Grainger shares receive boost from strong update

Grainger shares receive boost from strong update

Grainger PLC (LON: GRI) have seen their shares boosted on Wednesday morning after the firm reported strong results.

Grainger is a British based residential property business, and have been trading since 1912. They have headquarters based in Newcastle upon Tyne, United Kingdom.

Shares of Grainger were boosted 1.67% after the positive announcement and trade at 280p. 27/11/19 12:03BST.

The demand for housing has been up and down, particularly in the UK following political and economic uncertainties and Brexit complications.

Home builders such as Taylor Wimpey (LON: TW) and Homeserve (LON: HSV) have seen their shares rally on the back of increasing rental home demand.

Grainger said that it had delivered a strong performance against a backdrop of both political and economic uncertainty, supporting by strong rental property demand.

The FTSE250 (INDEXFTSE: MCX) said for the financial year to September 30, its net rental income grew 45% to £63.5 million from £43.8 million in 2018.

The strategic focus on the UK private rented sector continues to deliver real growth in the business, underpinned by a strong demand for rental homes across the country.

Profit before tax rose 30% to £131.3 million from £100.7 million, the company said. As a result, the company proposed a final dividend of 3.46p per share, which showed a 9% rise from 2018.

Total dividend for the year was 5.19p, which again saw a climb from 4.75p in 2018.

“Looking forward to the year ahead there is great focus on building our best in class operational platform, driven by the quality of our people and new technology, as well as delivering circa 1,000 new homes for our customers across the country,” Chief Executive Officer Helen Gordon said.

“Our focus on continuing to build the longer-term investment pipeline will continue as we pursue our ambition to grow the business significantly over the next five years.”

In the housing market, there have been slumps and business has been volatile.

However, firms have attempted to combat the slow business period. A few weeks back it was reported that Galliford Try plc (LON: GFRD) and Bovis Homes Group plc (LON: BVS) had agreed a home building deal.