Weston Group has announced pre-tax profits of £35.2m, forward sales of £248m and £28m of new investment in infrastructure, logistics and staffing
Weston Group’s on-target results are due to strong sales for starter and family homes and good occupancy figures for the serviced offices division.
Reporting on its 2017-2018 financial results, Weston Group highlighted that pre-tax profits were up 54.5% year-on-year whilst total revenue for the year was £257.1m, up 29.4% year-on-year. Over the financial year, the Group’s residential development business delivered £248m of forward sales from 954 units, with an average selling price of £329,000.
Weston Group has now expanded to have four operating divisions: Weston Homes, the residential development business; Weston Business Centres, the serviced offices division; the environmental consultancy business and Weston Logistics, the Group’s newly launched, 40 staff strong, logistics and plant hire business.
Operating on a 24.3% margin (up 1% on the previous year), the Group says that this year’s financial results are significantly up on 2017 and the firm anticipates further growth in 2019.
In order to facilitate future expansion, the Group is injecting £28m in new investment into infrastructure, logistics and staffing. The firm has started construction on a new 49,000 sqft head office in Stansted and the Group has invested £1.5m on recruiting and training new people.
The Group’s housebuilding division Weston Homes reports that one and two bedroom apartments in new build schemes in fast-growing urban locations such as Cambridge, Barking, Peterborough, Reading and East Grinstead were the units in highest demand.
Bob Weston, Chairman & CEO of Weston Group, said: “Weston Group’s strategy is to expand in three sectors, growing our residential development business, expanding our serviced offices business and developing our new logistics division.
“In our residential development business homes priced from £300 to £800 per sqft, our core operating area, continue to benefit from steady and sustained demand. Our plan is for the Group to double in size over the next five years and we have a development pipeline of 6,000 new homes with a completed value of £2bn.
“In order to facilitate this growth the Group is injecting £28m in new investment into the business in the form of upgraded infrastructure, a new HQ and logistics warehouse and more staff employment and training.”
Stuart Thomas, Group Finance Director at Weston Group added: “Weston Group is delivering steady and sustained growth, with revenue and profits rising, putting the business in a very strong financial position.
“Over the next 12 months we will facilitate further growth through substantial investment in the business and acquiring more urban sites for development across outer London and the South East of England.”