Half year results for the six months ended 30 June 2009
- Pre-tax profit of £9.8 million after the exceptional release of £27.9 million of net realisable value provision (H1 2008: £36.9 million - after exceptional charge of £64.0m)
- Legal completions for H1 2009 of 4,006 units (H1 2008: 5,501) at an average selling price of £155,524* (H1 2008: £181,485)
- Total sales revenue of £611.8 million** (H1 2008: £998.4 million)
- Operating profit of £36.5 million*** (H1 2008: £75.7 million)
- Borrowings reduced to £494.2 million**** (H1 2008: £905.5 million) - ahead of expectations
- Year end debt now expected to be below £400 million - improvement on previous guidance
- Recent visitor levels exceeded those of last year and cancellation rates have been significantly lower throughout the period at c.16% (FY 2008: c. 30%)
- Current forward sales including legal completions since 1 July 2009 increased c.9% to c.£910 million (2008: £836 million)
- 64,347 plots of land owned and under control - representing c.7 years supply of land
- Investment in part exchange stock has decreased significantly to £11.4 million at end June (30 June 2008: £120.0 million)
- Recent introduction of HomeBuy Direct shared equity scheme by the Government continues to gain momentum and provides opportunities for first time buyers. Carrying value of shared equity asset on the balance sheet at 30 June 2009 £47.2 million (30 June 2008: £19.8 million)
John White, Group Chairman said: "We expect sales rates to remain resilient due to the successful destocking that has occurred in the industry combined with the continuing good levels of underlying demand for new homes in the UK. Recently, selling prices have stabilised in most parts of mainland UK. Future volume increases and price movements will be dependent upon mortgage availability, job prospects and the health of the general economy.
Our strong balance sheet, reduced debt, long landbank and strategic land opportunities, combined with an experienced management team provides an excellent platform to create value for shareholders."
* calculated from nominal value of turnover - before £11.2m adjustment to fair value shared equity sales (H1 2008: £nil)
** stated after £11.2m adjustment to fair value shared equity sales (H1 2008: £nil)
*** including the exceptional release of £27.9 million of net realisable value provision (H1 2008: £64.0m exceptional charge)
**** stated before finance leases and financing expenses