26th May 2016 10:02
LONDON (Alliance News) - Property investor Urban&Civic PLC on Thursday said purchasing power in the Middle England region and the continuation of the government's Help-to-Buy scheme were much bigger factors for the company's continuing growth than the upcoming UK referendum on European Union membership.
Urban&Civic posted pretax profit of GBP8.4 million for the six months ended March 31, 44% higher than the GBP5.8 million it reported a year earlier, after revenue more than doubled to GBP29.5 million from GBP12.2 million a year earlier.
The company said GBP22.3 million of this came from trading property sales, whilst rental and other property income made up GBP7.2 million. The trading property sales included GBP16.0 million proceeds received for the sale of two land promotional sites in Dorset and Bedfordshire and GBP2.6 million from the sale of a managed workspace office in Doncaster, Urban&Civic said.
The company's EPRA net asset value grew to GBP390.8 million, or 270.9 pence per share, at the end of March, from GBP389.9 million, or 270.4p per share, at the end of its previous financial year, September 30.
Urban&Civic said its interim dividend was 1.10p per share, up 10% from the 1.00p it offered a year earlier.
Urban&Civic said it was "actively working to add projects within the areas identified as strong, outer London, golden circle and strongest cities, as well as targeted leisure schemes elsewhere where local markets are seen as underserved". The company added that it was commencing "strategic site housebuilding" on its own account which it said should capture further margin.
Urban&Civic said its full year results for the year to end September 30 are unlikely to "be much impacted by the forthcoming European vote".
"Purchasing power in Middle England and the continuation of Help-to-Buy are much bigger factors for Urban&Civic than Brexit. Our best barometer is to count the number of diggers on our sites. More than 20 reservations for our joint venture with Hopkins Homes Ltd at Alconbury in the four weeks since launch and with the show house not yet complete is testimony to the strength of demand and the quality of living environments that we are creating," said Chief Executive Nigel Hugill.
"The housebuilders are responding accordingly; three land parcels are contracted with a further four expected to close shortly, totalling more than 1,250 homes. With site momentum established, we can now also start housebuilding on our own account bringing improved margin capture and additional absorption," Hugill added.
Shares in Urban&Civic were flat at 260.00p on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
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