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Quintain confident as losses shrink and NAV slide slows

City A.M. Reporter
PROPERTY developer Quintain Estates yesterday posted a 1.5 per cent annual fall in the value of its assets, narrowed its losses and said it was in a better financial position to proceed with its growth plans.

Quintain said adjusted diluted net asset value (NAV) per share at the end of March fell to 133p, from 135p a year ago, and the loss before tax reduced to £10.1m for the 12 months, against the previous loss of £129.1m.

“Whilst the continued uncertainty in the markets will no doubt present challenges, the business is now in a significantly stronger shape and we anticipate a year of real progress,” William Rucker, chairman of Quintain, said in a statement.

The company, which specialises in redeveloping towns and cities across Britain, announced in January a three-year plan to make £133.5m in acquisitions and to grow its fund management arm.

Quintain did not propose a final dividend, in line with the previous year, and is currently deferring payment of dividends until the business becomes cash positive again, it said.

Quintain said its rights issue completed in December raised £183.1m, helping reduce its gearing to 46 per cent at the end of March from 105 per cent a year ago, and leaving it with £248m of undrawn committed corporate facilities.

Chief executive Adrian Wyatt said: “Although the UK may well be facing a period of slow economic growth, or even decline, this should not impede reaching our primary target of being recurring casfhlow-positive.”