Housebuilder London Square has delivered a strong performance in its latest annual results thanks largely to its expansion into private sales and more than doubling of its forward sales driven by the success of extending into affordable housing and Build to Rent.

The latest results, year ended 31stMarch 2022, show a significant increase in operating profits, forward sales more than doubled and its land pipeline up to 4,897 homes homes, worth £2.5bn in gross development value.

Operating profit increased to £30.7m (2021: £17.0m), with a gross profit margin of 20.5% (2021: £21.3%). The gross tangible asset value was up – £263.0m (2021: £226.3m) and the net tangible asset value increased to £169.5m (2021: £148m), with the Group maintaining a high level of liquidity, finishing the year with £48.2m of cash on the balance sheet.

The number of homes completed was 502 (2021: 328). Forward sales increased to £456.2m, up from £195.4m in 2021.

Mark Pain, chairman, London Square, commented: “Encouragingly, the business continued to deliver on its strategy to expand into partnerships-based business lines with Square Roots and London Square Living both growing significantly during the year, contributing to a more diverse and robust business.”

Despite the uncertainty of the economic environment, for the housing market the demand-supply imbalance appears to be here to stay, according to Adam Lawrence, chief executive, London Square.

He said: “Despite the uncertainty of the economic environment, for the housing market the demand supply imbalance appears to be here to stay. The current trading activity of the group has been positive, and the group remains on track for delivery of its planned residential unit sales.

“The significant forward order book position of £497m provides a solid underwriting of the outlook, especially with £235m already contracted for the next financial year. There is some exposure to the commercial property market where investor appetite remains to be proven during this period of uncertainty.

“The economic backdrop has also brought about cost pressures, particularly on material prices. Processes put in place continue to prove effective at managing these increases in the current market. We are very excited about the prospect of the coming year.”

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