Property rental group Marshalls on Friday reported a 38.5% rise in headline earnings per share to 11.5 cents for the six months ended June from 8.3 cents a year ago.

No interim dividend was declared due to the proposed change of the year-end to September, the company said.

The group reported operating profit before interest of 3.284 million rand from 2.914 million rand a year ago.

The company said the demand for leased light industrial properties is expected to continue and result in increases in both market rentals and property values.

The recent increases in the prime interest rate do not appear to have had any effect on selling prices and it is still proving difficult for the group to acquire additional properties at suitable yields.

Available cash and bank facilities in place for future expansion approximates 14 million rand, it said.

In the current period one additional property was acquired and one was sold resulting in a net decrease in gross lettable area of 7,422 metres. The group also disposed of a vacant property for a nominal amount.

The group's permanent portfolio of shares in listed investments held overseas reflects a market value of 28.8 million rand compared with 25.8 million rand before. In Sterling terms dividend income on the portfolio has increased by 17%.

Marshalls became a 70% subsidiary of Marshall Monteagle Societe Anonyme in April 2007 as a result of the offer made by Monteagle to acquire all the issued shares that it did not already  own.

The group said further administrative changes are envisaged in the near future, including the proposed change in Marshalls' name to that of Merchant  & Industrial Properties and to bring the group's year-end in line with that of Monteagle resulting in the year-end changing to September 30.