Profits surge at Langtree
COMMERCIAL property developer Langtree Group reported a healthy rise in pre-tax profits in 2011to £8.9m (2010: £1.3m).
The Newton-le-Willows company, which owns 4m sq ft of office, industrial and warehousing space, also saw its turnover increase from £15.1m to £54.7m, largely due to an increase in construction turnover from its completion of St Helens’ new stadium and from a number of asset sales.
Langtree also said that occupancy rates across the estate also increased slightly to 83% (81%) in the year to June 30.
Chairman Bill Ainscough described the results as “a very pleasing performance in what remains a tough market,” and added that he expected business confidence to remain fragile, affecting demand and pricing.
“There are still plenty of head-winds out there but we have a robust business model and a seasoned management team that have delivered strong results,” said Mr Ainscough.
“We’ll remain cautious in our approach but will move development projects forward so that they can be ready to add value when the market improves. We remain on the look-out for well-tenanted acquisition opportunities.”
During the year the firm acquired the 120,000 sq ft Warrington Central Trading Estate and St James Business Centre, also in Warrington. It also completed the development of the new 18,000-capacity
St Helens rugby league stadium, Langtree Park, and secured Enterprise Zone status for its Daresbury Science and Innovation Park joint venture with the Science and Technology Facilities Council and Halton Borough Council.
“We’ll shortly be unveiling our plans for the future of Daresbury and there’s no doubt that this could be a game-changer for the North West economy,” he added.
In addition, the company also formed a strategic partnership with Oldham Council to bring forward development of land around the M60 at Hollinwood and also progressed the first phase of the Liverpool Festival Gardens site towards practical completion – although the collapse of its main contractor caused delays to the scheme, which should be finished in the next few weeks.
“We’re in a good position to continue growing and we’ll assess all and any opportunities that can add value to the group,” said Mr Ainscough.
“Strategic partnerships with the public sector will remain very important to our business model and we’ll happily explore with government how else we can work with them to bring forward economic development.”
The company’s net asset value dropped to £74m, from £80.9m a year earlier due the asset sales and a reduction in values.
