CHESHIRE developer Pochin's saw revenues for the six months to November 30 decline today, but losses also narrowed.
Turnover fell from £37m to £30.7m, and pre-tax profits of £511,000 compared with £47,000 in 2010, but losses at its concrete pumping division, now in the process of disposal, wiped out the positive figures and led to a loss for the period of £332,000, against £489,000 the previous year.
Pochin's announced the sale of the concrete pumping arm with its annual results ending May 31 2011. It said today its activities have benefited from improved cost control and efficiencies, leading to the level of ongoing losses being contained. The group said its disposal is "at an advanced stage with completion expected shortly".
The construction division improved its results despite a lack of opportunities and the group said it should maintain its better performance throughout the second half of the year.
Pochin's and Liverpool-based UK Land & Property are joint landlords of Exchange Flags, following the purchase of Horton House and Walker House in 2006 and 2007, respectively, although the Cheshire group is seeking to extract itself from the arrangement due to poor rental performance.
It said rental income from its core investment portfolio remained strong, but the regional commercial property market shows renewed signs of weakness which may have a further impact on values during 2012.
"These conditions are adversely affecting development land values in particular, and they inhibit the group's planned disposals of non-core assets," it said.
Chairman Richard Fildes said today: "The group's property rental income and ongoing construction activities have performed creditably in difficult market conditions.
"Prospects for commercial property values remain a concern, as do those for an early return to profitable development activity.
"The second half of the year should see the disposal of the concrete pumping business, leaving the remaining divisions seeking to benefit from their established position in the challenging regional market."
