Iconic Developers Urban Splash, a Manchester company run by founder and charismatic entrepreneur Tom Bloxham, reported profits of £7.6m on revenues of £44.4m and is said to have repaid £128.8m of debt during the past 12 months.
The company, which celebrates 21 years of developing and regenerating properties throughout the UK, has concluded a major restructuring exercise this year and has agreed refinancing of £195.9m of debt, plus selling £93.6m worth of property.
The company has entered into joint venture partnerships with Places for People and The Pears Group over the last two years, with several residential and commercial development schemes in Manchester, Plymouth, Sheffield, Bristol and North Shields.
Urban Splash owns and manages its own portfolio of commercial property, with an investment income of more than £11.6m and a residential portfolio of over 840 rented homes, with what they claim have an occupancy rate of 97%.
Many of their developments involved blocks with residential above and commercial shops or offices below. The residential and upper parts are sold off while often the company retails the commercial parts, typically street level shops and offices.
Chairman Tom Bloxham had said:
“The challenges and demands of the last five years are now behind us and we are pleased to be firmly focused on growing our business once again.
“This, our first full year of trading as a restructured and refinanced group, has been one of the busiest, most complex but most successful periods in the group’s 21 year history.
“Last year’s successful restructure has proved a key turning point in the group’s fortunes and has provided the platform to significantly reduce our debt exposure whilst growing our business and providing us the ability to pursue the many new opportunities which a recovering market has presented.”
As reported by thebusinessdesk.com Mr Bloxham talked up projects the company has started around the UK, including at Park Hill, Sheffield, a first phase of Smiths Dock in North Shields and the start of the second phase of the Lakeshore development at Bristol.
“On our own account, we have started on site with new development projects at Stubbs Mill in New Islington (in Manchester), continued the development of further phases of Royal William Yard in Plymouth and started the redevelopment of New Hall in Liverpool. We are also progressing our residential scheme at Springfield Lane in Salford which we hope to commence on site in the near future.”
“The reported loss of £43.4 million appears to conflict with the positive statements above, however this figure incorporates two large charges to the profit and loss account (£30.4 million goodwill impairment and £14.9 million amortisation of swap losses) these relate to the way the group was historically funded and how that debt was restructured and refinanced.
“The charges, which did not have any cash outflows, do not affect the current operations of the group and specifically the newly formed companies which comprise the bulk of the group’s trading activity. After adjusting for these items, the group made a profit.”