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Company Results

Pochin PLC’s annual results for year ending May 2006
(September 2006)

The house building division of Pochin PLC generated a turnover of £7.7million (2005: £3.0 million) and its first significant profit contribution to the Group of £0.5 million (2005: £0.01 million) since it was established in 2003.

 

The Pochin PLC land bank has also been increased.  The Company anticipates an improvement in the current challenging market conditions over the next twelve months.  Pochin Plc has been active on seven developments during the year and completed sales of 48 homes (2005: 28).

 

Kier Residential’s annual results for year ending June 2006 (September 2006)

Kier Residential sold 1,522 homes in the year; a 25% increase over the 2005 total of 1,215 homes.

 

Average selling prices of £180,100 (2005: £181,700).

 

Revenue of £274.2 million from housing sales (2005: £220.8 million).

 

The slight reduction in average selling prices reflects a 2% reduction in unit size increase in the proportion of affordable housing sales from 12% of total sales in 2005 to 16% in 2006.

 

Operating profit from housing sales increased by 26.1% to £41.5 million  (2005: £32.9 million) at a margin of 15.1% on housing turnover (2005: 14.9%) in line with targets.

 

During the year £93.3 million was spent on selective land purchases, and on 30th June 2006 the land bank contained 5,863 units with planning consent (2005: 5,178 units) which, at 3.9 years’ worth of sales, is in line with its target holding of four years’ unit sales.  In addition to land with planning consent, Kier Residential also holds approximately 12,000 units of strategic land, mostly under option.

 

Kier Residential will be selling from approximately 27% more outlets during the year compared with last year and anticipates growth in unit sales for the full year, of which 42% are already secure. Similar to 2006, the Group expects the balance of sales to be skewed towards the second half of the year.

Abbey Developments PLC’s annual results for year ending April 2006 (September 2006)

The Group’s house building division completed 718 sales (UK 423, Ireland 295) at an average price of €256,000.

 

UK Trading

Abbey Developments PLC is targeting higher volumes this year but it anticipates margin pressures continuing particularly as older schemes, that are more profitable, are completed.

 

Abbey Developments PLC was able to add 143 more plots to its land bank and now owns or controls land with planning permission for 1,321 plots.

 

Bovis Homes Group PLC’s results for the six months ended 30th June 2006 (September 2006)

Bovis Homes Group PLC achieved a pre-tax profit of £53.1 million (stated before a one off pension credit of £3.5 million), representing an increase of 18% over the pre-tax profit of £45.1 million in the corresponding period of 2005.  Earnings per share improved by 18% to 31.4 pence (stated before the one off pension credit) compared with 26.7 pence in the first six months of 2005.

 

These results were generated from a higher volume of legal completions than the previous year.  In the first six months of 2006, the Group legally completed 1,262 homes compared with 1,089 legal completions in the same period last year.  There was a reduced contribution from social housing in the first half of 2006 with 141 social units (11.2% of total legal completions).  This compared with 246 social units in the first half of 2005 (22.6% of total legal completions).

 

The Group’s average sales price for the first half of 2006 was £188,700 compared to £179,700 for the comparable six months of 2005.  This represented an increase, year on year, of 5%.  The average size of a Bovis home legally completed decreased by 3% to 1,028 square feet compared with 1,060 square feet in the equivalent period of 2005.  Hence, the average sales price per square foot increased by 8.3%.  The increase in sales price per square foot was positively affected by the reduction in contribution from social housing year on year.  For private homes, the average sales price per square foot increased by 4.4%.

 

The Group’s gross margin for the first half of 2006 was 33.2%, in line with 2005’s half year gross margin of 33.3%.  The Group’s operating margin, stated before the one off pension credit, was 22.7% compared to 23.0% achieved in the first half of 2005.

Galliford Try PLC’s results for year ending June 2006
(September 2006)

Galliford Try PLC’s house building division specialises in individually designed developments, focusing on conversions and brownfield development.  The business operates as Midas and Gerald Wood Homes in the South-west, Try Homes in the South-east, and in the eastern counties of England as Stamford and Chartdale Homes.

For the year ending June 2006 Galliford Try completed 1,054 homes compared to 853 in 2005.  The average selling price rose slightly from £208,000 to £212,000.

