Intu loses £2bn with "lowest level of transactions since 1993"

A retail centre chain has reported that it saw a 9.1 per cent revenue drop and made a £2bn loss in 2019.

Intu, which has centres across the country, said that the loss was predominantly due to a 23 per cent property value deficit.

It added that consumer confidence had been weakened by political and economic uncertainty in the UK.

It said that this had also impacted the investment market where 2019 saw the “lowest level of shopping centre transactions since 1993”.

In the report, the company addressed its plans to tackle the loss, saying that fixing its balance sheet is its top priority - but adding that it may have to turn to alternative capital structures and further disposals to provide liquidity.

It also said that its footfall had been broadly unaffected by the COVID-19 outbreak in the first ten weeks of 2020, but that it is monitoring the situation.

Matthew Roberts, chief executive of intu, commented: “In the year, we made a loss of £2.0bn, predominantly due to a property value deficit of 23 per cent, which is now 33 per cent down from the peak in December 2017.

“This results in our debt to assets ratio increasing to 65 per cent (adjusted for the Spanish disposals), highlighting the importance of fixing the balance sheet in our strategy.

“Although we were unable to proceed with an equity raise, we have a range of options including alternative capital structures and asset disposals.

“As the role of the store changes, then the relationship with our retail customers will change too.

“The transformation of centres is nothing new but the speed of change is increasing. Our view is that the best locations will deliver theatre and world class service, maximising footfall and increasing dwell time.”

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