The AIM-listed company which owns a huge slice of Plymouth’s waterfront is vowing to start work on two water’s edge skyscrapers in 2020 after making a sixth-month profit.
Sutton Harbour Group Plc (SHG) made a pre-tax profit of £281,000 in the six months to September 30, 2019, but this was more than double the £110,000 surplus for the same half year in 2018.
Perhaps more significantly, SHG secured a new four-year loan facility agreement with existing bankers, NatWest.This will be on equivalent terms to the previous agreement, but the firm stressed funding for its development projects will come from separate financing.
But this will allow it to push ahead with plans to construct the Harbour Arch Quay and Sugar Quay blocks at Sutton Harbour, on Plymouth’s picturesque waterfront.
Philip Beinhaker, SHG’s executive chairman, said: “With longer term banking facilities in place the company is advancing confidently with its objective to self-deliver real estate projects and to continue targeted investment into the asset base to achieve medium term returns and value growth to shareholders."
SHG said it had been finalising pre-construction preparations for the two planning-consented apartment block schemes and described them as the priority in recent months.
The company has submitted some amendments to the local planning authority, Plymouth City Council, and selected a construction and sub-contractor teams and finalised detailed drawings.
It is expected that, subject to completion of finance and planning amendments, both the smaller 14 apartment scheme at the nine-floor Harbour Arch Quay and larger 170 apartment building at Sugar Quay, up to 20 storeys in height, will start on site during 2020, along with the marketing of the units.
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However, a two-storey extension to nearby Harbour Car Park, for which planning consent has also been secured, has been put back to follow the Mayflower 400 celebrations which take place throughout 2020 in Plymouth.
The company said it wanted to avoid parking disruption during the events season at the largest car park around Sutton Harbour.
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SHG’s interim results also revealed its net assets had risen to £46.013million in value, as against £45.732 in March 2019. The company said there had been no re-valuation of assets during the reporting period, with the next external independent valuation due to be undertaken early in 2020.
Net debt had risen to £22.861million at the end of September, from £21.373million six months earlier. SHG said this budgeted movement reflected the lower point in the annual cash cycle, as rents and annual berthing fee receipts peak between January and April, and expenditure on pre-construction costs in connection with the schemes at Harbour Arch Quay and Sugar Quay.
It also reflected infrastructure improvements, notably the new fuel and utility dispensary system at Plymouth Fisheries, which SHG also owns, and works to other premises to facilitate new tenancies and to maintain the quality of the estate. This has resulted in a rise in gearing to 49.7% as at September 30 from 46.7% as at March 31.
The report to the Stock Exchange also said the company's business activities traded successfully during the first half year, with the marinas and car parks both achieving strong revenue growth ahead of price inflation.
Marketing of the marinas for the 2020 season was launched at Southampton Boat Show from a newly-designed interactive stand which attracted an encouraging level of interest.
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Fisheries' trading remained on par with the same period last year and rental incomes from recent lettings added to income of this business sector. Further new lettings are expected to complete in the second half year.
SHG is in the process of commissioning a new fuel and utility dispensary system at Plymouth Fisheries. The part grant funded £800,000 project, updates the current 25 year old system with modern fuel and energy delivery technology and is due for completion before the end of 2019.
It is the latest phase of a five-year plan to overhaul key fisheries infrastructure which has also included £2million investment in ice making equipment, chilled stores, energy efficient lighting and boilers, hygienic wall cladding, enhanced CCTV and lock barrel walkways.
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During the winter months part of the marina at Sutton Harbour will be re-configured to meet requirements of prospective berth-holders for larger berths and new pontoon equipment will be installed to meet the increasing demand for berthing space at King Point Marina, in the Millbay area of Plymouth’s waterfront.
To improve facilities for public participation and entertainment in the harbour, the company will be investing in new floating 'event-size' pontoons which can be located in various shallow water areas of Sutton Harbour together with an access pontoon.
IIn October 2019 the company announced Corey Beinhaker's appointment as chief operating officer. This brings the board to a total of five directors including executive chairman, Philip Beinhaker, Corey’s father.