Development Securities on track to meet full-year targets

Development Securities says it’s on track to meet its full-year targets, despite a drop in headline profits.

The AIM-listed company released its interim results for the six months to 31 August on Wednesday.

It revealed headline profit before tax was down to £1.4m for the period.

That decreased from £18m the previous year before exceptional items including termination costs of cross currency swap and the acquisition of Cathedral Group.

However, the company said it was on track to meet full-year targets, with 41% of full-year development and trading gains delivered to date.

It said £12.5m of development and trading gains have been secured in the half year, and a further £10m secured since August, underpinning the company’s expectation to meet its previous full year guidance of £54.7m.

Chief executive Matthew Weiner said it’s been another busy period for the group.

“We now have a stronger team with the depth of knowledge and skills to deliver high quality returns across the business.

“Using our combined expertise we have put in place a number of strategic initiatives as we seek to enhance our position as the UK's most respected mixed-use regeneration company.”

He said the company remained “disciplined” in its aim to deliver 15% pre-tax total returns each year.