15th Sep 2015 09:09
LONDON (Alliance News) - Northacre PLC Tuesday said it swung to a loss in the first half of 2015 as its revenue fell and it booked costs associated with property developments it is working on.
The property development, management and design services company said it made a pretax loss in the six months ended June 30 of GBP351,000, having made a GBP13,000 pretax profit in the first half of 2014, as its revenue fell to GBP2 million from GBP3.1 million.
It said that revenue took a hit from the recognition of the development management fee and performance fee in respect of the property at 33 Thurloe Square in London in the previous period.
Northacre added that it has continued with the development of 22 Prince Edward Mansions, also in London, at a cost of GBP4.6 million, funded by reserves and a bank loan, which is due to be repaid in full on sale of the property by the end of the year.
"The high end of the market has been in a consolidating phase. In our view this is natural following many years of strong price appreciation. It should be noted that buyers have become much more sophisticated and hence, now more than ever, the quality of the development determines its overall success," Chief Executive Niccolò Barattieri said in a statement.
Shares in Northacre were untraded on Tuesday, last quoted at 56.00 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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