Last updated 26 January 2023
United Living Group
United Living was created in the summer of 2014 through the merger of two existing major social housing contractors, Bullock and United House. In June 2019, the group was acquired by utilities and maintenance business Fastflow to creating a business employing more than 1,000 people and turns over £436 million.
Financials
In the 12 months to March 2022, turnover at United Living Holdings rose to £436.5 million (2021: £361.3 million) but the group posted an operating loss of £7.1 million (2021: £8.1 million loss). Before tax, the losses were trimmed to £20.9 million (2021: £21.1 million).
At the old United Living business, turnover rebounded to £265.5 million (2021: £225.8 million) but the group again traded in the red. At an operating level, United Living lost £11.1 million (2021: £4.2 million). Before tax, the deficit was even larger at £11.5 million (2021: £4.7 million).
In 2022, turnover at the old Fastflow business rose to £169.8 million (2021: £135.5 million) and an operating profit of £3.3 million was returned (2021: £6.3 million). At a pre-tax level, profits rose to £9.0 million (2021: £6.2 million).
To view financial details for United Living Holdings go to Companies House and use Company ID 10523632.
Operations
United Living retained the old United House offices at Swanley in Kent and trades as three divisions: United Living Property Services, United Living Infrastructure Services and United Living New Homes.
Care remains a growth sector for the group and it is increasing market share whilst demand grows in the public and private sectors. United Living’s clients include RSLs such as Orbit, Peabody Trust and Southern Housing, and local authorities in Leeds, Sheffield and Thurrock.
United Living is delivering major residential schemes such as the £210 million Points Cross development in Leeds for The Guinness Partnership (Project ID: 18132961) and is on a number of major long-term agreements from the £250 million Fusion21 Reactive Repairs & Empty Buildings Framework (Project ID: 22094003) to the £10 billion Retrofit Accelerator for Homes Initiative (Project ID: 20450564).
Property Maintenance
This division operates out of Swanley in Kent and maintains more than 4,300 properties and delivers planned and responsive maintenance together with refurbishment and the conversion of buildings. This division also has offices in Sheffield and Thame in Oxfordshire.
In 2022, turnover from property maintenance rose to £182.4 million (2021: £154.0 million).
Utilities
This division comprises Fastflow Energy Services and Fastflow Pipeline Services, which work out of Warrington and Washington respectively on gas and oil projects for clients such as Cadent Gas, National Grid and Northumbrian Water. In 2022, turnover rose to £72.1 million (2021: £48.0 million).
Property Development
This division works out of Swanley in Kent and delivers mixed tenure, low, medium and high-rise multifamily apartment schemes and single family traditional homes and includes subsidiary Partner Construction.
In 2021, turnover from property development rose rebounded to £180.8 million (2021: £159.3 million).
Glenigan Data
In the 2022 calendar year, United Living won £170.3 million-worth of work (2021: £143.1 million-worth) and rose to 49th in Glenigan’s rankings of the construction industry’s top 100 contractors (2021: 52nd).
Conclusion: Growing pains yet again
After a 39% fall in 2020, Glenigan’s research shows that orders at United House have risen in subsequent years, rising 25% in 2021 and another 19% in 2022. The group has entered Glenigan’s rankings of the industry’s Top 50 contractors as it targets turnover of £500 million a year.
The management plans to use the deal with Fastflow to create a business with annual revenue of £500 million. While turnover has begun to risen, after a dip due to the onset of the COVID-19 pandemic but the group has traded in the red for three successive years.
The merger between Bullock and United House was only starting to settle when the Fastflow deal went through. Both Bullock and United House had been suffering a fall in revenue and profits, although this was reversed in 2019.
The Fastflow deal has provided an entrance into utilities work, but there still appears to be growing pains at the rump United Living business. Costs have been addressed here and staff numbers trimmed. In 2021, the workforce was cut by 7% and another 8% in 2022, when the average number of employees was reduced to 482 with cuts in operational and administrative staff (2021: 525). This reduced the wage bill to £25.7 million (2021: £27.3 million). In contrast, at the former Fastflow business the average number of employees leapt to 660 people in 2022 (2021: 473).
The Fastflow deal was presented as a merger, but United Living was 90% owned by Lloyds Development Capital, which has exited as a result of the deal with this stake taken up by Fast Flow’s majority shareholder, Elysian Capital.
United House had purposely moved away from development, and in 2016 sold United House Developments, which carries out large-scale mixed-use regeneration, to housebuilder. A return has been made with the launch of a private rental business, United City Living although Glenigan did not register any planning activity in 2022.
The formation of a business to identify and acquire land to develop homes for registered social landlords and other public housing providers is a positive move. Regional expansion into areas where neither group had a presence, such as the Home Counties, Milton Keynes, Luton, Oxford and Reading, is being pursued and private rented sector housing schemes are coming online.
The risk level has typically been low but the order book has increased since 2020 through taking on larger projects. The value of the average contract award has virtually doubled in that time and 2022 rose to £11.4 million according to Glenigan (2020: £8.4 million).
Despite trading in the red, the group continues to expand and in 2021 acquired telecoms infrastructure business Great British Communications, which had turnover of £28 million. Cash at the bank and in hand rose to £40.7 million (2021: £25.9 million) but external bank debt rose to £70.4 million (2021: £53.6 million).
The consistent run of growing pains remains a problem that, going on previous corporate movements, may not be helped by further acquisitions.
Winning work with United Living Group
United Living is accredited to the Considerate Contractors scheme as an associate and is also accredited to CHAS, Constructionline, Investors In People, Green Dragon Environmental Standard, ISO 9001:2008, ISO 14001:2004, BS OHSAS 18001, the NHBC, ROSPA 2014, PAS2030 and Gas Safe.
The new group has used events such as Construction Futures to hold supply chain development events to look for new subcontractors and suppliers as the group looks to expand. Suppliers interested in working for United Living can register via Constructionline here.
Key United Living Procurement Contacts include:
Group procurement & supply chain director – David Jenkins, 01322-665522
David.jenkins@unitedliving.co.uk
National new business director – Paul Maghie, 07703 835776
paul.maghie@unitedliving.co.uk
Pre-construction manager – Richard Borg, 07718-566908