Record Turnover for Renaker

12/8/24

Manchester-based developer Renaker saw record turnover of £229Million in the year up to October 2023, according to the latest accounts.

Despite this, the company has not seen a proportionate rise in profits, with only £5Million generated before tax, which they say is due to a 'prolonged period of inflation'.

Darren Whitaker, Founder and Chairman, said foreign wars and rising material costs contributed to the reduction in profits.

In his director report, Darren wrote: "The global economy continues to suffer from the effects of conflict in the Ukraine and more recently the conflict in the Middle East. Energy price rises and supply chain challenges (both labour and materials) have resulted in construction costs rising faster than in other sectors, which has put trading margins under pressure.

"Through active engagement with our supply chain, our rigorous approach to risk management, and careful project and commercial management we have successfully managed to mitigate many of the challenges of supply shortages and cost inflation - and maintain satisfactory operating margins as a result."

Despite these challenges, Darren has remained upbeat and says the future remains bright.

He added: "The business continues to navigate external uncertainties well and has taken further measured steps to grow revenue, being able to progress further significant contract pipeline during the year. Our established clients have been able to secure significant pre-sales on live developments which reduces market exposure.

"The projects we are delivering are bringing forward high-quality, well-located residential projects which remain highly attractive to prospective buyers and renters in the City - giving us confidence that we can be resilient to the wider macro factors we cannot control.

"This exciting pipeline of ongoing contracts can be credited to the talent, enthusiasm and application of our people. In the year our staff headcount grew to 365, including 33 new trainees and apprentices as we continue to invest in our operational capability.

"The Company remains in a financially strong position to successfully complete all existing projects and hand over projects to clients as forecast."

Manchester's Leading Property Developer | Renaker