Tier One Capital Ltd, a wealth and fund management specialist based in Newcastle-upon-Tyne, has reported “significant growth” in loan facilities in support of property developments across the North of England and Scotland through its investment company, Develop North PLC.
The London Stock Exchange-listed company revealed in its full trading update for the financial year ending November 30, 2022, that it has increased loan facilities to £25.5m, an increase of more than 40% on the previous year and the highest since 2018. Develop North PLC focuses on supporting property developments in key regions and deploys its loan facilities across a portfolio of 17 projects, including two new developments in Northumberland, with the new loan facilities agreed amounting to £2.2m and £1.9m for executive homes at Fairmoor, Morpeth, and Moor Lane, Darras Hall, respectively. Develop North PLC generated an earnings per share of 1.9p and returned a dividend of 4p per share while achieving profits of £0.5m with net annual income of £1.4m. Its net asset value total return was 2.3%.
According to John Newlands, the chairman of Develop North PLC, the company’s increased loan facilities reflect their continued support for property developments in the North of England and Scotland, which will generate portfolio revenues in the future. Despite challenging economic forecasts, Develop North PLC will continue to seek high-quality investment opportunities, building on its experience before and after its listing on the London Stock Exchange.
Manager’s Positive Assessment
Brendan O’Grady, the fund manager of Tier One Capital Ltd., Develop North PLC’s investment adviser, commented that the quality of the loan portfolio demonstrates the company’s credibility as a lending resource for developers bringing forward important property schemes, such as new homes and commercial buildings.
He also expressed pleasure in the renewal of the agreement with Shawbrook Bank, which has maintained headroom and liquidity. The fifth-year renewal demonstrates the lender’s support for Develop North PLC and growing confidence in future deployment, given the strength of the pipeline in the current financial year.