Campion Homes issues note of caution amid positive financial results
Dunfermline-based housebuilder Campion Homes has reported positive financial results for the 12 months to 30th June 2021 (FY21) amid trading conditions that continue to be challenging.
However, the results for the year were boosted by private house sales deferred from the prior year following the Covid shutdown from March to June 2020.
Announcing its full year results, the builder reported revenues of £41.8 million and pre-tax profit of £2.9m. Revenue for the year and gross margin were boosted by £4.6m of carry forward house sales from FY20.
During the year, as experienced by all housebuilders, the company saw sales rates at its private developments rise to levels above those experienced pre-pandemic. This has resulted in strong forward sales coming into the next financial year. Whilst these strong sales have been positive news, this has put additional pressure on land price and availability and this remains a constant struggle for the housebuilding industry.
Campion has secured planning for their next development at Oak Bank, Glenrothes and will commence construction on this site in the new year.
Strong partnership relationships with its affordable housing partners remains a key focus of the business. Campion’s approach of identifying suitable land opportunities and working with all partners to bring them forward for development is strengthening these relationships further.
During the latter part of the financial year significant material and labour price inflation was experienced. These challenges remain and are putting continuous pressure on fixed price contracts margins and making recruitment of high-quality labour more difficult. Forecasts for the current year anticipate margins to be negatively impacted by this significant price inflation.
Reflecting on the year, executive chairman Pete Bell said: “We are delighted that Campion has managed to navigate its way through the very difficult working environment this year and report excellent sales rates at our private housing sites. The company recognises the exceptional response that its employees and subcontractors have given again this year as the Covid-19 issues have remained, combined with the significant increase in demand for new housing. Once again Campion has demonstrated that its people, relationships and the quality of its product are integral to the success of the business.
“Like all in the industry the company is having to cope with rocketing price inflation and this continues to put significant pressure on the business. Lack of material availability is also causing considerable scheduling difficulties. However, our pipeline of work is strong and we will carry on working with our partners to deliver the high quality, energy efficient homes that homeowners and tenants seek.
“We’re excited to be leading on energy efficient innovation in housebuilding in Fife with our 85-home development for Kingdom Housing Association in Glenrothes adopting the local District Heating Network and a 30 home Passivhaus development soon to start in Gauldry.”