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Speymill

  • BY: Andrew Hore |
  • POSTED: 22/09/2009 |

The contracting business continues to mask the progress in the rest of Speymill’s businesses but that should not continue for much longer.

Speymill Contracts has one remaining contract although it is bidding for budget hotel work. The business still lost £1.28m in the first half of 2009 as it was hit by more bad debts. The losses of Speymill Contracts should be stemmed in the coming months and it should not have a significant effect on the group figures in the future. The main asset of the division is £11m of tax losses.

Speymill’s group turnover fell from £35.3m to £25m in the six months to June 2009. Contracting revenues were more than halve and there was a higher contribution from the German property services business which was wholly owned in the latest period. Speymill’s profit slumped from £3.19m to £654,000. The property services and property investment management businesses made an underlying profit of around £1.9m.

Speymill Macau has a new board but Speymill continues to work for the Macau property investment company. This generates around £1.3m in annual fees - although in 2008 there was also a large one-off fee. It is possible that this business could be lost but it is a minority of the property investment management revenues. Even so, the loss of these revenues could have a significant effect on profit.

The management fees from property company Speymill Deutsche Immobilien Company make up the majority of the property investment management division’s revenues. The value of SDIC’s portfolio has held up well.

Speymill’s property services business GOAL has opened new offices in Germany and started a debt collection business. SDIC is GOAL’s largest customer.

At 14.5p a share, down 1.5p on the day, Speymill is valued at £9.33m.

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