23rd Dec 2016 10:53
LONDON (Alliance News) - Property investment company Caledonian Trust PLC reported a reduced profit for its most recent financial year, but said it may resume work on postponed projects in an improving market.
Caledonian reported a pretax profit of GBP105,000 for its financial year ended June 30, down from GBP565,000 the prior financial year.
The trust's net asset value per share stood at 152.88 pence at June 30, compared to 151.99p at the same date in 2015.
The trust did not recommend a final dividend, but said it will restore dividends "when profitability and consideration for other opportunities and obligations permit".
Caledonian Trust said its investment business remains "virtually unchanged", with resources engaged in property development rather than acquisitions. Poor market conditions through 2015 and 2016 delayed larger schemes, but the company said it will expand its activity in improving markets.
"We will continue to invest in projects that require long-term planning work, but on a reduced scale. We will emphasise the completion and realisation of previously postponed development opportunities which can be built and marketed shortly, provided market conditions allow. We will seek to develop our major sites with the necessary consents and, for the largest projects, continue our analysis of innovative financial methods and joint ventures as appropriate," said Douglas Lowe, chairman of Caledonian Trust.
"While we do require a stable and liquid housing market, we do not depend on a recovery in prices for the successful development of most of our sites, as almost all of these sites were purchased unconditionally, ie without planning permission, for prices not far above their existing use value and before the 2007 house price peak," added Lowe.
Shares in Caledonian Trust were up 2.9% at 90.00 pence Friday morning.
By Adam Clark; [email protected]
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Caledonian Tst.