Rental growth boosts profits at Green group

Strong rental growth has almost doubled Green Property's pre-tax profit from £2.94 million to £5.6 million in the six months ended June 30th, 1997. The group benefited from the inclusion of rental income from a British property portfolio and there was a small contribution from the Blanchardstown Centre. There was also a profit from the £16 million sale of property in Britain. If this is excluded, the underlying growth in profits amounted to 58 per cent. Reflecting real growth, earnings per share rose from 5.19p to 7.61p. Shareholders are to benefit from the growth with an increase in the interim dividend from 1.25p to 1.80p.

Since its opening in October, the Blanchardstown Centre has "continued to trade extremely well and is fully let", the interim statement said. A further phase comprising some 80,000 square feet of retail warehousing is under construction. Around 90 per cent of this is under offer and Green expects the units to commence trading in October.

The recent Government decision on the Regional Technical College will allow the group to exercise its option over the full 31 acre site adjoining the Blanchardstown Centre currently zoned for town centre use. Green noted that work has also begun on its joint venture with Dublin Corporation in a 100 acre industrial park close to the M50 at Fonthill Road. Apart from the anticipated rise in rental income, the group is also gearing itself to make further sales in Britain in the second half. However, these are not expected to be as large as the proceeds in the first half. Group borrowings fell from £184.2 million to £177.4 million. This brings the gearing down from 109 per cent to 100 per cent, though Mr Vernon noted that the figure would have been 97 per cent but for the conversion of the figures from sterling. The policy is not to go below 100 per cent, he stressed, and if the gearing does drop, the group would then gear up to bring it back up to 100 per cent. Reflecting a gain in net worth, the Group group's net assets per share have improved from 274p to 287p. The shares closed up 5p on 365p.