17 July 2018 – trading update
The company has released a trading update for the year ended 30 June 2018, ahead of the results announcement on 12 September. It expects to report strong pre-exceptional full year results, in line with previous guidance. Net cash as at 30 June 2018 was £97m versus £7.2m a year earlier, with average net debt for the year below previous guidance at £227m (excluding the benefit of the rights issue receipt of £150m net). Good progress has been made across all three group businesses. Linden Homes has delivered sales growth in line with expectations and at a further significantly improved operating margin. It started the new financial year with sales exchanged and reserved of £366m. Partnerships & Regeneration has a strong order book, benefiting from growing demand and opportunities in both contracting and mixed tenure. Construction’s underlying performance has been good with current and new projects expected to deliver improved margins. The outlook for the current financial year is said to remain in line with management’s expectations. This update is reassuring and we keep our BUY rating.