Urban Splash tops 100m GBP for first time and returns to profit

The Manchester-based developer noted a substantial increase in its turnover from £33.6m to £132.6m, its highest ever-recorded turnover. The company also recorded a small profit of £0.05 million – improved from the loss of £15.4 million in the previous year – and the news that its annualised investment income has increased by £0.8m to £14.7m.

The balance sheet position worsened largely as a result of a £16.3 million downward revaluation of the group’s commercial properties reflecting that regional commercial property values remained depressed in the period, however we have seen recent signs of improvements in values.

Urban Splash has also established two new joint ventures with Places for People and The Pears Group and restructured all of its banking facilities.

Speaking of the accounts, Urban Splash Chairman Tom Bloxham MBE said: “The last 18 months has been one of the most important in our recent history; one which has hopefully put Urban Splash on a sound platform for future growth as well as finding a solution to the problems associated with the large debt burden which has beset us since the onset of the financial crisis in late 2008.”

The period covered by the accounts has been a successful one for Urban Splash; as well as selling a £77m residential portfolio to Places for People, Urban Splash also formed a joint venture working partnership with the organisation to develop property across the UK. Their first project together, the construction of 182 apartments in the second phase of Park Hill, Sheffield is currently on site and the joint venture is currently working on other projects.

Then, in April this year, Urban Splash restructured its banking arrangements and working in partnership with The Pears Group agreed financing on all of its remaining debt and the Urban Splash Braun portfolio, which consists of 35 properties including; Fort Dunlop in Birmingham, the Matchworks in Liverpool and Smithfield Buildings in Manchester. This also resulted in the formation of another joint venture with Pears which will be developed in the coming years.

Tom added: “This financial year saw us successfully conclude a fundamental restructure and refinance of our business which has addressed the legacy debt position of the Group and created a new corporate structure enabling us to grow, start new development projects and form new joint venture relationships which we believe will be key to the future success of the business.”

Other achievements in the year included the completion of developments including Lakeshore in Bristol, the first phase of Park Hill in Sheffield – one of the country’s most ambitious regeneration projects – and the New Cooperage at the Royal William Yard in Plymouth. All of these schemes are either fully let or sold and each scheme has already won several awards.

Concluded Tom: “Despite the difficulties faced by our industry over the last five years, Urban Splash has maintained its reputation as one of the country’s leading regeneration companies. With our restructure and refinance behind us I believe that together with our new partners and our established brand, we are in a position to respond to the many opportunities now presented by the property market in the UK – we have lots of new ideas and we hope to be announcing some of them soon.

“I hope having survived the worst economic downturn I can remember, restructured our business, formed new joint ventures with some very significant and substantial partners we will be well placed to continue delivering award winning regeneration schemes and much needed new homes and work spaces up and down the country.

“As ever, my thanks go to all our public and private sector partners and above all my colleagues. I am hopeful that the past is behind us and I am very much looking forward to driving this great business onward and bring new exciting, innovative and amazing regeneration projects to the market.

“With an improving economy and a resurgent property market, even outside of the South East, I have never been more excited by the opportunities that lie ahead for Urban Splash.”