20th Nov 2024 11:12
(Alliance News) - Mountview Estates PLC on Wednesday said it remains optimistic for the future, despite falls in revenue and profit prompting a slashed dividend.
The London-based property trading company owns and acquires tenanted residential property throughout the UK which are sold when vacant.
Mountview said pretax profit decreased by 9.0% to GBP18.1 million for the six months that ended September 30 from GBP19.9 million a year before, as revenue fell by 4.6% to GBP37.4 million from GBP39.2 million.
The profit decline also was due to increased costs, driven by consistently high interest rates.
Mountview declared an interim dividend of 250 pence per share, halved from 500p a year previous.
Mountview shares were down 5.4% at 8,730.00p each in London on Wednesday morning.
The firm took the decision to cut the dividend as it "would not be possible to continue at this level without compromising the company's financial prudence".
More positively, Mountview said its purchasing activity "has remained strong", while its financial strength should allow it to continue "to take advantage" of purchasing opportunities.
"We live in difficult times, but I believe that this company will continue to prosper and can continue to care for its staff and its shareholders," said Chief Executive Officer Duncan Sinclair.
By Lydia Doye, Alliance News reporter
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