Hill Group Delivers Record Growth
Hill Group has posted outstanding financial results across two consecutive reporting periods, demonstrating significant growth and resilience in a challenging housing market.
Record-Breaking 15-Month Period
In the extended 15-month reporting period, Hill Group achieved a record turnover of £1,145.9 million (up from £716.1 million in the prior year), delivering 2,886 homes (a sharp increase from 2,203 in 2022). Pre-tax profit also soared to £70.1 million, up from £65.6 million the previous year. The Group’s balance sheet strengthened, closing at £368.9 million, reflecting a 14% increase in net assets.
Hill Partnerships and Hill Residential navigated a complex market characterised by high interest rates and suppressed buyer demand, particularly in London. Despite these challenges, the Group maintained strong sales, especially in affordable housing and private partnerships, with 726 homes sold through private sales and joint ventures.
The Group invested significantly in new land and work in progress, closing the period with £486.4 million in work in progress and a development pipeline of over 27,000 homes. The total potential revenue from this pipeline is expected to exceed £10 billion.
Financial Year Surpasses Expectations
Building on this momentum, the Group reported record performance again in the following 12-month period, achieving turnover of £1,151.9 million, slightly higher than the previous period, with pre-tax profits climbing to £90.5 million. Homes delivered totaled 2,811, maintaining a strong pace of delivery despite market headwinds.
The Group’s balance sheet further improved to £431.8 million, marking a 17% increase in net assets compared to the previous period.
Hill Residential’s performance strengthened, bolstered by improving domestic and overseas markets, with average selling prices rising to £613,000. The Group also entered the Build-to-Rent sector, securing agreements to deliver 629 rental homes.
Hill Partnerships continued to outperform expectations, particularly within its London and Special Projects divisions. The Group’s contracting pipeline grew to over £4.8 billion, up from £3.7 billion the prior year.
The Group’s land and work in progress stood at £639 million, supporting the development of over 11,700 homes with future income exceeding £12.5 billion, alongside a long-term pipeline of 20,300 additional homes.
Strong Financial Position and Growth Outlook
Hill Group ended the most recent financial year with net cash of £118.3 million, a substantial improvement from £86.4 million in the previous period, and with no borrowings against their £220 million revolving credit facility.
The Group’s consistent delivery of record revenue, profit, and pipeline growth underlines its robust business model and strategic foresight. Despite market volatility, Hill Group’s proactive investment in land and diversification into rental markets positions it for continued success.
