REG - Sutton Harbour Grp - AGM Statement

Sutton HarbourAnnouncement

13/09/2023 09:45

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RNS Number : 3078M  Sutton Harbour Group PLC  13 September 2023

13 September 2023

Sutton Harbour Group plc (the "Company")

Annual General Meeting Statement

The Chairman of Sutton Harbour Group plc issued the following update to
shareholders attending today's AGM.

Since my last update in the Annual Report published in July 2023, I am pleased
to report that Summer trading has been successful, with particularly strong
performance recorded by the car parks. Both marinas are currently trading at
close to capacity each with 96% occupancy. Increasing visitor revenues have
taken the overall equivalent occupancy rate of the marinas to 99% in the
five-month period to the end of August 2023.  Fisheries trading is slightly
improved in the trading year to date compared with the prior period, buoyed
particularly by fuel sales by volume up 29%. In April 2022, the Company took
the decision to reduce the margin charged on fuel sold to support the fishing
industry and to attract more vessels. The increased sales volume is assisting
to restore and grow profit on fuel sold.

The construction of the Harbour Arch Quay building at Sutton Harbour is now
nearing completion. Of the total 14 apartments, 12 have exchanged and 2 are
pending exchange. Fit out of the ground floor will follow to allow occupation
by the Company by the end of 2023. Development finance is expected to be fully
repaid by mid October 2023.

The first of two work phases being undertaken and financed by the Environment
Agency to replace the lock cills in Sutton Harbour has just started and is
scheduled to run for the next 10 weeks. The Company has put in place various
backup facilities to support fishers during periods when Sutton Harbour cannot
be accessed. A second phase of works for a further 10 weeks will take place
starting March 2024. The lock is a fundamental flood defence for the Barbican
area of Plymouth which was installed in 1992 and is maintained by the
Environment Agency.

Interest rates have continued to rise, and the cost of servicing debt has
become an increasing burden upon the Company. The Company is addressing these
challenges and whilst the Company does not anticipate rates to continue to
increase as they have done over the past 20 months, strategic planning is
taking into account that rates could remain at, or around, their current
levels. The Company continues to consider instruments to fix rates on all/part
of the debt, subject to securing acceptable terms.

The Company has taken the following actions to reduce debt and consequent
interest charges:

·    Raised £2.9m new equity capital in May 2023; and

·    Repaid £1.6m bank loan with a further £1.6m loan repayment expected
by 29 September 2023, with the Company's bank having agreed to extend the
repayment date from 31 August 2023.

The Company's stated strategy is realising value and reducing debt from the
following programme:

·    Material upgrade of existing assets to improve rental returns, as
demonstrated with the redevelopment of the Old Barbican Market, completed in
early 2023, with three new tenants yielding 50% more than the previous tenant.

·    Realisation of long-term leases with secure covenant and/or public
sector tenants.

·    Development of existing land and property holdings for sale /
leasing. Current and upcoming projects are Harbour Arch Quay, North Quay
House, Sugar Quay and Sutton Road.

·    Disposal of selected assets where the value is mature, but balanced
against the reduction of income generating potential of such assets.

·    As debt reduces, the Company intends to retain more future
developments for rental purposes, to provide growth in annual revenues.

The next upcoming project is planned to be the redevelopment of North Quay
House, an office building which is now largely vacant, scheduled to start in
2024. The Company is currently considering the best value uses for this site,
in the context of the current economy and property use demand, before
submitting a planning application in the near future. The consented Sugar Quay
plan is currently being adapted to reflect the expected sales absorption rate
and financiers' criteria and this work will lead a planning re-submission in
2024 and construction to start in 2025.

This strategy will allow the Company to progressively reduce debt over the
medium term.

The Interim Results for the 6-month period to 30 September 2023 are due to be
published in December 2023.

Enquiries:

 

 Sutton Harbour Group plc                                           +44 (0) 1752 204186

 Philip Beinhaker - Executive Chairman

 Corey Beinhaker - Chief Operating Officer

 Natasha Gadsdon - Finance Director

 Strand Hanson Ltd                                                 +44 (0) 20 7409 3494

 (Nominated and Financial Adviser and Broker)

 James Dance

 Richard Johnson

 

Notes to Editors

Sutton Harbour Group plc (AIM: SUH) is an AIM quoted 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 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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