Property investment company, Wichford plc, fell more than 15% after slashing the value of its UK and European property portfolio by £80.1 million.
For the six months to 31 March 2008, Wichford posted a profit after tax of £5.2 million on its rental income, up from £3.7 million the year before, but was forced to write down its property portfolio valuation, which resulted in a loss of after tax of £74.8 million compared to a profit of £3.8 million the year before. The interim dividend was increased to 4.1 pence from 4 pence, despite a basic loss per share of 56.4 pence, and the net asset value of the company falling 35% to 136.4 pence.
"It is clear that the problems in the credit and housing markets will take some time to resolve, and the outlook for the US and many European economies over the next year is uncertain. This is likely to be reflected in the property market as a whole. Wichford is extremely fortunate to have a very high quality rental income, with an increasing proportion linked to inflation, and a broad spread of well funded properties." commented Philippe de Nicolay, Non-executive Chairman.