Daejan Holdings Plc - Interim Results
Deajan Holdings Plc
Interim Results for Half-Year ended 30 September
- The loss before tax for the period was £18.3 million (2018: Profit £61.1 million) after accounting for the net valuation loss on investment properties of £43.3 million (2018: Gain £32.5 million).
- The property portfolio has been valued by the Directors based on the recommendations of the Group's external advisers.
- Before the impact of valuation movements both our UK and US businesses generated profits. Whilst the UK revaluation produced a surplus of £2.8m (2018: £32.5m), in the USA new rent regulations affecting our properties in New York state produced a downward movement which resulted in a reduction in the valuation of our US portfolio of £46.1m (2018: nil)
- We continued to see strong increases in rental income in the UK and USA, primarily driven by the letting of completed development projects in the UK and property acquisitions in the USA.
- Until there is greater clarity on the timing and terms of the UK's departure from the EU and the outcome of the UK general election in December, the high levels of political and economic uncertainty in the UK are expected to continue. The economic outlook for the USA remains more promising.
- The principal risk factors affecting the remainder of the financial year continue to be exposure to movements in the valuation of the Group's investment properties, movements in the sterling/dollar exchange rate, incidence of voids and bad debts and adverse changes to the regulatory environment.
- An interim dividend of 35p per share will be paid on 6 March 2020 to shareholders on the register on 7 February 2020.