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(Alliance News) - Caledonian Trust PLC on Wednesday said it swung to an annual profit as revenue multiplied, which it said was largely due to achieving new property sales from nothing a year earlier.
For the full year ended June 30, Revenue was up to GBP3.0 million for the Edinburgh-based property company, a nearly tenfold jump from 306,000 year-on-year.
This was largely due to the group achieving property sales of GBP2.7 million compared to none for the previous year. Income from rent and service charges rose roughly 22% to GBP373,000 from GBP306,000 in 2022.
Caledonian's pretax profit swung to GBP718,000 from a loss of GBP1.3 million year-on-year.
Net asset value per share was up to 203.4 pence from a loss of 197.3 pence last year.
As with 2022, the group is not proposing a dividend in respect to the current financial year. It intends to restore dividends "when profitability and consideration for other opportunities and obligations permit".
The group warned that economic prospects "provide an unfavourable background for property," given minimal expectations for economic growth over the next three years. However, it also stated that a forecast drop in interest rates by mid-2024 will improve the prospects for house prices.
The group said: "[Caledonian's] strategy continues to be the development of its sites whenever market conditions are favourable in the Edinburgh housing market areas and in the geographical extension north and east that is occurring, while maximising the value of its investment portfolio."
Shares in Caledonian Trust closed up 13% at 147.00 pence each in London on Wednesday.
By Hugh Cameron, Alliance News reporter
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