10th May 2016 07:05
LONDON (Alliance News) - Cardiff Property PLC said Tuesday its pretax profit for the first half of its financial year almost tripled due to property sales by its joint venture company Campmoss Property Co Ltd.
The group, which specialises in property investment and development in the Thames Valley, posted pretax profit of GBP1.5 million for the six months ended March 31 up from GBP566,000 for the same period a year earlier, despite revenue rising only slightly to GBP300,000 from GBP296,000. The revenue represents its gross rental income, Cardiff Property said.
The increase in pretax profit, therefore, came because figure included an after tax profit of GBP1.3 million from its joint venture Campmoss Property, in which it holds a 47.62% stake. This was largely due to property sales by the joint venture, Cardiff Property said. For the same period a year earlier, it received GBP350,000 in after-tax profit from the joint venture.
Cardiff Property declared an interim of 3.60 pence, up 3.0% from 3.50p a year earlier.
The company noted that the commercial property market remains positive. Following the government planning initiative, Cardiff Property said a number of existing office buildings are being converted to residential use and although this has reduced overall office supply, the availability of second hand office space is still a restraint on the market.
This shortage of high grade office space has supported an increase in rental levels, Cardiff Property said, although Chairman Richard Wollenberg noted that the continuing political and financial uncertainties in the UK and Europe "remain a concern and until these are resolved, further growth in the Thames Valley commercial property market is expected to be limited".
Residential sales values in Surrey and Berkshire, the group's main area of operation have remained unchanged despite reduced volumes. We continue to receive a high level of letting enquiries with rents retaining previous year's increases," Wollenberg added.
Cardiff Property shares were up 6.2% to 1,500.00p early Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Cardiff Property