Arley Homes back in profit
WARRINGTON developer Arley Homes has returned to profit after enjoying a stronger year’s trading.
Newly-filed accounts for the year to May show revenues nearly doubled to £19.7m while the company recorded a pre-tax profit of £1.2m, compared with a loss of £505,000 last time.
Arley was created in 2005 following a management buy-in of Lindon Homes’ North West operations led by John Cosgrave in a £17m deal backed by Yorkshire Bank.
In their report the directors said: “Notwithstanding the continuing depressed economic and financial conditions, the group has secured and successfully developed several residential sites in good aspirational locations through the course of the year resulting in a strong performance on a number of financial and qualitative fronts.”
They add: “The directors are confident that the upward trend in the trading and profitability of the group experienced over the last three years can not only be maintained but improved upon and are looking forward to the coming year with pragmatic optimism and clear goals.”
At May 31 Arley had 109 plots in its land bank and has acquired a further 143 since then. In the accounts auditor Beever and Struthers flagged up the group’s net liability of £12.8m and said this, along with a looming debt deadline, indicated the existence of a material uncertainty. Nonetheless, the accounts have been prepared on a going concern basis.
The main part of Arley’s £35m facility is due for renewal in September, but the accounts show the funder is continuing to support the group and has committed £3m to buy three sites since the year end. Net debt at May was £26.5m, down from £31.1m last time.
