Bloor Homes’ profit declines 9%

The UK’s largest non-listed housebuilder has reported a decline in both profit and turnover as it responds to “challenging market conditions”.

In its latest financial results, Bloor Homes reported pre-tax profit of £287m, a decline of 9% compared with £318m the previous year.  In the year to 30 June 2023,  it also recorded gross profit of £350m, down 7% from £380m the previous year. Overall profit was £217m, down from £255m in 2022.

Turnover was down slightly at £1.34bn in 2023, compared with £1.37bn last year. A note on the accounts remarked that turnover and profit before tax have both decreased since 2022 “despite selling additional plots.”

The Derbyshire-based housebuilder said the decrease has been driven by a combination of “demand-side and supply-side impacts”. 

It explains these include higher mortgage costs and cost inflation on building materials. 

“Current market conditions are challenging in the housebuilding industry with both inflation and interest rates eroding the disposable income of our customers, impacting immediate demand.

”Our cost of sales and overheads have also increased due to inflation,” Bloor company director Dinesh Ishwerlal Khushalbhai Mehta, writes in a note on the accounts. 

>>See also: Berkeley halts investment in new development due to planning and regulation concerns

>>See also: Reforming planning: one way to solve the housing crisis

“[We have] mitigated the effects of the market conditions by ensuring investment in land and work in progress as appropriate to the level of sales and expected market conditions.” 

The housebuilder sold 4,252 plots this financial year, an increase of 11 plots compared to 2022 (4,241 completions). 

Bloor’s current net valuation of assets stands at £1.5bn, compared to 2022’s £1.29bn.

John Bloor, who owns the housebuilder along with Triumph Motorcycles, is frequently described as the housing sector’s richest person. He ranked 54th in the most recent Sunday Times’ Rich List, with a stated wealth of £3.49bn.