Company Update

RNS Number : 7870H

Sutton Harbour Group PLC

27 March 2020

 

27 March 2020

Sutton Harbour Group plc

("Sutton Harbour" or the "Company")

Company Update

Year Ended 31 March 2020

The Company reports that trading for the financial year ended 31 March 2020 has been good with strong car parks revenues growth and steady performance by the investment rental portfolio. Overall marine segment revenues have held up well although good growth in marina revenues has been offset by a slow fishery season.

The Company's investment and owner occupied property assets were valued by independent valuers as at 31 January 2020 at £45.985m (31 January 2019: £45.700m) demonstrating the underlying value of the asset portfolio which underpins the Company's operations.

Coronavirus Update re Year End March 2020

The impact on our businesses of the Coronavirus epidemic on the current year's results to 31 March 2020 will not have a material effect on Company revenues as rents and marina berthing fees were almost entirely collected in advance of the outbreak with the impact on the Fisheries and Car Parking businesses in confined to the last trading weeks in March 2020.

Prospects for the Year Ahead

The Government restrictions on business operations and movement of people will have an effect on the Company businesses:

· The programme of summer events held around Sutton Harbour, notably the special Mayflower 400^th Anniversary commemoration, is cancelled. The loss of these events, which  underpin visitor and tourist activity, will diminish car parking revenues and undermine the collectability of tenants' rents, many who are in the tourism and hospitality sectors and depend upon a good summer season.

· Whilst pre-paid bookings for berthing at the marinas has been ahead of 2020 to date, summer season and visitor berthing incomes will be impacted unless current restrictions are eased by the summer season.

· The Fisheries business has seen a sharp decline in business as fish prices have crashed. However, the obligations of the Statutory Harbour Authority and designation of the port operations under Transport provisions, prevent the fishmarket and lock from being closed.

· The development projects, for which planning consents have been secured are on hold until there is greater clarity on the future outlook and construction supply chains are restored. The anticipated capital expenditures will be available to support operations, as may prove necessary.

The Company is actively engaged with local and regional government and recognised trade bodies with the objective of securing support for the losses occasioned by the government restrictions, both in our direct business activities and those of our tenants, particularly those in the leisure and hospitality sector. An additional immediate concern is for support for the Fisheries and Lock operations, which we must sustain despite minimal income, for which we will work collaboratively with other ports to secure Government aid, and to lobby for increased support to landlords to allow greater support to tenants who cannot trade during this crisis.

In addition, the Company is working closely with its banker. The bank facilities were committed in November 2019 for a further four years. The potential cash impact of this crisis has been shared with the Company's bankers, with whom collaborative discussions have started to put in place safeguards by way of additional funds, if such are proved necessary, to assure the Company's continued successful operations through this period of restriction upon business activity. The Company has the asset backing of a unique estate of harbourside facilities, commercial buildings and development land with planning consents for approved residential projects, with good prospects for trading growth and development of consented buildings at Sutton Harbour to bring forward when normal operations resume.

The Company's executives and Board are closely monitoring all of these developments, to protect the continuity of operations and to look after staff, key supply chains and client relationships.

Enquiries

Sutton Harbour Group plc	[phone]	Philip Beinhaker, Executive Chairman Corey Beinhaker, Chief Executive Officer Natasha Gadsdon, Finance Director
Arden Partners (Nominated Advisor)	[phone]	Paul Shackleton, Ben Cryer

Notes to Editors

Sutton Harbour Group plc (SUH) is an AIM listed company specialising in marine operations, waterfront regeneration and destination creation in Plymouth and South West England.

The Company operates Sutton Harbour Marina, King Point Marina and Plymouth Fisheries. Operational activities include mixed-use lettings, car parking and support services to harbour users, property management and regeneration and asset enhancement.

Sutton Harbour Group plc is committed to being the leading marine and waterfront regeneration specialist in Southern England, and to positioning Sutton Harbour in Plymouth as a destination of national interest.

 

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