Braemar reports interim loss

Hale-based property fund manager, Braemar Group has made a small pre-tax loss for the six months to the end of September as it expected.

In an announcement made on the London Stock Exchange today, Braemar saw revenue rise £1.45m compared to £1.28m in the same period last year.

In its half yearly report this morning, the listed group reported pre-tax loss of £109,000, a rise from £58,000 for the same period last year. However, Chairman Martin Robinson said the rise in loss "was in line with the directors' expectations".

The breakdown of revenue saw the fund management division lead the way with £923,000, followed by £484,000 from property management through Braemar Estates.

During the period Braemar Securities launched a ground rents fund to go alongside the existing agricultural land and student accommodation funds. All are Guernsey registered Open Ended Investment Companies. Funds under management increased by 18% during the last six months to £46m.

However, fundraising was slow for Braemar UK Agricultural Land plc and the decision was taken to abort its flotation on the Alternative Investment Market.

The property management division is now responsible for the management of over £300m of assets, representing some 2,800 apartments. Robinson said this part of the buisiness had "proved resilient during the wider property downturn, particularly as our activities are limited to the management or refurbishment of assets we own, assets in funds we manage and third party owned freeholds."

He added: "The directors are pleased with the progress that has been made during the first half of the year. In particular, the growth in recurring income demonstrates what can be achieved from growth in funds under management while keeping costs under control. The directors look forward to reporting further improvements in the Group's performance in the second half."