Less than three years after buyout, housebuilder concedes relisting is an option to fund future expansion.
Kent housebuilder Ward Holdings has admitted it may turn itself back into a public company, two-and-a-half years after leaving the London stock exchange in a management buyout.

Ward was one of several housebuilders (others included Cala Homes and Linden Homes) to go private in 1999 and 2000. Analysts have long felt that these firms might relist to fund expansion plans.

Finance director Mike Lethaby said Ward would consider returning to the stock exchange in two years.

The management team believes that the firm needs to have a turnover of £100m before a listing would provide a reasonable platform for investment. Annual results to 31 October, released this week, showed turnover to be £77.9m, up £8m on the previous year.

Lethaby added that taking the company public was one of two options. The other is to buy the 20% of the company owned by venture capitalist Phildrew Ventures Fund, thereby giving the management greater control over investment.

Phildrew owned 70% of Ward until the management team acquired 50% last year. The management now owns 60%, the banks 20% and Phildrew 20%.

In his chairman's statement David Holliday said: "As a result of the strong performance since the original management buyout of the group's holding company, Ward Homes was able to refinance the business during the financial year. As well as providing a partial exit for the venture capital investor and increasing the management stake in the business, extra working capital facilities were obtained to fund further expansion."

In the year to 31 October 1998 the company posted a £10.1m loss following a re-evaluation of its assets.

Since Holliday led the £34m buyout in July 2000, results have steadily improved. Pre-tax profit was £13m last year, an increase of 10.2% on the previous year.

Holliday has argued in the past that delisting allowed management to focus on the business rather than trying to please the City.

In his annual statement, Holliday noted that the housing market remained strong, contrary to recent press reports.

However, he said delays in the planning system had slowed down the purchase of land and noted that the number of Ward plots with planning permission remained at 1100, the same as in 2001.