Trading Statement

7 October 2020

Urban&Civic plc

("Urban&Civic", the "Group", or the "Company")

POSITIVE TRADING UPDATE 

Realisations and prices ahead of pre lockdown levels

Urban&Civic plc, the leading Master Developer in the UK, today provides an update on trading to the end September 2020. The Company's full year financial results to 30 September 2020 are scheduled to be released on 1st December, 2020.

In summary, Urban&Civic reports a marked improvement in conditions from the interim commentary in June, with good performance from all strategic sites in delivery. Despite the lockdown interruptions between March and June, realisations in the year to 30 September will be at or above 840 units, compared with 665 for a full twelve months last year. Moreover, the trend remains upward: reservations in the fourth quarter from July to September were approximately 29 per cent above pre lockdown levels in January through March. Reservation prices are at or above pre lockdown averages across all five sites. 

Land sales in Catesby have been delayed, not through a lack of housebuilder demand but on account of slowed Section 106 agreements resulting from the additional complexities of planning and legal officers working remotely. Notwithstanding, the picture is similarly encouraging. The first post lockdown sale was completed last week, with a second conditional contract outstanding. Catesby currently has a further four consented sites awaiting local authority finalisations. Again, average contracted and indicated prices are at least matching pre lockdown expectations.

The Group was able to work safely maintaining infrastructure investment through the summer, notably on our schools programme and at Priors Hall, Corby. The secondary school at Houlton, Rugby remains on schedule for September 2021 opening. The primary school at Wintringham, St Neots, will be ready next month, ahead of first housing completions by Christmas. Last month, the Secretary of State for Housing formally commenced the build of a new primary school at Middlebeck, in his Newark constituency, for opening in September 2021. Contractors have been instructed for the new Secondary Education Campus at Alconbury for opening 2023/4. In the meantime, the first phase enabling works for Zones 2 and 3 at Priors Hall were completed ahead of schedule. Revised planning consents, increasing overall numbers and altering the weighting in favour of neighbouring East Northamptonshire, ought to be approved by December. All residential land in Zone 1 at Priors Hall is now contracted. There is considerable interest in the newly enabled areas from a broad spread of housebuilders, the first of which are anticipated to start on site in the current financial year.

The acceleration in spend is underpinned by expansions in project facilities being made available from Homes England. The enlargement across four facilities aggregates £31 million of which the Group share represents £25 million. Project funding from Homes England and the Department for Education now totals £296 million, of which Urban&Civic's pro-rata share is £235 million. Total amounts advanced at 30 September were £199 million, of which the group share was £154 million. Interest, where applied, remains accrued and payable only out of realised proceeds. The average term length of the Homes England facilities exceeds 9 years. 

The Board expects to resume the payment of dividends for the full year in the normal course. A decision as to quantum will await preparation of the full year accounts.

-ENDS-

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