Timber frame housebuilder Wilson Connolly could be vulnerable to a takeover attempt following a profit warning.
The company announced last week that it was expecting its third-quarter profits to be at least 20% lower than anticipated. The problem is believed to stem from a shortfall of 300 new home reservations against a target of 4,900 this year plus excessive build costs.
The warning triggered a 9% fall in the company’s share price and the admission of its new chief executive Allan Leighton that the business was ‘vulnerable to a bid’.
Mr Leighton, who said he is committed to building Wilcon’s value, has launched a review of operations that is expected to report by the end of the year.
In newspaper reports last weekend Mr Leighton was quoted as saying that the company was ‘pretty incompetent at getting timber frame houses up in an efficient way’.
Around 40% of Wilcon’s houses are built using off-site timber frame manufacture.
