By Nick Wilson

Durban-based holding company Marshalls reported on Friday that its headline earnings a share for the year to December had increased significantly to 16,3c from 9c the previous year.

The company's operating profit after interest increased to R4,6m from R2,6m.

Marshalls is a holding company that receives income in the form of dividends from its wholly owned subsidiary. This subsidiary in turn has a wholly owned subsidiary that has income-producing commercial and light industrial properties and a parking garage.

But Marshalls said it had been "frustrated in its attempts to invest surplus cash resources" and that only one extra investment property was acquired, towards the end of the financial year.

"The industrial property market has been characterised by low yield rates due to polarised levels of demand and supply," said Marshalls.

"Although new opportunities are constantly being investigated, the ability to invest in new properties that meet the board's investment criteria is expected to be limited.

"However, the buoyant market should also assist as inflationary pressures continue to push up market rentals and capital appreciation," the company said.

Business Day