PROPERTY company Trafalgar Corporate Group has delivered an improved operating profit of $1.83 million for the six months to 31 December 2011.
The operating profit increased by 34.6% compared to $1.36 million for the same period last year, as a result of leasing the vacant space in the Mort St Canberra building and lower interest costs due to debt reduction following the sale of the Thiess and Fujitsu buildings in Brisbane.
Revenue was down 38.6% from $9.7 million to $5.9 million reflecting the impact of the sale of investment properties.
CEO Braith Williams said the revenue decline will continue as investment properties are sold as part of the realisation strategy.
Net profit was $1.34 million compared to $2.32 million, the decline primarily reflects changes in the fair value of investment assets and expiry of interest rate swaps.
Further progress was made with debt reduction, with $12.5 million repaid reducing total debt from $45.8 million at 30 June 2011, to $33.3 million for the current reporting period. Gearing decreased from 29.8% as at 30 June 2011, to 29.0% as at 31 December 2011, notwithstanding a further 32 cents per security in capital distributions during the half year.
The group had available cash reserves of $11.9 million as at 31 December 2011. Since half year end, the group has paid a further distribution of $5.9 million, representing 7 cents per security.
“The asset realisation program continued with the sale of the Fujitsu building and the first return of funds from the Rhodes joint venture following the settlement of the Stage 6 superlot during the reporting period. This has enabled the Board to deliver on further distributions to security holders,” Williams said.
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