Property company returns to profit in ‘successful’ year for group

Property and investment company Wykeland Group has returned to profit and risen revenues in a year the directors described as ‘successful.’

This week publishing its annual results to the 31 March 2018, the Hull-headquartered firm said its revenues rose to £10.4m – up from £9.3m in the previous year. The firm reported pre-tax profits of £1.1m; a return to profit for the firm, which reported pre-tax losses of £3.9m in 2017.

The firm stated: “Operationally this has been another successful year for the Group. Our core portfolio of around 1.7m st ft of office and industrial units has been more than 96% let during the year. Flemingate, at Beverley, which comprises retail units, restaurants, offices, a cinema and a hotel, is now over 95% let and footfall is on average 18% higher in 2018 than the corresponding period in 2017.”

The Group portfolio is worth £59.8m, a rise of £2.4m on the previous year. But Wykeland’s Beverley division experienced issues around re-financing. The firm said: “Due to the fall in regional retail asset values caused by Brexit and the continuing uncertainty around the retail environment, the Group was unable to complete the refinancing of the Flemingate debt, as had been anticipated last year, and resulted in a fair value adjustment to various assets amounting to £11m.”

During the year, its ERGO Centre development was opened – a joint venture between East Riding of Yorkshire Council and the University of Hull. The group also sold the 200,000 sq ft head office for Centrica on its Bridgehead site; it also bought a further trance of land from a development partner.

There has also been progress on the Fruit Market scheme and the firm is moving forward with the development of a former prison site in Northallerton.

During the year, the firm supported cultural and educational organisations, with around £46,5000 contributed.

Ian Franks, Wykeland Group Finance Director, said: “These results reflect another very successful year for the business. Our portfolio is 96% let, with rental income showing encouraging growth and strong demand from blue chip brands to be part of our flagship schemes such as Bridgehead, Meltonwest and @TheDock.

“Excluding Flemingate, underlying group pre-tax profits in the year were £7.5m, compared with £4m the year before, and we are well placed for further growth in coming years. We have an exceptionally strong development pipeline, including what will become one of the largest business parks in the Yorkshire and Humberside region, following our recent purchase of the Melton Park site in East Yorkshire.

“Our joint ventures with Beal Homes and Hull City Council to regenerate the Fruit Market and with Hambleton District Council to redevelop the former prison site in Northallerton, North Yorkshire, are also making excellent progress.

“The bottom line profit figure reflects a write down in the book value of certain assets relating to our Flemingate centre in Beverley, offset by a profit resulting from the reorganisation of the Flemingate debt. Despite the weakness of the retail environment nationally, Flemingate is now 95% let, with footfall growing by 18% year on year.”