Industrials is Stenprop’s UK multi-let industrial operating platform. Visit site

Our Strategy

Although our primary focus at present is to manage our business through the COVID-19 period, our overriding medium to longer-term objective remains to deliver sustainable and growing income to our shareholders. Our intention is to become a 100% focused UK MLI business over the next two years

Our Strategic Priorities

Multi-let Industrial Platform

Strategic goals set for FY20

  • Invest further into evolving our operating platform

Performance over the past year

  • Customer engagement strategy rolled out with four regionally-based CEMs employed
  • New CRM platform launched to aggregate all online, physical and telephone enquiries
  • Smart Lease rolled out on all smaller lettings resulting in significantly shorter vacancy periods and lower costs
  • Extensive evolution of our digital marketing platform and direct leasing capabilities

Priorities for FY21

  • To become the leading operator of UK purpose-built MLI assets by continuing to invest in a technologyenabled MLI operating platform
  • Derive greater efficiencies and create additional revenue streams by offering existing customers a range of additional products and services
  • Manage the Company’s assets more efficiently and scale up the portfolio with marginal incremental cost

Capital Management-proactively managing liquidity levels, debt and cashflows

Strategic goals set for FY20

  • Utilise proceeds from sales to reduce overall leverage to no more than 40%

Performance over the past year

  • Part of proceeds used to reduce leverage to targeted level of 40%
  • As a result of Brexit and COVID-19, we held greater cash balances for longer
  • Free cash is approximately £60 million (after payment of the final dividend of c. £9.6 million), part of which will be held to manage the Company through the COVID-19 crisis

Priorities for FY21

  • Maintain adequate cash reserves and manage cashflows through the COVID-19 period
  • Maintain gearing at no more than 40% LTV levels excluding unrestricted cash
  • Keep in close contact with lenders and monitor covenants continuously
  • Be ready to start deploying surplus cash for MLI acquisitions as soon as commercially sensible

Recycling of assests - selling and buying

Strategic goals set for FY20

  • Dispose of £140 million of non-MLI properties
  • Acquire £95 million of MLI estates taking total MLI component to more than 60% of our overall portfolio

Performance over the past year

  • All targeted disposals achieved. The total sale prices achieved were ahead of total valuations
  • A total of £38.8 million was spent on acquisitions resulting in the portfolio being 58% MLI, slightly less than hoped for as a result of Brexit and COVID-19

Priorities for FY21

  • Goal to become 100% focused UK MLI business over the next two years
  • Accelerate the sale of the German assets of the Group
  • Resume the MLI acquisition programme with a targeted £25 million of additional MLI acquisitions per quarter as soon as possible following the end of the COVID-19 lockdown

Managing our business through the COVID-19 crisis

Priorities for FY21

  • Maintain a strong balance sheet through the crisis. Free cash is approximately £60 million (after payment of final dividend of c. £9.6 million)
  • Maintain direct and regular communication with all customers across the country through on-the-ground customer engagement managers and asset managers
  • Utilise cloud-based customer relationship management tools to log calls and build up comprehensive customer data, to enable us to roll out bespoke and appropriate solutions
  • Implement agreed changes to leases and have them executed digitally using our online leasing strategy
  • Market more flexible lease offers and accommodate tenants needing short term space
  • Monitor cashflows and liquidity needs with a view to balancing holding surplus cash, against judicious deployment into MLI acquisitions
  • Maintain ongoing communication with all staff working from home with particular focus on their wellbeing, safety and ability to work effectively and collaboratively within their teams and with other counterparties

See page 20-21 of the Annual Report for more information on Strategy.

Annual Report 2020

  

Latest Results

Our Vision

“To be the leading UK multi-let industrial business”