But private building division maintains steady income
Turnover has dropped 5.9% at Anwyl Group as the housebuilder wound down its partnerships work.
In its results for the year ended 30 September 2024, the Welsh builder reported turnover of £191.3m, which was a drop on the £203.3m recorded the year prior, but “in line with the group forecasts”.
Turnover in Anwyl Homes, the private housebuilding division, was roughly steady, and its completions rose 38% to 660 plots.
However, turnover in the partnerships division dropped from £21.7m to £7.9m.
The group made a strategic decision to stop pursuing new contracts with housing associations after a review of its risk profile in June 2022.
The partnerships business has continued to build out its existing schemes, with the majority reaching completion by Spring 2024.
According to the report, the division has faced “persistent challenges in securing quality subcontractor labour” which have “led to delays in the final stages of contracts, making it increasingly difficult to meet build programme targets.”
The fixed income nature of the division’s contracts also meant it was exposed by cost increases of recent years, resulting in an average gross loss of 0.7% on its developments.
>> Read more: Profit and turnover down at Anwyl Group as inflation bites
Its only remaining project is scheduled to complete in early Spring 2025.
Pre-tax profit in the overall group stood at £10.6m, down slightly from £11.6m.
Net assets increased to £110.1m at the end of the year, from £104.5m, primarily driven by the reinvestment of profits generated in the year.
For the year ending September 2025, the group forecasts private completions in excess of 587 units, which it said takes into account the “impact of reduced consumer confidence” influenced by “fluctuations in the financial markets affecting the housing development sector”.
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