Property market shows stability, says Pochin

Michael Hunt

Cheshire-based Pochin said construction activity in both the public and private sector commercial property market is unlikely to improve in the short term.

In an interim management statement covering the period from 1 June 2010 to date, Richard Fildes, chairman, said: "The construction division is performing creditably and continues to win new business in an increasingly competitive market. A recent example is the appointment of Pochin's as contractor to build the £8m new Ronald McDonald House at the Royal Manchester Children's Hospital.

"The property division, which now incorporates the remaining residential activity, is performing acceptably with few vacancies in its wholly owned commercial portfolio. Opportunities for development activity remain limited. In the property joint ventures, some progress has been made in reducing the group's exposure to the costs of servicing unoccupied completed developments.

"Stability has been established in the regional commercial property market, but the prospects for increased construction activity in both the public and private sectors seem unlikely to improve in the short term."

Pochin reported a loss of £16.2m in the year to the end of May 2010, compared to £9.4m in 2009.

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