14th Jun 2016 08:11
LONDON (Alliance News) - Market Tech Holdings Ltd on Tuesday said revenue more than quadrupled in its recently ended financial year, noting that the affordability of its portfolio will drive demand for its properties in the face of uncertainty surrounding the European Union membership referendum.
The property investor said it benefited from a 31% increase in its property portfolio valuation for the year ended March 31 to GBP987.8 million, and also saw revenue come in at GBP130.3 million, jumping from GBP30.1 million the year before. This was largely thanks to a ten-fold increase in revenue in its Digital division, to GBP102.3 million from GBP10.0 million.
In the Digital division, Market Tech expanded its operations by purchasing e-commerce marketing company Stucco Media Ltd in May 2015.
Passing rent increased 22% to GBP32.4 million from GBP26.5 million and contracted rent grew 25% to GBP33.0 million from GBP26.5 million.
However, pretax profit fell to GBP12.5 million from GBP44.1 million a year earlier, after exceptional items came in at GBP23.6 million, consisting of GBP3.3 million in costs in connection with the move from London's AIM market to the Main Market, as well as GBP2.8 million in legal and professional costs relating to ongoing litigation with Irish Bank Resolution Corp Ltd. Finance costs also increased due to debt interest and amortised fees expenses on its existing credit facility.
No dividend was offered for the year, in line with a year earlier.
"While this was very much a year of real transformation and progress, which is reflected in the strong operational and financial results, we are only at the start of what we can achieve. In the coming 12 months, we will continue to consider opportunities to buy assets in and around our core estate, while further progressing our significant asset management and development strategies," said Chief Executive Charles Butler.
"There is some uncertainty in the property market ahead of the referendum on EU membership on June 23. However, whatever the outcome, we believe the attractiveness of our diverse property portfolio, its affordability for occupiers relative to comparable areas of the city, together with our team's ability to create value from it, support our confidence in Market Tech's prospects," Butler added.
Shares in Market Tech were up 3.3% at 170.50 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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