At first glance, half-year numbers from Wales-focused property group Conygar (CIC) don't look that encouraging, but the underlying picture was brightened up by continuing progress in the development programme and a strong balance sheet.
Headline losses reflected a devaluation in the property portfolio as a result of assets held in Aberdeen, where business in general has been hit badly by the slump in oil prices. However, this could have been a lot worse had the group not elected to reduce its exposure significantly, selling two buildings in 2014 for a surplus over book value. In the six months to March this year, there were three disposals at Hinckley, Horsham and Runcorn, raising £5.4m, which is just a shade under the September 2015 book value. Consequently, rental income fell by nearly a quarter to £4.56m.
On the development side, infrastructure work to service the 729 residential units and 9.6-acre retail site at Haverfordwest was completed ahead of schedule, and marketing of the housing land has started. At Llandudno Junction, consent has been granted for a 90,000 square foot retail site, while its 205-acre site at Rhosgoch has been identified by Horizon Nuclear as a potential location to house around 4,000 workers to build a nuclear power station at Wylfa.
Analysts at Stifel are forecasting adjusted net asset value (NAV) of 211p at the September 2016 year-end (from 203p in 2015).
| CONYGAR (CIC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 155.5p | MARKET VALUE: | £120m | |
| TOUCH: | 155-156p | 12-MONTH HIGH: | 186p | LOW: 156p |
| DIVIDEND YIELD: | 1.1% | DEVELOPMENT PROP: | £9m | |
| DISCOUNT TO NAV: | 23% | |||
| INVESTMENT PROP: | £133m* | NET DEBT: | 17% | |
| Half-year to 31 Mar | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 199 | 4.1 | 3.7 | nil |
| 2016 | 201 | -2.1 | -2.8 | nil |
| % change | +1 | - | - | - |
Ex-div:- Payment:- *Includes joint ventures | ||||
