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Write-down causes year loss at A&J Mucklow

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Date: Wednesday 03 Sep 2008

LONDON (ShareCast) - Falling property prices have plunged A&J Mucklow into a full year loss and it said the challenging market conditions mean a further drop in values is possible.

Tighter credit conditions and changing investor attitudes have knocked the pricing of land and commercial properties across the UK, grumbled the property firm.

That’s caused it to write down the value of its property portfolio by £41.2m, creating a pre-tax loss of £26.7m for the year ended 30 June and a near-15% drop in net asset value per share.

Last year, A&J reported a profit of £33.4m that included an increase in the market value of the group's investment properties and development land of £16.3m. Revenue has fallen to £18.4m from £25m in 2007.

“The economic indicators for the next 12 months do not look very favourable, which could impact on the UK occupier market and cause a further deterioration in property values” warned the firm.

But it added: “The majority of our remaining investment properties are very modern and securely let to strong covenants and continue to provide us with good long term growth prospects.”

The final dividend of 9.65p takes the full year payout up 20% to 17.68p.

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