Sir Tom Hunter enjoys big property profit hike

West Coast Capital, Sir Tom Hunter’s property investment businesses, has reported a significant increase in profits over the past 12 months.

Latest accounts for the Ayrshire entrepreneur’s business show a £6.5 million pre-tax profit, up from £3.7m in the previous year.

In the accounts for Sir Tom’s West Coast Capital Holdings for the year to March 31, newly filed at Companies House, the property firm noted: “This is a long-term development with no certainty of success. Forecasts indicate actions are required to reduce costs over the life of the development and a subsidiary has opened negotiations with relevant authorities.”

In a statement, Sir Tom said the West Coast businesses were in good shape after taking a prudent approach amid the challenges posed by the downturn triggered by the credit crunch and the ensuing global financial crisis of 2008.

West Coast Capital firms wrote down the value of many investments while Sir Tom converted loans owned by some into shares.

“Last year saw steady progress as evidenced by the strong balance sheet underpinned by an ever-present prudence towards valuing our asset base,” said Sir Tom.

For example, he noted, West Coast had made a very successful investment in listed property venture Secure Income REIT.

The holding was valued at £129m on the Aim market at West Coast’s year end in March. It was recorded in the accounts of West Coast companies at the historic cost of £51m.

Sir Tom added: “It’s great to be bank-debt free and to continue to invest both in our existing portfolio to aid growth and in a number of new investments.”

The results reflect a big improvement in Sir Tom’s fortunes in the property game in recent years.

After making about £290m from the sale of his Sports Division business to JJB in 1998, Sir Tom suffered hefty losses on the big investments he made in housebuilding firms before the market slumped in 2007.

The businessman has also been enjoying more success recently in the retail and technology investment arenas after making losses during the recession.

The West Coast Capital Assets venture that holds some of Sir Tom’s remaining investments in these sectors made retained profits totalling £5.7m in the two years to March 31.