Profits down for A & J Mucklow

They were down from £56.2 million to £25.2m, but the group's portfolio value increased from £349.7m to £364.2m in the year to the end of June.

Mucklow chairman Rupert Mucklow said it had been another solid performance by the group, which had resulted in further increases in underlying profit, net asset value and ordinary dividend per share.

He said the vacancy rate at the end of June had reduced to an historic low of 3.2 per cent.

"Midlands industrial property continued to benefit from strong rental growth, as a consequence of steady occupational demand throughout the year and a diminishing supply of modern space.

"Since our year end and post the EU referendum, the regional property market has remained buoyant and, so far, does not appear to have been affected by the decision. Our vacancy rate has subsequently fallen to below three per cent," added Mr Mucklow.

The group's underlying pre-tax profit, which excludes revaluation movements and profit on the sale of investment and trading properties, increased by 7.9 per cent during the year to £15m.

The statutory pre-tax profit for 2015 included a revaluation surplus of £42.3m.

Mucklow completed 32 new lettings and 26 lease renewals during the year and rental growth from new lettings and lease renewals averaged around 10.0 per cent.

Two investment properties were bought during the financial year at a total cost of £4m including a 17,000 sq ft industrial unit in Halesowen.

Mucklow entered into an option agreement during the year 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.

"We are currently in detailed discussions on the first proposed pre-let building of 43,000 sq ft," said Mr Mucklow.