27th Mar 2020 12:50
(Alliance News) - Sutton Harbour Group PLC on Friday said it trading in its financial year was strong but envisages a more difficult year ahead following the cancellation of key summer events due to the coronavirus.
Shares in Sutton Harbour were down 20% at 13.12 pence in London in midday trading.
For its financial year ending Tuesday next week, Sutton Harbour said trading was "good" and car parks revenue grew, while its investment rental portfolio held steady.
As at January 31, Sutton Harbour's investment and owner occupied properties assets were valued at GBP46.0 million, having been worth GBP45.7 million the year before.
Sutton Harbour said: "The impact on our businesses of the coronavirus epidemic on the current year's results to 31 March 2020 will not have a material effect on company revenues as rents and marina berthing fees were almost entirely collected in advance of the outbreak with the impact on the Fisheries and Car Parking businesses in confined to the last trading weeks in March 2020."
However, its noted that a programme of summer events taking place around Plymouth's Sutton Harbour has been cancelled, including those to celebrate the Mayflower 400th Anniversary commemoration.
"The loss of these events, which underpin visitor and tourist activity, will diminish car parking revenues and undermine the collectability of tenants' rents, many who are in the tourism and hospitality sectors and depend upon a good summer season," Sutton Harbour said.
Pre-paid bookings for berthing at Sutton Harbour's marinas have been higher year-on-year so far in 2020 but it is forecasting that income from the visitor and summer season will suffer as a result of the pandemic.
Its Fisheries business has been in "sharp decline" of late after fish prices crashes. However, Sutton Harbour is not permitted to close the fishmarket or lock due to "the obligations of the Statutory Harbour Authority and designation of the port operations under Transport provisions".
Sutton Harbour said: "The company is actively engaged with local and regional government and recognised trade bodies with the objective of securing support for the losses occasioned by the government restrictions, both in our direct business activities and those of our tenants, particularly those in the leisure and hospitality sector.
"An additional immediate concern is for support for the Fisheries and Lock operations, which we must sustain despite minimal income, for which we will work collaboratively with other ports to secure Government aid, and to lobby for increased support to landlords to allow greater support to tenants who cannot trade during this crisis."
At present, Sutton Harbour is working with its banker, with its banking facilities having been "committed in November 2019 for a further four years".
"The potential cash impact of this crisis has been shared with the company's bankers, with whom collaborative discussions have started to put in place safeguards by way of additional funds, if such are proved necessary, to assure the company's continued successful operations through this period of restriction upon business activity," the company said.
"The company has the asset backing of a unique estate of harbourside facilities, commercial buildings and development land with planning consents for approved residential projects, with good prospects for trading growth and development of consented buildings at Sutton Harbour to bring forward when normal operations resume," added Sutton Harbour.
By Anna Farley; [email protected]
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