Directors celebrate as Richardson enjoys 9pc returns

Social housing developer Richardson Projects has reported a nine per cent profit margin over the past year.

Social housing developer Richardson Projects has reported a nine per cent profit margin over the past year.

Defying the downward trend for housing in the UK, the developer has increased its profit margins from 7.5 per cent in the 12 months up to August 2006, to nine per cent in the 12 months up to August 2007.

Executives in the company must be patting themselves on the back after a year which has seen housing prices tumble a massive seven per cent, with 2008 alone seeing a six per cent drop in average housing prices.

The company was bought out by Rok only three months ago for £41 million, after Rok chief executive Garvis Snook was attracted to Richardson because of its practice of using its own labour force for construction.

Perhaps in reaction to the downturn though, the directors' paycheques were more conservative this year, with the highest paid director taking home £178,000: a £97,000 salary and an £81,000 pension deposit.

In the year ending August 2006 however, the same director took home an impressive £436,000.