(Alliance News) - Urban&Civic PLC on Friday reported a swing to a loss for its recently ended financial year on lower revenue, and a deficit on the revaluation of investment properties.
Also on Friday, the property investor said that its GBP506.0 million takeover offer by Wellcome Trust represents the full recognition of the company's net asset value per share of 343.2 pence at the end of September.
Under the acquisition's terms, Wellcome will acquire Urban&Civic for 345 pence per share, reflecting a 64% premium to the company's closing price of 211.0 pence the day before the announcement and above Urban&Civic's EPRA net asset value on September 30 of 343.2p.
Urban&Civic will hold a court meeting and general meeting on December 14, to propose the acquisition to shareholders and gain approval from them.
For the year to the end of September, the company's pretax loss was GBP8.1 million, compared to a profit of GBP16.3 million the year before, due to a deficit in the revaluation of investment properties to GBP9.0 million from a surplus of GBP5.1 million.
Revenue meanwhile, declined by 39% year-on-year to GBP80.4 million from GBP131.5 million, due to lower commercial sales and losses at its hotel in Manchester.
EPRA net asset value as at September 30 declined by 4.7% to 343.2 pence per share from 360.3p the same date the prior year, as the company's property portfolio value declined by 1.5% year-on-year to GBP691.8 million from GBP702.5 million.
Urban&Civic declared no dividend for the year, compared to 3.9 pence per share the year before, as a result of the cash offer by the Wellcome Trust.
"The fundamental strength of the Urban&Civic model has been demonstrated through this most testing of years. Confident capital investment and rethought housebuyer priorities have contributed to post July sales and prices reaching best ever levels. Urban&Civic champions Master Development and continues to attract material new opportunities for growth requiring additional financing to support an unambiguous net money out 5-7 years; net money back 15 + years model. The alignment with the investment horizons and community building aspirations of Wellcome is very evident," said Chief Executive Nigel Hugill.
Shares in Urban&Civic were up 0.3% at 343.00 pence on Friday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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