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I was wondering the other day if we would see bod buying and here it is. Richard Upton buying another £100k worth. Gives some confidence.
If you haven't watched the webcast it is well worth watching.
https://www.uandiplc.com/investors/results-and-presentations/
I have been quite impressed by the webcast.
Richard Upton CEO is one of the main reasons I'm still invested here. He has a holding of over 3%. He is rich enough that he doesn't need to work but is quite clearly driven to succeed in his work.
The plan of simplifying the business I have seen done in other businesses to great success. UAI has had its fingers in too many pies, so simplifying the business to concentrate on the most profitable ventures, their Core assets, UAI are targeting £1.4 billion in profits.
Debt has been reduced by £58m this last year to £72m. Expenses are being reduced, currently on £15.5m per annum. This is ahead of their target of £16m. Further reductions to come with a target of £12m.
Over the last year ESG has become paramount to the Government and increasing to many investors. People want to see companies being responsible to the environment in so many ways. ESG has always been UAI's way of working and has become one of the leading companies for development with ESG in mind. There are huge grants available (approx. £6 billion) from the Government for companies to develop sites with ESG in mind.
Non Core assets held by UAI are to be sold off in the next few years. A total of 35. £80m is expected to be received in this coming FY with a further £30m the year after. 28 of the 35 assets are expected to be sold within the next 2 years with the remaining 7 sold within the following 2 years.
UAI are fully funded to cover expenses and those projects that need additional funding to complete will be funded via profits made from the sales of their non core assets.
So, in the next two years there will be plenty of news to come from UAI. Obviously the proof will be in the pudding, but the new CEO has immediately set out to change the company via reduced costs, reduced debt and reduced projects to concentrate on, targeting £1.4b in profits in the next 4-5 years.
Previously UAI were always a high dividend payer and this is likely to return next FY.
All in all, I'm happy with the direction the company is taking and added yesterday.
Richard Upton - "I'm absolutely determined that these years of under performance is behind us".
https://www.investorschronicle.co.uk/ideas/2021/05/26/opportunities-in-property/
Recovery play, GLA
Agree, clearly a few problems and hopefully they have done enough to get the company back on the right lines. The next set of results will be key. Poor and the share price will spiral down I think. Holding for the time being but would hope to see some positive rns in the coming months to give me some confidence
Sharp intake of breath!
Cannot say this was a bolt from the blue and they may well have axed enough but we don't know yet. A firm hold for now and if SP drops too far, it may be worth collecting a few more. In short, the BoD have done the right thing and time will tell.
Looks like Christmas has come early and markets like the move on a day that sees the ftse drop 2%.
Couldn’t agree more
Every time I review my portfolio and ask the question: should I cash in my profit on UAI ? The answer is a resounding NO. Share price pre-Covid was 186p which means we’re only half-way on the recovery.
Still way off the recent NAV calculation of £1.93 per share. Down from £2 odd. Another easy hold.
Well I was going to post the other day about UAI chart looking very positive with a cup and handle pattern formed. Looks like 120p then 135p will come soon.
CEO Richard Upton has just added another £50k. That's some holdings he has now.
cont.
It is important that more houses are built upon ‘brownfield’ sites, because the less we have to build on previously undeveloped greenfield sites then that is good and much preferred.
U and I Group (UAI) – mkt cap £106m, price 84.5p
U+I operates in a large, fast growing market, where there is an urgent need for the type of mixed-use regeneration projects that it delivers.
The group states that it secures land that is right for community focused regeneration and mixed-use development projects. Such sites are often underestimated and overlooked, full of heritage and potential, and the prospect of their development is too complex for others to consider handling.
The group’s management believes that it is good at securing sites. It uses its strong relationships to lead to off-market deals. It has a proven track record of more than 25 years and its focus is upon regions where planning policy promotes regeneration.
The group unlocks and then adds value to its sites. It regenerates and develops, it trades out all or part of its developments, while also adding value through asset management, refurbishment and lease extensions.
Quoted Data in its Real Estate Annual Review, out on 22nd January this year, stated that the UAI share price reached an all-time low during the last year as it continued to battle against declining land and development values across its portfolio.
On 19th January the group announced its interims to end September last. They were ghastly in appearance, showing £25m of development and trading losses and a pre-tax loss of £50.2m. Its net assets dropped from £327m to £240.5m.
Its basic net asset value fell from 263p to 193p a share. Its balance sheet gearing was slightly lower at 46% (47.1%).
But looking deeper, it actually showed that the company’s management had taken some decisive actions in cutting cost, while strengthening its balance sheet. It is also now undergoing something of a management change.
Come the 26th May we should be getting the finals to end March this year, together with the results of a Strategy Update that is now underway.
Analyst Tom Musson at Liberum Capital commented that “U+I is operating with low visibility, not unlike many other companies across the world right now. However, we still expect U+I to deliver material equity upside in the medium term, given its asset base.”
He reckons that turning the group’s net asset value into cash will help to lower the net asset value discount, upon which the shares are currently trading.
I rate highly the upside potential of these shares and I have been noting significant Director share purchases in the last two weeks – that is certainly good enough for me.
Found this from 02-02-21.
"Is this country is getting overcrowded?
It is considered that the UK population is expected to grow by 7% to some 72m people by 2040.
