One Heritage Group plc: Full year results for the year ending 30 June 2023
One Heritage Group PLC (LSE: OHG), the UK-based residential developer, development manager and property manager focused on the North of England, is pleased to announce its audited results for the year ended 30 June 2023 (FY 2023).
- Increase in revenue of £13.84m, +792% on the prior year, from £1.75m to £15.59m, driven by 71 sale completions during the period.
- Impairment was £1.09m in the period, a decrease of £0.01m on the impairment reported in the interim announcement. The impairment loss is included in cost of sales.
- Previously reported factors have continued to impact developments, including increases in costs due to rising material prices, sub-contractor prices, delays experienced and the cost of debt. The self-delivery of projects leaves the business exposed to any inflationary pressures and construction delays, and this has been a major contributor to the losses. All self-delivered projects will be completed by the end of the current calendar year.
- Gross profit of £0.59m improved by £1.30m or 184% on prior year mainly due to the sales growth (FY 2022: gross loss of £0.71m).
- Loss before tax of £2.14m (FY 2022: loss of £2.13m).
- Basic loss per share of 6.2 pence (FY 2022: loss of 6.6 pence).
- Net debt of £16.94m (FY2022: £14.95m). In the period a One Heritage SPC loan of £1.23m at a 12% interest rate was repaid and the existing shareholder loan facility was increased by the same value at an interest rate of 7%. The total shareholder loan facility drawdown as at 30 June was £11.38m and the total facility is £14.30m, due to be repaid on 31 December 2024.
- Practical completion of three major development projects, being Lincoln House, Bolton, Liberty House, Sheffield and Oscar House, Manchester.
- Practical completion of County House, Oldham, the Group’s first project acting as development manager.
- Construction commenced on our latest development project in May 2023 on Victoria Road, Eccleshill, West Yorkshire, with target completion expected in H2 2024.
- Completed a Company strategic review, with particular reference to our acquisition and delivery strategies, focusing on our core discipline of residential Property Development in the North of England, acting as developer and development manager using fixed-priced build contracts, commencing with Victoria Road, Eccleshill.
- In May 2023, the Group received its Arla Propertymark accreditation, a nationally recognised code of practice, for its Lettings operation.
- Geoff Willis appointed as Investment Director, a new role overseeing the Group’s development pipeline.
Post Period Events
- The Group secured a bulk sale of 20 apartments in Lincoln House, Bolton. The sales were legally completed in October 2023, and this now means that 76 out of the 88 units have been sold.
- Construction commenced for One Victoria, Manchester, where 129 self-contained apartments across two buildings are set to be developed acting as development manager.
- Parent company and majority shareholder extended its support and increased its previous £12.30 million debt facility by £1.70 million to £14.00 million, on the same terms with a repayment date of 31 December 2024.
- The Group has decided to sell the developments at Churchgate, Leicester and Seaton House, Stockport following a viability review of its design and costs, and sales of the projects are being progressed.
- On track to deliver Victoria Road, Eccleshill, a direct development, during the next calendar year and the new project pipeline contains future opportunities which are being reviewed.
- The Group is expecting to complete North Church House, Sheffield a development managed project in FY 2024.
- The North continues to be validated as highly attractive for property investment, with leading adviser Savills predicting house price growth in the North West specifically of 11.7% over the next five years – the highest of any UK region.
Jason Upton, Chief Executive Officer, commented:
“It has been a milestone year for the Group as we delivered our first wave of practical completions. The Group has also seen strong revenues, with the majority of units sold, whilst sales channels are focused on the remaining unsold residences.
The Group is also poised to complete all self-delivered projects in the short term, which have been problematic with cost control, and has now commenced all new projects using fixed price contracts to remove this risk. Our focused strategy, coupled with significant investment in experienced property development skills and resources, gives us confidence that current and future development projects will be delivered on a timely and cost-effective basis.
The North of England continues to prove itself as an attractive region for property investors given the growing demand for quality, affordable housing, which we are delivering. We look forward to continuing delivery of our strategic objectives in this coming year.”
Chief Executive Officer
Chief Financial Officer
Hybridan LLP (Financial Adviser and Broker)
Claire Louise Noyce
Tel: +44 (0)203 764 2341
Yellow Jersey PR (Financial PR)
Charles Goodwin/Annabelle Wills/Bessie Elliot
Tel: +44 (0)203 004 9512