28 May 2014 – final results
The company has announced final results for the year to 31 March 2014, with pre-tax profits more than doubling to £19.2m (2013: £9.0m) despite revenues falling slightly. Gross profit margins increased significantly which led to the large increase in profits helped by strong market conditions. Earnings per share rose to 26.4p (2013: 14.3p) and the dividend for the year rose to 8.8p (2013: 4.8p). The group also ended the year with net cash balances of £4.8m (2013: net debt of £34.4m) although it has received £45.3m of advanced funding from deposits on new homes (2013: £20.1m) and it also raised £20m through a fund raising last June. Thus the increase is not as impressive as may first appear. The net asset value per share at 31 March was just over 177p putting the shares on a significant premium to peers in the sector. News that mortgage lenders are tightening their lending criteria in London, where the company operates, may also have a negative effect on the group. The shares no longer look cheap and we suggest TAKING PROFITS.