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Conygar makes further progress with its development pipeline

But the Pembroke Dock development has been abandoned
December 19, 2016

Conygar (CIC) spent the year to September 2016 making further progress with the development pipeline, but headline numbers were affected by the decision to write off its £4.8m total investment in the Pembroke Dock project after a feasibility study revealed that the true cost of development would rise from £8m to more than £17m. Net asset value was also dented by a £3m fall in the value of its one remaining building in Aberdeen, where values have been hit by weakness in the oil industry.

IC TIP: Buy at 159.5p

However, other projects are making progress. Infrastructure work at Haverfordwest has been completed for 729 residential units, while a 9.96-acre site acquired from J Sainsbury (SBRY) just outside Swansea gained planning consent, and work has started there on a 106,000 sq ft retail development. While an option agreement has been secured with Horizon Nuclear Power over a 203-acre brownfield site on Anglesey that Conygar bought for £3m, with a view to housing workers employed to build a new power station.

The contracted rent roll was barely changed at £9.7m, and new leases helped to extend the average unexpired lease length from 4.8 years to 5.8 years. Group finances have also been revised, with new loans taking the average cost of debt down to 2.26 per cent.

CONYGAR (CIC)
ORD PRICE:159.5pMARKET VALUE:£115m
TOUCH:158-16112-MONTH HIGH:176pLOW: 127p
DIVIDEND YIELD:NILDEVELOPMENT PROPERTIES:£30.7m
DISCOUNT TO NAV:19% 
INVESTMENT PROP:£150m*NET DEBT:18%

Year to 30 SepNet asset value (p)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
20121667.55.61.25
20131757.76.91.5
201419820.523.51.75
20152037.87.71.75
2016197-4.7-6.9nil
% change-3---

Ex-div: -

Payment: -

*Including joint ventures