23rd Dec 2020 18:24
Caledonian Trust PLC - Edinburgh-based property investment firm - Caledonian's net assets edge higher over the 12-month period to June 30, GBP24.1 million from GBP24.0 million last year. NAV per share 204.5 pence at June 30 from 203.7p last year. The trust did not recommend a dividend. Caledonian records pretax profit of GBP95,000, down sharply from GBP2.1 million last year. Total revenue slips to GBP536,000 from GBP881,000. Says net valuation gain in financial year was GBP250,000 compared to a net valuation gain in previous year of GBP2.4 million, which included a valuation gain of GBP3.0 million on group's investment property, St Margaret's House, Edinburgh.
Chair Douglas Lowe said: "The group's strategy is unchanged, but its implementation has been delayed by a year by the direct and indirect effect of the Covid-19 virus pandemic. Work stopped on our development at Brunstane; the processing of the planning permission at St. Margaret's was extended by the working restrictions at City of Edinburgh Council; the commercial realisation of the redevelopment was delayed by the uncertainty of the future demand for student housing; and the demand for development plots was severely restricted. The dislocation of services caused by 'furloughing' and changing methods of working has caused considerable delay to most normal business activity and subsequent commercial success. During this interruption virtually all normal overhead costs were payable while incomes were reduced or delayed.
"The recent announcement of the commencement of vaccine treatments will allow the recovery from the current poor market conditions that persist in some market sectors. Fortunately, the successful prosecution of the group's business does not depend on a full recovery, as a partial economic recovery, together with a lowering of restrictions will, when combined with an expected accompanying change in sentiment, ensure the strength of our markets."
Current stock price: 145 pence
Year-to-date change: down 21%
By Arvind Bhunjun; [email protected]
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