An increase in property values helped to push up pre-tax profit at Black Country investment group A&J Mucklow by 150 per cent.
Shareholders of the Halesowen-based firm will also enjoy a three per cent cent rise in their final dividend as occupational demand for industrial property increases in the Midlands.
In its final results for the year to June 30, 2014, the listed firm said pre-tax profit had risen to £40.7 million from £16.3 million while rental income climbed from £20.4 million to £21.4 million.
READ MORE: {}
Chairman Rupert Mucklow said in the annual report: "I am pleased to report another strong performance by the group.
"Property values have risen by 10.2 per cent on the back of improved occupier and investor demand, which has helped increase our pre-tax profit by 150 per cent and net asset value per share by 17 per cent.
"The group's principal objective is the long-term enhancement of shareholder value through dividend and capital appreciation.
"The group's low gearing and strong financial position over the last seven years has enabled us to acquire a number of quality investment properties, on attractive terms which, combined with our existing modern property portfolio, are now starting to show signs of rental and capital growth.
"Longer-term decisions made to refinance banking facilities and invest in upgrading some of our older industrial properties have mpacted underlying pre-tax profit over the last 12 months.
Most Read
"However, the ordinary dividend is still covered by the lower underlying pre-tax profit, which is likely to improve as rental income grows."
The underlying pre-tax profit, which excludes revaluation movements and profit on the sale of investment and trading properties was £12.9 million, down from £13.5 million in 2013. A final dividend of 11.19p per share has been recommended.
Mr Mucklow added: "The value of our property investment portfolio has benefited significantly over the last 12 months from improving economic conditions and a resurgence in confidence and activity from both occupiers and Investors.
"Occupational demand for modern industrial property in the Midlands has been steadily improving for the last 18 months and we are starting to achieve rental growth in certain locations, on the back of a shortage of available space."