LONDON (Alliance News) - Palace Capital PLC, which invests in commercial property outside London, on Monday reported a fall in pretax profit in the first half of its financial year after lower gains on revaluing investments, although the value of its portfolio still increased over the course of the six months.
Pretax profit fell to GBP7.6 million in the six months ended September 30, compared with GBP8.4 million the corresponding half the prior year, as rental income rose to GBP8.4 million from GBP3.7 million and revaluation gains fell to GBP2.3 million from GBP7.3 million.
The company's portfolio was valued at GBP140.4 million on September 30, up from GBP103.0 million on March 31.
Administrative costs were up to GBP985,000 from GBP586,000, while finance costs were up to GBP991,000 from GBP593,000.
"The company has made really good headway over the past three years. The team has completed a number of excellently timed acquisitions and is working hard on enhancing the value of all our assets via a comprehensive programme of active management," Chairman Stanley Davis said in a statement.
"Our ambition in the near term is to build critical mass and continue to grow our portfolio of commercial properties located outside London. The company is extremely well placed and I look to the future with continued confidence," Davis said.
Palace Capital increased its interim dividend to 7.00 pence per share from 6.00p.
Shares in Palace Capital were down 0.6% at 363.00 pence on Monday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Palace Capital (PCA)