UandI Preliminary results Feb 2017
On 26 April 2017, regeneration and development firm U+I reported preliminary results for the year ended 28 February 2017.
The headlines included:
- Four new large-scale PPP projects were won, adding £90m to the pipeline of gains from 2020 and £1.5bn of gross development value to the portfolio.
- Two specialist platforms were established – joint ventures with Proprium Capital Partners and Colony NorthStar to leverage equity and intellectual capital and generate fees.
- Investment portfolio values stabilised.
- £18.0m of non-core investment asset disposals in line with the strategy to reposition the investment portfolio and drive higher returns.
- £35m of development and trading gains were realised.
- £65m - £70m of development and trading gains set to be delivered in FY2018 and visibility on more than £150m of development and trading gains in the next three years from existing projects alone.
- Investment portfolio total return of 10% targeted for FY2018 through non-core asset disposals (FY2018 target: £50m), reinvestment (FY2018 target: £50m) and asset management (FY2018 target: £5m).
- Targeting a £2m reduction in net recurring overheads in FY2018 through cost savings and management fees from specialist platforms.
- The business is on track to deliver a 12% post tax total return per annum in the next three years.
Matthew Weiner, Chief Executive said:
"I am encouraged by our performance. We delivered £35 million of development and trading gains from our planning-led regeneration activities, notwithstanding the substantial hit to transaction activity following the EU referendum. This result, which was within our guidance range, has enabled us to declare a third consecutive supplemental dividend in addition to our ordinary dividend. In the year ahead, we are set to deliver our highest level of development and trading gains to date - £65-70 million - from a mix of large-scale public private partnership (PPP) projects and shorter-term trading opportunities, delivering our target 12% post-tax return to shareholders.
“We have made good progress on our strategy. During the year, we secured four significant PPP projects totalling £1.5 billion of gross development value and adding £90 million of development and trading gains in FY2020 and beyond. This reflects our stated focus on large-scale PPP regeneration opportunities and underlines our leading reputation in this market. We were pleased to establish two specialist platforms during the year with Proprium Capital Partners and Colony NorthStar. These platforms allow us to acquire and deliver projects off-balance sheet, in line with our equity efficient approach, leveraging our equity and intellectual capital whilst generating fees to the business to offset overhead.
“Improving the performance of our investment portfolio remains a key priority. We are focused on delivering a 10% total return from our investment activities in the year ahead as we transition our portfolio to better align to our core regeneration expertise. We are targeting £100 million of transactional activity this year with £18 million already in hand, and are set to deliver £5 million of value gain as a result of our proactive asset management.
“The potential in the UK for mixed-use regeneration is significant and the number of opportunities is growing. Based on our extensive expertise in planning and development, we are confident that we can deliver sustainable returns to shareholders as we create long lasting social and economic change for the communities in which we work."
For more information, see U+I's report.
--U and I
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
The continued ISG fall out, where to go?
Support for ISG contractors, companies and employees.
New HES national centre for traditional building retrofit
Announced as HES publishes survey results which reveal strong support for retrofit.
Retrofit of Buildings, a CIOB Technical Publication
Expected to become one of the largest activities in the global construction industry.
The ECA industry focus video channel
Keeping update with the industry session by session.
Over 25 recorded informations sessions freely available.
AT Awards 2024 ceremony East London October 25th.
Revisiting the AT community at the 2023 awards evening.
The Community Housing Fund and built affordable homes
CLTN reviews the impact of the Fund and calls for extension.
The grading system of the Regulator for Social Housing
A background, an explanation and ten recent enforcements.
Construction, repair and maintenance. Book review.
Putting new life into a city with a 1900 year history.
BSRIA Briefing 2024: Sustainable Futures speakers
Redefining Retrofit for Net Zero Living 22 Nov.
Wall of support for post-Grenfell regulation of electricians
Call for a shake-up of the construction industry highlighted on radio.
Digital sustainability through future AEC tools
Bringing together industry and academia to meet challenges.
Skills gap for net zero highlighted to Minister for Industry
ECA convenes roundtable discussion at Portcullis House.
Evidencing Net Zero with the new UK buildings standard
Pilot version with detailed excel proforma out now!
Scottish Building Safety Levy, in consultation
From direct remediation and the RPDT, to the costs and alternatives.
Waves of warmer homes grants for the rental sector
Boosting energy efficiency standards for all rented homes.
A refocus of the National Planning Policy Framework
Key terms described in brief, as the consultation closes the evening of the 24th.
Fortified farmhouses of the unruly 16th-and 17th-century borders.