Artisanal Sp.co Regulatory News (ART)

16 Feb 2007 07:00

Artisan (UK) PLC16 February 2007 Artisan (UK) plc Trading Update Artisan (UK) plc ('Artisan' or 'the Company'), the housebuilder and commercialbusiness park developer, releases the following trading update in respect ofthe three months to 31 December 2006 which is provided as part of a move to the revised accounting reference date of 30 June. In addition, due to the changesof revenue recognition, as previously announced, as part of the conversion toIFRS, Artisan is not providing comparative figures for this quarter. Sales for the period are summarised below: Three months to Nine months to 31 December 2006 31 December 2006 Residential £3.18m £14.49mCommercial £2.56m £7.02m TOTAL £5.74m £21.51m Rippon Homes Completed sales of residential units rose from 62 for the six months to 30September 2006 to 82 for the nine months to 31 December 2006. Although thethree months to 31 December were expected to be seasonally quiet, in the eventNovember and early December were more robust than expected. Margins continueto be pressured by the need to provide incentives on sales and from the use ofnewer land. Overheads in this business have remained in line with managementexpectations. Although the market for land, particularly with planning permission, remainsextremely competitive, Rippon Homes was successful in securing the three sitesannounced last month, with the purchase of a further site due to complete shortly and sites at other locations at an advanced stage of negotiations. Artisan Developments Artisan (UK) Developments, the Company's business park development subsidiary,completed the sales of four units to an investor on its St Albans site inDecember. In addition, during the period this business entered into a forwardsale on an 11,000 sq ft office at Cygnet Park in Peterborough and a forwardlease of a further 11,000 sq ft office also at Cygnet Park. These are allsignificant and profitable transactions. On the forward sale only the landvalue and initial build valuation have been recognised in the period toDecember. The forward lease provided no contribution at that stage, but inJanuary a forward sale of the freehold of the building subject to the forwardlease was completed. The majority of the build turnover will be recognised inthe remainder of the financial period to 30 June 2007. Whilst thesetransactions are extremely encouraging, Artisan (UK) Developments Limited willcontinue to attract the regular sales that form the core of its tradingactivities. The exceptional activity on the larger sales has been a little offset by a slightly quieter time on the regular sales. We believe thisreflects the underlying variability in demand rather than any response torising interest rates as yet. Outlook Although it is proving challenging to purchase quality land at appropriatevalues, we are pleased to report that the strategy of investment in land forthe future is moving ahead and the Board believes that the platform for growthis being achieved. We can see very positive signs that our strategy on thecommercial side will be rewarded. The growth in commercial activity is mainlyon existing land stocks and we are working to increase the opportunities toacquire more commercial outlets. At Rippon, the Board is comfortable that its expectations on sales are beingmet, although the period after the New Year has not proved quite as robust asthe same period last year and the traditional Spring season remains key, asever. In addition, the Board is currently examining the possibility of utilising itsin-house skills to establish a property investment arm within the Business, topurchase and hold commercial investment properties both from the Company's current development property portfolio and outside. We will updateshareholders on our strategy in this area in due course. Artisan (UK) plcChris Musselle Chief Executive 01480 436666 email@artisan-plc.co.uk Brewin Dolphin Securities Nominated advisers 0121 236 7000LimitedIfor Williams Bankside Consultants Financial PR advisers 020 7367 8888Simon Rothschild 07703 167065 Company website: www.artisan-plc.co.uk This information is provided by RNS The company news service from the London Stock Exchange