Property firm slumps into loss due to soaring costs

Property firm Sutton Harbour Group said soaring energy costs and increasing interest rates resulted in the  business suffering a £90,000 loss over the last 12 months.

The AIM listed firm, which is based in Plymouth, made a profit of £360,000 in the previous year.

Sutton Harbour owns and operates Sutton Harbour and is a specialist in waterfront regeneration projects.

It also operates waterfront real estate, marinas and Plymouth Fisheries.

The company said the first new development project at Sutton Harbour in a decade, Harbour Arch Quay, is under construction and due for completion this summer.

Sutton Harbour added that it has seen record trading year for the marinas with near capacity occupancy throughout the year.

The strong trading in the marinas and car parks reflected in increased valuation of the owner occupied property portfolio at £38.3m.

Philip Beinhaker, executive chairman, added: “The board is pleased with the successful delivery of new developments to meet objectives of sustaining and enhancing the attractiveness and amenity of the Sutton Harbour area and to create long term value growth from the assets.

“The investments made in the past year are proof that sustainable success is achievable with improvements to the Harbour environment for the benefit of visitors, workers and residents.”

He added: “The company has been engaged in the delivery of two key property projects during the financial year, in line with the strategy to improve the quality, value and sustainability of the Sutton Harbour area.

“The marinas achieved another record season with berths occupied effectively to capacity during the year.

“The nature of the company’s operations and level of debt carried has exposed the company to significant cost increases as a result of rising interest rates and the extreme energy cost spike in the second half of the year.

“Energy costs have declined at the start of the current financial year and the company is securing more cost effective contracts and with more stability in supply.

“In May 2023, subscription for new equity shares by the major shareholder provided £2.923m to further support the company’s operations and projects in the face of ongoing higher costs and to permit reduction of bank loan debt.”