Westbury plc reports a 25% rise in pre-tax profits to £40.7m for the first half of 2002 and says its Space4 modular timber house factory should break into profit next year.
Total group turnover for the six months ending August 31 was £345m, up 30% on the corresponding period last year.
Chief executive Martin Donohue said the Castle Bromwich Space4 factory was helping to speed up construction while improving build quality. Continuing industry labour shortages and government initiatives for a rapid build solution to meet affordable housing needs were also expected to help the business expand.
However, the factory made a £1.9m operating loss for the half year, attributable, said deputy managing director Colin Cole, to the current low level of production.
Mr Cole said: “The focus has been on the factory. We could have force-fed the units through but in reality what is more important for Space4 is getting it right for the future.
“What we have actually achieved this year is very encouraging. We have got to the stage where the factory can produce 40 homes per week from a single shift.”
Production for this year will be about 600-650 homes, fewer than half that earlier envisaged. Once production reaches 2,000 homes per year, by the end of 2003, the business is expected to move into profit.
Space4 is now supplying its first non-Westbury customer and reports growing interest from other housebuilders and housing associations.
Westbury chairman Geoffrey Maddrell remained “confident” of Space4’s long-term success.
