South Yorkshire-based house builder, Strata Homes Limited, has re-evaluated its property price points following a challenging trading period and diminished financial results.
Turnover for the year ended 1 July 2023 was £149 million, down from £167.7 million in the previous financial period, generating a pre-tax profit of £4.2 million (FY2022: £12.4 million).
Soaring inflation and interest rates, higher build and labour costs, a house building shortfall, and the ripple effects of the coronavirus pandemic, among other macroeconomic factors, impacted the company’s performance for the year.
It cautiously added, however, that the outlook now is “more stable”, with the housebuilding sector reacting to new market conditions.
“For the group, this has meant the need to move into a market space of lower price points for open market sales,” said Strata.
The Doncaster–headquartered business generated an operating profit last year of £6.1 million, down from £13.3 million in the prior financial year.
While net assets and total equity for Strata were valued at £96.2 million, up from nearly £93 million in the year before, with cash reserves at £13.2 million, down significantly from £43 million in FY2022.
Profit after tax for the year was £3.3 million (FY2022: £10 million).
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