12 May 2010 07:00
A & J Mucklow Group plc
Interim Management Statement
12 May 2010
A&J Mucklow Group Plc, the Midlands based Real Estate Investment Trust, issues its Interim Management Statement covering the period since 31 December 2009.
Rupert Mucklow, Chairman, said:
''The Group has continued to make steady progress during Q3 and having now collected the final quarters' rent for the period up to 23 June 2010, remains on target for another satisfactory year.
Retaining existing tenants and attracting new ones is still a challenge, but occupancy levels have been maintained at around 92% and in the last month, we have noticed an improvement in the number of serious enquiries for existing and pre-let business space.
Property values appear to have also improved since our last valuation in December 2009, as yields have compressed further, due to a rise in Investor demand and reduction in available stock. We hope that current economic and political uncertainties do not impede these encouraging signs of recovery for industrial property.
We acquired one further investment property during the period at a cost of £3.7m. The property is prominently located in Tyseley, Birmingham and comprises a 55,000 sq ft industrial unit, built to a high specification in 2002 and let at a current rent of £0.3m pa until 2022.
Our 128,500 sq ft Costco warehouse development in Coventry is progressing well and remains on time and budget.
Capital expenditure incurred on these two projects totalled £6.8m during the period. As a consequence, borrowings (net of cash) increased to £46m at 30 April 2010, whilst undrawn bank facilities amounted to £42m. Net debt to equity gearing was 27% and there are no bank loans due for refinancing before 2014, or any issues concerning banking covenants.
We remain committed to protecting occupancy levels and rental income on our existing properties. We are also now starting to see and pursue a number of suitable investment and development opportunities, which are looking financially viable again.
Other than stated above, there has been no significant change in the Group's financial position since 31 December 2009.''
For further information contact:
Rupert Mucklow (Chairman)
Main line: 0121 550 1841
Direct line: 0121 504 2121
Mobile: 07815 151254
David Wooldridge (Finance Director)
Main line: 0121 550 1841
Direct line: 0121 504 2108
Mobile: 07788 686414