David Pearl’s Structadene is preparing for a “major downturn” in the UK economy, it has emerged, as the company posts its financial results for the year ending 30 September 2017.
Chairman and chief executive Pearl – who oversaw a major restructuring of the business between 2009-2010 – said that despite the resilience of the UK economy so far, there could be challenges ahead: “The future is less certain, as interest rates rise, domestic demand softens and retailers weaken and fail under the strain of increased occupancy and staff costs amidst pressure from online competitors.
“Faced with such uncertainties, we have to endeavour to future proof our business with a well-spread diversified portfolio, low levels of debt and high liquidity. When the next major correction/downturn arrives – and it will, I just don’t know when or why – we need to be prepared.”
Meanwhile, the company has seen a 10% rise in its net assets, which rose to £450.63m, up from £408.85m. Last year, its net assets increased by 21%.
Rental income across the portfolio increased by 3.6% during the period due to a rise in rents and new lettings.
Meanwhile, the company’s turnover fell 2% from £69.76m to £68.61m, while Structadene Group’s turnover – including subsidiaries Pearl & Coutts, Zefiran and Shardell – fell 4% from £60.2m to £57.96m.
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