Pochin sees few signs of confidence building

MIDDLEWICH-based property and construction group Pochin’s has continued to make losses in the six months to November 30 as its sales fell back by 12% to £41.8m.

The firm said that a £470,000 pre-tax loss was a “substantial” improvement on last year, when write-downs in the value of investments led to it declaring a £4.37m loss.

“Nonetheless, conditions in the regional property market and construction sector generally remain subdued,” said chairman Richard Fildes.

Fildes said that its construction division had performed “creditably”, delivering a “near break even” performance, while its concrete pumping division also continued to improve, albeit remaining loss making and vulnerable to cuts in public sector spending.

Its property investment portfolio, which is now largely focused on the North West region, is slowly improving.

“The income from the division’s portfolio is proving resilient with low levels of void space, but opportunities for development remain limited by weak occupier demand and tight credit conditions,” said Fildes. “Steady progress is being made with disposals of stock in the former homes division.”

Fildes also confirmed that it had completed the sale of a development site in Birkenhead but added that it remains exposed to potential shortfalls from some joint venture schemes.

By the end of the six months to November 30, the firm’s net assets reduced by £300,000 to £25.6m.