24th May 2016 10:16
LONDON (Alliance News) - Conygar Investment Co PLC on Tuesday said it expects to see volatility in the summer months, amid the UK's June 23 referendum on whether to remain a member of the EU or leave, and perhaps beyond due to economic uncertainty in the Eurozone and the US presidential election in November.
The company reported a net asset value per share of 201.0 pence as of March 31, down from 203.3p six months earlier, and said its development pipeline is advancing.
Total cash available for acquisitions and development funding amounted to GBP60 million after its refinancing in April 2016, Conygar said.
Its net debt of GBP26.1 million as of March represented gearing - a term for borrowing - of 16.8% against net asset value and 20.6% on a loan-to-value basis.
Following April's refinancing, net debt of GBP27.2 million represented gearing of 17.5% against net asset value and 21.4% on a loan-to-value basis.
Conygar said its investment property portfolio was valued at GBP126.7 million as of March 31. "Due to a fall in the value of our asset in Aberdeen, there is a reduction of £2.4 million on a like for like basis," the company said.
"We envisage that the markets we trade in will be volatile over the summer months, and potentially the rest of this year, due to the EU referendum, continuing economic problems in the Eurozone and the US presidential election and we are cautious about the growth prospects of the UK economy over the medium term," Chief Executive Robert Ware said in a statement.
"Historically, we have performed strongly in difficult markets and following the recent refinancing of a large portion of the investment property portfolio, we hold cash of more than GBP60 million and are therefore well positioned to take advantage of opportunities, should they arise," Ware said.
Shares in Conygar were down 1.6% at 156.49 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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