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Preliminary Results for the year ended 29th February 2016

28.04.16

U+I today reports a second consecutive year of record development and trading gains driving further growth in net asset value.

Financial highlights

  • Record level of development and trading gains - increased 11.8% to £51.1 million (2015: £45.7 million)
  • Continued NAV growth – EPRA NAV per share increased by 5.4% to 291p (2015: 276p)
  • Total dividends of 13.9 pence per share declared in respect of FY2016 including a supplemental dividend of 8.0 pence per share to be paid on 17 June 2016 (2015: 13.9 pence per share)
  • New dividend policy to align shareholders better with U+I’s value creation strategy of delivering gains through regeneration and to provide greater visibility on returns

Delivering strategic initiatives and well-positioned to deliver target returns

  • Good visibility on pipeline of total gains Aggregate expectations for development and trading gains unchanged over the next two years at £114.0 million. Revised guidance for the individual years – FY2017: £42.0 million from £53.0 million; FY2018: £72.0 million from £61.0 million
  • Targeting 12% post-tax total returns and over £50m of development and trading gains per annum within a 3 – 5 year period
  • Building pipeline of large mixed-use regeneration opportunities in core markets
    • Two significant new Public Private Partnership (PPP) projects recently won with a combined GDV of £480m: Cockpit Yard, WC1 and 8 Albert Embankment, SE11
    • Appointed preferred developer for TfL’s 10-year development platform providing access to significant pipeline of potential opportunities
  • On track with 3-5 year plan to build a more dynamic investment portfolio that better supports the overall returns target of the business
  • Heads of terms signed with a major UK-based capital partner to create a Build to Rent platform
  • Executive Committee established with clear responsibility for day-to-day implementation of business plan

Commenting on the results, Matthew Weiner, Chief Executive, said:

“I am proud to report on a successful year for the business, our first as U+I and under a new management team. We have delivered a second year of record-level development and trading gains and made progress on our journey in positioning the company to be able to deliver its 12% post-tax total returns target.

“As a result of this positive performance and the level of development and trading gains achieved, the Board intends to pay a supplemental dividend to shareholders, the second that we have declared in the last two financial years paid in accordance with a new policy announced today.

“We are implementing the new strategic initiatives we announced last October in particular building a portfolio of larger regeneration opportunities and a more dynamic investment portfolio that better suits our core skills as a regeneration developer. In addition, we are delighted to be establishing our first specialist platform having signed heads of terms to create a Build to Rent (BTR) platform.

“With a clear strategy and an exceptional team, U+I is set for growth, with the projects, people and pipeline to deliver a sustained level of performance in the years ahead. Despite dampened wider economic conditions, we remain focused on our vision: to deliver sustainable returns to shareholders as we create long-lasting social and economic change in the places we develop.”

Financial summary

  29th Feb 2016 28th Feb 2015
Development and trading gains £51.1 million £45.7 million
EPRA Net assets £363.5 million* £345.6 million
EPRA Net assets per share 291p* 276p
Basic Net assets £363.3 million* £346.4 million
Basic Net assets per share 291p* 276p
Total declared dividends per share 13.9p 13.9p
Profit before tax £25.8 million £34.8 million
Basic earnings per share 17.5p 26.8p
EPRA Earnings per share 17.1p 23.9p
Investment portfolio valuation £203.3 million £203.3 million
Net debt £161.4 million £125.7 million
Gearing 44.4% 36.3%

*before payment of supplemental dividend - to be paid in June 2016

U+I will host an analyst presentation this morning at 9.30am. To join the conference call, please use the flowing details:

Participant dial in number: +44 (0)20 3059 8125
Participant password: Please quote U+I to the operator

Enquiries
U+I

Matthew Weiner, Chief Executive
Marcus Shepherd, Finance Director
Lucy Grimble, Head of Communications
Tel: 0207 828 4777

Tulchan Communications

Peter Hewer
Charlotte Church
Tel: 0207 353 4200

 

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