Langtree back to profit but void rate still high
The Newton-le-Willows-based developer, which last year posted a pre-tax loss of £1.3m, reported a pre-tax profit of £1.5m and an uplift of £3m in net asset value to £81m in the year to July 2010.
The vacancy rate in the property portfolio reduced from 30% but is still high at 23%. Langtree, controlled by Bill Ainscough, owns 4m sq ft across the North East, Yorkshire, the North West and Midlands and has 1,000 tenants delivering a rent roll of £17m a year.
John Downes, managing director of Langtree, said: "It is pleasing to report that all entities in the group are trading profitably at the year end, we have made progress in all elements of the business.
"The key components of our business model include a cash generative property portfolio with no over dependence on any individual tenancy, conservative gearing levels and a development portfolio that can deliver further returns as opportunities allow.
"Clearly, we are not immune to the economic downturn, but by maintaining a solid investment portfolio generating a base income from which we can fund all of the group's other more long term development activities, we can protect the business from the worst of any downturn."
