Daejan Holdings (DJAN)

 

Daejan pre-tax profits up

Daejan Holdings reports profit before tax for the six months to the end of September of £134.5 million (2013: £76.5 million) after accounting for the net valuation gain on investment properties of £107.9 million (2013: £47.7 million) and fair value losses on financial instruments of £0.6 million (2013: £8.5 million gains).

There was an increase of £10.6 million (21.6%) in gross rental income and the underlying net profit before tax, i.e. excluding net valuation movements, was £27.3 million (2013: £20.4 million).

Gross rental income and underlying profit before tax both benefited from the one-off impact of the settlement of a significant contested rent review, referred to below.

The property portfolio has been valued by the Directors based on the recommendations of the Group's external advisers. The overall net valuation gain of £107.9 million (2013: £47.7 million) reflects net gains in both the UK and USA portfolios.

In the UK, there has been further strong growth in Central London and Home Counties residential property; growth in residential values in the rest of the UK is also now well established.

Central London commercial property continues to strengthen, but demand and values in the provincial markets remain difficult.

In the US, the rate of increase in values observed during the initial recovery from the financial crisis has slowed, but values in Boston have benefited from continued strong demand.

At 9:53am: (LON:DJAN) Daejan Holdings PLC share price was +127.5p at 5107.5p