LONDON (Alliance News) - Northacre PLC Tuesday reported a dramatic fall in first-half pretax profit because the year-earlier figure included receipt of GBP15 million of dividends from The Lancasters development in Hyde Park, London.
In a statement, Northacre said pretax profit fell to GBP520,000 in the six months ended August 31, compared with GBP13.0 million in the corresponding period last year.
Investment revenue dropped to GBP466,000 from GBP15.0 million. Investment income represented dividends received following the sale of the 33 Thurloe Square project in June and bank interest. Last year's figure's were bolstered by The Lancasters dividend.
Revenue from continuing operations rose to GBP2.6 million from GBP873,000 due to increase in development fee income by GBP2.2 million.
Administrative expenses rose to GBP2.5 million from GBP2.4 million.
"In the last months we observed a period of strong growth. With the general election in May 2015, we feel that the prime London residential market will become somewhat subdued until then. However, if further tax burdens are implemented, the UK is still only coming into line with other countries and the many plusses for London still hold firm; undoubtedly the most important dynamic is a lack of supply and cumulative growth of 20% is anticipated between 2014 and 2018," Chief Executive Niccolò Barattieri di San Pietro said in a statement.
The CEO said the company is pursuing a couple of opportunities at the moment and expects to know the outcome by the end of the calendar year.
Northacre shares were up 1.5% on Tuesday afternoon 69.50 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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