Developer Urban Splash has increased its profits, it revealed in its first full set of results since restructuring in 2013
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The Manchester-based company made a £7.6 million profit before interest, tax and goodwill in the 12 months to 30 September 2014.
The profit figure compares to a small profit of £50,000 during the previous year, and a £15.4 million loss the year before that, following a downturn in commercial property values and the lack of availability of mortgage finance.
In April 2013, the company restructured its banking arrangements and, working in partnership with property group Pears, agreed to refinance £135 million of its existing debts.
Urban Splash chairman Tom Bloxham said: ‘The challenges and demands of the last five years are now behind us and we are pleased to be firmly focussed on growing our business once again.
‘We might be older and hopefully a little wiser - and with a bit less hair! - but we have not lost any of our energy, creativity and determination to make a difference and deliver award winning, design-led and innovative regeneration schemes across the country.’
Bloxham said that although the firm reported a £43.4 million loss over the past year, this figure was made up of two large charges which relate to the way the group was historically funded.
He said: ‘The charges, which did not have any cash outflows, do not affect the current operations of the group and specifically the newly formed companies which comprise the bulk of the group’s trading activity. After adjusting for these items, the group made a profit.’
The top RIBA Award-winning client also repaid debts of £128.8 million and posted a turnover of £44.4 million during the past year.
Since the restructure, the group has concluded the refinance of £195.9 million of debt, £93.6 million of property transactions and repaid £134.9 million of debt.
The past year also saw the establishment of new joint venture partnerships with Places for People and The Pears Group and several new residential and commercial schemes in Manchester, Plymouth, Sheffield, Bristol and North Shields including the launch of the a new modular housing concept branded hoUSe.
Bloxham said that the commercial portfolio had performed well during the period, with assets at Royal William Yard in Plymouth now fully let, while in february, Urban Splash announced that it had also bought the city’s Civic Centre.
The firm also manages 840 rented homes, and Bloxham said that occupancy levels are currently in excess of 97 per cent with 2,000 further units in the pipeline.