London-focused regeneration specialist Quintain Estates produced a first half loss compared to a profit the year earlier as net asset value (NAV) per share fell.
Quintain posted a pre-tax loss of £29.1m in the six months ended September 30th compared to a profit of £3.7m the same period a year earlier. Revenue was up slightly at £24.4m from £24.2m previously.
Basic NAV fell to 106p from 116p before while EPRA NAV dropped to 109p from 126p before.
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"Reflecting the wider UK economic environment, the portfolio experienced an overall 1.7% reduction in gross assets to £1.1bn, mostly because of a fall in the value of secondary assets," said Quintain.
Adjusted profit before tax increased to £4.3m from £3.3m before while net debt reduced to £465.2m compared to £533.7m the same time a year earlier. Bank gearing eased to 78% from 79% previously.
Chief Executive Max James said: "We are repositioning Quintain to become a leading London development and investment specialist, supported by robust recurring income from the asset management business."
Quintain added that it would sharpen its focus on London, its delivery at Greenwich and Wembley and look to boost income generation from its investment activities.
"We will progressively and permanently reduce the level of debt through the orderly disposal of non-core assets and the judicious introduction and use of third party capital," it said.
The group has committed to reducing net debt to below £400m by March 31st 2014.
CJ
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