Robust results for property firm Bruntwood
Bruntwood, the company which owns the flagship Platform development in central Leeds, has reported strong financial results following a year of growth.
The business has unveiled plans for new developments and invested in the refurbishment of existing assets across the North and Midlands.
The results for the year to the end of September represent the first financial period since the group created Bruntwood SciTech, a 50-50 joint venture with Legal & General, to develop a network of innovation districts across the UK.
Turnover for Bruntwood Group rose 16.6% to £160.1m, whilst the total value of its assets under management increased from £1.3bn to £1.4bn. Pre-tax profit of £52m was achieved. This was down on the prior year, but ahead of expectations.
Bruntwood explained this reflects the re-risked nature of the group as the percentage of the company’s capital allocated to development was reduced to a third of the level of the previous year largely as a result of the introduction of Legal & General as a JV partner.
Profits included £10m for Bruntwood SciTech following a successful first year for the joint venture. And shareholders’ funds rose 8% to £614m.
Chief executive Chris Oglesby said: “At Bruntwood we are relentless in our passion to support our customers and to work closely with our civic and academic partners to help them grow by unlocking economic opportunities through the development of their property assets.
“In a year where the UK saw a sharp fall in inward investment as a result of the uncertainty over Brexit, we invested a record amount in creating places for businesses to thrive, reflecting our belief in the underlying strength and potential of great cities like Birmingham Liverpool, Leeds and Manchester.
“While we invest for the long-term, and never judge our performance in the context of a single year’s figures, these are strong results following a record year where our profits were buoyed by a number of one-off exceptional items.”
Reflecting the continued growth of Bruntwood and its focus on recruiting promising talent, employee numbers increased by nearly 100 to 850 over the last year.
Bruntwood also continued its pioneering work on sustainability as part of its commitment to be net zero carbon by 2030, by signing up to the Better Buildings Partnership’s new Climate Change Commitment; which aims to improve the sustainability of existing commercial building stock.
Oglesby added: “The cities in the North and Midlands are still growing and have proved to be very resilient as a result of the strong progress they have made in recent years and this gives us confidence for the future.
“We are seeing businesses demand far more from their workspaces and the wider place making offer in our cities; to help them attract and retain the best talent.
“Our overarching purpose to create healthy, vibrant and, ultimately, thriving cities will continue to see us doing far more than simply developing individual buildings, but rather working hand in hand with civic, business and third sector leaders, to make cities that work for their people.”
