A PROPERTY developer with a powerful Teesside presence has announced a strong set of results that has seen it get back in the black to profits of £10.1m for the six months to March 31 this year, compared to losses of £8.3m for the same period last year.
Terrace Hill Group plc, which has offices in Teesside, London, Glasgow, Bristol and Manchester, reported revenues of £39.3m for the six month period, more than doubling the £16.3m it noted in its first half-yearly report in 2012.
The firm has also slashed its debts after selling off most of its residential assets in the first half of the year, to begin a new focus on supermarket development and the leisure sectors.
The AIM group saw its key performance indictor of triple net asset value increase per share by 4.6% to 28.1p by the end of the six months to March 31, having sold 919 units of its residential assets for £70.8m, largely completing the sale of its residential portfolio.
The sales meant that Terrace Hill made significant progress on a strategy of reducing the its level of debt and gearing, slashing net debt by £36.8m to £10.4m bringing gearing down to 16.8% from 78.2% at September 30, 2012.
The group built three new food stores in Sunderland, Sedgefield and Skelton that it pre-let to Sainsbury and Asda for a total capital value of £64.6m and said another four “substantial” supermarkets were in the planning process, whole other opportunities will follow.
On Teesside it plans to submit a planning application later this month for a 125,000sq ft Sainsbury’s store along with a public house for Marston’s, a KFC and a coffee bar.
Terrace Hill also fleshed out plans for the construction of a £30m leisure complex in Darlington town centre later this year, with its report saying it is well on track with plans to build a nine-screen Vue cinema, an 80-bedroom Premier Inn hotel and six restaurant units.
Robert Adair, chairman of Terrace Hill, said: “The first half of the year has been transformational for Terrace Hill both in terms of significantly improving the group’s financial position and in the delivery of a very solid operational performance.
“We intend to submit a planning application shortly with a view to completing the scheme by the end of 2014.
“We are also working on a number of similar leisure development opportunities in other parts of the country.
“We have entered into a conditional contract with Darlington Borough Council.”
Adair added that despite Tesco’s announcement of the slowdown of their expansion of large stores, there remained good demand from all the main grocery retailers for the right-sized store in the right location.