Raven earnings rise but warns on sanctions
RAVEN Russia said yesterday that it planned to boost its payout to shareholders after a positive set of results, despite warning that sanctions on Russia could pose an increasing risk to the company.
The £530m London-listed firm supplies warehouse space for blue-chip companies in Russia such as Pepsi and has long been a favourite of fund manager Neil Woodford, who bought a 5.6 per cent stake for his new fund in May.
But shares have fallen more than 10 per cent over the past six months due to fears over how the Ukraine crisis and sanctions against Russia could impact the business.
Chairman Richard Jewson said that while Raven had not been directly affected by sanctions, “that may change if there is further escalation or the sanctions remain in place for a prolonged period”.
His comment came as the group posted strong half-year results, with underlying earnings up 37 per cent to $38m (£23m). Raven said its 1.4m square metre portfolio was 97 per cent let and two extensions completing this year were half pre-let.
It plans lift its payout to investors by 25 per cent by way of a buyback offer of one in 30 shares at 75p.