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LONDON (Alliance News) - AIM-listed property investor Panther Securities PLC on Tuesday reported sharply lower annual profit due to non-cash adjustment to its portfolio valuation.
In 2018, the company recorded pretax profit of GBP8.7 million compared to GBP24.8 million in 2017.
Panther Securities revenue increased 5.4% to GBP13.6 million from GBP12.9 million the year before.
In 2018, the company saw a downward movement of GBP6.4 million in its property portfolio valuation compared to a GBP16.8 million uplift in 2017.
At December 31, Panther's investment properties were valued at GBP201.8 million.
Chair Andrew Perloff said: "There is no doubt that a degree of uncertainty has affected property values and the uncertainty created is due to the debacle in the retail environment whereby many household names have failed or attempted to restructure via Company Voluntary Arrangements and even some profitable companies are asking for rent reductions because of their anticipated loss of turnover and therefore profits."
Perloff continued: "This is mainly due to government neglecting to adjust property taxes in the light of retail shopping patterns. The 'goose that laid the golden eggs' for the government's spendthrift ways is now in intensive care whilst they are too preoccupied elsewhere, in a shambles of their own making, to care about addressing this issue."
Panther declared a final dividend of 6.0 pence, resulting in a total dividend of 27p. The total dividend includes a special dividend of 15p. 2018's payout is 22% higher than the 22p distributed in 2017.
"We had a very good trading year in 2018. I expect our prospects for the near future will be positive, but growing our rental income will be more difficult than in the past but we have the potential to add value to our portfolio," added Perloff.
Shares in Panther Securities were untraded Tuesday but last closed at 390.00p.