Last updated 29 March 2021
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 than1,100 people and turning over nearly £400 million.
Financials
In the 12 months to March 2020 fell back to £254.0 million (2019: £275.0 million) but the group crashed into the red. At an operating level, United Living lost £5.6 million (2019: £4.9 million profit). Before tax, the deficit was even larger at £6.5 million (2019: £3.5 million).
In the 12 months to March 2020, turnover at Fastflow slipped to £137.5 million (2019: £137.5 million) and operating profits fell to £4.7 million (2019: £8.8 million). At a pre-tax level, profits fell to £4.6 million (2019: £8.6 million).
To view financial details for United Living Group and Fastflow go to Companies House and use Company ID 09187624 and 05114630 respectively.
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 on a number of major long-term agreements from A2 Dominion’s £400 million refurbishment framework (Project ID: 20236996) to the £500 million PROSPER – Planned and Responsive Repairs and Maintenance Contractor Framework (Project ID: 20468880).
United Living Infrastructure Services
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.
United Living Infrastructure Services
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.
United Living New Homes
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.
Glenigan Data
In the 2020 calendar year, the enlarged United Living Group won £117.9 million-worth of work (2019: £192.8 million) and fell to 57th position in Glenigan’s rankings of the construction industry’s top 50 contractors (2019: 53rd).
Conclusion: Growing pains … again
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 but after this deal turnover rose by 15% in the year to March 2019 and profits increased 8%.
The subsequent 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.
The idea was to create a business with annual revenue of £500 million, but so far that has not worked out. Given that only a small period in the latest accounts cover the onset of the COVID-19 pandemic, the blame cannot be wholly attributed to the virus.
Combined revenue for the two businesses in 2020 was below £400 million and after a surge in turnover in 2019, revenue and profits both fell at Fastflow. Utility infrastructure work fell at Fastflow to £62.4 million (2019: £67.0 million). Given that this was a driver for the takeover, this is a concern but at least the business remains profitable.
Earnings at an EBITDA level were still positive at United Living with a profit of £7.5 million (2019: £11.5 million), but the bottom line was in the red after booking £6.2 million-worth of exceptional items. Turnover also retreated, while net cash slumped to £18.7 million (2019: £33.3 million).
Staff numbers at United Living edged up to an average of 565 people (2019: 550), which pushed the wage bill up to £31.4 million (2019: £29.0 million), while at Fastflow staffing slipped to 586 people (2019: 605) as the wage bill firmed to £22.7 million (2019: £22.5 million).
As the furlough ends and with revenue down, cost cutting seems inevitable. Glenigan’s research shows that orders fell 39% in 2020 and United Living did not feature in the top 10 rankings of contractors for any of the UK’s 12 economic regions.
With the group focused on maintenance work and smaller projects, the risk level is low and the average contract award in 2020 was valued by Glenigan at £6.9 million (2019: £7.7 million)
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 2020 at United House or Fast Flow.
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.
Providing the group can manage its liabilities and cash, the newly enlarged group should be able to recover but a target combined revenue of £500 million looks unlikely in the short term.
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. Fastflow is accredited to the Cyber Essentials scheme and the full Water Industry Accreditation Scheme.
Key United Living Procurement Contacts include:
Group procurement & supply chain director – David Jenkins, 01322-665522
David.jenkins@unitedliving.co.uk
United Living Property Services business development manager – Paul Maghie, 07703 835776
paul.maghie@dwsupportservices.co.uk
United Living Infrastructure Services business development manager – Glenn Halton, 07718-559642
glen.halton@fastflowenergy.co.uk
United Living New Homes pre-construction director – George Moroney, 07718-566908