Revaluation boosts A & J Mucklow profits
Halesowen-based investment property group A & J Mucklow's profits were boosted by a revaluation surplus of £13 million in the year to the end of June.
The group's pre-tax profits improved from £25.2 million in 2015-2016 to £29.6m.
The value of the Mucklow property portfolio was up from £384.2m to £386.9m at the year end.
Chairman Rupert Mucklow said it had been another steady performance by the group.
"Our property portfolio continued to perform well, in favourable market conditions. We maintained a high occupancy level throughout the year and delivered further rental growth," he added.
The group, founded in 1933, re-financed the majority of its banking facilities, extending the terms of loans and reduced the average cost of borrowing.
Its board is proposing to increase the ordinary dividend by three per cent again this year, maintaining an unbroken dividend record spanning over five decades.
The group said that the occupational market in the Midlands remained active throughout the year, with demand outstripping supply and it achieved average rental growth of around 10 per cent on new lettings, lease renewals and rent reviews.
Construction on A & J Mucklow's first pre-let development at i54 Wolverhampton started in the second half of the year, with completion anticipated for early 2018. The property will comprise a 44,250 sq ft industrial unit and the initial rent will be £280,000 a year.
Mr Mucklow said that since the year end the number of tenant enquiries for its vacant properties had continued in a similar manner as before and it was not expecting conditions to change much over the next six months.
