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First Property Group PLC - London-based property fund manager and investor - Swings to a pretax profit of £7.1 million from a loss of £5.1 million. Explains that a restructuring of the finance lease of its office building in Poland resulted in an exceptional gain of €9.0 million and notes an impairment charge of £7.0 million the year before. Revenue falls 29% to £8.6 million from £12.1 million. Blames the expiry of the lease at same office block, which resulted in a reduction in rental income of £3.2 million. Reinstates final dividend with a payout of 0.25 pence per share. This takes its full-year payout to 0.50 pence.
Expects occupational demand to pick up, which should result in a ‘commensurate increase’ in the value of its properties. In Poland, it notes ‘the effects of inflation, in particular in the cost of building materials and labour (which far exceeds the general rate of inflation),’ which ‘should curtail new supply forcing rents to rise.’
Current stock price: 31.20 pence, up 4.0% on Thursday
12-month change: down 11%
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