27th Nov 2018 13:11
LONDON (Alliance News) - Conygar Investment Co PLC on Tuesday reported a slight decrease in its year-end net asset value per share, despite a larger fall in net assets, as the company agreed a profit sharing plan with its directors and employees.
At September 30, the AIM-listed property investor's NAV per share was 201.3 pence, down 0.8% from 203.0p a year before.
Conygar's net assets decreased 11% to GBP120.3 million from GBP135.8 million. The discrepancy can be attributed to the company buying back 7.1 million shares in the period at an average price of 165.9p per share.
The buyback represented about 11% of the company's share capital. The buybacks added 4.4p to the NAV per share.
"Significant progress and change has occurred over the year. With the sale of our holding in Regional REIT [PLC] and the sale or forward sale of certain assets, our balance sheet is now stronger than a year ago, consisting only of our properties and cash reserves, with no debt," said Chief Executive Robert Ware.
The decrease in net assets were attributed to GBP3.2 million of development costs written off, GBP3.1 million of administrative costs, and GBP11.8 million for the share buybacks.
At September 30, the company had cash of GBP49.3 million, a 33% increase from GBP37.2 million the year before. The rise stems mainly from the investment company's Regional REIT share sale.
Ware added: "We have submitted outline planning for the Nottingham City Centre site, taken full control of the Holyhead Waterfront development, are delivering our properties under construction and are also well positioned to capitalise on other opportunities when they arise."
The company recommended no dividend payout in the financial year.
Separately, Conygar announced it has agreed the terms of a profit sharing plan with its executive directors and employees, where they will be entitled to an allocation of a profit sharing pool.
The initial requirements of the pay-out under the plan must the company's NAV per share hitting 250p.
The plan is based on the increase in NAV per share. The initial pool is 20% of any increase in the NAV at September 30 over the last high watermark - in September 2014 - when payment was made under the company's last profit sharing plan - which was 196.3p, multiplied by the number of shares in issue.
There is no obligation that the pool be paid or distributed and the remuneration committee may reduce the pool at its own discretion.
Shares in Conygar Investment were up 0.3% Tuesday at 171.00 pence each.
Related Shares:
Conygar InvRegional Reit