National contractor United Living has reported record margins for 2016/17.
United Living’s margin is now 5.3% (up from 2.3%) meeting a 2020 target set by the executive team. Turnover was down for the year at £181m compared to £220m last year. However, profits (EBITDA) rose by 86% to £9.5m (from £5.1m reported in 2015/16).
The future for United Living appears positive with a secured forward order book exceeding £720m, a record for the business.
Ian Burnett, chief executive of United Living said: “We have demonstrated resilience in our second full year of operation; a period when our customer base of Registered Providers has had to deal with significant changes to their own business plans following the cuts to housing rents. Given this context, I am delighted that we have been able to deliver a turnover of £180m this year.
“We had set ourselves a 2020 target to increase our EBITDA to 5% and we have already exceeded this which is outstanding. It is testament to the innovative way in which we work and the value that we continue to add for our clients across the UK.
The company is now forecasting growth to £250m for 2017/18 and has indicated it has already secured more than £230m of this. Ian Burnett continued, “As a group we are now working on a wide variety of projects from bungalows to floor tower blocks. We are intensifying our focus on London and the South East as this is where there is a high demand with Sadiq Khan committing to the building of around 20,000 affordable homes in London alone each year, over the next four years. We also continue to invest and develop our partnerships in the regions, supporting efforts to bolster future supply with initiatives such as the Greater Manchester spatial framework.”
United Living has recently been appointed to the Homes and Communities Agency DPP3 Framework and is preparing to begin new partnerships with local authorities and central government as a result.
Other recent contract wins include regeneration projects across the country such as Pollards Hill Estate (Merton) in partnership with Moat, and the Pillgwenlly Estate (South Wales) in partnership with Newport City Homes.
The company has also moved forward with land led schemes and now has around 1,300 units in various forms of control that are allowing the creation of new partnerships to deliver new homes.