Developer achieves £100m profit in record year
DEVELOPER IM Properties has more than doubled its pre-tax profits to generate £100m for the first time.
The Coleshill-based group increased 2015 revenues by 30%, to £164.1m, on the back of a strong performance by its development divisions.
Its commercial and residential development arms reported turnover of £118m, up 35%, which contributed profits of £54m. The group had significant work in progress at the year end of £188m and expects the divisions’ growth to continue.
IM Properties’ investment portfolio has also increased, with the value rising by one-fifth to £704m while headline rental income rising almost in line, to £46m.
The mixture of the investment portfolio, which it says “provides a stable base with consistent profits”, and its development divisions, which “provide higher returns” through medium and long-term projects, resulted in increasing pre-tax profits by more than £60m to £103.2m.
“We have enjoyed an exceptional year and are well equipped to deal with any market volatility,” said Tim Wooldridge, managing director of IM Properties.
“The sale of a £200m industrial portfolio to a Malaysian pension fund earlier this year, has deepened our war chest and whilst we have already made a series of acquisitions this year, we have the resources to take advantage of opportunities as and when they arise.”
The group had put in place hedges to protect against a weakening of Sterling in the event of Vote Leave winning the EU referendum, and it said it maintained “significant cash reserves” to ensure it had sufficient liquidity.
Mr Wooldridge added: “Clearly there is uncertainty across the property market at present and we will have to see how it all unfolds over the coming weeks. We are confident that the strong fundamentals underpinning the UK economy will prevail in the medium term.
“We are fleet-of-foot strategically, because we aren’t burdened by a complex shareholder structure, and our decision-making is quick and uncomplicated.We are very confident in the robust nature of our business model, which has consistently delivered profitable growth for the last three decades.”
