Along with results that show pre-tax profits up from £3.74m for the 15 months to March 31 1986 to £4.65m a year later, construction and development group Rush & Tompkins, under new management, has announced a new strategy that will see increased emphasis on property development and development partnerships.
Turnover is up to £217m (£184m) and earnings per share increased by 23% from 14.6p to 17.9p. Overseas contracts claims from the now closed international construction division account for a £5.6m extraordinary item.
Meanwhile, net borrowings have been reduced to £18.9m (£44.1m) and gearing is diminished 100% to 54%. There was an £8.1m rights issue in August.
The year included the writing down of R&T’s former Sidcup headquarters, Marlowe House, from £17.5m to £12.1m (gross) by valuers Jones Lang Wootton, as well as the sale of around half the investment portfolio to Priest Marians.
Managing director Nigel Dunnett says that the group is now to be earnings — rather than asset — led. The finished worth of development partnerships to which the company is presently committed is around £50m, but this should dramatically increase if and when the Sandwell Mall and Paddington Basin projects materialise. The latter is with Priest Marians, where links are expected to get even stronger.
Other development partners include Sibec, the Co-op, Lawfield Investments and Revival Properties, and the construction division has been responsible for building Tyneside’s Metro Centre.
