22nd May 2019 13:49
LONDON (Alliance News) - U&I Group PLC on Wednesday reported a sharp fall in earnings in its most recently ended financial year due to economic and political uncertainty in the UK.
The stock was trading 4.4% lower on Wednesday at 164.52 pence a share.
The real estate developer changed its financial year end to the end of March from the end of February "to align with its market peers".
U&I said pretax profit tumbled to GBP6.3 million in the 13 months to the end of March compared to GBP48.2 million reported for the year to the end of February 2018. Revenue dropped to GBP150.3 million from GBP173.7 million.
Development and trading gains totalled GBP42.8 million, down from GBP68.3 million due to prolonged political and economic uncertainty. This resulted in some projects being delayed - including Kensington Church Street and Rhoscrowther Wind Farm - both of which the company now expects to monetise in its financial 2020.
"Whilst the last thirteen months have seen economic and political uncertainty in the UK, which has affected decision-making and timing on some of our projects, these uncertainties have also opened up new opportunities to expand our portfolio," said Chief Executive Matthew Weiner.
At the year end, the investment portfolio was valued at GBP154.0 million, up from GBP139.5 million the year before. Over the 13-month period U&I said it made GBP27.4 million of acquisitions and GBP7.5 million of disposals.
The company proposed a final dividend payment of 3.5 pence a share, taking the total for the year to 5.9p. In addition, the company declared a supplement payout of 4.1p a share.
Based on the company's current pipeline, U&I lowered its forecasts for its current financial year and said it now expects trading gains of GBP35 million to GBP45 million, revised down from GBP45 million to GBP55 million guided earlier.
"A major focus over the coming year is on delivering our existing development and trading projects, as well as driving through the investment portfolio strategy," added Weiner.
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