Urban&Civic PLC happy to accept Wellcome Trust bid after tough year

Urban&Civic PLC () has posted a loss and decline in assets under management ahead of its takeover by Wellcome Trust.

The charitable group made a 345p per share cash offer for the firm on November 6, which was recommended by the board of U&C.

In a statement accompanying results to the year to end September 2020, the south-east focused land-for-building specialist said adverse property revaluations accounted for more than half of its £8.1mln loss over the year (2019:£16.3mln profit).

The remainder of the loss reflected delayed receipts arising principally from the lack of new house sales on plots under licence during the initial lockdown, the group said.

Trends are now moving upward, it added, with reservations in the fourth quarter from July to September approximately 29% above pre lockdown levels in January through March.

U&C chief executive Nigel Hugill warned, however, that the coronavirus pandemic is causing timelines on the adoption of revised Local Plans to be put back.

“It may also be that the level of future housing requirements becomes reappraised or, at least, deprioritised for a while,” he said in the results statement.

“Set in that context, the Board believes that the acquisition by Wellcome provides a persuasive outcome for all stakeholders,” Hugill added.

U&C’s net asset value in the year just ended fell by 4.5% to 324.3p, while the group is not recommending a dividend in light of the bid by Wellcome.