AGM Statement

RNS Number : 2059N

Sutton Harbour Holdings PLC

04 September 2013

 



4 September 2013

SUTTON HARBOUR HOLDINGS PLC

("Sutton Harbour" or "the Company")

Annual General Meeting Statement

The Company has had a very active summer period managing operations, constructing new facilities and putting in place the groundwork to develop the land inventory.

We have been encouraged by the improving sentiment towards real estate investment over the past few months, with prospects of increased occupier demand and improving   accessibility of bank financing for new projects.  With the Company now more streamlined and pursuing a clear strategy for growth through existing marine operations, the imminent launch of a new marina, new commercial property lettings and redevelopment of underutilised sites, we are much better positioned to benefit from the current improvement in wider economic conditions.

On the former airport site, we have been able to report developments in the planning review process which have significantly moved forward the debate for future alternative uses on the site. Since the year end, the local draft area action plan was discredited as unsound in the inspector's preliminary report for not taking into account the former airport site as available developable land and, subsequently, an appeal for a mixed use application for a site close to the former airport land by another developer was dismissed by the local government secretary.  Airport operations ceased almost two years ago and the 113 acre site is ideally located to provide new uses to boost employment, housing and other facilities for the city.

We launched our Destination Sutton Harbour initiative to help redevelop underutilised sites around the harbour. The area has already benefited from the opening of an open air organic fast food outlet 'Real Food Kitchen'; the 'Rockfish' seafood dining restaurant concept; and, improvements to the harbour perimeter walkway.  We have refined the Boardwalk restaurant development proposal and resubmitted the scheme to the local planning authority today.  This scheme has already achieved strong interest from national operators and can deliver approximately 16,000 sq ft in four principal units with other space allowed for smaller operators.  This scheme is particularly important to promote the visitor experience to a wider area of the harbour as activity is currently highly concentrated on the southern side and to meet the requirements from national operators.

Since the year end we have experienced increased turnover of tenants and whilst this is expected to impact short term revenues due to voids and concessionary fit out periods, this situation has provided the opportunity to target new tenants with a focus on professional services and other ground floor retail and restaurant uses.  We recently engaged specialist leisure and commercial agents to promote existing space and future opportunities at Sutton Harbour.  We have successfully completed one lease assignment, completed two new office lettings and we are currently engaged in a number of other discussions with prospective tenants.

The marina has had a busy summer, benefiting from good weather conditions, and the fisheries trade continues to hold up well, albeit that the second half year is typically the stronger season.  We have also continued to make further improvements to the car parks operation to support the busier summer months.

It has been exciting to see the rapid construction and imminent completion of the new King Point Marina at Millbay.  The facility opens later this month after the launch at the forthcoming Southampton Boat Show with a view to securing berthing for winter customers and the full season from April 2014 onwards. An encouraging number of enquiries have been building over recent months with some berths already committed.

Finally, shareholders will be aware that I will be stepping down as Chairman and from the Board.  At the request of board colleagues and other key stakeholders I am remaining a director until my successor is appointed. We have been through an exhaustive search process and expect to make a further announcement in the near future.  I would like to thank shareholders and all my colleagues at the Company for their support over the six years that I have served as Chairman.  These have been very challenging times for the Company, which have necessitated some difficult decisions to reposition the business away from our previous loss-making transport businesses.  Management remains committed to its focus on a narrower range of activities which have good prospects for growth in profitability.

The Company has made good progress in the first half year and will continue to work hard to establish operations at King Point Marina, achieve new lettings and move forward with planning and pre-application strategies for regeneration projects.

Sutton Harbour Holdings plc Jason Schofield - Chief Executive Natasha Gadsdon - Finance Director	01752 204186
Arden Partners Richard Day Jamie Cameron	0207 614 5917
Newgate Threadneedle Graham Herring Robyn McConnachie	0207 653 9850

 

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