For 2019 Ethical Property Company (EPC) is reporting a pre-tax profit of £1,275k, £386k higher than prior year. This represents the first step towards the increased profitability that will be achieved once The Green House and Streamline are both fully let.
The operating profit or loss shows the income generated by the business before property revaluations, interest payable and other non-core income and expenditure. The operating was £224k compared to the profit of £384k last year.
The operating profit was reduced due to increased expenditure on building maintenance and IT infrastructure. Also fixed costs were increased with the addition of two buildings, income will increase as we aim to fill the additional 38,000 square feet of lettable space.
Return on Book Cost on average for existing buildings remains at 7.6%. The new buildings are currently achieving 1% which will improve with increased occupancy.