LONDON (ShareCast) - Property development group Raven Mount said it has taken its first steps to becoming an external property fund manager after the successful launch of Raven Russia.
The group announced its interim result today and said short-term profitability may be affected somewhat as the group looks to create long-term prosperity.
"Whilst this may reduce profitability in the short run we believe that cash can be better deployed elsewhere, for example in Raven Russia, so that in the long term the company is more profitable," it said.
Turnover for the six months to June rose slightly to £40.4m as opposed to £40.2m, while operating profit rose from £1.9m in 2004 to £2.8m. NAV per share was 79p compared to last year's 90p.
Pre-tax profit soared to £3.1m from £720,000, but the figure was helped by the sale of land, which contributed £6.9m towards the final figure. Without this the group would have registered a pre-tax loss of £3.8m.
Market conditions for the Swan Hill development sites were poor and most of those sites are loss making.
"The profitability of the company is expected to continue to be hampered by the poor performance of the Swan Hill sites," said Raven.
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