Grainger unveils fall in half-year profits

British property group Grainger posted a fall in half-year pre-tax profit, reflecting higher transaction related charges.

British property group Grainger posted a fall in half-year pre-tax profit, reflecting higher transaction related charges.

Profit before tax for the six months to March 31st came to £11m, down from £15.1m the previous year.

The drop in profit came despite a 6.6% rise in triple net asset value (NAV) per share to 167p, outperforming the broader UK housing market.

Gross NAV per share was up 0.6% to 224p.

"The market value of our properties, supported by the evidence of NAV enhancing sales, has once again outperformed the general market indices," Chairman Robin Broadhurst said.

"We continue to make progress in reducing group debt to our target of £1bn by the end of 2013."

The company recommended a dividend increase of 5.5% to 0.58p per ordinary share.

Since the year end the company has created new strategic alliances with APG, Heitman and Dorrington, comprising a combined total of £661m of assets.

Broadhurst said the alliances reinforce the company's position as a partner of choice in the residential market.

"Furthermore, these transactions underpin our objective to improve shareholders' return on capital, through successfully growing our business, whilst at the same time reducing net debt, thereby positioning Grainger for long term, sustainable growth."

Shares fell 0.91% to 153p at 12:09 Thursday.

RD

Recommended

Share tips of the week – 28 January
Share tips

Share tips of the week – 28 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
28 Jan 2022
Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Amazon halts plans to ban UK Visa credit card payments
Personal finance

Amazon halts plans to ban UK Visa credit card payments

Amazon has said that it is to shelve its proposed ban on UK customers making payments with Visa credit cards.
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022