18th Dec 2019 11:06
(Alliance News) - Caledonian Trust PLC on Wednesday reported a sharp rise in net assets over the 12 months to the end of June.
At June 30, the property investor and developer's NAV per share stood at 203.70 pence each, 9.4% higher than the 186.2p recorded at the same point a year earlier.
Caledonian's net assets grew 9.6% over the 12-month period to GBP24.0 million from GBP21.9 million.
The trust did not recommend a dividend during financial 2019, same as the year before, but said it plans to restore its dividend when profitability allows.
In the year to June 30, Caledonian recorded a pretax profit of GBP2.1 million, down 28% year on year from GBP2.9 million. Total revenue slipped 4.1% to GBP881,000 from GBP921,000.
Revenue from development property sales fell 13% to GBP440,000 but rental income from investment properties grew 6.0% to GBP441,000.
Chair Douglas Lowe said: "The group's property investment business is changing as a result of the contingent sale of St Margaret's House, our investment property held for development, but the rate of change has slowed due to the extended time now required to gain planning consent for which the reserved matters application was lodged by Drum Property Group, the contingent purchaser on September 23.
"We continue to hold two high yielding retail parades, and our North Castle Street office and four central Edinburgh garage investments."
He added: "The group's strategy is to develop its sites in the profitable Edinburgh housing market as soon as practicable. Although St Margaret's holds a current PPP for the proposed use the planning process, which is likely to have cost the contingent purchaser over GBP0500,000, involves considerable work and takes many months to complete and the sale was conditional on the primary conditions being purified by August 2019.
"Unfortunately, this timetable proved impracticable and has been extended until August 2020. The directors expectations remain that completion of the proposed disposal will take place by May 2021."
Shares in the trust were 7.3% higher in London on Wednesday at 185.00 pence each.
By Paul McGowan; [email protected]
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