REG - First Property Group - Trading update

First PropertyAnnouncement

23/04/2025 07:00

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RNS Number : 7305F  First Property Group PLC  23 April 2025

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 Date:          23 April 2025
 On behalf of:  First Property Group plc ("First Property", the "Company" or the "Group")
 Embargoed:     07:00 hours

 

First Property Group plc

Trading update

 

First Property Group plc (AIM: FPO), the property fund manager and investor,
is pleased to provide a trading update for the year ended 31 March 2025.

 

The Board expects the Group's profit before tax (on an unadjusted basis) for
the year to significantly exceed market expectations.

 

Despite ongoing volatility in the property markets, the Group has had a
successful financial year. First Property benefitted from several one-off
events, including profits made on the disposal of investment properties by one
of its managed funds, in which it holds an associated interest. Additionally,
the Group benefited from the early receipt of fees from another fund,
following the early disposal of its properties.

 

The Group also implemented several cost-cutting measures (which included a 15%
voluntary reduction in salary by the CEO), resulting in total annual savings
of £650,000. It also raised £2.96 million (before expenses) through an open
offer of new ordinary shares to all qualifying shareholders. The proceeds were
used to meet contractual debt liabilities in respect of the deferred
consideration payments for the Blue Tower property, located in Warsaw, funding
capital expenditure incentives for tenants as the Group continues to lease the
remaining vacant space in its portfolio and strengthening the Group's balance
sheet. The open offer was jointly underwritten by the CEO and Chairman,
demonstrating their confidence in the Company's prospects and the Board's
strategy.

 

These actions contributed to enhancing profits and strengthening the Group's
financial position. On an underlying basis (assuming no movement in the value
of properties held), the Group is now trading profitably.

 

The past few years have been challenging, first with lockdowns impacting the
collection of rental income and then rising inflation and interest rates
accordingly, resulting in increases in borrowing costs, a reduction in capital
values, a withdrawal of/ tightening in the terms of bank lending against
property, valuation impairments from the ever increasing obligations under
environmental regulations, changing working habits and the requirement for
significant capital expenditure for fit-outs.

 

The Group is emerging from these difficult times.

 

A strengthened balance sheet with underlying profitability positions the Group
well for making opportunistic investments alongside the funds it manages.

 

The Group is expected to announce its results for the year ended 31 March 2025
on 19 June 2025.

 

- ENDS -

 

For further information please contact:

 

 First Property Group plc                                      Tel: +44 (20) 7340 0270
 Ben Habib (Chief Executive Officer)                           investor.relations@fprop.com (mailto:investor.relations@fprop.com)

 Laura James (Group Finance Director)

 Jeremy Barkes (Director, Business Development)

 Jill Aubrey (Director, Compliance & Company Secretary)

 Allenby Capital (NOMAD & Broker)                              Tel: + 44 (20) 3328 5656
 Nick Naylor / Daniel Dearden-Williams (Corporate Finance)

 Amrit Nahal / Tony Quirke (Sales and Corporate Broking)

 

 

 

 

Notes to Investors and Editors:

 

First Property Group plc is a property fund manager and investor with
operations in the United Kingdom and Central Europe. Its focus is on higher
yielding commercial property with sustainable cash flows.

 

The Company is flexible and takes an active approach to asset management. Its
earnings are derived from:

 

·          Fund management - via its FCA regulated and AIFMD
approved subsidiary, First Property Asset Management Ltd ("FPAM"), which earns
fees from investing for third parties in property. FPAM currently manages
twelve funds which are invested across the United Kingdom, Poland and Romania.

 

·          Group properties - principal investments by the Group to
earn a return on its own capital, usually in partnership with third parties.
Investments comprise six directly held properties in Poland, one in Romania,
and non-controlling interests in nine of the twelve funds managed by FPAM.

 

Quoted on AIM, the Company has offices in London and Warsaw. Further
information about the Company and its properties can be found at:
www.fprop.com (http://www.fprop.com) . To receive RNS alerts by email please
subscribe here
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