Development Securities has reported a record level of pre-tax profit in its preliminary results which were published today.
The property development and investment company – which has more than 4 million sq ft of regeneration and development projects to its name to date – revealed that headline pre-tax profit climbed by a staggering 133 per cent to £45.4 million, compared to the previous year’s £19.5 million result.
This allowed for continued NAV growth, with the EPRA NAV per share increasing to 284 pence – an 8.4 per cent increase on last year’s price of 262 pence.
Much of this strong performance was down to a step change in the level of development and trading gains, which increased by 69 per cent from last year to £45.7 million.
In addition Development Securities saw a £11.2 million increase in the value of its investment portfolio, including its share in joint ventures, more than doubling last year’s £4.8 million increase.
Development Securities chief executive Michael Marx believes that steps taken during the past financial year will allow the firm to build upon this success in the years to come.
He says; “This has been a record year for the Company, delivering the highest level of underlying profitability to date.
“This was largely driven by a step change in the level of development and trading gains realised, leading to a material increase in shareholder distributions.
“We are confident of sustaining and building on this performance in the years ahead – we have a clear strategy, a strong leadership team and good visibility on a pipeline of significant development and trading profits in the years ahead.”
One of the most significant acquisitions for Development Securities during the financial year was that of the Cathedral Group in May 2014, which brought to the table exciting projects including the development of Brighton’s Circus Street and The Deptford Project in Lewisham.
Along with expanding Development Securities’ portfolio of projects, the acquisition is delivering strong value to date and has proven to be a profitable step forward in the company’s future.
During the course of the 12 months, Development Securities also chose to secure the management succession for the coming years, ensuring that the firm will benefit from strong leadership and many cumulative years of experience going forward.
Previous Post
Muse’s Bickerstaffe Square adds to Awards Tally
