The Davidsons Homes group said it built fewer homes last year after the pandemic caused a temporary closure of sites.
The Midlands housebuilder said it put up 608 homes in 2020, compared to 703 the year before, after the first national lockdown caused the short-term closure of its developments as well as its showhomes, sales offices and its main and regional office.
New accounts show the business also put a temporary suspension on land transactions after the coronavirus first hit to preserve cash, and furloughed 209 members of staff. Its sites, sales offices and showhomes reopened last May.
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The housebuilder – which is based in Ibstock, Leicestershire, and principally operates in the east and south Midlands – refinanced an existing £50 million revolving credit facility during the pandemic and secured a £30 million credit facility under the government’s CBILS scheme.
The annual report for Davidsons Developments Ltd said turnover last year was £166.4 million, compared to £201 million in 2019. Pre-tax profits were £16.8 million, down from £28.3 million.
The business was set up by David Wilson CBE DL who joined his father’s building business in 1961, and went on to lead and grow it as David Wilson Homes, diversifying into commercial property with Wilson Bowden Developments.
He later sold his business to Barratt Developments, and in 2008 a new family of companies was started called Davidsons Developments Ltd.
Mr Wilson is also involved in registered charity the David Wilson Foundation, and was one of the leading donors to the University of Leicester’s £12.6 million heart research centre at Glenfield Hospital.
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He was the winner of a lifetime achievement award at the 2019 Leicestershire Business Executive of the Year Awards.
The newly published accounts showed Davidsons welcomed measures to stimulate the housing market last summer, including the stamp duty holiday on the first £500,000 of all property sales in England, which was extended to the end of last month and will taper off by the end of September.
The new mortgage scheme for buyers with smaller deposits, which will run until the end of December 2022, was also helping the sector, it said.
Writing in the trading statement, company director James Wilson said: “The aftermath of the Covid-19 pandemic will undoubtedly mean higher levels of unemployment in certain sectors and greater economic uncertainty.
“There does however remain pent-up demand for housing currently underpinned by low interest rates and good mortgage availability which will be supported by the government for the medium term.”
The figures show Davidsons built 127 social houses during the year, up from 102 in 2019.