The company which owns a large chunk of Plymouth’s waterfront and the long lease on its former airport has swung back into profit and is now planning to build two huge blocks of waterside flats in the city.
Sutton Harbour Group Plc (SHG), the AIM listed waterfront regeneration and destination specialist, has announced a pre-tax profit of £72,000.
While small, it is a turnaround on the £136,000 loss it announced in July 2018 – it’s first deficit in five years.
However, the board does not recommend payment of a dividend on the year's results, yet again.
In preliminary results for the year ended March 31, 2019, the company, run by Canadian Philip Beinhaker, revealed its property portfolio value had risen to £45.7million from £42.7million. Net debt had also been driven down to £21.4million from £21.9million.
In November 2018, the company, which this year changed its name from Sutton Harbour Holdings, received planning approval for two large residential schemes at Sutton Harbour on Plymouth’s waterfront – and plans to start building both in 2019.
Harbour Arch Quay will be a nine-storey block and Sugar Quay, estimated as a £60million development, will have 20 floors of flats. There was also approval for a two-storey extension to the existing multi-storey Harbour Car Park.
The Harbour Arch Quay development will include 14 flats and the Sugar Quay building has 170 apartments. Both are due to start construction by the end of the year.
The two storey Harbour Car Park extension, which will accommodate a further 114 parking spaces, is also due to start late 2019, with the additional parking to be available for use in summer 2020.
In December 2018 SHG held a general meeting at which shareholders approved the issue of 10,344,951 new ordinary shares via an open offer to existing shareholders.
This issue was fully subscribed and resulted in a fresh equity injection of £3million, before costs, to be used in the ongoing development of the firm including pre-construction costs in respect of Harbour Arch Quay and Sugar Quay and to meet capital maintenance costs and other funding requirements across its ordinary and development activities.
In March 2019, a Government Inspectors' report concerning Plymouth City Council's new planning framework was issued which affirmed safeguarding for a period not to exceed five years of the former airport site for possible general aviation use. SHG wants to build houses on this land, but will have to wait.
SHG had prepared an initial masterplan for mixed use development for the 113-acre site and continues to refine this to ensure its formulation as a development programme is deliverable in phases to meet planning framework policy and an aspiration for a new sustainable urban neighbourhood.
The company employs 30 people and is based at Sutton Harbour. It also owns car parks, two marinas and Plymouth Fish Market, where it has invested recently.
The company is engaging with stakeholders, including Plymouth City Council, on events to be held in 2020 to commemorate the 400 anniversary of the departure of the Pilgrim Fathers on the Mayflower vessel to America.
The historic port of Sutton Harbour is the focal point for commemorative events and the company is making ready for the expected high number of visitors to the area.
Mr Beinhaker, executive chairman, said: “ The company has continued to deliver on its vision to be the leading marine, waterfront regeneration and destination specialist in Southern England in accordance with its stated strategy.
“We have delivered major new planning consents, completed in-depth reviews of other trading activities and put strategic plans for growth in place.”
To contact William Telford: william.telford@reachplc.com
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