Trading Update

RNS Number : 8598B

Sutton Harbour Holdings PLC

09 April 2013

 



9 April 2013

SUTTON HARBOUR HOLDINGS PLC

("the Group" or "the Company")

Trading Update

Sutton Harbour Holdings plc announces its trading update for the year ended 31 March 2013.

The Company has made considerable progress in focusing on its platform for future growth, with a strong emphasis on its waterfront property, destination activities and marine operations.

During the year the Company completed transactions to dispose of its investment in the Cumbria LIFT Healthcare Project and commissioned the Link Road at the Former Airport Site, giving rise to a final land sale receipt.  This, coupled with the anticipated results from operating activities, means that the Group's overall financial performance, prior to any asset valuation adjustments and before tax, is expected to be in line with market expectations although trading conditions remain challenging.  

Construction of the new 171 berth King Point Marina, in the Millbay area of Plymouth, is underway with an anticipated completion date of September 2013.   An initial, limited number of long lease options are currently being made available, with an encouraging level of interest.  As at the year end the Company is committed to further capital expenditure of £3.2m on this project.  Additionally, the reconfiguration of part of the Sutton Harbour Marina to help satisfy demand from larger vessels wishing to benefit from the excellent facilities and sheltered berthing will be finished within the next couple of weeks.  With the new marina season starting 1 April 2013, bookings are comparable with this time last year.

During the year the Company successfully launched its vision for the 'Destination Sutton Harbour' concept.  This is designed to advance the further development of residential, office, hotel, restaurant and retail uses and help establish Sutton Harbour as a destination of regional and national significance.  On 14 March 2013, as one of 12 opportunities identified around the Harbour, the Company received planning consent at Quay Point for the first of its proposed high profile schemes. This is for restaurant space close to the Mayflower Steps and totals 645 sq ft (60 sq m).  In order to improve access around the Harbour, a second detailed planning application was submitted on 13 March 2013 for a boardwalk structure to accommodate up to 19,500 sq ft (1812 sq m) of additional restaurant/retail space.  After discussions with the local planning authority, and in light of the restructuring at English Heritage, the original application was withdrawn and an amended application is being re-submitted.  The Company has already received offers from national operators new to Plymouth for two of the four major units within this proposed development. 

The Company recently reported that the BBC has decided not to relocate to Sutton Harbour.   Approximately one third of the site had been reserved for them so the Company is now able to move forward on further options for the entire East Quays site at Sutton Harbour.  The Company is working with interested parties to maximise the full potential of this, one of the finest sites currently available for development in the region.

Regarding the 113 acre Former Airport Site (in Plymouth), the Company is progressing positively with the master planning for future uses of this land.  The northern area of Plymouth, where the Former Airport Site is situated, is currently subject to an Examination in Public of the Draft Area Action Plan by the Planning Inspectorate.  The Company has made representations as to the potential of the site to deliver a wide range of identified uses and the Planning Inspector's recommendations are anticipated being published later this year.

Rental and car parking revenues have held up well during the year despite continued reticent demand for commercial space.  As at 31 March 2013 the average length of unexpired leases is 9.9 years (31 March 2012: 9.9 years); estimated rental value of vacant properties is £248,000 (31 March 2012: £178,000); area based occupancy rate is 85.2% (31 March 2012: 89.1%).  The increase in vacancy rate occurred following completion of a lease surrender, with compensation being received, and a new lease has already been completed for one of the two floors surrendered.  Trading at the Fish Market is in line with pre 2012 results, following a positive spike in performance last year.  Fish prices, which impact the fees earned by the Company, have been affected more recently by weaker economic conditions in continental Europe.

As at 31 March 2013, net bank debt was better than expectations and stood at £17.5m (31 March 2012: £15.8m). 

The Company expects to release its preliminary announcement on 19 June 2013.

Enquiries:

Sutton Harbour Holdings plc

Jason Schofield - Chief Executive

Natasha Gadsdon - Finance Director

01752 204186

Arden Partners plc

Richard Day

Jamie Cameron

0207 614 5917   

Newgate Threadneedle

Alex White

Caroline Evans-Jones

Josh Royston

020 7653 9850

 

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