New CEO Michelle Percy said interim results “reflect a business that has spent the past six months investing in its future”

North East property investor Develop North says it is in a strong position despite challenges facing listed investment companies.

New interim results for the firm – which now has a portfolio valued at nearly £23m – shows its net asset value total return fell 0.88% in the six months to the end of May, though bosses chalked that up to one-off costs associated with the launch of Develop North’s new investment prospectus and the beginning of a new investment strategy, along with changes to its management team. That included the hiring of former Newcastle City Council director of investment and growth, Michelle Percy, as the company’s CEO.

Ms Percy said the results reflected investment in Develop North, which is advised by Newcastle wealth managers Tier One Capital. The firm’s board said the moves were essential for growth, and also as indicators of its confidence in the region, which it says is benefiting from public and private sector investment, regeneration activity and increasing recognition as one of the country’s most attractive regions for development.

The half year income statement for Develop North shows an increase in total revenue to £1.26m in the six months, compared with £1.03m in the same period last year. But there were pre-tax losses of £179,000 in the period, compared with a pre-tax profit of £494,000 in the first half of 2025. Pre-tax profit before finance costs was £90,000, compared with £575,000 previously.

It came as Develop North entered its 10th year as a listed company, and following shareholder approval of its expanded investment policy allowing it to back residential real estate, commercial real estate and real estate projects. Two successful exits were completed in the period including from industrial and trade counter development Whitley Court at Leeming Bar Business Park, and from the backing of Sunderland’s former Farringdon Police Station into retail units.

John Newlands, chairman of Develop North PLC, said: “Develop North enters this next phase with a strengthened leadership team, a broadened investment strategy and an established platform from which to grow. We expect to complete our first investment under the revised policy during the current financial year and continue to see encouraging levels of activity across our pipeline.”

Michelle Percy, chief executive officer of Develop North PLC, said: “These interim results reflect a business that has spent the past six months investing in its future. We’ve evolved our investment strategy, strengthened the leadership team, welcomed new shareholders and continued to recycle capital through successful exits, all while maintaining the disciplined approach that has defined Develop North since launch.

“Our purpose remains unchanged. We want to provide investors with access to attractive regional real estate opportunities while supporting developments that deliver regeneration, create jobs and contribute to long-term economic growth.

“As we enter our tenth year, we’re in a strong position. We have an experienced team, an expanded investment mandate, a healthy pipeline of opportunities and a portfolio that continues to perform well. We’re excited about building on that momentum during the second half of the year and continuing to create long-term value for both our shareholders and the regional economies in which we invest.”