Capco reports FY16 pre-tax loss of 240.3 mn pounds

In its preliminary results announcement, Capital & Counties Properties, known as Capco said that its fiscal 2016 loss before tax was 240.3 million pounds (300 million dollars) against last year's profit of 459.9 million pounds (574 million dollars). The company said, loss per share stood at 14 pence, compared to profit of 50.9 pence last year. Revenue rose to 127.4 million pounds (159 million dollars) against 114.9 million pounds (143 million dollars) a year ago.

Commenting on the company’s performance, Ian Durant, Chairman of Capco, said in a statement, “Capco has delivered good progress in 2016 with considerable activity and milestones achieved at both Covent Garden and Earls Court. Despite macro-economic uncertainty, London is one of the great cities of the world; desirable as a retail destination and residential location. We are confident in the strength of our two prime London assets and are well positioned to deliver long-term value creation for our shareholders.”

Financial highlights of fiscal 2016

Underlying profit before tax was 14.2 million pounds (17 million dollars), compared to 4.8 million pounds (5.9 million dollars) last year. Total net rental income grew 8.7 percent to 81.5 million pounds from 74.9 million pounds last year.

Equity attributable to owners of the Parent was 2.8 billion pounds (3.4 billion dollars) compared to 2.9 billion pounds (3.6 billion dollars) in 2015. EPRA NAV of 340 pence per share, decreased 5.9 percent. Total property value of 3.7 billion pounds (4.6 billion dollars), decreased 4.4 percent like-for-like. The company has proposed a final 2016 dividend of 1 pence per share providing a full-year dividend of 1.5 pence per share.

“Capco has made significant progress at its two central London estates during 2016. The strong demand for central London retail has continued in 2017 and Covent Garden has had a positive start to the year. We have increased the ERV target to 125 million pounds (155 million dollars) by December 2020, reflecting the positive prospects of the estate. Capco remains focused on its strategy to deliver long-term value creation from its two unique central London estates,” added Ian Hawksworth, Chief Executive of Capco.

Covent Garden attracts new retailers

Providing over 1.1 million sq. ft. of rental space in the heart of London’s West End, the Covent Garden estate represents 61 percent of Capco’s portfolio by value. The company said, 2016 was another year of significant progress for Covent Garden as the business continued to implement its leasing and investment strategy. The value of the estate increased by 6.4 percent on a like-for-like basis to 2.3 billion pounds and ERV of 96 million pounds (119 million dollars) improved 7.9 percent on a like-for-like basis.

Capco has transformed the Royal Opera House Arcade through its strategy of a luxury accessories and gifting focus. The Watch Gallery, the UK’s leading independent luxury watch retailer, and British lifestyle brand, Mulberry opened stores in the property this year along with latest entrants luxury British cashmere brand N.Peal and British eyewear brand, Tom Davies, which are due to open later in 2017. A number of premium beauty brands also rented space in the Market Building, including the luxury beauty boutique Tom Ford, fragrance brand Atelier Cologne, the first Armani Box London store and the beauty company Deciem. These new signings in the Market Building add to the existing strong line up of Chanel, Dior, NARS and Charlotte Tilbury.

The company said, Henrietta Street too continues to strengthen its retail offer, following an array of new signings including luxury men’s shoe brand, Cheaney and Parisian outerwear clothing concept K-Way.

Picture:Facebook/Covent Garden London