Adrenna revenue slumps in six months to August
JSE-listed property group Adrenna Property Group (ANA) achieved largely flat results in the six months to August 2013 compared with the same period in 2012.
JSE-listed property group Adrenna Property Group (ANA) achieved largely flat results in the six months to August 2013 compared with the same period in 2012.
The group showed in its results released on Wednesday that revenue fell marginally because of the of the disposal of three consolidated units of rental-generating retail investment property‚ in the group’s Red Sails development in Hout Bay.
Headline earnings per share were 2.9c compared with the same period last year’s 2.6c per share‚ showing an 11.5% improvement.
However‚ the allocation of the proceeds of the disposal to the outstanding bond obligation on the properties and the resultant significant reduction in the associated finance costs‚ more than counteracted the negative effect.
This allowed for net income before tax for the reporting period to reach R1.6m‚ 8.9% higher than the figure of R1.469m for the corresponding prior period
One of Adrenna’s subsidiary companies also disposed of an excess residential unit held as part of a small number of similar units classified as inventory.
The unit was disposed of at a marginal loss‚ with the majority of proceeds being allocated to the reduction of the existing bond facility in the subsidiary.
“The improvement in total comprehensive income for the six months ended 31 August 2013 as compared to the six months ended 31 August 2012 bears testament to the effectiveness of the cost-cutting exercises implemented in prior periods‚ the directors continuing effort to reduce existing borrowings and the buoying effects of well-performing property investments‚” Adrenna said in a statement.
Adrenna said it would continue to actively reduce its existing bank overdraft with First National Bank‚ having reduced the overdraft by R405‚000 in the six months since the end of the preceding financial year.
The reduction in both the outstanding bond liabilities and the bank overdraft‚ coupled with the improvement in comprehensive income generated‚ produced a gain in the net asset value per share of approximately 3c per share since the financial year-end.
“The directors will continue to focus on the generation of additional net asset value through the expansion of the property portfolio‚ coupled with efforts to reduce borrowings and limit unnecessary overheads‚” the group said.
