Morris Homes reduces losses as it eyes build-to-rent expansion

Morris Homes has reduced its pre-tax losses as it reported higher completions and turnover.

The Cheshire-based housebuilder, in its accounts for the year to 30 April, reported a pre-tax loss of £10m, down on the £15.6m reported for the previous year.

The firm is still in the red despite increasing its turnover 35%, from £171.2m to £232.5m. Its income was boosted by completions increasing from 535 to 667 units and its average selling price rising from £375,700 to £394,000.

The group’s operating profit doubled from £10.3m to £20.5m but its bottom line was impacted by a £5m increase in finance costs to £30m.

Morris Homes, which is increasingly focusing on build-to-rent (BTR) said the increase in debt was driven by the higher working capital associated with developing rental properties.

It said: “The group expects this increased stock requirement, and related costs to reduce quickly during next financial year as these projects progress.”

It added: “BTR is becoming a more important part of the UK market and during the past year we have built relationships with partners in this sector to facilitate more families having access to this tenure of quality homes.”

Morris Homes last month placed 30th in Housing Today’s annual Top 50 Housebuilders list, which ranks firms by turnover.