Develop North PLC delivers solid performance in challenging economy with significant growth in company’s loan book

Apr 03 2023

Develop North PLC, managed by Newcastle upon Tyne based wealth management and fund management specialists, Tier One Capital Ltd, has delivered significant growth in loan facilities in support of property developments in the North of England and Scotland.

Announcing its full trading update for the financial year ending 30 November 2022, the London Stock Exchange listed investment company has reported loan facilities of £25.5 million, an increase of more than 40 percent on the previous year and the highest since 2018.

This is the first annual report since the investment company, which was originally launched more than six years ago, changed its name to better reflect its focus on supporting property developments in its key regions.

The loan facilities are deployed across a portfolio of 17 projects, including two new developments, both in Northumberland.   The new loan facilities agreed are £2.2m for the development of four executive homes at Fairmoor, Morpeth and £1.9m for new executive homes at Moor Lane, Darras Hall.

In its latest financial year, Develop North PLC achieved profits of £0.5m with net annual income of £1.4m.

The company generated an earnings per share of 1.9p and returned a dividend of 4p per share.  It also saw its Net Asset value total return at 2.3%.

Also in this financial year, Develop North PLC renewed its committed revolving credit facility with Shawbrook Bank.

John Newlands, chairman of Develop North PLC, said: “Our increased loan facilities represent the continued support we are providing for property developments in the North of England and Scotland, which will also support portfolio revenues over future months and years.

“While economic forecasts remain challenging in the months ahead, Develop North PLC will continue to seek out investment opportunities of the highest quality, building upon the experience it has gained both before and since its listing on the London Stock Exchange.”

Brendan O’Grady, Fund Manager of Tier One Capital Ltd, the investment adviser to Develop North PLC, said: “The quality of the loan portfolio reflects the growing standing of Develop North PLC as a credible alternative lending resource for developers bringing forward important property schemes including new homes and commercial buildings.

“We’re also pleased to renew the agreement with Shawbrook Bank, which has maintained headroom and liquidity.  Its renewal for the fifth year demonstrates the support Develop North PLC has from its lender and the growing confidence in future deployment, given the strength of the pipeline during this current financial year.”

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