15 May 2008 07:00
Highcroft Investments PLC
Interim Management Statement in respect of the six months ending 30 June 2008
The board of Highcroft Investments PLC has approved the following statement in respect of the six months ending 30 June 2008:
As shareholders already know, our conversion to a REIT took place on 1 April 2008 and the company's first property income dividend will be paid in October 2008. Shareholders will also be aware that this conversion took place at our second attempt and the additional costs will be recognised in this period. The property portfolio is being valued as at 31 March 2008 for the purpose of agreeing the conversion charge for entry into the REITs regime. We have a provisional valuation of £33.1 million which would generate a conversion charge of £662,000.
Conditions in the economy have affected the performance of the company and as a result we have two voids, one in Yeovil and one in Warrington. These two properties were previously let at a combined rent of £210,000 p.a. and there will be associated costs in addition to the lost rent. New tenants are being sought for each property and courses of action other than re-letting are also being explored.
There were no acquisitions property and one residential property was sold in April. Capital activity in the equity portfolio was at a relatively low level.
At 31 March 2008, the equity portfolio was valued at £9.8 million, group cash was £1.1 million and group debt £1.8 million. Since then group debt has been reduced by £500,000.
15 May 2008
For further information, contact:
Highcroft Investments PLC
John Hewitt 01865 840023
Charles Stanley Securities
Philip Davies 0207 149 6000