6th Oct 2005 14:05
Grainger Trust PLC06 October 2005 FOR IMMEDIATE RELEASE6th October 2005 GRAINGER TRUST plc TRADING UPDATE: PRE-TAX PROFITS EXPECTED TO BE SLIGHTLY AHEAD OF MARKET CONCENSUS Grainger Trust plc ("Grainger") the UK's largest quoted residential investor,today announces that second half trading volumes to 30 September 2005 haveexceeded those of the first half and accordingly, it anticipates pre-tax profitsslightly ahead of the current market consensus. Grainger is providing this pre-close period trading update in advance of thepreliminary results to be issued on 6 December 2005. Core tenanted residential sales have continued to exceed our September 2004valuations and total sales volumes are expected to be approximately £132m forthe 12 months to 30 September 2005 (2004: £135m). Trading performance over the year has reflected the general perception of the UKhousing market; a slowing down in the sales process with properties takinglonger to exchange after offers have been made and relatively modest gains inaverage house price movements. During the second half of the year Grainger completed or exchanged contracts forthe purchase of approximately £46m of tenanted residential properties taking theyear's total to £100m at investment value (year to 30 September 2004: £118m). Wealso completed the acquisition of City North Group plc and some 450 properties,of which approximately 200 were regulated, from the Church Commissioners in ajoint venture with Genesis Housing Group. Activity in our development and trading division has continued in line withexpectations, although annual profits will be slightly weighted to the firsthalf because of commercial property and Kennel Farm land sales, both of whichfell in the period to the end of March 2005. Integration of City North Group plc has gone well and we are pleased with thequality of the portfolio and are optimistic about the opportunities it presents. Acquisitions of home reversion assets under the Norwich Union agreement havestarted slowly as the time taken to process transactions from initial marketingto completion is typically about six months. Norwich Union are intensifying their home reversion marketing and IFA trainingefforts and are confident that acquisitions will grow. In addition the recentlaunch of our Bridgewater Flexible Home Reversion Plan has been well received bythe market. As reported at the half year, we have increased our syndicated bank facility to£1300m, of which some £450m was available at 30 September 2005. This puts theGroup in a strong position to be able to pursue its ambitious growth plans. The company will comment in more detail at the time of its preliminary resultsannouncement on 6 December 2005. Ends Contact: Grainger Trust plcRupert Dickinson, Chief Executive Tel: 020 7795 4700Andrew Cunningham, Deputy Chief Executive & Finance Director Tel: 0191 261 1819 Baron Phillips AssociatesBaron Phillips Tel: 020 7920 3161 07050 124119 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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