Property group remains confident

PROPERTY Recycling Group, the East Anglia-based company specialising in brownfield development sites, yesterday reported a profit of £400,000 for the first six months of 2006, on turnover of £1million.

PROPERTY Recycling Group, the East Anglia-based company specialising in brownfield development sites, yesterday reported a profit of £400,000 for the first six months of 2006, on turnover of £1million.

The result compares with figures of £2.3million and £3.9million respectively for the first half of last year, which included the £3.5million disposal of the company's Saddlebow site at King's Lynn.

The company, which also yesterday reported an interim dividend of 0.5p per share, said the comparison underlined the extent to which its results were affected by the timing of significant sales.

Operational highlights during the first half of this year had included the disposal of 14.95 hectares of its Fornham site, near Bury St Edmunds, with planning permission for a house, for £400,000, and the granting of planning consent for 27 timber lodges and a nine hole golf course at Fornham Park, said the company.

It added that the second half had already included the granting of planning permission for a 1.2million square foot distribution centre at its Stanton site, between Bury and Diss, which is under option to Ikea.

“While we did not make any significant disposals as we did during the same period last year, the company did progress a number of initiatives,” said group chairman Paul Rackham.

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“The Government's continued commitment to increasing the proportion of development land sourced from brownfield sites, combined with progress within our current portfolio, gives me confidence in the future performance in the company. This confidence is underlined by the board's proposed dividend of 0.5 pence for the period.

“We are reviewing a number of potential opportunities and hope to be able to make further announcements in the future,” he added.