Sutton Harbour Group PLC on Friday posted strong revenue growth and a widened loss as the company continues to focus on lowering its debt levels.

The Plymouth, England-based company which owns and operates Sutton Harbour is also a specialist in waterfront regeneration projects and waterfront real estate.

In the year that ended March 31, pretax loss widened to £4.4 million from £2.0 million the previous year.

Revenue doubled to £16.4 million from £8.2 million, while cost of sales jumped to £16.3 million from £5.9 million.

Marine, real estate, and car park revenue fell 1.1% to £8.1 million from £8.2 million, whereas regeneration activity revenue stood at £8.3 million, up from nil last year.

Administrative expenses increased 12% to £1.3 million from £1.2 million and cash and cash equivalents held by the company reduced by 29% to £782,000 from £1.1 million.

Executive Chair Philip Beinhaker said: ‘The company is confident that actions underway will address the principal risk of unsustainable debt levels whilst current higher interest rates prevail.’

Year-end net debt fell by 16% to £24.8 million from £29.6 million following the repayment of a £3.2 million bank loan and development finance of £4.5 million.

During the period, the company suffered from severe disruptions to its harbour operations due to work undertaken by the Environment Agency to replace the Sutton Harbour lock cills, leading to an exceptional cost of £236,000 to provide back-up fish landing facilities.

Looking ahead, Sutton Harbour is targeting a 46% reduction in its bank debt over the current financial through the sale of assets in its £54.7 million portfolio.

‘The corresponding loss of rents, fees and charges from the assets being marketed will mean that the net cash result will be broadly neutral until interest rates fall. Contraction of the asset base may allow some cost savings to the general overheads of the group,’ Sutton Harbour explained.

Once dealing with its debt situation, the company hopes to bring forward additional new projects.

Sutton Harbour shares were down 3.1% at 9.45 pence each in London on Friday morning.

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