Tuesday, February 10, 2009

AIM-listed Wren Homes suffers a drop in turnover to just ВЈ84,000

Wren Homes, house builder specialising in retirement homes, made a pre-tax loss last year of ВЈ1.1m on a turnover of just ВЈ84,000.

The figures cover the 12 months to 31 July 2008.

Wren is listed on AIM – the junior portion of the Stock Exchange.

In the previous year there was pre-tax profit of ВЈ760,000 on turnover of ВЈ2.2m.

The 2007 figures were enough to give Wren a profit margin of 35%.

A statement with the latest figures reports: “In light of difficult market conditions, the company is taking the opportunity to reduce its cost base.”

It said that it had a manageable debt position and “is renegotiating some outstanding loans that have come up for renewal”.

Preserving cash is paramount, say the directors and while they believe there are sufficient funds to pay a dividend, there won’t be one until the property market gets back to normal.


AIM-listed Wren Homes suffers a drop in turnover to just ВЈ84,000


After a cash outflow from operating activities in 2007 running to ВЈ1.3m there was a further cash outflow of ВЈ4.7m in 2008.

Wren has started the building works of its first Extra Care development at Warlingham, Surrey. There will be 54 units in all and the scheme should be completed in spring 2010.

After getting under way in November, 110 people have registered interest in buying a unit.

Extra Care is defined by the government as being positioned between traditional retirement homes and nursing homes. It represents a step further towards the provision of a wider range of services to support the independent elderly so that they may continue to live for longer in the comfort of their own homes.

Four months ago, property developer Dominic Wainford unvested ВЈ4m into Wren. The move has given him a place on the board.

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