Avant Homes has plunged into the red after setting aside more than £100m to address cladding and fire safety issues across its legacy developments.

The housebuilder, led by former Persimmon chief executive Jeff Fairburn, reported a pre-tax loss of £83m for the year ending 30 June 2024. The result marks a sharp downturn from the previous year, driven largely by a £107m provision for fire safety remediation.

Operating profit fell to £17m, down from £50m last year, with a further £15m in exceptional costs weighing on performance. These included charges for restructuring, asset impairments, and expenses linked to defective buildings.

Avant said the increased provision reflected the identification of additional buildings requiring remediation, along with revised cost estimates that incorporate inflationary pressures.

The company is also in discussions with the Ministry of Housing, Communities and Local Government to defer payments to the Building Safety Fund — a move that could relieve short-term pressure on its cash position.

In a further potential blow, Avant highlighted an estimated £70m exposure related to new Scottish legislation aligned with the Building Safety Act in England. This figure has yet to be recognised in its financial statements.

“We continue to develop a more detailed understanding of remediation costs… the level and cost of the remedial work will become increasingly clearer as we move through this process,” the company said.

Despite the significant financial hit, Avant reduced its net bank debt from £145m to £117m and retains access to a £250m revolving credit facility.

Revenue dipped 3.6% to £465m, though private average selling prices rose modestly to £310,000. The business saw a fall in social housing completions, down to 185 units from 287, while private rental sector (PRS) deliveries jumped to 319 homes, up from just 7 the previous year.

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