Mountview Estates PLC on Thursday said the company grew profit in the last financial year, successfully mitigating the impact of higher interest rates.

The London-based property trading company owns and acquires tenanted residential property throughout the UK which are sold when vacant.

In the financial year that ended March 31, pretax profit rose 16% to £37.9 million from £32.8 million the year prior.

Revenue increased 8.0% to £79.5 million from £73.6 million.

Mountview declared a final dividend of 275.00 pence per share, up 10% from 250.00p a year ago. But the total dividend of 525.00p represented a 30% decrease from 750.00p last year.

The value of investment properties held by the company stood at £25.6 million, up 0.6% from £25.4 million.

Chief Executive Officer Duncan Sinclair said: ‘Inflation has subsided during the last year and is now near to what is considered to be the optimum rate of 2.0%, but base rate and thus the cost of borrowing remain high by modern standards. This company’s policy of low gearing and financial prudence has enabled it to continue to take advantage of good purchasing opportunities during our last financial year.’

Mountview shares were down 3.1% to 9,400.00 pence each in London on Thursday morning.

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