Mucklow profits soar on property values hike

A&J Mucklow, the Halesowen-based industrial property group, has seen its annual profit soaring thanks to a rise in property values as the market for commercial land improves alongside the recovering economy.

A&J Mucklow's headquarters offices in Halesowen
A&J Mucklow's headquarters offices in Halesowen

Boosted as well by healthy prices on the sale of investment and development sites, Mucklow’s pre-tax profits hit £40.7 million, up from £16.3 million a year ago, while the value of its property portfolio has risen in value to £298.9 million from £262.7m.

Hailing 'another strong performance', chairman Rupert Mucklow said: “Property values have risen by 10.2% on the back of improved occupier and investor demand, which has helped increase our pre-tax profit by 150% and net asset value per share by 17%.

“We expect the regional occupier and investment markets to continue to improve over the next 12 months and rental growth to accelerate as the limited supply of available space falls.

But he warned: “We may struggle to acquire any further investment properties, while the market is so competitive and we are not prepared to compromise on quality.

"However, I am sure our team will continue to find ways to grow rental income and improve the value of the property portfolio over the next 12 months.”

The health of the business was underlined by its 3% hike in dividend payouts to shareholders. The final dividend will be 11.19p per share, up from 10.86p a year ago, making a total for the year of 20.23p, up from 19.64p.