14th Jun 2016 09:46
LONDON (Alliance News) - Wynnstay Properties PLC on Tuesday noted significant uncertainties have arisen since the market tempered in the wake of the UK general election last May, but said it would continue to seek to grow its portfolio, announcing the purchase of four units in Lichfield for GBP2.0 million.
"The greatly improved economic conditions and prospects in the UK that appeared at about the time of, and following, the general election now seem to have been tempered by a number of significant uncertainties arising from different directions - political, security and budgetary - as well as from international trade and the global economy," Chairman Philip Collins said.
"Despite these uncertainties, published figures show continued UK economic growth and rising employment and healthy consumer spending. We are encouraged by the progress that Wynnstay has made over the past few years and will continue to explore opportunities to grow both the income and the capital value of the portfolio, including by further acquisition," Collins added.
This came as Wynnstay posted an increase in property income for the year ended March 25, at GBP1.8 million from GBP1.7 million, though its pretax profit slipped to GBP2.0 million from GBP2.4 million a year earlier. This was because the movement in the fair value of its investment properties came in lower at GBP946,000 from GBP1.5 million.
However, Wynnstay hiked its dividend to 13.20 pence per share, up from 12.30p per share a year earlier.
Wynnstay said its focus throughout the year had been on the Quarry Wood Industrial Estate in Aylesford, on the refurbishment and reletting of the business units at the Oakcroft Business Centre at Chessington and on the integration of the Beaver Industrial Estate at Liphook into the portfolio.
At the Quarry Wood, its largest tenant renewed its lease for four units for another five years, whilst another unit the tenant had taken on a temporary basis was surrendered and relet to a new tenant at an increased rental.
At the Oakcroft Business centre in Chessington, two of the three units were vacated by the tenant on the expiry of the leases at the end ofWynnstay's last financial year following the disposal of a part of the tenant's business. Wynnstay said it negotiated a "satisfactory cash settlement" and then carried out an extensive refurbishment funded by the settlement monies received.
In a separate statement Wynnstay said it had exchanged contracts to purchase four trade counter and industrial units in Lichfield from Ebury (Lichfield) Ltd, with completion expected in the near future, for GBP2.0 million.
The consideration will be funded from Wynnstay's cash resources and a new additional facility of GBP1.3 million from Wynnstay's bankers, it said, but did not name the bankers. The four units generate net rental income of GBP134,250 per annum, the company added.
Shares in Wynnstay were untraded on Tuesday, having last traded at 481.00p.
By Hannah Boland; [email protected]; @Hannaheboland
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