18th Sep 2013 07:17
LONDON (Alliance News) - Town Centre Securities PLC Wednesday said it swung to a pretax profit for the full year, after last years' results were affected by a lower valuation of its properties.
The property developer posted pretax profit of GBP3.6 million for the period ended 30 June, versus a GBP4.2 million loss a year earlier. This improvement reflects a lower revaluation deficit compared to last year, the firm said. After adjustment for capital expenditure and acquisition costs, the deficit was reduced to GBP3.8million, compared with a GBP11.4 million deficit last year.
Revenue increased slightly to GBP22.4 million, from GBP22.0 million in 2012, as its retail and leisure and office businesses performed strongly.
The Leeds-based firm said its property portfolio is now valued at GBP301.0 million, up from GBP287.6 million, after it purchased four properties during the year for a total consideration of GBP11.6 million.
The acquisitions include Park Row, Leeds, occupied by Lloyds TSB Bank PLC, and Apperley Bridge, occupied by Barratts, with a combined yield of over 9%.
The company's occupancy level across the portfolio increased slightly to 98% from 97% a year earlier.
Town Centre Securities' net asset value per share slipped to 267 pence from 270 pence in 2012, while its borrowings rose to GBP158.4 million, from GBP44.6 million.
Despite swinging to a profit the firm said market confidence is still "fragile".
"Our decision to invest in major cities continues to be a sound strategy during these economic times," Chief Executive Edward Ziff said in a statement.
"Whilst economic data now shows that there was no double dip, there is no doubt that confidence is fragile and that a full recovery is some time away. We are encouraged by signs of improvement but remain focussed on progressing development opportunities on assets we own and other value enhancing projects," he added.
The company proposed a final dividend of 7.34 pence per share, flat on the year before, taking the total dividend to 10.44 pence per share, also flat.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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