"Things are undoubtedly improving - though I think the market is slower than people think," says Robert Ware, the ever-downbeat chief executive of regional property developer, Conygar (CIC). Whatever the pace of the UK recovery, Conygar is in pole position to benefit. Having been written down 2 per cent in the first half, its portfolio of provincial offices and industrial estates was marked back up in the six months to end-September, even though a couple of big tenants moved out.
With the investment portfolio flat for the year as a whole, the 5 per cent increase in Conygar's book value per share over the year reflects a combination of rental income and share buy-backs. Meanwhile, the company continues to work at its various developments on the Welsh coast - all of which are accounted for at cost.
In September, Congyar obtained planning permission for 835 harbour-side flats and a football pitch-sized Sainsbury's at Haverfordwest in Pembrokeshire - a major milestone. Mr Ware hopes to start work on the community infrastructure in April, using the money received from Sainsbury's for the supermarket site, before selling plots to housebuilders. The first development profits should start flowing in the current financial year.
Broker Oriel Securities expects adjusted book value per share of 179p for 2014 (up from 175p).
THE CONYGAR INVESTMENT COMPANY (CIC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 142p | MARKET VALUE: | £127m | |
| TOUCH: | 141-143p | 12-MONTHHIGH: | 151p | LOW: 86p |
| DIVIDEND YIELD: | 1.1% | TRADING PROP: | £23.1m | |
| DISCOUNT TO NAV: | 19% | |||
| INVESTMENT PROP: | £171m | NET DEBT: | 25% | |
| Year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 140 | 13.7 | 32.3 | nil |
| 2010 | 151 | 14.9 | 12.1 | 1.00 |
| 2011 | 155 | 1.76 | 0.98 | 1.10 |
| 2012 | 166 | 7.46 | 5.60 | 1.25 |
| 2013 | 175 | 7.74 | 6.88 | 1.50 |
| % change | +5 | +4 | +23 | +20 |
Ex-div: 8 Jan Payment: 13 Feb | ||||
