Hammerson profits nosedive 80% as it unveils plan addressing shareholder anger

ELIAS JAHSHAN | July 24, 2018

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Hammerson is cutting down the size of its board and selling off its retail parks as part of the shopping centre giant’s new strategic plan in a bid to pacify angry shareholders.The Birmingham Bullring operator made the announcement alongside its half year results, which showed pre-tax profit plunging 80 per cent to £55.8 million over the six months to June 30.Revenue for the period was also down from £160.1 million to £152.5 million. As part of its new strategic plan, Hammerson said it would reduce the number of executive directors from four to two, as well as set a disposal target of £1.1 billion by the end of 2019. It has already reached £300 million in disposals this year and has increased its overall target for 2018 to £600 million. It will also aim to diversify the geography of its property holdings, with non-UK retail exposure set to increase by around 10 per cent. Additionally, Hammerson is launching a share buyback programme worth £300 million, as well as aim to cut costs by around £7 million per year. As part of the board reduction, chief investment officer Peter Cole and executive director Jean-Philippe Mouton will both step down from the board at the end of the year.

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