17th Jun 2014 09:41
LONDON (Alliance News) - Marine and waterfront regeneration specialists Sutton Harbour Holdings PLC said Tuesday it swung to profit in the recent full year, after its results in the previous year were affected by the loss of its airport activities, delays in achieving lettings and revaluation losses.
The company, which operates in Plymouth, posted pretax profit of GBP265,000 for the year ended March 31, compared with a GBP3.7 million loss a year earlier. In the previous year the company made a GBP3.4 million loss on fair-value adjustments on investment property.
Revenue remained broadly flat at GBP7.0 million.
During the year the company opened its new, partially complete marina in Plymouth. King Point is a new 171-berth marina including shoreside facilities and related car parking. Sutton Harbour said it has now let the 2,012 square foot first floor to an unnamed restaurant operator.
AIM-listed Sutton Harbour Holdings also said it has signed four new lettings around Sutton Harbour, Plymouth equating to 9,015 square feet and sold one acre of land adjacent to the former Plymouth airport site, which Sutton Harbour closed in 2011.
The firm said the occupancy rate across its real estate portfolio rose to 86% compared with 85% a year earlier, despite losing two restaurant tenants holding four units between them. One of these units was immediately assigned to a new tenant.
Sutton Harbour said car parking revenues showed encouraging growth, with gross revenues up to GBP374,000 from GBP347,000 a year earlier. During the year it added new machines with card payment facilities which have proved popular with customers.
At the period-end the firm said its total portfolio was valued at GBP38.5 million, up from GBP37.0 million.
Sutton Harbour Holdings said it still has no concrete plans in place for the former Plymouth airport site. While it still manages and maintains the site, it is working towards a full planning application together with a number of supporting schemes to find a use for the land.
Looking ahead, the group said it is focused on its plans towards realisation of land assets and development of other sites to release cash and to grow the asset base. Sutton Harbour said it is also committed to a medium-term programme of capital investment with matched grant funding to support and grow revenue from existing facilities.
"The group is now well placed to take advantage of increasing demand for its real estate portfolio and to drive revenue increases from marine-related and car park trading businesses," the firm said.
Despite its improved performance the firm said it will maintain its policy of not paying a dividend. However it said it remains "conscious" of the importance of a dividend to many shareholders.
The group said it continues to work towards the successful realisation of development sites with the objective of reducing debt levels and consequent saving in debt servicing costs.
"Achievement of this objective and the prospects of future investment opportunities will be a major factor in determining future dividend policy," Sutton Harbour said.
Sutton Harbour Holdings shares were quoted down 1.5% at 28.33 pence Tuesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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