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London-focused developer Quintain Estates today swung back into the black, but warned there could be “trouble ahead” for the commercial property market.
The company posted a profit before tax for the six months to the end of September of £9.5 million. This compared with a loss of £51.6 million in the same period last year.
It came as Quintain joined the property sector's dash for cash, announcing plans to raise £191.2 million. Chief executive Adrian Wyatt said the cash call means it is now prepared for the possibility of a double-dip recession.
“In any recession, there are always late problems such as bankruptcies, but we now have enough firepower to withstand any further problems,” he said.
Money raised from the three-for-one rights issue will also be used to fund part of Quintain's Greenwich and Wembley developments and make small acquisitions.
Wyatt added that he was particularly pleased with demand at its Greenwich development: “All the nay-sayers — who thought that Greenwich could never be a successful office centre — have been proved wrong, with our lettings to TfL (Transport for London) and other major tenants.”
Quintain recently sold its stake in the O2 Arena to Trinity College Cambridge. Wyatt said: “We are happy with the sale. People said that the Dome would only ever be a white elephant; now it is the most successful new entertainment venue in Europe.”
Quintain's net asset value per share — a key measure in the property industry — rose 2.3% to 356p.
Shares in the group fell 2¼p to 173p.
