The Investment Column: Beazer looks good value
Friday 27 March 1998
No doubt the fact that it failed to smash analysts' forecasts like Barratt did 24 hours had something to do with it but it still produced results in line with expectations.
Highlighting growing planning delays which are causing land prices to escalate hardly helped its case, but the group is not unique in facing these problems and it still managed to grow operating margins by more than 2 percentage points to 12.2 per cent. And its long land bank should give extra insurance against a future rise in costs.
A sharp rise in the house building sector in recent months has also prompted investors to consider tucking away some profits.
However Beazer, like Barratt, has one of the most respected management teams in the sector which makes it a more attractive bet that most.
Beazer's completions rose 12 per cent and selling prices were up 4 per cent, and the group should be able to maintain this sort of growth rate for the next few years.
Charles Church, its recently acquired upmarket housebuilder, has been restructured and is now firing on all cylinders.
Broker Williams de Broe forecasts current year profits of pounds 74m, putting the shares on a prospective p/e ratio of 11. Good value.
- 1 Autistic adults could take pure MDMA to 'reduce social anxiety'
- 2 Stolen Instagram photo sells for $90,000
- 3 Before you complain about your GP, this is what you need to know about actually doing the job
- 4 Charlie Charlie Challenge explained: not a Mexican demon being summoned — it's gravity
- 5 Paracetamol Challenge: Mother of girl killed by overdose pleads with teenagers not to take part
Iran launches anti-Isis cartoon competition 'to expose true nature of Islamic State'
'Don't blame all men for rape' campaign backfires spectacularly
Fifa corruption arrests: How Chuck Blazer rinsed money from the beautiful game
Fifa corruption live: Uefa to consider pulling teams from Fifa tournaments if Blatter stays
Ukip MP Douglas Carswell says he felt his safety was 'seriously at risk' after he was surrounded by anti-austerity protesters
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
The day that Britain resigned as a global power
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Australian man punched in the face for defending Muslim women from abuse on train
A nation of inequality: How the UK is failing to feed its most vulnerable people
EU referendum: David Cameron to deny EU migrants and under-18s the chance to vote
iJobs Money & Business
£30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...
£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...
£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...