News: YES! Project developer returns to profitability

The developers of the YES! Project in Rotherham have announced their preliminary financial results for the year ended October 31 2009.

Oak Holdings' revenue increased to £761,784 compared to £25,073 in 2008 and the company returned to profitability, recording pre-tax profit of £326,536, compared to a loss of £782,929 in 2008.

After taking over operations in May last year, Rother Valley Country Park has helped the company generate revenues and an approach will be made to the stock market to reclassify Oak into the leisure sector instead of the current property classification.

As reported last month, Oak successfully completed a placing of approximately £1.5m through the issue of new ordinary shares at 5p per share enabling the repositioning of the business.

They also agreed heads of terms have been with Sheffield Steelers, the UK ice hockey team, to build a new multi-purpose sports facility to become the first letting. This will enable the company to embark on the first phase of the YES! Project.

A revised planning application was submitted in January for the renewal of the previous outline plans approved by Rotherham Council in 2007. The application provides for the project to be constructed in phases as pre-letting demand materialises, facilitating a more flexible approach to delivering the largest undercover leisure destination and convention resort in Europe.

Malcolm Savage, Chairman of Oak, said: "The outlook for Oak is a great deal brighter than it was 12 months ago. The repositioning of the company as a revenue generating leisure business, creating value through trading and property investment activities, augurs well for shareholders. The directors are confident that this will enable Oak to take advantage of current market opportunities as they arise, whilst continuing to retain the longer term value of its property development potential.

"Although protracted difficulties in the property market have, in certain sectors, subdued demand, I am pleased to report a recent increased level of tenant interest in the YES! Project.

"The commercial viability of the YES! Project and the group's leisure based projects remain sound and the directors believe that the repositioned group is well placed to take advantage of increasing market opportunities."

Oak Holdings website
Rotherham

Images: Oak Holdings