Berkeley Group Overall Sales Reservations up 25%

House Builder Berkeley Group published and Interim Statement this week with a lot of positive details such as 25% increase in reservations and land purchases some of which were discussed previously in this blog back in December see our post Berkeley Group Increases Landbank details of the statement are given below:

The Berkeley Group Holdings plc

Interim Management Statement

Period from 1 November 2010 to 28 February 2011

18 March 2011

The Berkeley Group Holdings plc (“Berkeley”) today announces its Interim Management Statement in respect of the period from 1 November 2010 to 28 February 2011.

Overall sales reservations achieved in the period were some 25% ahead of the comparable period last year and cancellation rates are at historically low levels.  The average numbers of visitors per site since the beginning of the year has been consistent with the same period last year, reflecting the current mortgage market conditions, with an increase in the number of outlets leading to the higher levels of sales overall.

Forward sales currently exceed £800 million, providing confidence to invest in work in progress on our sites.  Build costs remain benign with underlying increases in fuel and commodities offset by excess capacity in the construction sector, although we continue to monitor this closely.   Berkeley’s strategy is aligned to investing during this period in the cycle.  As indicated in December with the release of the interim results, the level of investment in land and work in progress is forecast to result in a net cash outflow in the second half of the year and this is anticipated to continue into the next financial year when Berkeley expects to become moderately geared.

In the period, Berkeley has acquired a further 1,000 plots across 8 new sites bringing the total number of plots acquired in the year to 3,500 across 21 sites.  These include: a site in the City with an existing planning consent for some 750 new homes, a 337-bed hotel, 601 student bedrooms and 100,000 sqft of commercial space; a site in Kensington acquired by St Edward (our joint venture with Prudential) in close proximity to the existing 375 Kensington High Street development; and a number of sites in the Southern Home Counties and Oxfordshire for up to 20 homes each.

Berkeley has also obtained planning on two of its key London development sites in the period.  A planning consent for 752 homes and 140,000 sqft of recreational and commercial space which will include a hotel, gym, spa, bars and restaurants has been received at Tideway Wharf in the heart of the Nine Elms Regeneration Area and a planning consent for One Tower Bridge, a site jointly owned with the London Borough of Southwark, has been obtained for 400 homes, along with 90,000 sqft of cultural and retail space.  In addition, in February 2011, Berkeley announced an agreement to build a new station for Crossrail at its site at Royal Arsenal which will facilitate the delivery of 4,500 new homes and represents a major investment in the regeneration and infrastructure of the area.

The performance of the business over the last four months provides the Board with confidence and Berkeley anticipates reporting earnings at the high end of its expectations for the year ended 30 April 2011 and the investment in work in progress will enable a further growth in earnings in 2011/12 if overall market conditions permit.

 

A full copy of the statement from Berkeley Group can be obtained from their website http://www.berkeleygroup.co.uk/investor-information or the following link Statement Report

 

If you are a house builder and need assistance with your commercial requirements or a subcontractor looking for an introduction to major house builders such as Berkeley Homes then contact Andrew Fella at Onyx Construction Consultants Ltd. Tel:01473 743682 or email andrew.fella@onyxconstruction.co.uk

 

 

Taylor Wimpey Back to Profit £75.1m as Margins Strengthen to 7.5%

Housebuilder Taylor Wimpey plc reported a significant improvement in profitability in 2010, which the group said was driven by prioritising margin over volume.

 

Profit before tax and exceptionals was up 178.1% at £75.1m for the year to December, turning round from a previous loss of £96.1m. Revenue edged up 0.3% to £2.60bn from total completions of 14,272 homes, previously 15,166.

The group said that although completions fell in both the UK and North America, this was offset by growth in average selling prices.

Group operating margin rose to 7.5% from 1.7%. In the UK, operating margin was 7.1% against the previous 0.8%, while in North America the figure rose to 11.2% from 5.8%.

Adjusted EPS was 0.6p, against the previous loss per share of 4.3p. Net asset value per share increased to 57p from 47p.

No final dividend was declared. The group said it would continue to review its dividend policy in the light of its  financial position and future economic and market conditions.

The group said it had seen strong cash generation throughout the year, with net debt reduced to £654.5m from £750.9m.

