Improving housing market gives a huge boost to local developer
WEST Midlands developer Mar City has seen a huge surge in profit and revenue on a year on year basis.
Announcing its results for the year ended December 31, the Birmingham and Solihull-based residential property specialist, which also has an operation in London, reported revenue of £24.8m, an 177% increase on 2012’s £8.9m.
Profit before tax was £3.2m, a massive 229% increase on 2012’s £978,000 return.
New equity funding, secured in December, increased cash balances by a net £27.8m which will be used to acquire additional land in 2014.
The firm says it has a strong new sales pipeline, benefiting from the ‘Help to Buy’ scheme which is helping first time buyers, young professionals and families into home ownership.
Mar City said its land acquisition of £30.8m secured more than 500 housing units across eight sites, with four sites already under development and now generating sales completions.
It announced today it has acquired 622 further plots across London and the Midlands.
These include 142 units of family housing in Cranford Street, Smethwick, 150 units of family housing in Darkhouse Lane, Dudley, and 250 units of family housing in Hall Green Road, Sandwell.
Mar City said it has a strong pipeline with a target of at least 2,000 plots this year, which would create a land bank for at least of three years, by the end of the current year.
Tony Ryan, CEO of Mar City, said: “I am delighted to report that Mar City performed very strongly during the year, with operating efficiencies delivering improved margins and as a consequence the results for the year were ahead of previous expectations.
“Mar City is now a substantial national housebuilder, as the business was transformed with the very successful, oversubscribed fund raising and acquisition of Mar City Land Ltd, which completed on 16 December.
“This created the platform for significant growth, with the land acquired providing a springboard for future expansion, whilst the strengthening of the existing management team and the business’ processes ensured that Mar City is suitably structured to scale and deliver further strong growth.
“The group has also benefited significantly from continued strength in the UK housing market. Improving consumer confidence, stimulated by new government backed schemes and increasing employment levels, has meant Mar City is experiencing exceptional levels of demand.
“In particular, the Government’s newly extended ‘Help to Buy’ scheme has brought forward significantly improved results to the sector and we believe Mar City is well placed to benefit as it continues to do so, allowing first time buyers, young professionals and families to enter into home ownership.”
Mar City has brought in Professor Alan Birks CBE as a non-executive director. He will also become a member of both the audit and remunerations committees
Michael Brown has also been brought in as a non-executive director and he will also become a member of the remuneration committee.
