Big spender Frogmore doubles up

A pounds 70m spending spree helped Frogmore Estates, the property company, to more than double profits to pounds 6.4m in the six months to December, writes Heather Connon.

The increase, from pounds 2.8m in the previous period, was achieved on turnover a third higher at pounds 29.7m. The largest increase came from its housebuilding joint venture, where sales rose from pounds 8.2m to pounds 15.2m. The group expects to increase its completion rate from 443 to 700 for the year as a whole.

Phillip Davies, managing director, said much of the sales increase was due to the purchases it had made since its pounds 43m rights issue in June. Among the acquisitions were a shopping centre in Hampshire and a portfolio of properties from the rival property company, Dwyer. The group is planning further purchases and Mr Davies said borrowings of pounds 74.3m, or 37 per cent of net assets, gave it adequate resources.

He added that prices in some parts of the property market were now softening, partly because of the fall in gilt prices but also because 'some values were overcooked'.

Earnings per share were 13.4p, up from 6.7p, and the dividend is increased by 8.6 per cent to 3.8p.