McKay Securities profits fall

2nd Jun 2011 11:09

The so-called north-south divide has been a common theme in company results lately, but commercial property developer McKay Securities pointed to the differing pace of recovery between London and the rest of the South East as it delivered full-year results.Pre-tax profits for the year to 31 March came in at £4.5m, down from £15.3m the previous year due to reduced valuation gains. The total dividend for the year edges up to 8.3p from 8.2p."Over the year there has been continued improvement across all the Group's markets, with the pace of recovery in central London greater than in the South East," the company said."Improving rental values and diverse investor demand generated income and contributed to capital growth within the group's central London office portfolio."The company, which has properties in locations such as the City of London, Croydon, Reading and Staines, said the potential of its portfolio will be released once the pace of recovery in the South East picks up. McKay also has a large office in Glasgow, which saw its valuation fall, but the company said it has been held due to its prime location. ---RG