LondonMetric's profits surge following merger

LondonMetric, the FTSE 250-listed real estate group created after the merger of London & Stamford Property and Metric Property Investments in January, saw profits more than double in the year ended March as the two companies combined for the last two months of the fiscal year.

LondonMetric, the FTSE 250-listed real estate group created after the merger of London & Stamford Property and Metric Property Investments in January, saw profits more than double in the year ended March as the two companies combined for the last two months of the fiscal year.

The firm, which now focuses on out-of-town retail and distribution assets, saw adjusted pre-tax profit surge 105% from £20.4m to £39.9m.

This reflects the activity of London & Stamford for the whole year along the combined activity of the enlarged group since the completion of the merger. If this was adjusted to include a full year's activity from both groups to provide a real year-on-year comparison, profits would have risen 39% to £45.6m.

Net assets at the end of the year totalled £676.7m, up from £630.9m the year before. However on a per share basis, adjusted net assets declined from 116p to 108p on its enlarged capital.

The company maintained its full-year dividend at 7.0p per share but said that it would "pursue a stable dividend policy which will be reviewed once the dividend is sufficiently covered". Dividend cover, expressed as a percentage of underlying profit, fell from 64% to 52%.

"The merger of London & Stamford and Metric Property has ledto transformational change both in respect of the newly integrated LondonMetric and in reshaping the portfolio to meet our new strategic priorities," said Chief Executive Andrew Jones.

"The enlarged group is more focused yet remains opportunistic, operating in areas where we have ahigh level of expertise which allows us to capitalise on the combined skill sets of the former companies."

LondonMetric is currently undergoing a reduction in its residential portfolio, which it says doesn't support its dividend policy, and has already agreed the sale of 116 units for nearly £60m.

Meanwhile, it also plans to reduce its City of London investments "which does not reflect any adverse sentiment to the sector or market, but rather allows us to crystallise the position of those assets".

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Central banks want politicians to take charge – but what will they do?
US Economy

Central banks want politicians to take charge – but what will they do?

The US Federal Reserve has come to the end of the road in terms of what it can do to accelerate any recovery, says John Stepek. It's over to the polit…
17 Sep 2020