Half year profits down for A & J Mucklow

They were down from £14.4 million for the same period in 2015 to £9.1m although net asset value increased from £280.6m to £282.3m.

The valuation of the group's property portfolio was up to £373.6m from £364,2m at the end of June.

Chairman Rupert Mucklow said it had been another productive performance by the group with occupancy levels remaining high and underlying profit before tax continuing to grow, through active asset management and prudent investment acquisitions.

"We have also taken advantage of current economic conditions to re-finance the majority of our banking facilities, reducing our average cost of borrowing and extending the terms of the loans," he added.

The pre-tax profit figure included a revaluation surplus of £500,000. The previous year's figure was helped to the tune of £6.9m.

The directors have declared an interim dividend of 9.88p per ordinary share, an increase of 3% over last year.

The group said the number of tenant enquiries for Midlands' industrial property had remained steady during the first six months of its financial year and, so far, there had been no sign of any slowdown in activity.

It added that industrial property values in the Midlands have remained stable and property yields unchanged since its previous valuation on June 30.

During the period Mucklow bought a prominent 70,182 sq ft industrial/warehouse building in Barton-under-Needwood for £5.6m.

Terms were agreed in November on its first pre-let development at i54 Wolverhampton. It is building a 44,250 sq ft industrial unit for Tentec, a subsidiary of Atlas Copco. Completion is expected in December.

Mr Mucklow said it was still too early to predict what the longer-term impact of leaving the EU will have on the UK economy and our business.

"However, for our second half-year, we expect to continue to benefit from the robust, regional industrial property market and remain positive about prospects for the full year," he added.