28th Sep 2007 07:06
Wichford plc28 September 2007 Embargoed until 7.01 a.m. on 28 September Wichford plc Company Update The Board would like to take the opportunity to provide a trading update aheadof its financial year end on 30 September 2007. In our interim statement we re-affirmed the Board's decision to extend theacquisition strategy to include Continental Europe and at the same timeannounced the Company's first European purchase, in Germany. Since then theCompany has acquired four further properties in Germany and one in France for atotal consideration of approximately €158 million. The Company has alsoentered into a forward contract to acquire a property in the Netherlands for aconsideration of €30 million which, with the properties referred to above, willbring our investment in European assets to some €245 million, or approximately24% of our total portfolio which will then exceed £700 million. These newproperties, which are leased to government tenants, increase the Company'sexposure to index linked rental streams which will enhance both the current andfuture rental income. In the last four weeks Wichford has also sold two properties, in Croydon andTaunton, for just under £20 million. These disposals are in keeping with ourstated policy of maintaining high quality government tenanted properties andwill enable us to re-invest the proceeds in further higher yielding propertiesin Europe. We will continue to sell properties in the UK which are no longerproviding the best returns for our shareholders. The Company will maintain its policy of securing long term debt facilities.Group borrowings currently stand at £408 million, net of cash, includingapproximately £112 million which is denominated in Euros. Despite the recent turbulence experienced in some parts of the property market,as of the date of this statement:- - The Board expects to report a net asset value per share at 30 September2007 which will be no less than 200 p per share (31st March 2007 216.12p) - Subject to there being no significant changes in market conditions, theBoard expects to recommend a final dividend of 6.2p per share, making a totaldividend for the year of 10.2p per share (2006 - 9.5p). Although attractive buying opportunities in the UK market are increasinglydifficult to find, we are still able to identify properties in Europe whereearnings are incremental to our current yield and, additionally, provide us withindexation enhancements in the years ahead. The Board continues to monitor closely the options available to the Company andto this end the Board plans to propose to shareholders an increase in theCompany's share buy back authority from the current level of 5% to 10% of issuedshare capital at the next AGM and to maintain flexibility in this regard.However, the Board believes that the best use of shareholders' funds iscurrently to focus on investment into European assets, which offer bothattractive yields and rental growth. The Board has decided to apply to the London Stock Exchange to list theCompany's shares on the main market. Michael Sheehan Chairman Isle of Man 28th September 2007 Enquiries: Wichford PLC Jamie Hambro Tel: 020 7747 5656 Richard Britten-Long Tel: 020 7016 6150 Philip Cooper Tel: 020 7495 7111 Citigate Dewe Rogerson Tel: 020 7638 9571 Freida Moore Hannah Seward Evolution Securities Limited Tel: 020 7071 4300 Tim Worlledge Jeremy Ellis Notes to Editors Wichford PLC (AIM:WICH) is a property investment company, with a portfoliofocused on UK investment property outside Central London occupied exclusively byUK Central Government bodies. Recent purchases in Germany and France have begunthe process of re-balancing the portfolio as the company begins to takeadvantage of opportunities in continental Europe. The Company currently owns 79 properties with a gross asset value of circa £676million generating a rental income of circa £40 million per annum. The company'sportfolio of properties has unit values usually between £2 million and £25million. The Company's current core portfolio has a weighted average unexpiredlease term of circa 11 years. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
RDI.L