U And I Share Discussion Threads

[speedsgh] 19/12/2017 13:33

Yes, UAI (ex-DSC) seems perenially unloved by the market but there may well be a good reason for that. Not least the highly disappointing NAV growth. Will be interesting to see whether the share price is shown any love if they manage to meet their target of £65-70m of development/trading gains in the current FY ending 28 Feb 2018, which should lead to a substantial special dividend being paid to shareholders around June 2018.

[my retirement fund] 19/12/2017 12:39

This has not done a lot in the last few years. Investors must feel like they are running on a treadmill in the gym. Running to stand still that is. Very disappointing indeed.

[asmodeus] 11/12/2017 20:19

Well spotted, Sefton!

[bogdan branislov] 11/12/2017 19:36

Bogdan think that the profit banking post interim result, they come steady now and the company adamant that the guidance, it will be reached. The steady trickle of the impatient retails sellers that the institutions have been feeding off for the past year will be drying up now - impatient sellers would have gone by this point, also length of tight range exceptionally long. Soon we break out.

[hugepants] 05/12/2017 19:33

J O HAMBRO CAPITAL MANAGEMENT LIMITED increase to 11% from 10%

[bogdan branislov] 29/11/2017 11:49

Bogdan, contact U and I with following of questions. Answers were to me specifically but I think that it reasonable to copy this to you all. This be abridged a little as Bogdan discuss his specific size of holding in original e-mail. The Bogdan have some help with his grammar of English below:

Question:

Very happy with the progress at U and I, strategy very much in tune with government objectives and full of both innovation, creativity and plain common sense. Are U and I involved in direct consultation with government? The correlation between U and I strategy and revised government priority seems remarkably close.

Regarding the news flow from now until the year end. The back end weighting of the profit realisation did cause some concern to certain shareholders. Not to myself I might add as this real estate regeneration, not retail or manufacturing, profits flows will always be lumpy, in fact very smooth profit flows in real estate always make me suspicious. Also, U and I were very quick last year to inform shareholders once initial Brexit impacted profit flows for last year. When we will be updated as to when the back end profit realisations have been banked? Will we have to wait until the year end results in April, or will there be an announcement at year end in February confirming profits within the expected range, or will profit realisations be confirmed as we go with individual announcements?

Regards

Answer:

In answer to your questions – we do regularly speak to government and GLAs. Our public sector relationships are key and have helped us to become a partner of choice for many PPP schemes.

In terms of newsflow, hopefully the below explanation around our approach to RNS announcements will give some clarity. In truth, our approach is a mix of ‘science and art’ and as a company and a communications team we would see our objectives as: complying with the regulatory requirements but also sharing important news items that demonstrate our progress as a business and on specific projects. With that in mind, we would see announcements broadly falling into two categories.

Regulatory announcements – effectively news that is price sensitive. In respect of our business, we would consider price sensitive news as anything that impacts on the profit guidance that we’ve put out in the market or any other development that a reasonable investor would expect to know in making an investment decision. On a project level, we would view this as: reaching the milestone that delivers the profit; anything that materially alters our ability to achieve that profit. Slide 9 of our preliminary results presentation provides the breakdown of projects that an investor could expect to be updated on throughout the course of the year. Any milestone that is material to the delivery (or indeed delay) of these projects would be announced. In addition, if there are other projects outside of this list that deliver a profit or loss that we think is material in the context of the group, we would view this as material and would put out an RNS announcement.

Non-price sensitive announcements – In addition to the above, we would put out RNS announcements to keep investors up to date and informed of interesting updates relating to projects or corporate milestones which whilst not price sensitive, show a direction of travel or progress. This wouldn’t need to relate to a specific piece of guidance but we would deem worthwhile for an investor to consider and know about.
I hope this helps.

Bogdan very happy with this reply, i think we deal with the very straightforward and up front of company here.

[bluerunner] 28/11/2017 15:31

Thanks for the update, Doug.

