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Thursday, September 07, 2023

Wilson Bowden profit falls to 82.2m from 98.5m

Wilson Bowden reported a fall in pre-tax profits for the six months to June, down to 82.2m from 98.5m, below analyst forecasts of 86m. Revenue fell to 525.2m from 554.9m with the company blaming a sluggish housing market at the start of the year.

-Revenue in the half year was 525.2m (2005: 554.9m)

-Pre-tax profit was 85.5m (2005: 99.6m)*

-David Wilson Homes completed 2,135 units (2005: 2,190) at an average selling price of 206,300 (2005: 194,500)

-David Wilson Homes operating profit 74.2m (2005: 90.2m), operating margin 16.7% (2005: 19.6%)*

-Wilson Bowden Developments operating profit 20.4m (2005: 20.1m), operating margin 24.9% (2005: 21.0%)

* Earnings per Share of 60.6p (2005: 72.2p)

* Half year dividend increased by 10% to 16.5p (2005: 15.0p) reflecting

confidence in future growth prospects

* Owned and controlled land bank increased by 1,900 plots to 20,000 plots

* Forward order book 2,266 reservations, with sales value of 387.3m

(2005: 1,488, 270.5m)

* Before goodwill impairment 2.1m (2005: 1.1m) and reorganisation costs of

1.2m (2005: nil)

David Wilson, Chairman of Wilson Bowden, said: "2006 began with a sluggish housing market, but reservations and site numbers picked up strongly from Easter onwards. Volumes in David Wilson Homes were down slightly due mainly to the timing of new site openings and, as expected, margins remained under pressure. Wilson Bowden Developments delivered a strong first half performance, with operating profit and margin ahead.

"We have entered the second half with a record forward order book and record number of active sites - in line with our strategy of increasing housing volumes. We are seeking to protect margins by minimising build cost increases and controlling overheads as well as by increasing our strategic land bank.

"We are increasingly focused on improving asset turn and return on capital by exploring joint venture approaches to land purchase, increasing the use of site swaps, improving build processes and dual branding.

"Lastly, I was delighted to welcome a new generation of leadership to the Wilson Bowden Board, with the appointments of Greg Locke as Chief Executive, David Wilson Homes, and Jane Aikman as Group Finance Director."


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