The improvement in the housing market in south east England has rippled out to the Midlands, said housebuilder Tay Homes today.
An improved performance at its Midlands company was the main driver behind a big turnaround in the group’s performance.
But it said the market ripple moving out from London had so far had little effect on its other businesses in the north and south west of England and in Scotland.
Results for the year to June 30 showed pre-tax profits of £7.9m, up from £1.1m a year ago, on turnover up from £110m to £131m.
Operating profit rose from £4.4m to £8.7m and figures were also given a boost by a one-off profit of £2.7m from the sale of a non-trading subsidiary.
The number of homes sold by Tay rose by 180 in the previous year to 1,584, with more than half of sales still requiring help from part-exchange deals.
The Leeds-based group said all five of its trading areas contributed to profits, but its Midlands company had seen the market improve at the start of the last financial year.
Chairman Trevor Spencer said: “The improved group performance last year was assisted by the better trading of the Midlands company, perhaps due to the market ripple moving out from London.
“Whether similar advantageous conditions will be experienced shortly in the northern companies remains to be seen, but the group is in an excellent position to continue its progress and the board is confident of achieving targets for the year.”
He added the north west company had improved on its disappointing results from the previous year, while the south west company, which had only a small turnover, made a nominal contribution to profits.
Tay said scarcity of land and anticipated house price rises had forced up land values, particularly for green field sites.
Shareholders get a total dividend of 7.5p, up from 7p.
PA News 14/10/97
