News Column

Grainger 10-Month Sales Revenues Down, But Profits Rise

August 6, 2014

Sam Unsted

LONDON (Alliance News) - Grainger PLC Wednesday said group sales revenues fell in the ten months to July 31 but profits were boosted on the back of better margins on its sales and a rise in prices achieved against the comparable period last year.

The FTSE 250-listed residential property company said group sales revenues totalled GBP236.5 million for the period, a drop against the GBP258.7 million a year earlier. The fall came in spite of a rise in the number of units sold by the firm over the period, up to 2,358 against 2,091 a year earlier.

But profits rose to GBP71.1 million from GBP59.1 million in 2013, after margins on its sales rose 49% and sales achieved were up around 13% on vacant possession value in September 2013.

Grainger said its sales pipeline at the end of July was GBP312.8 million, down from the GBP390.4 million a year earlier.

Gross rents for the group were GBP47.3 million, down from GBP61.4 million last year but in line with Grainger's expectations following assets sales the year before.

Fees and other income for the group rose to GBP10.5 million from GBP9.9 million.

"We have delivered a strong performance across all parts of the business over the period and we anticipate that our assets will continue to outperform the wider housing market," said Grainger Chief Executive Andrew Cunningham.

Grainger said it is seeing positive movement in house prices in some of its regional markets, offsetting the moderation of prices seen in London and the South East.

It struck a note of caution, however, regarding the recent measures taken by the Bank of England in the mortgage market and the Mortgage Market Review. The firm said this had slightly dampened sentiment in the market, but said it has not yet seen any significant, sustained impact from the measures.

Grainger shares were down 1.1% in early trade Wednesday to 215.80 pence, putting it among the biggest fallers on the FTSE 250.

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Source: Alliance News

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