Adderstone Group have declared consolidated annual profits of £4.52m in the financial year to 31 March 2018, on the back of consolidated turnover of £38.1m.
Profits showed a slight increase on the £4.45m posted in the previous year, whilst there was a 12 per cent reduction in turnover from £43m to £38.1m.
The accounting period, which also marked 25 years since Adderstone Group’s Founder / CEO, Ian Baggett, carried out his first property development, saw the Group continue to reinvest profits generated and acquire a number of significant assets for investment and re-development purposes.
Investment transactions alone totalled £15m in the period and included prime commercial acquisitions such as The Rivergreen Centre in Durham, home of Atom Bank, and Leeds Building Society’s office on Cobalt Business Park in North Tyneside. The business has gone on to complete a further £21m of property acquisitions post year-end, including the prestigious Gainsborough House on Newcastle’s Grey Street.
The Rivergreen Centre, Durham.
Adderstone Group’s development division was also highly active in the year, entering into a £16m forward funding agreement with a national investment partner to deliver a 272-bed student accommodation scheme close to Northumbria University. The property was delivered post year-end, in July 2018, with the team also securing planning permission for a further 535 beds on an adjacent site for the same investment partner. The scheme has a gross development value in excess of £35m.
IQ Collingwood, Newcastle Upon Tyne
In a similar vein, the business also completed an £18m, 331-bed student scheme in Upper Ouseburn, on behalf of a US investment firm, in September 2018.
Group Chief Financial Officer, Michael Shipley (pictured), said: “This really is an exciting time for the entire team at Adderstone Group, following years of successful trading and reinvestment, our efforts have culminated in the Group having sufficient liquidity to scale up investment in our commercial property portfolio and advance through our UK wide development pipeline.
“The team has worked very hard this year, not only to deliver another impressive set of results, but also to prepare the business in readiness for its next growth curve – and with a number of key transactions completing post year-end, the launch of our new London office in Marylebone and many more deals in the pipeline, I look forward to reporting a further upturn in activity and material increase in profits next year.”
Over the next 12 months Adderstone Group will continue to grow its commercial property portfolio and Adderstone London will continue to work through lettings at Plantain Place, Southwark, the company’s first commercial acquisition in the capital, as well as looking for new residential and commercial opportunities.
Proposed Tyne Bridge House CGI, Gateshead, to be built by Adderstone Group in 2019
Adderstone Group’s development division will complete Baker’s Yard, in excess of 100,000 sq. ft. of business storage and industrial space in heart of Gosforth on the site of the original Greggs Bakery and also begin works on Tyne Bridge House, a 4,628 sq. ft. office scheme located on Bottle Bank, bordering the Tyne Bridge and with views directly over the Tyne, set to be one of the North East’s most prominent office locations. Commercial partners that are interested in the site, which will be available in Summer 2019, are urged to contact Adderstone Group immediately on 0191 269 1714.