Weak markets impact Assa Abloy

SECURITY products group Assa Abloy has posted a smaller than expected rise in fourth-quarter earnings, blaming weak markets, especially in Europe.

The group, whose UK headquarters is in Willenhall, said the disappointing markets had eliminated any growth in like-for-like sales.

The group has been on the acquisition trail and has added several businesses in China to its portfolio to boost trade in the emerging market. However, it said more established markets such as North America had yet to fully recover from the collapse of its housing market.

Full year earnings before interest and tax rose to £0.21bn (2.03bn Swedish crowns) compared with 2011.

Johan Molin, President and CEO, said: “The full-year operating income for 2012 improved by a full 13%, with strong contributions coming from efficiency improvements and the continuing relocation of production to low-cost countries. Operating cash flow also remained very strong as a result of increased profit and improved effectiveness in managing our working capital.”

Long term, the group said it expected an increase in security-driven products demand. The focus will be on end-user value and innovation.

Wincanton set to deliver results in line with expectations

LOGISTICS group Wincanton has said it continues to trade in line with expectations.

It said its Contract Logistics business had performed robustly in a challenging climate and new contracts were helping to deliver growth, while the opening of three new distribution centres is also set to benefit the business.

Within Wincanton’s Specialist businesses, the Records Management division performed well, although this has been partly offset by lower volumes in the Containers division.

The group said there had been no significant change to its financial position since the half-year.

Bellway boosted by increased house sales

HOUSEBUILDER Bellway has seen its house sales rise almost 6% during the six months ending January 31, 2013.

The group completed on 2,597 homes (2012: 2,455), an increase of 5.8% compared to the same period last year. The average selling price of the homes has increased by 2.3% to £187,000 (2012: £182,753).

The firm said it anticipated that the average selling price would continue its upward trend for the remainder of this financial year.

Operating margins have also improved, primarily due to the increasing proportion of completions arising from higher margin land, acquired since the downturn. As a result, the group said it expected operating margin would exceed 12.5% for the first six months of the year (2012:10.1%) and continue to improve throughout the rest of the financial year.

With bank facilities of £300m, the group said it retained its ability to take advantage of opportunities in the land market. In the six months to the end of January the firm said its spending on land was £145m (2012:£105m).

Its order book at January 31, 2013 is also up on the same period last year at 2,467 units (2012:2,359), representing revenue of £453m (2012:£423m).

The board said it expected to achieve volume growth of around 5% in the current financial year, assuming reservations over the spring selling season followed their usual upward trend.

“The group is therefore well placed to deliver further growth in profit and shareholder return through its continuing strategy of growth in volume, average selling price and operating margin,” it said.