National housebuilder Wilson Connolly (Wilcon) dramatically improved its performance in 2002, with earnings before tax up 29% to £60.6m. And it has returned its timber frame operations to profit.
The group’s rapid turnaround in fortunes follows the implementation of an action plan by chief executive Graeme McCallum, appointed last year, which includes scaling down production at the Prestoplan timber frame business. Profits fell £19.7m in 2001, and these were attributed largely to problems with Prestoplan during the year.
Group production of timber frame homes this year is expected to be about 20% of total homes built, down from 50% a year ago. However, the company is now optimising its use of the construction method to aid cost-effciency at Prestoplan and, while Wilcon does not deny it may seek to eventually sell the operation, it says the plant has recently returned to profitability.
Turnover during 2002 reached £715m, with the average house selling price rising to £169,000 from £143,000 in 2001. Total legal completions actually reduced from 4,582 in 2001 to 4,002 last year.
Its new year order book was up 136% at £224m and housing operating margin was up 1% to 10.7%.
Wilcon has welcomed John Prescott’s housebuilding plans for the south-east but remains unconvinced that current government initiatives will provide practical solutions for improved delivery.