That will add to the pressure that our cities, towns and villages have to offer by way of infrastructure such as public places, amenities, services and of course new homes.
Planners and developers now need to take in mind how they will cope with new living, working and social behaviours.
As the population continues to grow over the next couple of decades, it is apparent that well over the Government’s aim of 300,000 new homes a year will be required.
It is believed that more than half of the UK land area is farmland, such as fields and orchards, while just over a third is natural or semi-natural, such as moors, heathland, and natural grassland.
Some 5.9% is built on, such as roads, buildings, airports and quarries, with around 2.5% being classed as green urban, like parks, community gardens, golf courses and sports pitches.
Whilst having one of the highest population densities in Europe, it is interesting to note that the actual amount of land taken up by homes and gardens across the UK is a little over 5% - 12,700 sq.km out of the total UK land of 244,000 sq.km.
So where is the land to come from for the residential developers to complete their growingly important task?
Much of the land that was once used for industry in this country now lies redundant. Planners call it ‘‘brownfield’ land’ and everyone is keen to see it brought back to life.
As it is usually located in urban plots it is ideal for housing, so planners look very favourably on ‘‘brownfield’’ redevelopment proposals.
In the UK a ‘‘brownfield’’ site is defined as ‘previously developed land’ that has the potential for being redeveloped. It is often land that has been used for industrial and commercial purposes and is now derelict and possibly contaminated. The UK is committed to developing ’brownfield’ sites as a priority.
That includes land or buildings that are not currently in use, either vacant, abandoned, and/or contaminated. The term usually refers to former industrial sites in urban areas that may need cleaning up before they can be redeveloped.
Many ‘brownfield’ sites are located in existing towns and cities. That means that much of the infrastructure needed for new homes, such as transport and utilities, is already in place, which can obviously reduce developer costs and timescales.
Professional land developers find that it can also be possible to gain planning permission on ‘brownfield’ sites in the countryside, especially if those sites are a nuisance or cause an eyesore. Plots on the edge of settlements are often the first that councils consider for new housing, particularly if that settlement is set to expand.
Substantial ‘brownfield’ sites, such as former hospitals or other government land, are often targeted for large-scale housing developments.
This may even be one to hold for a long if you have a good average price as they are pretty good at handing back money via their dividend.
Agreed.
Look at the NAV. Look at the economy's trajectory moving forward. Property market is getting better.
Can't believe how overlooked this company is. The herd will arrive sooner or later
42trader.
Quite agree, took a while must admit , I,ve been watching Level 2 for several days and we are now trading at a slightly higher level yesterday and today. With the improving economy a sp over £1 Will be acheived soon then on towards the Nav still a bargain at these prices rather than loads of overvalued companies elsewhere.
Good to see the resistance level of 89p has been broken at last. Next stop 103p. Happy to hold for a lot higher price.
Excellent move. A lot of large sales have been bought up yesterday and today making me believe we have a much larger buyer for the stock. I'm holding mine for £1.50 ish which will be achieved once normality resumes, I may even hold for divi's once they are fully restored. Good luck but luck won't be needed just time.
Bought more and calc'd my average as just under £1.10. Now got too many in portfolio but with a following wind.......
Thanks for the chart, GettingBy. Muggins bought near the top, so ripe for doing what Muggins should really not do: viz, chucking more in to the pit, also known as 'averaging down'!! As you say, CEO buying not a bad signal.
Good sign to see the CEO still buying. Looking at the price history below this stock has the potential to 5 -10 bag when the market finds this sector more favourable. The saying goes "buy in gloom, sell in boom"
https://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=&symb=uk%3Auai&time=20&startdate=1%2F4%2F1999&enddate=5%2F17%2F2019&freq=2&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=2&maval=26&uf=0&lf=4&lf2=1&lf3=2&type=4&style=320&size=4&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=46&y=13
Many thanks. fingers crossed. I like a company that has a clear strategy that knows where it wants to go and is led by a person with a proven track record. This hopefully ticks both boxes
You will do fine. Just buy & hold thr Nav if this company can't be ignored for even. Reckon people will be pay higher than £1 for shares in a few wks.
I bought in this week at 87p thinking a good investment having seen the presentation and researched the CEO. Since then drooped to 80 so beginning to wonder if I did the right thing. Pleased though that the CEO bought more this week and hoping for positive news in May. Given the vaccines, this lockdown insanity cannot surely go on much longer
I’ve made a reasonable profit in 2020 from pubs and miners. I’ve cashed in and put it all in U and I. Richard Upton’s confidence in its future is my main reason. I visited Tunbridge Wells last year and am originally from the North West. These areas look perfect for investment. His clearance strategy is, in my opinion, a good strategy to for any new manager. Let’s sit back and watch.
Due to Covid 19 with the country being effectively at a standstill this Sector is unloved at the moment hence the low sp. Money is currently in resources and crypto creating a bubble. Now when we have herd immunity the country can get back to normal and the commercial sector will rebound and be a great income producing asset again and valuations much higher. But I am buying now whilst valuations are cheap, the directors see it hence the buying. U&I are undervalued with plenty of projects on the go to release future profits. A no brainer here. This sector has to rebound and it's beginning too.
Good luck all
And the buys keep coming in...