Edinburgh projects help property developer to record result

York-based property developer S Harrison, which has made a substantial investment in Edinburgh in recent years, has reported record annual profits.

Left to right: S Harrisons development director, David Clancy; chairman Martyn Harrison; and managing director Ann Scott. Picture: Contributed

Unveiling a profit before tax of £12.4 million for 2018, up from £4.7m a year earlier, the firm said its low gearing, strong balance sheet and significant cash reserves would allow it to build further on its success, focusing on off-market opportunities.

Full-year turnover came in at almost £47.1m, up from £29.2m. At the end of the year, net assets totalled £55.9m, compared with £46m the year before, of which some £16.8m was held in cash.

Chairman Martyn Harrison said: “By any standards that is an excellent achievement. Despite a record profit performance in 2018, what pleases me more is the longer view.

“Because development is a business with peaks and troughs, a more important measure of success is the group’s consistency of profit performance over time. Taking a rolling three-year perspective to level out those peaks and troughs, the company continues to show sustained and impressive growth.”

In Edinburgh, the firm is currently converting the Grade A-listed Buchan House, on the north-west corner of St Andrew Square, where it meets North St David Street, into a 72-bedroom Malmaison hotel. Work is due to complete in November. It has also submitted planning applications to create two student accommodation schemes, on Gorgie Road and another close to Murrayfield.

In total, the gross development value of the five current schemes it is working on in and around Edinburgh will be approximately £150m and the company is now said to be exploring further opportunities across the Central Belt.

Harrison added: “2019 and beyond will see us retain our focus on identifying off-market opportunities. Our independence, cash reserves and sound financial standing allow us to move quickly and decisively, often bringing to fruition schemes where others have seen no potential, or where others have tried and stalled.”