New boss at Grainger plc

Oct 6 2009 By Karen Dent, The Journal

RESIDENTIAL landlord company Grainger has appointed a new boss and says it expects a big jump in sales when it reveals its annual results.

But falling house prices and more sales of properties to tenants who are already in place means that margins are down and trading profits will drop below last year’s levels.

The Newcastle company - Britain’s biggest landlord which owns around 14,000 properties ranging from former pitmen’s houses to upmarket London streets in the UK plus homes in Germany, Estonia and the Czech Republic - predicts that sales will rise by 21.6% to around £220m for the year to September 30.

The biggest chunk of income is from its ‘core’ and retirement homes interests, which is likely to bring in around £169m - £1m more than last year.

The company, which recently agreed a new deal with its bankers to repay loans of more than £900m, has pulled in its horns and only spent around £12m on buying new properties compared to £146m last year.

Grainger said: “Whilst we remain cautious in our near term outlook for the housing market, we are pleased to note that some stability has returned over the last few months.”

Today’s trading statement to shareholders also revealed that chief executive Rupert Dickinson is stepping down on October 20.

He will be replaced by Andrew Cunningham, who is currently Grainger’s finance director.