Member News
North East investment company Develop North PLC (Develop North), managed by Newcastle based fund management specialists, Tier One Capital (Tier One) has reported another positive year of trading and is also predicting a bright outlook for growth in 2025.
In its annual results for the year ending 30 November 2024, Develop North has reported that it has achieved a profit of £1.17m, with the company’s Net Asset Value recording a total return of 6.3%.
In this period £9.2m has been deployed into seven projects, with successful exits now totalling 23 since Develop North was founded in 2017.
Develop North is a North East based investment company listed on the main market of the London Stock Exchange and is a leading provider of finance solutions of between £0.5 million and £5million to credible professionals and businesses across the North of England and Scotland.
As a Public Limited Company (PLC), Develop North has the financial strength, credibility and professionalism expected of a business listed on the London Stock Exchange, while also offering the flexibility, creativity and common sense of an approachable, local business.
The company’s objective is to provide investment and alternative finance solutions to professional, credible and capable businesses in the North of England and Scotland, whilst simultaneously generating attractive returns for investors.
Since its inception, Develop North has invested almost £100 million in funding 40 projects across the North of England and Scotland and has helped create over 3,200 jobs with a gross development value of almost £250 million.
Recent successful projects have included a £2.2million, 30-month facility to fund the construction of a new warehouse in Darlington, a £1.1million, 24-month facility to refurbish a hotel and wedding venue in North Yorkshire and a £2.7m residential development in Hexham, Northumberland.
John Newlands, chairman of Develop North, said: “The year under report has proved a successful one for Develop North, despite a testing economic background, with key achievements including an increase in net asset value per share and a rock solid stream of valuable quarterly dividends being paid out.
“Although sentiment has dipped following the Autumn budget, and businesses clearly face additional costs, we continue to have a positive outlook for 2025. This view is underpinned by stable inflation forecasts, improving house prices and government plans to encourage more ambitious housing planning and construction across the UK.
Our core region, the North East of England, is particularly well positioned for growth, which is positive for the the long-term benefit of Develop North and its shareholders. New projects have been, and will continue to be, agreed at very satisfactory rates of interest, with the potential to create not just high-income streams but to permit incremental improvements in the net asset value per share over the medium to longer term.”
Brendan O’Grady, Fund Manager at Tier One, the investment adviser to Develop North, said: “The diversity of the projects we support, from industrial premises to hospitality venues, retail schemes and new home developments, highlights the growing importance of Develop North to credible professionals and businesses who are contributing tangible benefits to the economy of the North East of England and Scotland. We have experienced a positive year, building strong relationships with clients and partners, which is continuing into the current financial year.
“Devolution and a changing investment and development landscape have created real opportunities for a trusted local fund with a focus on the North East and a real depth of knowledge of the local market place.
“The Tier One Fund Management team is now looking to capture exciting growth opportunities in the next stage of our development, as we explore investment opportunities and develop potential new partnerships.”
