14th May 2020 10:04
(Alliance News) - Grainger PLC on Thursday increased its payout for the first half of its current financial year amid higher rental income.
The residential property company reported pretax profit of GBP49.6 million for the six months to the end of March, down 8.7% from GBP54.3 million, as revenue declined 19% to GBP86.9 million from GBP107.0 million.
More positively, Grainger reported net rental income in the first half up 27% to GBP37.0 million compared to GBP29.1 million the year before.
The company maintained its dividend policy, with interim dividend per share increased by 6% year-on-year to 1.83 pence from 1.73p, driven by rental growth and investment activity.
Looking ahead, Grainger said rental performance proving resilient in early second-half trading. For the month of April, the company said it has seen similar levels of rent collection and rental growth albeit with a higher proportion of renewals compared to new lets in its portfolio, as customers choose to cancel or postpone their home moves.
"Grainger is in a strong position financially, and our portfolio is performing as expected, showing a high degree of resilience during these uncertain times," said Chief Executive Helen Gordon.
"Our focus for the rest of the year will remain on the continuity of service to our customers and the delivery of new rental homes, whilst ensuring the health and safety of all our employees, customers and suppliers remains our highest priority," added Gordon.
Grainger shares were trading flat in London on Thursday at 245.20 pence each.
By Evelina Grecenko; [email protected]
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