13th Aug 2014 08:50
LONDON (Alliance News) - Mirland Development Corporation PLC Wednesday reported a drop in profit in the first half, after its results in the previous year were boosted by valuation gains.
The residential and commercial property developers in Russia posted pretax profit USD1.4 million, down from USD8.9 million a year earlier. In the previous year, the company made revaluation gains of USD42.2 million compared with USD8.8 million in 2014.
Group revenue, which incorporates rental income from investment properties and revenue from the sale of residential units, rose to USD46.3 million from USD23.8 million a year earlier.
Rental income from investment properties rose to USD26.8 million from USD22.2 million a year earlier, while revenue from the sale of residential units rose to USD17.8 million from USD931,000.
At an operating level, the company said it made progress across a number of its sites. At Triumph Park, the company's St Petersburg-based residential development, all 510 apartments have been sold under phase one, representing annual income of USD69 million.
Meanwhile, Mirland acquired the 49.5% stake of Vernissage Shopping Mall in Yaroslavl it did not already own.
Financially, the company said total net borrowings amounted to USD424.9 million from USD357.7 million in December. It also secured three new bank financing or refinancing agreements.
Mirland said despite its operational achievements the Russian economy remains "challenging" and a weakening ruble has the potential to hurt the business.
"We continue to monitor the situation and our three new refinancings during the period have been agreed on attractive terms, ensuring that we remain strongly positioned to generate further value for shareholders," Chairman Nigel Wright said in a statement.
Mirland Development shares were quoted up 0.4% at 235.00 pence Wednesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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