The 2007 profit is down on the previous financial year (£2.83m in 2006) but turnover increased, due mainly to EDI’s share of joint-venture sales.
Commenting on the figures, Gordon Mackenzie, Chair of The EDI Group Limited (EDI), said: "The last period of trading has demonstrated EDI's resolve and ability to seek out new opportunities, ensuring that we're well placed to weather current market conditions.
"Looking forward - and despite those difficult market conditions, we can be reasonably optimistic. A recent review of EDI by our shareholder, The City of Edinburgh Council, has reaffirmed the view that we remain a key vehicle for developing the city's assets.
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"We expect that the relationship with the Council will provide EDI with further opportunities for development in the year ahead."
EDI made a significant profit (£1.49m) on the sale of investment properties, largely as a result of the disposal of the A1 Industrial Estate and Starlaw Business Park by Edinburgh Industrial Estates Ltd, the company’s joint venture with J Smart & Co (Contractors) plc.
The company's total reserves were reduced by two main events: the final dividend instalment of £8.85m from the 2006 equity release programme to EDI's shareholder - The City of Edinburgh Council - and an unrealised loss on revaluation of properties of £4.1m reflecting the correction in property values across the sector.
A new group funding facility was tendered and secured, providing the company with improved margins, ease of administration and £70m of funds to deliver planned projects.
On the development side, EDI is busy, having lodged planning applications for a new clubhouse for community use at the Phoenix Club, Harrison Gardens and for the restoration of Lamb's House in Leith. Both these small projects should be on site in Spring 2009.
The Annual Report also records the significant contribution to the company from Ian Wall, who stood down as Chief Executive in April 2008.
EDI continues to use Triple Bottom Line reporting to assess its performance against a number of environmental, social and economic factors and its successes in this area are highlighted in an appendix to the report.
(GK/JM)
