Property business boosted by ‘exceptional revenues’
Warrington-based commercial property company Langtree has declared “a pleasing year” in its latest financial results, culminating in the buyout of a founding shareholder’s interest.
The share buyback was concluded between Langtree and founding shareholder Network Space in August in a deal worth more than £2m, to consolidate the business in the hands of existing shareholders.
“In acquiring the shares, we offer our sincere thanks to Network Space for the original opportunity and for their support over the last four years,” said chairman Tim Johnson.
He hailed “another year of achievement” and said the business is in good shape to fund anticipated expansion after reporting a pre-tax profit for the year to March 2019 of £5.915m, compared with £965,652 the previous year.
This was on the back of £7.37m in turnover, up from £1.743m in 2018, boosted by £5.741m of “exceptional revenues”.
Mr Johnson said: “The business is in a very strong position, organisationally and financially, to take advantage of the opportunities before it.
“Our focus is to pursue further growth from a very solid base whilst driving forward those projects and joint ventures already in place.”
Langtree enjoys a number of joint ventures with local authorities, including the proposed regeneration of Parkside Colliery with St Helens Council and the Southern Gateway scheme in Warrington via its Wire Regeneration joint venture with the local authority.
All schemes moved forward, said Mr Johnson, noting in particular how the removal of a major gas holder has allowed its Hollinwood regeneration scheme with Oldham Council to make significant progress.
In addition, the company’s joint venture with Halton Borough Council and the Science and Technology Facilities Council in nearby Sci-Tech Daresbury moved forward, with plans for the latest speculative development scheme at the campus of three new office buildings starting on site in the next few months.
Group chief executive, John Downes, said: “We are in good shape to grow and are now seeking to bolster our team further.
“Our view is that in spite of the political headwinds, the UK economy remains in good health and there is room for further growth.
“Across our asset base we have occupancy of around 90%, which gives us the confidence to invest in expansion. There’s a proven and robust business model in place to support this.”
Langtree’s model includes a number of third-party management contracts comprising industrial, office and residential for clients such as Warrington Borough Council.
Its partnership with fund manager PGIM Real Estate continues to thrive, with Langtree managing property assets and refurbishment schemes on its behalf across the North West, Midlands and Yorkshire, as well as managing a range of major development opportunities over a number of sites.
Mr Downes said: “Our relationship with PGIM Real Estate and our other corporate clients provides a valuable additional string to our bow which continues to grow.
“Across all aspects of our business we continue to work with a small group of loyal advisors and, of course, a highly dedicated and hard-working team in-house. My thanks go to all of them for their continued efforts.”