Artisanal Sp.co Regulatory News (ART)

20 Jul 2007 07:00

Artisan (UK) PLC20 July 2007 20 July 2007 Artisan (UK) plc Post Year End Trading Update Artisan (UK) plc ("Artisan" or "the Group"), the residential house builder andcommercial business park developer, announces a post year end trading update forthe 15 months to 30 June 2007, and expects to announce results that will be inline with the recently increased market expectations. Artisan (UK) Developments, the commercial division of the Group, has performedstrongly delivering substantially greater sales and good margins for the periodjust completed. It has also commenced the new accounting period with strongforward sales. As regards investment property activity, the Group is continuingto assess further opportunities to add to the Watts Industries investmentpreviously announced. Rippon Homes Limited has found its East Midlands market challenging throughoutthe year and this has been reflected in lower margins than previously reported.However an improved site portfolio has allowed for sales of 160 units for thefifteen months, a strong increase compared with the previous year (12 months to31 March 2006: 107 units). This successful sales performance has added impetus to the continued quest torefresh the Group's land bank so as to replace existing sites and to provideland for additional outlets. The commercial division has recently secured abusiness park site in Kings Lynn and is in advanced negotiations for two furtherbusiness park sites. Rippon Homes has recently completed on sites at Bilsthorpein Nottinghamshire, Overseal in Derbyshire, Pontefract in Yorkshire, and also inMansfield. Other sites are also in advanced negotiation. The Group is strongly supported by debt facilities which have been increasinglyutilised as it invests in further land. The balance sheet for June 2007 willshow increased gearing over what the Board regards as the low level of 34% as at31 March 2006. The final results in respect of the 15 months to 30 June 2007 will be announcedat the end of September 2007. These results will reflect the period end change,change of revenue recognition basis and adoption of International FinancialReporting Standards as previously advised. The Board believe the change in yearend and revenue recognition will allow for consistency with its peer Group inthe industry. The current trading outlook is somewhat clouded by the pressures being exertedby monetary policy. The recent series of interest rate rises had alreadydampened the housing market in the East Midlands and this remains the casefollowing the last interest rate rise. The commercial customers continue tocome forward on a site by site basis and, though irregular in timing, aresufficient at present to maintain the impetus of this division. As separately announced today, the Board is delighted to welcome Michael Eyresto the Board of Artisan (UK) plc as the executive director responsible for theGroup's commercial development activities, Michael is currently the ManagingDirector of Artisan (UK) Developments Limited who with his team has beenresponsible for the recent good performance of the Group's commercialdevelopment activities. Artisan (UK) plc Chris Musselle Chief Executive 01480 436666 email@artisan-plc.co.uk Brewin Dolphin Securities Limited Nominated advisers 0121 236 7000Ifor Williams Bankside Consultants Financial PR advisers 020 7367 8888Simon Rothschild 07703 167065Louise Mason Company website: www.artisan-plc.co.uk This information is provided by RNS The company news service from the London Stock Exchange