Conrad Ritblat Group

Citation

Temple, P. (1998), "Conrad Ritblat Group", Journal of Property Valuation and Investment, Vol. 16 No. 1. https://doi.org/10.1108/jpvi.1998.11216aad.002

Conrad Ritblat Group

Conrad Ritblat Group

Accounts for the Year to May 1997

Conrad Ritblat has fingers in a lot of pies, most of which performed very well indeed in the year in question. Fee income from the property consultancy business increased from £18.84m to £25.7m with Colliers Erdman Lewis chipping in some £11.9m to this figure, while rental income on the properties owned by Milner Estates increased from £2.2m to £3.5m, most of which falls through to the bottom line. Operating profits from consultancy were £2.97m, up from £2.18m while property operating profits were £2m versus £1.1m. A profit of £0.13m was also made on the disposal of nine public house investments. The company has a further 100 pubs in the portfolio, and clearly this profit augurs well for future disposals.

In the consultancy business CR and CEL are operated as separate practices but cost savings are being generated through merging support and back-up functions, to such an extent that staff numbers dropped by around 40, reflecting improved productivity in this area.

In the property area, acquisitions of £6.6m were made in the course of the year, financed by borrowing. The office building next but one to the group's registered office in Manchester Square was also acquired for £10.3m, financed by way of a rights issue. The building between the two, plus related parking space, was acquired after the year-end for £2m. Refurbishment of all the acquired space will provide some 80,000 sq. ft of high quality space in a prominent West End location.

The result of these acquisitions and revaluation was to raise the value of gross assets by 42 per cent to £88m and net assets by 50 per cent to £52m. NAV was 288p per share at the year end, up from 255p, both figures which do not include any intangible value possessed by the consultancy businesses.

Office and industrial property in the regions, mainly industrial estates in Manchester and Staffordshire, has been sold since the year-end for around £6.4m, a small uplift on book value. Further disposals are possible as the group concentrates on higher quality assets. Refurbishment of 18-20 Appold Street, adjoining the Broadgate development in the City, is well under way and conversion of 56/61 Wigmore Street to flats was begun in August 1997. The company has also acquired the head lease and an option to acquire the freehold of the Astoria Theatre (opposite Centre Point), and redevelopment and conversion of this property is clearly an option at some stage.