好色先生TV鈥檚 exclusive full Top 150 league is out tomorrow, but here selected results on the top 20 housebuilders have been released early
It鈥檚 the time of year again when 好色先生TV reveals its exclusive Top 150 contractors and housebuilders league tables.
Today we are releasing the details of just the top 20 housebuilders by housing turnover with analysis, plus the top 10 housebuilders鈥 profit per house sale.
It鈥檚 been a phenominal year for housebuilders 鈥 their fifth year of growth, with turnover, profit and margins all on an upward trend.
On Friday the complete data set will be available, including:
- Top 150 contractors and housebuilders by turnover
- Top 20 contractors by contracting turnover
- Top 20 housebuilders by housing turnover
- Top 10 housebuilders* profit per house sale
- Additional tables with aggregated data that allows you to compare total turover with average margins
Yesterday we released companies 101-150 in the Top 150 contractors and housebuilders鈥 tables.
* see methodology and notes below
2018 | 2017 | Company | Total turnover 拢000 | Change on 2017 | Pre-tax profit 拢000 | Year end | Contracting 拢000 | Housing 拢000 | Property 拢000 | Services 拢000 | Other 拢000 |
---|---|---|---|---|---|---|---|---|---|---|---|
1 |
1 |
Barratt Developments |
4,650,200 |
9.80 |
765,100 |
Jun-17 |
4,589,100 |
61,100 |
|||
2 |
2 |
Taylor Wimpey |
3,965,200 |
7.86 |
682,000 |
Dec-17 |
3,965,200 |
||||
3 |
3 |
Persimmon |
3,422,300 |
9.10 |
966,100 |
Dec-17 |
3,422,300 |
||||
4 |
4 |
Berkeley |
2,703,700 |
-0.73 |
934,900 |
Apr-18 |
2,703,700 |
||||
5 |
5 |
Bellway |
2,558,561 |
14.19 |
560,723 |
Jul-17 |
2,558,561 |
||||
6 |
6 |
Redrow |
1,660,000 |
20.12 |
315,000 |
Jun-17 |
1,660,000 |
||||
7 |
11 |
Galliford Try |
2,820,200 |
5.61 |
58,700 |
Jun-17 |
1,526,900 |
1,267,600 |
25,000 |
||
8 |
8 |
Crest Nicholson |
1,043,200 |
4.63 |
207,000 |
Oct-17 |
1,043,200 |
||||
9 |
7 |
Bovis Homes |
1,028,223 |
-2.52 |
114,001 |
Dec-17 |
1,028,223 |
||||
10 |
10 |
Bloor Homes |
917,705 |
27.73 |
152,521 |
Jun-17 |
917,705 |
||||
11 |
15 |
Countryside Properties |
845,800 |
25.99 |
141,700 |
Sep-17 |
845,800 |
||||
12 |
14 |
Cala |
747,928 |
27.40 |
70,445 |
Jun-17 |
747,928 |
||||
13 |
12 |
McCarthy & Stone |
660,900 |
3.93 |
92,100 |
Aug-17 |
660,900 |
||||
14 |
- |
Morgan Sindall |
2,792,700 |
9.02 |
64,900 |
Dec-17 |
1,332,600 |
473,500 |
185,900 |
66,200 |
734,500 |
15 |
17 |
Keepmoat Homes |
423,199 |
25.70 |
25,435 |
Mar-17 |
423,199 |
||||
16 |
16 |
Kier |
4,282,300 |
4.90 |
25,800 |
Jun-17 |
2,019,400 |
375,700 |
182,000 |
1,688,100 |
|
17 |
- |
Avant Homes |
368,973 |
3.43 |
20,631 |
Apr-17 |
368,973 |
||||
18 |
- |
Telford Homes |
316,241 |
8.33 |
46,308 |
Mar-18 |
316,241 |
||||
19 |
20 |
Morris Homes |
283,651 |
5.74 |
27,618 |
Mar-17 |
283,651 |
||||
20 |
13 |
Places for People1 |
234,192 |
137.12 |
Mar-17 |
234,192 |
Top 10 housebuilders鈥* profit per house sale
Housebuilder | Average selling price | Homes sold | Pre-tax profit per home sold |
---|---|---|---|
Barratt Developments |
拢313,100 |
17,395 |
拢47,387 |
Taylor Wimpey |
拢264,000 |
14,541 |
拢57,328 |
Persimmon |
拢213,321 |
16,043 |
拢60,219 |
Berkeley Group |
拢715,000 |
3,536 |
拢220,475 |
Bellway Plc |
拢260,400 |
9,644 |
拢59,265 |
Redrow Group Plc |
拢309,800 |
5,416 |
拢59,453 |
Galliford Try |
拢354,000 |
3,890 |
拢47,609 |
Crest Nicholson Plc |
拢340,000 |
2,935 |
拢72,095 |
Bovis Homes |
拢272,400 |
3,645 |
拢35,125 |
