30th Apr 2014 11:06
LONDON (Alliance News) - Property investment company Panther Securities PLC Wednesday said it swung to profit in 2013, after the previous year's results were hit by a loss on the movement in fair value of investment properties.
AIM-listed Panther Securities posted a pretax profit of GBP8.2 million for 2013, versus a GBP4.6 million loss in 2012, buttressed by a gain on the fair value on derivative financial liabilities of GBP6.0 million compared with a GBP777,000 loss the year before. The 2012 results also were affected by a GBP5.0 million loss on the movement in fair value of investment properties, which was turned into a GBP742,000 profit in 2013.
During the period, the company made a number of disposals including its freehold factory investment in Princes Risborough, Buckinghamshire for GBP2.0 million and a vacant freehold site which had formerly been a garage in Nelson, South Wales for GBP235,000.
Panther Securities acquired five sites including a modern multi-let high street retail parade in Falkirk, Scotland for GBP3.0 million. The property consists of 16 retail units, which include a few vacant shops together with some vacant offices. The firm said 95% of the total current rental income of GBP425,000 a year is secured against high-profile national chains including Pizza Hut and health foods retailer Holland & Barrett.
Panther Chairman Andrew Perloff once again echoed his "dissatisfaction with the high levels of unnecessary bureaucracy mostly emanating from Europe" and urged shareholders to support the UK Independence Party via a GBP17,500 donation. Last year Perloff's request for the company to donate GBP25,000 was rejected, forcing him to make the donation personally.
However, Perfloff on Wednesday said his request was "narrowly defeated because one large shareholder forgot to obtain his nominee holder to vote which only goes to show how important it is for shareholders to properly participate when they are able".
Looking ahead the company said there is more competition from many new funds prepared to invest in non-prime commercial property, while there appears to be greater tenant activity despite the heavy costs of business rates.
"The rates burden just goes upwards and in many cases the amount payable is more than the rent payable, and unfortunately owners are compelled to adjust their rental expectations to take account of market realities," Panther Securities added.
The company said as the property market continues to recover it hopes that "a number of our property holdings that have been zombified will now come back to life and start to produce more meaningful returns over the next few years as all property markets improve."
The firm maintained its final dividend at 9 pence per share, making a total dividend of 12 pence per share - unchanged from a year earlier. The final dividend will have a script dividend alternative, the firm said.
The stock was trading at 325.00 pence Wednesday morning, up 10.00 pence or 3.2%.
https://alliancenews.com/panther-securities-chairman-gives-bankers-a-dressing-down/
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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