Trading Update 12.12.2022

Dear All

In September, we shared our 21/22 accounts with you and our investors. At the same time, we (via third-party analysts) share financial forecasts. These forecasts predict how we will perform over the following years, including how many homes we can sell, how much we can earn, and what our profits could be.

Since September, the housing market has changed and buyer demand has slowed down. Costs have continued to increase, interest rates are higher, and house prices are no longer rising. If costs rise and prices don’t, the maths is simple: we make less profit. We need to be pragmatic and review every site, every sale and every affordable contract and check turnover and profit.

Today, we have published new information to give everyone a better idea of how many homes we think we will sell and how much profit we will make. Whilst our turnover is projected to increase with the growth of our Group through the addition of Tulloch and Mactaggart & Mickel, we expect our profit for year ending 31 May 2023 to be less than what it was in 2022.

The Trading Update issued to the market this morning can be read here.

We believe this is a realistic forecast of where we will be at the end of May. Achieving this still requires a huge push from our teams across the country. We’ve been through uncertain times before, and I am confident that with your help, we can succeed. I am incredibly grateful to you all for your ongoing efforts and commitment. Thank you.

Take care

Innes