28th Apr 2016 07:56
LONDON (Alliance News) - U&I Group PLC on Thursday said its pretax profit fell in its financial year to the end of February, after a rise in revenue was offset by a reduced level of revaluation gains as well as increased operating costs from the integration of its Cathedral City acquisition.
The property investment and development firm said pretax profit fell to GBP25.8 million for the year ended February 29, from GBP34.8 million a year earlier. This came after it made a GBP229,000 gain of the revaluation of its property portfolio, having made a gain of GBP7.8 million a year earlier, as well as increased finance costs of GBP15.4 million, from GBP12.8 million a year earlier, and higher operating costs.
These offset the increase in revenue to GBP242.3 million from GBP203.7 million, although U&I noted its two largest divisions, Investment and Development & Trading, had both recorded revenue growth.
U&I said since February 2015 it has made good progress in repositioning the group to focus on larger regeneration projects, having integrated its acquisition Cathedral Group during the year and changed its name in October.
The company proposed a final dividend of 3.5 pence, which combined with an interim dividend of 2.40p and the 8.0p special dividend it will pay in June takes its total dividends for the year to 13.9p, in line with a year earlier.
U&I said that the pressure on the limited resources in our towns and cities is "intensifying", wider economic and political uncertainty "prevails both in the UK and outside", and consumer behaviour "seems to shift with increasing speed".
"With a clear strategy and an exceptional team, U&I is set for growth, with the projects, people and pipeline to deliver a sustained level of performance in the years ahead. Despite dampened wider economic conditions, we remain focused on our vision: to deliver sustainable returns to shareholders as we create long-lasting social and economic change in the places we develop," said Chief Executive Matthew Weiner.
Shares in U & I were up 3.9% at 204.69p on Thursday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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