True to form, real-estate fund manager First Property Group (FPO) put in a strong performance last financial year, justifying a 27 per cent increase in the final dividend to 1p.
Bolstered by the acquisition of six new properties in Poland and Romania, the group saw a 30 per cent increase in operating profit to £9.4m - a figure that would have been even higher but for a weakened euro. Chief executive Ben Habib remains unconcerned about currency headwinds, though, as First Property is not currently focused on selling its European portfolio.
Of greater macroeconomic significance to the group is the European Central Bank's quantitative easing programme. Coupled with low or negative interest rates, the mass bond buying is helping the group bank serious returns on high-yielding assets. Several more of these have been identified in eastern Europe, and are likely to provide a home for the £12m of cash on First Property's balance sheet this year.
Broker Arden Partners forecasts adjusted EPS and pre-tax profit of 4.6p and £6.8m, respectively, for the current financial year, down from 6.5p and £8.1m in the 12 months to March 2015.
FIRSTY PROPERTY GROUP (FPO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 44p | MARKET VALUE: | £50m | |
| TOUCH: | 43-45p | 12-MONTH HIGH: | 44p | LOW: 26.5p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | 6 | |
| NET ASSET VALUE: | 27p | NET DEBT: | 314% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 9.3 | 4.0 | 2.9 | 1.08 |
| 2013 | 10.6 | 3.5 | 2.3 | 1.08 |
| 2014 | 18.0 | 6.6 | 4.8 | 1.12 |
| 2015 | 18.5 | 8.1 | 7.2 | 1.35 |
| % change | +3 | +23 | +52 | +21 |
Ex-div: 20 Aug Payment: 30 Sep | ||||
