Fort Dunlop developer returns to profit
URBAN SPLASH, which re-developed Birmingham landmarks Fort Dunlop and The Rotunda, has returned to profit.
And it has seen a substantial increase in its turnover from £33.6m to £132.6m, its highest ever-recorded turnover figure.
Releasing the results of its latest accounts, for the period ending September 2013, the Manchester-based developer recorded a small profit of £0.05m – improved from the loss of £15.4m in the previous year – while its annualised investment income has increased by £0.8m to £14.7m.
The firm said the balance sheet position worsened largely as a result of a £16.3m downward revaluation of the group’s commercial properties reflecting that regional commercial property values remained depressed in the period.
It says it is now seeing the benefits of an improving property market.
Chairman Tom Bloxham MBE said: “The last 18 months has been one of the most important in our recent history; one which has hopefully put Urban Splash on a sound platform for future growth as well as finding a solution to the problems associated with the large debt burden which has beset us since the onset of the financial crisis in late 2008.”
During the period covered by the accounts, Urban Splash sold a £77m residential portfolio to Places for People, Urban Splash and formed a joint venture working partnership with the organisation to develop property across the UK.
Their first project together, the construction of 182 apartments in the second phase of Park Hill, Sheffield is currently on site and the joint venture is currently working on other projects.
In April this year, Urban Splash restructured its banking arrangements and working in partnership with The Pears Group agreed financing on all of its remaining debt and the Urban Splash Braun portfolio, which consists of 35 properties including Fort Dunlop.
This also resulted in the formation of another joint venture with Pears which will be developed in the coming years.
Bloxham added: “This financial year saw us successfully conclude a fundamental restructure and refinance of our business which has addressed the legacy debt position of the group and created a new corporate structure enabling us to grow, start new development projects and form new joint venture relationships which we believe will be key to the future success of the business.
“Despite the difficulties faced by our industry over the last five years, Urban Splash has maintained its reputation as one of the country’s leading regeneration companies.
“With our restructure and refinance behind us I believe that together with our new partners and our established brand, we are in a position to respond to the many opportunities now presented by the property market in the UK – we have lots of new ideas and we hope to be announcing some of them soon.”
