One Heritage Group plc: Trading Update

15 July 2022

ONE HERITAGE GROUP PLC

Trading update

One Heritage Group PLC (LSE: OHG) (“One Heritage”), the UK-based residential developer focused on the North of England, is providing an update on the progress of projects, its investment in its associate One Heritage Complete and changes to its senior leadership team. In the Interim Report for the six months ended 31 December 2021, published 28 March 2022, the Company provided a summary of the existing development projects and an update is below:

 

Project	Location	Residential units	Commercial units	GDV (£m)	Previous Expected Completion	Expected Completion
Lincoln House	Bolton	88	0	10.0	Q2 2022	Q3 2022
Churchgate	Leicester	15	1	3.2	Q2 2023	Q4 2023
Oscar House (Chester Road)	Manchester	27	0	6.3	Q3 2022	Q4 2022
Bank Street	Sheffield	23	0	3.9	Q3 2022	Q4 2022
St. Petersgate (Plus House)	Stockport	18	1	3.1	Q4 2022	Q4 2022
Seaton House	Stockport	30	0	5.6	Q4 2023	Q4 2023
Victoria Road	Eccleshill	24	0	6.5	-	Q3 2024
		225	2	38.6

 

Planning

The Group has two planning applications awaiting approval, namely Churchgate, Leicester and Seaton House, Stockport. It was expected that a decision would be forthcoming in Q1 2022 for Churchgate, Leicester but due to unprecedented pressures on the planning department, a further extension of time until the end of July 2022 has been agreed. An application for Seaton House, Stockport was submitted in June 2022 with a decision expected later this year.

Construction

The Group continues to experience industry-wide challenges including mounting cost pressures in respect of building materials and sub-contractor labour shortages. This, in addition to fire safety related design enhancements, has resulted in further construction delays to the Lincoln House, Bolton, Oscar House, Manchester and Bank Street, Sheffield developments.

Completion of Lincoln House, Bolton is forecasted towards the end of this month and the Group expects to welcome tenants from August. Oscar House, Manchester, Bank Street, Sheffield and St. Petersgate, Stockport are all now expected to complete later in Q4 2022 / early Q1 2023. Progress images of each development are published on the Group’s website https://www.oneheritageplc.com/.

Sales

The Group reported a reservation from an institutional fund for 47 units at its Lincoln House, Bolton development in its Interim Results to 31 December 2021. The Group has made the decision to re-market these units following delays by the fund to contractually commit. The Group anticipates generating a further £600,000 of additional value by selling these units individually, which is expected to increase the Gross Development Value (GDV) from £9.4 million to £10.0 million. This increase in value is due to price appreciation in the area from when the reservations were originally made and the sales price now.

Four units in total remain unsold at the Group’s Oscar House (27 Units), Bank Street (23 Units) and St. Petersgate (18 Units) developments.

Marketing will not begin on Seaton House, Stockport and Churchgate, Leicester until the Group has finalised the design and obtained planning consent.  Additionally, further to the announcement on 12 July 2022 of the acquisition of development land at Victoria Road, Eccleshill, it is expected that marketing will begin later this year.

One Heritage Complete

The Group has agreed to sell its 47% shareholding in One Heritage Complete Limited (“OHC”) which will generate net proceeds of £42,500, after legal costs, with potential further proceeds totalling £200,000 if certain performance criteria are met. The Group impaired the value of OHC to zero in the financial year end 30 June 2021, following the insolvency of two of its subsidiaries, One Heritage Maintenance Limited and One Heritage Design Limited.

As reported in the Interim Report for the six months ended 31 December 2021, the services previously provided by OHC are now being provided by the Group, through One Heritage Property Services Limited and One Heritage Construction Limited.

Senior Leadership Team 

Mr Luke Piggin has tendered his resignation as Finance Director from the Group, and he is expected to leave the business at the end of August 2022. Mr Piggin was hired in August 2020 and was part of the team which delivered the IPO and the first Corporate Bond. The Group would like to thank Mr Piggin for his contribution and to wish him well for the future. A selection process for a replacement has commenced and it has been decided based upon the calibre of candidates interviewed that this will be a Main Board appointment to help drive the strategy and continue to develop the finance function in the business. Similarly, a selection process has commenced for two other senior roles, namely Head of Projects and Head of Acquisitions.

 

Jason Upton, Chief Executive of One Heritage Group commented: “The new senior hires we are in the process of making will support our strategic objectives of successfully delivering our development projects, recruiting exceptional talent and growing the pipeline of new development opportunities.” 

 

Contacts

One Heritage Group plc

 

Jason Upton

Chief Executive Officer

Email: jason.upton@one-heritage.com

 

Luke Piggin

Finance Director

Email: luke.piggin@one-heritage.com

 

Hybridan LLP (Financial Adviser and Broker)

Claire Louise Noyce

Email: claire.noyce@hybridan.com

Tel: +44 (0)203 764 2341

About One Heritage Group

One Heritage Group PLC is a property development and management company. It focuses on the residential sector primarily in the North of England, seeking out value and maximising opportunities for investors. In 2020 One Heritage Group PLC became one of the first publicly listed residential developers with a focus on co-living.

The Company is listed on the Standard List of the Main Market of the London Stock Exchange, trading under the ticker OHG. 

For further information, please visit the Company’s website at https://www.oneheritageplc.com/.