 

Region	Revenue £ million	Average Selling Price
South-West	74	185,000
South-East	90	283,000
Eastern Counties	60	178,000

 

Galliford Try PLC posted a record profit from operations of £32 million, representing a margin of 14.3% on revenue, including joint ventures, of £224 million.

 

Wilson Bowden PLC’s profit decreases (September 2006)

Reduced site openings and reorganisation costs forced down Wilson Bowden PLC’s pre-tax profit and revenue in the first half of the year.

Pre-tax profit dropped 14% to £85.5 million for the first six months to 30th June 2006, while revenue in the half year was down 5.4% to £525.2 million.

The forward order book has 2266 reservations with a sales value of £387.3 million, up from 1488 reservations with a value of £270 million.

The costs of integrating Roland Bardsley Homes, which it bought for £49.7 million at the end of April, also affected profit with costs of £1.2 million.

 

Miller Homes Limited’s interim results for six months to June 2006 (September 2006)

Following the acquisition of Fairclough Homes, Miller Homes Limited delivered a 67% increase in sales to 1,776 units, with turnover rising 70% to £314 million.

 

Highlights:

 

Thirteenth successive year of interim profit growth;

29% increase in profit before tax and exceptionals to £35.7 million (2005: £27.7 million);

38% increase in profit before interest and exceptionals to £56.4 million (2005: £40.8 million);

Housing profits up 29% to £47.1 million (2005: £36.6 million);

Property profits doubled to £10.2 million (2005: £5.1 million); and

Record construction order book of £330 million.

 

Miller Homes is it planning to build 4,000 homes this year and aims to increase that figure to 5,000 homes within five years.

 

Oakdene Homes reports 165% rise in pre-tax profits
(September 2006)

Oakdene Homes PLC’s turnover for the first six months to 30th June 2006 was £14.85 million (2005: £13.53 million) and profit before tax was £2.1 million (2005: £0.8 million).

 

Construction is underway on the first 111 units at Oakdene Homes PLC’s main site in Newhaven.  These are due for completion later this year and in the first half of 2007.

 

The Company is also building at a site in Swaylands, Penshust, Kent.  The first phase, which is the construction and refurbishment of 28 luxury apartments in the existing building, was released for sale in July.

 

Sales during the first half included the remaining units on Oakdene Homes PLC’s sites at Purley, Maidstone, Nutfield and Reigate.  The Company also sold the remaining residual units from Honeygrove, which were acquired back in 2004.

 

Redrow Homes PLC’s results for year ending June 2006 (September 2006)

Turnover was £770.1 million compared with £780.4 million in the year to June 2005.  This was attributable to a lower level of activity in mixed-use operations with turnover in the homes business increasing marginally during the year.

 

Operating profit reduced to £132.8 million (2005: £154.0 million) and this was primarily influenced by lower margins in the Homes operations.
Group performance	2005/6 £ Million	2004/5 £ Million
Turnover	770.1	780.4
Operating profit	132.8	154.0
Legal completions	4,735	4,372
Signature	4,027	3,703
In the City	495	667
Debut	213	2
Average selling price	£161,700	£172,400
	£ Million	£ Million
Gross profit	77.8	189.3
Operating profit	133.8	147.4
Gross margin	23.2%	25.1%
Operating margin	17.5%	19.6%
Northern region
Legal completions	1,876	(2005: 1,832)
Average selling price	£158,800	(2005: £156,000)
Southern region
Legal completions	1,394	(2005: 1,250)
Average selling price	£163,300	(2005: £196,700)
Western region
Legal completions	1,465	(2005: 1,290)
Average selling price	£163,800	(2005: £172,200)

 

Strategy for growth

Increase output of core product through existing structure;

Expand the volume from debut range; and

Deliver additional revenue from regeneration and mixed-use schemes.

 

Short term outlook

Modest house price inflation plus proactive management of cost base to largely offset cost increases; and

Land bank provides capability to drive growth in Signature output and significantly increase Debut legal completions.

 

Medium term outlook

To increase supply of new homes recognised by focus in Government policy;

Constructive engagement required to solve issues in planning system and provision of major infrastructure; and

Government objective of increasing home ownership a positive for sector – but need to demonstrate a willingness to embrace imaginative solutions.

