Interest rate rises see Plymouth property firm slip into loss
Property firm Sutton Harbour slipped into a £119,000 loss over the last six months.
Bottom line results were affected by progressive interest rate rises which resulted in the net loss for the period.
The loss before taxation for the six-month period to 30 September 2023 was £0.119m compared to £0.223m for the same period last year.
The Devon regeneration company has completed several key projects in the last six months and is planning for a busy year ahead.
It completed its Harbour Arch Quay development and oversaw the sale of all 14 apartments.
Its North Quay House redevelopment is programmed for delivery in 2024.
And the company has unveiled a debt reduction strategy plan to reduce interest burden which will start next year.
Philip Beinhaker, executive chairman, said: “In the period under review and into recent months, the Company has delivered the construction work and full occupation of two major projects in Sutton Harbour, both which have already added to the quality of the local built environment and are the first significant developments in more than a decade around Sutton Harbour.
“The Company is committed to continuing with its development programme to ensure the future quality and sustainability of the area and delivery of medium to long term value for investors.”
Net debt has increased to £30m, being £1.2m more than the net debt position six months ago.
With interest rates expected to persist at or around current levels for the foreseeable future the board is focused on reducing its debt level significantly within the next year to manage debt servicing costs down to a more comfortable level.
The company has therefore begun exploring options to realise the value of some of its asset portfolio within the next year to reduce bank debt and to provide some working capital for essential investment into operational assets and for pre-construction project costs.
And Sutton Harbour is actively working with its current bank, NatWest, other banks and specialist development funders to support the debt reduction plan and future funding needs.
