Tyneside property firm Adderstone Group has declared its credit crunch over following a successful year in which profits more than doubled to £2.1m.
Having emerged from the recession in a healthy position, the Newcastle-headquartered business has now further increased sales by 10% to £22m in the year ended March 2014, and reduced group debt from pre-economic crisis levels of £40m to £7m.
The accounts are published in the week that the company said it plans to focus all future attentions on a property development market which is steadily growing through returning confidence.
The firm has disposed of its UK Ground Rent Estates (3) subsidiary, totalling £9m worth of ground rent assets, to a City-based institutional investor, a deal which includes property at Salford Quays, Manchester.
The move follows on from the disposal of £17m worth of ground rent assets last year – UK Ground Rent Estates Ltd and UK Ground Rent Estates (2) Ltd – to an undisclosed buyer in what was thought to be one of the region’s largest property transactions.
The group, which employs 300 people across the group, has also announced that group managing director, Paul Tognarelli, is to move to the position of non-executive director.
Mr Tognarell said: “This latest deal is the culmination of a strategy which has seen the board reduce borrowings and generate the liquidity required to re-focus on our core activity of property development.
“These are exciting times for the entire team at Adderstone Group as we now have the cash reserves to advance through our extensive UK wide development pipeline with a gross development value of in excess of £100m.”
Adderstone Group’s recent developments have focused around the Ouseburn Valley in Newcastle.
Work is set to start soon on a 250-bed student development called Stepney Yard – the firm’s second student scheme which comes a few months after the opening of £17m Union Square.
Further group projects include a £2m luxury housing scheme in Beadnell on the Northumberland coast and a residential apartment scheme in Bermondsey, London.
Adderstone Group founder and chairman, Ian Baggett, set up Adderstone Group in 1999, driving forward a business that is now involved in property, development, construction and management.