2nd Oct 2019 11:42
(Alliance News) - U & I Group PLC on Wednesday said it is making changes to its pipeline and investment portfolio, and working to further cut costs.
Shares in U & I were up 2.2% at 156.20 pence in London in late morning trade.
The company, which is holding a capital markets day Wednesday, said the first phase of its business strategy will include a move towards "fewer, larger projects" in order to help grow development management fees to around GBP5.6 million per annum by financial 2022 from GBP2.5 million recorded in the year ended March 31.
Regeneration developer and investor U & I is also looking to move its development assets into an investment portfolio with a view to generating "superior rental and capital growth" and hitting a 10% per annum return target. This should shrink its retail exposure and make sure the portfolio is concentrated "on the high growth geographic regions it targets".
Under phase two of its business plan, U & I plans to focus on cost savings. In the first six months of 2019, the company managed to cut its annual overheads by around GBP1.0 million and it now plans "to deliver a further GBP3.0 million of annualised savings within three years" to financial 2022.
The company will post its interim results for the six months ended September 30 on November 20, along with its progress during that period.
By Anna Farley; [email protected]
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