North East property business Adderstone Group is set to launch a North West division of its affordable housing arm after chalking up continuing demand.
Based in Newcastle, the Adderstone Group specialises in regeneration and commercial and residential property development, now employing more than over 300 people. Accounts for Adderstone 1993 Limited – part of the wider Adderstone Group – have now been published showing turnover rose from £14.4m to £24.89m in the year ended March 2024, with the growth being fuelled by the affordable housing division Adderstone Living Ltd.
Operating profit dropped from £2.1m to £1.9m but overall profit for the year increased from £1.1m to £1.66m, and total comprehensive income rose from £1.5m to £1.66m.
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In the accounts, group chief financial officer Michael Shipley highlights “exceptional growth” within its affordable housing division, which accounted for the lion’s share of the firm’s revenue. Turnover within the subsidiary increased by 77% to £17m and is forecast to reach £26m for the financial year 2024/25.
Within the report, Mr Shipley said: “This strong performance has been underpinned by significant new work secured during the current period, with six live sites now in operation across the North East region. There continues to be a strong need for affordable housing throughout the country, with the incoming Government having committed to support increased delivery.
“Rising to this need, Adderstone Living expanded its operational footprint post year end, opening a new office in Leeds to service the Yorkshire region. Additionally, there are planned developments to establish a presence in the North West. The division’s first Yorkshire project - a 70-unit scheme in East Cowton with a gross development value (GDV) of £16m, is now under way, reflecting the success of this expansion strategy.
“To support rapid growth and regional diversification, Adderstone Living is actively pursuing key framework agreements. It has secured a place on the Homes England Delivery Partner Panel (DPP) and is targeting inclusion in other frameworks such as Prosper.
“The planning process continues to present challenges, caused by under-resourced local authorities and increasingly stringent environmental regulations. However, the division’s in-house planning team continues to excel, effectively mitigating delays and ensuring projects progress efficiently.”
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The company released consolidated figures for the wider Adderstone Group, which is made up of more than 50 subsidiaries, in which it said revenues rose from £26m to £35.7m, with post tax profits also increasing from £5.7m to £5.9m, despite a challenging market and higher finance costs. Sales of key assets such as The Rivergreen Centre to Durham County Council reduced the group’s gross asset base to £140m but enabled the repayment of £16m debt.
Notable lettings within its commercial portfolio included a new 10-year lease to the Crown Prosecution Service over two floors at St Ann’s Quay on Newcastle Quayside and the redevelopment of the former Wickes store on Wessington Road into Sunderland’s first Padel Tennis Centre, leased to True Padel. The group also recently launched its own specialist civil engineering business, Adderstone Civils, delivering innovative, cost effective, design and build solutions for groundwork projects.
Mr Shipley commented: “Our latest results reflect the continued growth and diversification of our business. As we expand into new ventures, we remain focussed on driving development, delivering value, and making a positive impact on the communities we serve.”