mckay securities plc-ord (M8K) Snapshot

McKay Securities plc has completed the off-market freehold acquisition of a 1.2 acre development site in Redhill from Hodnet Properties Ltd. for £2.30 million. The site has a prominent frontage on London Road, which is one of the prime office locations in central Redhill, close to the railway station and town centre facilities. Redhill is a well regarded centre attracting occupiers due to its direct rail links to London, connections to the M25, skilled labour and wide range of town centre amenities. There are no new or planned buildings available to replace the increasing obsolete existing building stock, which dates back predominantly to the 1980's. The site has the benefit of recent planning approvals for the construction of a high quality office building totaling 47,900 sq ft (NIA) and 14 residential apartments. This will replace the dated offices on the site that were occupied formerly by the Department of Work and Pensions. These approvals were obtained by Lamron Developments, an established South East developer, who will work jointly with McKay on the management and development of the site. The acquisition is part of McKay's strategy to invest in assets in its core market that have the potential to release value from development, refurbishment and active management. The acquisition follows the recent disposal of a large office property in Glasgow that released funds for reinvestment.

McKay Securities plc reported consolidated earnings results for the year ended March 31, 2013. For the quarter, the company reported gross rents and service charges receivable of £20.05 million compared to £20.67 million a year ago. Net rental income from investment properties was £14.37 million compared to £13.99 million a year ago. Operating profit before gains on investment properties was £10.92 million compared to £10.49 million a year ago. Operating profit was £15.42 million compared to £10.72 million a year ago. Profit before taxation was £1.75 million compared to loss before taxation of £11.56 million a year ago. Profit for the period was £1.26 million or 3.70 pence per diluted share compared to loss for the period of £12.41 million or 25.20 pence per diluted share a year ago. Cash flows from operating activities were £4.36 million compared to £6.83 million a year ago. Purchase and development of investment properties was £10.75 million compared to £5.70 million a year ago. Purchase of other fixed assets was £17,000 compared to £24,000 a year ago. Adjusted profit before tax was £5.42 million compared to £5.00 million a year ago. Adjusted diluted earnings per share were 11.49 pence compared to 10.50 pence a year ago. The board of the company has recommended a final dividend of 5.8 pence per share payable on August 1, 2013 representing an increase of 1.8% compared to 5.7 pence per share paid in 2012. This takes the total dividend for the year to 8.5 pence per share compared to 8.4 pence per share paid in 2012. Record date for the final dividend is June 7, 2013 and ex dividend date is June 5, 2013.

McKay Securities plc announced that they will report fiscal year 2013 results on May 29, 2013