Brighter times for Wilson Connolly

HOUSEBUILDER Wilson Connolly has offered hope that its troubles may be over after it reported an encouraging start to the financial year.

The Northampton-based group told shareholders that early benefits were being delivered from a strategic review.

Wilson Connolly has overhauled its business in recent months after seeing profits almost halve to £35.1m last year.

The review found 'widespread confusion and demotivation' among the 2,200 strong workforce and a lack of a clear strategy.

Speaking at Wilson Connolly's annual general meeting, chairman Allan Leighton said the performance of the business in the first quarter of the current financial year had been encouraging and 'ahead of plan'.

'Our average selling price has continued to rise reflecting the changing sales mix of the business and the buoyant new homes market. Early benefits are being delivered from the outcome of the strategic review.'

Leighton said progress would show through in improved operating margins, with the group on track to meet targets of 15% by 2004. Operating margins were 8.6% in Wilson Connolly's annual results announcement.

The review has been led by Graeme McCallum, the former managing director of Alfred McAlpine who took over as chief executive from John Tutte in October. Three regional chairman have also been appointed.

However, the update failed to inspire investors today as shares, which have rallied in recent weeks, were down 2 1/2 p at 173 1/2 p by mid-afternoon.