Pre-tax profit down for Mucklow group
Halesowen-based industrial property group A & J Mucklow saw a £13 million fall in pre-tax profit for the last six months of 2015.
It was down from £27.4 million a year before to £14.4m although gross rental income was up 9.7 per cent from £10.5m to £11.5m and the group's net asset value increased from £268.6m to £275.8m.
The value of its portfolio gained £6.9m to £359.8m.
Chairman Rupert Mucklow said it has been another encouraging performance by the group with occupancy rate of its properties reaching a high of 95.3 per cent.
The profit figure for the last six months of 2014 had included a revaluation surplus of £20.9m
"Our Midlands industrial portfolio has continued to benefit from steady occupier demand and a shortage of available, modern space," said Mr Mucklow.
Approximately one quarter of Mucklow's vacant space was reserved by prospective tenants at the end of December.
Mr Mucklow said the regional investment market had become more subdued since November, mainly because some institutional investors had become more selective and there had only been a limited number of quality buying opportunities.
"We are still actively looking to acquire further modern investment properties in the Midlands with long term income and capital growth potential, but our emphasis is now more focused towards creating our own industrial investments, by carrying out pre-let development while there is good occupier demand," added Mr Mucklow.
In November Mucklow entered into an option agreement with Wolverhampton City Council and Staffordshire County Council to promote and develop a prime 15-acre industrial site adjacent to the new Jaguar Land Rover engine manufacturing facility at i54 in Wolverhampton. The land can accommodate up to 275,000 sq ft of advanced manufacturing space and is immediately available for pre-let development.
Mr Mucklow said the second half of the financial year had started well and the group remained optimistic about its prospects for the full year.
"However, it is more difficult to predict what impact the slowdown in the global economy and other macro factors may have on the Midlands property market in the medium term," he added.
