Commercial Property News

Humberts Group Plc. reported a slide into loss for the first half and said trading in the core residential agency business continues to be disappointing, with transaction volumes running at about 50% below the previous year due to the ongoing effect of the credit squeeze and a growing erosion of confidence in Humberts.

The company said its pretax loss for the six months ended March 31 was £15.9 million compared with a profit of £1.6 million last year. The loss includes a £13.95 million charge for goodwill impairment and winding down provision, arising from the disposal of the majority of the group's operating businesses after March 31, following the non-completion of the £2.25 million refinancing in May, the company said.

The company's turnover for the first half rose to £15.03 million compared with £13.62 million last year. Humberts said its staff costs rose to £9.28 million compared with £7.32 million last year while its other operating charges surged to £21.70 million compared with £4.85 million last year. The company said it now has a skeleton staff who will be carrying out an orderly winding down of the company over the coming months.

On June 11, Humberts said it sold certain of its assets to Mercantile Group for total of £3.16 million, and that advisors Smith & Williamson have been appointed to act in the restructuring and administration of Humberts Ltd. A general meeting of the Company has been convened for 3 July 2008 to change the name of the Company to Pedstowe plc. and the trading of the Company's Ordinary Shares on AIM will be cancelled as from 2 July 2008.