PROPERTY group Langtree has claimed a “resilient performance” despite the widespread problems across the economy that have hit its sector especially hard.
Although its outlook is “more optimistic” than last year, it expects any recovery to take a while to filter through to its revenues.
The Newton-le-Willows firm made a pre-tax loss of £633,000 in the year to June 30, 2009, improved from a £4.58m loss a year earlier. Turnover for the period dropped 1%, to £17.5m.
Langtree chairman Bill Ainscough said: “I believe that there are challenges for the economy over the next few years. Whilst the economy may be slowly emerging from recession, business confidence remains weak and this will inevitably have a bearing on demand and rents.”
Its commercial property portfolio now has 1,000 tenants across 4m sq ft of commercial property, which delivers an annual rent roll of £19m.
Development has been “significantly curtailed”, but Langtree expects to see progress on two major sites on Merseyside – the St Helens rugby league stadium and Liverpool Garden Festival, in Otterspool.
The company has renewed and increased its debt facilities with Lloyds Banking Group after the year-end.
It had reduced its net debt to £76.3m from £95.3m, with the change mostly attributed to the sale of 40 Spring Gardens, in Manchester.
The group has fixed assets of £147.5m, but writedowns of £34m in the year have seen its gearing increase from 43% to 52%.
Langtree employs 50 people across its four sites in St Helens, Doncaster, Washington and Cannock. It reduced its wage bill by 10% to £1.91m, while its highest-paid director earned £249,000.
Alex Turner
