Group
Record profits achieved through successful execution of strategy
Record earnings per share, increasing by 18% to 71.7p
Return on net assets improved to 16.6%
23% increase in full year dividend payment reflecting our strong financial position and the board's confidence in the future
Modest net debt of £14.4 million at 30 June 2013 (2012: net cash of £22.5 million)
Housebuilding
Strong margin performance with 11% increase in housebuilding operating margin to 13.1% (2012: 11.8%)
Revenue in line with last year despite a small reduction in the number of completions (inclusive of joint ventures) to 2,932, consistent with our focus on developments offering superior returns on capital (2012: 3,039)
Strengthening market demand, assisted by the Government's Help to Buy scheme and greater availability of funding, supports 16% increase in sales currently reserved, contracted or completed at £405 million (2012: £350 million)
Record 11,300 plot landbank with 86% now acquired at current market values (2012: 81% of 10,500). Good performance from strategic land
100% of land required for 2014 financial year in place, 90% of land secured for 2015
Construction
Order book maintained at £1.7 billion (2012: £1.65 billion) with pipeline of opportunities increasing
In continuing challenging market conditions, a robust construction margin of 1.7% in line with our expectations (2012: 2.0%)
Strong cash management with a year end construction cash balance of £145 million (2012: £146 million)
87% of current year's planned revenue secured (2012: 86%)
Greg Fitzgerald, Chief Executive, commented:
"We have made excellent progress as a group in the financial year and delivered a record profit before tax. We have also significantly increased the full year dividend reflecting the board's confidence in the future.
Housebuilding has delivered another very strong year of trading. This has been achieved in a disciplined manner following a doubling in size of the business in the preceding three years. Our deliberate investment in high return land opportunities, particularly in the South and South East, together with a greater focus on margin performance and efficiency gains and an improving market means we are well placed to deliver further good growth.
Construction has achieved another impressive performance against the background of a market that remains challenging, by focusing on its principles of disciplined contract selection, protecting margin and prioritising cash management. There are encouraging signs of an improving market on which we are well positioned to capitalise."
