A and J Mucklow — the largest Stock Exchange listed investment property company in the Midlands — has reported a 150 per cent surge in its annual profits.
81-year-old firm, which went public in 1962, has also seen the value of its portfolio increase from £262.7m to £298.9m over the 12 months to the end of June.
Publishing its preliminary results, the Halesowen company said increased demand from both occupiers and investors had driven the surge in its pre-tax profits; up from £16.3m last year to almost £41m this.
With its portfolio focused mainly on the West Midlands, Mucklow owns and manages more than three-million square feet of commercial property that ranges from multi-let industrial estates to larger distribution units, offices and retail.
“The value of our property investment portfolio has benefited significantly over the last 12 months from improving economic conditions and a resurgence in confidence and activity from both occupiers and investors,” said chairman, Rupert Mucklow, in his annual report.
“Property values have risen by 10.2 per cent on the back of improved occupier and investor demand, which has helped increase our pre-tax profit by 150 per cent and net asset value per share by 17 per cent,” he added.
There is now overwhelming evidence, stressed Mucklow, that the recovery is kicking in. Occupational demand for modern industrial property in the region had been steadily improving for the last 18 months and showed his company was starting to achieve rental growth in certain locations, but only on the back of a shortage of available space.
Among the group’s activities during the financial year was the acquisition of two investment properties in Halesowen and Kings Heath, Birmingham, for £6.71m. It began work on a pre-let development at Worcester, expected to have an end value of around £10m, and acquired and refurbished a vacant industrial building in Tyseley, Birmingham for £1.74m. It also disposed of a Worcester office building for £3.85m.
“The property investment market became very competitive in the second half of the year. We found it more difficult to acquire suitably priced investment properties, so we shifted our focus towards development and are looking for other opportunities to add value,” said Mucklow.
Describing his family-run firm as being “in good shape with a quality investment portfolio and a strong balance sheet,” he added that, “we expect the regional occupier and investment markets to continue to improve over the next 12 months and rental growth to accelerate as the limited supply of available space falls”.
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