Annual results for the year ended 30 June 2016

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I am delighted to announce excellent results for the year. We have achieved further progress on margins in Linden Homes, increased our mixed-tenure output in Partnerships and Regeneration, and continue to make progress in resolving older contracts in Construction, whilst building and delivering a reliable and high quality order book. We have reorganised management in all three businesses during the year, creating the right platform for future progress in both volume and margin. Reflecting the delivery of record results and our continuing confidence in the business, we are proposing an increase in our full year dividend of 21%.

The decision to leave the European Union inevitably creates a backdrop of uncertainty for the new financial year. However, we have been encouraged by visitor levels and sales rates at Linden Homes through the summer. The balance of our businesses and the strength of our order books mean that we are well-placed to manage the impact of this uncertainty. Quote

Peter Truscott / Chief Executive

Results Centre

  • Revenue1
  • (including joint ventures)
  • £2,670m
  • Group revenue1
  • £2,495m
  • Profit before tax
  • £135.0m
  • Earnings per share
  • 132.5p
  • Dividend per share
  • 82.0p
  • Net debt
  • £8.7m
  • Group return on net assets2
  • 25.3%
  • Profit before tax, pre-exceptional3
  • £135.0m
  • Earnings per share, pre-exceptional3
  • 132.5p


  • Record profit following another strong year with growth across the Group
  • 21% increase in full year dividend payment to 82 pence
  • Minimal net debt of £8.7 million at 30 June 2016 (2015: £17.3 million)
  • Return on net assets improved to 25.3% from 23.3%
  • Management reorganised to continue to improve operational excellence in all three businesses

Linden Homes

  • 3,078 completions4 (2015: 2,769) producing an 8% increase in revenue to £841 million (2015: £779 million)
  • Significant margin increase to 17.5% (2015: 16.0%)
  • Sales per outlet up 2% on last year, with 19% growth in sales reserved, contracted or completed to £510 million (2015: £427 million)
  • Linden Homes landbank of 11,700 plots5 (2015: 13,550 plots) with a 14,500 total Group landbank (2015: 15,750)
  • 100% of land required for 2017 financial year in place and 85% of land secured for 2018
  • Restructuring implemented generating annualised savings of over £5 million from FY 2017

Partnerships and Regeneration

  • Growth in mixed-tenure revenue to £67 million from 526 completions4 (2015: £56 million and 408 respectively)
  • Contracting revenue lower at £234 million (2015: £273 million), slightly constrained by procurement delays following the Government's rent reforms
  • Margin improving to 3.9% (2015: 2.9%)
  • Growth in landbank to 2,800 (2015: 2,200) plots
  • New Bristol office opened in July 2016 and a new Central Southern office planned for the current year
  • Contracting order book of £865 million (2015: £850 million) and mixed-tenure sales reserved, contracted or completed of £73 million
  • Partnerships and Regeneration teams merged to enhance strategic and operational focus


  • Construction margin of 1.1% from revenue of £1,503 million (2015: 1.2% and £1,293 million respectively)
  • Order book of £3.5 billion (2015: £3.8 billion)
  • 85% of this year's planned revenue secured (2015: 90%)
  • Cash continues to be strong at £161 million (2015: £173 million)

1'Revenue' includes share of joint ventures' revenue of £175.5 million (2015: £82.3 million). 'Group revenue' where stated excludes share of joint ventures.

2Group return on net assets represents profit before tax, exceptional items, finance costs and amortisation compared to average net assets.

3Exceptional costs in 2015 of £3.7 million related to the integration of Miller Construction. There were no exceptional costs in 2016.

4Completions net of joint venture partner share were 2,691 (2015: 2,566) for Linden Homes and 394 (2015: 308) for Partnerships and Regeneration.

5Linden Homes landbank includes 2,311 plots (2015: 1,967) held in joint ventures.