Wimpey treated unfairly by City
The Investment Column
Wednesday 03 September 1997
That seems unfair, as Joe Dwyer, the Wimpey chairman and chief executive, has delivered on nearly all his promises. Yesterday's interim results to June showed the UK's biggest house-builder swinging from a loss of pounds 8.6m to profits of pounds 12.5m in the six months to June. The half-way dividend, held at 2p, is covered for the first time for years, gross margins in both Wimpey Homes and McLean are at 20 per cent or above and both operations are on target to reach 6,000 house completions by 1998 or 1999.
Wimpey appears to have done well out of the Tarmac swap. However, the market retains fears that the group is having to spend lavishly to lengthen its land bank, particularly at McLean and in the south. The pounds 144m spent on land this year leaves Wimpey Homes' land reserves at 3.1 years' sales and McLean's at a thinnish 2.5 years. But Wimpey does not appear to be overspending, with land costs at between 20 and 25 per cent of sales price, while long-term land banks remain strong.
Indeed, with the housing market in upswing at the moment, Wimpey should squeeze at least three more years' growth out of its basic business, while also moving into new areas such as luxury homes, refurbishment and sheltered housing.
Full-year profits of pounds 60.8m would put the shares on a forward rating of just 11. Too low, but likely to remain so while fund managers PDFM and Mercury Asset Management sit on around 50 per cent of the shares.
tvSteven Moffat reveals the actor was dying to take on the role of the Time Lord and says he is excited to see what he will do with the character
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
Krokodil in Mexico? Teenager hospitalised after 'injecting drug into her genitals'
Nelson Mandela memorial: Cheers, jeers and a masterclass from Barack Obama that stole the show
- 1 Mountain goats' miraculous escape from avalanche captured in dramatic video footage
- 2 It’s shameful that our universities have accepted gender segregation under pressure from the most oppressive religious fanatics
- 3 Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
- 4 Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
- 5 Selfie at funeral: Cameron squeezes in on Obama snap at Mandela memorial
- < Previous
- Next >
iJobs Money & Business
£45000 - £55000 per annum + Training and Benefits : Harrington Starr: A leadin...
£59999 - £80001 per annum + Benefits: Pro-Recruitment Group: Senior Manager in...
attractive: Citifocus: Highly prestigious Investment Management house based in...
£70000 - £90000 per annum + benefits + bonus: Pro-Recruitment Group: Our leadi...