29th Apr 2015 10:42
LONDON (Alliance News) - Property investment and development firm Development Securities PLC Wednesday posted a rise in pretax profit for its full year, as its acquisition of Cathedral Group Holdings Ltd last May boosted revenue and it also saw gains from the sale of properties.
For the year to end-February, the company posted a pretax profit of GBP34.8 million, up from GBP19.5 million a year before, as exceptional costs of GBP10.6 million and an uptick in direct costs were offset by a more than doubling in revenue to GBP203.7 million from GBP79.3 million, and gains from the sale of assets during the year.
The exceptional costs related to the acquisition of Cathedral, and the termination of a cross-currency interest rate swap.
Development Securities realised GBP45.7 million in development and trading gains during the year from several land and property disposals. During the year it acquire six development and trading assets worth GBP160.7 million, particularly increased its presence in Dublin.
The company proposed a final dividend of 3.5 pence, which combined with an interim dividend of 2.40p and the 8.0p special dividend it paid in April takes its total dividends for the year to 13.9p, increased from 5.6p a year before.
Net asset value rose to 276p per share, although stripping out the special dividend, net asset value would have been 284p.
Development Securities highlighted the ongoing economic recovery in the UK, which it said provides a "healthy backdrop for all of our activities."
"We are confident of sustaining and building on this performance in the years ahead. We have a clear strategy, a strong leadership team and good visibility on a pipeline of significant development and trading profits in the years ahead," said Chief Executive Michael Marx in a statement.
Shares in Development Securities are trading up 5.7% at 247.95 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
DSC.L