Campion Homes report positive financial results with a cautious look ahead as supply chain issues continue

22nd November

Dunfermline based housebuilder Campion Homes has reported positive financial results for
the 12 months to 30th June 2021 (FY21) amid trading conditions which continue to be
challenging. However, the results for the year were boosted by private house sales deferred
from the prior year following the COVID shutdown from March to June 2020.


Announcing its full year results, the new homes builder reported revenues of £41.8 million,
and pre-tax profit of £2.9m. Revenue for the year and gross margin were boosted by £4.6m
of carry forward house sales from FY20.


During the year, as experienced by all housebuilders, the company saw sales rates at its
private developments rise to levels above those experienced pre-pandemic. This has resulted
in strong forward sales coming into the next financial year. Whilst these strong sales have
been positive news, this has put additional pressure on land price and availability and this
remains a constant struggle for the housebuilding industry. Campion are pleased to have
secured planning for their next development at Oak Bank, Glenrothes and will commence
construction on this site in the new year.


Strong partnership relationships with its Affordable Housing partners remains a key focus of
the business. Campion’s approach of identifying suitable land opportunities and working with
all partners to bring them forward for development is strengthening these relationships
further.


During the latter part of the financial year significant material and labour price inflation was
experienced. These challenges remain and are putting continuous pressure on fixed price
contracts margins and making recruitment of high-quality labour more difficult. Forecasts for
the current year anticipate margins to be negatively impacted by this significant price
inflation.


Reflecting on the year, Executive Chairman, Pete Bell said:


“We are delighted that Campion has managed to navigate its way through the very difficult
working environment this year and report excellent sales rates at our private housing sites.
The Company recognises the exceptional response that its employees and subcontractors
have given again this year as the COVID-19 issues have remained, combined with the
significant increase in demand for new housing. Once again Campion has demonstrated that
its people, relationships and the quality of its product are integral to the success of the
business.


Like all in the industry the Company is having to cope with rocketing price inflation and this
continues to put significant pressure on the business. Lack of material availability is also
causing considerable scheduling difficulties. However, our pipeline of work is strong and we
will carry on working with our partners to deliver the high quality, energy efficient homes that
homeowners and tenants seek.


We’re excited to be leading on energy efficient innovation in housebuilding in Fife with our
85-home development for Kingdom Housing Association in Glenrothes adopting the local
District Heating Network and a 30 home Passivhaus development soon to start in Gauldry.”

Our premier partners...