Marina and ports operator and property developer Sutton Harbour Holdings has signed a lease in the Millbay area of Plymouth that will enable it to construct a 171 berth marina.
The King Point Marina will be 1.5 miles west of the Sutton harbour marina which has 489 berths. The new marina will be completed in time for the 2013-14 season.
A placing and open offer raised £5.7m during the year and this accounts for the reduction in net debt to £15.8m by the end of March 2012. Much of the cash raised has been set aside to develop the new marina at Millbay.
Sutton Harbour has completed the closure of Plymouth airport and this has ended the losses from this operation. The strategy is to refocus on developing the land around Sutton Harbour and developing further marinas in the region.
Revenues from continuing operations rose from £9.64m to £9.9m in the year to March 2012. Underlying pre-tax profit fell from £2.61m to £1.68m. That excludes property revaluation write-downs and the loss of the airport. The remaining loss from the airport was £1.63m.
Property vacancies fell from 14.3% to 10.9% of the estate. Contracted rent is £1.39m a year on an investment portfolio valued at £20.8m.
Net assets are 43.1p a share – the recent fundraising diluted the previous year’s figure of 57.3p a share. Even so, the shares are trading at less than 50% of the NAV. There are 113 acres of former airport land that can be developed and this is valued in the books at £10.1m.
The disposals of the original surplus land at the airport site have been completed so there will be no contribution this year. The marine activities and rental income from investment property cover the group overheads. Arden forecasts a 2012-13 profit of £700,000.
At 21.5p a share, Sutton Harbour is valued at £20.7m.
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