Property company Adderstone Group has seen turnover jump on the back of strong demand for its affordable housing developments and the £11m sale of a key North East building.
Accounts for Newcastle based Adderstone 1993 Limited – part of the wider Adderstone Group – have been published showing turnover rose from £8.3m to £14.4m in the year ended March 2023, while operating profit rose from £1.5m to £2.02m.
It said growth was primarily driven by its affordable housing division, Adderstone Living, and asset management division, Adderstone Asset Management, with separate accounts for Adderstone Living showing turnover almost doubled from £5.1m to £9.65m.
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In a report accompanying the accounts CEO Ian Baggett said: ”Adderstone Living Limited, has continued to grow and take advantage of the increased need for affordable housing in the region. From its standing start in 2020, the company has completed two developments and commenced three new developments, delivering a total of 228 affordable homes.
“Investment in staff and technology in the year has driven further growth and a strong pipeline of opportunities. Post year end, a further three developments have commenced with a combined GDV (gross development value) of £21m. In addition, there are a further 200 homes in pre-commencement phase with a GDV of £45m.”
The company also released consolidated figures for the wider Adderstone Group, which is made up of more than 50 subsidiaries, in which it said revenues rose from £22.3m to £26m, with inflation and strong demand driving significant rental growth. Post-tax profits dropped from £8.3m to £5.7m, which it said reflected strong resilience, despite uncertainty around capital values and the impact of increased finance costs.
Directors said the £11m sale of the Rivergreen Centre in Aykley Heads to Durham County Council was a highlight for the group in 2023, paving the way for the demolition of the former County Hall building and allowing work to start on the Durham Innovation District at Aykley Heads. The group also launched apartment scheme Hanover Point in Clavering Place, close to Newcastle’s regenerated Stephenson Quarter, delivering 10 luxury apartments overlooking the Tyne, across eight levels.
Michael Shipley, group chief financial officer, said its financial performance has also been boosted by the ‘remarkable’ growth of its affordable housing division Adderstone Living, which is on target to double turnover again to £20m in the current financial year.
He said figures based on research and statistics endorsed by development consultancy Pegasus Group show that more than 1% of people in Newcastle’s urban areas are living in homes developed by Adderstone Group, and that the figure is set to rise as it now has 347 homes under development in the 2023 financial year end.
He added: “Having focused mainly on paying down debt and building our affordable housing division, we feel well positioned to navigate any further uncertainties that emerge in 2024/5 as well as capitalise on opportunities as the economy improves.”
