Urban Splash: profit dives to £2.9m, a third of previous year

Regeneration company Urban Splash has seen pre-tax profit dive to £2.9m in 2007 from a figure of £8.9m in the previous year.

Despite that minor hiccup, however, chairman Tom Bloxham said: “This has been another solid year of growth.”

Urban’s turnover rose to a record £62m in the 12 months to 31 March 2007 (comparable figure in the previous year: £57m).

During the year, Urban completed 310 apartments, collected £6m in rental income, exchanged contracts on a further 900 apartments with a sales value of £120m and enjoyed a rise in net assets to more than £70m.

At the year-end, Urban’s future development programme had a gross final value of £1bn while exchanged contracts ran to a value of £140m which represents two years of future sales.

Post year-end news is that sales and letting have continued to be strong, particularly at Fort Dunlop which is now 96% let, two years ahead of schedule.

Residential sales during the latest financial year ran to £51m (figure in the previous year: £45m), with the 310 tally of units built being a record. The average price was £164,000 (previous year: £163,000).

“In a competitive marketplace, demand for homes and interest in future projects remains strong,” says the group’s statement. “Sales strategy continues to be focussed to sell most homes in the early stages of a development.”

The group now manages the construction of all its schemes rather than sub-contracting work to a main contractor. The construction arm is called Urban Splash Build.

Employee numbers ran to 182, up from 136 in the previous year, and the cost of wages and salaries jumped to £6.9m.

The highest-paid director received £216,000.

The company added £215,000 to that director’s pension.

There was a second £215,000 spend on pensions but that one had to be shared out amongst the employees - all 182 of them.