News

Write-downs hit Ablon profits, but GRI rises

24 September 2008 12:29:00

Property owner and developer Ablon said demand for new office, retail and residential developments remains strong in central and eastern Europe, despite the recent economic downturn.

Gross rental income in the first half of 2008 rose 63.8% to €8.44m from €5.15m a year earlier.

The company slipped into the red, however, registering a pre-tax loss of €14.3m versus a profit of €22.7m in the first half of last year, after taking a €23.1m hit on the adjustment in value of its property portfolio; 2007's figures benefited from a €21.3m uplift in the value of investment property.

Net asset value per share eased to £3.53 (€4.41) from £3.66 (€4.65), primarily due, the company said, to a change in the assumptions that were used in the property appraisals. Independent valuation firm King Sturge reduced their estimate of latent development profits by 16% to €140.4m through rising costs and higher exit yields as well as time discount rates.

The loan to value ratio rose during the six month period to 33% from 31% at the end of 2007.

As previously announced, the board will not be proposing the payment of dividends in 2008, but will reconsider this policy next year.

All data suppied by Digital Look (15 minute delay)




Risk Warning

There is an extra risk of losing money when shares are bought in some smaller companies including 'Penny Shares'. There is a big difference between the buying price and the selling price of these shares. If they have to be sold immediately, you may get back much less than you paid for them or you may have difficulty in selling them. Past performance is not a reliable indicator of future results. The price may change quickly and it may go down as well as up. You could lose every penny put into a particular share.

The information contained above has been compiled from documented sources which are believed to be reliable but, due to their very nature, are subject to a degree of historical inaccuracy and have not been independently verified and cannot be guaranteed. The pages on this website are provided for information only. City Equities Limited will not accept responsibility for loss incurred by any person or body acting, or refraining from acting, as a result of information and/or opinions given anywhere on this website. Issued by City Equities Limited, Aldermary House, 10-15 Queen Street, London, EC4N 1TY. Registered in England. Registered No. 2742847. Registered Address: Amwell House, 19 Amwell Street, Hoddeson, Herts. EN11 8TS. City Equities Limited is Authorised and regulated by the Financial Services Authority. Registration No. 155051.