Group
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 completions (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 completions (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
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)
Peter Truscott, Chief Executive, commented:
"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."
