14 Apr 2014 07:00
Northacre PLC
("Northacre" or the "Company")
Trading Update
The Company is pleased to provide the following trading update following the completion of its financial year ended 28 February 2014.
This financial year was one of transformation, with the Company undergoing a change in majority ownership to Spadille (a vehicle controlled by Abu Dhabi Capital Management), the appointment of a new Chief Executive, and the appointment of ADCM Ltd as consultant to the Company. The effects of these appointments began to show in new projects that the Company and its subsidiaries have recently been appointed to, namely 1 Palace Street and 33 Thurloe Square, and in the pipeline of opportunities that the Company is currently evaluating.
The Company expects to report consolidated revenue in the region of £3.0m compared to £3.5m in the prior year. This is a result of a reduction in Lancaster's related revenue earned by Intarya. The Company also expects to report lower administrative expenses (£8.9m to circa £5.3m), principally as a result of the reduction in the bonuses paid in respect of the Lancasters development in the last financial year.
The Company has entered into two Development Management Agreements ("DMAs") for the development of two Prime Central London ("PCL") developments located at 1 Palace Street and 33 Thurloe Square. Both projects are expected to make substantial contributions to revenues over the coming several years with development fees expected to exceed £11m, as per the signed DMAs. In addition, the Company is entitled to a performance fee as part of the DMAs, and expects to benefit from returns on its minority equity investment in these projects.
The Directors of the Company are confident about the Company's future prospects, supported by its significantly strengthened balance sheet post the recent fundraising that was underwritten by Spadille. Furthermore, the Company is enjoying enhanced market reputation and presence as a result of the business activities of the past year, and in particular its appointment as development manager to 1 Palace Street, one of the most prominent PCL schemes.
Enquiries:
Northacre PLC Tel: 020 7349 8000
Klas Nilsson (Non-Executive Chairman)
Niccolò Barattieri di San Pietro (Chief Executive Officer)
finnCap Ltd Tel: 020 7220 0500
Stuart Andrews
Henrik Persson