Grainger back in the black

Residential property firm Grainger reported a return to full year profit and is confident the residential market will provide good medium term opportunities.

The residential landlord posted pre-tax profit of £26.1m in the year ended 30 September 2011 compared with a loss of £20.8m the same time a year earlier.

Gross net asset value per share rose 8.2% to 216p from 200p the year before. Group revenue increased to £296.2m from £244.5m before.

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Net rental income climbed to £49.1m from £40.8m previously.

Chairman Robin Broadhurst said, "Our business has continued to demonstrate resilient performance and a proven ability to take advantage of opportunities that will provide long term value."

"This is supported both by our recent refinancing and by the strong cash generative capability of our portfolio. As a result, whilst being mindful of the challenges presented by the external environment, we are confident the residential market will provide good medium term opportunities."

Grainger, which reduced net debt by £100m in the second half of the year, said £1.2bn of new debt was secured during the year.

It added that HI Tricomm and Grainger GenInvest acquisitions were performing above expectations.

A final dividend of 1.30p has been recommended.

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