The company, which said pretax profit almost doubled in the full-year, said market conditions have returned to a more seasonal pattern of activity, meaning fewer people buying in the summer, with more in the spring and autumn. The comment comes after
“If we look back a year ago we went through an extraordinary period which immediately followed the launch of Help to Buy, “
“We found that last summer was unique in that the momentum that we saw in the spring just carried on through to the summer – so we are comparing against something that is unusual. This year the market began to quiet down in late June into July and August. But, I think we welcome a bit of moderation in the market. We are expecting sales rates to moderate from where they were twelve months ago and for us this is more stable and steady moving forward.”
The company is now targeting revenue of
Like its peers, the company has ramped up housebuilding in the face of strong demand. It said legal completions rose 27% to 3,597 compared with 2,887 a year earlier, spurred by the
The first phase of the Help to Buy scheme in
Official figures releases Tuesday showed that out of a 48,393 Help to Buy completions since the scheme began, 82% have been made by first-time buyers. The majority of the scheme has been taken up in the north of the country.
During the year,
The sales rate for the last financial year reached a level of 0.70 per week, compared with 0.62 per week a year earlier.
"Now that Help to Buy has settled down, we do not expect any further increases in sales per outlet. Further growth in the business now needs to come primarily from growth in outlets rather than sales rate,"
At the period-end the company said it was operating from a total of 103 outlets compared with 92 a year earlier.
"An increase in the number of outlets is absolutely necessary to enable
The message from the company has been reflected in
The improvement was led by housebuilding again, although the rate of expansion in the residential construction sector moderated somewhat to a three-month low. Civil engineering activity rose at the fastest pace since March and commercial construction activity continued to increase at a rate that was close to its fastest pace since the summer of 2007.
Input costs across the construction sector rose at the fastest rate since
“We feel confident in
“We are ploughing ahead with
“Last year, there were some companies that paid some prices for land that they will live to regret. Furthermore, the market had been entered by quite a lot of overseas funds and some who were inexperienced in the
The company said it did make some progress in terms of its land bank. During the year it secured a total of 6,092 new plots, of which 2,139 were converted from its forward land bank.
At the period-end the company's land bank totalled 16,724 plots, an 18% increase on the previous year. However, the average plot cost rose to
"Market conditions have returned to a more seasonal pattern of activity. We have substantially increased our land bank, which should see a good growth in the number of outlets during the year," Morgan said in the company's statement. "This, combined with our strong order book, leaves me confident that the group will see another year of significant progress."
On the back of its performance the company increased its dividend to
Most Popular Stories
- U.S. Families 'Extraordinarily Vulnerable': Yellen
- Larry Ellison Steps Down as Oracle CEO
- Hillary Clinton to Address CHCI Conference
- Alibaba Prices IPO at $68 a Share
- Apple Locks Itself Out of Devices
- Veterans to Get Training as Solar Panel Installers
- Hispanics Doubt Marco Rubio's Chances
- Wildfires Rage in California
- John Cantlie Delivers ISIS Message to Save Life
- Alibaba: Today China, Tomorrow the World