Volumes of housing starts in the year to the end of September were 179,500, down from 182,000 the previous year. And it is increased housing volume, not rising house prices, that help brick suppliers. In the last year, brick dispatches in the industry were down 2.5 per cent to 2.96bn. Brick prices rose slightly.
For the year ended 30 September, Baggeridge’s pre-tax profits were pounds 5.8m, up from pounds 5.3m, on turnover of pounds 44.0m (pounds 39.4m).The Government has recognised that a big increase is required in the number of houses built. The hold-up is land shortages, with development beset by planning delays and the protection of greenfield and greenbelt sites. The year started with its own broker predicting a profit tumble, but the company was saved by the recovery in the housing market, which started in the spring.
However, brick suppliers have not enjoyed the same boom as housebuilders, who have sat back and enjoyed profits growth on the back of house price inflation. Tomorrow, e-primefinancial is expected to debut at a large premium to its 2p float price. The group, run by former derivatives guru Gene Grant, plans to set up or buy an Internet- based bank to rival the likes of the Prudential’s egg. Another, Internet Indirect is rumoured to be coming to AIM next week at 5p. It plans to invest in low-risk on-line firms such as software and infrastructure providers.. BAGGERIDGE BRICK yesterday delivered a creditable 10 per cent growth in profits. Followers of the stock believe that the company is preparing to launch a website to market its products.
The foray would enableWalker to save money ondistribution and keep a tighter rein on its stocks. It could also help itsailing share price, which have slumped from ahigh of 107p in 1995 to yesterday’s 44.5p.KEEP AN eye on two AIM Internet floats. Software company Pegasus was flat at 401.5p despite whispers of a bid, possibly from the US.SEAQ VOLUME: 1.7bnSEAQ TRADES: 78,514GILTS INDEX: 107.26 +0.16f.guerrera independent.co.ukTHE WALLPAPER maker Walker Greenbank could soon see its name plastered all over the Internet. Vague bid rumours sent media agency Hunstworth 4p better to 23.5p, just like property tiddler Regalian, down 0.25p to 30p. Education specialist Lorien put on a learned 24.5p to 118p on corporate action talk. Rival Medisys fell 1.75p to 69.25p despite talk of a deal with tomorrow’s results.
Clothes retailers did not look so clever after broker CSFB issued a sweeping sector downgrade citing concerns over Christmas sales. Downtrodden Arcadia shed 4.75p to 65.75p, while Marks & Spencer lost 15.5p to 270p.CSFB’s bearishness was also behind a 37p fall to 241p in transport group Arriva.Among the minnows, drug group SkyePharma shot 3.5p higher to 49.75p on whispers of a major licensing contract. However, AstraZeneca lost 71p despite denying being involved in a US suit on genetically-modified food.In the midcap, hotels group Greenalls checked in a 25p rise to 283p on growing bid talk and the prospect of a juicy cashback in the near term, while car hire group Avis Europe motored 12.5p ahead to 205p after a bullish trading update.Talk of a bid deal pushed freight specialist Ocean 69p better to 1290p, while on-going Wal-Mart bid talk sent supermarket group Morrison 4p higher to 124p. Railtrack, 114p better to 1001, continued to steam ahead as the watchdog confirmed market rumours of a lenient regulatory review. The prospect of a huge railway repair work sent Jarvis 10p higher to 240p.Drug stock rebounded with Glaxo, 50p better to 1695p and SmithKline Beecham, 14.5p higher at 792p, excited by renewed takeover talk. Colt plummeted 200p to 2758p, Cable & Wireless lost 70p to 972p, while Marconi, the old GEC, fell 84.5p to 924p.The hi-tech midcappers were hit even harder. Palm-top computer maker Psion logged on to a 234.5p fall to 2430p, while computer services specialist Admiral collapsed 135p lower to 1420p.
