Construction group reports fifth year of consecutive growth
Strategic Team Group, the Castleford-headquartered mixed-tenure housing firm, has reported a rise in profits for the fifth consecutive year.
For the financial year ending 30 September, STG delivered £2m EBITDA representing a 3% return on sales of £63m.
At the end of this period, the company also reported an order book of £87m with over 90% of 2018/19 turnover already secured and a pipeline of land and plots at its highest ever level.
Additional highlights include securing a trio of contracts via Homes England’s DPP3 framework worth in excess of £15m, and completing the 1,000th home through the company’s Land Inclusive Development model.
Andrew Watson, managing director of STG, said: “These strong results are testament to the strategy we embarked upon five years ago. Our business is built on the solid foundations of strong customer relationships and deep market knowledge.
“We have built more than 400 homes this year and will build in excess of 500 in 2018/19 which includes our first land-led site opportunity for an institutional PRS developer, securing a place on their construction framework.
“Our continuing focus on quality of earnings, growing orderbook, pipeline of new mixed-tenure sites, and our ever-watchful eye on risk mitigation and management has provided our fifth year of strong rising profits and cashflows.”
Watson added: “In the current uncertain economic and political climate, all indicators suggest that investment in affordable housing, the shortage of supply, the need to unlock land, and a skills base shortage all point favourably to the dynamic yet flexible strategy STG has adopted to deliver and expand its current housing output.”
STG specialises in delivering mixed-tenure housing developments across Yorkshire and the North West.