PROPERTY giant Grainger today announced soaring profits after a busy six months in which it took over a number of companies and won new contracts, including work for the Ministry of Defence.

The Newcastle-based business, which is Britain’s biggest residential landlord, said its operating profit jumped to £59.4m from £48m.

This, plus some one-off gains, helped to push up pre-tax profits to £65.2m from £3.5m last year in the six months to the end of March.

Although Grainger said the general housing market remained “subdued”, it said the group had made “significant progress” with the strong set of results.

“A series of major transactions emphasise both our ambition and our ability to source and deliver well priced opportunities,” said Grainger chairman Robin Broadhurst.

"General house prices have remained broadly stable over the last six months although liquidity and transaction volumes remain low.

“Grainger has continued to respond to this environment by rebalancing its portfolio to geographic locations where economic activity and therefore the potential for capital appreciation is higher. 

“We have also introduced additional and innovative sources of income which are less reliant on trading.”

Instead of paying out an interim dividend, the business has decided to offer a tender to shareholders which will offer one share for every 238 held at a price of 149p.

Under the scheme, Grainger says it will be returning £2.6m to shareholders, up from the £2.1m it paid out as last year’s interim dividend.

The company says its expects the housing market to remain generally stable into next year before starting to improve.