Artisanal Sp.co Regulatory News (ART)

7 Apr 2005 07:00

Artisan (UK) PLC07 April 2005 Artisan (UK) plc Trading Statement - Year to 31 March 2005 In keeping with current market practice this trading statement is issuedfollowing the end of the Group's financial year. The preliminary announcement ofthe Group's results for the year to 31 March 2005 will be announced in July2005. Following a busy and successful conclusion to the financial year, Artisan (UK)plc is confident that the results for the year to 31 March 2005 will besubstantially ahead of the current markets expectations of pre-tax operatingprofits (before the cost of goodwill and exceptional items) of circa £1.7millionand reflect a significant growth in profits over the previous year. During the 12 months to 31 March 2005, performance of the residential market hasbeen mixed with the second half of 2004 being particularly difficult with housebuyers nervous of future house prices. However January 2005 started with arenewed vigour as buyers returned to the market culminating in a significantnumber of sales achieved shortly before the year end. After the positive startto 2005, the market in which Rippon operates has slowed and Rippon is contendingwith aggressive discounting and incentive packages from the larger residentialdevelopers keen to maintain volume operating in the area. The commercial market by contrast has been building in strength all yearculminating in a very positive finish for the year. In particular we haveachieved a sale of the stock Vantage Park units to an institutional investor atthe very end of the financial year. This pleasing success in disposing of muchof the available stock has consequently reduced available stock for the start ofthe coming year. The steady sales of developed buildings over our sitesthroughout the year and profitable sales of land plots for other developers andoccupiers to develop their own buildings has resulted in both a return tosubstantial profit for the division and a significant reduction in capitalemployed in commercial development. The Board's comments as regards profits do not allow for the eventual outcome ofthe appeal court hearing, heard in February with judgment reserved. Thisconcerned the action by Infiniteland and Mr Aviss against Artisan concerning thedisposal of Bickerton Construction Ltd. It is very much hoped we will shortly beable to report a conclusion to this matter. The threatened legal action by the Liquidator of Bickerton Construction has notprogressed since we last reported in December. As stated, provision has beenmade for the continuing costs of defending these actions but having regard tofinancial reporting standards, no provision has been made for any otherliability that Artisan may incur as a result of the liquidator's threatenedaction. The search for a second housebuilding company has not resulted in the purchaseof a suitable candidate as yet. Your board is determined that an acquisitionfrom the few companies that become available will only be at terms thatadvantage Artisan shareholders. In the meantime we have increased our programmeand funding allocation to further develop Rippon Homes' activities and inparticular extend the depth of the land bank. Although the year to March 2005 has generated particularly strong returns, theshort to medium term outlook for the housing market still contains mixedmessages. Whilst the strength of the current year end in commercial activity mayhave drawn activity from 2006, the Board sees no reason why the outlook for 2006should not be viewed with confidence, providing positive market conditionsremain consistent through the forthcoming year. Artisan (UK) plc: 01480 436 666 email@artisan-plc.co.uk Company website: www.artisan-plc.co.uk Chris Musselle, Financial Director Martyn Freeman, Chief Executive Seymour Peirce, Nominated advisers Sarah Wharry 020 7107 8000 Bankside Consultants, Financial PR advisers Simon Rothschild 020 7444 4153/07703 167065 This information is provided by RNS The company news service from the London Stock Exchange