Moorfield turned into investment vehicle

MOORFIELD Estates, the USM- quoted property developer subjected to a reverse takeover in April, has been restructured into a property investment vehicle.

It reported a pre-tax loss of pounds 805,000 for the six months to 30 April, against pounds 719,000 for the same period last year.

The 1991 figures have been restated because the policy of the new management is to write off interest against profits rather than capitalise it in the balance sheet.

Derek Lucie-Smith, the joint managing director, described the results as largely meaningless because they reflected the company's trading position before the merger and the restructuring, which has changed the focus of the business.

The residential arm, Moorfield Developments, was sold and a new board is in place. The company's remaining portfolio has been revalued at pounds 24m. Net borrowings are at pounds 17m, giving net assets of pounds 7m.

Mr Lucie-Smith said the quality of the remaining portfolio was good; 60 per cent is retail in the Midlands and Yorkshire. 'We believe these areas will recover earliest,' he said.

He said the management's priorities were to return to positive cash flow and reduce gearing. The company is also looking for acquisitions to be funded through share issues.

Moorfield was reversed into by Grosvenor Terrace Developments.