Our Strategy

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