Urban Splash remains ambitious

Feb 20 2008 by Barry Turnbull, Liverpool Daily Post

DEVELOPER Urban Splash is pressing ahead with an ambitious expansion programme, despite admit-ting that the uncertain housing market could affect its long term growth.

Last week, it announced a grand eight-year plan to deliver a £100m scheme in the heart of Liverpool and also has planning permis-sion for 3,700 homes in locations around the country and a potential bank of 400,000 sq ft of commercial property space.

In its annual report, filed at Companies House, the Group unveiled increased turnover and assets.

Chairman Tom Bloxham stated: “We are conscious we are entering uncertain times, particularly in terms of the availability of credit. Much has been made of the housing market overheat-ing and that city centres have become saturated with residential apartments.

“In addition, uncertainty over the housing market, both from investors and owner-occupiers which has developed since autumn 2007 is likely to remain, at least in the short-term.

“A saturated marketplace and over-supply of property with sustained uncertainty over property values could have a significant impact on the longer term growth.”

However, Bloxham is con-fident the lack of supply of rented accommodation and starter homes means Urban Splash should continue to hit its target markets.

In the last year, turnover was up 8% to £62m, while net assets increased by 32% to £70.7m. The return of profits plus property reval-uations, rose by 53% to £18.8m. Residential sales were up 13% to £50.5m and commercial income was up 19% to £6.4m.

The company has a total of 855,000 sq ft of commer-cial space, mainly in Birm-ingham, Manchester and Liverpool, with 88% let.

Urban Splash employs 182 staff and the highest paid director received £430,000 salary and pension costs.

Mr Bloxham added: “The year has been one of solid growth with turnover increasing to a record £62m, more importantly a return of £18.8m. This reflects not only quality of the commer-cial and residential build-ings, but also the quality and ambition of our staff.”

Urban Splash’s most progressive scheme is the plan to create 740 homes together with shops and a hotel at Great George Street in Liverpool.

BARRY TURNBULL