The directors of Sandwell property development company Regalhill Ltd are “pleased with the financial strength” of the group and “satisfied” that it is well positioned for future growth.
Regalhill Ltd is owned by the Richardson family and has its headquarters in Oldbury. Dr Roy Richardson and his late brother Don began developing commercial property way back in the 1980s. Today the company is run by Roy’s three sons and three years ago Roy received the rare accolade of becoming an Honorary Freeman of Sandwell.
The accounts the family-run firm filed for the last financial year show that its turnover dropped from £60.9m to £39.9m in the 12 months to 31 December 2019, while its pre-tax profits went from £10.9m to £2m.
Despite this drop in turnover and profits, the directors commented that they view the future with “cautious optimism” and believe that the company’s turnover and profits will rise once various projects have been completed.
In the documents filed, a statement signed off by the board said: “During 2019 the group continued to be productive in its approach and has remained very active across the real estate market, capitalising on its long trading history and market experience.
“The group has reviewed many opportunities but has remained very selective, only investing in projects that meet very strict criteria.
“Excellent progress has been made across existing projects and as in previous years the group has continued to focus on certain sub-sectors where demand is strong.
“Significant value has continued to be created across the real estate development portfolio representing a continuance of the progress made in recent years.”
The statement goes on to explain that over the last year the group’s focus has been the continued development of previously acquired real estate projects, which resulted in reduced turnover and profit. However, the completion of these projects should achieve higher levels of turnover and increased financial performance in the coming years.
Regalhill Ltd is known for its success in the development industry and with over a million square feet of development within the Birmingham and Sandwell area, schemes like the Merry Hill Shopping Centre, the Fort Shopping Centre and Star City are all landmark projects that carry the Richardson footprint.
Other ventures during the last financial year include the partial disposal of an interest in Ask Central to a new joint venture partner and the beginning of construction on the first phase of a six-acre, mixed-use development in central Durham.
The group also experienced “very strong” letting interest in a large mixed-use scheme in central Manchester with funding set to be finalised shortly and construction due to begin in the autumn of 2020.
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