Mucklow sees dramatic swing back to profits
HALESOWEN-based property developers and investors Mucklow (A&J) has seen a dramatic swing in its fortunes, it reports today.
For the 12 months ended June 30, 2010, Mucklow has posted a pre-tax profit of £36m, compared with a pre-tax loss of £52m for the same period last year.
The underlying pre-tax profit, which excludes the benefit of capitalised interest, fair value movement and profit from the disposal of properties, was £11.3m, up just £200,000 on 2009.
Mucklow’s property portfolio has also increased in value over the same period from £201m to £236m while its occupancy rate has climbed slightly by 1% to 91.5%.
Net rental income for the 12 months stands at £16.5m which is a year-on-year increase of £600,000.
In his chairman’s statement, Robert Mucklow said: “The group’s modern industrial and commercial portfolio, together with its strong balance sheet, have provided solid returns and sound protection throughout the economic downturn, which has enabled us to withstand the dramatic falls in UK property values and allowed us to maintain an unbroken dividend record spanning over 40 years.
“Economic uncertainty is expected to persist for some time and any recovery in the property market is likely to be sporadic.
“Despite these difficult conditions, I am pleased to report an encouraging set of results for the last 12 months, which show a healthy rise in asset value and underlying profits.”
Mucklow was founded in the West Midlands in 1933 and its principal activity is to develop and invest in industrial and commercial buildings around the region.
Last month it completed the development of a 128,500 sq ft warehouse in Coventry for cash and carry chain Costco.
Mucklow’s board has recommended the payment of a final dividend of 9.94p per ordinary share which will be paid in January if approved by shareholders.
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