Top 20 UK housebuilder sees profits rise to over £31 million, up 69% annually
Hill, the WhatHouse? Housebuilder of the Year 2015, has revealed a huge leap in annual profits, reflecting the housebuilder’s growing status in the residential market. Hill’s pre-tax profits grew to £31 million, a 69% increase on the previous year, while turnover increased by 18% to £304 million in 2015. The housebuilder’s net worth increased to £74 million from £51 million in 2015.
Hill built over 1,500 new homes during the year across London and the South East, with an average sale price of £470,000. The award-winning housebuilder has grown its pipeline to over 2,600 homes, which will see sales revenue of £1.1 billion. The expanded pipeline follows the extension of a £150 million revolving credit facility with a number of major lenders at the end of last year.
Strategic partnerships have been an important part of Hill’s success in the past year, with major joint venture projects delivering significant returns for the company and partners. Hill is increasingly recognised as a partner of choice for housing providers, local authorities and landowners across the South East, and will be looking to establish more innovative joint ventures in the year ahead.
Andy Hill, Chief Executive at Hill, commented: ‘It’s been another phenomenal year of growth for us. We’re now recognised as a major player with a track record of success in producing distinctive, high quality homes, and we have a growing reputation as the partner of choice for joint venture projects.
‘It is no secret that the country is facing a housing shortage, but the growth that we have seen is more than a simple demand and supply equation. We have been able to successfully build homes which are exactly what the local market is looking for, whether it’s Help to Buy starter homes or luxury apartments for downsizers. Almost half of our completed projects were outside of London and both Cambridge and Oxford are growing markets for us.
‘It is a testament to the hard work of all of our staff that we have been able to achieve these results. Across the business there is a real sense of momentum as we look towards 2020 and implementing our new five year strategy for growth, which will see a significant increase in capacity through recruitment to meet our growing pipeline.’
Alongside its annual results Hill has also unveiled a new five year strategy for growth, which will see the firm increase the number of homes it completes each year to in excess of 2,500. The housebuilder has also set a target to grow turnover to £850 million and profits to £90 million by 2020.
Hill is also planning to substantially increase its number of employees to in excess of 500 in the next two years in order to fulfil its growth plans.