Property and construction firm Adderstone Group has almost doubled profits to £950,000 during a year in which it brought all its businesses together in new headquarters to cement its future growth.
Adderstone last year rode successfully out of the recession with its first profits for three years as one of the few large developers to show growth in recent times – a position it has built upon in the year to March 2013, after announcing a 75% increase in profits from the £540,000 posted in 2012.
An impressive sales lift of £3.8m, to £20m, has also been recorded by the firm, which employs 150 people across its businesses, a buoyant return to form having seen revenues for the year to July 2010, fall by 20%.
Founder and chief executive Ian Baggett, a former North East Entrepreneur of the Year, established Adderstone Group in 1998 and has since founded in excess of 30 trading companies, which includes commercial and residential property development, property investment, construction and manufacturing, none of which have failed.
Baggett anchored the company on property management after raising £10m to help buy leaseholds across the country worth around £30m, a portfolio which included the 19-storey £1.2m City Lofts at Salford Quays and the Echo buildings in Sunderland.
The firm further strengthened the business during the lean times by diversifying into the property market and manufacturing.
Now, having moved into larger premises in Jesmond, Newcastle, to bring all its businesses together, group managing director Paul Tognarelli said the company is continuing its strategy of maintaining a blend of investment and trading activities that underpin and provide a secure and regular income.
He said the company continues to be selective on its development opportunities, which include commencing a ï¿½15m student development in Shieldfield, Newcastle.
Tognarelli said: ‘Adderstone continues to add real value to its customers and its portfolio of property.
“We have a series of exciting opportunities that will not only provide additional revenue streams, but will also assist in the regeneration of the region.
“We have won private investment to provide for future expansion and we are optimistic for the future.”
Group chief executive Ian Baggett added: “The property development division is set for further expansion as we secure and develop niche development opportunities and we expect to see profits of £2m in the next financial year.’’
“The property management division, and in particular Avoca Estates Ltd, our facilities management company, made a significant contribution to the group profits of £300,000.”