Avant admits figure could change as its works its way through which buildings need remediation

Avant Homes increased its cladding and fire safety provision to 拢107m last year from 拢68m, the firm has said in its latest accounts filed at Companies House.

The housebuilder, which is chaired by former Persimmon boss Jeff Fairburn, admitted the figure could change as it works its way through its portfolio of buildings which require work.

It added: 鈥淭his is a complex area requiring significant judgement on future unknown events. We are still at an early stage within this process, therefore there are significant challenges in estimating the exact level of works required.

Jeff Fairburn

Avant is chaired by Jeff Fairburn

鈥淲hile the definite level of remedial work required is still unclear, we have utilised any information currently available and taken significant measures to ensure that this work has been accurately identified and costed where possible. The level and cost of the remedial work will become increasingly clearer as we continue to move through this process and the value of the provision will be updated accordingly.鈥�

The news came as the firm sank to an 拢83m pre-tax loss in the year to June 2024 from a 拢1.5m profit last time on turnover down 4% to 拢465m.

In a note accompanying the accounts, Avant said: 鈥淚ncreases to interest rates coupled with wider cost of living challenges impacted demand amongst our private customers, whilst the timing and cost of obtaining implementable planning permissions continues to be a constraint on the industry.鈥�

But it said the market was improving and added: 鈥淧ost year end, the Group has seen increases in visitor numbers and sales rates due to a more favourable interest rate environment supported by good mortgage product availability.鈥�

Avant racked up 拢10m of exceptional items in the year including costs related to increasing its fire safety provision as well as 拢1.5m on restructuring costs and a further 拢1.2m on abortive transaction costs. Last summer, Avant, which is controlled by a New York hedge fund, made an approach to merge with larger rival Crest Nicholson

The firm said it completed 1,700 homes during the period, including 185 social housing units and a further 319 units for the private rented sector (PRS).

The average selling price for social housing completions was 拢167,000 with PRS homes selling at an average of 拢177,000.

Topics