Amshold Limited, the commercial real estate company of Lord Sugar and his two sons, has returned to profitability after a challenging period marked by falling property values.
The company reported a pre-tax profit of £932,000 for the year ended June, reversing a loss of £29.1 million on the previous year.
The turnaround comes as the valuation of Amshold’s real estate portfolio showed signs of stabilization. Between July 2023 and June 2024, the value of the portfolio fell by £1.2 million to £85.7 million, a significant improvement on the previous year’s £28.5 million decline due to rising interest rates and market uncertainties.
In its annual report, the company noted: “The market for high-quality investment properties in London is difficult with high interest rates, uncertainty and falling valuations. Although this offers investment opportunities, it also puts pressure on the existing portfolio.”
Amshold Limited, founded in 1985, manages a diverse mix of commercial real estate. Notable assets include a Premier Inn hotel in Brentwood, Essex, an Icelandic supermarket in Leyton, east London, and a Grade II listed five-storey office building on Fleet Street. The portfolio also includes properties such as a McDonald’s in Liverpool, a Tesco Express in Newport and a Barclays Bank in Portsmouth.
Despite the current portfolio valuation of £85.7 million, the properties were originally purchased for £97.2 million, reflecting the wider challenges in the commercial property market in recent years.
In addition to real estate investments, Amshold offers additional services, including accounting and IT support. The company provided £30,000 worth of services to Dr. Leah Limited, a chain of skin clinics founded by 2013 winner of The Apprentice Leah Totton. Amshold also operates a small private jet charter company.
Lord Sugar, 77, founded Amstrad in 1968. The company became famous for its audio equipment and the Amstrad CPC 464, one of the first home computers. Amstrad also produced the first range of Sky television receivers and satellite dishes before selling to the broadcaster for £125 million in 2007. Today, Lord Sugar is widely recognized as the host of the BBC reality series “The Apprentice”.
Amshold’s board consists of Lord Sugar, his sons Daniel and Simon, and long-term financial director Mike Ray. While the company paid dividends of £390m in 2021 and £90m in 2022, no dividends have been paid in the past two years, suggesting an emphasis on consolidating the business amid market fluctuations.