Group managing director Jamie Boot said the firm would consider buying back more shares if their poor performance continued. He said: “We are still disappointed with the share price. If it further weakens, then we will consider more buy-backs.”
The group, which bought 1 million shares between November 1998 and the start of 1999, said in April that it intended to buy more. Since then, its share price has dropped 10p from 215p to 205p.
Despite its poor share price, the company’s pre-tax profit rose 9% to £4.1m in the six months to 30 June. Turnover was up 60% to £107.9m.
If it further weakens, we will consider more buy-backs
Jamie Boot, Group Managing Director
The profit rise was achieved despite difficult conditions in the group’s plant hire market and narrowing margins in construction.
Chairman John Reis said: “Construction remains competitive and, while there is still work available, securing it on appropriate risk–reward terms remains challenging.”
The firm pointed to housing, property and land management as growth areas. The group expects housing completions for 2000 to comfortably exceed that for 1999. Reis said: “Interest rates, inflation and confidence are the key ingredients, all of which are currently favourable.”
