7th Dec 2015 16:36
LONDON (Alliance News) - K&C REIT PLC Monday said its pretax loss widened in its last financial year and said it will have to raise further funds to make acquisitions.
K&C shares were trading down 12% to 7.50 pence per share on Monday afternoon.
The residential real estate investment trust reported its results for the year ended June 30, the period prior to it listing on AIM in early July.
K&C reported a GBP242,618 pretax loss in the year, widening from the GBP156,593 loss the year earlier as the small amount of revenue generated by the company rose to GBP34,380 from GBP11,527.
Higher administrative costs and finance costs totalling GBP98,116 were the causes for the wider loss. The company did not report any finance costs in the previous financial year.
K&C is focused on the residential letting market, focused primarily on Central London.
"The company took a significant step forward through its admission to AIM and achieving REIT status. Now it needs to build a strong business with high-quality assets that will be able to support an increasing income yield," said Chairman Nigel Payne.
"To achieve this, the company will be required to raise more capital in order to make further acquisitions, and the directors look forward to working closely with funding sources, both equity and debt providers, to achieve this objective," he added.
"The board continues to review a number of acquisition opportunities and, in this regard, we are pleased to report that we have exclusivity on a particular project, that the board considers to have the potential to enhance net asset value per share. We hope to report further on this in due course," said Payne.
By Joshua Warner; [email protected]; @JoshAlliance
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