We remain on track to deliver growth targets originally set in 2015 of becoming a £500m turnover, 2,000-unit business by the end of 2018, one year ahead of schedule
This performance demonstrates the strength of Avant’s platform for growth that has allowed the Group to continue to rapidly increase in size and scale in recent years with significant, year-on-year outlet openings coupled with an outstanding sales rate.
As a result, the Group has now put in place the next phase of its growth plans to double output to 4,000 homes per annum by 2023. To achieve this, the Group will complete the scaling up of its existing operating regions while continuing to invest in land and target further geographic expansion following the successful launch of a fifth operating region, the Central Region, covering South Yorkshire, Derbyshire and North Nottinghamshire.
We are on track to deliver the first sales completions from the region in late Autumn 2018, having secured terms on its first four outlets and the Group expects the new sites in the Central Region to fuel further strong growth in active outlets during 2019.
During FY18, the Group operated across an average of 42 selling sites, compared to 35 in FY17. The Group’s outlets at the end of April have seen significant growth, up 42% to 71 outlets in comparison to 50 outlets at the start of year. The continued popularity of Avant’s homes has led to a dynamic site portfolio with existing outlets closing and new outlets opening at pace.
Total completions for the year ended 27th April 2018 were up 16% on the prior year at 1,903 (FY17: 1,636), with a strong increase in private completions of 16% to 1,626 (FY17: 1,406) The Group’s private ASP increased to £257k (FY17: £242k), reflecting the impact of the Group’s ongoing strategy of developing sites in quality locations and offering well designed, high specification homes. Across the period, the Group has seen healthy pricing across all of its operating regions.
Colin Lewis, Chief Executive of Avant Homes said: "The last twelve months have been another landmark period for Avant and we are reaping the rewards of our strategy to build homes that offer something different to UK buyers.
“Building on the exceptional progress that we have made in growing our business over the past few years, we are on track to hit our growth targets by the end of 2018, a year ahead of schedule. As a result, we have been able to look to our next phase of growth, intending to more than double our output to 4,000 aspirational, customer-led homes per annum by 2023 in the Midlands, the north of England and the central belt of Scotland.
“The early days of the traditional Spring selling season have been positive and we continue to see strong demand for our homes. This is driven in no small part by what continues to be a buoyant Northern housing market and the fact that we have generated a rate of sale of 0.87 since the start of the calendar year. We have 69% of our H1 volumes now secured and are looking ahead to the new financial year with confidence.”
With a continuation of supportive market conditions and ongoing momentum, the Board expects FY19 to be another record year, building on the Group’s strong platform to reach Avant’s new five-year target of becoming a £1bn turnover, 4,000 unit business.