Grainger resilient despite challenges

Residential housing specialist Grainger said it expects completed sales from its UK portfolio in the six months to 31 March 2011 to be £89m from £88m the year before as tough economic conditions continue.The group, which is headquartered in Newcastle upon Tyne and manages properties in the UK and Germany, said profit before tax for the six month period will be materially enhanced by two items, firstly the partial reversal of mark to market movements on its long term financial derivatives and secondly by the gain on acquisition arising from the purchase of HI Tricomm. There was £1m of sales from its German portfolio compared to £3m in 2010. Sales on vacancy in its wholly owned portfolios have been made at values in excess of September 2010 vacant possession values. "We anticipate that the value of our UK portfolios will increase by around 2% at the half year," it said.Banking covenants are forecast to continue to be comfortably met.CJ Grainger plc