The Investment Column: Prowting has good foundations
Tuesday 04 November 1997
Prowting, one of the smaller quoted house-builders, is no exception. Even after an exceptional charge of pounds 700,000, pre-tax profits trebled in the six months to the end of August to pounds 6.8m. Sales jumped by one-quarter to 798 units and the average selling price rose by just under 6 per cent to pounds 94,800. Operating margins doubled to 11.3 per cent.
Magnus Homes, acquired in February, accounted for 200 units sold and contributed pounds 2m to operating profits, before factoring in the interest charge on the pounds 12.6m cost of the acquisition. The extra sales helped Prowting cut back on part-exchange sales, boost prices and increase margin.
Magnus also brought in tax losses which reduce the tax charge to a sustainable 22 per cent.
Land costs are rising but a three-year land bank has been maintained and sales this year should reach 1,750 units. Broker Panmure Gordon has upgraded forecasts for the current year from pounds 14.5m to pounds 16.25m, equivalent to 15.3p of earnings, excluding the exceptional item.
The shares rose 4.5p to 117.5p yesterday, still some way off their 12- month high of 143.5p in February. That is less than eight times prospective earnings, a rating which still reflects heavy losses in the recession and the narrowness of the market because of the majority stake in the hands of family members. Buy.
newsAs the world remembers Mandela the hero, the prison where he spent 27 years seems all the more brutal
arts + ents... and a chance to paint Booker Prize winning author Hilary Mantel
danceUnder Tamara Rojo's inspired direction, it seems possible that it could challenge the dominance of the Royal Ballet. We meet some established names and rising stars
travelDiscover Uruguay's jet-set beach resort, an Atlantic enclave with plenty of art and culture to explore on the side
Mountain goats miraculously survive avalanche in the Alps
The ten coldest places on Earth
Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
Government delays EU immigration report because it is too positive
'I'm experiencing austerity as well', says Princess Michael of Kent
- 1 Mountain goats' miraculous escape from avalanche captured in dramatic video footage
- 2 Gurdwaras-turned-food banks: Sikh temples are catering for rise in Britain’s hungry
- 3 Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
- 4 Government delays EU immigration report because it is too positive
- 5 'I'm experiencing austerity as well', says Princess Michael of Kent
- < Previous
- Next >
iJobs Money & Business
£45000 - £70000 per annum + Bonus + Benefits: Harrington Starr: Technical Impl...
£65000 - £90000 per annum + Bonus + Benefits: Harrington Starr: Rogue Trading ...
£35000 - £45000 per annum + BONUS + BENEFITS: Harrington Starr: A leading, Cit...
£40000 - £50000 per annum + benefits + bonus: Harrington Starr: Data Analyst -...