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Speymill

  • BY: Andrew Hore |
  • POSTED: 08/04/2009 |

Speymill has reduced the size of its contracting division and it should not be as big a problem in 2009.

Speymill Contracts suffered from delayed contracts and customers going into administration. Revenues grew from £41.4m to £43.2m but bad debts and write-offs led to a swing from £816,000 profit to a £11m loss.

Speymill Contracts is working on three projects at the moment and its 2009 revenues will be much lower. However, it should not be a drain on resources. The proposed retirement villages development business is on the back burner.

The core investment management business continues to prosper. The net asset values of Speymill Macau and Speymill Deutsche have held up relatively well and they both pay their management fees at regular intervals which helps overall cash flow.

Fees increased from £6.4m to £9.9m - including £1.6m of performance-based fees.

Speymill bought out its joint venture partner in German property management business GOAL. It manages more than 34,000 units in Germany.

Net debt was £2.1m at the end of 2008. Since then, chief executive Bob Macdonald and chairman Jim Mellon have provided the company with a £3.3m loan facility. So far little more than one-third of it has been used. This loan facility may be converted into convertible preference shares.

Shares in Speymill returned from suspension on 7 April 2009 and ended the day at 10.5p each, which values the company at £6.12m.

Smith & Williamson has been appointed as nominated adviser.

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