Bloor Homes |
拢300,000 |
3,023 |
拢52,002 |
*Housebuilders ranked by overall turnover
The housebuilders鈥 story
Housebuilders in the top 150 accounted for 42% of the turnover (拢43.6bn) and 87% of the pre-tax profit (拢6bn) of the firms ranked.
While smaller housebuilders showed some signs of catching up with the biggest in terms of turnover, the top 10 housebuilders retained their dominance in profitability, making two out of every three pounds of profit in the whole Top 150 at an average pre-tax profit margin of 19.2%. This compares with 13.8% for housebuilders in general.
The single most profitable housebuilder, Berkeley, made 拢220,000 in profit out of every single house it sold.
While average wages at housebuilders rose by 1.4% over the past year, the remuneration of the highest-paid director increased by an average of 95% 鈥 boosted by Persimmon鈥檚 controversial bonus scheme. Discounting Persimmon, director remuneration still rose by 14% on average.
The single most profitable housebuilder, Berkeley, made 拢220,000 in profit out of every single house it sold
However, the first signs of weakness have started to appear following years of quick growth, with the likes of Bovis Homes, Crest Nicholson and McCarthy & Stone all announcing profit warnings over the past 18 months.
Kevin Cammack, analyst at Cenkos, says: 鈥淲e鈥檙e definitely getting late on in the market cycle, albeit we鈥檙e not where we were in 2008 where we were facing devastating collapses. Housebuilders have infinitely stronger balance sheets than then.鈥
Weighing on the sector are slowing sales rates, particularly in London and the South-east, the spectre of future interest rate rises, and fears that existing government support in the form of Help to Buy won鈥檛 be sustained indefinitely.
鈥淭he political climate is much more changeable,鈥 says Cammack. 鈥淐an the current incredible support to the sector continue?鈥
Jan Crosby, managing director at KPMG, says that in response housebuilders need to ensure they are not carrying high levels of debt, and consider diversifying away from total reliance on building homes for sale: 鈥淭hey need to think about build to rent. It allows them to de-risk their revenues while showing government they are doing what they can to find ways to accelerate construction.鈥
Methodology
This Top 150 construction company analysis refers to those companies identified by Hewes & Associates as the Top 150, which have results available for 2017/18, and which are housebuilders, building and civil engineering contractors, building fit-out contractors, M&E, and FM/building/civil engineering or maintenance companies.
Larger companies whose 2017/18 results are not yet available have been included with their 2016/17 results, while smaller companies in such a position have not been included.
Turnover includes joint ventures. Ranking comparisons have been affected by the inclusion of companies that were not included in last year鈥檚 rankings, and owing to revised methodology, and some cases where there have been changes in corporate reporting, such as a different year end, comparators on figures published last year are not always possible.
Data compilation and analysis was undertaken by Hewes & Associates, to which any queries on the data should be directed: 01428 641518, hewesinfo@aol.com or at
Notes
1Places for People profit data not available
Postscript
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