Mount Anvil profit rises despite £14m remediation provision
Summary
Mount Anvil reported higher annualised pre-tax profit despite setting aside a £14m provision for fire-safety and cladding remediation on legacy developments. The company said surveys and remedial work are ongoing, with most of the expected costs anticipated to be recovered from third parties, while its London new-build market remains subdued.
Why it matters
Fire-safety and cladding liabilities continue to affect developers’ balance sheets and can influence the pace and scope of remediation on residential schemes. Surveyors may encounter ongoing investigation, valuation uncertainty and transaction risk where legacy defects or reimbursement arrangements are involved.
Key points
- A £14m provision was created for fire-safety and cladding remediation on legacy developments.
- Mount Anvil said surveys and remedial work are still ongoing, with a significant majority of costs expected to be borne by third parties.
- The group recognised a £6m reimbursement asset where recovery was considered virtually certain.
- Demand for new-build flats in London remained subdued, with build-cost inflation outpacing sales-price growth over the past three years.
- The development pipeline and completions increased, but cash and net cash positions fell over the period.
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