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Commercial Property News
Speymill H1 profits double last years but FY outcome deteriorating
Property investor Speymill Plc. more than doubled pretax profits during the first half helped by a 60% rise in turnover, but warned that full-year profits may come in 30-35% lower than current market expectations.
The company said that in addition to earlier-announced contract deferrals, its contract business is now facing some cost increases on certain projects and slippage on some site start dates which will have a further material impact on 2008 results.
However, Speymill said it sees several growth opportunities for each of its businesses and is currently working on potential new developments in both Europe and the Far East.
Despite the construction sector downturn, the company said it is seeing increasing volumes in its focused hotel-based market with forward order prospects rising to £165 million.
Pretax profits for the six months to June 30 came in at £3.2 million, up from £1.4 million. Turnover for the period was £35.30 million.
Future prospects depend to a large extent on whether it will be possible to raise debt finance easily or not.
The company said that in addition to earlier-announced contract deferrals, its contract business is now facing some cost increases on certain projects and slippage on some site start dates which will have a further material impact on 2008 results.
However, Speymill said it sees several growth opportunities for each of its businesses and is currently working on potential new developments in both Europe and the Far East.
Despite the construction sector downturn, the company said it is seeing increasing volumes in its focused hotel-based market with forward order prospects rising to £165 million.
Pretax profits for the six months to June 30 came in at £3.2 million, up from £1.4 million. Turnover for the period was £35.30 million.
Future prospects depend to a large extent on whether it will be possible to raise debt finance easily or not.
Mon, 22nd Sep 2008