(Alliance News) - KCR Residential REIT PLC on Monday posted a substantially widened annual loss after a drop in fair value gains, with the publication of the results allowing its shares to be restored to trading.
The real estate investment trust's shares were temporarily suspended from trading on London's AIM market due to failure to publish its financial 2019 annual results, but Monday's publication ended this suspension.
By Monday afternoon, no shares in KCR had been traded since the suspension was ended. They last closed at 48.50 pence.
For its financial year ended June 30, KCR Residential reported a GBP3.7 million pretax loss - many times wider than its financial 2018 loss of GBP67,574.
The majority of this change came from a GBP3,268 gain on fair value from the revaluation of its investment properties, an enormous drop from the GBP3.1 million gain recorded in financial 2018.
KCR Residential's revenue almost trebled, however, to GBP777,827 from GBP265,936.
In mid-July, Torchlight Investors agreed to subscribe for 9.0 million shares in KCR at 45p each, worth GBP4.1 million in total, and also signed an option to acquire another 50 million shares.
Under this transaction, KCR appointed Russell Naylor as an executive director with responsibility for finance and Richard Boon and James Thornton as non-executive directors. Directors Oliver Vaughan and James Cane stepped down as part of the deal.
Chief Executive Dominic White said: "The transaction with Torchlight that completed in August 2019 is, we believe, the most significant event for KCR since the IPO. It enabled the restructuring of the balance sheet, provides a solid base for refinancing the portfolio, and opens up numerous channels to further equity for portfolio expansion.
"We expect to update shareholders further in the coming months as the restructuring and positive refinancing processes complete post year end.
"We are excited about the potential for the company to grow as it works with Torchlight and its representative directors to capitalise on its new opportunities."
By Anna Farley; annafarley@alliancenews.com
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Kcr Residential (KCR)