Kensington grapples with planning

LANCASHIRE housebuilder Kensington Developments failed to secure planning permission for any of its residential plots last year.

But it said it performed better than many of its competitors during the early days of the housing slump.

In newly-filed accounts for the year to August 31, 2008 director Denley Barrow admitted there had been a “considerable amount of uncertainty” around the housing market due to the lack of mortgage finance and the general loss of confidence in the sector.

But he said Kensington, based in Lytham St Annes, had outperformed its competitors. He added: “The company will continue its efforts to reduce costs and increase sales effectiveness to ensure the company remains competitive in this challenging market.”

During the year the business recorded a pre-tax profit of £488,152, up from £69,890 the previous year. Turnover rose 16% to £22.4m.

Kensington said it had continued to develp and resell land holdings, which had helped push up turnover. But it failed to secure residential planning permission on the plots it owns.

The accounts do not detail specific sites where the business has struggled to gain approval, but it has grappled with local opposition to its Lytham Quays development for several years.

The accounts also show the company made a donation of £5,000 to the Conservative Party and paid more than £220,000 in interest on three £1m short-term loans from a charity run by the company’s owner Malcolm Hawe.

Mr Barrow could not be reached for comment.