Highlights
· Further improvement against each of our key financial objectives:
o Group operating margin increased to 13.1% (H1 2012: 11.0%)
o Group return on net operating assets*** increased to 14.3% (H1 2012: 11.9%)
o Tangible net asset value per share increased by 16% to 67.2 pence (H1 2012: 58.0 pence)
· 80% increase in adjusted earnings per share to 2.7 pence (H1 2012: 1.5 pence)
· 49% reduction in net debt to £68.4 million (H1 2012: £135.2 million)
· Interim dividend of 0.22 pence per share (2012 interim: 0.19 pence)
Strong UK operational performance:
o UK operating profit margin* increased to 13.5% (H1 2012: 11.2%)
o Completed 5,191 homes at an average selling price of £188k (H1 2012: 5,083 homes at £176k)
o Contribution per legal completion increased to £39.6k (H1 2012: £33.6k)
o Record order book of £1.3 billion (1 July 2012: £960.1 million) up 35% in value and 24% in volume to 7,101 homes (1 July 2012: 5,720)
o Extensive strategic landbank at c.102k plots with over 35k plots added in last three and a half years
o Significant reduction in Injury Incidence Rate to 116 per 100,000 employees and contractors (H1 2012: 259)
Pete Redfern, Chief Executive, commented:
"During the first half of 2013, there has been meaningful improvement in the housing market, with more positive consumer sentiment, a more available and affordable mortgage market, and the presence of Government mortgage schemes, all adding to a favourable outlook. Our business is ideally positioned to perform well in this environment with a strong land position and a very effective housebuilding operation. We continue to open all new outlets with implementable planning permission."