 

Ben Bailey Homes’ interim results for half year to end of June 2006 (August 2006)

Ben Bailey Homes Limited’s turnover increased to £50.9 million (2005: £45.0 million) with an improvement in operating profits to £8.35 million, (2005: £7.67 million).  Profit before taxation was £6.07 million (2005: £6.17 million).

 

Ben Bailey Homes Limited reported a satisfactory level of customer interest but increasingly used incentives to maintain sales volumes.

 

The Company sold 306 plots at an average selling price of £166, 212 compared to 306 plots in the first half of 2005, at an average selling price of £147,169.

 

The higher turnover and average selling price arose because of the product mix.  Ben Bailey Homes Limited has increased the number of plots held for future development to 2,408 (31st December 2005: 2,030) and its geographical spread has increased with 34 sites currently under development.

 

Bellway Homes Limited’s trading update (August 2006)

The Group recorded its fifteenth consecutive year of organic volume growth with the number of homes sold increasing to 7,117 from 7,001 at an average selling price of around £167,000.  It is anticipated that profit before tax will be in line with expectations and again, be at a record levels extending annual earnings growth record to ten consecutive years.

 

Bellway Homes Limited has continued with a policy of forward selling.  The value of reservations taken in the year was some 20% ahead compared to last year.  This has resulted in its order book on 31st July increasing to £561 million compared to £513 million at the same time last year, representing over 45% of target for 2006/07 being already reserved or contracted.

 

The Berkeley Group PLC’s 2006 annual results (August 2006)

The Berkeley Group PLC announced a pre-tax profit of £165.1 million (2005: £155.4m) for its year ending April 2006, an increase of 6.2%.

 

Revenue for the group was £917.9 million (2005: £794.5 million) of which £890.5 million (2005: £738.4 million) was residential revenue.

 

During the year, The Berkeley Group PLC sold 3,001 units at an average selling price of £309,000.

 

On 30th April 2006, The Berkeley Group PLC had forward sales of £581.9 million.  This is £105.1 million less than last year, but in line with the Group’s strategy.

 

Persimmon PLC’s interim results for half year ending June 2006 (August 2006)
Region	Completions	Average Selling Price	Price Change
North 23%	1,926	£169,432	+1%
Central 36%	2,968	£168,147	-1%
Charles Church 23%	1,866	£192,911	+4%
South 18%	1,466	£248,731	-11%
Total	8,226	£188,427
Change from June 05	+38%	+3%

Divisional Breakdown North
Yorkshire	761	£177,824
Scotland	713	£167,411
North-east	452	£158,491
Total	1,926	£169,432

Divisional Breakdown Central
North-west	752	£163,753
Birmingham	891	£160,866
Shires	769	£188,875
Eastern	556	£157,090
Total	2,968	£168,147

Divisional Breakdown South
Southern	372	£232,696
Western	1,043	£183,949
Wales	451	£180,820
Total	1,866	£192,911

Volumes

8,226 completions in first half (2005: 5,954 units) - Westbury acquisition added 1,868 units in the period;

Charles Church volumes up 158% at 1,466 - including strong organic growth of 56%; and

Good underlying organic growth of the “original” total Persimmon PLC business of 7%.

Average Selling Prices

Average selling price increased to £188,427 in first half reflecting the increasing proportion of Charles Church units and the impact of Westbury;

Core Housing increased to £175,349 in first half - up 1% on first half 2005 and 6% on second half of 2005; and

Average Charles Church price of £248,731 - 11% reduction from H1 2005 due to mix changes.

Taylor Woodrow Developments Limited’s interim results for the six months to 30th June 2006 (August 2006)

Taylor Woodrow Developments UK housing business achieved an increase of 5% in home completions, despite operating off fewer sites than in the equivalent period last year.  It ended the half year with an order book of £649 million, an increase of 8% over the same point last year.

 

Average selling prices were slightly lower at £193k (2005: £195k), reflecting an increase in the proportion of social housing completions from 9% to 14%.  Average selling prices per square foot increased by 3% over the same period.

