Safeland profit up 18% on revaluations; to review cost base
Source - SMW
Property development and investment group Safeland booked an 18% rise in first-half profit, owing to higher asset re-valuations, but revenue fell sharply and the company said it would review its cost base.
Pre-tax profit for the six months through June rose to £2.4m, even as revenue slumped to £2.9m, down from £13.0m.
The company pinned the fall in revenue on less rental income and lower proceeds from property sales.
'I repeat the statement in 2017's full-year results that the market appears to us to be constrained by an economic outlook which in turn is affected by political conditions at home, in the EU, and worldwide,' managing director Larry Lipman said.
'I believe that this has created a cautious environment, verging on stagnation which may continue for some time.'
'Whilst we will continue to seek out value adding opportunities, the generally negative environment with little current opportunity suggests that it would be prudent for the board to review the company's cost base, including the value of maintaining the company's AIM quotation.'
'A further announcement will be made in due course.'