CEO Pete Redfern said, ‘The significant improvement in our performance during 2010 reflects our disciplined focus on margin ahead of volume growth. ‘We have continued to improve the quality of our landbank and add value to our existing sites through replans and operational efficiency. We now have the financing  in place to enable us to continue that progress towards our aim of achieving double-digit margins in 2012.’

In the UK, the group said it had seen a positive start to 2011 with some price increases. In North America, markets appeared to have stabilised and there were signs of increasing consumer confidence. The group was evaluating proposals for the North American business and would update the market in due course.

 

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 very well in the current market conditions.

 

If you are a house builder and need 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

Persimmon Profits £95.5m as Margins Improve to 8.2%

Housebuilder Persimmon today reported underlying pre-tax profits of £95.5m for the year to end-December 2010, strongly ahead of prior year (2009: £7m).

Revenues were 10.5% higher at £1.57bn (2009: £1.42bn).

Legal completions increased 4.5% to 9,384 new homes (2009: 8,976), while the average selling price of £167,249 was 5.7% ahead of last year (2009: £158,272).

The underlying operating margin was 8.2% (2009: 4%) and Persimmon said its performance continues to strengthen.

Reported pre-tax profit was £153.9m following a net exceptional credit of £63m (2009: £77.8m, after £74.8m net exceptional credit).

Basic earnings per share were 38.3p (2009: 24.7p).

£225.6m cash was generated from operations (2009: £356.8m).

Gearing was 3% (2009: 16%) and net borrowings reduced to £51m (2009: £267.5m).

Net assets per share increased by 7.2% to 579.1p (2009: 540.2p).

Persimmon said it saw strong forward sales of £848m (2009: £898m).

A final dividend of 4.5p per share to bring the total dividend for the year to 7.5p per share.

John White, Group Chairman, said: “Despite a continuing low level of mortgage approvals, the Group is achieving improving returns and remains well positioned for the upturn in the housing market when it occurs.”

 

A full copy of the statement from Persimmon can be obtained from their website http://corporate.persimmonhomes.com/ or the following link Statement Report

Onyx Construction Consultants are pleased to count Persimmon as one of its valued clients working with its Northampton and Witham offices and more than pleased that its doing very well in the current market conditions.

If you are a house builder and need 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 cuts first half pre-tax losses to £4.6m – down from £178.4m

In a Statement released today Housebuilder Barratt Developments announced that it had cut first half pre-tax losses to £4.6m – down from £178.4m a year ago.

24 Feb 2011
Interim Results for the half year ended 31 December 2010

Highlights:

Revenues for the half year were in line with the prior year equivalent period at £877.6m (2009: £872.4m)
Completions for the period were 4,832 (2009: 5,053), including 36 (2009: 25) joint venture completions
Average selling price (excluding joint venture completions) increased by 5.7% against the prior year equivalent period to £175,800 (2009: £166,300), with private average selling price increasing by 10.8% to £191,900 (2009: £173,200), mainly as a result of mix changes
The drive to improve business performance and rebuild profitability led to a significant increase in operating margin to 5.0% (2009: 0.6%), with profit from operations in the first six months of £43.5m (2009: £5.2m)
Loss before tax for the period of £4.6m (2009: loss before tax of £178.4m)
Terms were agreed on £318.0m of land purchases, comprising 57 sites and 6,078 plots, which are expected to deliver attractive margins based on current selling prices
Net debt reduced year on year to £537.0m (2009: £605.3m) and is forecast to be around £400m at 30 June 2011 (30 June 2010: £366.9m)
The Group has delivered 0.57 (2010: 0.55) private sales per active site per week in the last six weeks, in line with the equivalent period in the prior year and up from 0.39 in the first half

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 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 by email at andrew.fella@onyxconsultants.co.uk

Galliford Try Pre-tax Profits up 29% at £17m

The Housebuilder and Construction Group Galliford Try’s pre-tax profits before exceptional items rose 29% to £17.0m in the six months to the end of December.

Group revenues rose to £575.9m – up from £570.0m last time – and the dividend is increased to 36% to 4.5p.

CEO Greg Fitzgerald said: “We are currently on track to deliver the objectives of our three year housebuilding expansion plan during the next financial year.

“The spring selling season remains crucial, and although it is too early to judge whether it will be sustained, the improvement in our sales rate during the first few weeks of 2011 is encouraging.

