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Capital & Counties H1 loss widens on lockdown hit

By Iain Gilbert

Date: Wednesday 12 Aug 2020

Capital & Counties H1 loss widens on lockdown hit

(Sharecast News) - Property group Capital & Counties posted said on Wednesday that first-half losses had widened as net rental income and property values slumped as a result of the UK government's lockdown measures.
For the six months ended 30 June, C&C said pre-tax losses had widened more than 5,000% to £441.1m as revenue slipped 4.99% to £38.1m.

Net rental income dropped 41% to £18m, while property values fell 16.3% to £2.3bn, reflecting weakness in its retail, leisure and food and beverage portfolio as a result of the Covid-19 pandemic.

Net debt soared 63% to £721m.

C&C said "many challenges" remained as a result of the "unpredictable economic environment" stemming from Covid-19 and Brexit but added that it was "confident" of the firm's long-term prospects in London's West End and the value of its "unique investments".

The FTSE 250-listed firm added that it had taken advantage of a "unique opportunity" to acquire a "significant" 26.3% stake in Shaftesbury, a move it stated was consistent with its strategy to invest in complementary opportunities on or near Covent Garden.

Chief executive Ian Hawksworth said: "Covent Garden is a major central London destination offering a pedestrianised open-air environment.

"Our strong financial position has enabled us to take early action to support our customers through this extraordinary period and take advantage of market opportunities."

As of 0900 BST, C&C shares were down 4.26% at 135.0p.

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