Farmer Business Developments has announced a group profit before tax of €11.64m for 2021, down from €50.69m in 2020.
Profits in 2020 benefited from a substantial land sale by Berlin-based subsidiary Bulberry Properties Ltd. The group proposes to pay a 7c dividend which comes on top of a 10c interim dividend paid in November 2021.
The results show a post-covid-19 recovery in FBD Hotels & Resorts, posting a profit of €13.13m – up from a loss of €1.63m in 2020.
Eighty-seven percent of the group’s property developments with Taylor Wimpey at La Cala Resort are now built or are in progress. The group had €137m invested in subsidiaries at the end of 2021.
The investment in Bulberry group (development lands outside Berlin) at €26m accounts for 11% of shareholder funds.
The Russian war in Ukraine is giving rise to uncertainty, according to the annual report with Bulberry monitoring the market closely.
The agreed buy-back price would be €1.53 per share for this summer’s scheme, which they note is 75% above the average selling price
The company has announced a proposed voluntary share buyback, noting that the board is concerned that sellers in their private grey market have experienced difficulty in finding buyers for their shares.
According to the Annual Report, prices in the grey market have remained depressed at 85c to 90c per share over the past two years. Based on advice taken, the board is proposing the option of a voluntary share buy-back scheme this summer, providing an exit opportunity for shareholders wishing to sell.
The agreed buy-back price would be €1.53 per share for this summer’s scheme, which they note is 75% above the average selling price achieved in the grey market over the last two years.
The buy-back formula represents 35% of the balance sheet value attributable to shareholders in the latest annual results less the proposed dividend amount.
The balance sheet value attributable to shareholders in the accounts is €231.07m.