Housebuilder Wilson Connolly struck an upbeat note today after making “tremendous progress” in its battle to halt falling profits.
The Northampton-based firm said the recovery programme implemented earlier this year had left it on course for a strong year.
Pre-tax profits in the six months to June 30 eased to £16.1m from £21.1m but Wilson said the impact of changes was now being felt.
Chairman Allan Leighton added: “The benefits of the recovery will increasingly be seen in the coming months and into the next year.”
Wilson Connolly has overhauled its business in recent months after seeing bottom-line pre-tax profits almost halve to £35.1m last year.
The strategic review discovered that previous management had been unable to cope with pace of change within the group and that there was a “widespread confusion and demotivation” among the 2,000 strong workforce.
Announcing results today, the company said it had successfully focused on quality rather than quantity during the first half of the year.
That resulted in 178 fewer completions at 1,887 although average selling prices rose from £138,000 to £166,000 to lift turnover 6% to £340m.
Tighter control on cash has also meant a £52m reduction in group debt to £188m while the group has introduced a standard design approach to enable homes to be completed more quickly and at a lower cost.
Other initiatives have seen the reduced use of more expensive timber frames and the introduction of a new management structure.
The company added that it now had a record forward order book of £300m and looked on course to hit its previously stated recovery targets for 2004, including moving operating margins above 15%.
Leighton added: “We have made tremendous progress in getting the group back on track. We are meeting or exceeding all of our targets in a trading environment that remains very robust.”
Operating profits from housing completions rose 15% to £25.9m but the bottom-line figure was distorted by the contribution in the 2001 figures from profits made on the sale of Wilson Connolly’s operations in Scotland.
EGi News 05/09/02
