21st Aug 2018 10:57
LONDON (Alliance News) - Property developer and investor Safeland PLC on Tuesday said that it is reviewing the merits of maintaining AIM stock listing due to negative business environment and lower opportunities.
Shares in Safeland were down 10% at 49.00 pence on Tuesday morning.
For the year to the end of March, the company's pretax profit rose slightly to GBP2.4 million from GBP2.0 million the year before, due to a gain on the revaluation of investment properties to GBP3.8 million from GBP459,000.
However, revenue fell sharply to GBP2.9 million from GBP12.7 million due to reduced activity compared to the the prior year.
During the year, Safeland sold its residual interest in two properties in London, then purchased and sold a mixed-use property asset in London, generating total revenue of GBP2.8 million.
Safeland has declared a final dividend of 1.0 pence per share, in line with the year before.
"I repeat the statement in 2017's full-year results that the market appears to us to be constrained by an economic outlook which in turn is affected by political conditions at home, in the EU, and worldwide. I believe that this has created a cautious environment, verging on stagnation which may continue for some time," said Managing Director Larry Lipman.
"Whilst we will continue to seek out value adding opportunities, the generally negative environment with little current opportunity suggests that it would be prudent for the board to review the company's cost base, including the value of maintaining the company's AIM quotation. A further announcement will be made in due course," Lipman added.