Sales and profits fall at student accommodation business Vita Group

Alderley Edge-based urban regeneration business, Vita Group, has seen revenues and profits fall, during the year to December 31, 2022.

Accounts filed recently at Companies House show turnover was £356.747m, compared with £385.348m the previous year. Pre-tax profits of £10.021m have declined from £25.851m in 2021.

No dividend has been recommended for the year.

During the year the group sold its student residence in London and completed the construction of three new Vita Student residences, including the group’s first development in Spain, in Barcelona.

The group also secured a robust future development pipeline, acquiring a number of new sites for redevelopment.

The group continues to manage a property portfolio under operating management agreements following the sale of 13 residences in previous years, and the residence sold in the latest financial year.

Four additional Vita Student residences are scheduled for completion in 2023, and the business continues to grow other brands in the student and residential sector, and has a number of properties under development under the new Union and House of Social brands.

The directors said they expect the group to make profits in the future as developments under construction and planned developments complete and are sold.

Group net assets, at December 31, 2022, were £88.1m, up from £70m the previous year.

Michael Slater, Vita Group chief financial officer, said: “It’s been a great year for the business despite inflation driving up build, finance, and operational costs.

“Performance across Vita Group’s operational platform has continued to go from strength to strength, with increased revenue achieved thanks to high demand for Vita Group products from both foreign and domestic markets.

“With new buildings opening in 2023, exciting new brands coming to market and a robust development pipeline, we look forward to creating more thriving communities and building upon our success.”