AGM Statement

26 Jul 2005 12:00

Sutton Harbour Holdings PLC26 July 2005 Sutton Harbour Holdings plc AGM Statement Our new financial year has started well. Our traditional marine relatedactivities have made steady progress. The trend towards larger fishing vesselsusing our facilities has led to an increase in fuel sales in both volume andvalue but with high fuel prices margins are tight if we are to maintain marketshare. The marina remains full and demand is strong for any berths that becomevacant. Around the harbour it has been exciting to see the completion of our HarbourAvenue development and the progress of the Shepherd's Wharf development. Theframe of the new office block for the Department of Works and Pensions on theMoon Street site is now in place and the development is currently on scheduleand budget. The apartments being built by Barratt Homes on the other part of thesame site are also going up fast. Another project underway is the development ofapartments on the Penrose site. We are undertaking this development withSignpost Housing Association. We have a number of other regeneration projects inhand around Sutton Harbour and further afield but there is still work to dobefore we can be sure any of these will come to fruition. As I said in my statement with the accounts, both of the healthcare developmentsby ReSound Health Limited, in which we have a 37.2% interest, are well underwaywith the first health centre due for opening this autumn. We intend to bid forother similar schemes as they become available in the coming months because webelieve they are attractive to your company as they provide guaranteed long termreturns with public sector tenants. Bidding for such schemes is bothtime-consuming and costly but the rewards are worthwhile if one is successful. Passenger numbers passing through Plymouth City Airport in the first threemonths of the financial year were largely unchanged on those for thecorresponding period a year ago. We do not expect significant increases in thecurrent year unless additional routes are introduced, either by Air Southwest orby other carriers. Air Southwest has again exceeded our expectations in the first three months ofthis financial year during which it carried 73,000 passengers compared with50,000 in the same period last year. This year's total has, of course, beenboosted by the new routes introduced in April. We have maintained a 74% aircraftload factor and suffered no dilutory effect with the new routes. If thisperformance continues we expect another good year for Air Southwest despite thehigh price of fuel and the weakening pound. We are encouraged by various recentpositive statements from Cornwall County Council about the future of NewquayAirport and the recent decision to go ahead with the enlargement of the terminalfacilities there. Our aim in the year ahead is to balance growing airline revenues with rentalincome so that the company's earnings profile is not significantly altered.There are many opportunities available for us, particularly in regeneration, andwe are confident we have the skills and ambition to translate these into higherprofits and dividends for our shareholders. This information is provided by RNS The company news service from the London Stock Exchange