Town Centre Securities PLC COVID-19 Update and Interim Dividend Confirmation (7436O)
03 June 2020 - 4:00PM
UK Regulatory
TIDMTOWN
RNS Number : 7436O
Town Centre Securities PLC
03 June 2020
3 June 2020
Town Centre Securities PLC
('The Company' or 'TCS')
COVID-19 Update and Interim Dividend Confirmation
Town Centre Securities Plc today provides an update on the
impact of COVID-19 on its business and confirmation of its
intentions with regards to the declared interim dividend.
COVID-19 Update:
-- For the cumulative rent payments that have fallen due since
the outbreak of COVID-19, of the GBP6.6m rent and service charge
billed we have collected GBP5.0m or 75%, with a further GBP0.7m (or
11% of payments) that we have agreed to defer, totalling GBP5.7m or
86% of the amounts due
-- Of the GBP0.9m remaining (out of GBP6.6m):
o We have agreed certain concessions over GBP0.3m of this
outstanding amount, in return for an improvement in the terms or
length of the lease
o Of the balance of GBP0.6m, we continue to attempt to come to a
fair and equitable conclusion with the respective tenants
-- As previously disclosed, our CitiPark car parking business
has been hardest hit so far, experiencing a material reduction in
income. Despite detailed cost cutting measures including the
temporary closure of seven branches, the impact of fixed costs such
as rents and rates will result in a significant reduction in
profitability
Over a third of our retail and leisure portfolio, which makes up
just less than half of the asset base, is currently open and
trading. At the Merrion Centre this continues to increase and now
stands at approximately 43%. We are now making detailed plans in
order to be ready to open all of our locations from the 15(th)
June, in line with government guidelines.
Dividend update:
-- The Board has decided to continue with its payment of the
previously announced 3.25p per share interim dividend at a total
cost of GBP1.7m, payable on 26 June 2020 to shareholders registered
on 29 May 2020
-- This decision is based on a review of cashflow forecasts and
various operating scenarios and also recognises the fact that this
dividend relates to the six month period ended 31 December 2019
-- Clearly, significant uncertainty remains around the level of
rent receipts for the next quarter, payable at the end of June, and
the rate of recovery in the car park business, which will be
crucial in determining future financial performance
-- The decision regarding payment of any final dividend, which,
if paid, is expected to be substantially lower than in the prior
years due to the effect of the crisis, will be considered as part
of the announcement of the full year results in September, but we
may choose to defer the decision beyond that date in order to know
the outcome of the September and October quarter rent payments and
the rate of improvement in the CitiPark business
-- As previously stated, it remains too early to quantify the
on-going impact of COVID-19 on the business and as a result, all
previous guidance on performance remains suspended at this time
Edward Ziff, Chairman and Chief Executive commented:
"I am pleased with the progress made in rent collections during
this period of disruption, although we have experienced a wide
range of responses from tenants. These continue to be unprecedented
times and we are working tirelessly to support all of our
stakeholders whilst remaining in close dialogue with tenants.
"We are doing everything possible to manage TCS through this
challenging period with the long-term sustainability of the
business being our primary aim and focus, recognising that we are
now operating in an uncertain environment which will impact our
current and future financial performance. However, we are proud of
our dividend history and believe strongly that it is both
appropriate and responsible to pay the declared interim dividend
for the period ended 31 December 2019."
-Ends-
For further information, please contact:
Town Centre Securities PLC www.tcs-plc.co.uk / @TCS PLC
Edward Ziff, Chairman and Chief Executive 0113 222 1234
Mark Dilley, Group Finance Director
MHP Communications 07734 769 359
Reg Hoare / Alistair de Kare-Silver / Florence Mayo
tcs@mhpc.com
Notes to Editors:
Town Centre Securities PLC (TCS) is a Leeds, Manchester, Glasgow
and London based property investment and car parking operator with
assets of over GBP394m. With 60 years' experience, a commitment to
sustainable development and a reputation for quality and
innovation, TCS create mixed use developments close to transport
hubs in major cities across the UK. Their current portfolio
delivers an annual income of more than GBP31m.
For more information visit www.tcs-plc.co.uk
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END
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