DEVELOPER Langtree says its diverse range of assets and development plans should help shield it from the worst ravages of the property market.
Last year, net assets grew comfortably and operating profits were more than £3m, although the balance sheet showed a year-end loss due to a £5m write-down associated with Liverpool’s former Garden Festival site.
The Newton-le-Willows business is pressing ahead with plans to develop 1,300 apartments on that riverside site, even though partner McLean collapsed last year. Another flagship project is the planned new stadium for St Helens rugby league club.
Chairman Bill Ainscough said: “Lack of liquidity, coupled with general market uncertainty, will continue to depress property values and curtail traditional development activity.
“There is no denying that the combined effect of these circumstances has put significant pressure on Langtree’s performance, and will continue to do so. “Fundamentally, we are well equipped to tackle the challenges ahead, given the way the business is structured.”
The group is well geared at 41% and the investment portfolio now extends to more than 3.6m sq ft and houses some 505 tenants in 900 units capable of producing an annual income of £13m.
In the year to June, 2008, turnover increased from £9.7m to £17m, with net assets 11% ahead at £120m. There was an overall loss before tax of £5.4m. Directors’ emoluments amounted to £545,000, while 49 employees cost £2.1m in wages and other payments.
A dividend of £487,000 was paid during the year.
BARRY TURNBULL
