THE CONYGAR INVESTMENT COMPANY PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2024
SUMMARY
· Net asset value (“NAV”) decreased in the year by £34.0 million to £61.1 million (103.0p per share; 2023: 159.4p per share). This was derived primarily from a £28.3 million write down in the carrying value of the Group’s properties. In addition, the Group incurred £4.3 million of net operational, administrative and debt financing costs and wrote down its £1.4 million investment in the proposed residential development at the Fruitmarket site in the St Philip’s Marsh area of Bristol (“Bristol”).
· Cash deposits amount to £4.7 million (7.8p per share) at 30 September 2024 boosted in the year from placing 5 million zero dividend preference shares of £1 each (the “ZDP shares”) and the drawdown of a £12 million loan facility from A.S.K. Partners Limited (“ASK”).
· Construction completed in June 2024, on time and on budget, of Winfield Court, the first phase 693-bed student accommodation development at The Island Quarter in Nottingham (“TIQ”).
· Winfield Court occupancy at 54% for the current academic year generating net operating income, before debt financing costs, of £1.5 million.
· Credit approval received from Barclays Bank PLC (“Barclays”), after the balance sheet date, to extend the development loan facility, secured against Winfield Court, until December 2025. This will enable the further letting and stabilization of the property over the coming year.
· Purchase completed of the long leasehold interest in the Virgin Active gym at TIQ for a gross consideration, before taxes and fees, of £5.9 million reflecting an initial yield of 10.25%.
· Detailed planning application submitted in February 2024 for the second phase of student accommodation at TIQ. This comprises a 383-bed scheme to adjoin, and complement, Winfield Court for which we are anticipating a positive determination in early 2025.
· Revenues and margins steadily increasing at our restaurant and events venue at 1 The Island Quarter (“1 TIQ”) as the reputation for this unique local offering becomes more established.
Group net asset summary
| 2024 | 2023 | |||||||
| Per share | Per share | |||||||
| £’m | p | £’m | p | |||||
| Properties | 117.9 | 197.7 | 113.2 | 189.8 | ||||
| Cash | 4.7 | 7.8 | 2.7 | 4.5 | ||||
| Borrowings | (55.9) | (93.6) | (17.2) | (28.8) | ||||
| ZDP shares | (4.9) | (8.3) | – | – | ||||
| Other net liabilities | (0.4) | (0.6) | (3.6) | (6.1) | ||||
| Net assets attributable to shareholders | 61.4 | 103.0 | 95.1 | 159.4 | ||||
| Non-controlling interests | (0.3) | (0.5) | – | – | ||||
| Net assets | 61.1 | 102.5 | 95.1 | 159.4 | ||||
Robert Ware, chief executive commented:
“Despite the recent change in the UK government impacting both consumer and investor confidence, the improving economic outlook, as a result of lower inflation and interest rates being on a downward trajectory, appears to be slowly improving both the sentiment for, and activity in, the UK real estate sector.
Whilst the market remains challenging and uncertain, and our cash flows remain restrictive, these green shoots of optimism will enable the Group to cautiously progress with a number of emerging opportunities as we seek to maximise, over the coming years, the returns from our property portfolio.”
Enquiries:
The Conygar Investment Company PLC
| Robert Ware: | 0207 258 8670 |
| David Baldwin: | 0207 258 8670 |
Panmure Liberum Limited (nominated adviser and broker)
| Richard Lindley: | 0203 100 2000 |
| Jamie Richards: | 0203 100 2000 |
Temple Bar Advisory (public relations)
| Alex Child-Villiers: | 07795 425580 |
| Sam Livingstone: | 07769 655437 |