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

20182017CompanyTotal turnover 拢000Change on 2017Pre-tax profit 拢000Year endContracting 拢000Housing 拢000Property 拢000Services 拢000Other 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

HousebuilderAverage selling priceHomes soldPre-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