U And I Share Discussion Threads

[mad foetus] 05/6/2017 08:14

PCA is my only holding in this sector. I have held UAI and LXB before but I cannot shake the view that the returns are opaque, take years to materialise and can too easily be spun by the board for the purposes of awarding themselves bonuses. I aim to sell PCA over the summer. I am just not convinced the returns that can be made in the sector are reflected in shareholder returns.

[valhamos] 02/6/2017 15:17

James Bartholomew is still buying.

[asmodeus] 01/6/2017 21:56

Yes, I saw that, Horny, and all the other salaries seemed to me excessive. And huge numbers of Options awarded.And, o.k., call me old- fashioned, and say it's trivial, but I hate to see the picture in the report of the entire board wearing suits and no ties -and apparently not offering the lady non-exec a seat . (Page 58).Anyway, I'm virtually out.

[horndean eagle] 01/6/2017 19:30

Out of interest has anyone seen what the CEO took out as salary last year. Absolutely shocking he took out £1.7m. Confirms my long held view the company is run for the benefit of management.

[strathroyal] 01/6/2017 15:35

HP - Don't understand your above post. Dividends should be paid out of profits otherwise you end up with no shareholder funds.

[spob] 01/6/2017 12:27

yes i agree

[hugepants] 01/6/2017 12:06

But this is a regeneration company so surely profits will be lumpy? NAV reduced by £15.7M but they paid out £17.4M in dividends so that explains the drop in NAV. Current discount to NAV is 30% but this will increase to 36.5% by end of this year if the broker's are to be believed. Also a 12p special dividend forecast. I'm just focussing on the NAV and the dividends and whether the dividends are covered or not I don't really care at this discount. Also worth noting LTV reduced substantially.

[asmodeus] 30/5/2017 20:18

Well I'm 90% out, now. Just don't like the look of the package at all, but keeping a few to see if making a mistake - or proved right?

[jl9] 30/5/2017 16:47

Just bit my lip. Sorry.

[strathroyal] 30/5/2017 12:51

Asmodeus - Although I've recently bought back into these as there seems to be some momentum (continuing today)and the discount to NAV remains one of the highest on my watch list, I do agree with your comments.

In the full year report, shareholder funds reduced from £363M to £347M so I found it odd that they paid any level of special dividend. Add to that the small margins that they appear to make on their developments and it is difficult to understand the financial press enthusiasm.

[asmodeus] 30/5/2017 11:18

I have received the, to my mind, absurdly extravagant, inch-thick company report, and the impression given throughout the first two thirds or so is that everything is doing impressively well. But on reaching the statement on page 121 (no less) I see that the operating profit "before exceptional item", was £28,769 million in y/e 2016, but only £1,078 in y/e 2017. and that in fact over the year there was a loss after tax of £3,003 compared to a profit of £23,335 in the previous year.
Am I completely misunderstanding the attractions of this company, or its ability to transform its performance from now on?

[bluerunner] 30/5/2017 10:39

Breaking out?

[spectoacc] 25/5/2017 14:45

Holding recent gains & looking on perky side.

[speedsgh] 22/5/2017 08:51

GC - JR is talking about a 'prospective' div yield of 8%+. So that is the payments for the current FY i.e. core interim (2.40p) payable in Nov 17, the core final (3.50p) payable in Aug 18 plus the special payable in Jun 18. Trading gains are forecast to double in the current FY ending Feb 2018, hence expectations of a much larger special div payment in Jun 2018. Not sure what figures JR is using for his 8%+ estimate but note that UAI paid out 8.00p specials in FY15 & FY16.

P.S. From the IC extract in #836, "It values projects at cost until completion and is expecting development gains of £65m-£70m in the current year ending February 2017". This should read as year ending Feb 2018. Trading gains in FY17 were £35m (hence lower special) allegedly due to timing of completions.

From Final Results:
"£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"

[garycook] 22/5/2017 06:30

Just checking the declared dividends of UAI,and the reduction in this years Special, they come to a total of 8.7p which with the share price at 194p,gives a dividend yield of 4.48%.Where is John Rosier getting a dividend yield of over 8%,when the next dividend payment will be 2.4p to go with the 2.8p Special,and the Final at 3.50p ?

[speedsgh] 16/5/2017 16:18

Barclays Capital issues a broker note on U and I Group Plc -

Barclays Capital today reaffirms its overweight investment rating on U and I Group Plc (LON:UAI) and set its price target at 260p

[jhan66] 12/5/2017 15:47

Is that a typo error in the IC text?
I assume prices should be £1.77 & £1.87

[speedsgh] 12/5/2017 15:19

I see from John Rosier's latest IC column that has added UAI to his JIC portfolio...

Private investor's diary: a meaty performance -

I introduced a new holding to the portfolio. On 20 April I bought U&I Group at 277p before adding further to the position on 27 April at 287p. U&I Group, formerly Development Securities before its merger with Cathedral Group in 2014, describes itself as an owner and developer of property, with an emphasis on “specialist regeneration”. It operates in the middle ground with developments of between £50m and £100m; too small for many of its larger competitors but too large for individual investors. It targets returns on equity of two to five times over two to five years, with a maximum equity participation in any single development of £15m. The acquisition of Cathedral strengthened its skills in regeneration projects, where it often works hand in hand with local government or other public bodies. With the public partner often supplying the land, these projects are typically less capital intensive and generate higher returns on capital. I was attracted by its potential to unlock value over the next few years and by the valuation, which looks too cheap to me. It values projects at cost until completion and is expecting development gains of £65m-£70m in the current year ending February 2017, with visibility on a further £150m over the next three years from existing projects alone. The shares currently stand at a significant discount to NAV, about 35 per cent, and with special dividends, which it is paying as it realises development gains, the prospective dividend yield is forecast at somewhere over 8.0 per cent. I am up about 4.0 per cent so far which hopefully is just the start of some decent performance.

[speedsgh] 09/5/2017 12:19

Good spot, fizzypop. From recent results...

The Board has recommended the payment of a final dividend of 3.5 pence per share payable on 17 August 2017 to all shareholders on the register on 21 July 2017 bringing the total dividend for the financial year to 5.9 pence per share. In addition, we will pay a supplemental dividend of 2.8 pence per share on 16 June 2017 to all shareholders on the register on 12 May 2017. This will be the third supplemental dividend paid to shareholders in the past three years and underlines our confidence in continuing to generate strong cash flows from our development and trading activities.

[fizzypop] 09/5/2017 11:48

3.5p goes ex 20/7 not 10/7

hxxp://www.dividenddata.co.uk/ex-dividend-date-search.py?searchTerm=uai

[hedge fund harry] 06/5/2017 18:19

dividend timetable

2.8p supplemental (ex date 11/5/17)
3.5p final (ex date 10/07/17)
2.4p interim (ex date Oct 17)
12p forecast supplemental (ex date May 18)


More than 20p of dividends expected to go ex for holders over the next 12 months

[jimblack513] 04/5/2017 15:07

Investors Chronicle rated this share a buy in last week's magazine