4th Mar 2015 08:57
LONDON (Alliance News) - Capital & Regional PLC saw its shares rise on Wednesday morning after the company said its pretax profit surged on gains made on the valuation of its portfolio and on the acquisition of new units at The Mall shopping centre estate, along with a rise in revenue.
The commercial property company said its 2014 pretax profit rose to GBP67.2 million from GBP7.5 million. Profit was pushed higher by gains across the business, but primarily by a rise in revenue to GBP46.6 million from GBP17.6 million and on the revaluation of its investment properties, which produced a GBP36.9 million gain against no movement in 2013.
The company acquired a stake in The Mall, the shopping centre brand in the UK, ahead of an increase the value of the property estate in the second half, which produced a further GBP8.1 million boost to its pretax profit for 2014.
Capital & Regional said its net asset value per share increased to 60 pence against 54 pence a year earlier, despite a doubling of its shareholder base over the year.
The group said its retail occupancy at December 30 was 96.1%, up from 95% a year earlier, while its footfall increased 0.9%, beating the national benchmark by 1.8%.
It is proposing a 0.60 pence per share final dividend for the year, taking its total dividend up to 0.95 pence, up 46% year-on-year.
"The group's operational focus is now on the delivery of the multi-year Mall asset management programme announced in conjunction with the capital raise in June 2014, which we now expect to total GBP65 million and deliver income returns of at least 10%," said Chief Executive Hugh Scott-Barrett.
Shares in Capital & Regional were up 7.1% to 56.25 pence Wednesday morning, the best performer in the FTSE All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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