Grainger enjoys strong Q1, cautiously optimistic for year

6th Feb 2014 08:01

- Strong start to financial year- Sales boosted by disposals- Optimistic for the rest of the yearFTSE-250 residential property owner and manager Grainger said it enjoyed a strong start to the year, amid strengthening market conditions, and is cautiously optimistic for the remainder of its fiscal year. For the four months to January 31st, group sales increased to £149.3m from £64.6m the year before, due to the one off disposal of the home reversion portfolio.The Newcastle-upon-Tyne headquartered firm said gross sales rose to £39.0m at an average margin of 49.4% from £32.4m at a margin of 41.1%.Gross rents slipped to £19.3m from £27.3m before after the group disposed a number of properties in 2013. Fees and other income fell to £3.8m from £4.6m, reflecting the timing of project completions. Grainger commented: "The current year has started well and we are cautiously optimistic about the future. The slow return to general UK economic growth is encouraging and this should support a broader based housing market recovery, which will reach beyond London and into the regions. "Our reduced LTV and increased headroom provide us with greater financial flexibility to respond to changing market conditions."Grainger said it was encouraged by the improvement in market conditions supporting valuations, sales and rental income and have started to evaluate a number of investment opportunities.Group net debt reduced to £917m at January 31st from £959m at September 30th 2013.CJ