Capco underlying earnings 1.4p vs 1.5p

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JSE- and London-listed property group Capital & Counties on Wednesday reported underlying earnings per share of 1.4 pence for the year ended December 2011 from 1.5 pence a year ago.

The company's diluted net asset value per share was up 11.7% to 166 pence per share.

Net rental income was unchanged at £69 million, while underlying earnings after tax excluding valuation items rose to £9.5 million from £9.2 million. Profit before tax grew to £161.9 million from £132.5 million.

The group has proposed a final dividend of one pence per share, for a total 2011 dividend of 1.5 pence per share.

Capco is one of the largest listed investment and development companies in central London, with landmark estates held directly or through joint ventures, valued at £1.6 billion. Its assets are concentrated around three main estates in central London - Covent Garden, Earls Court and Olympia

It also has a 50:50 joint venture with Great Portland Estates, which includes properties in prime locations around Regent Street and Piccadilly.

Ian Durant, Chairman of Capital & Counties Properties PLC, commented: "Capco is well positioned to maintain its momentum following a year of progress and value creation in 2011.

"Strong total returns were generated by energetic and profitable activity in line with the strategy articulated at the time of establishing Capco as an independent company in 2010.

"Carefully targeted acquisitions and the drive towards creative regeneration have established a solid platform from which to continue to create value from Capco's assets."

CEO Ian Hawksworth added that the transformation of Covent Garden into one of the most vibrant retail and leisure destinations in London continues to create value and attract new brands, while the recent resolution to grant planning consent for our Seagrave Road development is an important milestone in the group's progress with the Earls Court Masterplan following the submission of our planning applications in June.

"I am confident that Capco's place-making vision, creative teams and central London-focused assets will provide considerable opportunities in both the retail and residential markets during 2012."

He attributed Capco's success in 2011 to its strategy of focusing on specific central London prime assets where the group has a dominant position.

This allowed it to benefit from the distinct, strategic capital and economic characteristics of a specialist central London non-REIT property company.

"I am in no doubt that London will benefit enormously from the Queen's Diamond Jubilee celebrations and as the host city for the Olympics this year, and am proud that Earls Court will be an integral part of the Olympics experience having been chosen as an official venue."

"I believe the future for Capco is positive, and look ahead to 2012 with optimism tempered by caution regarding the macroeconomic climate.

"We look forward to making further progress on realising London's most significant urban placemaking initiatives for many years at Earls Court and Seagrave Road.

"We are also confident of seeing further value creation at Covent Garden," he said.


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