A construction firm from Gloucestershire has used its annual report to state frankly its views on the housebuilding sector.

Year-on-year comparisons - which show a fall in profits and turnover - do not do Newland Homes justice, following on from what the business called an "exceptional" 2017/2018.

Stories this year have already described its best start to the year for reservations for new houses since 1991 and also seen it receive a Sunday Times BDO Profit Track 100 Award for 2019.

"Turnover for 2018 would have been greater had it not been for the Brexit effect which we believe certainly dampened the market in the second half of 2018.

"2017, as demonstrated, was an exceptional year and so direct comparison with 2018 alone could be taken to indicate an unexpected drop off in performance.

"2017 was an increases sales year that is followed a steady increase in investments in WIP in previous years.

"We had not forecast that 2017 could be repeated, but were expecting 2018 to be continued improvement on 2016," said David Foreman, managing director of Barnwood-based Newland Homes, in its annual report - for the period to December 31 2018.

While stating the business was well placed to continue its theme - of steady growth and profits -

it made it plain another of the major issues facing its sectors attempts to build more homes.

"As we have stated repeatedly in the past the excessive time taken to get planning permission followed by the equally frustrating delays in obtaining the technical approvals required before development can commence places an unfortunate restriction on the timely delivery of new homes.

"As we are increasingly in the position to operate from more sites we are able to mitigate the negative effect of delays without too significant impact on margins.

"Our reputation as a good and prompt paying develop continues to help us retain and attract the highest quality sub-contractors we need.

"Any slowdown in the housing market quickly translate into increased pressures on cash flow and margins.

"As we have now secured our four year £25 million RCF we consider that this, combined with our significant shareholders funds, puts us in a strong position to deal with an increased pressure from the market.

"It remains evident that as a nation we are failing to meet the increasing need for new quality housing and as such we believe there will be a strong demand for our product."