Roadside Real Estate swings to full-year profit
By Josh White
Date: Tuesday 24 Dec 2024
(Sharecast News) - Roadside Real Estate reported a profit after tax of £43.2m in its final results on Tuesday, a significant swing from the prior year's £10.2m loss, largely driven by discontinued operations, including a £41m non-cash gain from the partial sale of Cambridge Sleep Sciences (CSS).
The AIM-traded firm said revenue from continuing operations rose to £0.4m, up from £0.1m, while the operating loss from those operations narrowed to £1.9m from £5.3m.
Basic earnings per share reached 30.26p, compared to a loss of 7p in the previous year.
The company ended the period with net assets per share of 22.87p, reversing prior year liabilities.
Roadside said it continued to build its portfolio of modern roadside properties during the 12 months ended 30 September, with Wellingborough and Maldon valued at £3.9m and £4.9m, respectively, generating annual contracted rents of £237,000 and £280,000.
Through its joint venture with Meadow Partners, Roadside acquired three sites during the year in Stoke, Gosport, and Coventry.
Post-year-end, the joint venture agreed to acquire 12 Lidl stores for £70m and the Brampton Hut services in Cambridgeshire for £4.8m.
The company completed its exit from non-core businesses, including selling 20% of CSS for £16m in two tranches.
Proceeds were used to fund operations and repay debt, leaving £0.6m in cash as of 23 December.
The remaining stake in CSS would be sold when conditions maximise shareholder value, the board explained.
CSS, now an associate investment, launched its smart pillow in the US in October, with production scaling to meet an order target of 25,000 units by March.
Roadside said it improved its liquidity by issuing a loan note and extending debt facilities.
As of 23 December, the company had £0.6m in cash and access to £7.5m in financing facilities, which would be available until March 2026.
"I am delighted with the significant progress we have made in realigning our business to focus on creating, managing and growing an exciting £250m portfolio of roadside real estate assets in desirable locations catering for local communities and businesses," said executive chairman Charles Dickson.
"Over the last 13 months the joint venture has committed £86m into real estate assets including the acquisition of 12 Lidl stores under a sale and leaseback agreement with Lidl.
"We are on target to deploy £250m by May 2026, and have a large pipeline of potential further acquisitions as we move into 2025."
Dickson said the company's wholly-owned commercial sites in Wellingborough and Maldon were now fully let, generating rental income and cash flow.
"During the period we sold 20% of Cambridge Sleep Sciences to CGV Ventures 1 for £16m, of which £8.5m of proceeds were received post year end, demonstrating the value of CSS and creating significant liquidity for the group.
"The remaining investment in CSS has been revalued resulting in a fair value gain of £41m for shareholders.
"This resulted in an exceptional, non cash accounting profit after tax of £43.2m in the year and a net asset position of £32.9m."
Charles Dickson noted that the firm also restructured its debt with the issue of a new £9m loan note and repayment of external and related party borrowings during the year, resulting in a reduction in borrowings of £1m, leaving the group with available liquidity of £8.1m.
"We look forward to updating our shareholders as we continue to make further progress."
At 1109 GMT, shares in Roadside Real Estate were down 1.96% at 30p.
Reporting by Josh White for Sharecast.com.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN