Chairman’s statement
My Statement on 2010 is set out below:
It is both difficult and daunting to formulate a property strategy for profitable development over the next few years, when the nation’s recovery is so clearly fragile and mixed. Although weak growth is not untypical of a banking-led recession, it continues to concern most businesses at a time when cutting the deficit is the Government’s stated policy and principal aim.
Consumers are spending less whilst paying down their debts; not helped by rising inflation and the spectre of increased interest rates. The construction industry is suffering from shelved capital projects and many private developments being put on hold. More widely people are still worried about the effect of the European sovereign debt crisis and the slowness of the US recovery. But by all accounts unemployment is falling, manufacturing output is increasing and the business services sector is performing well.
As for ourselves, 2010 has been a year of modest recovery but with a consolidated pre-tax loss, nevertheless, of £185,388 (2009: loss £935,124). However, with a tax add-back the loss on ordinary activities after taxation and minority interests was close to break even. Regrettably, Equity Shareholders funds reduced to £3.777m (2009: £4.198m).
We continue to operate within our banking facilities and other financial constraints.
There has been much activity at Broad Street Plaza, Halifax since construction commenced in July last year. Further lettings have been achieved to The Chinese Buffet, JD Wetherspoon, Pizza Express and Mitchells & Butler for a Harvester concept. It is hoped that practical completion of the project, other than the proposed office block, will fall in April 2012.
2010 saw the completion of our joint venture with Keyland Developments at Foss Islands, York. A letting to Dreams of the final unit of 10,000 sq ft enabled the long-standing Development Agreement with Axa to be concluded. At Centurion Office Park, York (another joint venture with Keyland) we sold an NHS Trust investment to a Jersey-based trust. Little remains at the Office Park.
Our joint venture at Teesway Park has now been fully let. The three unit scheme produces a rent-roll of £85,000 per annum and provides an opportunity to purchase Dixon's 50% interest, subject to term finance being arranged.
In January this year we commenced work on an hotel for Premier Inn, along with an office annexe extension for Foundation, at Broadacre House, in central Bradford. The project has been forward sold to Wigan Securities.
As to the Listed Corn Mill in North Leeds a comprehensive, full planning application was submitted in June to convert the ruin into office use with car parking.
We have entered into an Agreement for Lease with Premier Inn for a 130 bedroomed hotel on a well situated site on Whitehall Road, Leeds close to the city rail station. The project will incorporate at least 50,000 sq ft of offices all approved by the estate vendor under a 999-year ground lease.
It will be a joint venture with Marshalls of Elland. A number of other development opportunities are being closely examined in Leeds, Harrogate and East Lancashire. This development pipeline will come into play as and when we obtain planning permission, pre-lets and appropriate funding from a still reluctant banking industry.
G Barry GregoryChairman
22nd September 2011