We're not over the worst – Grainger

May 21 2009 by Andrew Mernin, The Journal

BRITAIN'S largest residential landlord yesterday warned that the UK’s housing sector may not be over the worst of the current crisis, despite positive signs in the sector.

As Newcastle-based Grainger plc posted a pre-tax loss of £143m in its half-year results, it laid out its plans for ongoing prudence as it prepares for what could be darker times ahead in the industry.

The company said it would continue its strategy to curtail acquisitions and reduce overheads until there are signs of sustained improvement in the sector.

However, it also said there were no planned redundancies at the firm, which employs around 100 people in Newcastle at its St James’ Boulevard headquarters.

Grainger said it would defer any decision on dividends until the end of the year as it predicted full-year sales to reach £144m.

The group, which owns over 14,000 UK properties and 7,000 in Germany, said it incurred a one-off cost in the six-month period due to early conversion of 78% of its convertible bonds. Acting CEO Andrew Cunningham said: “There hasn’t been a sustained commentary or number of signs for a long enough period to be able to say we are through the worst.

“Some of the indicators are that things are getting better but we have to remember that prices are still falling. We are assuming that we are not over the worst.”