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Property Recycling

  • BY: Andrew Hore |
  • POSTED: 11/09/2007 |

Even though it didn’t sell any of its properties Property Recycling still managed to make an interim profit.

Although turnover dipped from £984,000 to £406,000 in the six months to June 2007 the underlying rental income increased. Annualised rents are around £1m. Pre-tax profit fell from £379,000 to £75,000. An unchanged dividend of 0.5p a share has been announced.

Following the purchase of a site in Colsterworth Property Recycling has pro forma net debt of just over £600,000.

Although IKEA has pulled out of buying the Stanton site there is already interest in it from other potential buyers and a sale now could generate more cash than the IKEA deal. The planning approval for Stanton lasts another four years. Property Recycling has granted a £2m option over its Brigg site to a company intending to build a biomass power station. A £30,000 option fee is non-returnable.

Executive chairman Paul Rackham says it has been difficult to find value but he believes that the speculators are moving out. There may even be some distress sales. Property Recycling isn’t using its banking facilities of up to £30m so it still has a lot of cash to invest.

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