Investment: Prowting looks a good buy
Tuesday 03 November 1998
Smaller housebuilders' shares in particular fell sharply in the recent shakeout and are still down by a third from the mid-summer peaks. But if Terry Roydon, the departing chief executive of Prowting is right, the industry faces a slowdown not a slump.
Prowting's profits in the six months to the end of August rose 15 per cent to pounds 8.7m. Sales were down from pounds 798m to pounds 774m but the company has moved up-market, and prices rose 14 per cent to pounds 113,000, including like- for-like rises of 4 to 5 per cent. Dearer houses take longer to sell. The number of site visits declined as interest rates rose, and the proportion of buyers looking for part-exchange has risen to 38 per cent. But land prices have come off the top, houses are still far more affordable than they were a decade ago, and interest rates are almost certainly on the way down.
Profit forecasts have been reduced in recent weeks but analysts left Prowting unchanged yesterday at around pounds 19m in the full year, equal to earnings of 18.2p a share.
For the following year forecasts range from pounds 19m to just under pounds 20m. At 96p, up a penny yesterday, the shares are well down on the peak and at barely five-times forward earnings they look distinctly cheap in anything but a severe recession.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...