Axis Topping Out

Property Alliance Group profit doubles to £11m

The developer, currently on site at Axis, St Peter’s Square, and Oxygen in Manchester city centre, reported a pre-tax profit of £11.1m, despite having to pay £1.3m over a legal dispute.

Headed up by David Russell, the developer’s pre-tax rose to £11.1m for the year to 29 June 2018, up significantly from profits of £5.7m a year earlier. Turnover also doubled, rising to £15.8m from £7.7m over the same period.

However, the group was forced to write off £1.3m in exceptional costs, relating to a legal claim against one of PAG’s former bankers, which the company lost. The company also set aside £3.2m to cover the defendant’s legal costs, incurred up to 29 June 2018.

The company’s wage bill stood at just over £2m, with the highest paid director earning £184,000, up from £142,000 in the previous year’s results.

In the accounts filed at Companies House, PAG’s director David Russell wrote: “The property market in the North West remains strong and retail yields remain buoyant. This combined with high-specification projects being delivered on a consistent basis by Property Alliance Group and its partners has led to another successful year for the group”.

Projects the developer currently has on site including Oxygen on Store Street, where it is delivering three blocks ranging in height from 33 to 10 storeys.

Elsewhere, the company is delivering 3 St Peter’s Square, set to feature a Staycity aparthotel and a Motel One, situated adjacent to 1 St Peter’s Square in the city centre. It is also on site at a dual hotel scheme on Portland Street, while Axis, the distinctive residential tower next to Deansgate-Castlefield Metrolink stop, is also nearing completion.

Land disposals in the last 18 months include a £9m sale of the Pocket Nook industrial estate in St Helens, and the sale of the 18-acre Eaton Works site in Walkden, although the latter is not reflected in the latest set of results.

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They should have spent some of that profit on improving the design.

By Anon