TCS optimistic about shopping centre’s future

The Leeds-based firm said its focus on value for money retailing remained “central” to its strategy as it posted underlying pre-tax profits of £4m for the six months to December 31, 2011, compared to £4.4m the previous year.

TCS said it would maintain its interim dividend at 3.1p.

Chairman and chief executive Edward Ziff said its portfolio had helped its underlying profitability to remain strong.

He said: “Town Centre Securities is weathering the current economic conditions well despite 2011 being a difficult period for retailers.

“We see attractive opportunities in our existing portfolio and are pursuing these as a priority. Managing our assets and our focus on value for money retailing remains central to our strategy ensuring that we maintain income generation at a level that sustains the business and our dividend.”

Mr Ziff added: “The uncertainty in the economy as a whole and particularly in the retail sector, leads us to adopt a cautious attitude towards the market.”

Speaking about The Merrion Centre, Mr Ziff TCS was “very optimistic” about the future of the shopping centre and said proposals to improve its frontage and car parking would continue as the group further regenerates the centre.

The company received planning permission in December for 50,000 sq ft of new leisure and retail space at the site and the scheme is set to progress when pre-lets have been agreed.

Footfall at the shopping centre was up by one per cent over the half year and 7.6 per cent in December.

Voids over the period were 2.8 per cent, down from 4.4 per cent. Income from car parks remained stable at £2.3m and was profitable.

The company also completed a refinancing with RBS and Lloyds and agreed a new four year facility with Handelsbanken