21st Oct 2015 09:08
LONDON (Alliance News) - Development Securities PLC said Wednesday that it is on track to meet its full-year targets, as it reported a fall in pretax profit for its first half.
The property investment and development company reported a pretax profit of GBP7.0 million for the half year to end-August, more than halved from GBP18.0 million a year before, as revenue fell to GBP75.6 million from GBP92.4 million.
As a result of payment of GBP4.4 million in dividends and a GBP3.7 million writedown against one of its investment assets, net asset value fell by 0.8%, the company said.
During the period the company said it made development trading gains of GBP12.5 million, driven by its schemes at Wick Lane Wharf and Abbey Wood, and since the end of the period it realised further gains of GBP10.0 million related to its sale of The Old Vinyl Factory in Hayes and in Brentwood.
The company is guiding for GBP54.7 million in development and trading gains for its full year.
Development Securities proposed an interim dividend of 2.4 pence, unchanged from the previous year.
The company said Tuesday it was asking shareholders to approve a new name, U + I Group PLC, to formalise the integration of its acquisition of Cathedral Group. Shareholders will vote on this name change at a general meeting November 5.
"Looking ahead, this is an exciting time as we target another very strong year of gains. We have a clear strategy and an exceptional team, the combination of which I am convinced will deliver long-term, sustainable returns to our shareholders, and enhance the communities in which we develop," said Chief Executive Matthew Weiner in a statement.
Shares in Development Securities were down 11% at 226.00 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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