11th Jun 2015 08:20
LONDON (Alliance News) - First Property Group PLC shares rose early Thursday after it reported strong increases in assets, earnings and returns due to a strong performance from its fund management business and the purchase of properties in Poland and Romania for its group properties portfolio.
The property fund manager, which has assets under management and property holdings in the UK, Poland and Romania, reported a pretax profit of GBP8.1 million for the year to end-March, up from GBP6.6 million a year earlier, driven by strong growth in its property fund management business and growth in its group properties.
It raised its dividend for the year to 1.35 pence, from 1.13 pence a year earlier.
Six properties the fund manager bought in Poland and Romania during the year contributed GBP2.3 million to profit, although it also resulted in GBP1.8 million of negative goodwill.
Net assets stood at GBP31.0 million at the end of March, or 26.3p a share, up from GBP23.5 million or 20.0p a share a year earlier. It had cash balances of GBP12.2 million, from from GBP11.3 million.
"The financial year just ended has been transformational for the group principally because of the six investments made by it and FOP in Poland and Romania, which should yield recurring profit before unallocated overheads and tax of just over GBP6 million per annum. These earnings will more than replace the fee income we used to earn from the USS fund which expires in August 2015 and which at its peak amounted to some GBP3 million per annum," Chief Executive Ben Habib said.
"The group's future earnings are substantially underpinned, its balance sheet is strong, the economies in which we operate are growing, we have investment mandates which will result in the group's earnings growing and we are working on new interesting transactions. I therefore look to the future with excitement and confidence," he added.
First property Group shares were up 8.8% at 43.80 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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