Marylebone Warwick Balfour said today that it viewed the current year with “cautious optimism”, as its pretax losses narrowed to £3.3m from the restated £63.9m.
Since the £73.6m disposal in March of its last investment property, Marble Arch Tower, London W1- which generated a £6.9m net profit – the group has focused on hotels, its UK serviced offices group Business Exchange, and Retail Stores, which owns Liberty.
In its preliminary results for the year to 30 June, MWB reported that the Malmaison chain was leading a recovery in the hotels division, with a 15% rise in occupancy since July 2003.
MWB said it intended to expand the group from eight to 15 hotels over the next five years. The hotels division has a gross asset value of £426m.
Business Exchange reported a drop in occupancy to 65% at the year-end, but it has started to recover and now stands at 71%.
Chief executive Richard Balfour-Lynn said: “There are signs of a recovery in the serviced office market, which we believe will be reflected in improved performance over the coming year.”
Retail Stores said its results for the year to end-June were “disappointing”.
Turnover for the 12 months to 30 June dipped slightly to £39.5m, from £40.1m in the previous year.
Liberty has a gross property value of £81m.
Chairman Brian Myerson said: “There are some encouraging indicators that lead the board to a feeling of cautious optimism for the current year.”
References: EGi News 23/09/04
