JAMES Smith Estates, the Horsham-based property investment company, has reported a 23 per cent rise in profits.

Preliminary results for the year to March show a profit of £3.1 million, compared with £2.5 million for 1997.

The news was greeted on the stock market with an immediate 21 per cent rise in the share price to 145p.

During the year the company agreed terms for the sale of the majority of its shareholding in the Lewes-based furniture maker CS Furniture to its management.

Chief executive Tony Roscoe said the firm's property sales programme had progressed well with the disposal of 20 individual properties that were seen as offering little in the way of potential. These sales realised £7.4 million and exceeded book value by 10 per cent.

He said: "These have been replaced with a range of investments in the office and industrial sectors located in areas where land supply is restricted and there are opportunities for value enhancement through active management."

The properties are in Chichester, Amersham, Guildford and Wokingham, and cost £7.2 million.

Mr Roscoe added: "As our activities and requirements have become more widely known the number of opportunities available to us has increased. We expect to exchange on three further acquisitions totalling £6.9 million in the near future."

The value of the James Smith property portfolio rose from £58.17 million to £67.35 million during the year, and increase of 16 per cent.

The company said the south east commercial property market appears to be moving firmly ahead in response to low interest rates, greater economic optimism and tight supply and it has a management team that is capable of extracting the maximum value from the portfolio.

BYKEITHWINSPER

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