Total
0
Shares
The development in Bentley, Perth. Source: Ultima United
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Shares in Ultima United (UUL) rocketed up 47.6 per cent, with the company voluntarily placed into a trading halt
  • The trading halt was requested in response to an ASX price enquiry and a pending announcement regarding its Hokkaido development in Japan
  • According to the company’s preliminary FY21 report, it recorded an operating loss of $317,016 for FY21, up from $268,038 FY20
  • Ultima currently has $2.9 million in cash and cash equivalents, up 2963 per cent, with net assets values at $3.97 million, up 257 per cent
  • Shares in UUL were up 47.6 per cent to 62 cents before being placed in a trading halt

After releasing its preliminary final year report, shares in Ultima United (UUL) rocketed up 47.6 per cent, with the company voluntarily placed into a trading halt pending an ASX price enquiry and announcement regarding its Japanese development.

According to the financial report, the company recorded an operating loss of $317,016 for FY21, up from $268,038 FY20 and revenue from ordinary activities of $254,394, down from $687,199.

The company had a working capital surplus of $3,539,109 in FY21, up from $2,710,196 in FY20.

In December, Ultima announced plans to acquire and develop three plots of land at TELLUS Villas (TVP), a 17-lot land tract totalling more than 34,000sqm in Niseko, a ski resort town in Hokkaido, Japan.

Infinity Capital Group Australia, a significant stakeholder in the company, owns TVP.

On May 14, 2021, the company received shareholder permission to raise up to $20,190,203 by issuing up to 33,650,338 fully paid ordinary shares in Ultima for the development, successfully raising the amount a month later.

Ultima intends to proceed with the acquisition of the three TVP plots of land and start construction as soon as possible.

Under Japanese legislation, the company is permitted to begin off-the-plan sales of the yet-to-be-completed villas and, as a result, will begin sales efforts as soon as possible.

Closer to home, the company owned property at 19 and 21 Tate Street in the Perth suburb of Bentley has been evaluated towards the feasibility of creating specific disability accommodation units for the Bentley Project under the National Disability Insurance Scheme.

As of January 2021, claimed proposals had been filed to the City of Canning for planning permission and were pending comment and approval.

In October, Ultima announced the signing of a master lease with Rhinox Property Management throughout the year for its 3 Oak Street Cannington property.

The master lease includes the 10 apartments at the site that were not sold the previous year. The leasing arrangement resulted in a 100 per cent increase in the company’s rental income.

The master lease does not affect the company’s plan to continue with the unit sales activities.

The lease arrangement, according to Ultima, enhances the marketability of the units by becoming high-yield lease apartments and maximises the existing value of the units by increasing rental yield.

Ultima currently has $2.9 million in cash and cash equivalents, up 2963 per cent, with net assets values at $3.97 million, up 257 per cent.

Shares in UUL were up 47.6 per cent to 62 cents before being placed in a trading halt.

UUL by the numbers
More From The Market Herald

" Ingenia Communities (ASX:INA) purchases portfolios for $441m

Ingenia Communities Group (INA) has acquired additional lifestyle community portfolios for $441 million.

" Home values rising at softest rate since January

Australian property values increased by 1.3 per cent over November, marking the 14th month in a row that CoreLogic’s national home value inde…

" SRG Global (ASX:SRG) secures projects valued at $70m

SRG Global (SRG) has secured two specialist façade contracts in Perth valued at approximately $70 million.
Ampol Limited,APL - Managing Director and CEO Matthew Halliday

" Ampol (ASX:APL) sells 20 retail sites for $48m in net proceeds

Ampol Limited (APL) has announced the sale of 20 core freehold convenience retail sites to Charter Hall Retail REIT (CQR)