The Capital & Regional (LSE: CAL) share price has struggled for traction on enduring fears over Covid-19 and its effect on British retail. The shopping centre operator has fallen 20% in value during the past 12 months. But the UK property share sprung 4% higher on Friday thanks to a positive reception to fresh trading details.
Capital & Regional — which owns retail and leisure properties predominantly in London and the South East — said that 99% of its retailers are trading again following the easing of coronavirus restrictions. It commented that “footfall has been robust and many of our retailers are reporting strong sales and consumer engagement.”
The small-cap is also witnessing improved momentum in leasing and rent collections. It has received 70% of 2021 rents due to date and has agreed outline deals with a number of occupiers for additional collections. Furthermore, Capital & Regional’s collection figure for last year has climbed to 84%.
Meanwhile occupancy stands at 89%, the UK share said, though this excludes three empty units previously occupied by Debenhams. The firm is in discussions with suitors over taking on the space vacated by the failed department store chain.
Capital & Regional added that “with confidence returning and light finally appearing at the end of the tunnel, discussions with our banks have been progressing well.” The business has agreed waivers on all of its properties until October with the exception of The Mall in Luton. Here the company is seeking a covenant waiver beyond July.
Another UK share moving through the gears
News emerging from Marshall Motor Holdings (LSE: MMH) on Friday was also extremely positive. In fact, latest trading details from the UK retail share propelled the share price to fresh five-year highs of 200p. Marshall Motors shares are now 60% more expensive than they were this time last year.
In an unscheduled update, the AIM company lifted its forecasts for the first half and for the full year. It said that “the market has continued to benefit from positive tailwinds, including a recent unprecedented used vehicle value appreciation and favourable demand-to-supply conditions for both new and used vehicles”. Marshall Motors added that its “strong outperformance” of the broader auto market has continued as well.
As a consequence the retailer expects to report “exceptionally strong” profit and cash generation for the six months to June.
Marshall Motors warned that there are high levels of uncertainty for the second half of 2020, however. It said that a shortage of new vehicles due to a global semiconductor drought, a realignment of pre-owned car prices, and the ongoing public health emergency could all dent performance.
The UK share said that these issues create a wide range of possible outcomes for its full-year results. But it added that underlying profit before tax should be “significantly ahead” of market expectations as well as well above current records.
