Values upheld at Emerson
THE value of North West property giant Emerson Group’s portfolio improved in the year to April 30 despite the turbulent environment in the sector.
The company, which is owned by founder Peter Emerson Jones and his family, saw the value of its investment properties increase by £13.2m to just over £933m, according to newly-filed accounts. Net assets, which take into account other assets and borrowings, increased by £9.2m to almost £650m.
During the year, Alderley Edge-based Emerson’s pre-tax profit before exchange movements dipped by 11% to £23.1m, although it lost £5.8m on exchange movements, due to the continued appreciation of the Japanese Yen.
Group turnover also dropped by 3% to £157.3m, which Mr Emerson Jones blamed on “lower housing completions and rents in the UK”, which he said had been offset by improved sales in the US.
The group has three principle operating divisions – commercial property developer and investor Orbit, the Jones Homes housebuilding arm which specialises in higher value developments, and an international division with significant property holdings in the US and Portugal.
Mr Emerson Jones said the value of its commercial properties had held up well, with retail properties “showing a strong yield and valuation”.
He said the redevelopment of buildings at Park Square in Cheadle “have been well received and generated interest”. Similarly, a redevelopment of offices at 50 and 50A Alderley Road in Wilmslow had led to the buildings being fully let, while occupancy rates had also improved at Parkway and 55 King St.
New restaurant units had been taken by Bella Italia and Ask restaurants at Middlebrook Retail Park, while the arrival of the BBC at MediaCity:UK had led to several new lettings being achieved at Lowry Outlet Mall. Although rents at Orbit fell by £1.2m to £76.8m, Emerson Jones said that current occupancy levels of 90% across Orbit’s properties was “commendable in the current market”.
Turnover also fell at its UK housebuilding division, but profits only dipped by 3% to £9.6m, which he said “compare very well with with our peers in the housebuilding industry”.
Overseas developments in Portugal – principally luxury homes and apartments around golf and country club resorts – have struggled to sell due to the weakness of the country’s economy. In the US, the weakness of the commercial sector has been somewhat offset by strong sales on many of its luxury property ventures in the Florida area.
“We have experienced a time of considerable change since the Lehman Brothers crash in 2008 and the financial forecast for the future remains uncertain, particularly over the next two years,” said Mr Emerson Jones.
“With a strong balance sheet and cash reserves together with the support of our professional advisors and bankers I feel we are in an enviable position to take the group forward and benefit from opportunities which I am sure will arise.”
