Building firm hit with £2m loss as Covid has impact

APerth-based housebuilder has recorded losses of more than £2 million, while turnover also fell.

A&J Stephen finance director John Webster said the firm was “significantly” impacted by Covid-19.

Mr Webster said sales had been “strong” since reopening in June 2020.

In his report, published alongside the firm’s accounts for the year to March 2021, he said: “Despite these most pressing of circumstances, turnover was maintained at a similar level to the previous year at £15m.

“Notwithstanding this achievement, the economic impact of the pandemic on our market meant we had to impair the carrying value of stock and work in progress.

“As a result, the group returned a pre-tax loss of £2.3m.”

The firm’s revenue for the period was £14.9m, down from £15.5m in 2020.

Its pre-tax loss increased from £625,000 in 2020 to £2.3m.

Mr Webster said the group does continue to operate from a position of strength, with total equity in excess of £20m.

He said that despite the challenges of the financial year in review, the firm has been pleased with the level of interest.

It expects to profit for this year.

Mr Webster said: “Interest from potential customers in our homes remains strong. record a financial

“Sales has outstripped expectations since the end of lockdown and the housing market continues to be buoyant.”

He said A&J Stephen has sold out the first 42-home phase of its Mansfield Park development in Scone.

The firm also has developments in Glenfarg, Inverness and Guildtown, north of Perth.

Interest in those developments has also exceeded expectations, Mr Webster said.

He added the current demand for homes has led to rising material costs and supply chain problems.

Staff numbers remained at 71, with 41 in production roles and 30 working in administration and support.

Mr Webster praised the firm’s staff for their efforts through the pandemic.

He said: “The core of any business is its people and the board would like to thank every one of our staff for their dedication over the last year.”

“Covid is likely to be with us for some time to come but the commitment and flexibility demonstrated this year gives us heart.”

The finance director added: “The current level of demand for new homes is putting significant pressure on the supply chain.”

In light of these issues, Mr Webster said financial predictions for the year to March 2022 have been revised down.

“Our latest projections still anticipate the group returning to profitability,” he said.

OPTIMISM: A&J Stephen says sales have been “strong” since June 2020, despite issues during the pandemic.