Upmarket housebuilder Raven Mount has announced a pre-tax loss of £2.1m for last year, after a pre-tax profit of £3.8m in 2002. Turnover fell by more than £6m to £59.4m.
The group traded as Swan Hill for most of last year but in December a fresh management team was drafted in after receiving the go-ahead from shareholders. The name of the firm then changed to Raven Mount. The management team promised to turn round the financial performance of the firm or secure value for shareholders in some other way, possibly by selling it. It is now in talks with a third party about a possible takeover.
In a statement last week, chairman James Hyslop said that it was not clear whether this party would make an offer for Raven Mount.
The management team has undertaken a review of the business. This has led to a decision to increase development margins by focusing on fewer but larger projects. The firm has changed its accounting policy: sales are only registered on completion rather than earlier in the process, such as when a deposit has been put down on a property.
Raven Mount has decided to concentrate on fewer but larger projects