Adderstone Group celebrates £4.52m profit and major turnover
Newcastle’s Adderstone Group has declared consolidated annual profits of £4.52m in the financial year to March 31 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 marked 25 years since Adderstone Group’s founder and CEO, Ian Baggett carried out his first property development - saw the group continue to reinvest profits generated and acquire assets for investment 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 Gainsborough House on Newcastle’s Grey Street.
Adderstone Group’s development division entered 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.
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, said: “This is an exciting time for the 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.”
In the next year, Adderstone Group is aiming to grow its commercial property portfolio.