Shares in LXB Retail (LXB) may look as though they have collapsed from our buy tip, but that is before taking into account a 45p per share special dividend paid in June on the sale of its Biggleswade investment. In fact, after taking into account the £82.6m cash return, net asset value actually rose by 10.4 per cent in the year to September.
However, following a successful continuation vote at the annual general meeting in May, the directors have concluded that a new winding-up proposal will meet with overwhelming shareholder support, and it is therefore the board's intention to forward a resolution at the next AGM to realise the group's investments in an orderly fashion. The plan is to return most if not all the capital to shareholders by March 2017.
To this end, LXB has been working towards completing its development arm. At Rushden Lakes, a deal with the Crown Esate is expected to complete early in 2016, with contracts exchanged on 59 per cent of the first development phase to retailers including Marks & Spencer (MKS), House of Fraser and Primark. All developments are expected to complete by next winter.
| LXB RETAIL (LXB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 95.5p | MARKET VALUE: | £175m | |
| TOUCH: | 95.25-95.5p | 12-MONTH HIGH: | 99p | LOW: 77p |
| DIVIDEND YIELD: | nil | TRADING PROPERTIES: | nil | |
| DISCOUNT TO NAV: | 7% | |||
| INVESTMENT PROP: | £208m | NET DEBT: | 25% | |
| Year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 108 | 19.2 | 10.3 | nil |
| 2012 | 111 | 9.7 | 3.7 | nil |
| 2013 | 116 | 11.3 | 4.6 | nil |
| 2014 | 134 | 36.2 | 18.9 | nil* |
| 2015 | 103 | 25.9 | 14.1 | nil |
| % change | -23 | -28 | -26 | - |
Ex-div:- Payment:- *Excluding 45p a share special dividend | ||||
