Palace Capital back in the black after 'transformational' year

19th Jun 2014 11:26

Shares in Palace Capital jumped on Thursday after the AIM-listed commercial real estate company reported a return to the black following what it described as a "transformational" period. The firm, which changed its year-end to March 31st, posted a profit of £21.23m for the 14-month period compared to a loss £0.16m for the previous 12 months. Turnover from continuing operations jumped from £0.2m to £2.1m, with the acquisition of the Sequel Portfolio adding a further £3.0m. The cost of sales climbed from £0.5m to £0.6m. Net asset value per share rose from £2.31 to £3.56, which the company is confident will continue to grow. Chairman Stanley Davis said: "Palace Capital has been completely transformed [...] Not only have the investment markets continued to improve since March 2014, but many local economies outside London are strengthening, which is encouraging occupiers to spend money on their premises. "This is leading to competition for the best space. This calendar year we have completed a number of transactions that will have added further value to the properties in the portfolio."In the current year has started well, with the group has recently concluding three transactions, which will be earnings and value enhancing. Shares had jumped 17.76% to 315p by 11:17.NR