Mucklow profit up 150% as property recovery kicks in
PROPERTY group A&J Mucklow Group has seen a surge in profit as a result of increased occupier and investor demand.
In its preliminary results for the year ended June 30, the Halesowen contractor/developer reported pre-tax profit of £40.7m, an 150% increase on 2013’s £16.3m figure.
The firm’s portfolio value has increased from £262.7m to £298.9m over the 12 month period.
Company chairman Rupert Mucklow said: “Property values have risen by 10.2% on the back of improved occupier and investor demand, which has helped increase our pre-tax profit by 150% and net asset value per share by 17%.
“The value of our property investment portfolio has benefited significantly over the last 12 months from improving economic conditions and a resurgence in confidence and activity from both occupiers and investors.
“We acquired two investment properties in the first half year in Halesowen and Kings Heath, Birmingham for £6.71m. We started our pre-let development at Worcester in the second half year, with an end value of around £10m; acquired and refurbished a vacant industrial building in Tyseley, Birmingham for £1.74m and sold an office building in Worcester for £3.85m.
“The property investment market became very competitive in the second half of the year. We found it more difficult to acquire suitably priced investment properties, so we shifted our focus towards development and are looking for other opportunities to add value.”
Mucklow said occupational demand for modern industrial property in the Midlands has been steadily improving for the last 18 months and revealed that the firm starting to achieve rental growth in certain locations, on the back of a shortage of available space.
“The company is in good shape with a quality investment portfolio and a strong balance sheet,” he said.
“We expect the regional occupier and investment markets to continue to improve over the next 12 months and rental growth to accelerate as the limited supply of available space falls.”
