The Courier & Advertiser (Angus and Dundee)
Fife builder reaps reward of stronger marketplace
PERFORMANCE: Campion Homes see sales and profits spike as activity increases
A significant upturn in private and social housing work saw Fife housebuilder Campion Homes more than double sales to in excess of £30 million last year.
Accounts published at Companies House for the year to June 30 show the group achieved a 109% increase in revenues in the 12 month period – taking sales from £14.57m in 2016 to £30.38m.
Pre-tax profits also spiked, jumping from the £555,000 return generated in 2016 to £2.33m in the most recent financial year.
The bottom line more than quadrupled from £437,654 to £1.86m.
In his directors’ report to the accounts, founder and executive chairman Pete Bell pointed to a stronger market as the reason for the upsurge.
The improvement also followed an undisclosed investment into Campion by the Business Growth Fund in July 2016 that saw Patrick Graham join the board of the group as a non-executive director.
“The principal activity of the company continued to be that of constructing residential houses within the private and social housing markets,” Mr Bell said.
“The results for the year reflect a period of considerable growth for the company.
“Turnover increased to £30.4m, a 109% increase on the previous year.
“This was driven by significant increases in activity in both the private and social housing markets.
“The company continues to create inspiring homes that are designed around individual requirements in both sectors.
“The company has continued to strengthen its balance sheet with net assets at June 30, 2017, of £6.56m.
“The company also has development funding from the Business Growth Fund to help accelerate its building programme across both sectors.
“This funding will enable the company to respond to growth opportunities as they arise.”
Campion brought forward two new developments at Dunfermline and Leven during the year while continuing to develop Laurel Bank at Springfield.
The firm has a total of 163 homes for private sale in the pipeline and is contracted to build a further 291 affordable homes.
Despite its strong growth, Campion – which carried an average of 109 workers last year – was hit by increasing costs.
Mr Bell added: “The reduction in gross margin from 18.6% in FY16 to 17% in FY17 is attributable to continued price increases from suppliers and subcontractors combined with pricing pressures within the social housing market.”
ghuband@thecourier.co.uk