Mount Anvil Group increased its annualised pre-tax profit by 24% to £10.4m in the year to 31 March 2026, despite setting aside £14m for fire-safety and cladding remediation across its legacy developments.
The London developer and contractor reported statutory turnover of £184.5m for the 12 months to 31 March 2026, a 6% decrease from the annualised equivalent of £196.9m recorded during the previous 15-month period.
On the same annualised basis, pre-tax profit increased from £8.5m to £10.4m, taking the group’s pre-tax margin from 4.3% to 5.7%.
The statutory figures for the previous reporting period show turnover of £246.1m and pre-tax profit of £10.6m for the 15 months to 31 March 2025. On that unadjusted basis, turnover fell by 25% and pre-tax profit declined by 1.1%, although the comparative period covered an additional three months.
Mount Anvil reported turnover of £345.5m when its share of joint ventures was included. This represented a 20% increase against the annualised equivalent of £287.7m for the preceding period.
The group made a £14m provision during the latest financial year for remedial work on legacy developments, relating to fire safety and cladding. Mount Anvil said surveys and remediation work were continuing across the affected developments.
A further £3m of the existing legacy provision was used during the year, leaving total provisions of £20.3m at the end of March. Approximately £6.1m of that amount is expected to be used during the following 12 months, with the remaining expenditure forecast to take place over a further two years.
Mount Anvil said it expected a “significant majority” of the remediation costs to be borne by third parties.
The group also recognised a separate £6m reimbursement asset for rectification work where recovery was considered virtually certain. This compared with £976,000 at the end of the previous reporting period.
Despite the increase in pre-tax profit, Mount Anvil recorded an operating loss of £12.2m, compared with an annualised operating loss of £5m in the preceding period. The impact was offset by an increase in the group’s share of profits from joint ventures, which rose by 71% on an annualised basis to £22.2m.
Joint-venture turnover increased by 77% on the same basis, rising from £90.9m to £161m.
Design-and-build contracting turnover fell by 7% against the annualised comparator, decreasing from £182.1m to £169.1m. Property development turnover, by contrast, increased by 4% on an annualised basis, rising from £14.8m to £15.4m.
The group completed 662 homes during the year, including 309 affordable homes. Projects contributing to the completions included The Verdean, One Clapham Junction, Queens Cross and Chelsea Botanica.
The total represented a 64% increase against the annualised completion rate for the previous 15-month period, when Mount Anvil delivered 505 homes.
The company expects to complete a further 796 homes during 2026/27, including 214 affordable properties. Its development pipeline also expanded during the year, increasing from 3,384 homes to 4,505, of which 1,507 are classified as affordable.
The estimated sales value of the pipeline, including commercial disposals, increased by 49% from £1.75bn to approximately £2.6bn.
Mount Anvil said it had already sold 74% of all homes scheduled for completion over the next five years. However, the company warned that demand for new-build flats in London remained “subdued”.
It also noted that construction cost inflation had not necessarily been matched by increases in sales prices during the past three years, placing pressure on margins across the London residential market.
The value of work contracted with housing associations and local authorities fell during the year, decreasing from £523.7m to £414m. Mount Anvil said private intragroup construction contracts provided a further £2bn of work within its construction pipeline.
The group’s financial position was weaker at the year end, with cash falling from £48.9m to £27.4m and borrowings increasing from £18.4m to £24.1m. Net cash consequently fell from £30.5m to £3.3m.
Mount Anvil recorded an operating cash outflow of £27.8m during the year, compared with an outflow of £3.5m during the previous 15-month reporting period.
The results leave the group with a substantially larger development pipeline and increased joint-venture activity, alongside the financial obligations associated with legacy building-safety work and a London residential market where demand for new-build flats remains challenging.
