Integration of Development Securities and Cathedral Group complete - U and I Group PLC set to deliver high quality, consistent returns
- As announced yesterday, Shareholders have been asked to approve a new name - U and I Group PLC (U+I) to formalise the integration of Development Securities and Cathedral Group
o Shareholder approval requested at a General Meeting on 5th November 2015
- U+I will combine the complementary capabilities of both businesses, specialising in best-in-class mixed-use regeneration to drive high quality consistent returns
- New strategic initiatives announced:
o Focus on a reduced number of larger regeneration opportunities in London City region*, Manchester and Dublin
o Creation of off-balance sheet, specialist platforms for specific asset classes in conjunction with long-term capital partners starting with the launch of a marketing process to establish a private rented sector (PRS) joint venture
o Investment portfolio change process underway to improve performance
- Integration to be completed with the imminent relocation of both organisations to a new headquarters building in Victoria
On track to meet full year targets
- 41 per cent of target full year development and trading gains delivered to date - £12.5 million of development and trading gains secured in the half year with a further £10.0 million secured since the period end
- Good visibility on H2 gains underpins Company's expectation to meet its previous full year guidance of £54.7 million of development and trading gains
- After payment of £4.4 million in dividends and a write down of £3.7 million against one investment asset, NAV decreased by 0.8 per cent to £343.6 million (274 pence per share)
- Interim dividend declared at 2.4 pence
Commenting on these results, Chief Executive, Matthew Weiner said:
"This has been another busy period in which we have maintained our focus on achieving another very strong year of development and trading gains which we are on track to deliver. We have also largely completed the integration of Development Securities and Cathedral Group.
We now have a stronger team with the depth of knowledge and skills to deliver high quality returns across the business. Using our combined expertise we have put in place a number of strategic initiatives as we seek to enhance our position as the UK's most respected mixed-use regeneration company. Leading the integrated teams in our new roles, Richard Upton and I aim to be the inspiration of U+I in that combined, we are stronger and more focused in all we do.
Central to the future evolution of our strategy is a much closer collaboration between our development and investment teams giving us greater scope for delivering the maximum value from every asset in our portfolio. Our combined capabilities also provide us with greater opportunities to take on a reduced number of more significant regeneration projects, whilst remaining disciplined in our ambition to deliver 15 per cent per annum pre-tax total returns.
Looking ahead, this is an exciting time as we target another very strong year of gains. We have a clear strategy and an exceptional team, the combination of which I am convinced will deliver long-term, sustainable returns to our shareholders, and enhance the communities in which we develop."
