South-East housebuilder Oakdene remains as upbeat as ever, having erected improved interim earnings during its historically weaker first half.

Chief executive Carl Turpin believes the Reigate-based group is on track for a much stronger second period, when its building programme ‘will start to mature’, work having begun on its two main sites at Swaylands and Newhaven. Turpin says 30 reservations have already been taken – ‘ahead of where we thought we’d be’.

Oakdene is on site at ten other locations in its regions, including moves into Essex and Hampshire. ‘We like the whole of the south-east England,’ reassures Turpin, happy that the region provides the perfect conditions for growth. Although the market is ‘firm, not racing’, there are ‘lots of buyers out there’. Supply is not racing away, keeping prices high, as ‘there are still planning permission problems in the South-East, which is good for us.’

A potentially lucrative planning application for 532-units in Newhaven has been submitted, which independent broker Numis suggests could be worth 4.6 times the current £12m book cost. Further over the horizon, new land acquisition agreements are in place for more than 300 additional units, providing plenty of opportunity to keep improving prospects in the long-term.

If the market continues to go its way, Oakdene should vastly improve on its performance last year, when Turpin presided over a profits fall of 19% per cent. Independent broker Numis forecasts a near doubling of pre-tax profits to £10.1m, with ensuing earnings per share of 22p. This puts the shares on a prospective p/e under eight – cheap and worth buying.

Oakdene Homes	AIM	£6.02m	12.00p	0.00p
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