LONDON (Alliance News) - Property company Northacre PLC Thursday posted a drop in pretax profit for the ten months to end-December 2014 compared to the year to end-February 2014, as in the previous year it received a GBP15 million one-off gain from the Lancasters development near Hyde Park, London.
The company posted a pretax loss of GBP1,858, swung from a pretax profit of GBP12.3 million in the previous period, as a rise in revenue to GBP3.9 million from GBP3.0 million did not compensate for the non-repeat of the one-off gain the year before.
Northacre has shortened its reporting period to bring it in line with its parent company Abu Dhabi Financial Group Ltd.
The company attributed the rise in revenue to increased activity in its project development business, which offset lower activity in its interior design business N Studio.
Northacre noted a "marked slowdown" of activity in the London housing market as next week's UK general election looms. However, the company does not believe there will be any changes to the market's perception of London as the "number one city in the world as a destination for ultra-high net worth individuals".
"The housing debate is steadily rising up the UK political agenda, and will continue to be a key issue. The construction of new homes at an affordable level will be at the forefront of future government programmes, and is likely to affect the attitude of the planning authorities towards the development of private housing for sale at the upper end of the market," the company said in a statement.
"The current re-focusing of the market towards the private rented sector could, however, open up further opportunities for companies prepared to invest in well-conceived and properly governed models for rental housing at both ends of the scale," Northacre added.
Shares in Northacre are trading up 0.7% at 59.40 pence Thursday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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