Livesey’s losses mount on gyms disposal

TRAFFORD Park-based developer and contractor PJ Livesey Group saw its losses increase by almost 70% to £6.6m in the year to June 30, 2011 (2010: £3.9m), according to newly-filed accounts.

Turnover dropped by 17% to £42.2m (£50.6m) as the company struggled with “the continued severe slowdown in the housing market”, but operating losses of £3.5m (£3.8m) were inflated by an exceptional charge of £3m – £2.7m of which related to the sale of the company’s gyms business.

The Livesey Group sold off its two GL-14 gyms at Chepstow street in Manchester and at Fairfield Park in Bedfordshire in July last year, shortly after the company’s year end. They were sold to the Bannatynes Health Club business owned by Dragon’s Den entrepreneur Duncan Bannatyne for an undisclosed sum.

The accounts state that “as these disposals were substantially agreed at the year end, provision for impairment to their carrying value has been made in these accounts.”

It added that the sale “has provided funds to reduce bank borrowings and the directors will now focus on the principal activity of the group”.

The gyms had been set up by Georgina Livesey-Daniels – daughter of PJ Livesey’s founder Peter Livesey and a group director. She said that the business had operated as a standalone company, and that since she was now focussed on the company’s development schemes it “made sense to sell and invest more of my time in the core construction business”.

“We’re currently live on six sites and working with the Homes & Communities Agency & English Heritage to regenerate these and bring them back into use,” she added.

The company specialises in converting historic buildings and is currently live on a major scheme known as The Residence at Stonehouse Hospital in Dartford – the former City of London Lunatic Asylum.

It is also converting a former Cotton Mill at Blackburn Road in Bolton into The Cottonworks, the former St Anne’s Hospital at Bowdon in south Manchester into a development known as Bowdon Place and another former series of hospital buildings at Frodsham in Cheshire into a scheme known as Kingsley Park. It is also on site at Alden Place in Helmshore and at Parkwood Mills in Longwood, near Huddersfield.

Livesey-Daniels added that the company hoped to announce its latest development later this month.

The pre-tax loss declared by the company meant that its net assets reduced to £27.3m (£34m). However, net debt more than halved to £22m (£46.6m).