Langtree sets out Parkside expansion plans as profits rise
The Warrington-based developer, behind projects including Sci-Tech Daresbury and the regeneration of Parkside Colliery, has reported a 29% increase in net asset value and an increase in profit in its annual results.
Profits rose by 9%, up to £965,000 for the year to 31 March 2018, up from £887,000 a year earlier. This figure excludes one-off profits from the previous year.
Langtree was created three years ago following a management buyout by John Downes and Malcolm Jackson, who completed a deal to buy the company from owner Bill Ainscough, and has been profitable since its foundation.
The group has increased its focus on local authority joint ventures in recent years, with projects including Sci-Tech Daresbury – a joint venture with Halton Council – and at Hollinwood, where the company has partnered with Oldham Council.
Other large projects include the Parkside Colliery regeneration in St Helens, which is again being delivered in a joint venture with the council. A link road to connect this site with the M6 has recently secured £24m of funding. Plans are already in for the first phase, totalling 1m sq ft of logistics space, while Langtree said an application for the second phase is expected in the second quarter of next year.
The net value of the company’s assets increased 29% to £3.6m, while total assets under management rose 5% to £210m year-on-year. It now employs 37 people.
“This is only our third year of trading, but the company has a very mature feel to it,” said chairman Tim Johnston.
“Our primary focus remains on developing the joint venture assets we own with our local authority partners and this year has seen a step-change in activity across all fronts. We have an extremely robust pipeline going forward, are well-funded and have a very strong and focused team. We are very optimistic about the future.”
The company has also continued to build its relationship with funder PGIM Real Estate; Langtree has advised on the purchase, refurbishment, and management of the Lyntown and Transpennine trading estates, as well as the purchase of a trading park in Yorkshire.
“Our relationship with PGIM adds a different focus and revenue stream to our business and is one that is growing steadily,” said John Downes, Langtree’s group chief executive.
“We’re now also managing a number of key development opportunities on its behalf and we also operate numerous third-party management contracts for them. None of this, of course, would be possible without the hard work of a talented team of colleagues and advisors and my thanks go to all of them.”
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If langtree are so wealthy and profits rise then why are they not paying back the money lent to them by cash strapped St. Helens council for this project? We are led to believe that St. Helens council are providing the funding for the project. Who is spending the council tax payers money in this way? Who is taking from the poor to give to the rich? Are Langtree and St. Helens council building a wall of secrecy to keep the poor out?
By Super Sevnot
It isn’t the site of Parkside Colliery, it’s far far bigger than that and involves all the surrounding fields on both sides of the motorway including a registered civil war battle site. The whole scheme is a disgrace with all the risk being held by the council and most of the profits going to Langtree.
By Newton Ninja