Countryside Props CSP did what for a house builder, is the unthinkable, it slashed its average selling prices with the result that for the year to 30th September, completions rose by 28% overall and the forward year end order book stood at a record level. The rise in completions was 17% in the partnership division and 31% in the private division. The private average selling price was reduced by a massive 23% to £515,000 and not surprisingly customer demand remains strong. The private average selling price in the partnerships division, however was increased by 12% to £343,000 with the strange explanation that this was due to strong price growth in outer London and regional cities. The logic of all this appears to be dubious to say the least because it indicates that we should, logically speaking, be expecting bad news from the private house builders whereas the opposite is more likely. (but see Telford Homes below)
Telford Homes TEF expects pre tax profits for the half year to the 30th September will be significantly lower than they will be in the second half of the current financial year and than they were, last year. Shareholders must understand that this is all down to the timing of completions and the company’s answer to this is to base the interim dividend on what they expect the full years profits will be, rather than on the actual outcome of the first half. It is understood that there is no question of a refund being asked for if the boards expectations for the full year are wrong.
Dunelm Group DNLM Trading in the first quarter to the 30th September was boosted by favourable weather which helped to produce strong growth, as the company outperformed the homewares market. Revenue rose by 24.8% reduced to 9.3% on a like for like basis. % new stores were opened in the quarter and five more are still to come.
Page Group Plc PAGE Gross profit for the groups third quarter grew by 8.8% in constant currency terms but with the poor old UK the laggard, with a fall of 7.6% due to those old favourites, challenging market conditions and the impact of Brexit. Only one other country showed a decline and that was Australia, down 2%, whilst the mighty French grew strongly, up 21% and the US led the pack with a rise of 29%. Foreign exchange movements also gets a mention, having contributed 3% points to the profit growth.
Wood Grp (John) Plc WG. has been awarded a new five year multi million dollar contract by Total to provide onshore maintenance services at it Lindsay oil refinery. There is a right to extend the contract for a further 2 years. Woods CEO immediately goes for the jargon and says that the new contract will help the company to broaden its downstream footprint but thankfully makes no mention of pipelines.