“Our strategy for managing our construction business in challenging times is working well and the underlying results give us confidence that we will be able to grow the business again when markets improve.

“Although the economic outlook is still uncertain, the board is encouraged by the group’s performance and progress in the first half of the financial year, and is confident in its strategy for delivering the objectives of its expansion plan.”

A full copy of the statement from Galliford Try can be obtained from their website http://www.gallifordtry.co.uk/investors or the following link Statement Report

If you are a house builder and need  assistance with your commercial requirements or a subcontractor looking for an introduction to major house builders such as Galliford Try then contact Andrew Fella at Onyx Construction Consultants Ltd on 01473 743682

Redrow Swings to £8.5m First-half Profit

Housebuilder Redrow plc swung to an £8.5m pre-tax profit in the first half from a previous £8.7m loss on the back of an increase in revenue and margins.

Revenue for the six months to December was up 15% to £216.1m from the previous £187.2m, despite difficult market conditions.

Average private selling prices rose by 16% to £170,500 from £147,300.

Gross margin increased to 13.4% from 7.2% as a result of both volumes and average selling prices increasing.

The group’s operating profit of £12.1m represented an operating margin of 5.6% and compared with a 2010 loss of £1.6m.

Net debt at the period end was £51.5m, up from £49.3m a year earlier, with gearing rising to 12% from 11%.

Redrow said its New Heritage Collection was proving a great success. The average New Heritage Collection private selling price was £196,000, 7% higher than equivalent homes in the previous Signature range.

New Heritage Collection homes accounted for 30% of private sales revenue in the half and the collection now featured on 50% of developments, due to rise to around 70% by June.

Current trading was in line with expectations.

Chairman Steve Morgan said, ‘In spite of the challenging conditions, Redrow’s decision to return to our traditional values with the introduction of the New Heritage Collection proved to be a great success for the business.’

‘While it is still too early to call the spring market the second half has started encouragingly with reservations during the first six weeks comfortably ahead of the same period last year.

‘These figures must be treated with a degree of caution however as they undoubtedly include some catch up from the December freeze.

‘Looking ahead, house prices have been stable for some considerable time now and we do not share the pessimism of some commentators that there will be a major fall in house prices during the coming year.

A full copy of the statement from Redrow Homes can be obtained from their website http://www.redrowplc.co.uk/corporate or the following link Statement Report

If you are a house builder and need assistance with your commercial requirements or a subcontractor looking for an introduction to major house builders such as Redrow Homes then contact Andrew Fella at Onyx Construction Consultants Ltd 0n 01473 743682

Bellway Homes Upbeat with Latest Trading Statement

Bellway Homes the 4th largest House Builder in the UK, today released another upbeat Trading Statement for the 6 months ending 31st January 2011. With details of increase in sales, increase in selling price and importantly increase in profit margin.

A full copy of the Statement can be seen by following the links at the bottom of this post but the high lights on its housing are posted below details regarding its land purchases and housing stock can be seen on our Onyx Marketing blog site:

Bellway plc

 Trading Update

 Monday 7 February 2011

Bellway is today updating the market as to its trading performance for the six months ended 31 January.

 The Group completed the sale of 2,332 homes, an increase of 85 units, compared to the six months ended 31 January 2010. The average sales price of these homes has risen from GBP155,871 in the same period last year to GBP168,000, an improvement of circa 8%. This increase, whilst aided by greater price stability during 2010, is primarily a result of the change in product mix as Bellway continues to change its focus away from apartments towards more traditional two storey homes.

 The operating margin is expected to exceed that achieved in the comparable period last year of 6.1% by almost 100 basis points.

This improvement in margin should continue in the second six months as more recently acquired sites start to contribute to completions…

The strength of this year’s spring selling season should be more apparent, when the results for the six months to 31 January 2011 are announced on Wednesday 30 March.

A full copy of the statement from Bellway Homes can be obtained from their website http://www.bellway.co.uk/corporate or the following link Statement Report

If you are a house builder and need temporary assistance with your commercial requirements or a subcontractor looking for an introduction to major house builders such as Bellway Homes then contact Andrew Fella at Onyx Construction Consultants Ltd 0n 01473 743682

 

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