Improving Regional Markets boost Mucklow Profits

Posted on 3 September, 2014 by Cliff Goodwin

A and J Mucklow — the largest Stock Exchange listed investment property company in the Midlands — has reported a 150 per cent surge in its annual profits.

Improving-Regional-Markets-boost-Mucklow-Profits

81-year-old firm, which went public in 1962, has also seen the value of its portfolio increase from £262.7m to £298.9m over the 12 months to the end of June.

Publishing its preliminary results, the Halesowen company said increased demand from both occupiers and investors had driven the surge in its pre-tax profits; up from £16.3m last year to almost £41m this.

With its portfolio focused mainly on the West Midlands, Mucklow owns and manages more than three-million square feet of commercial property that ranges from multi-let industrial estates to larger distribution units, offices and retail.

“The value of our property investment portfolio has benefited significantly over the last 12 months from improving economic conditions and a resurgence in confidence and activity from both occupiers and investors,” said chairman, Rupert Mucklow, in his annual report.

“Property values have risen by 10.2 per cent on the back of improved occupier and investor demand, which has helped increase our pre-tax profit by 150 per cent and net asset value per share by 17 per cent,” he added.

There is now overwhelming evidence, stressed Mucklow, that the recovery is kicking in. Occupational demand for modern industrial property in the region had been steadily improving for the last 18 months and showed his company was starting to achieve rental growth in certain locations, but only on the back of a shortage of available space.

Among the group’s activities during the financial year was the acquisition of two investment properties in Halesowen and Kings Heath, Birmingham, for £6.71m. It began work on a pre-let development at Worcester, expected to have an end value of around £10m, and acquired and refurbished a vacant industrial building in Tyseley, Birmingham for £1.74m. It also disposed of a Worcester office building for £3.85m.

“The property investment market became very competitive in the second half of the year. We found it more difficult to acquire suitably priced investment properties, so we shifted our focus towards development and are looking for other opportunities to add value,” said Mucklow.

Describing his family-run firm as being “in good shape with a quality investment portfolio and a strong balance sheet,” he added that, “we expect the regional occupier and investment markets to continue to improve over the next 12 months and rental growth to accelerate as the limited supply of available space falls”.




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Interest Rates Impact on Commercial Property

Commercial Property Investment Outlook for 2023

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants