Conygar profits hit by oil market dip

Conygar Investment Company, which is active on projects across North Wales, has posted a pre-tax loss of £2.1m in its interim results for the six months to March 2016.

Net asset value per share decreased to 201p from 203.2p in September 2015.

The publicly listed investor recorded a pre-tax profit of £4.1m in March 2015. The company attributed the fall in profits to a £2.4m drop in the value of investment properties in a difficult Aberdeen market, affected by the oil price collapse.

In the last six months Conygar sold three properties, including two in Aberdeen and one in Manor Park, Runcorn, for a collective £5.4m, £100,000 less than the assets were valued at in September 2015. Alongside nine properties sold last year, the disposals reduced Conygar’s net property income to £3.6m, compared to £5m in the same period last year, and dropped rent roll by £600,000.

Conygar’s development pipeline looked much stronger, led by its land holdings in North Wales. Recent acquisitions include the £3m purchase of a 203-acre brownfield site near Rhosgoch, Anglesey, formerly occupied by a Shell gas storage facility. Horizon Nuclear Power has identified the site as a potential location to house 4,000 temporary workers, and Conygar said discussions were ongoing for a facility to be built on its land.

In Colwyn Bay, earlier this month Conygar announced that it had let 60,000 sq ft of industrial space and 3.3-acres of storage land at Mochdre Commer Park, to Conwy County Council on a 35-year lease.

At Holyhead, Conygar and Stena Line have been working together since 2010 on plans for the £100m mixed-use redevelopment of the marina, including homes, offices and hotels. The project has experienced delays due to campaign group Waterfront Action Group submitting an application to protect part of the site as village green.

In its interim statement, Conygar said that “whilst we do not believe that there is any merit in the claim, we will be pushing for a positive decision which will put the matter beyond any further doubt. The application only covers a small part of our land and does not prevent us starting construction on the vast majority of the site.”

At Llandudno Junction, Conwy Council approved Conygar’s application for a 90,000 sq ft retail scheme, which is due to start on site this year.

Shares in Conygar this morning were down 2.50p to 156.5p.