Pochin encouraged by commercial market

CONSTRUCTION group Pochin has said that it expects development activity within the group to remain subdued, although it has been encouraged by signs that the decline in commercial property values has halted.

The group’s Concrete Pumping division continues to suffer from low activity levels and over capacity, the company said in its interim statement for the period from June 1 to date.
 
“It is encouraging to note that the prolonged and severe decline in commercial property prices has come to a halt according to the latest Investment Property Database UK Monthly Index,” the statement said.

While the Property division is experiencing steady levels of occupancy in its investment portfolio, development activity is likely to remain subdued, it said.
It added that Pochin Construction was performing “creditably” in difficult trading conditions.

“Good progress is being made towards the successful completion of the large projects at HQ Chester and Welsh Assembly Government buildings at Llandudno,” it said.

The group also said that debt had remained stable during the period and that an emphasis on cost control was being maintained.

Annual accounts published in September revealed that last year’s modest profit of £1.8m had been wiped out and turned into a £9.4m loss for the year to May 31 2009.

Revenue also fell from £115m to £102m, and the group’s torrid year has resulted in it axing its final dividend payment.