Housebuilder Hill on a high with record turnover
The Cambridge-based Hill Group achieved a record turnover of £583million along with profits of £42.6million in 2019 annual results.
The family-owned developer’s turnover was up 16 per cent year on year, with profits down 12 per cent year on year due to cyclical factors and planning delays, but ahead of budgeted predictions at the start of the year. With net assets just short of £200million and net cash of £66million, a strong balance sheet and capitalisation means the business is poised for further growth through the medium term.
Hill has more than 10,000 homes under construction or in the pipeline, including the Athena development in Eddington, Ironworks in Mill Road in Cambridge, and Marleigh, the new community being created on Marshall land off Newmarket Road.
The group completed 1,800 new homes in 2019, up 16 per cent year on year, of which 1,120 were delivered from private sales and joint venture activities. The secured pipeline of 6,500 homes includes new joint venture partnerships with local authorities, housing associations and private companies.
CEO Andy Hill said: “Yet again the business has delivered a very strong financial performance, which has been a team effort across the group, and we are extremely well placed to see further growth and profitability over the medium term. While the full impact of the coronavirus pandemic is not yet known, we have successfully stress-tested the financial resilience of the business in multiple scenarios.
“As a privately-owned business, we are not subject to the pressures and fluctuations of the stock market, so we can take a long-term view and seize opportunities to build our pipeline and invest in growth areas. We are very much open for business, with several exciting partnerships in the pipeline and we are currently sourcing, and transacting on, new land opportunities.
“Working in joint venture remains at the heart of our business and, as a trusted partner for over 20 years across the public and affordable housing sectors, we will continue to remain at the forefront of this market.”
To commemorate Hill’s 20th anniversary in 2019, the Hill Group Foundation was set up and will provide 200 turnkey, modular one-bedroom homes for homeless people over the next five years in a £12m project. The financial commitment to delivering this initiative remains, despite wider economic conditions, and a prototype unit built using modern methods of construction (MMC) is set to launch later this month.