11th Aug 2025 14:26
(Alliance News) - Develop North PLC on Monday reported broadly flat net asset value during the first half of its current financial year, as the firm remains optimistic in its growth potential for the year ahead.
The investor in the residential and commercial property sector reported a net asset value total return of 2.5% for the six months that ended May 31, against a 3.4% return the year before.
NAV per share at May 31 was 79.79 pence, down slightly from 79.81p at November 30 but up 0.3% from 79.55p on May 31, 2024.
Pretax profit declined 11% to GBP575,000 from GBP644,000, as total expenditure increased 53% to GBP474,000 from GBP309,000. Interest payable by Develop North more than doubled to GBP81,000 from GBP39,000.
Total net income for the six-month period grew 4.9% to GBP1.0 million from GBP953,000.
"For Develop North and its shareholders, not to mention the North East of England, these are exciting and potentially transformative times, as the post-reporting period note below explains. In the nearer term, the intention is to continue the process of creating and managing a diversified portfolio of fixed rate loans secured over land and/or property, predominantly but not exclusively in our local region here in the North East," said Chair John Newlands.
Develop North declared an interim dividend of 2.0 pence per share, unchanged on-year.
Shares in Develop North were up 3.0% at 79.29 pence in London on Monday afternoon. The stock is up 1.7% over the past year.
Looking ahead, Newlands continued: "It is obviously important to keep abreast of developments covering everything from conflicts in the Middle East and Ukraine to the effects of US tariffs on international trade to political developments as the Labour government approaches its second year in office. To assess the investment outlook for our company, however, it is important to look at the prospects and background factors a little nearer home."
Newlands noted the Office for Budget Responsibility has forecast growth of 1.0% in 2025 for the UK Economy, while the Treasury has similarly projected average 1.1% growth.
"These are not exciting numbers - but whatever the external backdrop, people will always need houses. Bank and building societies will also always need to offer mortgages to millions of people to make their own businesses work. Last but not least, there is widespread agreement that there is a crucial shortage of housing stock across the UK," added Newlands.
By Emily Parsons, Alliance News reporter
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