Portfolio revaluation boosts profit to £8.4m as client increases dividends 6% to 2.25p a share
Pre-tax profit at client Development Securities has soared 75% in the year ending June 2006, due to a revaluation of the company’s investment portfolio.
In the six months to the end of June, pre-tax profit at the developper was £8.4m, compared with £4.8m for the same period last year. Net asset value per share increased to 521p from the restated 510 pence per share at 31st December 2005.
Chairman Roy Dantzic said that the revaluation of its portfolio sent profit soaring. He said: “The property revaluation review at 30 June 2006 generated a more than satisfactory surplus of £10.4m, equivalent to capital growth of 9%, some 28% above the equivalent IPD growth of 7%.”
An interim dividend of 2.25p a share is being paid to shareholders, an increase of 6% over the equivalent dividend paid in 2005.
Dantzic was upbeat about the future, stating that the company’s balance sheet showed continuing strength, but ruled out converting the company to REIT status.
He said: “From our perspective, we are most unlikely to convert your company to REIT status since we believe it will prove a restrictive environment for a business with such a significant development programme relative to our asset base.”