United House profit up 78% as London proves resilient

Social housing contractor and developer United House increased its turnover by 13% to £182m in 2009 as it took advantage of the relative buoyancy of the London market.

Pre-tax profit rose by 78% from £8.5m to £15.1m in the year to 31 December, a result that Jeff Adams, chief executive, put down to the completion and sale of two sites last year and a relatively weak 2008.

Projects completed by the Kent-based firm last year included the Wenlock Building in Islington, north London, and phase one of the Queensbridge Quarter in Dalston, east London. Two more are scheduled for completion in 2010.

Adams said the company’s three-pronged approach as contractor, developer and PFI investor had proved a resilient model. “An excellent example of our versatility is the £29m Clapham One regeneration scheme to build a library, primary care medical centre and 136 homes. We are involved as co-developer with the Cathedral Group, and as contractor and investor in the scheme.”

Its contracting arm, which carries out Decent Homes work, was a contractor alongside Denne on the £72m Kent Care PFI programme. It has an order book of more than £300m and a pipeline of potential projects worth about £2bn.

Its development business has a gross development value of £250m and the company pointed to a revival in the demand for high-end properties that has been boosted by the presence of Asian investors in the capital.

United House sold an estimated 30% stake in the firm to the private equity arm of Lloyds bank in April for about £50m. The deal was designed to allow the exit of founder Geoffrey Granter, who sold his 65-70% stake of the business that he set up in 1964.

The company ended the year with net debt of £24m (2009: £41m). Adams added: “We believe United House is excellently positioned to withstand the expected tightening of public spending purse strings. This performance gives us confidence that our versatility enables us to reinvest back in the business.”