First Property profits rise despite market pressures

(Sharecast News) - First Property Group reported higher interim profit despite continued market pressures on Thursday, as asset values improved and the company reduced its net debt through property disposals.

Profit before tax for the six months ended 30 September rose to �1.48m from �1.16m a year earlier.

Net assets at market value increased to �56.47m from �52.99m at the end of March, lifting adjusted net asset value per share to 38.07p from 35.72p.

Total assets under management fell to �193m from �220m, although the weighted average remaining term on fund management contracts lengthened to four years and five months.

Cash balances declined to �3.29m at the period end from �4.82m in March, but subsequently increased to around �7m by 31 October following the sale of two directly held properties that generated about �4m of proceeds.

Net debt was cut to �10.09m from �19.55m, reflecting the disposals and improved liquidity.

Chief executive Ben Habib said the group had performed resiliently in the face of a difficult operating backdrop.

"I am pleased by these results which reflect continued improvement in the Group's underlying assets and operations," he said.

He added that lockdowns, altered working patterns, government policy, higher interest rates and "a marked withdrawal of capital from the sector" had created a challenging environment for commercial property investors, but noted that First Property had "navigated these difficult times relatively well."

Habib said conditions remain tough, but expressed confidence in the company's ability to preserve and enhance value.

"The markets and economy continue to be challenging," he said.

"Notwithstanding this, I anticipate we will successfully go on protecting asset values as best as possible and adding value whenever the opportunity to do so arises."

At 1506 GMT, shares in First Property Group were up 7.42% at 16.65p.

Reporting by Josh White for Sharecast.com.