Avant Homes bullish as annual profits rise 43%
The company, which is active in Scotland’s central belt, the north of England and Midlands, is working to a five-year target of more than doubling output to 4,000 homes per year by 2023.
Core operating profit rose 43% to £65.9m (FY17: £46m) on revenues up 21% to £447m (FY17: £369m).
Colin Lewis, chief executive (pictured), said: “FY18 was a landmark year for Avant, as we delivered another record performance across the board. The continuing health of housing market conditions in the Midlands, the north of England and the central belt of Scotland where we operate and the continued buoyancy of our mid-market offering supports our plan to ramp up our growth targets.
“We remain committed to investing in land in our key Northern regions, exemplified by our excellent land supply, and have made positive progress optimising our efficiencies and increasing our margins.
“Our product range continues to evolve to cover a larger portion of the UK housing market and customer demand for our aspirational homes is increasing.
“We welcomed the findings of the Letwin Review, which completely exonerated housebuilders in relation to accusations of “landbanking” while also highlighting the importance of market absorption rates and of addressing the skills shortage the industry currently faces.
“For the last 18 months we have been developing our strategy of operating dual sales outlets from one site, focusing on the more efficient use of capital and improving the absorption rate, which is precisely the issue identified by Letwin.
“We also look forward to working with new housing minister Kit Malthouse and hope that he shares our long-term approach to building the homes that the UK badly needs.
“Overall, our Northern UK markets remain supportive, and we have begun our new financial year strongly as we build towards our intention of becoming a £1bn turnover business.”