22nd Oct 2013 07:07
LONDON (Alliance News) - Property investors Development Securities PLC Tuesday said it swung to a profit in the first half, as its portfolio returned to profitability.
The company posted pretax profit of GBP8.1 million for the period ended August 31, compared with a GBP0.7 million loss a year earlier, after its portfolio was valued lowed last year.
During the period, Development Securities realised development and trading gains of GBP13.3 million compared to the realised gains of GBP11.9 million on the equivalent period.
Revenue, however, declined to GBP32.5 million, from GBP56.7 million in 2012, as its development and trading division saw revenue drop to GBP22.8 million from GBP46.7 million a year earlier.
Revenue for the division is received from project management fees, development profits and the disposal of inventory.
The company said revenue for its two other divisions, investment and operating, remained broadly flat.
Development said its net asset value per share increased to 5.9 pence at the end of August from 2.0 pence at the end of February.
The firm has received planning consent for a number of sites during the period included a mixed-use development in Devon, which will include a foodstore for which a conditional pre-sale has been agreed with ASDA.
There are also retail and leisure developments planned for Plymouth, Norwich and Cornwall, while it secure consent for a GBP85 million project in Abbey Wood in Kent consisting of 220 private homes, an 80 bed hotel and a foodstore pre-let to Sainsbury's.
In addition, Development Securities Monday said its joint venture with Patron Capital sold the Phones 4u Arena in Manchester to a Mansford Real Estate LLP Fund for GBP82.1 million.
The interim dividend remained unchanged at 2.4 pence.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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