Urban Splash continues talks with funders as losses widen
ROTUNDA and Fort Dunlop developer Urban Splash has faced another tough year, seeing losses widen from £9.4m to £15.4m.
In a challenging environment the Manchester-based group’s net debt levels rose £8m to £242.4m in the year to the end of March 2012. The group owes HSBC £90.6m and has a £113.6m syndicated loan facility repayable on demand after covenant breaches last March.
The company also moved from a positive net assets position of £4.9m in 2011 to net liabilities of £17.4m.
Staff numbers fell from 142 to 117 in the year.
Chairman and co-founder Tom Bloxham said: “The general economic malaise and downward pressure on valuations has had an impact on our commercial property portfolio, while the continued lack of availability of mortgage finance has acted as a barrier to potential homebuyers for our residential portfolio.”
He said the group – which has recently cut its executive team with the departure of deputy CEO Nick Johnson – is continuing talks with its “very supportive” lenders over a new financing deal.
Despite the difficulties the group faced, Bloxham said progress had been made on a “number of fronts”, with £21.6m invested in regeneration projects, 14 awards won and investment income rising £1m to £13.9m.
And turnover increased 16%, from £29.1m to £33.6m.
Bloxham added: “We have spent much time and hard work developing our residental and commercial investment portfolios. We believe our buildings are exceptionally well designed and both residential and commercial tenants appreciate the quality design and service Urban Splash is able to offer.
“We believe this sets us apart from the competition.”
Referring to the negotiations with the group’s bankers, he said: “We are currently fully engaged with all our funders in negotiating new bank facilities for the medium term.”
