Allison Homes reports £4.9m loss as it eyes partnerships shift

Allison Homes has reported a loss of £4.9m

The Peterborough based housebuilder reported the loss in its accounts for the year to 30 September.

The business, formerly known as Larkfleet, said that the losses include £6.8m in interest costs and £2m linked to the revaluation of a 2% interest rate cap.

“The economic conditions during the year were tough for many in the housebuilding sector, with high rates of inflation diving up costs of labour and materials and high rates of interest decreasing the demand for mortgages”, the company said.

“The directors remain confident that the group will return to profitability as it continues to implement its five-year plan and inflation and interest rates begin to fall.”

Allison carried out some restructuring to consolidate its central and eastern regional arms into one office in Peterborough. “The directors have assessed the underlying causes behind the losses and have encacted plans to address these, including the group restructuring,” it said.

The group however increased its turnover by 7.4%, from £136.1m to £146.2m, and completed 633 homes in the year, up 13% on the previous year.

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Allison doubled its partnership completions – defined as homes sold to a landlord - year-on-year, from 78 to 157 and said this is part of a longer-term strategy.

“The group continued to shift its focus towards partnership revenue during the year and will continue to do so in 2024 and beyond. Although partnerships have a lower margin than open market sales, the risk is much lower as the proceeds are received earlier”

Allison made a £15.4m the previous year due in part to losses on disposal of businesses not acquired by US investment giant Pimco when it bought the housebuilder in 2021.