Rigby Group Poised for Further Investment
Rigby Group (RG) plc (Rigby Group”), the holding company for the business investments of the Rigby Family, has published its results for the year to 31 March 2014.
The Group, which has made a number of acquisitions in 2013 and 2014, comprises six core divisions: technology, airports, hotels, real estate, financial services and aviation.
- The technology businesses are principally held by the SCC EMEA Limited group and trade under the “SCC” brand.
- The airport businesses are held by the Regional & City Airports Holdings Limited (“RCA”) group.
- The hotels businesses are held by the Eden Hotel Collection Limited group and trade under the “Eden Hotel Collection” brand.
- The real estate businesses are held by the Rigby Group Property Holdings Limited group, and trade under the “Rigby & Rigby” brand. This division also has a 50% interest in Coventry & Warwickshire Development Partnership LLP.
- The financial services businesses include investments in cash and structured products held by the ultimate holding company; a recently established private equity business; and leasing businesses which will trade under the Blu Finance brand in the near future.
- The aviation businesses are held by the Patriot Aerospace Limited Group, trading under the “British International Helicopters” brand.
- Consolidated revenues of continuing operations of £1.71b (2013: £1.51b)
- Group pre-tax profit of continuing operations before exceptional items of £15.1m (2013:£0.2m)
- Group total pre-tax profit of £9.6m (2013: £108.8m), although 2013 included exceptional profit on disposal of discontinued operations of £130.4m
- Year-end net cash of £123.7m (2013: £196.2m)
- Year-end net assets of £257.8m (2013: £283.7m)
- EBITDA (before exceptional items) for the continuing operations of £33.2m (2013: £19.2m)
- Dutch SCC operations incurred operating loss of £3.3, (2013: £7.0m). Dutch operations disposed of in June 2014.
- Following the successful disposal of its European technology distribution businesses in November 2012, the group has been very active in the M&A markets across its portfolio interests.
- Following the disposal of its Dutch operations, SCC is now a single focused technology business with a clear strategy for services proposition development. In February, 2014, SCC acquired the UK’s leading independent managed print services group M2. An investment fund of £100m earmarked for strategic acquisitions, of which M2 represented the first acquisition and further acquisitions planned for 2014.
- The airports division now firmly established with three owned assets in Coventry Airport, Exeter International Airport (acquired June 2013) and Norwich International Airport (acquired post year end in June 2014). The Group also operates Blackpool International Airport and Derry airports for their owners, together with the Daedalus airfield for the Homes and Communities agency. Collectively, the Group transits 2.2m passengers each year.
- The hotels business currently owns nine luxury hotels in the Midlands and South West. In January 2014, the Group acquired a site in Salcombe with plans to develop a £15m contemporary 50 bedroom hotel. Bovey Castle was acquired post year end in June 2014 and is now the Group’s flagship hotel with 64 bedrooms and 14 lodges all located within 275 acres near Dartmoor.
- The real estate division continues to develop its two core businesses: super prime London residential development; and commercial property development. Rigby & Rigby
- has a strong market presence in London. During the year, the business worked on 12 residential projects and, post year end, completed its award winning St Saviours project for a client, which was subsequently sold for £41m by the client.
- Within the airports division, the Group now has in excess of £500m of commercial property development opportunities, with £350m Gross Development Value planned at the 4.1m sq. ft. “Gateway” development surrounding Coventry Airport; an approved £100m scheme surrounding Norwich Airport; and further discrete development schemes totalling £50m at Coventry Airport and Exeter Airport.
- At the year end, the group had invested in excess of £70m with two private banks, which generated returns in excess of £1.1m. The group will also develop its existing technology Leasing Services businesses in the UK and France which will be rebranded as Blu Finance with the intention of becoming a leading force in the provision of leasing backed technology managed services. The group has also announced its intention to launch a £40m private Equity fund, managed under the Rigby Equity Investments brand.
- The aviation division completed the major acquisition of British International Helicopters in May 2013. This positions the group’s commercial helicopter business as a significant provider in the commercial helicopter market with major clients including Ministry of Defence, QinetiQ and BBC. Subsequent to year end, the group acquired the Capital Air Charter group.
Sir Peter Rigby, Chairman and Chief Executive, commented:
“The group is undertaking the most significant transformation in its history. We have ambitious projects in every division to transform Rigby Group into a dynamic private business, appropriately diversified and market leading in its capabilities. In the coming years, we see significant opportunities to further increase the profitability of the group across all divisions.
“The group remains in a very strong position, with a net cash balance at 31 March 2014 of £123.7m to support both the organic and acquisitive growth planned for our divisions.”
Steven Rigby, Group Chief Operating Officer, commented:
“We have consistently spoken of our desire to grow the Group through acquisitions and we are delivering on that promise. Further funds are available and we fully expect to expand the Group over the next 12 months.”