New Frontier interim results February 2018
Rental income for the interim period decreased to GBP9 million (GBP10.3 million). Profit for the period was down to GBP2.8 million (GBP5.6 million). In addition, headline earnings per share was lower at GBP1.8 pence per share (GBP3.7 pence per share).
The company's dividend policy is to consider declarations of dividends on a six-monthly basis in line with its year-end and half-year which are August and February respectively. The board is pleased to announce that a dividend of GBP3 pence per share (approximately GBP4.83 million) has been declared for the period under review. An announcement, containing details of this dividend, will be made on the Stock Exchange News Service of the JSE as well as the website of the SEM and will be issued separately.
The company continues to actively manage its assets in a challenging retail environment, caused in part by a weaker sterling due to the uncertainty caused by the vote to leave the European Union, a fall in consumer confidence and rising interest rates impacting consumer spending. However, the Company has not been immune from the spate of Company Voluntary Arrangements ("CVAs") which have affected UK retail. Our tenants New Look, Select and Prezzo have reduced rents with New Look closing their second store in Burton upon Trent after only opening it last year. The impact of the CVAs for this financial year will be GBP450 000 prior to the proactive leasing of the affected unit (which is already underway and will further mitigate the potential rental impact). The resultant CVAs and tenant defaults will most likely adversely impact our business in the next six months.