Company behind Plymouth's Millbay regeneration helps parent company make £47million profit
THE developer behind the £160 million Millbay regeneration scheme has contributed to its parent firm increasing its annual profit to £47.1million.
Urban regeneration company Muse Developments is credited for playing a significant part in producing "a solid set of preliminary results" for parent Morgan Sindall Group plc.
The company said its figures for the year ended December 31 2012 must be viewed against a backdrop of "challenging trading conditions" and reported a fall in revenue and share dividend.
Nevertheless, Morgan Sindall Group delivered a profit before tax, amortisation and non-recurring items of £47.1million, up from £45.3million in 2011.
This was achieved on revenues of £2,047million, down from 2011's £2,227million).
This meant adjusted earnings per share dropped to 79.3p from 86.7p and the dividend fell to 27p per share from 42p.
The group's forward order book stands at £3.1billion, down from £3.4billion a year ago, but with £0.5billion of projects at preferred bidder stage, £0.2billion higher than at 12 months ago.
The group also reported a growing regeneration pipeline of £2.1billion, increased from £1.8billion, with a further £0.4billion of regeneration schemes at preferred developer stage, as against £0.6billion in 2011.
The national developer – which has offices in London, Manchester, Leeds and Glasgow – said it continued to progress major urban regeneration schemes across the UK in 2012.
The company also maintained a development pipeline which stands at £1.9billion with an additional £0.3billion of schemes at preferred developer stage.
Through English Cities Fund (ECf), Muse is carrying out the £160million Millbay regeneration scheme in conjunction with the Homes and Communities Agency (HCA) and Plymouth City Council.
It involves the transformation of a 15-acre harbour-side area into a new waterfront community.
Muse said construction has progressed well on phase two, a building known as Cargo 2.
This mixed development will see the creation of 14 houses, 34 apartments and retail space.
The first new homes for open market sale are expected to be ready in April.
Planning permission was also secured in 2012 for a boulevard linking the city centre with the waterfront as part of the next phase of 102 homes at East Quay, with commencement targeted for the spring.
Further planning consent was also secured in 2012 for a new marina and works are due to commence in early spring.
Last month, Plymouth-based marine and waterfront regeneration specialist Sutton Harbour Holdings (SHH) showcased the King Point Marina plan at the London Boat Show.
SHH will build the 171-berth marina after striking a deal on the lease of the Millbay site with ECf in December.
Mike Auger, regional director for the South.
"We have made good progress throughout the last year on obtaining planning consents, procuring funding and commencing construction across our southern UK schemes," says Mike Auger, Morgan Sindall's regional director for the South, said: "Working with our partners we remain able to deliver regeneration projects in what remains a challenging environment and continue to look to increase our activities across the south of the country."