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St Helens-property developer Langtree records rise in profits
7:00am Friday 25th January 2013 in News
ST HELENS-based property development group Langtree has seen a surge in profits to £12.9 million, despite recording a £14.4 million drop in its turnover, which fell to £40.3 million.
Key developments were finished, and the value of the group’s investments was also affected by prevailing market conditions.
The company’s chairman has warned that their market looks set to to remain challenging.
During the year the group completed the new Langtree Park stadium for Saints and the adjacent Tesco superstore in St Helens, as well the restoration of the Festival Gardens in Liverpool.
Langtree, based at Newton-le-Willows, finished the year with a post-tax profit of £9.5 million, up from £6.6 million in 2011, in the year to June 2012, but boosted pre-tax profit from £8.8 million to £12.9 million.
It finished the year with post-tax profit of £9.5 million, up from £6.6 million in 2011.
Chairman Bill Ainscough said in the annual report: “A sound financial base has allowed us to actively look for new investment opportunities, and in the year we have invested approaching £10 million in acquiring further property assets to add to the group property and development portfolio.
“As market conditions remain favourable for acquisitions, we will continue to be active in the market, and expect to see further significant additions to the development and the property portfolio during the coming year.”
“The property market remains very subdued, with still further downward pressure being applied to rents and values. During the year, we have absorbed a further erosion of the gross asset value of our existing property portfolio and in our share of the assets contained within our strategic joint ventures.
“While we have hopefully seen the worst of the fall in property values, I expect the market to remain challenging, with no significant value movement in the short term.”
Group chief executive John Downes agreed that the results are encouraging.
He said: “It is a fair performance in a challenging economic climate, but conditions will remain tough.
“Overall, we are in good shape, but we will remain focused and work our hardest to get the best results from our existing assets and continue to invest wisely to grow the business.
“We are always looking for the next opportunity to drive the business forward still further.”
Langtree is leading plans to expand Sci-Tech Daresbury, the science and business campus where small technology and medical enterprises work alongside Government scientists.
Since the campus was designated an Enterprise Zone in 2011, businesses based there benefit from tax credits.
John Downes added: “This is a project with great potential in every sense. We can foresee Sci-Tech Daresbury growing further, to a point where businesses based there could create as many as 15,000 jobs.”