Harrison predicts profit boost as it eyes further development opportunities
S HARRISON Developments today said it has extended its cash reserves to invest in new development opportunities following the sale of two schemes in Yorkshire and the phase one completion of a £14m regeneration scheme.
The York-based firm, headed by group managing director Ann Scott, is predicting a significant profit increase for the year as the group looks at a number of new schemes for 2014 and beyond.
Following the handover of a new multi-storey car park for Lichfield District Council, and the completion of new homes for the elderly for Bromford Group in Lichfield, pre-tax profits for 2013 look set to top £3m compared with £1.3m in 2012.
Cash reserves at the turn of the year, expected to be around £14m (2012 – £3.96m), will be boosted by the sale of the 258-bed St John Central student halls of residence in Hungate York to York St John University in a deal signed in November.
It takes the total number of student units provided by Harrison to the university to over 750.
The university, which has seen student numbers increase from 5500 to 7350 since 2009, continues to expand, with high quality accommodation as one of the core platforms of its student offer.
In November, S Harrison also completed the sale of The Press offices site in Walmgate, York to independent student accommodation provider Student Castle.
During 2013, Harrison successfully won planning approval to provide 648 student units on the site with a design which also provides purpose-designed offices for The Press team enabling the Newsquest-owned newspaper to maintain its city centre location whilst maximising the value of its site.
Student Castle chief executive Edward Cade estimates that the scheme will be valued at £35m once completed.
He said: “We’re delighted that, following our acquisition of the Press offices site, we will continue to work with Harrison on the delivery of the new newspaper offices. We plan to start work on site immediately and aim to open for business in York in 2015.”
Ms Scott added: “These schemes demonstrate exactly what we do best. We have taken city centre sites, each with a difficult history, and delivered high quality outcomes which work for everyone concerned. We are continually on the look-out for other stalled or challenging sites across the UK where we can bring our design, planning and development expertise to bear, and make a real difference.”
During 2013 Harrison has won plaudits for its multi-award-winning West Offices development, which now provides the £32m headquarters and customer centre for City of York Council.
Harrison also recently announced the start of work on a new Premier Inn hotel in Lichfield.
The company, which is based at The Chocolate Works at Bishopthorpe in York, expects to announce its full results for 2013 in Spring 2014.
