$50 million profit decline for Valad
Valad Property Group has suffered a $50 million profit decline in the first half of this financial year, with acting chief executive Clem Salwin admitting the results were disappointing.
Profit loss was mainly attributed to writedowns across Valad’s development businesses and its Valad Capital Services (VCS) business, which has now been closed. The results also follow the company’s recent announcement of its intention to exit the Australian investment management business.
In its announcement to the Australian Securities Exchange, Valad stated the writedowns totalled about $60 million for both VCS and the development businesses, while earnings amounted to only $3.6 million for the half year.
Salwin said the process of change required in the business was underway.
“We have begun to implement strategies to improve the financial performance of the group,” Salwin said. “These include closing the VCS business, announcing our intention to exit the Australian investment management business and commencing a sales campaign for Sheraton Noosa.”
However, the group noted positive results were achieved on the European funds management and Australian real estate fronts.
Valad had recently appointed Salwin as its acting chief executive, following the departure of former chief executive Guy Ferrands late last year.
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