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LONDON (Alliance News) - Urban&Civic PLC Friday, which was acquired by property investor Terrace Hill Group PLC April in a reverse takeover last month, said Terrace Hill had a mixed first-half before its acqusition, after it swung to a loss following a "quiet" trading period.
In April Urban&Civic said the new group planned to raise GBP170 million through a placing of 75.6 million shares priced at 225 pence per share to fund further developments. The new group was renamed Urban&Civic PLC.
Urban&Civic Tuesday said Glasgow-based Terrace Hill slumped to a GBP5.2 million pretax loss in the six months ended March 31, after a GBP9.7 million profit a year earlier, while revenue fell to GBP10.5 million from GBP38.8 million a year earlier.
The group said Terrface Hill experienced a "quiet" trading period and management took the opportunity to exit two sites at amounts below their previous value where they believed the opportunity for future gains were limited.
It said coupled with six months of overheads, Terrace Hill's net asset value at the period-end fell to GBP55.9 million from GBP61.3 million in September, or 263.2 pence per share from 288.2 pence per share. Urban&Civic said following the merger, the enlarged groups net asset value stands at GBP315.0 million.
Despite pulling out of a number of schemes, Urban&Civic said Terrace Hill made good progress in a number of areas which will benefit the enlarged business going forward. Terrace Hill was granted planning consent for a 125,000 square foot foodstore in Teeside, north-east England, while strong letting progress was made at a leisure scheme in Darlington.
Terrace Hill had net assets of GBP50.8 million down from GBP55.5 million in September, while investment properties fell to GBP100,000 from GBP200,000 due to the sale of one residual residential unit. Development properties fell to GBP48.9 million from GBP58.2 million at the end of September, due to the sale of an office building in Gateshead and the sale of a site in Croydon.
Financially, Terrace Hill reduced net debt to GBP16.6 million from GBP17.5 million in September.
Looking ahead, Urban&Civic said integration of the two businesses is going well and Terrace Hill's secured pipeline will allow the group to "grow retain income quite rapidly."
Urban&Civic shares were quoted flat at 245.50 pence Friday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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