16 April 2014 – trading update
A positive trading update from the housebuilder ahead of its results announcement for the year to 31 March has confirmed that pre-tax profits for the year just ended will be more than double the previous year. The group has benefited from its focus on London and the strength of the housing market there and it has already sold 98% of the homes expected to legally complete in the current financial year. The group has also stated that it expects pre-tax profits to double again by 2018, a sign of confidence in its future. With pre-tax profits of £18.0m forecast for the year just ended for earnings of 23.8p, we retain our recommendation of FIRM HOLD.