Lack of trading profits and the housing slump has hit profits at Asda Property. “I have not witnessed a more severe downturn than that which occurred during 1990,” says chairman Manny Davidson.
Net asset value per share fell 27% to 144p following a revaluation of the portfolio, which declined 13% to £131m. Rental income, however, rose 39% to £10.2m but voids are totalling £200,000 pa, due to an increasing number of tenants in default. Asda now has only 11,000 sq ft under development: an office property in Curzon Street, W1, due for completion in spring 1991. Its 3,500-sq ft redevelopment on Woodstock Street, W1, is completed and awaiting tenants.
Asda’s interest bill rose 21% to £13.8m; some 50% of its borrowings are at fixed rates. The pre-tax profit is struck after an exceptional charge of £0.8m resulting from the rationalisation of housing operations and a £0.3m write-down on trading properties.
