Greycoat rides again

GREYCOAT, the property company that successfully completed a financial restructuring at the end of last year, announced an unchanged loss for the six months to September yesterday and said it no longer needed to sell any more of its portfolio, writes Tom Stevenson.

Geoffrey Wilson, who announced his retirement as chairman, said: 'As the group now has a sound financial base the property disposals programme has been halted. The group will consider the acquisition of suitable investment properties where it can employ its expertise.'

The group's move on to the front foot follows a successful refinancing, masterminded by the South African investors Brian Myerson and Julian Treger, both of whom are joining the Greycoat board as non- executive directors.

The cost of the deal, which replaced a similar plan proposed by Postel, the pension fund, emerged at pounds 5m. The costs and charges associated with refinancing various classes of bonds contributed to a pre-tax loss of pounds 43.5m compared with a pounds 44m loss in 1992.

Mr Wilson confirmed that the company planned to transfer reserves to wipe out a pounds 149.1m deficit on its profit and loss account. That would enable it to pay a dividend again, although none is planned for the year to March.