7th Nov 2013 09:22
LONDON (Alliance News) - Residential property business Grainger Thursday said it swung to profit for the full year, as it positions itself to take advantage of the UK housing recovery.
The company which undertakes fund, property and asset management along with residential-led development posted pretax profit of GBP64.3 million for the period ended September 30, compared with a GBP1.7 million loss a year earlier. The profit rise came as a result of efforts to reduce its debt, it said, which declined to GBP959 million from GBP1.19 billion a year earlier.
Grainger said this reduction combined with its continued outperformance in UK asset values meant its consolidated debt to asset value ratio is now 48%, down from 55% in 2012.
Amid the swing to profit, revenue fell to GBP283.2 million, from GBP311.4 million in 2012 attributed largely to a fall in rental income to GBP71.3 million from GBP89.8 million a year earlier.
Grainger also made less on proceeds from sales of trading property. This declined to GBP193.3 million from GBP201.6 million a year earlier.
Grainger said the UK government's efforts to help Britons buy homes through mortgaging financing schemes, as well as to boost development in the rental sector through the Build-to-Rent fund, were helping to strengthen the market.
Build-to-Rent is a UK government programme intended to attract investors into the UK rental property sector via a new GBP200 million loan fund.
"We have positioned the business both to take advantage of the positive changes in the owner occupied market and the private rented sector, including both assets on our balance sheet and in funds and joint ventures," the firm said.
The board recommended a final dividend of 1.46 pence per share. The total dividend for the year will therefore be 2.04 pence per ordinary share, up 6.3% on a year earlier.
Grainger was one of the top five movers on the FTSE 250 Thursday morning, up 9.90 pence or 5.1% at 206.95 pence per share.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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