The Review  Bruntwood’s Annual Report 2016

Reaching new

2016 was a record year for Bruntwood, with more than £1bn of property under its ownership for the first time in its 40-year history and a huge development pipeline still to come in 2017.

Activity in the year was focussed on major construction works in all of Bruntwood’s regional cities, with over £86m invested in the development of both new and refurbished space. With a gross development pipeline of £1.4bn and 1.8m sq ft of development planned between now and 2020, the business continues to go from strength to strength.

Keeping the faith

Chris Oglesby, Chief Executive

In a world full of uncertainties, Chief Executive Chris Oglesby places his trust in the resilience of the UK’s city regions and the opportunities ahead in the science and technology sectors.

Sudden shocks, like the ones we have experienced in the last year, cause you to re-evaluate your strategy and stress test it against all possible outcomes. With that done, you emerge with a reinforced and reinvigorated belief that you’re on the right track for the future.

For Bruntwood, the opportunity to take a pause and thoroughly interrogate our future plans has convinced us that the path we have set out is robust. We are confident that both our strategy and plans are nimble and flexible enough to adapt as necessary as we navigate through the potentially choppy waters ahead.

In 2016, we continued to do what Bruntwood does best – deliver real value for our customers, our partners and our communities. We have increased occupancy levels across our portfolio, letting over 860,000 sq ft over the year, and we have continued to invest in the quality of both our product and our services. We have made a capital investment of £65m in our commercial portfolio, either upgrading buildings we already own, or developing new ones. Over the next three years we anticipate operating with around 20% of our portfolio in development at any one time.

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The key stats for 2016:

Net worth
Value of fixed assets
Profit before tax

Highlights of 2016

There’s been plenty to smile about in 2016, from Bruntwood’s first residential conversion to the greening of our urban environments.

Performance across the regions

With the drive to rebalance the UK’s economy away from the South East, Bruntwood has an important role to play in the success of the cities and places where it operates.

Use the links below for details of our business performance and notable developments in our key regional markets.

A focus on our people

Bruntwood’s business has always been built on the strength of its people and a renewed focus on supporting their growth and development is one of the core strands of the company’s business strategy.

Many members of the team begin their career with the company either fresh from university, or increasingly via a variety of work placement and apprenticeship programmes.

Playing our part

Economic growth is only one measure of the success of a city. How that community works – both socially and culturally – is key to having a real impact on the lives of the people who live there.

At Bruntwood we have always believed that good business is a force for good. For us our involvement has been incredibly diverse and has ranged from supporting major arts and environmental initiatives through to encouraging our staff to volunteer through our Bruntwood Cares programme.

For over 20 years Bruntwood has pledged to contribute 10% of our annual profits to cultural and charitable causes. But we don’t just donate the money; we also get actively involved in how it’s used to deliver real value, through the work of both Bruntwood and the Oglesby Charitable Trust. By using our commercial expertise and our leadership, we make lasting connections across our communities.

Our part in numbers:

Proportion of annual profits donated by Bruntwood and the Oglesby family
Total value of fundraising, sponsorship and charitable activities in 2016

Reasons to be cheerful

Kevin Crotty, Chief Financial Officer

2016 was another record year for activity across the Bruntwood Group and, with a strong pipeline of development and buoyant occupational demand, our sights are set on breaking records again in 2017.

In last year’s Annual Review I professed my belief that the next 3-4 years will be some of the most exciting in the company’s history and, despite the turbulent events of 2016, nothing has happened to change that view. Once again, we can report another successful year of growth, with net worth increasing by 16% to £473m: a great achievement in a year where property yields have remained relatively flat.

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Download our full financial results

Fixed assets: +12% £1.013bn £1bn £900m £800m £700m £600m 2012 2013 2014 2015 2016
Profit before tax excluding revaluation movements: +46% £22.5m £25m £20m £15m £10m £5m £0 2012 2013 2014 2015 2016
Net worth: +16% £473m £500m £400m £300m £200m £100m £0 2012 2013 2014 2015 2016
Turnover: +9% £118m £120m £110m £100m £90m £80m £70 2012 2013 2014 2015 2016

Founder's footnote

Michael Oglesby CBE DL

The big issues of our time are without doubt the major uncertainties that have been caused by Brexit and the changes that Donald Trump’s election has made to our wider world.

As time passes, however, the original shock of both these events is being somewhat tempered by the positives that are starting to emerge and opportunities that are arising. That is not to say that the belligerence of Russia, the uncertainties surrounding China’s intentions and the insanity of the warring factions in the Middle East are issues that are any nearer resolution.

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