14th May 2019 12:17
LONDON (Alliance News) - Conygar Investment Co PLC said Tuesday its net assets decreased in the first half, on setbacks at several developments, but is confident in the future following its Nottingham development site receiving outline planning permission.
At March 31, the property investment and development company's NAV per share stood at 178.6 pence compared to 201.3p at September 30, an 11% decrease.
Conygar's net assets decreased 16% in the period to GBP101.0 million from GBP120.3 million at the end of September. The company bought back 3.2 million shares in the period.
The company's rental income in the period was up 66% year-on-year to GBP889,000 from GBP536,000.
The company attributed the poor interim results on setbacks at its Haverfordwest and Rhosgoch sites.
At Haverfordwest , Conygar said the demand from major housebuilders and potential home owners has been "much weaker than expected". As a result, the company re-evaluated its investment resulting in a GBP18.5 million write-down. The company's total development & trading properties were valued at GBP39.6 million at year-end.
Rhosgoch is a 203 acre site situated on the site of a potential new nuclear power station in Anglesey, Wales. But Japanese conglomerate Hitachi Ltd was unable to come to terms with the UK government over funding, resulting in the plans being scrapped. Hitachi's option agreement on the Rhosgoch site was cancelled.
Conygar said its interim results reflect "some negatives" but the company seen "significant" operational progress post-period end.
"The granting of the outline planning permission at Nottingham is a very significant step forward, which we believe will be transformational for the group. With our cash balances of GBP46 million and no debt, we are positioned to deliver our projects and to take advantage of increasing market volatility," said Chief Executive Robert Ware.
The company is hoping to develop a mixed-use scheme in Nottingham city centre - the 37 acre site will consist of offices, student housing, private residential and build to rent flats, a hotel and potentially, a new university faculty.
Shares in Conygar were down 7.7% Tuesday at 141.30 pence each.
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