27 February 2014 – interim results
The group has produced an exceptionally strong performance in the six months to 31 December with revenues rising by 41% to £363m and profit before tax more than doubling to £47.5m helped by the effect of the recovering housing market. Underlying earnings per share rose by 115% to 10.3p and an interim dividend of 1p was declared, the first interim payment in 6 years. Legal completions rose by 30% to 1,565 whilst the average selling price was 17% higher at £262,000. Net debt at the end of the period had risen to £149m (30 June 2013: £91.0m) due to increased investment in land to give gearing of 23% (30 June 2013: 14.9%). The second half of the group’s financial year has started well and despite the sharp rise in the share price over recent months it could still have further to go. Nevertheless further progress is likely to be more pedestrian and so we reduce our recommendation to BUY ON WEAKNESS.