Mansion expects return to profit after posting £4.3m loss
Manchester-based student property specialist Mansion Group has said that it has returned to profit after a difficult trading period which saw its main sales channel dry up. The firm has just filed accounts for the year to April 30 2009 which show that it declared a pre-tax loss of £4.3m in the year to April 30, 2009 (2008: £131,000 profit) on sales of £16.7m (2008: £10.4m).
However, it said that the year in question included an eight-month period where it effectively stopped trading until it “established a new sales channel”.
Mansion Group initially bought properties and converted them into student accommodation before selling them to property investors. However, the collapse of the buy-to-let mortgage market led to a change in strategy with investors being attracted through property funds instead …