Revenue up by 192% at Mar City as housing market recovery kicks in

HOUSEBUILDER Mar City has seen a huge increase in both revenue and profit as the housing market recovery continues.

Announcing its interim results for the six months ended June 30, the Birmingham firm reported revenue of £25.5m, a 192% increase on H1 2014’s £8.7m figure.

And underlying profit before tax was up by a huge 205% at £3.2m (H1 2013:  £1m).

The London and Midlands focused developer revealed its land bank had increased to 1,656 units and said it is targeting a total of 5,000 units by the end of the year.

A new £40m debt facility was signed during the period in question and the firm also launched a new new modular construction method.
 
Tony Ryan, the firm’s CEO, said: “Mar City made excellent progress in the first half of 2014, as we achieved further significant growth in turnover and profits, following the transformational equity raise and land acquisitions completed in December 2013. 
 
“The group launched its ground-breaking new modular construction methodology on sites in London and the Midlands and has received widespread critical acclaim. One of the many benefits of this system is certainty on costs and insulation against traditional cost inflation, combined with an ability to significantly improve the speed of construction.
 
“The group has also started to benefit from the strength in the UK housing market, as the first open market sales completed using the Help to Buy scheme and have combined with strong social housing sales completions.  
 
“The company’s financial resources have also been further strengthened with the agreement of the new £40m revolving credit facility announced on 31 July, and we are well positioned to continue to secure additional sites in the second half of the year.

“It is our intention to remain highly selective in all future land acquisitions, ensuring we are purchasing the right sites, in the right location, off market, at the right price. 
 
 “We have acquired a further 1,215 plots across London and the Midlands in the first half, adding to the 512 plots secured in December 2013 and this should enable the significant growth forecast in the second half of 2014 to continue into 2015.

“We will continue to build our land bank this year and with newly emerging opportunities, the target is now to create a land bank of at least 5,000 units by the end of the current year.”