MANOR Kingdom, the upmarket housebuilder bought by the Surrey-based owners of Bett Homes in 2004, is back in profit under new management.
The Dunfermline-headquartered business also signalled its expansion into England yesterday with the launch of Manor Kingdom Southern, which is poised to develop several sites close to the M25 orbital motorway around London.
Manor Kingdom was sold to property developers Remo Dipre and David Gaffney by Kinross-based entrepreneur Keith Punler in November 2004. Punler was reported to have pocketed close to GBP40m, but accounts obtained by The Herald in the aftermath of the deal showed that the new owners had financial troubles to resolve.
In calendar 2004, Manor Kingdom Holdings recorded a pre-tax loss of GBP3.8m, compared with a deficit of GBP312,674 in the previous 12 months. The 2004 losses saw Manor Kingdom Holdings carry forward a balance sheet deficit of more than GBP900,000. Only 41 houses were built that year, according to reports.
Under new ownership, the company announced that it has turned a loss of GBP800,000 in the last two months of 2004 into a pre-tax profit of GBP1.2m for calendar 2005. Turnover, including share of joint ventures, climbed to GBP28.7m.
Dipre said: "Manor Kingdom has an unrivalled reputation for quality and we were convinced that it could flourish given the right mix of people and resources. The turnaround in performance is testament to that."
Colin Ingram, who moved across from Dipre's Gladedale Group to become Manor Kingdom's finance director, said: "The primary reasons for the turnaround were that we got building costs under control and started to develop more profitable sites."
Other recently-installed members of the management team include Scot Angus MacLeod, who crossed from Gladedale to become Manor Kingdom Scotland's managing director. MacLeod replaced Sean O'Callaghan, the only remaining senior director who worked under Punler.
Also appointed to Manor Kingdom's board as a non-executive director was David Holmes, a construction industry veteran who was chairman of Rangers FC for a time in the 1980s. Holmes sold a majority stake in his timber treatment company European Timber Systems to Gladedale in early 2005.
Manor Kingdom, which employs 100 staff, has development sites under its control with a total gross development value exceeding GBP250m, including sites in England earmarked for properties which will sell for at least GBP500,000.
In Scotland, recent new developments include Newmachar nearAberdeen, a selection of refurbished and converted period buildings ranging from two-bedroom mews cottages to five-bedroom villas selling for up to GBP840,000. Newmachar's first phase was fully reserved within two weeks, the company said.
Further south a landmark development at Dollarbeg Castle and Country Estate in Clackmannanshire offers a choice of four and five-bedroom homes at prices rising to GBP556,000.
"The Palazzo", the company's first Glasgow city centre project at Ingram Street in the Merchant City, offers 71 one and two-bed apartments which will come up for sale later this year.
New English division Manor Kingdom Southern, meanwhile, is headquartered at Waltham Cross in Hertfordshire. The company has around a dozen sites located near the M25 which will be developed under the Manor Kingdom brand, Ingram said.
Gaffney added: "Given the platform of these excellent results, we are now committed to driving the business forward and to introduce the brand into other areas of the UK."
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