Mar City (AIM: MAR.L) the London and Midlands focused housebuilder today announces its interim results for the six months ended 30 June 2014.
Summary of results
- Further excellent progress made in first half of 2014.
- Revenue up 192% to £25.5m and underlying operating profit* increased by 212% to £3.4m.
- Ground-breaking new modular construction methodology launched in London and Midlands.
- Land bank increased to 1,656 units and new £40m debt facility signed on 31st
Commenting on the results and outlook, Tony Ryan, CEO of Mar City plc, said:
“Mar City made excellent progress in the first half of 2014, as we achieved further significant growth in turnover and profits, following the transformational equity raise and land acquisitions completed in December 2013.”
“The Group launched its ground-breaking new modular construction methodology on sites in London and the Midlands and has received widespread critical acclaim. One of the many benefits of this system is certainty on costs and insulation against traditional cost inflation, combined with an ability to significantly improve the speed of construction.”
“The Group has also started to benefit from the strength in the UK housing market, as the first open market sales completed using the Help to Buy scheme and have combined with strong social housing sales completions.”
“The Company’s financial resources have also been further strengthened with the agreement of the new £40m Revolving Credit Facility announced on 31 July, and we are well positioned to continue to secure additional sites in the second half of the year. It is our intention to remain highly selective in all future land acquisitions, ensuring we are purchasing the right sites, in the right location, off market, at the right price.”
“We have acquired a further 1,215 plots across London and the Midlands in the first half, adding to the 512 plots secured in December 2013 and this should enable the significant growth forecast in the second half of 2014 to continue into 2015. We will continue to build our land bank this year and with newly emerging opportunities, the target is now to create a land bank of at least 5,000 units by the end of the current year.”
“As originally forecast, the growth profile for 2014 carries a second half weighting, as all of the sites acquired in December 2013 were due to start generating sales in the second half of the year. Accordingly, having delivered in the first half, we remain confident that we can achieve full year market expectations.”
“We continue to position Mar City to take full advantage of a strong housing market and to deliver significant sustainable growth for the Company over the foreseeable future. We believe we are insulated against any geopolitical events, as we are at the affordable end of the market and we believe we can deliver strong returns to our shareholders”.