One Heritage Group plc: Interim report for the six months ended 31 December 2023

RNS

One Heritage Group plc: Interim report for the six months ended 31 December 2023

One Heritage Group PLC (LSE: OHG), the UK-based residential developer focused on the North of England, announces its half year results for the six months ended 31 December 2023.

Financial highlights

Revenue of £9.15m (H1 FY23 for the six month period to 31 December 2022: £5.75m). This primarily reflects a significant growth in sales along with construction services.
Gross profit improved by £0.44m to a profit of £0.16m (H1 FY23: loss £0.28m) as a result of reduced impairments in the current year, with a charge of £0.33m (H1 FY23: £1.10m) being recognised in the period. Loss before tax of £1.94m (H1 FY23: loss £1.57m).
Basic loss per share (pence) of 5.2 (H1 FY23: 4.1).
Net debt of £18.67m (H2 FY23 for the six month period to 30 June 2023: £16.94m) an increase of £1.73m facilitating the completion of developments prior to legal completions.
Inventory reduced in the period by £2.27m to £14.30m (H2 FY23: £16.57m) reflecting completed sales.

Operational highlights

Commencement of construction on One Victoria, Manchester, which comprises 129 units, with practical completion due in 2025, where the Group benefits from development management fees of 2% of development cost.
Commencement of construction for 24 houses at Victoria Road, Eccleshill, West Yorkshire, the Group’s first new build housing project.

Post Period Events

Practical completion of St. Petersgate, Stockport.
Practical completion of North Church House, Queen Street, Sheffield.
Repaid £1.5m Corporate Bond and signed another £0.5m unsecured loan to 15th March 2025 at 8% interest.
A revision of the Shareholder loan agreement extending terms to 31 December 2025 with the option to extend for a further 36 months.

Outlook

On track to deliver strong revenue for FY24, driven by robust pipeline of property sales.
Commencement of marketing for sale of 24 houses at Victoria Road, Eccleshill, West Yorkshire in April 2024.
With a determined focus on finding good development and development management opportunities, we are cautiously exploring several promising options in core city centre locations for apartments, as well as high-demand areas for new build housing projects.

Commenting on the Group’s performance, Jason Upton, Chief Executive Officer said:

“Our focus has been on finishing our projects in hand, both our own developments and those where we are development manager. In this respect, by the end of our interim reporting period, we had substantially completed projects at St. Petersgate, Stockport and North Church House, Queen Street, Sheffield.

We have stepped back from the risks associated with self-delivery and we have looked at ways to monetise our unsold inventory. We have embarked upon a thorough investigation into how we can fully utilise, through diversification, the potential of our excellent team and brand in our core business of development/development management and we are actively engaged in conversations with distribution networks in territories abroad where we know there to be significant amounts of capital as we seek an even wider market for the Group’s end-product.

Our positive outlook is grounded in a robust strategy that focuses on core city centre locations for residential apartment projects and areas in high demand for our new build housing initiatives. The North West of England, particularly Greater Manchester, continues to be our primary focus, with the region expecting the highest sales price growth of any UK city in 2024 and already generating above average growth for rent at 9.8%, above the national average of 7.8% in January 2024.