Town Centre Securities on the look-out for new stock

Chairman and chief executive Edward Ziff said the focus on value retailers at the Merrion Centre in Leeds helped it to weather the recession by pulling in a steady income.

Pre-tax profit for the six months to December 31 rose to 31.5m, compared with a loss of 72.9m the previous year.

Edward Ziff, chairman and chief executive of the Leeds-based firm, said TCS was in a "robust position" thanks to tight control of its finances.

Net asset value per share increased to 257p from 202p, while TCS made a 9m profit on the repurchase of debenture stock.

TCS is proposing an interim dividend of 3.02p per share.

Occupancy levels across TCS's stock rose to 93 per cent over the period, while the company brought in 17m from property sales.

The company made 2.5m after selling new apartments and townhouses in Harrogate.

TCS's car parking business is still doing well and the company intends to continue to grow that part of the company.

Gross borrowings at December 31 were 146.7m compared to 185.3m on June 30, following the repurchase of debenture stock and property sales.

This allowed TCS to acquire two shops in North London.

Mr Ziff said that activity was coming back into the investment market and there is "evidence of a slight improvement" in the property sector" but he added that he continues to regard 2010 with caution.

He added: "Our close attention to balance sheet management has left us in a robust position and we look, selectively, for opportunities to acquire stock that fits into our longer term strategy. Nevertheless, we continue to regard 2010 with caution and are ready for any change in market conditions that may occur.

"I am delighted we have reinforced the long-term financing of the company. With focussed in-house management our rationalised portfolio has proved resilient, particularly the Merrion Centre, with its substantial exposure to "value for money" retailing, which has stood us in good stead."