30th Sep 2014 14:18
LONDON (Alliance News) - Energiser Investments PLC Tuesday said it is receiving new opportunities in the residential property market, a market which it said has recovered significantly in the last two years, as the company looks to rebuild value for shareholders.
In a statement, Energiser Investments said net assets increased to GBP699,000 as at the end of June from GBP136,000 at the end of June 2013. At the end of December 2013, net assets stood at GBP205,000.
The company said the increase since the end of June 2013 was a result of the rise in the fair value of its investment in the development of 12 units under construction at Kingswood Park, Surrey by GBP614,000. The group said the construction of the development is progressing well, with a show house expected to be opened in early November. The group said it is evaluating other proposals in the property sector.
However, the group made a loss before and after tax of GBP120,000 in the six months ended June 30, compared with GBP33,000 in the corresponding period last year. The loss was primarily due to the finance costs relating to the funding for its investment in the Kingswood Park development. In order to finance the investment, short-term borrowing increased to GBP3.0 million from GBP879,000. Interest payable on borrowings rose to GBP141,000 from GBP50,000.
The company's investment of residential properties in Wellingborough generated GBP48,000 of net rental income, down from GBP55,000.
"The [Wellingborough] properties are continuing to be let on short term tenancies whilst the residential market is recovering. Consideration is currently being given to the disposal of some of these properties with the proceeds being used to reduce bank debt and reinvest proceeds retained by the group into the group's new activity of providing mezzanine funding to small housebuilders," Nishith Malde, interim chairman, said in a statement.
Energiser Investments is seeking a successor to Chairman Bill Weston, who passed away in August.
Energiser shares were Tuesday untraded at 4 pence.
By Samuel Agini; [email protected]; @samuelagini
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