Regional housebuilder Beal Homes has reported a “strong performance” for 2022, underlining confidence in navigating wider economic challenges.
The Hessle-headquartered company’s turnover is up 36 per cent from £52.8 million to £72.1 million - topping the pre-Covid high of £60 million - and while margins were squeezed, it remains focused on its ambition to build 400 homes a year. Completions were up almost 30 per cent from 224 to 291 in the calendar-aligned period, with the average sale price increasing from £217,764 to £283,858.
And while profits increased from £5.6 million to £6.8 million, the 21.7 per cent increase was a distance behind the top line uplift, underling the impact of cost increases.
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In his report accompanying the results, chief executive Richard Beal said he was delighted with the performance against a backdrop of challenges to the UK housing market.
Referencing the Kwasi Kwarteng ‘Growth Plan’ during his brief tenure as Chancellor under the similarly short Prime Ministerial reign of Liz Truss as a turning point, Mr Beal said: “Following the mini budget announced in September 2022, the housing market has experienced renewed levels of uncertainty as interest rates and inflation continue to increase, affecting both mortgage affordability and customer confidence. Despite these challenges, the company has delivered excellent results during the year, increasing turnover by 36.43 per cent to £72 million.
“Whilst there was a decline in the quarter four 2022 rate of sale, the first green shoots of recovery have already been seen moving into the new financial year. Whilst 2023 will prove challenging for all housebuilders, early positive enquiry levels indicate that customer demand remains strong across all sites. This is in no smalI part due to the reputation Beal Homes has established regionally, with customer choosing to place their confidence in a local brand they know and can trust.
“Given these early signs there remains a cautious optimism that the housing market will continue to improve moving into the second half of 2023.”
A pipeline of more than 6,000 plots is up more than 1,500 on the previous year’s figure too.
On margins, Mr Beal said build cost inflation continues to be felt, so too the increased cost of borrowing. “Despite these factors, financial forecasts remain positive, lending covenants continue to be met comfortably and strong cash reserves and a robust balance sheet mean the company is well placed moving forward,” Mr Beal said.
Now in its 55th year of trading, the second-generation firm started the new financial year with the opening of its £5.1 million new head office. The state-of-the-art site sits opposite the previous base, on the southern side of Bridgehead Business Park. It closed with Mr Beal named Yorkshire's Property Personality of the Year.
He said: “The completion of the company's bespoke 19,000 sq ft head office should help provide a platform for future growth, incorporating new technologies and an expanded design lounge where customers can work alongside expert designers to create their ideal home. These facilities also provide for increased staffing in a modern and eco-friendly environment, helping the business source and retain the very best regional talent.
“The company retains a long term ambition to deliver 400 high quality, bespoke homes per annum and has secured or has under control a number of prime development siles to achieve this target. The company's land bank remains in excellent health with 6,679 plots under either contact or option to facilitate future plans for sustainable growth.”
Employee numbers increased from 155 to 176 in the period, with pride at having 21 apprentices on the books stressed.
Further highlights included the appointment of construction director Andrew Devine, retention of the Home Builders Federation’s Five Star rating for a third successive year - with all staff, suppliers and subcontractors thanked for helping deliver such standards - as well as £72,094 - one per cent of the year’s turnover - committed to community activities and organisations.
