Member Article

Newcastle’s Grainger reports pretax profit increases as revenue hits £319 million

Newcastle-based residential property firm Grainger plc has reported significant revenue and pretax profit increases on the back of success in the South.

Profit before tax for the year was reportedly £81.1 million compared to a profit before tax of £64.3 million in 2013.

The firm said that the most significant movements which contributed to the 26.1% increase were a £11.3 million increase in profit from sales largely driven from development sales in the year, a £7.9 million decrease in interest costs and a £4.6 million increase in valuation gains from investment properties.

Group revenue increased to £319.1 million from £283 million the previous year.

Robin Broadhurst, outgoing chairman of Grainger, commented: “In my final statement as chairman of Grainger, I am pleased to announce that the Group has once again had a strong period of performance and is on solid ground for continued growth.

“There is significant value in the business for shareholders and I am excited by the prospects for the future of Grainger.”

Andrew Cunningham, chief executive of Grainger, said: “Grainger has had another period of strong financial performance and we have continued to significantly grow the asset value of the Company.

“Our net asset value and profits are up substantially, margins on sales have increased, our leverage is down and we have again seen the value of our portfolio rise faster than the general market.

“Following a period of very strong house price growth, particularly in London and the South East, we are now seeing more sustainable rates of growth.

“We are confident that we are in a good position for the forthcoming year, and our focus is set on growing the business through purchases of reversionary assets and investment in market rented assets and build to rent opportunities.”

This was posted in Bdaily's Members' News section by Clare Burnett .