Interim Management Statement

RNS Number : 1508C

Highcroft Investments PLC

09 November 2009

 

Highcroft Investments PLC

Interim Management Statement in respect of the period 1 July 2009 to 6 November 2009

The board of Highcroft Investments PLC today approved the following statement in respect of the current trading period which will end on 31 December 2009.

Financial performance

Our focus continues to be on resolving the property voids in Warrington and Yeovil.  The public house unit in Warrington has been let to a major operator at a rent of £50,000 p.a., uplifted annually to RPI on a 30 year lease, with a 15 year tenant break but this remains subject to licensing. We have recently taken possession of the retail unit in Warrington and have begun the marketing process. There continues to be interest in the Yeovil unit at a modest level and we are currently encouraging a prospective tenant with a good quality covenant to take a ten year lease. If this is successful then it is likely to involve some capital expenditure in improving the unit.

We continue to monitor closely the payment performance of our tenants and we are achieving a high level of prompt payment.

Dividend income has remained at a generally lower level this year and has been particularly affected by lack of income from our holdings in banks.

Financial position

Cash flow remains strong and we have been net sellers of equities. The most recent equity portfolio valuation is £7.1m.  The lack of significant gearing, medium term borrowings now being just over  £600k, gives us the flexibility to continue to take a medium and longer term view.

There are a number of factors affecting the valuation of our properties, as with any properties, but we are hopeful that the period since the beginning of 2008 has seen the worst of the downward valuations. There are signs that the market has stabilised and that there may be valuation uplifts in some sectors.

For further information, contact:

Highcroft Investments PLC

John Hewitt                                          01865 840023

Charles Stanley Securities

Philip Davies                                         0207 149 6000

9 November 2009

 

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