The company which owns a large swathe of Plymouth’s waterfront and its former airport site has made losses of more than £2m in the past year.
Sutton Harbour Group, in its annual results for the year to the end of March 2021, said it had been hit by Covid lockdowns and the closure of the large Edinburgh Woollen Mill store, a tenant on Plymouth’s barbican. But it is confident of recovery as the nation emerges from restrictions and the vaccination programme continues.
Its report revealed revenue of £5.4m, down from £6.5m a year earlier, and a pre-tax loss for the year of £2.373m, more than three times the £756,000 deficit it made in 2019/20.
The AIM-listed firm, which has a long lease on the city’s mothballed airport site, blamed the “Covid crisis” for slashing car parking revenues, “an important cash generative activity” and shrinking business at Plymouth Fisheries.
More Sutton Harbour Group news
It said that after lockdown restrictions were relaxed in the summer of 2020 car parking revenues quickly recovered as visitors returned to Plymouth’s waterfront. But this was short lived and its report said: “Unfortunately this recovery was cut short as two further lockdowns followed.”
During the year the Company was also “exposed to the business failure” of Edinburgh Woollen Mill, which occupied a 7,500sq ft waterfront unit but which closed without warning in May 2021.
It also said that business was slowed at Plymouth Fisheries as the market for high-quality fish reduced in the wake of closures of restaurants and hospitality businesses during the lockdowns.
The annual results revealed that there was a £294,000 cut to car parking revenue, and a £146,000 from its fisheries and Sutton Harbour and King Point marinas business.
Sutton Harbour Group was not eligible for any Covid-19 related Government grants and full functionality of the harbour - fisheries operations, harbour services and 24-hour lock operations - operated continuously to support users due to its status as a statutory harbour authority and as part of the food supply chain infrastructure.
However, the company said collection of rental income from tenants had been steady throughout the year with some tenants arranging instalment payment plans.
Overall 90% rentals falling due have been collected and the group has continued to let vacant space to new tenants with the occupancy rate at 97% March 31.
Its marinas benefitted from a boom in UK-based leisure during Summer 2020, a trend that has continued into the Summer 2021 season giving rise to a marinas occupancy rate of 96% by June 2021.
How to contact William Telford and Business Live
Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
To contact William: Email: william.telford@reachplc.com - Phone: 01752 293116 - Mob: 07584 594052 - Twitter: @WTelfordHerald - LinkedIn: www.linkedin.com - Facebook: www.facebook.com/william.telford.5473
Stay in touch: BusinessLive newsletters have been re-designed to make them even better. We send morning bulletins straight to your inbox on the latest news, views and opinion in the South West. Get our breaking news alerts and weekly sector reviews too. Sign up now - it's free and it only takes a minute. To sign up for Business Live's daily newsletters click here.
And visit the Business Live South West LinkedIn page here
The company also stressed that visitors have now returned to Plymouth’s harbour area with tenants and other operators attracting strong footfall.
The annual report said: “To date, the recovery of Summer 2021 is proceeding strongly as parking incomes and tenants' businesses improve, allowing the group to move on from the difficulties of the past 16 months.”
The report concluded: “The disruption caused by three lockdowns and restrictions imposed by the UK Government to contain the spread of Covid-19 was more extensive than we foresaw last summer and there is the potential for further interruptions to trading in the future.
“The board is now more optimistic that with the vaccination programme well advanced and with businesses finding ways to adapt to different levels of restriction, the group is well placed to benefit from the re-popularisation of UK based tourism and staycations.
“This has already been demonstrated by the growth in marina occupancy, recent increase in new lettings and recovery in parking revenues in the post year end period.”
