Unite enjoys "highest ever" student intake in 2014

23rd Feb 2015 08:22

The student accommodation developer Unite increased its revenues and profits during the full-year thanks to a high student intake for the academic year of 2014/15.Despite struggling with growing demand for new accommodation, Unite enjoyed a 3.3% rise in like-for-like rental growth.Revenue increased to £108.5m from £101.6m. Profits also rose to £104.8m from £77.1m the year before, driving earnings per share to improve from 46p to 53.1p.The group increased its dividend by 65% to 11.2p driven by improved profits and a "highly visible growth trajectory". Chief executive Mark Allan said the payout ratio should continue to growth "significantly" in the coming year.However, cash and equivalents decreased to £41.4m from £43.2m.Allan said: "Market conditions remain supportive. Student numbers continue to grow steadily, interest rates are still low, development costs remain attractive and the investment market continues to strengthen."We are alert to the risks of rising interest rates, development cost inflation and the uncertainty of an impending General Election but are managing the business in a disciplined way and continue to look forward with confidence."Numis analysts said Unite is "in a sweet spot, with momentum in both the operational portfolio and developments". The broker gave a 'add' recommendation and revised its target price to 590p.Shares were down 0.57% to 521p on Monday at 08:35.