Revenue was 30% down last year
Morris Homes fell to a loss last year after reduced revenue and high interest rates hit its profitability.
In its annual report for the year ended 30 April 2024, the Cheshire-based private housebuilder revealed it had made a £15.6m loss.
This compared with a £7.71m profit in the year prior.
The housebuilder, which works primarily on brownfield development in the North West, Midlands and East of England, said higher net financial expenses of £25.9m, compared with £22.7m in 2023, were partly to blame.
These, the firm said, were caused by a “full 12 months impact of higher interest rates being experienced in the year”.
Revenue for the period stood at £171.2m, compared to £246.6m in the previous year, which it said correlated to a lower level of completions.
The business recorded 535 new build completions, down from 777 in 2023, and 883 the year before.
>> See also: Top 50 Housebuilders 2024
Morris said it had “rigorously sought new opportunities and cost savings both in our building and overhead costs” in order to mitigate the impact of reduced revenue on profit.
“Throughout the year we focused on securing sales through controlled use of incentives and some investor deals, maintaining discipline in order to secure a sustained pick up in interest in our homes from the lows of Q4 2022,” the firm’s accounts said.
Private average selling prices were slightly above the prior year position at £375,700, which was mainly down to a higher proportion of new sales being generated from a new development in Cambridge.
No comments yet