 

The UK homes margin was lower than the equivalent period last year, but broadly in line with that achieved in the second half of 2005.  Taylor Woodrow has sold a similar amount of land to the first half of 2005; there have been an increased proportion of plots from more recently acquired larger sites, which inevitably attract a lower margin.

 

Taylor Woodrow Developments Limited has increased its land bank by 10% to 38,498 plots (December 2005: 34,985 plots).  Its strategy of taking options on land and working with the vendor to promote the sites through the planning process has delivered further success over the last six months.  44% of Taylor Woodrow Developments Limited’s land bank has been acquired from these strategic sources (2005: 40%).

 

The performance of Taylor Woodrow Developments Limited’s residual commercial property portfolio is no longer being separately reported and has been incorporated into the UK Housing results.

 

Housing Regional Breakdown 2006 H1
	Scotland & North	Central & West	East & South	Total
Home Completions	1,265	1,044	1,060	3,369
Average Selling Price £000	202	180	196	193

 

Product Breakdown 2006 H1
Product	2006H1	2005H1
Houses	55%	65%
Apartment	45%	35%
Private	86%	91%
Social	14%	9%
Price Breakdown
<£180k	55%	53%
£180-260k	30%	31%
>£260k	15%	16%

Housing by Type H1
	2006 H1			2005 H1
	Private	Social	Total	Private	Social	Total
1 Bed	208	83	291	165	42	207
2 Bed	1,205	254	1,495	1,032	157	1,189
3 Bed	779	98	877	845	65	910
4 Bed	652	18	670	790	11	801
5+ Bed	70	2	72	87	-	87
Total	2,914	455	3,369	2,919	275	3,194

George Wimpey PLC’s interim results for the half year ending 2nd July 2006 (August 2006)

 

Market Conditions

George Wimpey PLC completed on 7,822 homes in the six month period, which is a 25 year record, and has sought to reduce incentives; average selling prices show a slight increase on those in the second half of 2005 (H2 2005: £174,000).

 

UK Housing Financial Summary	H1 2006	H12005	Change
Legal Completions - Total	5,854	4,576	+28%
Private	5,138	4,154	+24%
Affordable	716	422	+70%
Average selling price	£175,500	£184,600	-5%
Private	£187,200	£194,500	-4%
Affordable	£91,711	£87,700	+5%
Revenue £million	1,030.4	846.6	+22%
Completions	H1 2006	H12005	2005 Full year
Apartments	40%	34%	36%
1/2/3 Bedroom houses	31%	32%	32%
4/5 Bedroom houses	29%	34%	32%

Private Development Price Mix
£51-100k	247	162
£101-150k	1,687	1,250
£151-200k	1,584	1,325
£201-250k	851	792
£251-300k	427	311
£301-500k	311	268
£500k+	31	46
Total	5.138	4,154

Private Development Geographic Mix
North	1,694	1,417
Midlands	1,547	1,197
South	1,775	950
City	122	79

Barratt Homes Limited’s end of year results (July 2006)

Total completions increased by 1.8% to 14,601 (2005: 14,351) at an average selling price of £165,800, down 3.7% on 2005 as a result of an increased proportion of social housing.

 

Private completions were 5.5% lower at 11,899, at an increased average selling price of £182,800, up 0.4%.

 

Social housing completions increased by 53.5% to 2,702, at an average selling price of £90,500, down 11% due to geographic mix.

 

Barratt Homes Limited strengthened the size of its land bank, which has now increased to c.66, 500 plots (2005: 61,000), including 7,500 plots (2005: 7,000 plots) agreed subject to contract.  This equates to 4.5 years' supply at current volumes (2005 4.3 years).

 

Total reservations are 8% better than a year ago and forward sales, at 1st July, increased to £845 million, up 9%, the second highest level achieved.

 

Record year for Gladedale Group as profits up by 48% (July 2006)

Highlights during the 12 months to December 2005:

 

Turnover of £483.3 million (up 39%)

Pre-tax profits of £61.7 million (an increase of 48%)

2,801 units completed in 2005 (up 50%)

Average selling price of £173,000 (just down on the 2004 ASP of £186,000).

