Hill announces record turnover, strong balance sheets and solid profits in 2019 Annual Results!
We are delighted to announce our 2019 Annual Results. We have delivered a robust set of results for 2019 and our strong balance sheet and capitalisation means the business is poised for further growth through the medium term.
We posted a record turnover of £583 million, up 16% year on year, with profits of £42.6 million, down 12% year on year due to cyclical factors and planning delays, but ahead of budgeted predictions at the start of the year. We completed 1,800 new homes in the year, up 16% year on year (1,550 completed in 2018) 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 as well as developments within the new South West region.
Yet again the business has delivered a very strong financial performance, which has been a team effort from 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 on the wider economy is not yet known, we have successfully stress tested the financial resilience of the business in multiple scenarios and we are well capitalised with a robust balance sheet which is demonstrated by our auditors signing off our accounts during these uncertain times. 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 at times like this 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 the 20th anniversary of the business, a newly formed subsidiary, The Hill Group Foundation, is delivering a ground breaking philanthropic initiative of gifting 200 turn-key modular homes for homeless people over the next five years. Known as Foundation 200, the £12 million project will build the one bed, one person homes on surplus plots of land, such as former garage sites, located across the company’s operating area and will be delivered via local authority, housing association and local charity partners. The financial commitment to delivering this initiative remains, in spite of the wider economic conditions, and a prototype unit built using Modern Methods of Construction (MMC) is set to launch later this month.