(Alliance News) - Capital & Counties Properties PLC on Tuesday said it has had to take a prudent approach to its finances, leaving shareholder pockets empty, as Covid-19 widened annual losses and weighed down property revaluations.
The London-based property investment and development company posted a net asset value per share at December 31 of 206.8 pence, down from 290.0p a year prior.
Capco's loss before tax in 2020 widened to a gaping GBP704.7 million from GBP61.3 million the year before. Loss on revaluation and sale of investment and development property widened to GBP693.1 million from GBP43.3 million.
On top of this, net rental income sunk to GBP15.9 million, from GBP61.1 million, with the firm stating that "the Covid-19 pandemic has had a material impact on the financial performance of the group".
Total property value dropped 28% to GBP1.9 billion from GBP2.8 billion, on a like-for-like basis, due to challenging occupier and investment market conditions resulting from the pandemic.
"Capco takes a prudent approach to financial management and the board implemented a number of actions early in the year in response to the Covid-19 pandemic, including cancellation of the GBP100 million share buyback programme and suspension of the dividend," Capco said.
A total of GBP700 million was also raised through disposals.
Capco's 2020 was bare of dividends, versus 1.5 pence per share in 2019.
Going forward, Capital & Counties said: "Operating conditions will remain difficult for our customers which is anticipated to lead to enhanced levels of vacancy and further adjustments in valuation and rental levels. However our immediate priority is focused on making sure our customers reopen successfully. Getting office workers back will help the economy move towards more normal levels of activity. There is a clear roadmap for our retailers and restaurateurs to build trade. The upcoming easing of restrictions and the reopening of hospitality, retail and leisure activities will lead to a gradual return of domestic footfall."
Capco shares sank 3.5% at ZAR36.29 each in Johannesburg on Monday morning, and were down 1.3% at 169.80p each in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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