Date: |
9 April 2014 |
On behalf of: |
First Property Group plc ("First Property", "the Company" or the "Group") |
Embargoed: |
0700hrs |
First Property Group plc
Financial year-end trading statement
First Property Group plc (AIM: FPO), the property fund management group, is pleased to announce that profit before tax for the year to 31 March 2014 is expected to be broadly in line with broker forecasts. Preliminary results for the year are scheduled to be released on 3 June 2014.
The financial year just ended witnessed the Group's return to development activity in the UK and the resumption by it of investment in income producing commercial property in Poland. The combined effect of these activities resulted in material increases to broker forecast earnings for the Group for the years to 31 March 2014 and 2015.
The contribution made to our earnings by the acquisition and subsequent sale of the office blocks in Woking and Bracknell amounted to some £3.8 million. This contribution is non-recurring, though we expect to also earn development profits in the year to 31 March 2015 from Fprop PDR, our new partnership with clients of a leading global investment business, established on 24 October 2013. To date this new partnership has committed to invest some £14 million in five properties and has a further £8 million of property under offer.
The balance of the Group's increased profit for the year to 31 March 2014 is principally attributable to earnings derived from new investments made in three income producing commercial properties in Poland. These properties were acquired during the second half of the financial year and have not made a full year's contribution to the Group's earnings. For the year to 31 March 2015, we would expect these three properties to contribute some £1.2 million to the Group's profit before tax and non-controlling interests.
Assets under management within the seven funds managed by First Property Asset Management (FPAM) amounted to some £341 million at 31 March 2014.
Commenting on the trading update, Ben Habib, CEO of First Property Group plc, said:
"I am very pleased by the significant increase in the Group's earnings, resulting from our return to development in the UK and the resumption of investments in Poland.
"We have come through the credit crunch in excellent shape, without having to raise additional equity and having paid dividends throughout this difficult period. I hope and expect that the financial crisis is now largely behind us and that we can translate the improved investment environment into growing profits for the Group and its shareholders."
-Ends-
For further information please contact:
First Property Group plc |
Tel: 020 7340 0270 |
Ben Habib (Chief Executive & Chief Investment Officer) |
www.fprop.com |
Jeremy Barkes (Director, Business Development) |
[email protected] |
Arden Partners |
Tel: 020 7614 5900 |
Chris Hardie (Director Corporate Finance) |
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Redleaf Polhill |
Tel: 020 7382 4763 |
George Parrett / Hannah Pollack |
[email protected] |
Notes to investors and editors:
First Property Group plc is a property fund manager with operations in the United Kingdom and Central Europe. Its business model is to:
· Raise third party funds to invest in commercial property;
· Co-invest in these funds and thereby earn a return on its own capital invested; and
· Earn fees from the management of these funds. Fees earned are typically a function of the value of assets under management as well as the performance of the funds.
The investment performance of the Group's funds under management in Poland and in Central Europe is ranked No.1 versus the Investment Property Databank (IPD) universe for Central & Eastern Europe (CEE) over the eight years to 31 December 2013, having previously ranked No.1 versus the IPD CEE universe over the three, four, five, six and seven years to 31 December 2008, 2009, 2010, 2011 and 2012 respectively.
First Property Asset Management Limited is authorised and regulated by the Financial Conduct Authority. Further information about the Company and its products can be found at: www.fprop.com.
