Posted on 6 Oct 2008

Announcing a pre-tax profit of £1.77 million on a turnover of £5.96 million, The EDI Group Limited today [7 October 2008] publishes its annual report for the year 2007.

The 2007 profit is down on the previous financial year (£2.83m in 2006) but turnover increased, due mainly to EDI’s share of joint-venture sales.

Commenting on the figures, Gordon Mackenzie, Chair of The EDI Group Limited (EDI), said:

“The last period of trading has demonstrated EDI's resolve and ability to seek out new opportunities, ensuring that we're well placed to weather current market conditions.

"Looking forward - and despite those difficult market conditions, we can be reasonably optimistic. A recent review of EDI by our shareholder, The City of Edinburgh Council, has reaffirmed the view that we remain a key vehicle for developing the city's assets.

"We expect that the relationship with the Council will provide EDI with further opportunities for development in the year ahead."

EDI made a significant profit (£1.49 million) on the sale of investment properties, largely as a result of the disposal of the A1 Industrial Estate and Starlaw Business Park by Edinburgh Industrial Estates Ltd, the company’s joint venture with J Smart & Co (Contractors) plc.

The company’s total reserves were reduced by two main events: the final dividend instalment of £8.85m from the 2006 equity release programme to EDI’s shareholder – The City of Edinburgh Council – and an unrealised loss on revaluation of properties of £4.1m reflecting the correction in property values across the sector.

A new group funding facility was tendered and secured, providing the company with improved margins, ease of administration and £70m of funds to deliver planned
projects.

On the development side, EDI is busy, having lodged planning applications for a new clubhouse for community use at the Phoenix Club, Harrison Gardens and for the restoration of Lamb’s House in Leith. Both these small projects should be on site in Spring 2009.

To the west of the city centre, at Ratho Park, EDI had two planning applications approved to create a 97-bedroom hotel (pre-let to Travelodge) and a 1,860 sq m (20,000 sq ft) office. Construction started in summer 2008 and both projects are scheduled for completion in late 2009.

The company’s biggest project remains the regeneration of Craigmillar, through its PARC JV with The City of Edinburgh Council. This is now fully mobilised and £49m of expenditure has been either spent during 2007 or committed for 2008. Highlights during the year include:

• The opening of the joint campus for Niddrie Mill and St Francis RC primary schools and nurseries
• Two Homes for Scotland 2008 Designing Places awards for the master planning of the area
• the sale of the majority of homes released in phase 1 of Wauchope Square
• the preparation of a new master plan for the Craigmillar town centre to include a food store and a new community high school
• the purchase of a listed pub, The Whitehouse, on Niddrie Mains Road and an industrial site at Peffermill to create 1,500 sq m (16,000 sq ft) ‘nest’ units for SME companies
• the opening of a ‘third generation’ all-weather football pitch at Castlebrae

The residential side of the business performed well during 2007. These projects, delivered through BUREDI, the company’s JV with The Burrell Company, include Coalhill in Leith where the majority of the 35 residential units have been sold.

At Bell’s Mills in the Dean Village over a third of the 24 properties have already been sold, including all four penthouses. And at Fountainbridge, where a mixed use development incorporating homes and offices is planned, the demolition and service diversion contracts are complete.

Beyond Edinburgh, EDI has secured planning permission for a health centre in Ardrossan. This development for North Ayrshire Ventures Limited (NAV), the company’s joint-venture with North Ayrshire Council, will be the first NHS building in Scotland to achieve a BREEAM “excellent” rating. An earlier NAV development - an office building at Kilwinning - won the British Council for Offices Best Small Project award for Scotland – one of the most prestigious awards EDI has won in recent years.

The Annual Report also records the significant contribution to the company from Ian Wall, who stood down as Chief Executive in April 2008.

EDI continues to use Triple Bottom Line reporting to assess its performance against a number of environmental, social and economic factors and its successes in this area are highlighted in an appendix to the report.

-ENDS-

For further information or photographs please contact Giselle Dye or Esther Black, at Pagoda PR on 0131 556 0770, email Giselle.dye@pagodapr.com  or esther.black@pagodapr.com  

You can view a PDF of the 2007 Annual Report and Accounts here.