Housebuilder feels effect of inflation rise

Major Fife housebuilder Campion Homes said rocketing price inflation is bringing “significant pressure” on the business.

The Dunfermline company is building on the former Tullis Russel site in Glenrothes and Crieff, having recently completed a Leven site.

It has also submitted plans for major developments in Meigle, Leslie and Windygates.

Campion Homes executive chairman Pete Bell said the combination of inflation, soaring interest rates and an uncertain economy would impact on the business.

He said: “Like many companies, we have been negotiating our way through a period of rocketing price inflation which continues to put significant pressure on the business.

“Alongside this volatility and increasing interest rates, we expect future results to be impacted while the economy recovers from the long-term impact of Covid-19 and the wider world economic situation.”

Campion Homes recorded sales of £48.5 million for the year ending June 30 2022, compared to £41.8m in 2021.

However margins were impacted by labour and material shortages and “unprecedented” inflation on materials.

Despite the increase in sales, pre-tax profits fell from £2.9m in 2021 to £1.3m.

The business said its “underlying financial strength” and excellent relationships with clients and suppliers, as well as the hard work of staff and subcontractors, has ensured the business has withstood the difficulties of the last two years.

Mr Bell remains optimistic for the company, which had 472 homes

under construction at the financial year end.

He said: “Our pipeline of work is strong and our excellent team will carry on working with our valued partners to deliver the high-quality, energyefficient homes that homeowners and tenants seek.”

During the year the company handed over 132

homes to housing associations and local authority clients.

Forty-four homes were completed at the private developments at Law View, Leven and Linden Meadow, Star, by Glenrothes.

The business is proud of the amount of job opportunities it offers, with 21 apprentices on the books at the year end.

“SIGNIFICANT PRESSURE”: Pete Bell, executive chairman of Campion Homes.