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LONDON (Alliance News) - Cardiff Property PLC Tuesday said pretax profit fell in the first half of its financial year as higher operating profit was more than offset by a decrease in earnings from its Campmoss joint venture.
The property investment and development company said it made a GBP548,000 pretax profit in the six months ended March 31, compared with GBP635,000 in the corresponding period the prior year. Revenue increased to GBP296,000 from GBP257,000 but administrative expenses increased to GBP292,000 from GBP236,000. Other operating income was up to GBP175,000 from GBP120,000, resulting in higher operating profit.
Its share of profit after tax of GBP340,000 from Campmoss Property Company Ltd, its 47.62% joint venture, compared with GBP470,000 in the corresponding period of the prior year.
Cardiff Property increased its interim dividend to 3.50 pence from 3.40p.
"For the six months under review confidence in the Thames Valley commercial property market continued to gather momentum although letting activity remained at a low level. Rental levels experienced a marginal increase but overall the level of demand is still insufficient to support higher rents," Chairman Richard Wollenberg said in a statement.
"Residential property values in Surrey and Berkshire have remained firm, albeit with signs of a flattening market. Sales and letting activity remain high," the Wollenberg added.
The chairman said the company's completion of its retail and residential schemes should "result in further revenue and enable Campmoss to re-invest the proceeds into future development".
"Confidence in the property sector is improving and it is encouraging that many institutional funds are increasing their exposure to the commercial property market. Despite the well-rehearsed Eurozone problems further growth in the UK economy is anticipated with UK companies being given the opportunity to invest for the future a platform for a potential, albeit gradual recovery in rental levels is likely," the chairman said.
Cardiff Property shares were down 0.5% at 1,040 pence on Tuesday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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