Increase the size of our land bank year on year
Purchases range from brownfield sites where residential development is expected, to tactical acquisitions of sites which open up the potential of neighbouring land, to areas which will become key housebuilding terrain in the future. All of these purchases are funded by our careful financial strategy, which balances loan finance, joint venture funding and cash released by sales of other sites and completed residential units.
Continue the core activity of plot sales to other developers to generate cash to fund our operations
As our planning team adds value to land through achieving planning permission, we are able to make attractive short term margins through land sales to developers, Registered Providers and PRS Funds. In this strong housebuilding climate there is high demand for quality land, so our strategy means that we are well poised to take advantage of this and generate strong revenue streams and cash flow to feed back into our land buying programme.
Maximise the value from our land bank by expanding our housebuilding programme
Having proved our credentials as a quality housebuilder with award-winning developments such as Drayton Garden Village and Carter’s Quay, we continue to build momentum and develop our quality portfolio. Our housebuilding capabilities have bolstered our reputation and attracted some significant partnerships, for example the project in Chapel Riverside, Southampton. We are seeing increasing interest in our land bank from Registered Providers (“RPs”) of affordable housing who are considerably increasing their production of homes, in light of the growing realisation that the private sector is unable to deliver the volume of new affordable homes required in the UK.
We are also observing a high level of enquiries for land from Private Rented Sector Funds, another growth area that we hope to benefit from.
Maintain borrowings at a manageable level through a strong focus on cash management and vendor financing
Our varied range of financing options gives us flexibility. Our business plan includes the sale of consented land, which we can tailor to our cash flow requirements. Additionally, we have an increasing bank of properties which are providing a steady stream of rental income and cash that contributes to our overheads.
Read more about our progress over the past year in our online annual report