Ewart, the Belfast property company, has announced strong growth in profits and net assets, as part of its ammunition against the unwanted bid from Dunloe House.

Interim results show a 33 per cent rise in profit before tax, from £824,000 sterling to £1,093,000 in the six months ended December 31st, 1997. Net assets per share have risen from 62.5p to 81p and the interim dividend is being raised from 0.70p to 0.75p.

Dunloe is understood to be surprised about the rise in the value of the properties. Mr Philip Byrne, Dunloe's managing director, told The Irish Times: "We note the interim forecast results from Ewart and the discovery of value by the executives since last June and we await their response document to comment further of these values". He also noted that Ewart is "talking to a number of interested parties but they are not talking to us". However, Ewart chairman, Mr Brian O'Connor, commenting on the latest results said "given the progress the company has made, it comes as no surprise to shareholders that we as a board have not welcomed the approach from Dunloe. Chief executive, Mr Barry Gilligan, said Ewart's "potential has still to be fully realised". Also, "exciting and profitable times lie ahead with the unlocking of our key development properties in 1998".

The net asset value got a boost from the recent letting of the entire Ross's Court building in central Belfast to Argos at an initial rental of £350,000 per annum. This added 4.4p per share. The recent acquisitions at Braintree, Essex and Ayr in Scotland added 3.5p. Retained profits added 3.5p while other investment properties added 5.5p. Another acquisition was the Design Centre in central Belfast but will not enhance asset value until it is fully let.

The latest profit boost was achieved despite an exceptional provision of £100,000 associated with the takeover bid. Excluding this, profits rose by 45 per cent. However, Ewart had the benefit of reduced head office and corporate expenses, down from £455,000 to £435,000.

Turnover grew from £6,391,000 to £7,270,000. A breakdown shows a rise in property rentals from £3,703,000 to £4,018,000 and an increase in revenue from property development from £2,688,000 to £3,252,000. Reflecting real growth, earnings per share went up from 1.92p to 2.38p.