The Rt Hon John Gummer MP has been appointed as a non-executive director of home reversions company Sovereign Reversions.
Chief executive Graeme Marshall said: “We see the home reversion market as entering a new phase of development following in the government’s decision in May to regulate it.
“John’s broad experience of property-related issues, financial intermediaries and the workings of government will be of great benefit to the company.”
The announcement of Gummer’s appointment came as Sovereign Reversions published its financial results for the six months to 31 October.
Several acquisitions during the period helped the company increase its net asset value from £16.6m in 2003 to £39.8m this year.
Purchases included that of NHL Reversions, which owns a portfolio of 27 home reversions worth £2.35m.
Sovereign Reversions said that embedded value per share, which fell from 723.3p to 472.8p as a result of the company’s capital-raising in April, had started to recover and now stood at 486.7p.
It added that it expected to see further increases in the second half of the year as the company continues to invest the proceeds of its capital-raising.
Chairman Robert Lo said the company was looking to acquire portfolios in the equity release market to build its embedded value.
Profit after revaluation transfers and taxation increased by 150% during the period to £699,000 (2003: £279,000).
References: EGi News 29/11/04