[bogdan branislov] 28/11/2017 11:26

All look the good here. Big Phil's budget also not do any harm. Whilst Bogdan buy only on the fundamental, it is of interest to look at a 1 year chart showing close price only not intra day high and low just close prices. All within £1.80 and £2 since April, most in much tighter range than this - highly unusual when you look at long term several year of price chart, unusual for any of stock. Of course this coincide with and caused by institutional buying - over 60% of U and I stock held by ten institutions with at least 3% of total, must be several more with smaller of holding not shown on IC or Morningstar data. Institutions, they know that a decent U and I holding going to keep them in a job for at least the next 5 years, they will keep it in the range for long as the possible, to build into stock as cheap as possible, where they buy from you ask. Well in this days, private of investors have short holding threshold, many of so called long term private investor move on if not price gain after 6 to 12 of month, institutions sail behind them pick up the shares as private investors lose patience. Bogdan make his money by focus on the 'if' and not the 'when'. Get the 'if' right and the 'when' will take the care of itself. Focus on 'when' and you get in all of pickle, get the impatient and sell out and miss the beautiful of moments ahead. If the fundamentals be compelling, the stock will move when it be ready. Bogdan will add though, that the sheer of length of the tight of sideways move would suggest that the breakout, when it does happen, likely to be aggressive and sharp. And don't be in the hurry to take the profit. The PPP revenue added to the asset based earnings combined after 2020 likely to take us to average, albeit lumpy - this is real estate you know not retail or the manufacturing - PE ratio of around 2 to 3. If the U and I can a little more than double by 2019, then Bogdan should hit his target of 25x SIPP fund growth within 10 years without any additional of funds paid in, now that would be something, Bogdan not messing around here!

[speedsgh] 17/11/2017 12:47

Aberforth Partners LLP have increased their holding by 1.3m+ shares since their previous announcement on 15/9 to take their total holding over the 11% threshold...

Holding(s) in Company -

[rathkum] 15/11/2017 16:50

2 great stocks for under £5

Rupert Hargreaves | Wednesday, 15th November, 2017 | More on: HLCL UAI
Image: Helical: Fair use

Property investment and development company Helical (LSE: HLCL) has spent the last year restructuring its portfolio towards higher quality assets, and it looks as if this is starting to pay off for the firm.

Since April the company has sold £315m of investment assets at prices in the aggregate of 2.5% above book value. These disposals have funded reinvestment activities as well as debt reduction.

Net borrowings have fallen by £236m, substantially reducing the firm’s loan ratio from 55%, at 31 March 2016, to today’s pro-forma ratio of 43%. This debt reduction will be good news to shareholders as Helical’s high level of debt has historically been a major criticism of the group and its investment case.

Now management is focusing on generating the most income from the firm’s portfolio. Within Helical’s results for the six months to 30 September published today, CEO Gerald Kaye said: “With our portfolio of high-quality London and Manchester offices and higher-yielding logistics properties, we now look forward to increasing our income stream from the current contracted rents of £45m towards the portfolio’s ERV of £65m as completed office space is made available to potential tenants in the next 12 months.”
Set to push higher

This realisation of the company’s full potential could, in my opinion, drive a re-rating of the shares.

At the end of September, its net asset value per share was 465p, 51% above the current price. Over the past 12 months, the share price has gained 20% as the restructuring has unfolded and investors have bought into the growth story.

Shares in the real estate business are changing hands for less than £5 at £3.08 today. This low share price is not an indicator of value, but the vast discount to net asset value is. As well as this enormous discount, the shares support a dividend yield of 3%.

Helical is not the only UK property company trading at a discount to net asset value. U and I Group (LSE: UAI) is another deeply discounted income stock.
Double-digit returns

U and I is a property regeneration company. Profits are lumpy, and the business is dependent on debt to get projects off the ground. However, these factors should not detract from the investment proposition.

Management is targeting a 12% post-tax total annual return from property development profits and dividend income. So far this year, the company has generated development and trading gains of £6.7m taking the level of gains delivered since the start of the financial year to £16.1m, against a full-year target of £65m to £70m as legacy projects are divested.

For the six months ended 31 August, U and I’s net asset value per share was reported at 269p, 42% above the current price of 190p.

