15th Nov 2013 12:25
LONDON (Alliance News) - Wynnstay Properties PLC Friday reported a fall in pretax profit for the first half, after it sold no property during the period.
The property investment company posted pretax profit of GBP528,000 for the period ended September 29, down from GBP641,000 a year earlier, while property income dipped to GBP821,000, from GBP838,000 in 2012.
Wynnstay said the year-earlier period included a GBP100,000 profit increase, boosted in part by property sales. The company said it had not sold any properties during the first half this year.
Subsequently the company's net asset value per share declined to 446 pence from 466 pence a year earlier.
Although continuing economic difficulties caused problems for the company's tenants, particulary small local traders, Wynnstay said it had not suffered any material bad debts resulting from the failure of tenants during the period.
Business failures among tenants reduce Wynnstay's rental income, while it also incurs costs while properties are vacant.
Earlier this year, Wynnstay said it was in negotiations for a new five-year GBP10 million facility with its bankers, Svenska Handelsbanken, and commented on the increase in margins over LIBOR now being sought by banks from business customers.
"Whilst we will have an increase in the total amount of the facility, the rate of interest will be at 2.65% above 3 month LIBOR as opposed to the 1.25% that we are currently paying," it said.
Wynnstay said it is close to concluding its refinancing, with the documentation currently being negotiated.
The board declared an interim dividend of 4.20 pence, up from 3.20 pence a year earlier.
The stock was trading at 251.00 pence midday Friday, down 24.00 pence or 8.7%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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