commercial use.

Analysts at Stifel are forecasting adjusted net asset value of 223p for the September 2015 year-end.

CONYGAR INVESTMENT COMPANY (CIC)
ORD PRICE:181pMARKET VALUE:£157m
TOUCH:180-182p12-MONTH HIGH:195pLOW: 160p
DIVIDEND YIELD:1.0%DEVELOPMENT PROPERTIES:£33m
DISCOUNT TO NAV:9%
INVESTMENT PROPERTIES:£161m*NET DEBT:20%

Half-year to 31 MarNet asset value (p)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
20141817.57.8nil
20151994.13.7nil
% change+10-45-52-

Ex-div:-

Payment:-

*Including £6.1m in joint ventures