(Alliance News) - Hunters Property PLC on Tuesday reported lower profits for 2019, but expressed confidence in its financial position amid the Covid-19 pandemic.
Shares in the real estate agent were untraded on Tuesday afternoon in London, last quoted 40.00 pence each.
For 2019, Hunters Property posted revenue of GBP13.99 million, largely unchanged from GBP13.98 million posted for 2018. Pretax profit was GBP900,000, down 7% from GBP969,000. Finance costs for the year were GBP336,000, increased from GBP201,000.
Franchise revenue increased to GBP5.7 million from GBP4.9 million. Lettings revenue increased to GBP3.5 million from GBP3.3 million in 2018. Residential sales revenue reduced to GBP3.4 million from GBP3.9 million against a backdrop of a sales market that contracted by 3.4% during the year.
No final dividend was proposed in efforts to conserve cash amid an uncertain environment arising from Covid-19, taking the total annual dividend to 0.87 pence. For comparison, in 2018 the company proposed a final dividend of 1.60p, resulting in a total dividend of 2.40p.
Looking ahead, Hunters said that while 2020 started ahead of expectations, the Covid-19 outbreak has resulted in challenging market conditions with no certainty as to how its business will be hurt by the pandemic. However, it assured that its newly-secured GBP3.5 million Covid-19 facility will help it navigate the period of disruption.
"2020 started well in the two months to the end of February. Sales valuations were up 17% versus the prior year. Covid-19 has significantly altered our outlook for 2020 although, having said that we remain ahead of where we had expected to be in lettings and in mitigating the effect on tenant fees. Though it is pleasing to see the lockdown partially lifted it is too early to forecast the impact on the wider economy, said Chief Executive Glynis Frew.
"We have however adopted plans to deal with the situation, taken advantage of a range of government-introduced schemes and secured a significant finance facility to allow us to look positively to the future. We continue to speak with good prospect enquiries and we look forward to welcoming them to the network in due course," Frew added.
Hunters said it currently has banking facilities of GBP9.2 million.
By Ife Taiwo; ifetaiwo@alliancenews.com
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