Avant Homes has reported a pre-tax loss of £83million for the year after its fire safety remediation provision rose to £107million.
For the year to 30 June 2024, operating profit fell from £50million the previous year to £17million, with an additional £15million of exceptional costs impacting performance, including asset impairments, costs related to defective buildings and restructuring fees.
The housebuilder’s financial update showed that it had agreed initial terms with the MHCLG for a payment plan to cover its obligations to the Building Safety Fund under a Developer Remediation Contract. Avant expects the arrangement to be concluded soon, which would see its payments deferred and spread over several years.
A spokesperson for Avant said that the housebuilder had worked “constructively with the MHCLG, lenders and independent experts to address building defects created by others under previous ownerships”.
Avant announced that it had also agreed a new loan facility with existing lenders, which it says will allow for continued investment in land alongside the remediation of affected buildings. The housebuilder says it will also enable it to deliver much-needed affordable housing across the country and maintain its market share.
The £106.9million cladding remediation bill signified a sharp rise from £68.4million the previous year. Avant described the remediation as a “priority for management” that would be “delivered responsibly, sustainably and in as an accelerated timescale as possible”.
During the period, Avant’s Group revenue fell from £483million in 2023 to £465.4million for the latest financial year. Acquisition costs for new land also fell, from £109.5million in 2023 to £63.4million in 2024.
