Real Estate Opportunities Ltd (REO.L) has announced a profit before tax for the fiscal year 2007, following a pre-tax loss sustained during the previous year. This positive shift is primarily attributed to a notable increase in interest receivable and comparable income.
For the fiscal year 2007, REO has reported a pre-tax profit of £25.59 million, a remarkable improvement from the loss of £20.45 million recorded in the same period last year. This turnaround was largely supported by a surge in interest receivables and similar income. The company's earnings per share for the year stood at 8.1 pence, contrasting sharply with a loss per share of 4.6 pence in 2006.
The total interest receivable and similar income for the year witnessed a substantial jump to £56.89 million, compared to £5.5 million last year, primarily resulting from £52.07 million received through two legal settlements. On March 15, 2007, Real Estate Opportunities finalized an agreement with Aberdeen Asset Management concerning a pending lawsuit. Subsequently, on May 16, REO reached a settlement with UBS regarding another outstanding claim.
In terms of turnover from continuing operations, REO's group turnover grew to £19.17 million for 2007, relative to £16.77 million in the previous fiscal year. This growth reflects an upswing in revenues stemming from the company's investment and development properties located predominantly in and around Dublin. The income from property in Ireland rose to £18.5 million, up from £16.61 million the year before.
Additionally, the Jersey-based company's net asset value (NAV) has seen a significant rise, climbing to £559.66 million or 151.9 pence per share, contrasted with £269.1 million or 104.5 pence per share in the prior year.
As part of its financial performance, REO is also proposing a final dividend for 2007, amounting to 1.5 pence per ordinary share, which is set to be disbursed on July 18.