16th Dec 2016 10:51
LONDON (Alliance News) - The Conygar Investment Co PLC said on Friday a fall in its net asset value over its most recent financial year was "disappointing".
Property investment company Conygar reported its net asset value per share declined by 3.2% over its financial year ended September 30, down to 196.9 pence from 203.3p the prior year.
The fall was due to the GBP4.8 million, or 6.2p a share, write-off of Conygar's investment in its planned Pembroke Dock development in west Wales. Conygar said the decision was due to unexpectedly high costs for the construction of a marina at the site, which could not be separated from the land-based development.
"Although the fall in net asset value per share is disappointing, the group is well placed to deliver the other development projects and the balance sheet remains robust," said the company.
Conygar reported cash balances of GBP63.7 million at the end of the financial eyar, increased from GBP57.4 million at he same date in 2015. The company's bank debt increased to GBP56.4 million from GBP38.2 million over the financial year.
The company recommended no final dividend for the financial year.
"Despite the current political and economic uncertainties, our investment property portfolio has performed well and we expect this to continue in the short to medium term. At the same time, we are pushing the development projects forward and we anticipate that construction work will begin at a number of the sites this year in addition to the ongoing works at Cross Hands. We see the development pipeline as the main driver of shareholder growth in the medium term and this will be a major focus for the group in the coming years," said Robert Ware, chief executive of Conygar.
Shares in Conygar were down 0.9% at 158.00p Friday morning.
By Adam Clark; [email protected]
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