Mar City (MAR) is a small regional housebuilder with a complex past and an explosive rate of growth. Following a number of acquisitions between the various trading arms of Mar City - which brought together the contracting side and the land bank into one unit - the house building operation is really starting to accelerate.
This was especially noticeable after the introduction of the government’s Buy to Let scheme last year, which helped boost the number of contracts the company won to build houses. Indeed, since the consolidation in December, the group has been busy raising fresh funds to expand the land bank. The group now plan is to acquire at least 2,000 plots in the coming year, which would be the equivalent of three year’s output.
The group also plans to expand using a new modular system of construction, which is expected to deliver significantly higher margins because build costs are much lower. The largest of these will be developed in Colindale in north London.
Broker WH Ireland expects adjusted pre-tax profits for 2014 of £11.6m, giving EPS of 8.3p (2013: £3.4m/7p).
| MAR CITY (MAR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 144p | MARKET VALUE: | £159m | |
| TOUCH: | 140-145p | 12-MONTH HIGH: | 152p | LOW: 18p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 22 | |
| NET ASSET VALUE: | 60p | NET CASH: | £17m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p)† | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | nil | -0.1 | -0.5 | nil |
| 2011 | 1.1 | -1.3 | -5.4 | nil |
| 2012 | 9.0 | 1.0 | 3.9 | nil |
| 2013 | 24.8 | 3.2 | 6.5 | nil |
| % change | +176 | +220 | +67 | - |
Ex-div: - Payment: - †Adjusted for December 2013's 1-for-10 share consolidation | ||||