As well as this deep discount, City analysts are expecting the firm to distribute all excess earnings to investors for the fiscal year ending 28 February 2018. A dividend payout of 17.9p per share is projected, giving a potential dividend yield of 9.3%. The payout is expected to fall back slightly next year, but the yield is expected to remain at an attractive 6.2%.
Top income stocks

Property stocks like Helical and U and I are great defensive income plays, highly suitable for any portfolio.

Indeed, income stocks should always form a significant component of your portfolio as research has shown that over the long term, dividends can account for 50% of investment gains.

[bogdan branislov] 03/11/2017 17:08

Ok, it get the interesting now. Next stop close above the £2.00. And if it not happen this time and retreat into range for the while, what then Bog? You wait of course, take the 2 to 3 year of view here, but gains likely much the sooner than that - you need the patience you the bunch of twitchy fingered the retail of investor. Bogdan

[bogdan branislov] 02/11/2017 13:39

Sorry Bog misplace the decimal - make that the £1.90 and £2.0025

[bogdan branislov] 02/11/2017 13:33

Bogdan here. The Bog, he may be the premature here, but we test the top of the range again and the shape for the breakout. U and I not close, stress closing of price, above £1.90 since early August 17, and we not the close above £200.25 since April of the 2016. The close above the £190 interesting when it happen, above £200 very interesting. 'Why, Bog you no tech analyst?' this the true for sure for sure, but, above £200 mean that the accumulating of institutions give up trying to keep u and I price in the range, accept no longer possible, restrained of buying phase then over, many the stock watcher and stock accumulator of U and I, buy much harder and faster once low of price accumulation of phase over. Break out imminent the Bog suspect.

[asmodeus] 01/11/2017 10:44

Bogdan - him filtered by Asmo.

[bogdan branislov] 31/10/2017 09:33

Running Blue - Bog also think that BOE decision of the interest rate hold off buying in the real estate sector general. This be where market participants be the morons in Bog view as small rate rise now, it be imperative, it have no impact on economy or market from initital rise. Also, there be budget. Sajid Javed make his the point clear. Also, the William of Hague - he write article yesterday, he say that infrastructure spend must increase and housing spend - he say law changes for councils to offload land, this would equate to the more of PPP and he also say that law must quickly change to allow small micro of apartment, well the U and I right at the forefront of those ideas. U and I be the stand out, but the Van Elle and the Harworth, you like those too - yes? Bogdan

[bogdan branislov] 30/10/2017 12:06

Sorry the asmodeus - Bog latest post not show on his the screen. Bog he work on English write at the night of class - bear with the Bog, he the try to keep it the brief. Another Catalyst be the range - 10% for the near 6 of month. Very the unusual, clear that this be the institution buy in, mainly from impatient of retail of investor. unusual for institution to load like the this. they always watch the downside of risk, rare in their eye to see big upside of potential with very low downside of risk as they the know 5% to 10% of holding not unload easy in down trend so they be the confident in their exposure. IC only the show insitutions with 3% or the more, their be many the other build on less than the this. Once price move out of the range to above £2, the institutions with smaller holding, which probably be the many and the growing, will top up more aggressive for the reason obvious, no thepoint in they buy slow any more after the break out, this be why the break out will be the very strong when come eventual. This not be tech case, Bog not make tech of case, just value of growth, but it explain why skill of institutional of buyer have manage to keep U and I in range for so the long. When price move come, not many share available then. Bogdan

[asmodeus] 30/10/2017 11:19

Well Zambeef steak is certainly off my menu Bog. But I'm afraid I no longer have the time to translate posts of this length so, for this reason, one more and "I'm out".

[bogdan branislov] 30/10/2017 11:09

Running Blue. Bog he reply but no the show as of the yet, may come up in the time. Look at IC record on institutional of holding. 3 have 10% or the more, but Morningstar data which bog of believe the more of up to the date, it show the standard of life coming in on the blind of side - up to the almost 7% of now, Bog think that this may be the legend of the Harry of the Nimmo buy for his the SL small of the cap of the fund. Bog

[bluerunner] 29/10/2017 16:41

Many thanks for the update, Doug!What do you think might be the catalyst for significant share price movement here? The next set if results?

