Quintain Estates is perhaps best known for its regeneration projects in Wembley and Greenwich, and like other property developers, the challenge has been to balance the increasing number of redevelopment schemes emerging with a scarcity of available finance. The credit crunch and falling property values have in effect scuppered the old business model of drawing down debt against rising valuations and the company had to tap shareholders last autumn by raising £183m in a rights issue.
The trading climate is improving though and the previous year's £63m writedown on property values has given way to a modest but significant £7.5m valuation uplift. The group has also been generating an alternative revenue stream through its fund management operations, where funds under management edged up to £1bn, and the target is to grow this to £2bn within three years. Around 28 per cent of group assets are now administered through four funds and fund management operating profits before asset sales and revaluations came to £16.4m.
KBC Peel Hunt is forecasting a pre-tax loss of £5m for the 12 months to March 2011 and a year-end net asset value of 138p (2010: 133p).
| QUINTAIN ESTATES AND DEVELOPMENT (QED) | ||||
|---|---|---|---|---|
| ORD PRICE: | 48.5p | MARKET VALUE: | £ 255m | |
| TOUCH: | 48-49p | 12M HIGH | 118p | LOW: 22p |
| DIVIDEND YIELD: | NIL | TRADING STOCK: | £28.1m | |
| DISCOUNT TO NAV: | 59% | |||
| INVEST PROPERTIES | £813m | NET DEBT: | 57% | |
| Year to 31 Mar | Net asset value (p*) | Pre-tax profit (£m) | Earnings per share (p*) | Dividend per share (p*) |
|---|---|---|---|---|
| 2006 | 248 | 65.0 | 20.7 | 4.95 |
| 2007 | 311 | 48.6 | 15.7 | 5.56 |
| 2008 | 275 | -54.7 | -14.8 | 5.80 |
| 2009 | 121 | -129.1 | -39.1 | nil |
| 2010 | 120 | -10.1 | -3.3 | nil |
| % change | -1 | - | - | - |
*Adjusted for 3-for-1 rights issue in November 2009. Adjustment factor of 0.471 | ||||
