One Heritage Group PLC on Tuesday reported a widened annual loss despite a jump in revenue, as costs ballooned.
For the financial year that ended June 30, the Manchester-based residential property developer in north-west England said pretax loss widened to £2.1 million from £808,977 a year prior.
One Heritage shares fell 28% to 11.88 pence each in London on Tuesday afternoon. The stock is down 76% over the past 12 months.
Revenue multiplied to £1.7 million from £464,367. Cost of sales however jumped by even more, to £2.5 million from £26,400.
Further, for the just ended financial year, One Heritage took an impairment of inventory cost of £1.3 million and a trading property cost of £460,553, compared to none for both a year ago. Additionally, administrative expenses widened by 48% to £1.5 million from £1.0 million.
One Heritage expects to complete three developments by the end of its current financial year 2023. Looking forward, it said that the outlook for the UK economy for the rest of 2022 and 2023 is ‘far from certain with a combination of inflationary pressures driven by cost increases across energy and food, limited labour availability and supply chain challenges’.
More optimistically, One Heritage said: ‘Despite the mounting risks, one big positive for the sector remains the fact that housing is chronically undersupplied in the UK.’
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