Emerson Group reports pre-tax loss

Michael Hunt

The Alderley Edge-based Emerson Group, which includes Jones Homes and Orbit Developments, has reported a pre-tax loss of £6.2m for the year to the end of April 2009.

The organisation said the loss was due to more than £24m of exchange rate loses against the Yen and low residential demand.

These latest figures contrast greatly to the £34.7m profit The Emerson Group, which is celebrating its 50th anniversary this year, made a year earlier.

Turnover for the Emerson Developments group, including joint ventures stood at £138.8m, compared with £192.1m a year earlier, while the group's standalone performance showed a turnover of £130.6m, a 27% decrease on £180m in 2008.

The company partially blamed the 30% fall in Sterling's value against the Yen, in which it has borrowings, for a large part of its loss – attributing £24.6m to exceptional exchange losses.

However, turnover in the group's residential division also took a severe hit, falling into a loss of £3.4m over the year from a profit of £17.3m, on a reduced turnover of £39.2m, which was £85.4m in 2008.

The company's commercial and international performance remained relatively stable, with profit only falling 10% to £20.4m on a turnover that reduced 5% to £103.2m.

Chairman Peter Emerson Jones said in a statement signed off in early September that the company had seen a marked upward swing in residential sales in the half year since April, and that he expected the company to return to profitability in 2010.

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