Profit Track 100

Broadthorpe, the holding company that runs builder William Davis, has seen its profits rise courtesy of the late 1990s property boom. The company suffered from a number of loss-making contracts in 1995 but its policy of buying up cheap land when prices were low was rewarded when land and house prices rose from 1996 onwards. The Loughborough-based company’s profits grew by 47% pa, from £1.3m in 1996 to £4m in 1999, while sales rose just 8% in the same period to £52.8m. Profit growth was helped by the company’s decision to use its stock of cheap land to build high margin three- and four-bedroom homes. The company also landed a series of profitable contracts, including the £20m redevelopment of Leicester’s Bede Island and the construction of a 240-room accommodation block for the city’s De Montfort University. Finally, William Davis benefited from working with housing associations on a 12-year, 345-house project south of Birmingham, which helped boost profits further by delivering economies of scale.

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Company details
CompanyWilliam Davis
ActivityBuilding contractor
Annual profit growth47.46%
Latest profits £000s4,021
Latest sales £000s52,840

If applicable:

* supplied by company † annualised figure