 Crest Nicholson’s half-year results to month ending April (June 2006)

 

Highlights:

 

Turnover up 1% to £355.1 million (2005: £350.6 million);

Open market housing completions up 2.5% to 1,062 units (2005: 1,036);

Affordable housing completions up 72% to 516 units (2005: 300);

Total completions for 2006 expected to be over 20% higher than in 2005;

Housing turnover up 6.8% to £296.2 million (2005: £277.4 million);

Housing forward sales of £354.0 million; and

Over 85% of the unit sales required for the 2006 target have been secured

The average selling price was down to £190,000 (2005: £210,000), which the company said was a result of the increased volume of social housing.  Crest Nicholson PLC’s completions in this sector were up 72% at 520.

Redrow Homes' pre-close trading update for year ending June 2006 (July 2006)
Completions	2005/6	2004/5
Signature	4,027	3,703	+9%
In the City	495	667	26%
Debut	213	2
Total	4,735	4,372	+8%
Average Selling Price	£,000	£,000
Signature	166	166	2005 Full year
In the City	160	207	-23%
Debut	79	73	+8%
Homes Total	161	172	-6%

The Debut range is well placed to deliver significant growth and expect to increase output to 500 units in the new financial year.  The Company remains on course to meet its 2005 objective of delivering 2,000 Debut homes per annum.

 

Projections for the Debut range are:

2006/7: 213 completions;

2007/8: 500 completions; and

2008/9: 1000 completions.

 

Redrow Homes intend to complete 2,000 Debut range homes per annum by 2010.

 

Linden Homes Limited announces record year-end profit
(June 2006)

Linden Homes Limited had a record year in 2005 with their pre-tax profits increasing by 178% from £4.7 million in 2004 to £12.8 million.

 

Group turnover also had a record year, rising by 33% from £210 million in 2004 to £280 million in 2005.  The Group sold its North-west division to the Management in March, but despite this Linden Homes Limited still completed 1,100 new homes, an increase of 17%.

 

Willmott Dixon records tenth straight year of growth (June 2006)

Willmott Dixon recorded its tenth consecutive year of profit growth for the 12 months to 31st December 2005 with the housing division contributing a third of the Group turnover.

 

Highlights:

Record pre-tax profit of £10.5 million (2004: £10.1 million);

Record turnover £412.7 million (2004: £410 million); and

Secured forward order book in excess of £400 million (excluding framework agreements).

Oakdene Homes PLC’s preliminary results for year ending December 2005 (May 2006)

 

Financial Highlights

Turnover up 98% to £42.58 million; and

Pre-tax profit of £5.1 million in line with market expectations.

 

Over the past year, Oakdene Homes PLC was able to successfully integrate Honeygrove Group PLC, this acquisition having been completed in December 2004.  They also purchased a significant waterfront development project at Newhaven.

 

The major acquisition of the land at Newhaven is of significance to the Company.  The acquisition comprises the current marina and land at West Quay and Railway Quay.  Planning permission has already been granted for the first 115 units at West Quay and construction is well underway.  It is anticipated that the total development will be for around 640 residential units plus 50,000 sq ft of commercial space.  The first units set for completion and sale in 2006 with development of the remaining site continuing through to at least 2011.

 

Gleeson Homes Limited issues severe profit warning (May 2006)

Gleeson Homes Limited says its shift from speculative building to inner city regeneration will affect this year’s profits.  The house builder has warned that full year results will be significantly below market expectations.

 

The Group's refocus on regeneration schemes in the city centre also includes a series of disposals.  This included the sale of its concrete repair division in a £3 million management buy-out (confirmed in July 2006).

 

Gleeson Homes Limited’s interim results for the half-year ending December 2005 (April 2006)

 

Homes and Regeneration

Homes and Regeneration made an operating loss of £1.2 million (2004/05: profit of £2.2 million) on revenue of £46.4 million (2004/05: £50.1 million).

 

In the half-year, 245 units were sold (2004/05: 281) at an average selling price of £176,000 (2004/05: £178,000).  Of these, Homes accounted for 158 units (2004/05: 258) at an average selling price of £214,000 (2004/05: £201,000) and Regeneration 87 units (2004/05: 23) at an average selling price of £107,000 (2004/05: £88,000).