Sutton Harbour Group shares were up 5.1% to 20.5p in late afternoon trading on Wednesday after the company swung to a pre-tax profit of £366,000 in FY 2022 from a loss of £162,000 last year.
Sutton Harbour Group announced a climb in net asset value to £56.2 million from £47.1 million, representing a 43.3p NAV against 40.6p year-on-year, respectively.
The company’s property portfolio was valued at £54.3 million compared to £47.3 million, alongside a year-end net debt of £24.4 million against £26.9 million the year before.
The firm reported record trading for marinas, with near capacity occupancy at end of year 31 March 2022 and maintained at 98% occupancy as of July.
Sutton Harbour Group highlighted an investment property occupancy rate of 89% at the end of FY 2022, with one building currently under refurbishment for three new tenants.
The company noted a revenue of £7.1 million against £5.4 million, with a strong recovery of parking revenues since summer 2021 and an improving trend in 2022.
The group also mentioned Harbour Arch Quay, its first new development project at Sutton Harbour in a decade, which is scheduled for completion in spring 2023.
Sutton Harbour Group added it had secured updated planning consent and s106 agreement for the 170 apartment building at Sugar quay.
FY 2023 guidance
The firm warned the impact of inflationary costs were starting to bite, with certain employees necessitating a 10% pay increase in order to remain at the company.
Sutton Harbour Group confirmed its electricity expenses were set to rise, with costs expected to spike after the group’s current power contracts expire in September.
The company said it would pass on some costs to tenants and berth-holders, however it would need to raise the price of certain services in the coming year.
“The resilience of the Group’s property asset portfolio is shown in the valuation uplift. The strong asset base and annuity incomes provide a secure platform from which the Company has been able to restart property construction and develop a new pipeline of consented projects to follow,” said Sutton Harbour Group executive chairman Philip Beinhaker.
“In time, the profits and investment revenues achieved by new developments will enable the Company the flexibility to reduce its borrowings. The Group celebrates the 175th anniversary of its core subsidiary this year and the stated strategic objectives provide a long term plan for the Group’s future success.”