Conygar net asset value rises in first half

(Sharecast News) - The Conygar Investment Company reported a rise in net asset value in its interim results on Tuesday, to £63.8m, or 107.5p per share, as of 31 March, up from 103.0p at the end of September.

The increase reflected a £6.3m profit from the disposals of Holyhead Waterfront and Parc Cybi in Anglesey, offset by operational and financing costs.

However, net assets remained significantly lower than the £91.2m reported a year earlier, driven by a reduction in property values and higher borrowings.

Cash reserves rose to £7m following the sales, compared with £4.7m at the prior period end.

Conygar also extended the maturity of its Barclays development loan for the Winfield Court student accommodation at The Island Quarter in Nottingham from March to December 2025.

The company said lettings at Winfield Court were progressing well for the upcoming academic year.

At its 1 TIQ restaurant and events venue, Conygar reported stable revenues and improving margins, despite broader headwinds in the hospitality sector.

The company said it was continuing to focus on progressing its development and investment projects, with a particular emphasis on The Island Quarter.

"Uncertainty, as a result of macroeconomic and geopolitical tensions, has subdued investment volumes over the first three months of this year," said chief executive officer Robert Ware.

"However, the continuation of rental growth, supported by a shrinking construction pipeline, and the downward trajectory of lending rates should ensure the improving performance for UK real estate is maintained throughout the year.

"With investors prioritising high quality and sustainable investments we are optimistic that opportunities will evolve over the coming months and years which should enable us to maximise the returns from The Island Quarter in Nottingham and our other assets."

At 0812 BST, shares in the Conygar Investment Company were up 2.63% at 29.25p.

Reporting by Josh White for Sharecast.com.

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