Plymouth’s Sutton Harbour Group has recorded losses of £119,000 over the past six months.
In its interim results for the period ended September 30, the company which owns a large swathe of Plymouth’s waterfront and its former airport site, said its bottom line results were affected by rising interest rates resulting in a net loss for the the period.
The company recorded a loss of £0.119m before taxation for the six months, compared to £0.223m for the same period last year. Gross profit however was up from £1.415m in 2022, to £1.620m.
Like this story? Why not sign up to get the latest South West business news straight to your inbox.
Sutton Harbour Group has completed several projects in the past six months including the completing of Harbour Arch Quay and the sale of all 14 apartments was completed by early November 2023. In addition, the North Quay House redevelopment programme is set for delivery in 2024 and the group's debt reduction strategy to reduce interest burden will also commence next year.
Philip Beinhaker, executive chairman, commented: "In the period under review and into recent months, the Company has delivered the construction work and full occupation of two major projects in Sutton Harbour, both which have already added to the quality of the local built environment and are the first significant developments in more than a decade around Sutton Harbour.
"The Company is committed to continuing with its development programme to ensure the future quality and sustainability of the area and delivery of medium to long term value for investors."
Net debt increased to £30.468m, being £1.209m more than the net debt position as at March 31 2023 of £29.259m.
With interest rates expected to persist Sutton Harbour Group said that it is "focused" on reducing its debt level within the next year to manage debt serving costs down to a "more comfortable level". At present the Company has banking facilities of £21.7m secured by a property asset portfolio valued at March 31 2023 of £58.9m. The former airport site is not included in this security figure.
The group has begun exploring options to realise the value of some of its asset portfolio within the next year to reduce bank debt and to provide some working capital for essential investment into operational assets and for pre-construction project costs. Sutton Harbour Group is now working with its bank, NatWest, other banks and specialist development funders to support the debt reduction plan and future funding needs.
