Urban&Civic (UANC) provides brownfield sites for development by housebuilders, and that includes early delivery of all the key infrastructure. And while there were just 52 plot completions in the year to September 2017, this is already contracted to jump to 315 in the current year and to 720 the year after.
The business model is attractive to housebuilders because Urban&Civic’s third share of the end value of any development is not paid until completion, subject to an annual minimum drawdown. Headline profits were lower partly because of a smaller upward revaluation, whereas adjusted net asset value rose 7 per cent to 304.4p a share.
Events after the year-end include sales of commercial assets at Stansted and Feethams, generating £38m in cash proceeds after repaying project borrowings. And together with £45m from the Home & Communities Agency, a further £15m has been invested in buying a 5,000-unit project at Priors Hall in Northamptonshire. This comprises 965 acres of partly-built land where the company can use its expertise to implement better project organisation and improved planning.
Analysts at JPMorgan Cazenove are forecasting adjust net asset value (NAV) of 333p a share at the September 2018 year-end.
| URBAN&CIVIC (UANC) | ||||
| ORD PRICE: | 273p | MARKET VALUE: | £396m | |
| TOUCH: | 271.25-274.5p | 12-MONTH HIGH: | 280p | LOW: 190p |
| DIVIDEND YIELD: | 1.2% | TRADING PROPERTIES: | £290m | |
| PREMIUM TO NAV: | 6% | NET DEBT: | 22% | |
| INVESTMENT PROPERTIES: | £156m# | |||
| Year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013* | 228 | 28.7 | 31.5 | nil |
| 2014** | 239 | 19.2 | 20.8 | 1.5 |
| 2015 | 241 | 7.0 | 5.0 | 2.65 |
| 2016 | 254 | 25.9 | 14.6 | 2.9 |
| 2017 | 258 | 7.92 | 4.80 | 3.2 |
| % change | +1 | -69 | -67 | +10 |
| Ex-div: | 11 Jan | |||
| Payment: | 23 Feb | |||
| *12-month figures for Urban&Civic (excluding Terrace Hill) **Nine-month figures to 30 Sep #Includes joint ventures | ||||
