Housebuilder Higgins says it wants to move into the mixed-tenure market, after reporting that its pre-tax profit had broken through the 拢10m barrier, writes Lorraine Cushnie.

Higgins, which operators a social housing contracting division, plans to pitch for more mixed tenure work, following its work on a 拢21m project in Crawley, Sussex.

Paul Lewellen, the firm鈥檚 financial director, said the divisions had operated separately, but are becoming increasingly integrated as Higgins looks to win more schemes that combine social and privately owned housing.

鈥淢ixed-tenure is an area we want to push, and we believe there鈥檚 much more demand for having all services under one roof,鈥� he said.

Higgins revealed that its pre-tax profit rose 9% to 拢10.1m, for the year ending 31 July. Its turnover rose 8% to 拢206m.

We believe there鈥檚 much demand for having all services under one roof

Paul Lewellen

Contracting remains the biggest of Higgins鈥� divisions. Sales there increased 1.7% to 拢127m. The biggest rise in turnover was in housebuilding, which rose 27% to 拢78m.

The company made a 拢500,000 contribution to its pension fund, reducing the deficit to 拢1.5m.

Lewellen said: 鈥淐ontracting was a little more steady this year, as it has taken a while for framework projects to get through the system, but we expect these to start soon.鈥� He added that the company was expecting its group turnover to reach 拢240m next year.

The financial director was bullish about the future housing market, despite fears that a rise in interest rates next week would put a dampener on sales. He said: 鈥淚 don鈥檛 think the market is sensitive to a quarter point rise. We鈥檝e experienced steady demand. Only an economic downturn would effect the housing market.鈥�

Postscript

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