This full year update for the year to 31 July was strong, as expected, given the favourable market background with record completions of 7,752 homes at a average price up by 5% and operating margins up by 3% to over 20%. They have also topped up their land bank by a record £620m and have a stronger forward order book and despite this they still only have £39m of debt. A new proposed division in Kent following on from one in the South West this year should also help to bolster growth in the year ahead.
So a good update as expected and the outlook still seems positive in the absence of a sharp rise in interest rates and another recession as demand for housing remains strong. The shares have however had a strong run again in the last month so they may pause for breath, although looking at the figures they reported today I think we could see some more upgrades before the figures are actually reported. Overall a strong hold here as it trades on around 10x with a 3.2% yield for next year before any changes to forecasts. It is also likely to remain in the MCIS Portfolio as it continues to score reasonably well with a CIS of 92 in today's scores.