Conygar (CIC) has been through a period of transformation in the year to September 2017, selling its investment property portfolio and using the funds to concentrate on maximising the value of its development pipeline.
Disposals generated £130m, which crystallised gains of £48.2m, and in the reported period the property landlord spent £13.5m acquiring a 37-acre development site in Nottingham. This still leaves the balance sheet debt-free and with £37m of cash.
Net asset value per share rose by 3.1 per cent to 203p, reflecting profits on disposal of the investment property portfolio of £1.5m, net rental and dividend income – from its investment in Regional REIT to which it sold its investment portfolio – of £4.3m, and the effect of the share buyback programme.
A planning application will be submitted early in 2018 for the Nottingham site for a mixed-use scheme covering 2m sq ft for apartments, student housing, offices and leisure facilities, while construction was completed on the initial phase of the Cross Hands retail site in south-west Wales.
The latest agreement came in July, when it secured a lease agreement with Premier Inn to build an 80-bed hotel on the outskirts of Holyhead. Analysts at Liberum are forecasting net asset value (NAV) of 213p a share at end-September 2018.
| CONYGAR (CIC) | ||||
| ORD PRICE: | 159p | MARKET VALUE: | £105m | |
| TOUCH: | 158-160p | 12M HIGH | 180p | LOW: 150p |
| DIVIDEND YIELD: | NIL | DEVELOPMENT STOCK: | £34.3m | |
| DISCOUNT TO NAV: | 22% | |||
| INVEST PROPERTIES: | £7.3m* | NET CASH: | £37m | |
| Year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 175 | 7.7 | 6.9 | 1.5 |
| 2014 | 198 | 20.5 | 23.5 | 1.75 |
| 2015 | 203 | 7.8 | 7.7 | 1.75 |
| 2016 | 197 | -4.7 | -6.9 | nil |
| 2017 | 203 | 1.2 | 1.2 | nil |
| % change | +3 | - | - | - |
| Ex-div | - | |||
| Payment: | - | |||
| *Investments in joint ventures | ||||
