27th Mar 2014 14:32
LONDON (Alliance News) - Palace Capital PLC Thursday said it swung to a pretax profit in its most recent financial year after the acquisition of the Sequel property portfolio in 2013.
The AIM-listed real estate company said it made a GBP5.7 million pretax profit in the twelve months ended January 31, 2014, compared with a GBP144,688 million pretax loss in the corresponding period the previous year. This takes into account the results of the Sequel property portfolio for approximately three months from completion of the acquisition in October 2013.
The properties were bought for GBP39.3 million, funded by the issue of GBP24.3 million of new equity and a debt facility from Nationwide of GBP20.0 million.
As previously announced, Palace Capital has changed its financial year end to March 31. That means the company expects to publish its final results for a fourteen-month period in June.
"We believe that Hudson House, York, has the potential for significant upside. It is very well located in the heart of York, in an area that is benefiting from significant change," Stanley Davis, chairman, said in a statement.
"We are planning a major refurbishment of Hudson House and have instructed a highly rated team to advise us as to what will be the most productive scheme. It is early in the process, but we will keep shareholders updated as we are excited about the prospects for this asset," Davis added.
"We are keen to grow Palace Capital by selective acquisition as well as organically and we have been looking at a number of portfolios," Davis said.
Managing Director Neil Sinclair said Palace Capital is in "excellent shape," saying the company has been working hard to improve returns from the Sequel acquisition.
"Through our style of active management we have increased both the gross and net rental income, reduced the irrecoverable costs and reduced our debt significantly," Sinclair said in a statement.
Palace Capital paid a 2 pence dividend and said it intends to pay another 2 pence at the full-year.
Palace Capital shares were Thursday quoted at 261.95 pence, up 0.8%.
By Samuel Agini; [email protected]; @samuelagini
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