2nd Dec 2016 10:41
(Correcting title of Nigel Hugill to chief executive.)
LONDON (Alliance News) - Urban&Civic PLC on Friday said its annual pretax profit almost quadrupled year-on-year, citing its strong performance in the second half of its financial year.
The property investor said its pretax profit for the year ended September 30 was GBP25.9 million, up from GBP7.0 million a year earlier, as its revenue increased 72% to GBP95.2 million from GBP55.5 million.
Urban&Civic benefited from a surplus on the revaluation of its investment properties of GBP20.5 million, up from GBP8.1 million a year earlier, and recorded GBP18.9 million profit on trading property sales, up from GBP3.2 million a year earlier.
This offset GBP5.5 million of Scottish land write-downs out of a total GBP7.5 million property impairments.
The company said it was "established as a counter cyclical stock with core assets that would benefit once London house prices peaked and show resilience in most practical circumstances".
Currently, Urban&Civic holds a predominantly residential base of assets in more affordable locations with good connections to the capital and the strongest provincial cities, and said demand for its products was underpinned by local economies and relative house costs.
"More than 3.0% of London's population are currently leaving each year. Most stay within 100 miles. We are old enough to know that circumstances shoot down the cavalier but with assets up, profits up and a conservative balance sheet we can look to maintained out-performance," said Urban&Civic Chief Executive Nigel Hugill.
The group's EPRA net asset value per share grew 5.1% over the year to 284.20 pence from 270.40p the prior year, and said "almost all increases arose in the second half of the year, thereby spanning the European Union referendum in June".
Urban&Civic declared a final dividend of 1.80p per share, taking its total dividend for the year up 10% year-on-year to 2.90p per share from 2.65p per share.
Shares in Urban&Civic were up 5.3% at 205.00p on Friday.
By Hannah Boland; [email protected]; @Hannaheboland
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