The regional business on-line journal Insider News has an article by Richard Frost with Wainhomes trumpeting a massive 55% rise in profits for their South West division on the back of ‘a long land bank purchased at competitive rates’.
Wainhomes and their aggressive tactics are well known to residents in Feniton, who are currently awaiting the decision on the Super Inquiry heard in January into mass development in the village. One of the sites is for a 83-home extension to the existing Wainhomes site of 50 homes won at appeal despite massive local opposition in September 2012.
The site is well known for causing some of the surface runoff which floods the village at times of heavy rain and Wainhomes have been battling to control the levels of water by building earth bunds like some monstrous sand castle circling the site.
The admission by Wainhomes that they are landbanking is extraordinary given that this is a practice frowned upon by the Coalition Government which is eager to see an increase in house building to solve the housing shortage and pump up the economy.
The article, entitled Wainhomes boosted by South West profits jump, is reproduced below:
Profits have jumped by more than a half to £16.2m at the South West division of Wainhomes.
The business, which claims to be the largest house builder in Devon and Cornwall, also reported that it was expecting strong margins from future developments to underpin continued success.
According to its latest set of accounts, Wainhomes (South West) generated pre-tax profits of £16.2m in the year ending 30 June 2013, which represents a 55 per cent year-on-year rise. Turnover climbed by 22 per cent to £66.8m over the same period.
All of the profits and turnover came from house building projects in the UK.
The South West division, which is based at Okehampton in Devon, is behind residential schemes across Devon, Cornwall, Wiltshire and Somerset. It also has several developments in the pipeline – in Wellington (Somerset), Barnstaple (Devon), Westward Ho! (Devon), Okehampton (Devon) and Bodmin (Cornwall).
In their report accompanying the accounts, the directors stated: “The company has a long land bank purchased at competitive rates that should allow future developments to achieve strong margins which should underpin the continued success of the business.”
The accounts show that the business had an average of 81 employees including directors during the period.
Wainhomes (South West) is part of a much larger house builder, Wain Group Holdings.
According to its newly published accounts, Wain Group Holdings posted pre-tax profits of £22m in the year ending 30 June 2013, which is up by 57 per cent on a year earlier. Turnover climbed by 28 per cent to £120.3m over the same period.
A year ago, chief executive Steve Owen said the company was on track to hit the £120m-turnover mark in 2013.
Now Owen has told Insider that he is expecting another “significant improvement” in the current financial year.
He said: “In the past 12 months we have secured planning consent on land with a gross development value of over £350m and this will underpin the ambitious growth plans for the group beyond the current financial year.”