LONDON (Alliance News) - Residential property developer Northacre PLC Monday reported a drop in profit and revenue for its last financial year as it moved onto new projects.
The company reported a pretax profit of GBP12.3 million for the financial year ended February 28, lower than the GBP16.8 million pretax profit it posted the prior year, due to lower investment revenue from The Lancasters Development on Hyde Park in London.
Revenue for the year fell to GBP3.0 million, down from GBP3.5 million a year earlier, which it said was due to a lower level of activity in Intarya, the group's interior-design business, which saw revenue decline 37%.
The company said administrative expenses during the year fell by 45% to GBP4.9 million, as there was no bonus provision during the year compared with GBP4.6 million the previous year.
Northacre said its cash position improved during the year. It said at year end it held cash and cash equivalents of GBP21.2 million, up from only GBP9.2 million the prior year.
It said the main source of cash was the further dividends received from The Lancasters Development, for which it said it was in the process of completing the snagging in order to transfer the freehold to residents by the end of the year.
Going forward, the company said it will focus on securing new projects and will increase both its development income and investment income.
"Our strengthened financial position means we are better placed than in recent years to take advantage of investment opportunities," said Financial Controller Kasia Maciborska-Singh in a statement.
Northacre shares were untraded Monday morning at 68.27 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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