Liverpool property firm Vermont sees annual profits almost double and revenues exceed £41m as the business bounces back from the pandemic. Tony McDonough reports
Liverpool property business Vermont is reporting a healthy rise in both revenues and profits in its latest annual accounts.
Its fiscal report for the 12 months to March 31, 2022, has just been published on Companies House. It reveals revenues of £41.7m for the 12-month period, a near 28% rise from the £32.7m reported for the previous year.
Pre-tax profits came in at £1.3m, a big rise on the £700,000 reported in 2021. Cash at hand as of March 31 was £7.2m – up from £6.3m 12 months earlier.
In the report the directors called the results “satisfactory” but added: “The group is in a strong position with a fantastic pipeline of opportunity. Vermont has paid a dividend to shareholders of £108,000 for the year.
“Cash at bank and in hand has increased to £7.2m with strong operating cash flows a testament to strong working capital management within the business while maintaining a principle of ensuring prompt supplier payment.”
In an interview with LBN in October, founder and chief executive of Vermont, Mark Connor, said the company’s pipeline of work was already stretching into 2024.
It is currently working on projects in Manchester and a stalled £50m residential development at Liverpool Waters, which had been put on hold, is due to be revived.
“At the moment we are moving into uncharted economic waters. 2023 will be tough for everyone,” he said. “Next year will be a tough time for contractors but we have a pipeline secured until 2024. That is the difference for us.”
Vermont was founded in 2004. Prior to that Mark had founded Space Developments. This was acquired by Northern Ireland housebuilder McInerney in 2001 but Mark wanted to carry on doing his own thing and took on his old team in the new business.
Unlike traditional building contractors, Vermont works to a different model. He explained: “We are not a contractor as such. We work with the developer right from the front end. We will secure planning for them and we will negotiate the 106 agreements. So we are almost like a development partner.
“All of our work is negotiated through that development process so we steer clear of competition. We don’t submit tenders and all the work is negotiated and driven organically by our development team at the front end.”
Similar to many in the property sector, Vermont had to weather the storm during the pandemic. In its last published accounts, covering the year to March 31, 2021, the business saw revenues plummet to £32.7m from almost £62.5m in the previous year.
Mark also said turmoil within Liverpool City Council had “spooked investors”. He added: “We need clarity as to who is driving the bus… Until there is some clarity as to how the city will be managed, then you have a vacuum in terms of investment.”
Currently its two biggest clients are Peel L&P, owner of Liverpool Waters, and Liverpool residential developer X1. Vermont is currently on site at a number of projects for X1 in Greater Manchester.
In March LBN reported how Your Housing Group had pulled out of a £50m residential tower at Princes Dock in Liverpool Waters for the second time. Patagonia Place was to be a 31-storey scheme offering 278 apartments for rent. Mark said good news on a revival of the scheme was imminent.
“Unfortunately for reasons outside both ours and Peel’s control it stalled,” he said. “We have now picked up the baton and we are moving it forward slowly but surely. We hope to be able to provide some positive news.”