Taylor Wimpey Prioritises Margin and Profit over Volume

In a Trading Statement issued today 18th January 2011 by Taylor Wimpey plc

Taylor Wimpey advised that it completed 9,962 homes in 2010 compared to 10,186 in 2009 as the firm looked to prioritise profit and margin over volume.

In the interim trading statement the firm said that operating profit and profit before tax would be ahead of the upgraded expectations set last November and margin on UK housing is expected to be 7%, up from 0.8% last year.

Taylor Wimpey says that having reduced build cost by 10% in the first half, it has delivered further savings in the past six months  which has resulted in the higher margin.

The firm says that it continues to be cautious in the face of constrained mortgage lending and continuing uncertainty in the wider economy. But it expects to continue to reduce costs and is encouraged by enhanced sales rates, prices and margins at recently opened outlets.

A full copy of the statement from Taylor Wimpey can be obtained from their website http://www.taylorwimpeyplc.com/ or the following link Statement Report

Onyx Construction Consultants are pleased to count Taylor Wimpey as one of its valued clients working with its Bury St Edmunds, Milton Keynes and Borehamwood offices and glad to see that they are doing well in the current market conditions.

If you are a house builder and need temporary assistance with your commercial needs or a subcontractor looking for an introduction to major house builders then contact Andrew Fella at Onyx Construction Consultants Ltd



Barratt Lowers Debt to £540m and Increases Operating Margin to 5%

In a Trading Statement Issued today by Barratt Developments for the 6 months to End of December ( its Half Year)

Barratt Developments said group revenues were around £875m for the half-year to end-December, in-line with the prior year period.

Average selling price (“ASP”) against the prior year equivalent period increased by c. 6% to £176k, with private ASP increasing by c. 11% to £192k, driven by changes in mix. Underlying selling prices remained stable during the period.

The group saw significant improvement in operating profit with operating margin increasing to around 5% in the period, up from 2.4% in the prior year period.

Net debt was lower than expectations at c. £540m, with full year guidance maintained at £400m to £450m.

Forward sales as at 31st December 2010 were in-line with the prior year at £645.7m.

Mark Clare, Group CEO, commented, “The Group has delivered a significant improvement in both average selling prices and operating margin even though sales volumes have been affected by difficult trading conditions. We are on course to make further progress in the second half as we open new higher margin sites and continue to be value and quality focused.”

A full copy of the statement from Barratts can be obtained from their website http://www.barrattdevelopments.co.uk/barratt/en/home or the following link Statement Report

Andrew Fella at Onyx Construction Consultants is pleased to have counted Barratt as one of his first Clients when he first went freelance many years ago helping them set up their new offices in the Eastern Region at Brentwood before they moved to new premises at Chelmsford a couple of years later having out grown the old offices. Its great to see some of the guys are still there and getting the job done.
If you are a house builder and need temporary assistance with your commercial needs or a subcontractor looking for an introduction to major house builders such as Barratts then contact Andrew Fella at Onyx Construction Consultants Ltd

Introduction Leads to Contract Award for Quinn Brickwork

Key Introduction Leads to Contract Award for Quinn Brickwork

Onyx Construction Consultants Limited are pleased to announce that another introduction made by them, between a valued contact at a Southern Area House Builder and one of their clients Quinn Brickwork Ltd. led to Quinn Brickwork securing a 19 unit site contract in Peterborough last month. In addition the House Builder having seen how Quinn Brickwork has performed with regards to programme and quality now wishes to negotiate the next phase of 24 units due to start shortly.

This introduction is only one of many made in the last 4 years between Onyx Construction Consultants specialist subcontractor clients and the many key placed contacts both business and personal that the directors of Onyx have at many of the House Builders, Contractors and Developers in the East Anglia and Northern Home Counties areas, leading to tenders being issued and contracts secured by our clients.

Onyx Consultants Ltd – Onyx Construction Marketing Service

In the past introductions have only been made with specialist subcontractors who are already one of our respected clients using the Onyx Estimating and Surveying services. This will shortly change with the introduction of Onyx Consultants Ltd our sister company and it’s Marketing Service.

As part of the Onyx Construction Marketing service introductions to our many business and personal contacts in the industry will be made available to those subcontractors who sign up for the service and meet the criteria needed.

More details of contract awards resulting from our introductions both recent and past together with referral and recommendation letters will be posted on the Onyx Construction Marketing blog and soon the Onyx Consultants Ltd website.

In the meantime if you feel that you would benefit from this service or know someone that will please contact us via email info@onyxconsultants.co.uk or contact Andrew Fella on 07798 640022.

Berkeley Group Increases Land Bank

As Part of its Interim Statement  issued last Friday 3/11/2010 the Berkeley Group gave details of its increased land bank, including traditional sites (one assumes not classed as brown field) in St Albans, Oxford and Horsham. Other sites acquired as their report suggests are in Prime London locations.

An Extract of the Land Section of the Interim statement is given below:

Land Holdings

 At 31 October 2010, the Group (including joint ventures) controlled some 28,914 plots with an estimated gross margin of £2,301 million.  This compares with 28,099 plots and an estimated gross margin of £2,038 million at 30 April 2010. Of the total 28,914 plots, 28,647 plots (April 2010: 27,094) are owned and included on the balance sheet.  In addition, 226 plots (April 2010: 935) are contracted and 41 plots (April 2010: 70) have terms agreed. In excess of 95% of our holdings are on brown-field or recycled land.  

The increase in the land bank is a result of new land acquisitions in the period which has seen Berkeley agree 13 new sites, covering some 2,500 plots.  These new sites include prime London sites in Westminster and on Hammersmith Embankment, traditional sites in St Albans and Oxford and a site in Horsham for over 1,000 units acquired through strategic land in its long-term pipeline. All of the sites agreed are in excellent locations in London and the South East with strong underlying demand for quality new homes where Berkeley can create vibrant new communities and enhance value through its development expertise. 

In addition to the 28,914 plots in its land bank, and after accounting for the transfer of the site at Horsham acquired in the period to the land bank, Berkeley continues to have approximately 10,000 plots in its long-term pipeline, which it envisages delivering over the next ten years.  This includes the latter phases of Kidbrooke and Woodberry Down, strategic land and a number of sites being worked up within St Edward Homes, Berkeley’s joint venture with Prudential.  Of a more long-term nature; Berkeley hopes these sites will come through into the land bank but they currently have an uncertain outcome due to planning policy or vacant possession issues.

In terms of planning, Berkeley entered the year having achieved new or revised planning consents on 38 of its sites in the run up to the May Election.  It is therefore very pleasing to have had a number of further notable successes in the first half of this year.  These include sites in Belgravia, Westminster, Greenwich, Roehampton and Oxford, and revised consents for schemes in Battersea and Acton and the second phase of the student scheme being developed in Clapham for Imperial College.  Through the ongoing re-planning and re-assessment process, the land bank includes a net reduction of approximately 400 plots due to a combination of re-planning densities and increasing individual unit sizes and removing plots that are no longer commercially viable. 

St Edward Homes accounts for some 1,400 plots in the land bank across three sites.  These include: Stanmore Place, where the first phase is selling well and development on later phases progressing and 375 Kensington High Street, which has been successfully launched to the market and where demolition work has begun.  In addition, Berkeley continues to work with Prudential to identify further sites to which St Edward Homes can add value and three of these are in the long-term pipeline.

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