Iain McPherson, Group CEO

"We are proud to be the market leader in the delivery of high quality mixed-tenure communities. Our Partnerships business works closely with housing associations, public bodies and institutional private rental operators to deliver a balanced portfolio of affordable, private rental and private for sale homes."

Operational highlights

  • In July 2021, the Board concluded that in future, for the benefit of all stakeholders and in order to maximise shareholder value, the Group will focus all its resources on its very successful Partnerships business and create a new division in the Home Counties.
  • The proceeds of realisation of surplus assets of at least £450m will be returned to shareholders via the on-market purchase of the Company’s own shares over the period up to September 2023.
  • In the period we completed the construction of our second modular factory at Bardon, Leicester, which will supply closed panel timber frames to our low-rise developments in the Midlands helping to secure our supply chain, improve quality and speed up production plus achieve more sustainable outcomes.
  • We completed 5,385 homes in the period, up 33% on the prior year and showing a significant recovery from the impact caused by the Covid-19 pandemic.
  • In the period we delivered our 5000th closed panel modular home. The acceleration of modern methods of construction remains a key priority for the business as well as Government and Homes England.
  • We continued to win new Partnerships work with 9,008 new plots secured (2020: 8,369), in addition to 10,435 plots where we have agreed terms on option sites (2020: 3,005). Of these, 4,597 plots were for our newly established regions supporting our double digit volume and profit growth ambitions over the medium-term.
  • We developed a new approach to sustainability that is focused and impact driven. Our approach is underpinned by a range of ambitious targets further details of which can be found on pages 45 to 61 of this report.
  • In October 2021, we launched our Pathfinder report outlining our pathway to achieving net zero by 2030. This is supported by science-based carbon reduction targets which have been validated by the SBTi confirming our commitment.
  • We have made excellent progress in embedding our values launched in November 2020 and are continuing our focus on the social elements of our approach with the launch of our Diversity Equity and Inclusion strategy. To read more see pages 66 and 67.
  • Reported revenue up 54% to £1,371.4m (2020: £892.0m)
  • Reported operating profit of £71.3m (2020: £(5.4)m)
  • Net cash of £41.0m (2020: £98.2m)
  • Basic earnings/(loss) per share 13.8 pence (2020: (0.8) pence)

Adjusted revenue1

Adjusted operating profit2

Adjusted operating margin2

Return on capital employed3

Tangible net asset value4

Plots owned and with planning (# plots)

Adjusted revenue includes the Group’s share of revenue from joint ventures and associate of £154.8m (2020: £96.8m; 2019: £185.7m; 2018: £210.9m; 2017: 183.0m).
2 Adjusted operating profit includes the Group’s share of operating profit from joint ventures and associate of £32.8m (2020: £17.2m; 2019: £46.8m; 2018: £46.4m; 2017: £33.6m) and excludes non-underlying items of £(63.2)m (2020: £(42.4m); 2019: £(17.2)m; 2018: £(15.7)m; 2017: £2.8m).
3 Return on capital employed (“ROCE”) is calculated as adjusted operating profit divided by average tangible net operating asset value (“TNOAV”). TNOAV is calculated as tangible net asset value excluding net cash.
4 Tangible net asset value is calculated as net assets excluding intangible net assets net of deferred tax.

Group performance

As a result of the increase in volume and shift in mix, Group adjusted revenue increased by 54% year on year to £1,526.2m (2020: £988.8m). Reported revenue increased by 54% to £1,371.4m (2020: £892.0m). The difference between adjusted and reported revenue is the effect of the proportionate consolidation of the results of the Group’s joint ventures and associate in the adjusted measure.

Group adjusted gross margin (including the Group’s share of joint ventures and associate gross profit) increased by 430bps to 17.1% (2020: 12.8%). This margin increase was due to a recovery of margins in the Midlands towards target levels as we exited lower margin Westleigh sites and a higher proportion of land and commercial sales. During 2021 the Group recorded Covid-19 costs of £14.8m (2020: £21.6m). Current year costs relate to ongoing social distancing and health and safety measures at our sites and office locations.

Annual report


Sustainability report

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