LONDON (Thomson Financial) - Sovereign Reversions Plc. swung to a full-year pretax loss but said it is enthusiastic about the group's prospects in this harsher economic environment.

The company reported a pretax loss of 5.4 million pounds compared with a profit of 7.2 million pounds year ago.

The company also reported a 5.8 percent fall in net asset value to 322.4 pence a share from 342.3 pence year ago.

Sovereign Reversions, an adviser and provider of finance to retired homeowners through equity release, said a deteriorating short-term outlook for residential property should provide opportunities for it to arrange an increasing number of home reversion plans.

The harsher economic conditions should benefit its equity release activities, as increasing numbers of elderly homeowners seek equity release solutions to sustain and improve their lifestyles, it added. TFN.newsdesk@thomson.com rda/rfw

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