Urban Splash chairman Tom Bloxham said the developer’s acquisition of modular manufacturer SIG Building Systems’ assets earlier this year was “a statement of intent” although the business reported a fall in turnover and profit in its latest financial results.
The developer reported a turnover of £19.1m and total profit of £6.5m for the year to 30 September 2017, compared with £26m and £12.2m in its previous full-year financials.
Cash reserves rose to £17.3m, up from £13.9m, while debt also rose to £76.9m, up from £65.1m, following the development of new facilities for the company’s homes division, House.
The developer said the drop in turnover and profit was due to higher revaluations of commercial assets and disposals of assets during 2016.
Bloxham said this year would see Urban Splash up its focus on modular housing and rented properties.
Urban Splash acquired the trade and assets of SIG Building Systems in March this year, and while not yet reflected in the company’s results, Bloxham said the acquisition was “a statement of intent and our commitment to modular housing delivery”.
Under the terms of the deal, Splash has taken on SIG’s modular factory in the East Midlands, all of its intellectual property, patents of its modular housing system and around 70 staff, for a nominal £1.
The developer also has further plans to deliver more modular projects at Wirral Waters and at two sites in Milton Keynes and Birmingham.
More traditional building projects being brought forward include the redevelopment of Avro in Manchester, where a former mill will be refurbished to house 31 loft-style apartments.
In commercial property, Urban Splash reported all-time low vacancy rates at its key office developments; the Boat Shed at Salford Quays and the Tea Factory and the Vanilla Factory in Liverpool.
The company is due to mark its 25th anniversary in July this year, and Bloxham added: “I am very proud of what we have achieved with the help of all our partners and our dedicated staff and so far, it has worked – we are celebrating our silver anniversary but have no intention of going into our golden years just yet!”