Property investment firm Raven Russia said the market in which it operates - logistics warehousing in Russia - is improving, and "looks great".

The company reported that its pre-tax profits soared from $8m to $86m for the six month period to 30 June.

Revenue was up from $62.7m to $72.4m while sales costs remained the same at $35m.

The group's profits were boosted by a rise in industrial rents in Moscow, where the company completed the largest letting in the market this year.

Glyn Hirsch, chief executive officer, said: "Valuations have improved a lot, mainly as a result of rents rising to reflect an increasing shortage of vacant space, particularly in Moscow. There is still very little new construction so this improving rental trend looks set to continue.

"As we go into 2012, our improving net operating income should make us profitable and cash generative each quarter. This will allow us to continue paying out through buy-backs or dividend depending on where our shares trade against net asset value at any given time."

The company is currently paying a dividend equivalent to 1.25p per share, while the basic earning per share is 14 cents.

Cash balance for the group is currently $115m, down from $129m at the end of June, when the company's net debt stood at $363m.

The share price was up 7.37% to 51.00p at 15:30.

The company's fully diluted net asset value per share at the end of June stood at 117 cents 71p), a substantial premium to the prevailing share price, prompting the company to propose a tender offer to buy back shares at 58p each. Shareholders may sell one share for every 46 shares they currently hold.

NR

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