U&I (UAI) has warned that it will not achieve the trading gains of at least £35m that it had expected this year from developments due to a slowdown in real estate transactions and further delays in local government decision-making, amid the COVID-19 outbreak.
The regeneration and development specialist said that the outbreak of the virus had exacerbated delays it had already experienced securing planning consents due to last year’s political uncertainty. The group generated just £3.6m in trading and development gains during its first-half.
Management said it was “proactively reducing its operating expenses and all non-essential capital expenditure” and that it had the ability to access credit facilities to manage liquidity needs, which could include utilising its currently uncharged assets as security.
However, it said it remained in advanced legal negotiations on several projects that if successfully concluded, will have a material impact on its trading gains this year, although the level would still be behind target.