Leading housebuilder The Hill Group has posted a strong set of financial results for 2020 during what was the company’s most challenging year in its more than twenty year history. The UK’s third largest privately owned housebuilder posted a record turnover of £651m, up 12% on the previous year and profits of £44.3m. While the impacts of Covid-19 have tested every part of the business, Hill is on track with its five-year strategy of doubling turnover and profitability in the period up to 2025. It has maintained a strong balance sheet with over £138m of cash in the bank, £224m net assets and no borrowings, putting it in a robust position for further investment in its future development pipeline.
With its Group headquarters in Essex, the company has established a strong track record in the East and South East of England with four regional offices in Cambridgeshire, Oxfordshire, Norfolk, and West Sussex. In 2020 it expanded its geographical reach by launching a new division in the South West to focus on Bristol and surrounding areas. The group’s current land bank includes more than 6,700 homes with a pipeline of opportunities that could deliver a further 9,400 homes.
Pivotal to Hill’s success is its commitment to forming joint venture partnerships with Registered Providers, Local Authorities, and other commercial partners.
Hill also has ambitious commitments to sustainability and social value, and it has developed an Environmental, Social & Governance (ESG) strategy that is central to business planning and will underpin the company culture and values. This will include reaching net zero carbon in business operations and net zero operational carbon in the homes it builds by 2030. The company has also committed to leaving a positive environmental legacy by achieving Biodiversity Net Gain (BNG) across its portfolio of land from 2021 onwards.
The business is also dedicated to having a positive impact on every community it works within and moving forwards will measure its social value gain and report on it, setting targets for 2022 and beyond. The output of all of Hill’s work will be captured in an annual ESG report, the first of which will be published in 2022.
Andy Hill, CEO of the Hill Group, comments: “I am very proud of this strong set of financial results but what has brought me the most pleasure is seeing how our team has weathered different challenges throughout the year. We have invested in our people, pipeline, and new technologies to increase our capabilities and lay the foundations for our next stage of growth.”
“We take a long-term approach when making our strategy business decisions allowing us to adapt or modify in the short term as required by customers and clients, without losing sight of our wider vision: ‘To be the UK’s most trusted Housebuilder creating exceptional homes and sustainable communities’ in the Hill Way.”
“This approach has stood us in good stead through 2020. We have a lot to be proud of and we are well positioned to make the most of market conditions in years to come.”
FINANCIAL RESULTS SUMMARY FOR 2020:
- Revenues of £651m
- £44.3m profit
- 1,960 homes completed
- On track to double turnover and profitability by 2025
Financial results – year on year comparison
Revenue year on year 2018/2019/2020
2018 £502 million, up 21% year on year
2019 £583 million, up 16% year on year
2020 £651 million, up 12% year on year
Profit (before tax) 2018/2019/2020
2018 £48.3 million, up 2% year on year
2019 £42.6 million, down 12% year on year
2020 £44.3 million, up 4% year on year
Net Cash 2018/2019/2020
2018 £16.1 million
2019 £60.5 million
2020 £138 million
Net Assets 2018/2019/2020 and percentage increase
2018 £166 million, up 25% year on year
2019 £196 million, up 18% year on year
2020 £224 million, up 14% year on year
For more information on the Hill Group please visit: www.hill.co.uk