DevSec posts profit rise to £45.4m

Development Securities has more than doubled its pre-tax profits to £45.4m from £19.5m in 2014 according to its preliminary results released to the stock market today.

The profit increase represents a 133% improvement on the previous year. According to the investor, the results show a record level of development and trading gains realised over the past year, a 69% increase to £45.7m, up from £27m in 2014.

The year saw a £11.2m increase in the value of the Development Securities' investment portfolio, including the share of joint ventures, compared to a £4.8m increase in 2014.

Development Securities is the joint venture partner with Property Alliance Group on Axis, the residential tower currently under construction in central Manchester.

In January, the company announced that alongside Pemberstone Investments, it had acquired the 167,000 sq ft Chill Factore indoor ski slope in Manchester for £15.5m. The investor is also on site with the redevelopment of The Square shopping centre in Hale Barns.

Total dividends for the year increased to 13.9p per share from 5.6p in 2014, with an increased final dividend of 3.5p per share, interim dividend of 2.4p per share and special dividend of 8.0p per share.

Michael Marx, chief executive of DevSec, said: "This has been a record year for the Company, delivering the highest level of underlying profitability to date. This was largely driven by a step change in the level of development and trading gains realised, leading to a material increase in shareholder distributions. We are confident of sustaining and building on this performance in the years ahead. We have a clear strategy, a strong leadership team and good visibility on a pipeline of significant development and trading profits in the years ahead."

Shares in Development Securities this morning were up 10.25p to 244.75p.