[bogdan branislov] 25/10/2017 10:35

Bogdan, he read the U and I Group web of site post follow the half year announce. Bogdan, he have the no of difficulty whatsoever in see how dependable of real of estate developer can deliver the realisations back of end when that what they orginal said they would the do - read and enjoy, Bogdan he going to make the packet here - read for your good of selves:

'Can you be both full steam ahead and steady as she goes? I don’t know but that is rather how it feels announcing our interim results this last week. It may be that it is because we are a business that has often delivered the bulk of its profits in the second half, so the piles of new pound coins are yet to stack up in the office, but we have achieved much to underpin this value in the first half, giving us confidence that we will hit our full year target.

What do those targets look like? We expect we will deliver development and trading gains of £65-£70 million, capital growth within our investment portfolio of around £5 million and further efficiency gains across our business to the tune of £2 million.

We will get there by sticking to our strategy and building on what we do best: securing land well, particularly by being a PPP partner of choice; creating both financial and socio-economic value exceptional value through our expertise in the planning process; and having several different ways of realising value: a balance of land and investment sales, longer-term development and specialist platforms allowing for further growth.

Looking at how we are delivering on our strategy, we are on track to deliver our targets.

We have delivered £9.4 million of development and trading gains in the year to date with further gains to follow from a number of projects. Importantly, we have already reached important milestones on several of these projects that build value. We have secured 2 major planning consents at Preston Barracks and Blackhorse Road. We have signed heads of terms with a funder at our designer outlet village development in Cannock; we have 100% of 12 Hammersmith Grove either let or under offer. Part of our strategy has been to focus on fewer and larger projects; that is what we have done. We are confident that we will crystallise the value in these major regeneration projects in the second half of the year.

We have made strong progress to reposition our investment portfolio to enhance returns with £22.5m of disposals made in the year to date, all above book value and over £1.5m of value created by our asset management initiatives.

We have also delivered efficiency gains of £1.3m in the first half which makes me confident we will deliver £2m in total for the full year.

With these strong results and what we know we have coming down the line, I genuinely believe that the transformation of this business is gathering real pace, with this year’s gains being the catalyst for real and lasting benefits for shareholders.'

[bogdan branislov] 23/10/2017 13:02

Bogdan have another of important point. Publication of the investors do not fully the appreciate the buy of case for the U and I. For share price to reach forecast of TBV for the Feb 2018 that be a c60% of increase. The 39% discount that often be quoted uses the TBV as the bottom of line denominator - but this not be the point. Also, given the adding of value you might say 1.5 times of the TBV be fair value, that be c135% of rise in price - but if you think that be of fair value based on the current of position of today you be the wrong again - 'how can this be Bogdan, you lose of your mind' not so, listen and the learn children listen and the learn! Apply hard as this be the key of point that Bogdan certain that most, even the u and I investor committed, graspeth the not. Last of full year, the CEO, he talk of capital of light specialist platforms, he talk of balance of PPP and trading projects. 'So Mr Bogdan what be the significant here?' Well, the U and the I be treated as the play of asset and the Bogdan agree if you the limit U and I to the play of the asset then still probable of best bargain in market. But, the wait for it, the PPP projects, which in the case the most, U and I do not hold the asset, that be the capital of light project, they development of partner, yet this pipeline of the PPP has GDV of £1.5 Billion alone and the growing and, now, the wait for it! will generate profits of the £90M pa from around the 2020 alone he say, so the PPP non asset of base projects will generate a PE ratio return of the 3 on their the own, on top of this you have all of the asset based of gains - it like 2 of the separate of the business, each with the likelihood on their the own to the triple in the value, but you the only paying for the one. Most of the analyst and the investor just the talk of the discount to TBV position - the compelling in itself, but the stalking of horse is the monster of earnings from the PPP nothing the to do with base of asset from the PPP of project. Bogdan not sure many fully of the get of this point let me the know if you do. Bog