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(Sharecast News) - Property investor First Property said on Wednesday that full-year pre-tax profits were expected to "significantly exceed" market expectations.
First Property said that despite "ongoing volatility" in property markets, it has had a successful financial year, benefitting from several one-off events, including profits made on the disposal of investment properties by one of its managed funds, in which it holds an associated interest.
Additionally, the AIM-listed group benefited from the early receipt of fees from another fund, following the early disposal of its properties, implemented several cost-cutting measures that resulted in total annual savings of £650,000, and also raised £2.96m through an open offer of new ordinary shares.
"These actions contributed to enhancing profits and strengthening the group's financial position. On an underlying basis (assuming no movement in the value of properties held), the group is now trading profitably," said First Property.
First Property stated the past few years "have been challenging" but said it was now emerging from "these difficult times" with a "strengthened balance sheet" and underlying profitability that has positioned it well for making "opportunistic investments" alongside the funds it manages.
As of 1125 BST, First Property shares were up 8.85% at 13.06p.
Reporting by Iain Gilbert at Sharecast.com
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