Welsh housebuilder moves away from partnership deals with housing associations
Welsh housebuilder Anwyl Group has reported a 23% drop in pre-tax profit, citing inflation.
The group, which has housebuilding and partnerships divisions, reported total pre-tax profit of £14m for the year to 30 September 2023, down on the £18.4m posted for the previous year.
Its turnover also fell 6.9%, from £218.1m to £203.3m over the same period, while its operating profit dropped from £20.5m to £18.1m.
It said: “This is due to build materials and subcontract labour cost increases experienced in past years as a result of [the] Covid-19 pandemic, Russia-Ukraine war and cost of living crisis.
“This is now stabilisng but not yet significantly reducing.”
Anwyl said its Anwyl Homes division has been able to offset a “significant” amount of cost due to riing house prices, but said its Anwyl Partnerships division’s build programme has been hindered by the availability of subcontract labour.
Anwyl Homes completed 636 homes in the year, down 16.6% on the 763 figure for the previous year, meaning its turnover from new home plot sales dipped 1.4% to £178.8m
The housebuilder’s partnerships arm saw a 39% fall in turnover, which it said was due to half of its eight schemes with housing associations coming to an end, along with rising costs on fixed income contracts. Its gross loss average on partnerships contracts rose from 2.3% to 3.6%.
Anwyl said it decided in June 2022 not to enter any new partnership deals with housing associaitons after reviewing “risk attributed to this type of contract against the gross profits achievable”
Anwyl was ranked 31st in Housing Today’s Top 50 Housebuilders last year, which lists companies by housing turnover.
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